Exhibit 13.01

RICI^® Linked—Total Index Series

RICI^® Linked—Agricultural Sector Series

RICI^® Linked—Energy Sector Series

each a series of

RICI^® Linked—PAM Advisors Fund, LLC

Financial Report

December 31, 2011, 2010 and 2009

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			Page
Financial Statements
Report of Independent Registered Public Accounting Firm
Statements of Financial Condition as of December 31, 2011 and December 31, 2010			2
Condensed Schedule of Investments as of December 31, 2011			3
Condensed Schedule of Investments as of December 31, 2010			4
Statements of Operations for the Years Ended December 31, 2011, 2010 and 2009			5
Statements of Changes in Members’ Equity (Net Assets) for the Years Ended December  31, 2011, 2010 and 2009			6
Notes to Financial Statements			7

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Report of Independent Registered Public Accounting Firm

To the Members

RICI^® Linked—PAM Advisors Fund, LLC

We have audited the accompanying statements of financial condition, including the condensed schedules of investments, of RICI^® Linked – PAM Total Index Series (the Total Index Series), RICI^® Linked – PAM Agricultural Sector Series (the Agricultural Sector Series) and RICI^® Linked – PAM Energy Sector Series (the Energy Sector Series), each a series of RICI^® Linked – PAM Advisors Fund, LLC (the Company), and the Company, as of December 31, 2011 and 2010, and the related statements of operations and changes in members’ equity (net assets) for each of the three years in the period ended December 31, 2011. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company, the Total Index Series, the Agricultural Sector Series and the Energy Sector Series are not required to have, nor were we engaged to perform an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company, the Total Index Series, the Agricultural Sector Series and the Energy Sector Series’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of RICI^® Linked – PAM Total Index Series, RICI^® Linked – PAM Agricultural Sector Series, RICI^® Linked – PAM Energy Sector Series, and RICI^® Linked – PAM Advisors Fund, LLC, as of December 31, 2011 and 2010, and the results of their operations for each of the three years in the period ended December 31, 2011 in conformity with U.S. generally accepted accounting principles.

/s/ McGladrey & Pullen, LLP

Chicago, Illinois

March 30, 2012

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RICI^® Linked—PAM Advisors Fund, LLC

Statements of Financial Condition

December 31, 2011 and December 31, 2010

 

		Total Index Series								Agricultural Sector Series								Energy Sector Series								Total RICI ® Linked - PAM Advisors Fund, LLC
		December 31, 2011				December 31, 2010				December 31, 2011				December 31, 2010				December 31, 2011				December 31, 2010				December 31, 2011				December 31, 2010
Assets
Equity in broker trading account
Cash		$	39,022,097			$	14,326,003			$	1,716,218			$	1,061,906			$	—			$	—			$	40,738,315			$	15,387,909
Net unrealized gain (loss) on open futures contracts			(7,034,079	)			20,897,933				(218,253	)			1,791,496				—				—				(7,252,332	)			22,689,429
			31,988,018				35,223,936				1,497,965				2,853,402				—				—				33,485,983				38,077,338
Cash and cash equivalents			3,892,851				26,361,701				189,915				886,273				—				14,555				4,082,766				27,262,529
Investments
Government-sponsored enterprise securities, at fair value			245,980,900				282,847,260				9,498,975				13,489,960				—				—				255,479,875				296,337,220
Mutual funds, at fair value			5,920,265				329,030				846,264				575,299				—				—				6,766,529				904,329
Receivable from MF Global			11,047,988				—				972,273				—				—				—				12,020,261				—
Interest receivable			—				1,480				—				111				—				—				—				1,591
Total assets		$	298,830,022			$	344,763,407			$	13,005,392			$	17,805,045			$	—			$	14,555			$	311,835,414			$	362,583,007
Liabilities and Members’ Equity (Net Assets)
Accrued operating expenses		$	170,048			$	182,020			$	38,507			$	37,549			$	—			$	14,555			$	208,555			$	234,124
Management fee payable to Managing Member			161,056				178,285				7,002				9,565				—				—				168,058				187,850
Support services fee payable			24,764				27,414				1,077				1,471				—				—				25,841				28,885
Servicing fee payable to selling agent			28,790				32,142				6,142				7,099				—				—				34,932				39,241
Withdrawals payable			4,148,997				3,346,945				1,364,418				130,892				—				—				5,513,415				3,477,837
Subscriptions received in advance			1,270,000				15,378,230				—				60,000				—				—				1,270,000				15,438,230
			5,803,655				19,145,036				1,417,146				246,576				—				14,555				7,220,801				19,406,167
Members’ equity (net assets)			293,026,367				325,618,371				11,588,246				17,558,469				—				—				304,614,613				343,176,840
Total liabilities and members' equity (net assets)		$	298,830,022			$	344,763,407			$	13,005,392			$	17,805,045			$	—			$	14,555			$	311,835,414			$	362,583,007

The accompanying notes are an integral part of these financial statements.

 

2

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RICI^® Linked—PAM Advisors Fund, LLC

Condensed Schedule of Investments

December 31, 2011

 

		Total Index Series								Agricultural Sector Series								Total RICI ® Linked - PAM  Advisors Fund, LLC
		Net Unrealized								Net Unrealized								Net Unrealized
		Gain (Loss)				Percent of				Gain (Loss)				Percent of				Gain (Loss)				Percent of
		on Open				Members’				on Open				Members’				on Open				Members’
		Long Futures				Equity				Long Futures				Equity				Long Futures				Equity
		Contracts				(Net Assets)				Contracts				(Net Assets)				Contracts				(Net Assets)
Futures contracts *
United States
Agriculture		$	(1,896,563	)			(0.65	)%		$	(251,777	)			(2.17	)%		$	(2,148,340	)			(0.71	)%
Energy			(1,192,742	)			(0.41	)			—				—				(1,192,742	)			(0.39	)
Metals			(1,778,430	)			(0.61	)			—				—				(1,778,430	)			(0.58	)
Total futures contracts—United States			(4,867,735	)			(1.67	)			(251,777	)			(2.17	)		$	(5,119,512	)			(1.68	)
Foreign
Agriculture			295,602				0.10				33,524				0.29				329,126				0.11
Energy			(271,260	)			(0.09	)			—				—				(271,260	)			(0.09	)
Metals			(2,190,686	)			(0.75	)			—				—				(2,190,686	)			(0.72	)
Total futures contracts—Foreign			(2,166,344	)			(0.74	)			33,524				0.29				(2,132,820	)			(0.70	)
Total net unrealized gain/(loss) on open futures contracts		$	(7,034,079	)			(2.41	)%		$	(218,253	)			(1.88	)%		$	(7,252,332	)			(2.38	)%

 

Government-Sponsored enterprise securities										Percent of												Percent of												Percent of
										Members’												Members’												Members’
										Equity												Equity												Equity
United States		Cost				Fair Value				(Net Assets)				Cost				Fair Value				(Net Assets)				Cost				Fair Value				(Net Assets)
U.S.Treasury Bills
$ 84,000,000 Treasury bill due 01/26/2012		$	83,960,521			$	83,999,160				28.67	%		$	—			$	—				—	%		$	83,960,521			$	83,999,160				27.58	%
$ 6,000,000 Treasury bill due 01/26/2012			—				—				—				5,997,205				5,999,940				51.78				5,997,205				5,999,940				1.97
$ 35,000,000 Treasury bill due 04/05/2012			34,996,368				34,998,250				11.94				—				—				—				34,996,368				34,998,250				11.49
$ 40,000,000 Treasury bill due 04/19/2012			39,989,389				39,997,600				13.65				—				—				—				39,989,389				39,997,600				13.13
$ 10,000,000 Treasury bill due 04/26/2012			9,997,735				9,999,300				3.41				—				—				—				9,997,735				9,999,300				3.28
$ 57,000,000 Treasury bill due 05/17/2012			56,991,341				56,992,590				19.45				—				—				—				56,991,341				56,992,590				18.71
$ 500,000 Treasury bill due 05/17/2012			—				—				—				499,929				499,935				4.31				499,929				499,935				0.16
$ 20,000,000 Treasury bill due 06/28/2012			19,995,456				19,994,000				6.82				—				—				—				19,995,456				19,994,000				6.56
$ 3,000,000 Treasury bill due 06/28/2012			—				—				—				2,999,323				2,999,100				25.88				2,999,323				2,999,100				0.98
Total Government-sponsored enterprise securities		$	245,930,810			$	245,980,900				83.94	%		$	9,496,457			$	9,498,975				81.97	%		$	255,427,267			$	255,479,875				83.86	%
Mutual funds
United States
AIM Government & Agency
Portfolio Institutional (5,920,265 shares)		$	5,920,265			$	5,920,265				2.02	%		$	—			$	—				—	%		$	5,920,265			$	5,920,265				1.94	%
AIM Government & Agency
Portfolio Institutional (846,264 shares)			—				—				—				846,264				846,264				7.30				846,264				846,264				0.28
Total mutual funds		$	5,920,265			$	5,920,265				2.02	%		$	846,264			$	846,264				7.30	%		$	6,766,529			$	6,766,529				2.22	%

 

*	No individual futures contract position constituted greater than 1% of members’ equity (net assets).

Accordingly, the number of contracts and expiration dates are not presented.

The accompanying notes are an integral part of these financial statements.

 

3

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RICI^® Linked—PAM Advisors Fund, LLC

Condensed Schedule of Investments

December 31, 2010

 

		Total Index Series								Agricultural Sector Series								Total RICI ® Linked - PAM Advisors Fund, LLC
		Net Unrealized								Net Unrealized								Net Unrealized
		Gain (Loss)				Percent of				Gain (Loss)				Percent of				Gain (Loss)				Percent of
		on Open				Members’				on Open				Members’				on Open				Members’
		Long Futures				Equity				Long Futures				Equity				Long Futures				Equity
		Contracts				(Net Assets)				Contracts				(Net Assets)				Contracts				(Net Assets)
Futures contracts *
United States
Agriculture		$	11,473,080				3.52	%		$	1,712,614				9.75	%		$	13,185,694				3.84	%
Energy			2,003,177				0.62				—				—				2,003,177				0.58
Metals			2,411,320				0.74				—				—				2,411,320				0.70
Total futures contracts—United States			15,887,577				4.88				1,712,614				9.76				17,600,191				5.12
Foreign
Agriculture			537,685				0.17				78,882				0.45				616,567				0.18
Energy			1,262,395				0.39				—				—				1,262,395				0.37
Metals			3,210,276				0.99				—				—				3,210,276				0.94
Total futures contracts—Foreign			5,010,356				1.55				78,882				0.44				5,089,238				1.49
Total futures contracts		$	20,897,933				6.43	%		$	1,791,496				10.20	%		$	22,689,429				6.61	%

 

Government-Sponsored enterprise securities										Percent of												Percent of												Percent of
										Members’												Members’												Members’
										Equity												Equity												Equity
United States		Cost				Fair Value				(Net Assets)				Cost				Fair Value				(Net Assets)				Cost				Fair Value				(Net Assets)
Federal Home Loan Bank
$ 10,000,000 discount note, due 01/20/2011		$	9,996,533			$	9,999,800				3.07	%		$	—			$	—				—	%		$	9,996,533			$	9,999,800				2.91	%
$ 10,000,000 discount note, due 02/23/2011			9,993,121				9,998,900				3.07				—				—				—				9,993,121				9,998,900				2.91
$ 3,000,000 discount note, due 02/23/2011			2,998,095				2,999,670				0.92				—				—				—				2,998,095				2,999,670				0.87
$ 20,000,000 discount note, due 03/23/2011			19,979,000				19,995,600				6.14				—				—				—				19,979,000				19,995,600				5.83
$ 20,000,000 discount note, due 03/25/2011			19,978,000				19,995,400				6.14				—				—				—				19,978,000				19,995,400				5.83
$ 20,000,000 discount note, due 04/06/2011			19,977,250				19,994,400				6.14				—				—				—				19,977,250				19,994,400				5.83
$ 5,000,000 discount note, due 04/07/2011			4,994,283				4,998,550				1.54				—				—				—				4,994,283				4,998,550				1.46
$ 1,000,000 discount note, due 04/07/2011			—				—				—				998,857				999,710				5.69				998,857				999,710				0.29
$ 10,000,000 discount note, due 05/18/2011			9,992,650				9,995,100				3.07				—				—				—				9,992,650				9,995,100				2.91
$ 33,000,000 discount note, due 06/22/2011			32,959,062				32,974,920				10.13				—				—				—				32,959,062				32,974,920				9.61
$ 6,000,000 discount note, due 06/22/2011			—				—				—				5,992,593				5,995,440				34.15				5,992,593				5,995,440				1.75
$ 34,000,000 discount note, due 06/28/2011			33,962,978				33,973,480				10.43				—				—				—				33,962,978				33,973,480				9.90
$ 34,000,000 discount note, due 07/26/2011			33,951,342				33,965,320				10.43				—				—				—				33,951,342				33,965,320				9.90
$ 20,000,000 discount note, due 07/26/2011			19,971,633				19,979,600				6.14				—				—				—				19,971,633				19,979,600				5.82
$ 5,000,000 discount note, due 07/26/2011			—				—				—				4,993,778				4,994,900				28.45				4,993,778				4,994,900				1.46
Federal National Mortgage Association																											0
$ 10,000,000 discount note, due 02/01/2011			9,995,417				9,999,400				3.07				—				—				—				9,995,417				9,999,400				2.91
$ 1,500,000 discount note, due 02/01/2011			—				—				—				1,499,306				1,499,910				8.54				1,499,306				1,499,910				0.44
U.S.Treasury Bills																											0
$ 20,000,000 Treasury bill due 03/24/2011			19,983,408				19,994,800				6.14				—				—				—				19,983,408				19,994,800				5.83
$ 34,000,000 Treasury bill due 05/12/2011			33,971,908				33,982,320				10.44				—				—				—				33,971,908				33,982,320				9.90
Total Government-sponsored enterprise securities		$	282,704,680			$	282,847,260				86.87	%		$	13,484,534			$	13,489,960				76.83	%		$	296,189,214			$	296,337,220				86.36	%
Mutual funds
United States
AIM Government & Agency
Portfolio Institutional (329,030 shares)		$	329,030			$	329,030				0.10	%		$	—			$	—				—	%		$	329,030			$	329,030				0.10	%
AIM Government & Agency
Portfolio Institutional (575,299 shares)			—				—				—				575,299				575,299				3.28				575,299				575,299				0.17
Total mutual funds		$	329,030			$	329,030				0.10	%		$	575,299			$	575,299				3.28	%		$	904,329			$	904,329				0.27	%

 

*	No individual futures contract position constituted greater than 1% of members’ equity (net assets).

Accordingly, the number of contracts and expiration dates are not presented.

The accompanying notes are an integral part of these financial statements.

 

4

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RICI^® Linked—PAM Advisors Fund, LLC

Statements of Operations

Years Ended December 31, 2011, 2010 and 2009

 

		Total Index Series												Agricultural Sector Series												Energy Sector Series												Total RICI ® Linked - PAM Advisors Fund, LLC
		2011				2010				2009				2011				2010				2009				2011				2010				2009				2011				2010				2009
Realized and unrealized gains (losses) on investments
Realized gains (losses) on futures contracts		$	6,048,457			$	39,937,080			$	25,981,116			$	(789,315	)		$	3,251,109			$	676,121			$	—			$	(206,448	)		$	—			$	5,259,142			$	42,981,741			$	26,657,237
Realized gains on securities			437,116				267,492				—				20,120				20,788				—				—				1,620				—				457,236				289,900				—
Change in unrealized gains (losses) on open futures contracts			(27,932,012	)			16,195,091				6,260,663				(2,009,749	)			1,514,854				64,753				—				—				—				(29,941,761	)			17,709,945				6,325,416
Change in unrealized gains (losses) on securities			(92,490	)			142,579				—				(2,908	)			5,426				(37,329	)			—				—				—				(95,398	)			148,005				(37,329	)
Brokerage commissions			(577,517	)			(486,898	)			(313,291	)			(34,806	)			(43,746	)			(36,711	)			—				(3,433	)			—				(612,323	)			(534,077	)			(350,002	)
Net realized and unrealized gain (loss) on investments			(22,116,446	)			56,055,344				31,928,488				(2,816,658	)			4,748,431				666,834				—				(208,261	)			—				(24,933,104	)			60,595,514				32,595,322
Investment income (loss)
Interest income			34,465				102,472				414,294				1,752				4,957				65,416				—				883				—				36,217				108,312				479,710
Other income			—				—				1,235				—				—				—				—				—				—				—				—				1,235
MF Global loss			(7,330,679	)			—				—				(486,844	)			—				—				—				—				—				(7,817,523	)			—				—
			(7,296,214	)			102,472				415,529				(485,092	)			4,957				65,416				—				883				—				(7,781,306	)			108,312				480,945
Expenses
Management fees			2,194,951				1,568,683				829,571				106,704				107,078				74,543				—				10,726				—				2,301,655				1,686,487				904,114
Operating expenses			466,268				426,979				471,978				51,451				49,590				43,774				—				15,287				—				517,719				491,856				515,752
Support services fee			337,502				160,240				—				16,407				9,302				—				—				426				—				353,909				169,968				—
Servicing fees			135,874				119,620				90,910				29,966				21,679				18,598				—				71				—				165,840				141,370				109,508
			3,134,595				2,275,522				1,392,459				204,528				187,649				136,915				—				26,510				—				3,339,123				2,489,681				1,529,374.00
Net investment loss			(10,430,809	)			(2,173,050	)			(976,930	)			(689,620	)			(182,692	)			(71,499	)			—				(25,627	)			—				(11,120,429	)			(2,381,369	)			(1,048,429.00	)
Net income (loss)		$	(32,547,255	)		$	53,882,294			$	30,951,558			$	(3,506,278	)		$	4,565,739			$	595,335			$	—			$	(233,888	)		$	—			$	(36,053,533	)		$	58,214,145			$	31,546,893

The accompanying notes are an integral part of these financial statements.

 

5

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RICI^® Linked—PAM Advisors Fund, LLC

Statement of Changes in Members’ Equity (Net Assets)

Years Ended December 31, 2011, 2010 and 2009

 

		Total Index Series												Agricultural Sector Series												Energy Sector Series												Total RICI ® Linked - PAM Advisors Fund, LLC
		Managing Member				Non-Managing Members				Total				Managing Member				Non-Managing Members				Total				Managing Member				Non-Managing Members				Total				Managing Member				Non-Managing Members				Total
Members’ equity (net assets) December 31, 2008		$	17,430			$	86,004,045			$	86,021,475			$	20,416			$	11,434,764			$	11,455,180			$	—			$	—			$	—			$	37,846			$	97,438,809			$	97,476,655
Subscriptions, net			10,000				80,991,589				81,001,589				10,000				6,156,043				6,166,043				—				—				—				20,000				87,147,632				87,167,632
Withdrawals			—				(29,919,638	)			(29,919,638	)			—				(8,112,508	)			(8,112,508	)			—				—				—				—				(38,032,146	)			(38,032,146	)
Net income			7,049				30,944,509				30,951,558				1,767				593,568				595,335				—				—				—				8,816				31,538,077				31,546,893
Members’ equity (net assets) December 31, 2009		$	34,479			$	168,020,505			$	168,054,984			$	32,183			$	10,071,867			$	10,104,050			$	—			$	—			$	—			$	66,662			$	178,092,372			$	178,159,034
Subscriptions, net			—				129,833,428				129,833,428				—				12,089,466				12,089,466				—				3,083,446				3,083,446				—				145,006,340				145,006,340
Withdrawals			—				(26,152,335	)			(26,152,335	)			—				(9,200,786	)			(9,200,786	)			—				(2,849,558	)			(2,849,558	)			—				(38,202,679	)			(38,202,679	)
Net income (loss)			6,401				53,875,893				53,882,294				11,568				4,554,171				4,565,739				—				(233,888	)			(233,888	)			17,969				58,196,176				58,214,145
Members’ equity (net assets) December 31, 2010		$	40,880			$	325,577,491			$	325,618,371			$	43,751			$	17,514,718			$	17,558,469			$	—			$	—			$	—			$	84,631			$	343,092,209			$	343,176,840
Subscriptions, net			—				62,986,349				62,986,349				—				3,160,037				3,160,037				—				—				—				—				66,146,386				66,146,386
Withdrawals			—				(63,031,098	)			(63,031,098	)			—				(5,623,982	)			(5,623,982	)			—				—				—				—				(68,655,080	)			(68,655,080	)
Net loss			(3,878	)			(32,543,377	)			(32,547,255	)			(8,240	)			(3,498,038	)			(3,506,278	)			—				—				—				(12,118	)			(36,041,415	)			(36,053,533	)
Members’ equity (net assets) December 31, 2011		$	37,002			$	292,989,365			$	293,026,367			$	35,511			$	11,552,735			$	11,588,246			$	—			$	—			$	—			$	72,513			$	304,542,100			$	304,614,613

The accompanying notes are an integral part of these financial statements.

 

6

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RICI ® Linked – PAM Advisors Fund, LLC

 

Notes to Financial Statements

Note 1. Nature of Operations and Significant Accounting Policies

RICI^® Linked – PAM Advisors Fund, LLC (the Company) is a limited liability company organized under the Delaware Limited Liability Company Act. The Company engages in the speculative trading of commodity futures, options on futures, forward contracts and other derivatives on exchanges and markets located in the United States and abroad. These financial statements incorporate the financial condition, results of operations and changes in members' equity (net assets) of the Company as a whole as well as each Series of membership interest in the Company.

Series of membership interests: The Company is currently offering four series (each, a Series) of limited liability company interests (Interests): the RICI^® Linked – PAM Total Index Series (Total Index Series), the RICI^® Linked – PAM Agricultural Sector Series (Agricultural Sector Series), the RICI^® Linked – PAM Energy Sector Series (Energy Sector Series), and the RICI^® Linked – PAM Metals Sector Series (Metals Sector Series). Each Series invests substantially all of its assets in derivative contracts representing the commodity positions contained in the Rogers International Commodity Index^® (Index), or a sub-index thereof. Each Series is designed to be a portfolio diversification option - not a complete investment program—for sophisticated investors seeking exposure to commodities. Currently, three Series have commenced trading, the RICI^® Linked – PAM Total Index Series which began trading May 8, 2007, the RICI^® Linked – PAM Agricultural Sector Series which began trading February 1, 2008 and the RICI^® Linked – PAM Energy Sector Series which began trading January 1, 2010. At the end of July 2010, the Series ceased trading and all the investors in the RICI^® Linked – PAM Energy Sector Series redeemed out of that Series.

The Company has been granted a license to use the Index pursuant to a sub-licensing arrangement. If the sub-license arrangement were to terminate and the Company lost use of the Index, the Company will have to terminate the offering of its Interests in the Company.

The Company operated under exemption pursuant to Regulation 4.7 under the Commodity Exchange Act (CEAct). Effective August 1, 2009 the Company no longer claims exemption and operates pursuant to Regulation 4.22 under the CEAct.

The Company is organized as a “series” limited liability company such that, pursuant to Section 18-215(b) of the Delaware Limited Liability Company Act, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular Series shall be enforceable only against the assets of such Series and not against the assets of the Company generally or any other Series. Accordingly, the assets of one Series of the Company include only those funds and other assets that are paid to, held by or distributed to the Company on account of and for the benefit of that Series, including, without limitation, funds delivered to the Company for investment in that Series.

RICI^® Linked – PAM Total Index Series: trading is comprised of three commodity product sectors encompassing 38 markets worldwide.

RICI^® Linked – PAM Agricultural Sector Series: trading is comprised of one commodity product sector encompassing 22 agricultural markets worldwide.

RICI^® Linked – PAM Energy Sector Series: trading is comprised of one commodity product sector encompassing 6 energy markets worldwide.

RICI^® Linked – PAM Metals Sector Series: trading is comprised of one commodity product sector encompassing 10 metals markets worldwide.

Accounting policies: The Company follows generally accepted accounting principles (GAAP), as established by the Financial Accounting Standards Board (FASB), to ensure consistent reporting of financial condition and results of operations.

Use of estimates: The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s estimate regarding the carrying value of its receivable from MF Global, Inc. (Note 5) is a significant estimate and due to the uncertainty of future events, this estimate could change materially in the near term.

 

7

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RICI ® Linked – PAM Advisors Fund, LLC

 

Note 1. Nature of Operations and Significant Accounting Policies (Continued)

 

Cash and cash equivalents: Cash and cash equivalents include highly liquid instruments with original maturities of three months or less at the date of acquisition.

Net asset value: “Net Asset Value” or “Net Assets” associated with each Series is the sum of all cash plus investments, at fair value, plus the liquidating value of all open commodity positions maintained by the Series plus interest receivable and other assets, less all liabilities of the Series determined in accordance with GAAP.

Securities and derivative financial instruments: Investments in securities and derivative financial instruments and related expenses are recorded on trade date and at fair value. Gains and losses are realized when contracts are liquidated. Unrealized gains or losses on open contracts (the difference between contract purchase price and market price) at the date of the statements of financial condition are included in equity in broker trading accounts as a net unrealized gain or loss, as there exists a right to offset. Any change in net unrealized gain or loss from the preceding period is reported in the statements of operations. Brokerage commissions include clearing and exchange fees and are separately reported in the statements of operations.

Translation of foreign currencies: The Company's functional currency is the U.S. dollar; however, it transacts business in foreign currencies. Investments denominated in foreign currencies are translated into U.S. dollars at the rates in effect at the date of the statements of financial condition. Income and expense items denominated in foreign currencies are translated into U.S. dollars at the rates in effect during the period. Gains and losses resulting from the translation to U.S. dollars are reported as part of realized gains and losses in the statements of operations.

Subscriptions: Non-managing member subscriptions are presented in the statement of changes in members’ equity (net assets), net of sales fees, if any.

Withdrawals payable: Withdrawals prior to month end with a fixed effective date and fixed amount are recorded as withdrawals payable as of month end.

Ongoing offering expenses: Ongoing offering expenses are charged to expense as incurred.

Income taxes: No provision for income taxes has been made in these financial statements because members are individually responsible for reporting income or loss based on their respective shares in the Company’s income and expenses as reported for income tax purposes.

The FASB provides guidance for how uncertain tax positions should be recognized, measured, disclosed and presented in the financial statements. The guidance requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained “when challenged” or “when examined” by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year. Through December 31, 2011, management has determined that there are no material uncertain income tax positions.

The Company is not subject to examination by U.S. Federal and state tax authorities for years before 2008.

Reclassification: Certain balances for the year ended December 31, 2010 have been reclassified to conform to the 2011 presentation with no effect on the results of operations.

Statement of cash flows: The Company has elected not to provide statements of cash flows as permitted by GAAP as all of the following conditions have been met:

During the year, substantially all of the Company’s investments were highly liquid;

Substantially all of the Company’s investments are carried at fair value;

The Company had little or no debt during the year; and

The Company’s financial statements include a statement of changes in members’ equity (net assets).

 

8

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RICI ® Linked – PAM Advisors Fund, LLC

 

Note 1. Nature of Operations and Significant Accounting Policies (Continued)

 

Recently issued accounting pronouncements: In November 2011, the FASB issued new guidance that requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. This guidance is effective for annual and interim periods beginning on or after January 1, 2013. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The effective date is January 1, 2013. The adoption of this guidance is not expected to have a material impact on the Company’s financial position or results of operations.

Note 2. Fair Value of Financial Instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs. Assets and liabilities recorded at fair value are categorized within the fair value hierarchy based upon the level of judgment associated with the inputs used to measure their value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. The three levels of the fair value hierarchy are described below:

Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2. Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair value is determined through the use of models or other valuation methodologies.

Level 3. Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The following section describes the valuation techniques used by the Company to measure different financial instruments at fair value and includes the level within the fair value hierarchy in which the financial instrument is categorized.

The fair values of exchange traded futures contracts are based upon exchange settlement prices. Shares of mutual funds, which include money market funds, are valued at the net asset value based on quoted market prices. Government-sponsored enterprise securities are stated at cost plus accrued interest, which approximates fair value based on quoted market prices for identical assets in an active market. These financial instruments are classified as Level 1 of the fair value hierarchy.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy as of:

 

		Total Index Series								Agricultural Sector Series								Total RICI ® Linked - PAM Advisors Fund, LLC
Description		December 31, 2011 Level 1				December 31, 2010 Level 1				December 31, 2011 Level 1				December 31, 2010 Level 1				December 31, 2011 Level 1				December 31, 2010 Level 1
Equity in broker trading account
Futures contracts		$	(7,034,079	)		$	20,897,933			$	(218,253	)		$	1,791,496			$	(7,252,332	)		$	22,689,429
Cash and cash equivalents
Money market funds			191,286				173,142				—				—				191,286				173,142
Investments
Government-sponsored enterprise securities			245,980,900				282,847,260				9,498,975				13,489,960				255,479,875				296,337,220
Mutual funds			5,920,265				329,030				846,264				575,299				6,766,529				904,329
		$	245,058,372			$	304,247,365			$	10,126,986			$	15,856,755			$	255,185,358			$	320,104,120

 

9

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RICI ® Linked – PAM Advisors Fund, LLC

 

Note 2. Fair Value of Financial Instruments (Continued)

 

At December 31, 2011 and 2010 and for the years then ended, the Company had no Level 2 or Level 3 assets or liabilities. The Company assesses the levels or assets and liabilities measured at fair value at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstance that caused the transfer. There was no transfer among Levels 1, 2 and 3 during the years ended December 31, 2011 and 2010.

In addition, substantially all of the Company's other assets and liabilities are considered financial instruments and are reflected at fair value, or at carrying amounts that approximate fair value because of the short maturity of the instruments.

Note 3. Derivative Instruments

Expanded disclosure is presented, in accordance with recent FASB guidance, to provide the users of the financial statements with an enhanced understanding of the use of derivative instruments, and how derivative and hedging activities affect financial position and operations.

The Company’s derivative contracts are comprised of futures contracts. These derivative contracts are recorded on the statements of financial condition as assets measured at fair value and the related realized and unrealized gain (loss) associated with these derivatives is recorded in the statements of operations. The Company has considered the counterparty credit risk related to all its futures contracts and does not deem any counterparty credit risk material at this time. The Company does not consider any derivative instruments to be hedging instruments, as this term is generally understood under FASB guidance.

As of December 31, 2011 and 2010 the Total Index Series’ derivative contracts had the following impact on the statement of financial condition:

Total Index Series

 

		Contract Risk		Location		Asset Derivatives December 31, 2011				Liability Derivatives December 31, 2011				Net
Futures:		Commodity price		Equity in broker trading account
Agriculture						$	1,758,810			$	(3,359,771	)		$	(1,600,961	)
Energy							102,759				(1,566,761	)			(1,464,002	)
Metals							2,412,135				(6,381,251	)			(3,969,116	)
						$	4,273,704			$	(11,307,783	)		$	(7,034,079	)
		Contract Risk		Location		Asset Derivatives December 31, 2010				Liability Derivatives December 31, 2010				Net
Futures:		Commodity price		Equity in broker trading account
Agriculture						$	12,043,365			$	(32,599	)		$	12,010,766
Energy							3,311,524				(45,953	)			3,265,571
Metals							10,616,348				(4,994,752	)			5,621,596
						$	25,971,237			$	(5,073,304	)		$	20,897,933

 

10

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RICI ® Linked – PAM Advisors Fund, LLC

 

Note 3. Derivative Instruments (Continued)

 

For the years ended December 31, 2011, 2010 and 2009 the Total Index Series’ derivative contracts had the following impact on the statements of operations:

 

				Year ended December 31, 2011
		Contract Risk		Realized gains (losses) on futures contracts				Change in unrealized gains (losses) on open futures contracts				Net trading gains (losses)
Futures:		Commodity price
Agriculture				$	(4,357,794	)		$	(13,715,042	)		$	(18,072,836	)
Energy					11,987,561				(4,731,294	)			7,256,267
Metals					(1,581,310	)			(9,485,676	)			(11,066,986	)
				$	6,048,457			$	(27,932,012	)		$	(21,883,555	)
				Year ended December 31, 2010
		Contract Risk		Realized gains (losses) on futures contracts				Change in unrealized gains (losses) on open futures contracts				Net trading gains (losses)
Futures:		Commodity price
Agriculture				$	23,779,641			$	10,811,173			$	34,590,814
Energy					5,118,288				2,931,004				8,049,292
Metals					11,039,151				2,452,914				13,492,065
				$	39,937,080			$	16,195,091			$	56,132,171
				Year ended December 31, 2009
		Contract Risk		Realized gains (losses) on futures contracts				Change in unrealized gains (losses) on open futures contracts				Net trading gains (losses)
Futures:		Commodity price
Agriculture				$	4,038,968			$	709,670			$	4,748,638
Energy					12,910,221				(441,786	)			12,468,435
Metals					9,031,927				5,992,779				15,024,706
				$	25,981,116			$	6,260,663			$	32,241,779

For the years ended December 31, 2011, 2010 and 2009 the monthly average number of futures contracts bought and sold was approximately 7,055, 6,612 and 4,400 respectively.

 

 

11

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RICI ® Linked – PAM Advisors Fund, LLC

 

Note 3. Derivative Instruments (Continued)

 

Agricultural Sector Series

As of December 31, 2011 and 2010 the Agricultural Sector Series’ derivative contracts had the following impact on the statements of financial condition:

 

		Contract Risk				Location		Asset Derivatives December 31, 2011				Liability Derivatives December 31, 2011				Net
Futures:			Commodity price			Equity in broker trading account
Agriculture								$	188,335			$	(406,588	)		$	(218,253	)
Energy									—				—				—
Metals									—				—				—
								$	188,335			$	(406,588	)		$	(218,253	)
		Contract Risk				Location		Asset Derivatives December 31,  2010				Liability Derivatives December 31, 2010				Net
Futures:			Commodity price			Equity in broker trading account
Agriculture								$	1,796,274			$	(4,778	)		$	1,791,496
Energy									—				—				—
Metals									—				—				—
								$	1,796,274			$	(4,778	)		$	1,791,496

 

 

12

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RICI ® Linked – PAM Advisors Fund, LLC

 

Note 3. Derivative Instruments (Continued)

 

For the years ended December 31, 2011, 2010 and 2009 the Agricultural Sector Series’ derivative contracts had the following impact on the statements of operations:

 

				Year ended December 31, 2011
		Contract Risk		Realized gains (losses) on futures contracts				Change in unrealized gains (losses) on open futures contracts				Net trading gains (losses)
Futures:		Commodity price
Agriculture				$	(789,315	)		$	(2,009,749	)		$	(2,799,064	)
Energy					—				—				—
Metals					—				—				—
				$	(789,315	)		$	(2,009,749	)		$	(2,799,064	)
				Year ended December 31, 2010
		Contract Risk		Realized gains (losses) on futures contracts				Change in unrealized gains (losses) on open futures contracts				Net trading gains (losses)
Futures:		Commodity price
Agriculture				$	3,251,109			$	1,514,854			$	4,765,963
Energy					—				—				—
Metals					—				—				—
				$	3,251,109			$	1,514,854			$	4,765,963
				Year ended December 31, 2009
		Contract Risk		Realized gains (losses) on futures contracts				Change in unrealized gains (losses) on open futures contracts				Net trading gains (losses)
Futures:		Commodity price
Agriculture				$	676,121			$	64,753			$	740,874
Energy					—				—				—
Metals					—				—				—
				$	676,121			$	64,753			$	740,874

For the years ended December 31, 2011, 2010 and 2009 the monthly average number of futures contracts bought and sold was approximately 373, 477 and 500 respectively.

Energy Sector Series

As of December 31, 2011 and 2010 the Energy Sector Series’ derivative contracts had no impact on the statement of financial condition.

For the year ended December 31, 2011 and 2009 the Energy Sector Series’ derivative contracts had no impact on the statement of operations.

For the year ended December 31, 2010 the Energy Sector Series’ derivative contracts had the following impact on the statement of operations:

 

13

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RICI ® Linked – PAM Advisors Fund, LLC

 

Note 3. Derivative Instruments (Continued)

 

 

		Year ended December 31, 2010
		Contract Risk		Realized gains (losses) on futures contracts				Change in unrealized gains (losses) on open futures contracts				Net trading gains (losses)
Futures:		Commodity price
Agriculture				$	—			$	—			$	—
Energy					(206,448	)			—				(206,448	)
Metals					—				—				—
				$	(206,448	)		$	—			$	(206,448	)

For the year ended December 31, 2010, the monthly average number of futures contracts bought and sold was approximately 75.

Note 4. Equity in Broker Trading Account

Cash and financial instruments held at the Company’s clearing broker collateralize amounts due to the clearing broker, if any, and may serve to satisfy regulatory or clearing broker margin requirements. The Company earns interest on its assets deposited with the broker. At December 31, 2011 and 2010, the following amounts of cash were held at the clearing broker to satisfy margin requirements.

 

		December 31, 2011				December 31, 2010
Total Index Series		$	23,495,853			$	21,752,248
Agricultural Sector Series			871,324				1,284,994

Note 5. Receivable from MF Global

On October 31, 2011, MF Global Inc., the Company’s clearing broker at that time (“MF Global”), reported to the Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) possible deficiencies in customer segregated accounts held at the firm. As a result, the SEC and CFTC determined that a liquidation led by the Securities Investor Protection Corporation (“SIPC”) would be the safest and most prudent course of action to protect customer accounts and assets, and a SIPC led liquidation commenced. The Company held $35,477,485 of assets in customer segregated and secured amount accounts on deposit as required to support futures positions at MF Global as of October 31, 2011, although the majority of the Company’s assets were then, and are now, held in bank custody accounts.

On November 21, 2011, the liquidation trustee for MF Global (the “Trustee”) made a statement that the apparent shortfall in MF Global segregated funds could be as much as $1.2 billion. In light of the foregoing, the inherent uncertainty in the timing and results of the liquidation process from the bankruptcy proceedings, and after consultation with professional advisors, the Managing Member made the decision to account for the Company’s estimated exposure to such shortfall by recording a reserve in accordance with GAAP, of $7,330,679 or 2.33% of the member’s equity of the Total Index Series and $486,844 or 3.17% of the member’s equity of the Agricultural Sector Series, although there can be no assurance that any actual shortfall will not be greater than the Trustee’s estimate or that missing segregated funds will not be located reducing the estimated shortfall. The remaining receivable from MF Global of $12,020,261, as of December 31, 2011, is estimated by management based upon information provided by the Trustee and may be subject to change in the near term. Such change could be material to the statement of financial condition.

Given the adverse impact of the MF Global liquidation and surrounding events, the Company is issuing separate classes of Interests to Members (Class B Interests) who invest in the Total Index Series or the Agricultural Sector Series on or after November 1, 2011. Members in these separate classes will not participate in any losses related to the MF Global liquidation nor will they participate in the recoveries from MF Global or the reversals of any reserves or losses taken related to the MF Global liquidation.

The loss to the Company due to the MF Global bankruptcy as of October 31, 2011 is included in the statement of operations as investment income (loss).

 

14

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RICI ® Linked – PAM Advisors Fund, LLC

 

Note 6. Subscriptions, Withdrawals, and Distributions

The minimum initial subscription for the Company for new investors is $25,000. For existing investors in the Company, the minimum additional subscription amount is $10,000. Subscriptions will be effective at the opening of business on the first day of trading of the next calendar month. The Managing Member may, in its absolute discretion, accept or reject subscriptions, in whole or in part, and waive the minimum investment amounts. Class A Interests were issued through October 2011. As described above, Class B interests were issued for contributions received on or after November 1, 2011.

Non-managing members may withdraw some or all of their interest in the Company as of the end of any calendar month upon five business days prior written notice. Withdrawals from the Company made prior to the end of the sixth full calendar month following a non-managing member's initial investment in the Company are subject to a withdrawal charge, payable to the relevant Series, equal to 1 percent of the amount withdrawn, provided that such charge will not apply if the withdrawal is resulting from a request to exchange Interests in one Series for Interests in another Series. The Managing Member may defer or suspend withdrawal rights under certain circumstances.

Distributions may be made at the discretion of the Managing Member. Distributions need not be made pro rata to all non-managing members of the Company based on the balance of their capital accounts. However, given the monthly liquidity of the Company, no distributions are anticipated.

Note 7. The Managing Member

Price Asset Management, Inc., an Illinois corporation, is the managing member, commodity pool operator and commodity trading advisor of the Company.

The Managing Member will maintain a capital account balance in each Series sufficient for such Series to be treated as a partnership for federal income tax purposes (which may be $0) and may make withdrawals from its capital accounts without notice to the non-managing members. The Managing Member is not subject to the Managing Member's management fee, but will otherwise bear its proportionate share of the Company’s expenses.

Note 8. Fees and Expenses

The Company pays the Managing Member a monthly management fee of 0.054167 percent of the month-end Net Asset Value of each non-managing member's capital account in the Company (0.65 percent per annum). The Managing Member may waive or reduce its management fee in respect of any non-managing member without entitling any other non-managing member to a similar waiver or reduction. There were no waived fees for the years ended December 31, 2011, 2010 and 2009.

The management fees for the years ended December 31, 2011, 2010 and 2009, were as follows, and is reflected in the statements of operations.

 

		Year
		2011				2010				2009
Total Index Series		$	2,194,951			$	1,568,683			$	829,571
Agricultural Sector Series			106,704				107,078				74,543
Energy Sector Series			—				10,726				—
The Company			2,301,655				1,686,487				904,114

Non-managing members in the Company introduced by their respective selling agents may be charged a monthly service fee of 0.0833 percent (1 percent per annum) payable to the selling agent. They may also be charged an upfront sales fee of up to one percent of the subscriptions amount that is deducted from the subscription proceeds and paid to the applicable selling agent, if any. For the years ended December 31, 2011, 2010 and 2009 subscriptions are net of the following amounts in sales fees that were charged to applicable non-managing members.

 

15

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RICI ® Linked – PAM Advisors Fund, LLC

 

Note 8. Fees and Expenses (Continued)

 

 

		Year
		2011				2010				2009
Total Index Series		$	19,037			$	28,400			$	17,900
Agricultural Sector Series			9,353				17,900				6,382
Energy Sector Series			—				—				—
The Company			28,390				46,300				24,282

Non-managing members introduced through qualified advisors, including the marketing representative, Uhlmann Price Securities, LLC, will not be charged a service fee. Uhlmann Price Securities, LLC, an affiliate of the Managing Member, will be paid its introducing fee by the Managing Member without reimbursement from the Company. The Company incurred the following amount of servicing fees to the selling agents during the years ended December 31, 2011, 2010 and 2009 respectively.

 

		Year
		2011				2010				2009
Total Index Series		$	135,874			$	119,620			$	90,910
Agricultural Sector Series			29,966				21,679				18,598
Energy Sector Series			—				71				—
The Company			165,840				141,370				109,508

The Company pays all of its own legal, accounting, auditing, reporting, administrative and initial offering expenses.

Any expenses of the Company as a whole, and not specific to any Series of the Company, will be allocated ratably among the Series, in the ratio that the Net Asset Value of each Series bears to the aggregate Net Asset Value of all Series. The Managing Member believes this allocation method to be reasonable.

The Price Futures Group, Inc. (PFG), an affiliate of the Managing Member, acts as the introducing broker for the Company, whereby certain accounts of the Company are introduced to the Company’s clearing broker. A portion of the brokerage fee paid by the Company for clearing transactions is paid to PFG, by the clearing broker.

Commencing June 1, 2010, the Company pays 0.0083 percent (0.10 percent per annum) of the month-end net asset value, Series by Series, as a support service fee to pay broker-dealers for distribution related services to the Company for hosting distribution platforms or providing custody solutions.

The Company incurred the following amount of support services fees during the years ended December 31, 2011, 2010 and 2009, respectively.

 

		Year
		2011				2010				2009
Total Index Series		$	337,502			$	160,240			$	—
Agricultural Sector Series			16,407				9,302				—
Energy Sector Series			—				426				—
The Company			353,909				169,968				—

Note 9. Trading Activities and Related Risks

The Company is exposed to both market risk, the risk arising from changes in the market value of the financial instruments, and credit risk, the risk of failure by another party to perform according to the terms of a contract.

Market risk: The Company engages in the speculative trading of derivative financial instruments that involve varying degrees of off balance sheet market risk whereby changes in the market values of the underlying commodities may result in changes in the value of the derivative financial instruments in excess of the amounts reflected in the statements of financial condition. Theoretically, the Company is exposed to a market risk equal to the notional value of futures and forward contracts purchased.

 

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RICI ® Linked – PAM Advisors Fund, LLC

 

Note 9. Trading Activities and Related Risks (Continued)

 

Credit risk and concentration of credit risk: Credit risk arises primarily from the potential inability of counterparties, such as clearing brokers, banks or other financial institutions, to perform in accordance with the terms of a contract. The Company's exposure to credit risk associated with counterparty nonperformance is limited to the current cost to replace all contracts in which the Company has a gain. Exchange traded financial instruments, such as financial futures, generally do not give rise to significant counterparty exposure due to daily cash settlement procedures for daily gains and losses and the margin requirements of the individual exchanges. The Company clears all of its trades through ADM Investor Services, Inc. In the event this broker does not fulfill its obligations, the Company may be exposed to risk.

The Company maintains deposits with financial institutions in amounts that are in excess of federally insured limits; however, the Company does not believe it is exposed to any significant credit risk.

The Managing Member has established procedures to actively monitor the creditworthiness of the counterparties with which it conducts business in order to minimize market and credit risks. The non-managing members bear the risk of loss only to the extent of the value of their respective investments and, in certain circumstances, distributions and withdrawals received.

Note 10. Financial Highlights

Financial highlights for non-managing members of the Company for the years ended December 31, 2011, 2010 and 2009 are as follows:

 

		Total Index Series												Agricultural Sector Series												Energy Sector Series
		2011				2010				2009				2011				2010				2009				2011				2010 (3)				2009
Total Return			(10.20	)%			17.67	%			24.79	%			(19.64	)%			34.81	%			4.95	%			—	%			(7.61	)%			—	%
Ratios to average members’ equity (net assets)
Total expenses (1)			0.92	%			0.96	%			1.11	%			1.22	%			1.17	%			1.20	%			—	%			1.59	%			—	%
Net investment loss (2)			(3.07	)%			(0.92	)%			(0.78	)%			(4.13	)%			(1.14	)%			(0.63	)%			—	%			(1.54	)%			—	%

 

(1)	The ratio of operating expenses to average members' equity (net asset) values does not include brokerage commissions.

(2)	Net investment income (loss) does not include net realized and unrealized gains and losses and the related brokerage commissions of the Series.

(3)	Annualized.

Each ratio is calculated for the non-managing members taken as a whole. Total return is based on the change in value during the period of a theoretical investment made in each Series at the beginning of each calendar month during the year. The computation of an individual non-managing member's ratios may vary from the ratios calculated above based on any fee waivers and the timing of capital transactions.

The total returns and ratios exclude the effects of any 1 percent sales fees charged by the selling agents as this fee is deducted from the subscription proceeds and paid to the applicable selling agent.

Note 11. Indemnifications

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide indemnifications under certain circumstances. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Managing Member expects the risk of any future obligations under these indemnifications to be remote.

 

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RICI ® Linked – PAM Advisors Fund, LLC

 

Note 12. Subsequent Events

Subsequent to December 31, 2011, subscriptions and withdrawals of interests were as follows:

 

		Total Index Series								Agricultural Sector Series								Total RICI ® Linked - PAM Advisors Fund, LLC
		Subscriptions				Withdrawals				Subscriptions				Withdrawals				Subscriptions				Withdrawals
January		$	1,654,191			$	4,762,854			$	—			$	63,828			$	1,654,191			$	4,826,682
February			1,192,698				3,466,610				1,196,000				75,918				2,388,698				3,542,528
March			10,387,710				—				1,145,000				—				11,532,710				—
Total		$	13,234,599			$	8,229,464			$	2,341,000			$	139,746			$	15,575,599			$	8,369,210

 

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