Businessweek

curities lending and other prime brokerage services. Financing Services: The company provides financing to its clients for their securities trading activities through margin loans that are collateralized by securities, cash or other acceptable collateral. Securities Lending Services: The company provides services that principally involve borrowing and lending securities to cover institutional clients’ short sales and borrowing securities to cover its short sales and otherwise to make deliveries into the market. In addition, the company operates as a participant in broker-to-broker securities lending and third-party agency lending activities. Other Prime Brokerage Services: The company provides clearing, settlement and custody services globally. In addition, the company provides its hedge fund and other clients with a technology platform and reporting which enables them to monitor their security portfolios and manage risk exposures. INVESTING & LENDING This segment’s activities are longer-term and include the firm’s investing and relationship lending activities across various asset classes, primarily debt securities and loans, public and private equity securities, and real estate. These activities include investing directly in publicly and privately traded securities and in loans, and also through certain investment funds that the company manages. The company manages a global portfolio of investments in equity securities and debt and other investments in privately negotiated transactions, leveraged buyouts, acquisitions and investments in funds managed by external parties. The company also provides financing to its clients. Industrial and Commercial Bank of China Limited (ICBC): The company has an investment in the ordinary shares of ICBC, a bank in China. Equity Securities (excluding ICBC): The company makes corporate, real estate and infrastructure equity-related investments. Debt Securities and Loans: The company makes corporate, real estate and infrastructure debt investments. In addition, the company provides credit to corporate clients through loan facilities and to high-net-worth individuals primarily through secured loans. Other: The company’s other investments primarily include its consolidated investment entities, which are entities it holds for investment purposes strictly for capital appreciation. The company also invests directly in distressed assets, currencies, commodities and other assets, including power generation facilities. INVESTMENT MANAGEMENT This segment provides investment and wealth advisory services to help clients preserve and grow their financial assets. The company’s clients include institutions and high-net-worth individuals, as well as retail investors who access its products through a network of third-party distributors around the world. The company manages client assets across a range of asset classes and investment strategies, including equity, fixed income and alternative investments. Alternative investments primarily include hedge funds, credit funds, private equity, real estate, currencies, commodities, and asset allocation strategies. The company’s investment offerings include those managed on a fiduciary basis by its portfolio managers, as well as strategies managed by third-party managers. The company offers its investments in a variety of structures, including separately managed accounts, mutual funds, private partnerships, and other commingled vehicles. The company also provides customized investment advisory solutions designed to address its clients’ investment needs. These solutions begin with identifying clients’ objectives and continue through portfolio construction, ongoing asset allocation and risk management and investment realization. The company draws from various third-party managers, as well as its proprietary offerings to implement solutions for clients. The company supplements its investment advisory solutions for high-net-worth clients with wealth advisory services that include income and liability management, trust and estate planning, philanthropic giving and tax planning. The company also uses the firm’s global securities