EFTA00283449.pdf

CONSOLIDATED PORTFOLIO PERFORMANCE REPORT MORTIMER B. ZUCKERMAN AND RELATED ENTITIES December 31, 2012 PREPARED AND COMPILED BY: IRA MARK EVAN MOST STEPHEN MONROY ADDMONAL PORTIONS PREPARED BY: NEIL MAHESHWARI LYON POLK MORGAN STANLEY SMITII BARNEY FINANCIAL ADVISORS EFTA00283449 Mortimer B. Zuckerman and Related Entities Table of Contents Section Page I. Portfolio Overview • Summary of Investment Assets 1 • Detail of Investment Assets 4 • Consolidated Statement of Selected Assets 11 • Private Capital Portfolio Summary 18 II. Performance Reports • Mortimer B. Zuckerman 22 • The MBZ 19% Trust (GST Exempt) 31 • The MBZ 19% Trust (GST Non-Exempt) 36 • The MBZ 1983 Family Trust 41 • USN College Marketing, Inc. 46 • The MBZ Charitable Remainder Unitrust 50 • The USN Charitable Remainder Unitrust 55 • MBZ 1992 News Trust 58 Cash Account Activity • Mortimer B. Zuckerman 61 • The MBZ 19% Trust (GST Exempt) 72 • The MBZ 19% Trust (GST Non-Exempt) 76 • The MBZ 1983 Family Trust 80 • USN College Marketing, Inc. 83 • The MBZ Charitable Remainder Unitrust 86 • The USN Charitable Remainder Unitrust 90 MorganStanley SmithBarney EFTA00283450 Mortimer B. Zuckerman and Related Entities Table of Contents Section Page IV. Appendices • (A) Boston Properties, Inc. 92 • (B) Boston Properties, Inc. (Options) 93 • (C) Schedule of Private Capital Money Movements 95 • (D) Schedule of Transfers to Selected Investments 100 • (E) Schedule of Secured Debt 102 • (F) Schedule of Unsecured Debt 103 • (G) Schedule of Loan Guarantees 104 • (I-I) Schedule of Contingent Obligations 105 • (1) Fixed Income Summary / Distribution by Product Sector / Maturity Distribution Graph N/A V. Personal Expenses • MBZ Personal Expenses 106 VI. Balance Sheet • Mortimer B. Zuckerman 116 • The MBZ 19% Trust (GST Exempt) 121 • The MBZ 19% Trust (GST Non-Exempt) 123 • The MBZ 1983 Family Trust 125 • USN College Marketing, Inc. 127 • The MBZ Charitable Remainder Unitrust 128 • The USN Charitable Remainder Unitrust 130 • MBZ 1992 News Trust 131 MorganStanley SmithBarney EFTA00283451 Mortimer B. Zuckerman and Related Entities Table of Contents Section Page VII. Descriptions Of Investments • Descriptions Of Investments For MBZ And Related Entities 132 VIII. Disclosures • Disclosures 150 MorganStanley SmithBarney EFTA00283452 Mortimer B. Zuckerman and Related Entities Summary of Investment Assets - December 31, 2012 Asset Allocation 0/0 for Policy Assets Asset Allocation 0/0 for Investment Assets Corporso Co morale Bonds Zuckerman AIP Offshore Real Properly& Municipal secuadife 2.7% AIP Onshore Personal Holdngs Options 1.8% Hedge Funds 3.1% 3.1% Tax:alder Odd Hedge Funds Income U.S. Equities 2.3% 1.9% Personal Assets 23% U.S.Boudles 4.7% 02% 0.9% Cash 11.5% Other Assets Global Bonds 0.0% 02% Corporate Notes and Loans 6.2% Receivable AIP Onshore Hedge Taxable Fixed 4.0% Funds OA% Income Family BuSsnOSSet 10.2% 223% AIP Onshore Hed( Corporate Funds 05% Bonds 11.6% Hedge Funds -Direct 11% Private Capital Global Bonds BXP (Common) 35.7% 3.9% Municipal 62% Securities BXP (OPUS) Hedge Funds - 7.9% BXP (Vested BXP (Nonvestect 312% PrivaleCapital Direct Options inxiCnOs)- —Options and LTIPs) 82% 8.0% 15% OA% TOTAL POLICY ASSETS $591,141,477 TOTAL EXCLUDING LIABILITIES $2,584,817,772 Pkase rote: The Teal Non•Policy Asses figure does net include the Presmt Valued Future MBZ Con Distnbubens and the Present Value of Future USN Out Distnbubons Pkase rote, Obbptions To Related Parties Include: (1) BR, Inc. ?Lazy V Motor Yacht) (2) Pauline C.enler (3) USN Aviation • (2WA, Inc.) (4) ZAS, LLC• (lValdor( Right Services) (5) the MBZ News 1992 Trust UAD 12.29.92 Please rote, Unsecured Obligations To Thud Parties Include: (1) MB2 Printing (APT. LP) (2) Krall Payments (3) Daily Noes, LP. • NJEDA (4) Daily News. LP.- HUD (5) Citibank Revolving lane of MorganStanley Credit (6) Bank of America Revoking Line of Credit SmithBarney EFTA00283453 Mortimer B. Zuckerman and Related Entities Summary of Investment Assets - December 31, 2012 11/30/2012 12/3I/2012 Total Asset Policy Asset Investment Assets Value Value Allocation % Allocation % Cash 53,271,406 67,764,347 26% 11.5% Municipal Securities 51,026,515 46,412,832 1.8% 7.9% Corporate 40,645,377 36,431,095 1.4% 6.2% Corporate Bonds 63,955,670 68,813,105 27% 11.6% Taxable Fixed Income 44,295,142 60,111,610 23% 10.2% US. Equities 5,563,095 5,438,298 0.2% 0.9% Global Bonds 21,187,809 23,183,861 0.9% 3.9% AIP Onshore Hedge Funds 11,087,183 11,192,543 0.4% 1.9% AIP Offshore Hedge Funds 13,320,150 13,503,595 0.5% 2.3% Hedge Funds -Direct 46,571,814 47,192,914 1.8% 8.0% Private Capital 217,825,837 211,097,278 8.2% 35.7% Total Policy Assets $568,749,997 $591,141,477 22.9% 100.0% Boston Properties, Inc. (Closing Price: $105.81) BXP (Common) 179,683,988 159,188,786 6.2% BXP (NonVested Options and LTIPs) 9,732,762 10,345,754 0.4% BXP (OPUS) 786,880,631 816,245,854 31.6% BXP (Vested Options and LTIPs) 37,438,486 38,906,707 1.5% Family Businesses 573,548,815 580,639,230 225% Notes and Loans Receivable 104,503,126 104,503,126 4.0% Other Assets 985,885 1,028,281 0.0% Personal Assets 121,490,705 121,490,705 4.7% Zuckerman Personal Holdings 80,500,000 80,500,000 3.1% Real Property tt Options 80,827,852 80,827,852 3.1% Total Non-Policy Assets $1,975,592,250 $1,993,676,295 77.1% Obligations To Related Parties -86,150,993 -88,249,897 Mortgages -56,890,189 -56,788,944 Unsecured Obligations To Third Parties -222,431,592 -225,661,723 Total Liabilities ($365,472,774) (4370,700,564) Please rote: The Teal Non•Policy Assets figure does not include the l'resnu Value of Future MBZ Out DistnIxibeas and the Present Value of Future USN Out Distnbuborn Please note, Obbptions To Related Parties Include: (1) BR, Inc. P Lazy 2' Motor Yacht) (2) Pauline Cenler (3)05N Aviation • (ZWA, Inc.) (4) VS, LLC• (tValelorf Flight Services) (5) The MBZ News 1992 Trust UAD 1229.92 Please note, Unsecured Obligabons To Thud Parties include: (1) MBZ. Printing (APT. LP) (2) Krall Payments (I) Duly Noes, LP. • NJEDA (4) Daily New LP.- I IUD (5) Citibank Revolving Lined Credit (6) Bank et Amoco Revolving Line of Credit MorganStanley SmithBarney 2 EFTA00283454 Mortimer B. Zuckerman and Related Entities Summary of Investment Assets - December 31, 2012 11/342012 12/31/2012 Total Asset Polley Asset Investment Assets Value Value AlbeaHon % Allocation % Total Excluding Liabilities 32,544,342,248 32,584,817,772 100.0% Total Investment Assets 32,178,869,474 82,214,117,208 Pkase rote: The Taal Non•Policy Assets figure does cwt include the l'resnu Value of Future MBZ Cmt Dismbubens and the Present Value of Future USN Out Distnbuboro Pkase rote, Obbgations To Related Parties Include: (1) BR, Inc. f Lazy T Motor Yacht) (2) Pauline CenterII) USN Aviation • (2WA, Inc.) (4) ZAS, LLC• (tValdorf Right Services) (5) The MBZ News 1992 Trust UAD 12.29.92 Please note, Unsecured Obligabons To Third Parties include: (1) MBZ Printing (APT. LP) (2) Krall Payments (I) Daily Ne•Al., LP. • NJEDA (4) Daily New LP.-11(10 (5) Otibank Revolving lined Credit (6) Bank America Revolving Line of Credit MorganStanley SmithBarney 3 EFTA00283455 Mortimer B. Zuckerman and Related Entities Detail of Investment Assets - December 31, 2012 Asset Class/inveshnert Endnotes MBZ 111112199chust M021996 Trust MBZ 1983 USN College MBZ CRUM' USN CRUT MBZ 1992 Columbia Total (CST Exempt) (CST Non-Fxemp0 Family Trust Marketing, Inc. News Trust CRUTs Cash Bank of America - MMF 10,112 11,987 22,099 JPM Chase -Checking 133484 133,484 JPM Chase - Money Mkt 98,704 • 98,704 Morgan Stanley- Money Mkt 15,063,700 3,158,852 9,124,231 1.254,906 2,754,541 33,094,427 90,478 64,541,134 Operating Account 1996 TR (All') 1,482.577 • 1,482,577 Operating Account MBZ CRUT (Al?) • 1,486,349 1,486,349 Total Cash 515206,000 $4,641,429 $9,124,231 $1,254,906 52,766327 $34,580,775 5913,478 $67,764,347 Municipal Securities Citibank - Muni Bonds 12,299,472 • 12,299,472 Morgan Stanley- Intermediate Term Muni Bonds 10,795,845 4,511,490 4,657,889 776,074 3,116,722 23,858,020 Morgan Stanley- Long Term Mimi Bonds 8,151,417 568,758 - 256,808 140,731 9,117,713 Morgan Stanley- Short Term Muni Bonds 618,192 • 260,473 258,962 1,137,626 Total Municipal Securities $31,864,927 $5,080248 $4,918,361 5258,962 $1,032,882 53,257,453 $46,412,832 Corporate Citi - Corporate Bonds 16,114506 19,459 1,976,249 10,999,541 7,324340 36,431,095 Total Corporate $16,113506 $19,459 $1,976,249 $10,994541 57,322340 $36,431,095 Corporate Bonds Seix 6,475284 8,056,632 24,871,338 6273,896 3,923,331 12,915,371 6,297,250 68,813,105 Total Corporate Bonds $4475,284 $8,056,632 524,871,338 $6,273,896 53,923,334 02,915271 $6,297..50 $68,813,105 Taxable Fixed Income Doubkline Total Return - Intermediate Term 2,689,662 1,856,683 4,142,892 2,032,024 - 8,137,367 430,019 19,288446 Lord Abbett Short Duration- Short Tenn 10,012,931 11229,756 2,917,193 2,306,732 13455,734 900,618 40,822,964 Total Taxable Fixed Income $12,702,593 51.854683 $15,372,648 $4,949,217 $2,306,732 521,593,101 51,330,637 $60,111,610 US. Equities Goldman Sachs MLP 5,438,298 5,438,298 Total U.S. Equities 55,438,298 55,438,298 Global Bonds Gluskin Shelf • • - • • 9,936,870 - 9,936,870 Templeton Global Bond Fund 2,844,040 1,284580 3.496,917 1,760,876 796,243 2,617,106 41Z 230 13,246,991 Total Global Bonds $2,844,040 $1289,580 53,496,917 $1,760,876 $796243 512,583.976 4412,230 $23,183,861 1) The above values represent a summary et the attune monthly values presented In the Individual entity pages In Section II. For additional Information regarding Individual Investments please refer to Section II. 2) Pkose note: The Family Businesses figure Includes the Present Value of Future USN Out Dumbuttom. The tamed Value of Future MBZ [rut DatrIbutIons Is part e4 Other Investment Assets MorganStanley SmithBarney 4 EFTA00283456 Mortimer B. Zuckerman and Related Entities Detail of Investment Assets - December 31, 2012 Asset aaszilnvestmett Endnotes MBZ P.1821996 Tun M82 19% Trust (CST Non•Fxempt) MBZ 1983 USN College MBZ Garr USN CRUT MBZ 1992 Columbia Total (CST Exempt' Family Trust hlaskaing, Inc. News Trust CRUTs AIP Onshore Hedge Funds Boronia Diversified Fund (AIP) 390,113 390,113 Double Black Diamond Class C (All') 1,263,073 1,263,073 GEM Realty Securities LP (All') 1,202,850 1,202,850 HBK Fund ll LP (AIP) 1,352,197 1,352,197 LIM Asia MultiStrategy Fund (AIP) 1,046,115 1,046,115 Man AHL Diversified ll USA (AIP) 452,789 452,789 Mariner Tricadia Credit Stmt (MP) 1,178,042 1,178,042 klillenium USA LP (All') 1,362.436 1,362,136 MQ Asian Alpha fund (AIP) 62%734 671k734 Seligman Tech Spectrum Fund (All') 1,048,406 1,018,106 York Credit Opportunity Fund (AIP) 1,267,486 1,267,486 Total AIP Onshore Hedge Funds $11,192,543 311,192,543 AIP Offshore Hedge Funds Boronia Diversified Fund (AIP) 449,993 449,993 Double Black Diamond Class C (AIP) 1,661,087 1,661,087 HBK Offshore Fund II Ltd. (All') 613,516 613,516 LIM Asia Multi-Strategy Fund (AIP) 1,037,203 1,037,203 Mariner Taicadia Credit Stiat (AIP) 1,178,006 1,178,006 klillenium Intl Ltd - Class EE (AIP) 1,229,159 1,229,159 MQ Asian Alpha fund (AIP) 608,851 608,851 Oz Overseas Fund Ltd. (AIP) 2,177,218 2,177,218 QFR Victoria Fund (AIP) 1,681,295 1,681,295 Seligman Tech Spectrum Fund (AIP) 562,756 562,756 Taconic Opportunity Fund (AIP) • 1,055,049 1,055,019 York Credit Opp Unit Trust (AIP) • 1,249,462 1,249,462 Total AIP Offshore Hedge Funds $13,503.595 313,503,595 1) The above values represent a summary et the current monthly values presented In the Individualentity pages in Section II. For additional information rep/Wing individual investments please ram to Section II. 2) Please note: The Family Businesses figure includes the Present Value of Future USN Crut Distnbutiom. The PICSall Value of Future MBZ Crut Distributions is part et Other Investment Assets MorganStanley SmithBarney 5 EFTA00283457 Mortimer B. Zuckerman and Related Entities Detail of Investment Assets - December 31, 2012 Asset ClattgrInvestmeet Fascinates MBZ 111821996111ml (CST Exemptl M821996 Trust (CST Non•Fxemptt MBZ 1983 USN College Marketing, Inc. MBZ CRUT USN CRUT MBZ 1992 Columbia Total Family Trust News Trust CRUTs Hedge Funds -Direct AIP Custom HF Solutions - 11,786,794 11,786,794 American Steadfast, L.P. 53311,998 5,911,998 AP Investments Europe Limited 7,619 7.649 Ascot Fund Limited 0 0 Blackstone Offshore Fund II - 2,298,697 2,298,697 Castle Advisors, L.P. 14,422 106,365 120,787 CA Absolute Return Muni Strategy, L.P. - 5,260,317 5,750,747 11,011,064 CS Hedge Fund Seeding Strategy 3,021,970 - 3,021,970 CS Investment Partners (Offshore) - 956,066 956,066 CS Investment Partners (Onshore) 1,220,198 - - 1,220,198 Paulson Advantage Plus, L.P. - 8,120,352 2,618,746 10,739,098 Taconic Opportunity Fund 88,593 - 88,593 Total Hedge Funds -Direct $5,956,420 $4,242,168 $13,583,276 $2,618,746 55,750,747 $15,041,537 $17,192,914 Private Capital - Fund of Funds Chase Capital Partners Private Equity FF II, LTD 320,073 • 320,073 CS Private Equity Partners II. LP. 718591 318,631 585,976 1,623,201 CS Vintage Fund, I..P. - 1,115,012 1,115,012 QueUes Financial Ventures II, (CRT), L.P. 420,683 420,683 Quellos Financial Ventures II, L.P. 788,175 788,175 Quellos Private Capital 2002, L.P. 1,00,098 1,615,096 2,090,196 Quellos Private Capital 2002, L.P. (US Mature) 5,817,371 5,817,371 Quellos Private Capital II. L.P. 8,640,160 2,1603111 2,160,041 12,960,242 Total Private Capital- Fund of Funds $16,284,370 $3,523,773 $2,746,017 12,160,110 $424683 $25,131,953 1) The above values represent a summary el the current monthly values presented in the indwiclual entity page. inSamoan. For additiorul information regarding individual investments please mkt to Section II. 2) Muse nowt Tln family Businesses figure includes the Present Value of Future USN Out Disinbunorn. The Present Value of Future MBZ. Crut Datributions is pan of Other Investment Awes MorganStanley SmithBarney 6 EFTA00283458 Mortimer B. Zuckerman and Related Entities Detail of Investment Assets - December 31, 2012 Asset C1ass/Investmeet Endnotes MBZ 11182 1996 Trial MBZ 19% Trust MBZ 1983 USN College MBZ Garr USN CRUT MBZ 1992 Columbia Total (CST Exemptl (CST Non-Ex...mpg Family Trust Marketing, Inc. News Trust CRUTs Private Capital - Direct Partnerships Brickman 1280 Fifth Investments II, LP. 839.201 839,201 Brickman Real Estate Fund II, LP. 1,824,861 1,824,861 Brickman Real Estate Fund III, LP. 594,971 594,971 Brickman Real Estate Fund IV, L.P. • 1,541,030 1,541,030 Court Square Capital Partners LP. (CVC Eq.Partners 162,678 162.678 LP.) CVC Capital Partners Asia Pacific II, LP. 1,468,894 - 1,468,894 CVC European Equity Partners IV, LP. 2.117,603 2,117,603 4,235,206 CVC European Equity Partners V, LP. 3,880,392 3,880,395 7,760,787 DST Global III, L.P. - 2.902,678 2,902,678 Evercore Venture Partners, LP. 4,546