Diversification beyond traditional index portfoliosPresentation Transcript
Diversification Beyond Traditional Index PortfoliosTraditional Stock and Bond portfolio diversified for more intelligent risk taking.Quarterly: 1973–2010 Annualized Annualized Merrill Lynch One-Year US Treasury Note Index Compound Standard S&P 500 Index Return Deviation US Small Cap Index Model Portfolio 1 9.47% 11.16% US Large Value Index Model Portfolio 2 8.83% 10.23% Targeted Value Index Model Portfolio 3 9.74% 11.88% International Large Index International Small Index Model Portfolio 4 10.68% 11.81% International Large Value Index Model Portfolio 5 11.65% 11.26% International Small Value Index Emerging Markets Blended Index BofA Barclays US Merrill Lynch US US Intl. Intl. Emerging Govt./Credit S&P One-Year US Small Large Targeted Intl. Intl. Large Small Markets Bond 500 Treasury Cap Value Value Large Small Value Value Blended Index Index Note Index Index Index Index Index Index Index Index Index Model Portfolio 1 40% 60% Model Portfolio 2 60% 40% Model Portfolio 3 30% 40% 30% Model Portfolio 4 15% 40% 15% 15% 15% Model Portfolio 5 7.5% 40% 7.5% 7.5% 7.5% 6% 6% 6% 6% 6% Rebalanced annually. Barclays Capital data, formerly Lehman Brothers, provided by Barclays Bank PLC. The S&P data are provided by Standard & Poor’s Index Services Group. The Merrill Lynch Indices are used with permission; copyright 2011 Merrill Lynch, Pierce, Fenner & Smith Incorporated; all rights reserved. Dimensional Index data compiled by Dimensional. Emerging Markets Blended Index consists of 50% Fama/French Emerging Markets Index, 25% Fama/French Emerging Markets Small Cap Index, and 25% Fama/French Emerging Markets Value Index. Fama/French Emerging Markets, Fama/French Emerging Markets Value and Fama/French Emerging Markets Small Cap Index weightings allocated evenly between Dimensional International Small Cap Index and Fama/French International Value Index prior to January 1989 data inception. Dimensional International Small Cap Value Index weighting allocated to International Small Cap Index prior to July 1981 data inception. International Value weighting allocated evenly between International Small Cap and MSCI World ex USA Index prior to January 1975 data inception. Indexes are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. Not to be construed as investment advice. Returns of model portfolios are based on back-tested model allocation mixes designed with the benefit of hindsight and do not represent actual investment performance. See cover page for additional information.