monte carlo simulation - index fund advisors · monte carlo simulation prepared for: joe sample...

Monte CarloSimulationPrepared for: Joe SampleFriday, September 16, 2016

Index Fund Advisors, Inc. Corporate Office19200 Von Karman Ave.,Suite 150Irvine, CA 92612

Toll Free: 1-888-643-3133Local Phone:949-502-0050

www.ifa.com

Confirmation Number: 65187

This conceptual graph illustrates that all investors face a wide range of potential wealth outcomes in the future. The blue line shows an average return assumption, whichdoes not consider that a portfolio will experience up and down years (volatility) over time. The green lines show only four potential scenarios out of a much larger set ofpossibilities. The purpose of Monte Carlo simulation is to help investors envision the uncertain future in terms of probabilities. The Monte Carlo technique createsthousands of investment trials (or scenarios) in which the investment parameters (savings and withdrawals) are provided by the individual. The investment returns usedto generate each trial are drawn from a normal distribution, whose parameters are specified by the individual. This is for illustration purposes only and does not reflect anactual or simulated portfolio.

3

Estimated average annual salary increase:

Estimated percent of annual household gross income to contribute:

Joe

Sample

$30,000

35

3.00 %

Use Glide Path

88 Years, 8 Months (1/1/1928 - 8/31/2016)

67

22

$50,000

New IFA Index Portfolio 80

3.00 %

8.00 %

6% of Beginning Retirement Wealth

Investor Type: You stated you invest in index funds with a passive advisor, therefore we are assuming that you will be properly advised and expected tocapture 100% of the fund returns. The chart shown on the page in this report titled "The Value of a Passive Advisor" contains the results of 3 studies showingthat index investors with passive advisors have received a similar return to the funds in which they invested.

5

ADJUSTED ACCUMULATION CASH FLOW SCHEDULEAge IFA Index Portfolio Deposit (8%)Household IncomeAverage Annual Return Annual Standard DeviationYear 50th Percentile

Scenario Wealth36 $51,500.00 $4,12010.11 % 17.74 %2017 $37,088

37 $53,045.00 $4,24410.05 % 17.52 %2018 $44,668

38 $54,636.35 $4,3719.99 % 17.29 %2019 $52,936

39 $56,275.44 $4,5029.93 % 17.07 %2020 $61,671

40 $57,963.70 $4,6379.87 % 16.85 %2021 $71,691

41 $59,702.61 $4,7769.81 % 16.63 %2022 $82,941

42 $61,493.69 $4,9199.75 % 16.41 %2023 $95,653

43 $63,338.50 $5,0679.69 % 16.19 %2024 $108,964

44 $65,238.66 $5,2199.63 % 15.97 %2025 $123,497

45 $67,195.82 $5,3769.57 % 15.75 %2026 $139,461

46 $69,211.69 $5,5379.50 % 15.54 %2027 $156,809

47 $71,288.04 $5,7039.44 % 15.32 %2028 $175,775

48 $73,426.69 $5,8749.38 % 15.10 %2029 $195,462

49 $75,629.49 $6,0509.31 % 14.88 %2030 $220,290

50 $77,898.37 $6,2329.25 % 14.67 %2031 $244,139

51 $80,235.32 $6,4199.18 % 14.45 %2032 $271,418

52 $82,642.38 $6,6119.11 % 14.23 %2033 $301,707

53 $85,121.65 $6,8109.04 % 14.02 %2034 $334,045

54 $87,675.30 $7,0148.98 % 13.80 %2035 $368,219

55 $90,305.56 $7,2248.91 % 13.59 %2036 $406,258

56 $93,014.73 $7,4418.84 % 13.37 %2037 $444,690

57 $95,805.17 $7,6648.77 % 13.16 %2038 $488,072

58 $98,679.33 $7,8948.70 % 12.94 %2039 $536,096

59 $101,639.71 $8,1318.63 % 12.73 %2040 $586,552

60 $104,688.90 $8,3758.55 % 12.51 %2041 $641,647

61 $107,829.56 $8,6268.48 % 12.30 %2042 $698,716

62 $111,064.45 $8,8858.41 % 12.09 %2043 $766,279

6

ADJUSTED ACCUMULATION CASH FLOW SCHEDULE (CONTINUED)Age IFA Index Portfolio Deposit (8%)Household IncomeAverage Annual Return Annual Standard DeviationYear 50th Percentile

Scenario Wealth63 $114,396.38 $9,1528.33 % 11.87 %2044 $833,230

64 $117,828.28 $9,4268.26 % 11.66 %2045 $907,094

65 $121,363.12 $9,7098.18 % 11.45 %2046 $983,100

66 $125,004.02 $10,0008.11 % 11.24 %2047 $1,070,936

7

ADJUSTED WITHDRAW CASH FLOW SCHEDULEAge IFA Index

Portfolio6% of Initial MedianRetirement Wealth

Household IncomeAverage AnnualReturn

Annual StandardDeviation

Year 50th PercentileScenario Wealth

67 $0 $71,8248.03 % 11.02 %2048 $1,162,204

68 $0 $73,9797.96 % 10.81 %2049 $1,172,385

69 $0 $76,1987.88 % 10.60 %2050 $1,181,190

70 $0 $78,4847.80 % 10.39 %2051 $1,183,619

71 $0 $80,8397.72 % 10.18 %2052 $1,187,210

72 $0 $83,2647.64 % 9.97 %2053 $1,192,374

73 $0 $85,7627.56 % 9.76 %2054 $1,198,979

74 $0 $88,3357.48 % 9.55 %2055 $1,189,863

75 $0 $90,9857.40 % 9.34 %2056 $1,190,489

76 $0 $93,7147.32 % 9.13 %2057 $1,172,909

77 $0 $96,5267.24 % 8.93 %2058 $1,157,036

78 $0 $99,4217.15 % 8.72 %2059 $1,137,728

79 $0 $102,4047.07 % 8.51 %2060 $1,114,138

80 $0 $105,4766.99 % 8.30 %2061 $1,079,625

81 $0 $108,6416.90 % 8.10 %2062 $1,045,443

82 $0 $111,9006.82 % 7.89 %2063 $999,192

83 $0 $115,2576.73 % 7.69 %2064 $955,232

84 $0 $118,7146.64 % 7.48 %2065 $905,021

85 $0 $122,2766.56 % 7.28 %2066 $841,124

86 $0 $125,9446.47 % 7.08 %2067 $772,357

87 $0 $129,7226.38 % 6.87 %2068 $694,665

88 $0 $133,6146.29 % 6.67 %2069 $615,066

89 $0 $137,6236.20 % 6.47 %2070 $528,458

8

INCOME GAP ANALYSIS AT RETIREMENT

AGE

INC

OM

EThe median replacement rate of income at retirement is 57.46% ($53,179.82 less) when transitioning from accumulating wealth to entering retirement.Income Prior to Retirement: $125,004.02Income at Retirement: $71,824.20Income Gap: $53,179.82

RETIREMENT

If you have questions about your report contact your IFA Advisor at 888-643-3133.

ACCUMULATION

35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87

$125,004

$71,824

$133,614

$124,706

$115,798

$106,891

$97,983

$89,076

$80,168

$71,260

$62,353

$53,445

$44,538

$35,630

$26,722

$17,815

$8,907

$0

9

PORTFOLIO SURVIVAL OVER TIME

AGE


68

100%

69

100%

70

100%

71

100%

72

100%

73

100%

74

100%

75

100%

76

100%

77

100%

78

99.88%

79

99.74%

80

99.25%

81

98.23%

82

96.69%

83

94.19%

84

91.28%

85

87.59%

86

83.10%

87

78.83%

88

74.51%

89

69.90%

100% - 95% <95% - 75% <75% - 50% <50% - 25% <25% - 0%

10

GROWTH OF WEALTH IN 5 POSSIBLE SCENARIOS

AGE

WEA

LTH

RETIREMENT


95th Percentile ScenarioRanked 500th

36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88

$4,644,288

75th Percentile ScenarioRanked 2,500th

$1,562,866


$528,458


$0


$4,644,288

$4,334,668

$4,025,049

$3,715,430

$3,405,811

$3,096,192

$2,786,572

$2,476,953

$2,167,334

$1,857,715

$1,548,096

$1,238,476

$928,857

$619,238

$309,619

$0

11

DISTRIBUTION OF WEALTH AT RETIREMENT AGE 67 (BASED ON 10,000 SCENARIOS)

DISTRIBUTION


500th2,500th5,000th7,500th9,500th

$2,933,985$1,682,068$1,162,204$814,045$504,116

95th Percentile Scenario:75th Percentile Scenario:50th Percentile Scenario:25th Percentile Scenario:5th Percentile Scenario:

$0to

$266,726

0.08%

$266,726to

$533,452

6.34%

$533,452to

$800,178

17.50%

$800,178to

$1,066,904

19.90%

$1,066,904to

$1,333,630

16.52%

$1,333,630to

$1,600,355

11.90%

$1,600,355to

$1,867,081

8.52%

$1,867,081to

$2,133,807

5.55%

$2,133,807to

$2,400,533

3.87%

$2,400,533to

$2,667,259

2.95%

$2,667,259to

$2,933,985

1.87%

Greater thanor equal to$2,933,985

5.00%

12

DISTRIBUTION OF ENDING WEALTH AT AGE 89 (BASED ON 10,000 SCENARIOS)

DISTRIBUTION

500th2,500th5,000th7,500th9,500th

$4,644,288$1,562,866$528,458$0 at age 88$0 at age 83

95th Percentile Scenario:75th Percentile Scenario:50th Percentile Scenario:25th Percentile Scenario:5th Percentile Scenario:


$0

30.10%

$0to

$464,429

17.79%

$464,429to

$928,858

14.13%

$928,858to

$1,393,286

10.02%

$1,393,286to

$1,857,715

6.96%

$1,857,715to

$2,322,144

5.07%

$2,322,144to

$2,786,573

3.61%

$2,786,573to

$3,251,001

2.93%

$3,251,001to

$3,715,430

1.88%

$3,715,430to

$4,179,859

1.46%

$4,179,859to

$4,644,288

1.05%

Greater thanor equal to$4,644,288

5.00%

13

Index Fund Advisors, Inc. (IFA) is a passive advisor that focuses on indexfunds investing exclusively. We do so for one simple reason: indexing hasshown to be the best way to invest.

This important point is illustrated in the following chart which shows thataverage fund investors, who invested primarily in actively managed funds,(the blue bars) capture on average just 50% of the actual returns deliveredby a fund. This underperformance is easily attributed to what IFA refers toas the “emotions of active investing” and they most certainly take their toll.

Meanwhile, indexers without passive advisors (purple bars) did muchbetter than active investors at capturing a higher percentage of fundreturns, the result of a less active approach. However, indexers withoutpassive advisors also failed to capture the full returns of the market. Theaverage passive investor earned only an average of 80% of index fundreturns. How can this be? It is likely explained by a failure to rebalanceasset allocations during market turbulence, or even the inability to stayinvested during rocky markets.

In sharp contrast to average fund investors and indexers without passiveadvisors, DFA fund investors (green bar) captured all of the fund returnsand then some — 101% of the fund returns. According to Morningstar(http://www.ifa.com/Media/Images/PDF files/Morningstar-IndexingGoesHollywood.pdf), this exceptional outcome is a result of the“very smart behavior” that is practiced by the passive advisors who areassociated with these highly sophisticated investment tools. Theseknowledgeable advisors encourage their clients to stay invested andrebalance through market turbulence. Such behavior enables theseinvestors to maximize their ability to capture returns, and provides soundjustification for the right advisor. This is the approach IFA implements,making IFA a smart choice for you.

14

Ver: 8-1-16i

Disclosures

Disclosure for B

acktested Performance Inform

ation, the IFA Indexes, and IFA Index Portfolios (updates can be found at w

ww.ifabt.com

):

1. Index Fund Advisors, Inc. (IFA) is an SEC registered Investm

ent Adviser. Inform

ation pertaining to IFA’s advisory operations, services, and fees is set forth in IFAs’ current Form

ADV Part 2 (Brochure), a copy of w

hich is available upon request and at w

ww.adviserinfo.sec.gov. The perform

ance information

presented in certain charts or tables represent backtested performance

based on combined sim

ulated index data and live (or actual) mutual fund

results from January 1, 1928 to the period ending date show

n, using the strategy of buy and hold and on the first of each year annually rebalancing the globally diversified portfolios of index funds. Backtested perform

ance is hypothetical (it does not reflect trading in actual accounts) and is provided for inform

ational purposes only to indicate historical performance had the

index portfolios been available over the relevant time period. IFA refers to

this hypothetical data as a Simulated Passive Investor Experience (SPIE).

IFA did not offer the index portfolios until Novem

ber 1999. Prior to 1999, IFA did not m

anage client assets. The IFA indexing investment strategy is

based on principles generally known as M

odern Portfolio Theory and the Fam

a and French Three Factor Model for Equities and Tw

o Factor Model

for Fixed Income. Index portfolios are designed to provide substantial global

diversification in order to reduce investment concentration and the resulting

potential increased risk caused by the volatility of individual companies,

indexes, or asset classes.

2. A review of the IFA Index D

ata Sources (ifaindexes.com), IFA Indexes Tim

e Series

Construction

(http://ww

w.ifa.com/disclosures/charts/#tim

eseries) and several of the D

imensional Indexes (http://w

ww.ifa.com

/disclosures/charts/#dfafunds) is an integral part of this disclosure and should be read in conjunction w

ith this explanation of backtested performance inform

ation presented. IFA defines index funds as m

utual funds that follow a set of rules

of ownership that are held constant regardless of m

arket conditions. An im

portant characteristic of an index fund is that its rules of ownership are not

based on a forecast of short-term events. Therefore, an investm

ent strategy that is lim

ited to the buying and rebalancing of a portfolio of index funds is often referred to as passive investing, as opposed to active investing. Sim

ulated index data is based on the performance of indexes and live

mutual funds as described in the IFA Indexes D

ata Sources page. The index m

utual funds used in IFA’s Index Portfolios are IFA’s best estimate

of a mutual fund that w

ill come closest to the index data provided in the

simulated indexes. Sim

ulated index data is used for the period prior to the inception of the relevant live m

utual fund data and an equivalent mutual fund

expense ratio is deducted from sim

ulated index data. Live (or actual) mutual

fund performance is used after the inception date of each m

utual fund. The IFA Indexes Tim

es Series Construction goes back to January 1928 and

consistently reflects a tilt towards sm

all cap and value equities over time,

with an increasing diversification to international m

arkets, emerging m

arkets and real estate investm

ent trusts as data became available. As of January

1928, there are 4 equity indexes and 2 bond indexes; in January 1970 there are a total of 8 indexes, and there are 15 indexes in M

arch 1998 to present. See

(http://ww

w.ifa.com/disclosures/charts/#IFA_evolution)

to see

the analysis of the evolution of these portfolios. This nam

es the indexes used in the IFA Portfolios for each period, and show

s the Time Series C

onstruction of the IFA indexes. If the original 4 equity indexes from

1928 (IFA US Large

Com

pany Index; IFA US Large C

ap Value Index; IFA US Sm

all Cap Index;

IFA US Sm

all Cap Value Index) are held constant until D

ecember 2012, the

annualized rate of return of this simplified version of IFA Index Portfolio 100

is 10.67%, after the deduction of a 0.9%

IFA advisory fee and a standard deviation of 23.59%

. The evolving IFA Indexes over the same period have

a 10.99% annualized return for IFA Index Portfolio 100 after the sam

e IFA advisory fees and a standard deviation of 22.66%

. The stitching together of index and live fund data and adding international m

arkets, emerging

markets and R

EITs only had a slight impact on risk and return over this 85

year period. Instead, it demonstrates the value of a sm

all cap and value tilt in global equity m

arkets, since over the same period a Sim

ulated S&P 500 Index only had a return of 9.53%

(with no fees deducted), at a standard

deviation of 19.19%. Backtested perform

ance is calculated by using a com

puter program and m

onthly returns data set that start with the first day

of the given time period and evaluates the returns of sim

ulated indexes and D

FA index mutual funds. In 1999, tax-m

anaged funds became available for

many different D

FA index funds.

3. Backtested performance does not represent actual perform

ance and should not be interpreted as an indication of such perform

ance. Actual perform

ance for client accounts may be m

aterially lower than that of the

index portfolios. Backtested performance results have certain inherent

limitations. Such results do not represent the im

pact that material econom

ic and m

arket factors might have on an investm

ent adviser’s decision-making

process if the adviser were actually m

anaging client money. Backtested

performance also differs from

actual performance because it is achieved

through the retroactive application of model portfolios (in this case, IFA’s

Index Portfolios) designed with the benefit of hindsight. As a result, the

models theoretically m

ay be changed from tim

e to time and the effect on

performance results could be either favorable or unfavorable.

4. History of C

hanges to the IFA Indexes: 1991-2000: IFA Index Portfolios 10, 30, 50, 70 and 90 w

ere originally suggested by Dim

ensional Fund Advisors (ifa.com

/pdf/balancedstrategies.pdf), merely as an exam

ple of globally diversified investm

ents using their custom index m

utual funds, back in 1992 w

ith moderate m

odifications in 1996 to reflect the availability of index funds that tracked the em

erging markets asset class. Index Portfolios

between each of the above listed portfolios w

ere created by IFA in 2000 by interpolating betw

een the above portfolios. Portfolios 5, 95 and 100 were

created by Index Fund Advisors in 2000, as a lower and higher extension

of the DFA 1991 risk and return line. As of M

arch 1, 2010, 100 IFA Index Portfolios are available to IFA clients, w

ith IFA Index Portfolios between

the shown allocations being interpolations of the 20 allocations show

n. In January 2008, IFA introduced three new

indexes and eighteen socially responsible portfolios constructed from

these three indexes and five pre-existing IFA indexes. The new

indexes introduced were: IFA U

S Social Core

2 Equity, IFA Emerging M

arkets Social Core, and IFA International R

eal Estate. All three use live D

FA fund data as long as it has been available. Prior to live fund data, they use index data supplied by D

FA modified for

fund managem

ent fees. In April 2008, IFA introduced two new

indexes and eighteen sustainability portfolios constructed from

these two indexes

and five pre-existing indexes. The new indexes introduced w

ere: IFA US

Sustainability Core 1 Equity and IFA International Sustainability C

ore Equity. In N

ovember 2011, IFA m

ade a change to the index data used in its large grow

th and small grow

th indexes. Fama/French data w

as replaced with data

supplied by Dim

ensional Fund Advisors via its Returns 2.2 program

. For large grow

th, the difference in annualized return was about 1%

(a decrease). For sm

all growth, the difference w

as about 0.2%. In N

ovember 2012, IFA

changed the allocations and the historical returns for its socially responsible portfolios to reflect the introduction of the D

FA International Social Core

Equity Portfolio (DSC

LX). Prior to this, the international developed equity asset class w

as unavailable in a socially responsible implem

entation. Although clients w

ho were invested in the old allocation from

the time it

became available (January 2008) likely did better than they w

ould have done w

ith the new allocation, the difference is not statistically significant,

and it is IFA’s advice that going forward having an exposure to international

developed equities will provide a substantial diversification benefit to socially

responsible investors. As of September 2013, all new

clients will be placed

into the NEW

IFA Index Portfolios, and all existing clients will be given the

option to transition to the new portfolios. Index Portfolio 100 w

as held the sam

e as it has been since 2000 and became the only 100 percent equity

portfolio in the NEW

Index Portfolios. The four fixed income indexes (25%

each) rem

ain the same as they have been since 2000 and w

ill make up the

fixed income allocation of all IFA index portfolios in the allocation equal to

100-New

IP#. As of June 2015, IFA introduced Profitability into the historical back-tested returns of the equity funds. IFA w

anted to incorporate the new

research completed by Fam

a/French that introduced profitability as its fourth factor in their asset pricing m

odel. Profitability was back-tested by D

FA back to 1975. As of 2015, N

EW IFA Index Portfolios are referred to as IFA Index

Portfolios. The previous allocations are now referred to as O

riginal IFA Index Portfolios. In April 2016, IFA changed the allocations and the historical returns for its socially responsible portfolios to reflect the introduction of the D

FA Social Fixed Income Portfolio (D

SFIX). Prior to this, the fixed income

asset class was com

posed of four unscreened bond funds as a screened alternative did not exist. Although the duration of the unscreened bond fund m

ix was less than that of the socially screened bond fund, the increase in

duration enhances the portfolio on a risk adjusted basis, and it enables IFA to provide a fully screened portfolio for socially responsible investors. G

o to w

ww.ifa.com

/btp/historyofchange.html to see a sum

mary of changes m

ade to the IFA Indexes and Index Portfolios.

Ver: 8-1-16ii

5. Backtested performance results assum

e the reinvestment of dividends

and capital gains and annual rebalancing at the beginning of each year. It is im

portant to understand that the assumption of annual rebalancing has

an impact on the m

onthly returns reported for the IFA Index Portfolio in both the R

isk and Rew

ard Table (ww

w.ifabigtable.com) and the Index C

alculator (w

ww.ifacalc.com

). For monthly rebalancing, the m

onthly return is calculated w

ith the assumption that the portfolio is perfectly in balance at the beginning

of each month. For annual rebalancing, the year-to-date return is calculated

with the assum

ption that the portfolio is perfectly in balance at the beginning of the year. The latter assum

ption underlies the returns shown for the IFA

Index Portfolios. In actual portfolios, however, rebalancing occurs at no

set time, and such actions are dependent on both m

arket conditions and individual client liquidity inflow

s and outflows, along w

ith the cost impact

of such transactions on the overall portfolio. Therefore actual monthly and

year-to-date returns will differ from

the IFA Returns C

alculator. The reason for this difference is that w

ith annual rebalancing, the monthly returns are

calculated from the ratio of the year-to-date grow

th of $1.00 at the end of the m

onth to the year-to-date growth of $1.00 at the beginning of the m

onth. For m

onthly rebalancing, the monthly return is calculated w

ith the assumption

that the portfolio is perfectly in balance at the beginning of the month. The

performance of the IFA Index Portfolios reflects and is net of the effect of

IFA’s annual investment m

anagement fee of 0.9%

, billed monthly, unless

stated otherwise. M

onthly fee deduction is a requirement of our softw

are used for backtesting. Actual IFA advisory fees are deducted quarterly, in advance. This fee is the highest fee IFA charges. D

epending on the amount

of your assets under managem

ent, your investment m

anagement fee m

ay be less. Backtested risk and return data is a com

bination of live (or actual) m

utual fund results and simulated index data, and m

utual fund fees and expenses have been deducted from

both the live (or actual) results and the sim

ulated index data. When IFA Indexes are show

n in IFA Index Portfolios, all returns data reflects a deduction of 0.9%

annual investment advisory fee,

which is the m

aximum

IFA fee. Unless indicated otherw

ise, data shown for

each individual IFA Index is shown w

ithout a deduction of the IFA advisory fee. W

e choose this method because the creation, choice, m

onitoring and rebalancing of diversified index portfolios are the services of the independent investm

ent advisor and at that point the fees are appropriate to deduct from

the whole portfolio returns. Since w

e accept no fees from investm

ent product firm

s, IFA compares index funds based on net asset value returns,

which are net of the m

utual fund company expense ratios only. Although

index mutual funds m

inimize tax liabilities from

short and long-term capital

gains, any resulting tax liability is not deducted from perform

ance results. Perform

ance results also do not reflect transaction fees (as seen at ww

w.ifafee.com

) and other expenses, which reduce returns.

6. For all data periods, annualized standard deviation is presented as an approxim

ation by multiplying the m

onthly standard deviation number by the

square root of 12. Please note that the number com

puted from annual data

may differ m

aterially from this estim

ate. We have chosen this m

ethodology because M

orningstar uses the same m

ethod. Go to w

ww.ifabt.com

for details. In those charts and tables w

here the standard deviation of daily returns is show

n, it is estimated as the standard deviation of m

onthly returns divided by the square root of 22.

7. The tax-managed index funds are not used in calculating the backtested

performance of the index portfolios, unless specified in the table or chart.

8. Performance results for clients that invested in accordance w

ith the IFA Index Portfolios w

ill vary from the backtested perform

ance due to market

conditions and other factors, including investments cash flow

s, mutual

fund allocations, frequency and precision of rebalancing, tax-managem

ent strategies, cash balances, low

er than 0.9% advisory fees, varying custodian

fees, and/or the timing of fee deductions. As the result of these and

potentially other variances, actual performance for client accounts m

ay differ m

aterially from (and m

ay be lower than) that of the index portfolios.

Clients should consult their account statem

ents for information about how

their actual perform

ance compares to that of the index portfolios.

9. As with any investm

ent strategy, there is potential for profit as well as the

possibility of loss. IFA does not guarantee any minim

um level of investm

ent perform

ance or the success of any index portfolio or investment strategy. All

investments involve risk and investm

ent recomm

endations will not alw

ays be profitable.

10. Past performance does not guarantee future results.

11. IFA Index Portfolio Value Data is based on a starting value of one, as of

January 1, 1928.

12. D

ISCLAIM

ER:

THER

E AR

E N

O

WAR

RAN

TIES, EXPR

ESSED

OR

IMPLIED

, AS TO AC

CU

RAC

Y, CO

MPLETEN

ESS, OR

RESU

LTS O

BTAINED

FRO

M AN

Y INFO

RM

ATION

PRO

VIDED

HER

EIN O

R O

N TH

E M

ATERIAL PR

OVID

ED. This docum

ent does not constitute a complete

description of our investment services and is for inform

ational purposes only. It is in no w

ay a solicitation or an offer to sell securities or investment

advisory services. Any statements regarding m

arket or other financial inform

ation is obtained from sources w

hich we and our suppliers believe to

be reliable, but we do not w

arrant or guarantee the timeliness or accuracy

of this information. N

either our information providers nor w

e shall be liable for any errors or inaccuracies, regardless of cause, or the lack of tim

eliness of, or for any delay or interruption in the transm

ission thereof to the user. All investm

ents involve risk, including foreign currency exchange rates, political risks, m

arket risk, different methods of accounting and financial reporting,

and foreign taxes. Your use of these materials, including w

ww.ifa.com

w

ebsite is your acknowledgem

ent that you have read and understood the full disclaim

er as stated above. IFA Index Portfolios, times series, standard

deviations, and returns calculations are determined in the D

imensional

Returns 2.0 program

. © C

opyright 1999-2016, DFA, Inc.

13. IFA licenses the use of data, in part, from M

orningstar Direct, a third-party

provider of stock market data. W

here data is cited from M

orningstar Direct,

the following disclosures apply: ©

2016 Morningstar, Inc. All rights reserved.

The information provided by M

orningstar Direct and contained herein: (1)

is proprietary to Morningstar and/or its content providers; (2) m

ay not be copied or distributed; and (3) is not w

arranted to be accurate, complete or

timely. N

either Morningstar nor its content providers are responsible for any

damages or losses arising from

any use of this information.

Updated 8-1-2016. For additional updates see w

ww.ifabt.com

.

14. Effective

July 1,

2013, Index

Funds Advisors, Inc.,

a C

alifornia C

orporation, is now Index Fund Advisors, Inc. a D

elaware corporation.

Other Inform

ation IFA Considers to be H

elpful

It is IFA’s advice that the value of having a longer time series exceeds the

concerns of index substitutions over the 1928 to present period. Due to

the very high standard deviations of returns (21.99%) a 40 year or m

ore sam

ple size of data is recomm

ended to obtain a T-statistic of 2, that allows

a conclusion at a 95% or higher level of certainty. In other w

ords, in IFA’s opinion, sm

aller sample sizes introduce larger errors than the errors

introduced by stitching together indexes and live data over time. This is the

advice IFA provides to its clients.

Client portfolios are m

onitored and rebalanced, taking into consideration risk exposure consistency, transaction costs, and tax ram

ifications to maintain

target asset allocations as shown in the Index Portfolios.

IFA uses tax-managed funds in taxable accounts. The tax-m

anaged funds are consistent w

ith the indexing strategy, however, they should not be

expected to track the performance of corresponding non-tax-m

anaged funds in the sam

e or similar indexes. As such, the perform

ance of portfolios using tax-m

anaged funds will vary from

portfolios that do not utilize these funds.

Clients’ accounts w

ill be rebalanced depending on the fluctuation of the asset classes and the cash flow

activity of the client. It is IFA’s opinion that the assum

ption of first of the year annual rebalancing is a reasonable approxim

ation to reality.

IFA is not paid any brokerage comm

issions, sales loads, 12b1 fees, or any form

of compensation from

any mutual fund com

pany or broker dealer. The only source of com

pensation from client investm

ents is obtained from asset

based advisory fees paid by the client. More inform

ation about advisory fees, expenses, no-load m

utual fund fees, prospectuses for no-load index m

utual funds, brokerage and custodian fees can be found at ww

w.ifa.com

/admin/fees.asp. N

ot all IFA clients follow our recom

mendations, and

depending on unique and changing client and market situations, w

e may

customize the construction and im

plementation of the index portfolios for

particular clients, including the use of tax-managed m

utual funds, tax-loss-harvesting techniques and rebalancing frequency and precision. In taxable accounts, IFA uses tax-m

anaged index funds to manage client assets.

Ver: 8-1-16iii

Sources and Description of D

ata

January 1928 – Decem

ber 1990: Dim

ensional US Large C

ap Index minus 0.0083%

/mo (m

utual fund exp ratio)January 1991 – April 2010: D

FA US Large C

ompany Sym

bol: DFLC

XM

ay 2010 – Present : DFA U

S Large Com

pany Portfolio Symbol: D

FUSX

Time-Series

Construction

Investment O

bjective of DFA

US Large C

ompany Portfolio (D

FUSX) The U

.S. Large Com

pany Portfolio seeks, as its investment objective, to approxim

ate the total investment return of the S&P 500®

Index.

One Year

Three Years Five Years

Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap

Aggregated Price-to-B

ook

Turnover Ratio (as of 10/31/15)

Wtd. A

vg Dividend-to-Price

Expense Ratio (as of 10/31/15)

504$137,661M2.40

2.00%2.27%0.08%

3.94% 11.56%

12.02% 7.42%

DFA U

S Large Com

pany Portfolio 3.99%

11.66% 12.10%

7.42%S&P 500 Index

Average A

nnual Total Return

Âll Data as of Jun 30, 2016. R

eturns include the impact of reinvested dividends and capital gains distributions. For updates see w

ww

.ifaindexes.com.

January 1928 – February 1993: Dimensional US Large Cap Value Index m

inus 0.0233%/m

o (mutual fund exp ratio)

March 1993 – Present: DFA US Large Cap Value Portfolio Sym

bol: DFLVXTim

e-SeriesConstruction

Investment O

bjective of DFA US Large Cap Value Portfolio I (DFLVX) is to achieve long-term capital appreciation. The Portfolio is a feeder portfolio and pursues its objective by investing substantially all of its assets

in its corresponding Master Fund, The U.S. Large Cap Value Series, which has the sam

e investment objective and policies as the U.S. Large Cap Value Portfolio.

One Year


Ten YearsNum

ber of HoldingsW

eighted Average Market Cap

Aggregated Price-to-Book

Turnover Ratio (as of 10/31/15)W

td. Avg Dividend-to-PriceExpense Ratio (as of 10/31/15)

307$96,695M1.46

16.00%2.43%0.27%

-0.78% 9.56%

11.09% 6.27%

DFA US Large Cap Value Portfolio (I) 2.86%

9.87% 11.35%

6.13%Russell 1000 Value Index

Average Annual Total Return

Âll Data as of Jun 30, 2016. Returns include the impact of reinvested dividends and capital gains distributions. For updates see www.ifaindexes.com

.

January 1928 – March 1992: D

imensional U

S Small C


/mo (m

utual fund exp ratio)April 1992 – Present : D

FA US Sm

all Cap Portfolio Sym

bol: DFSTX

Time-Series

Construction

Investment O

bjective of DFA

US Sm

all Cap Portfolio I (D

FSTX) is to achieve long-term capital appreciation.

One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



2,007$1,975M1.81

11.00%1.49%0.37%

-4.05% 8.28%

9.71% 7.44%

DFA U

S Small C

ap Portfolio (I) -6.73%

7.09% 8.35%

6.20%R

ussell 2000 Index

Average A

nnual Total Return



ww

.ifaindexes.com.

Jan 1928 - Dec 1981: D

imensional U

S Micro C


/mo (m

utual fund exp ratio)Jan 1982 - Present: D

FA US M

icro Cap Portfolio: D

FSCX

Time-Series

Construction

Investment O

bjective of DFA

US M

icro Cap Portfolio I (D

FSCX) is to achieve long-term

capital appreciation.

One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



1,609$999M1.71

14.00%1.34%0.52%

-4.81% 8.03%

9.93% 6.44%

DFA U

S Micro C

ap Portfolio -6.73%

7.09% 8.35%

6.20%R

ussell 2000 Index

Average A

nnual Total Return



ww

.ifaindexes.com.

January 1928 – Febuary 2000: Dim

ensional US Targeted Value Index m

inus 0.0317%/m


March 2000 – Present: D

FA US Targeted Value Portfolio Sym

bol: DFFVX

Time-Series

Construction

Investment O

bjective of DFA

Targeted Value Portfolio I (DFFVX) is to achieve long-term


One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



1,496$2,913M1.23

15.00%1.66%0.37%

-5.70% 7.08%

8.94% 6.19%

DFA U

S Targeted Value Portfolio (I) -2.58%

6.36% 8.15%

5.15%R

ussell 2000 Value Index

Average A

nnual Total Return



ww

.ifaindexes.com.

Sources and Description of D

ata: The following descriptions of IFA

Indexes indicate how indexes are strung together to sim

ulate similar risk

and return characteristics back to 1928. This long-term data reduces the

possible errors of interpreting a short-term return as being representative

of other short-term returns. Such errors are especially high for periods of

20 years or less. When IFA Indexes are show

n in Index Portfolios, all return data reflects a deduction of 0.9%

annual investment advisory fee, w

hich is the m

aximum

advisory fee charged by IFA. Unless indicated otherw

ise, data show

n for each individual IFA Index is shown w

ithout a deduction of the IFA advisory fee. This m

ethod is used because the creation, choice,

monitoring and rebalancing of diversified index portfolios are the services of

the independent investment advisor. Therefore, fees are deducted from

the w

hole portfolio data but not the individual index data. Live Dim

ensional Fund Advisors’ (D

FA) fund data reflects the deduction of mutual fund advisory fees,

brokerage fees, other expenses incurred by the mutual funds, incorporates

actual trading results, and is sourced from D

FA. Simulated index data also

reflects DFA’s current m

utual fund expense ratios for the entire period. Both sim

ulated and live data reflect total returns, including dividends, except for IFA/N

SDQ

Index. For updates on sources and descriptions of data see ww

w.ifaindexes.com

.


ber 1977: 50% IFA U

S Small C

ap Index and 50% IFA Sm

all Cap Value Index


ber 1993: Dow

Jones US Select R

EIT Index minus 0.0183%

/mo (m

utual fund exp ratio)Febuary 1993 – June 2008: D

FA US R

eal Estate Securities Symbol: D

FREX

July 2008 – Present: DFA G

lobal Real Estate Securities Portfolio Sym

bol: DFG

EX

Time-Series

Construction

Investment O

bjective of DFA

Global R

eal Estate Securities Portfolio (DFG

EX) is to achieve long-term capital appreciation.

One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



403$14,932M1.87

1.00%3.82%0.24%

17.85% 11.27%

10.00% --%

*D

FA Global R

eal Estate Sec. Portfolio 16.56%

10.14% 9.13%

4.83%S&am

p;P Global R

EIT Index**

Average A

nnual Total Return

*Inception Date 6/4/08 **N

et Dividends Âll D

ata as of Jun 30, 2016. Returns include the im

pact of reinvested dividends and capital gains distributions. For updates see ww

w.ifaindexes.com

.

Ver: 8-1-16iv

January 1928 – June 1955: IFA US Large Value Index

July 1955 – Decem

ber 1969: Dim

ensional UK Large Value m

inus 0.0358%/m



ber 1974: MSC

I EAFE Gross D

ividends minus 0.0358%

/mo (m

utual fund exp ratio)January 1975 – February 1994: Fam

a/French International Value minus 0.0358%

/mo (m

utual fund exp ratio)M

arch 1994 – Present: DFA International Value Portfolio Sym

bol: DFIVX

Time-Series

Construction

Investment O

bjective of DFA

International Value Portfolio I (DFIVX) is to achieve long-term

capital appreciation. The portfolio pursues its objective by investing substantially all of its assets in its corresponding M

aster Fund, The International Value Series, which has the sam

e investment objective and policies as the D

FA International Value Portfolio.

One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



478$49,253M0.89

21.00%4.55%0.43%

-16.53% 0.08%

-1.15% 0.74%

DFA Intl. Value Index Portfolio

-9.84% 1.88%

1.23% 1.63%

MSC

I EAFE Index*

Average A

nnual Total Return

*Net D

ividends Âll Data as of Jun 30, 2016. R


ww

.ifaindexes.com.


ber 1969: IFA US Sm

all Cap Index

January 1970 – September 1996: D

imensional International Sm

all Cap Index m

inus 0.0458%/m


October 1996 – Present: D

FA International Small C

ompany Portfolio Sym

bol: DFISX

Time-Series

Construction

Investment O

bjective of DFA

International Small C

ompany Portfolio I (D

FISX) is to achieve long-term capital appreciation.

One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



4,231$2,124M1.30

11.00%3.140.54%

-3.85% 6.53%

3.98% 4.26%

DFA Intl. Sm

all Cap Index

3.35% 6.34%

3.61% 3.33%

MSC

I World ex U

SA Small C

ap Index*

Average A

nnual Total Return

*Price-Only Âll D



w.ifaindexes.com

.


ber 1969: IFA Small C

ap Value IndexJanuary 1970 – June 1981: IFA International Sm

all Com

pany IndexJuly 1981 – D

ecember 1994: D


all Cap Value Index m

inus 0.0575%/m


January 1995 – Present: DFA International Sm

all Cap Value Portfolio Sym

bol: DISVX

Time-Series

Construction

Investment O

bjective of DFA

International Small C

ap Value Portfolio I (DISVX) is to achieve long-term


One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



2,216$1,858M0.79

18.00%3.48%0.69%

-9.28% 6.01%

4.04% 3.92%

DFA Intl. Sm

all Cap Value

-3.35% 6.34%

3.61% 3.33%

MSC

I EAFE Small C

ap Index*

Average A

nnual Total Return

*Price-Only Âll D



w.ifaindexes.com

.


ber 1969: 50% IFA U

S Large Value Index and 50% IFA U

S Small C

ap IndexJanuary 1970 – D

ecember 1987: 50%

IFA Int'l Value and 50% IFA Int'l Sm

all Cap


ber 1988: MSC

I Emerging M

arkets Index (gross div.) minus 0.05%

/mo (m

utual fund exp ratio)January 1989 – April 1994: Fam

a/French Emerging M

arkets Index minus 0.05%

/mo (m


ay 1994 – Present: DFA Em

erging Markets Portfolio Sym

bol: DFEM

X

Time-Series

Construction

Investment O

bjective of DFA

Emerging M

arkets Portfolio I (DFEM

X) is to achieve long-term capital appreciation. The portfolio pursues its objective by investing substantially all of its assets in its corresponding

Master Fund, The Em

erging Markets Series, w

hich has the same investm

ent objective and policies as the Emerging M

arkets Portfolio.

One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



1,096$37,912M1.48

9.00%2.62%0.57%

-8.97% -0.68%

-3.14% 4.54%

DFA Em

erging Markets Portfolio I

-12.05% -1.56%

-3.78% 3.54%

MSC

I Emerging M

arkets Index*

Average A

nnual Total Return

*Gross D

ividend Âll Data as of Jun 30, 2016. R


ww

.ifaindexes.com.


ber 1969: IFA US Sm

all Cap Value Index


ber 1988: IFA Emerging M

arkets IndexJanuary 1989 – April 1998: D

imensional Em

erging Value Index minus 0.05%

/mo (m


ay 1998 – Present: DFA Em

erging Markets Value Portfolio Sym

bol DFEVX

Time-Series

Construction

Investment O

bjective of DFA

Emerging M

arkets Value Portfolio I (DFEVX) is to achieve long-term

capital appreciation. The portfolio pursues its objective by investing substantially all of its assets in its corresponding M

aster Fund, The Dim

ensional Emerging M

arkets Value Fund, which has the sam

e investment objective and policies as the Em

erging Markets Value Portfolio.

One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



2,202$22,442M0.83

14.00%3.11%0.56%

-11.75% -2.51%

-5.74% 3.82%

DFA Em

erging Markets Value Portfolio I

-12.05% -1.56%

-3.78% 3.54%

MSC

I Emerging M

arkets Index*

Average A

nnual Total Return

*Gross D



ww

.ifaindexes.com.


ber 1969: IFA US Sm

all Cap Index


ber 1988: IFA Emerging M

arkets IndexJanuary 1989 – M

arch 1998: Fama/French Em

erging Markets Sm

all minus 0.065%

/mo (m

utual fund exp ratio)April 1998 – Present: D

FA Emerging M

arkets Small C

ap Portfolio Symbol: D

EMSX

Time-Series

Construction

Investment O

bjective of DFA

Emerging M

arkets Small C

ap Portfolio I (DEM

SX) is to achieve long-term capital appreciation. The portfolio pursues its objective by investing substantially all of its assets in its

corresponding Master Fund, The D

imensional Em

erging Markets Value Fund, w

hich has the same investm

ent objective and policies as the Emerging M

arkets Value Portfolio.

One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



3,413$1,165M1.18

18.00%2.57%0.73%

-5.64% 2.43%

-0.55% 7.65%

DFA Em

g. Markets Sm

all Cap Portfolio

-12.05% -1.56%

-3.78% 3.54%

MSC

I Emerging M

arket Index**

Average A

nnual Total Return

*Gross D



ww

.ifaindexes.com.

January 1928 – June 1963: One-M

onth T-Bills minus 0.015%

/mo (m

utual fund exp ratio)July 1963 – July 1983: O

ne-Year T-Note Index m

inus 0.015%/m


August 1983 – Present: DFA O

ne-Year Fixed Income Portfolio Sym

bol DFIH

X

Time-Series

Construction

Investment O

bjective of Investment O

bjective of DFA

One-Year Fixed Incom

e Portfolio (DFIH

X) is to achieve a stable real return in excess of the rate of inflation with a m

inimum

of risk.

One Year


Ten YearsD

urationA

verage Portfolio Maturity R

angeExpense R

atio (as of 10/31/15)

0.95 Years0.96 Years0.17%

0.79% 0.53%

0.55% 1.81%

DFA O

ne-Year Fixed Income Index Portfolio

0.59% 0.38%

0.34% 1.69%

One-Year U

S Treasury Note*

Average A

nnual Total Return

*BofA Merrill Lynch Index Âll D


pact of reinvested dividends and capital gains distributions. For updates see ifaindexes.com.

Ver: 8-1-16v


ber 1972: Five-Year T-Notes m

inus 0.0167%/m


January 1973 – May 1987: Barclays Interm

ediate Governm

ent Bond Index minus 0.0167%

/mo (m

utual fund exp ratio)June 1987 – Present: D

FA Short-Term G

ovt. Portfolio (Five-Year Gov't Incom

e) Symbol: D

FFGX

Time-Series

Construction

Investment O

bjective of DFA

Short-Term G

overnment Portfolio (D

FFGX) is to m

aximize total returns from

the universe of debt obligations of the U.S. G

overnment and U

.S. government agencies.

One Year


Ten YearsD

urationA


angeExpense R

atio (as of 10/31/15)


2.36% 1.72%

1.51% 3.08%

DFA Short-Term

Gov't Portfolio

2.39% 1.65%

1.42% 3.22%

Capital U

S Gov't Bond Index Int.*

Average A

nnual Total Return

*Barclays Index Âll Data as of Jun 30, 2016. R

eturns include the impact of reinvested dividends and capital gains distributions. For updates see ifaindexes.com

.


ber 1984: IFA Short Term G

overnment Index

January 1985 – Novem

ber 1990: Citi G

lobal Governm

ent Bond Hedged m

inus 0.0233%/m


Decem

ber 1990 – Present: DFA Five-Year G

lobal Fixed Income Portfolio Sym

bol: DFG

BX

Time-Series

Construction

Investment O

bjective of DFA

Five-Year Global Fixed Incom

e Portfolio (DFG

BX) is to provide a m

arket rate of return for a fixed income portfolio w

ith low relative volatility of returns.

One Year


Ten YearsD

urationA


angeExpense R

atio (as of 10/31/15)


4.04% 2.90%

2.78% 3.84%

DFA Five-Year G

lobal Fixed Portfolio 2.36%

1.82% 1.84%

2.98%W

orld Gov't Bond 1-5 Years*

Average A

nnual Total Return

*Citigroup Index, H

edged Âll Data as of Jun 30, 2016. R


.

Jan 1928 - Nov 1992: D

imensional U

S Large Cap G

rowth m

inus 0.01%/m


Dec 1992 - Present: Vanguard G

rowth Index Inst'l: VIG

IXTim

e-SeriesC

onstruction

Investment O

bjective of Vanguard Grow

th Index (VIGIX) The investm

ent seeks to track the performance of a benchm

ark index that measures the investm

ent return of large-capitalization growth stocks. The fund

employs a passive m

anagement investm

ent approach designed to track the performance of the M

SCI U

S Prime M

arket Grow

th index, a broadly diversified index of growth stocks of large U

.S. companies. It attem

pts to replicate the target index by investing all, or substantially all, of assets in the stocks that m

ake up the index, holding each stock in approximately the sam

e proportion as its weighting in the index.

One Year


Ten YearsN

umber of H

oldingsM

edian Market C

ap333$61.0B

1.45% 12.51%

12.13% 8.69%

Vanguard Grow

th Inde xA

verage Annual Total R

eturn



ww

.ifaindexes.com.

January 1928 - February 1971: Fama/French U

S Small G

rowth Sim

ulated Portfolio (ex Utilities)

Mar 1971 - Present: N

ASDAQ

% C

hange; Excluding Dividends (Source: Yahoo! Finance)

Time-Series

Construction

Investment O

bjective of IFA N

SDQ

Index To capture the return of the NASD

AQ-100 Index, excluding the im

pact of dividends. The NASD

AQ-100 Index includes 100 of the largest dom

estic and international non-financial securities listed on The N

asdaq Stock Market based on m

arket capitalization. The Index reflects companies across m

ajor industry groups including computer hardw

are and software, telecom

munications,

retail/wholesale trade and biotechnology. It does not contain securities of financial com

panies including investment com

panies.

One Year


Ten YearsN

umber of H

oldingsM

edian Market C

ap105$102.6B

1.77% 15.52%

13.60% 9.22%

Nasdaq

Average A

nnual Total Return

Âll Data as of Jun 30, 2016. For updates see w

ww

.ifaindexes.com.

Jan 1928 - May 1998: D

imensional U

S Small C

ap Grow

th minus 0.01%

/mo (m

utual fund exp ratio)Jun 1998 - Present: Vanguard Sm

all-Cap G

rowth Index Inst'l :VSG

IXTim

e-SeriesC

onstruction

Investment O

bjective of Vanguard Small-C

ap Grow

th Index (VSGIX) The investm

ent seeks to track the performance of a benchm

ark index that measures the investm

ent return of small capitalization grow

th stocks. The fund em

ploys a passive managem

ent investment approach designed to track the perform

ance of the MSC

I US Sm

all Cap G

rowth index, a broadly diversified index of grow

th stocks of smaller U

.S. companies. It

attempts to replicate the target index by investing all, or substantially all, of assets in the stocks that m

ake up the index, holding each stock in approximately the sam

e proportion as its weighting in the index.

One Year


Ten YearsN

umber of H

oldingsM

edian Market C

ap708$3.1B

-0.21% 15.52%

13.60% 9.22%

Vanguard Small-C

ap Grow

th IndexA


eturn



ww

.ifaindexes.com.

Jan 1928 - Apr 1992: Dim

ensional US M

arketwide m

inus 0.01%/m


May 1992 - Present: Vanguard U

S Total Market Index Inst'l :VITSX

Time-Series

Construction

Investment O

bjective of Vanguard US Total M

arket Index (VITSX) The investment seeks to track the perform

ance of a benchmark index that m

easures the investment return of the overall stock m

arket. The fund em

ploys a passive managem

ent strategy designed to track the performance of the M

SCI U

S Broad Market index, w

hich consists of all the U.S. com

mon stocks traded regularly on the N

ew York Stock Exchange and the

Nasdaq over-the-counter m

arket. It typically holds 1,200-1,300 of the stocks in its target index.

One Year


Ten YearsN

umber of H

oldingsM

edian Market C

ap3,657$42.5B

4.07% 11.78%

12.01% 7.76%

Vanguard US Total M

arket IndexA


eturn



ww

.ifaindexes.com.

Jan 1928 - May 1998: D

imensional U

S Small C

ap Grow

th minus 0.01%

/mo (m

utual fund exp ratio)Jun 1998 - Present: Vanguard Sm

all-Cap G

rowth Index Inst'l :VSG

IXTim

e-SeriesC

onstruction

Investment O

bjective of S&P 500®

Index Widely regarded as the best single gauge of the U

.S. equities market, this w

orld-renowned index includes 500 leading com

panies in leading industries of the U.S. econom

y. Although the S&P 500®

focuses on the large cap segment of the m

arket, with approxim

ately 75% coverage of U

.S. equities, it is also a proxy for the total market. S&P 500 is part of a series of S&P U

.S. indices that can be used as building blocks for portfolio construction.

One Year


Ten YearsN

umber of H

oldingsM

edian Market C

ap505$74.0B

4.00% 11.66%

12.10% 7.42%

S&P 500 IndexA


eturn


eturns include dividends. For updates see ww

w.ifaindexes.com

.

January 1928 – June 1977: Five-Year T-Notes m

inus 0.015%/m


July 1977 – Decem

ber 1989: ML U

S Treasury Index 1-3 Years minus 0.015%

/mo (m

utual fund exp ratio)January 1990 – February 1996: C

iti World G

ov't Bond 1-3 Years Hedged m

inus 0.015%/m


March 1996 – Present: D

FA Two-Year G

lobal Fixed Income Portfolio Sym

bol: DFG

FX

Time-Series

Construction

Investment O

bjective of DFA

Two-Year G

lobal Fixed Income Portfolio (D

FGFX) is to m

aximize total returns consistent w

ith preservation of capital.

One Year


Ten YearsD

urationA


angeExpense R

atio (as of 10/31/15)


0.91% 0.69%

0.68% 1.96%

DFA Tw

o-Year Global Fixed Incom

e Portfolio 0.98%

0.78% 0.88%

2.08%W

orld Gov't Bond Index 1-3 Years*

Average A

nnual Total Return

*Citigroup Index, H

edged Âll Data as of Jun 30, 2016. R


.

Ver: 8-1-16vi

January 1928 - Decem

ber 1969: Dim

ensional Adjusted Market 2 Index m

inus 0.018%/m

o. (mutual fund exp ratio)


ber 1993: 60% M

SCI EAFE Index (G

ross Dividends) m

inus 0.025%/m

o. (mutual fund exp ratio) + 20%

D


all Cap Index m

inus 0.0458%/m

o (mutual fund exp ratio) + 20%

Dim

ensional International Small

Cap Value Index m

inus 0.0575%/m


January 1994 - September 2005: D

FA International Adjusted Market Index m

inus 0.035%/m


October 2005 - N

ovember 20 2012: D

FA International Core Equity Portfolio Sym

bol: DFIEX

Decem

ber 2012 - Present: DFA International Social C

ore Equity Portfolio Symbol: D

SCLX

Time-Series

Construction

Investment O

bjective of DFA

International Social Core Equity Portfolio (D

SCLX) is to achieve long-term


One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



3,660$21,092M1.27

7.00%3.50%0.46%

-8.41% 2.88%

--%*

--%*

DFA Intl. Social C

ore Equity Portfolio -9.84%

1.88% 1.23%

1.63%M

SCI W

orld ex US (net dividend)

Average A

nnual Total Return

*Inception date 11/1/2012 Âll Data as of Jun 30, 2016. R


ww

.ifaindexes.com.

January 1928 - September 2005: D

imensional Adjusted M

arket 2 Index minus 0.028%

/mo (m

utual fund exp ratio)O

ctober 2005 - October 2007: D

FA US C

ore Equity 2 Portfolio Symbol: D

FQTX m

inus 0.01%/m


Novem

ber 2007 - Present: DFA U

S Social Core Equity 2 Portfolio Sym

bol: DFU

EX

Time-Series

Construction

Investment O

bjective of DFA US Social Core Equity 2 Portfolio (DFUEX) is to achieve long-term capital appreciation.

One Year


Inception*Num

ber of HoldingsW

eighted Average Market Cap

Aggregated Price-to-Book

Turnover Ratio (as of 10/31/15)W

td. Avg Dividend-to-PriceExpense Ratio (as of 10/31/15)

2,341$74,975M1.90

16.00%1.90%0.29%

-2.67% 7.97%

9.41% --%

*D

FA US Social C

ore Equity 2 Portfolio 2.14%

11.13% 11.60%

7.40%R

ussell 3000 Index

Average Annual Total Return

*Inception Date 10/1/07 Âll D



w.ifaindexes.com

.

January 1928 - April 2005: 30% IFA Em

erging Markets Index + 30%

IFA Emerging M

arkets Value Index + 40% IFA Em

ergning M

arkets Small C

ap IndexM

ay 2005 - August 2006: DFA C

ore Emerging M

arkets (DFC

EX)Septem

ber 2006 - Present: DFA Social C

ore Emerging M

arkets Portfolio Symbol: D

FESX

Time-Series

Construction

Investment O

bjective of Emerging M

arkets Social Core Equity Portfolio (D

FESX) is to achieve long-term capital appreciation.

One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



3,436$28,101M1.35

11.00%2.68%0.65%

-8.36% -0.33%

-3.38% --%

DFESX Portfolio

-12.05% -1.56%

-3.78% 3.54%

MSC

I Emerging M

arket Index*

Average A

nnual Total Return

*Net D



ww

.ifaindexes.com.

January 1928 – September 2005: D

imensional Adjusted M

arket 1 Index minus 0.03%

/mo (m

utual fund exp ratio)O

ctober 2005 – March 2008: D

FA US C

ore 1 Equity Portfolio minus 0.01%

/mo (m


FA US Sustainability C

ore 1 Portfolio Symbol: D

FSIX

Time-Series

Construction

Investment O

bjective of DFA

US Sustainability C

ore 1 Portfolio (DFSIX) is to achieve long-term


One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



1,883$95,553M2.37

11.00%1.91%0.25%

-1.02% 9.79%

10.79% --%

*D

FA US Sustainability C

ore I 2.14%

11.13% 11.60%

7.40%R

ussell 3000 Index

Average A

nnual Total Return

*Inception Date 3/12/2008 Âll D



w.ifaindexes.com

.

January 1928 – March 2008: IFA International C

ore Equity Index minus 0.015%

/mo (m


FA International Sustainability Core Portfolio Sym

bol: DFSPX

Time-Series

Construction

Investment O

bjective of DFA

International Sustainability Core 1 Portfolio (D

FSPX) is to achieve long-term capital appreciation.

One Year


Ten YearsN

umber of H

oldingsW

eighted Average M

arket Cap


ook


Wtd. A



3,004$30,566M1.58

8.00%3.35%0.42%

-9.20% 2.56%

1.54% --%

*D

FA Intl. Sustainability Core I

-9.84% 1.88%

1.23% 1.63%

MSC

I World ex U

SA Index**

Average A

nnual Total Return

*Inception Date 3/12/2008 **N

et Div. Âll D



w.ifaindexes.com

.


ber 1975: IA SBBI US IT G

ovt TR U

SD m

inus 2.25 bps/month

January 1976 - March 2011: Barclays U

S Agg Bond Tr minus 2.25bps/m

onthApril 2011 - M

arch 2016: DFA Investm

ent Grade Portfolio

April 2016 - Present: DFA Social Fixed Incom

e Portfolio Symbo: D

SFIX

Time-Series

Construction

Investment O

bjective of DFA

Social Fixed Income Portfolio (D

SFIX) is to seek to maxim

ize total returns. Total return is comprised of incom

e and capital appreciation.

One Year


Ten YearsD

urationA


angeExpense R

atio (as of 3/23/16)

-- Years-- Years0.27%

--% --%

--% --%

DFA Social Fixed Incom

e Portfolio --%

--% --%

--%Barclays U

S Aggregate Bond Index

Average A

nnual Total Return



.

SF

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