Free Wealth Management Guide Building An Effectively Diversified Investment Por | Page 14

References:

1. “Determinants of Portfolio Performance,” Gary P. Brinson, L.
Randolph Hood, and Gilbert P. Beebower, Financial Analysts Journal,
July/August 1986.
“Determinants of Portfolio Performance II,” Gary P. Brinson, Brian
D. Singer, and Gilbert P. Beebower,Financial Analysts Journal, May/
June 1991.
2. Barras, Laurent, Scallet, Wermers and Russ, “False Discoveries in
Mutual Fund Performance: Measuring Luck in Estimated Alphas”
(May 2008)”
3. Impact of an Aging Population on the Global Economy. Jeremy J.
Siegel CFA Institute Conference Proceedings Quarterly (09/07).

Disclosure
Past performance is no guarantee of future results, and values fluctu-

ate. All investments involve risk, including the loss of principal. The
risks associated with stocks potentially include increased volatility (up
and down movement in the value of your assets) and loss of principal.
Small company stocks may be subject to a higher degree of market risk
than the securities of more established companies because they may
be more volatile and less liquid. Foreign securities involve additional
risks including foreign currency changes, taxes and different accounting and financial reporting methods.
Indexes are unmanaged baskets of securities that are not available for
direct investment by investors. Their performance does not reflect the
expenses associated with the management of actual portfolios. This
document contains hypothetical results. Hypothetical data does not
represent actual performance and should not be interpreted as an indication of actual performance. Because some of the funds we now use
do not date back to 1970, we use simulated asset class returns from
1970 to the date the fund was established. The returns do not reflect
any potential transaction costs, fees or expenses that investors may pay.

Data sources:

Information provided is from resources believed to be reliable, however, we cannot guarantee or represent that it is accurate or complete.
Because situations vary, any information provided is not intended to
indicate suitability for any particular investor.
The following data sources were used to develop the tables and figures
in this article. All performance data are total returns including interest
and dividends. Index data subtracts the current expense ratio for the
comparable fund.

Stocks

Emerging Markets Fama/French Emerging Markets Index 1989 – 1993,
Dimensional Fund
Advisors (DFA) Emerging Markets Index 1994, DFEMX 1995 – present.
Emerging Market Core DFCEX 2006 – present.
Emerging Market Small Cap Fama/French Emerging Markets Small Cap
Index 1989 – 1993, DFA
Emerging Markets Small Cap Index 1994 – 1998, DEMSX 1999 – present.
Emerging Market Value DFA Emerging Markets Value Index 1989 – 1998,
DFEVX 1999 – present.

International Large Cap MSCI EAFE (net dividends) 1970 – 1991, DFALX
1992 – present.
International Large Cap Value MSCI EAFE Value Index (net dividends) 1975
- 1994, DFIVX 1995 – present.
International Small Cap DFA International Small Cap Index 1970 – 1996,
DFISX 1997 – present.
International Small Value DISVX 1995 – present.
Large Cap S&P 500 1970 – 1990, DFLCX 1/1991 - 4/2010, DFUSX
5/2010 – present.
Large Value DFA Large Value Index 1970 – 1993, DFLVX 1994 – present.
Micro Cap (or Small Cap) DFA US Micro Cap Index 1970 - 1982, DFSCX
1983 – present.
Real Estate Investment Trusts NAREIT 1972-1974, Don Keim REIT Index
1975-1992, DFREX 1993
– present.
S&P 500 S&P 500 Index, provided by Standard & Poor’s Index Services
Group,
through DFA, 1970 – present.
Small Value DFA U.S. Small Cap Value Index 1970 – 1993, DFSVX 1994 –
present.

Bonds

Barclays Government Credit Index 50% long-term corp., 50% long-term
government for 1970-1972 (from DFA
Matrix 2004), Barclays Government/Credit Bond Index from 1973 - present,
through DFA.
TIPs Barclays U.S. TIPS 1998 to June 2000, VIPSX from July 2000 to
December
2006, DIPSX 2007 – present.
Intermediate Government Bonds 5 year Treasury notes January 1970 – December 1972, Barclay Government
Bond Index January 1973 – October 1990, DFIGX November 1990 present.
Short-Term Treasuries One Year U.S. Treasury Note January 1970 – June
1977, Merrill Lynch 1-3
year Treasury July 1977 – December 1987, Vanguard Short-Term Federal
VSGBX January 1988 – October 1991, VFISX November 1991 – present.

Portfolios 1-6

• Yearly rebalancing
• U.S. Stock Allocation:
1970 - 1971: 25% each in LC, LCV, SC and SCV.
1972 - present: 20% each in LC, LCV, SC, SCV, and REITs
• International Stock Allocations:
1970 - 1974: 50% Int. LC, 50% Int. SC.
1975 - 1981: 1/3 Int. LC, 1/3 Int. LCV, 1/3 Int. SC
1982 - 1988: 25% Int. LC, 25% Int. LCV, 25% Int. SC, 25% Int. SCV
1989 - 2005: 20% Int. LC, 20% Int. LCV, 10% EM, 5% EMS, 5% EMV, 20%
Int. SC, 20% Int. SCV
2006 - present: 20% each in Int. LC, Int. LCV, Int. SC, Int. SCV, and EM Core
• Bond Allocation:
1970 - 1997: 30% Short-Term Treasury, 70% Intermediate-Term Government
1998 – present: 30% Short-Term Treasury, 50% Intermediate-Term Government,
20% TIPs

14