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New perspectives on asset class investing

This document discusses various investment strategies including active and passive investing. It notes that most active managers underperform their benchmarks over time. It also discusses the benefits of asset class investing over index investing, including lower costs, improved tax efficiency, increased diversification, better risk exposure, and potentially better long-term performance. Charts show that a diversified portfolio following an asset class approach outperformed the S&P 500 since 2000 and was less volatile, and held up better in the face of withdrawals.

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© 2019 BAM Advisor Services LLC d/b/a Loring Ward (“Loring Ward”). All rights reserved. R 19-102 NEW PERSPECTIVES ON ASSET CLASS INVESTING
Investing Starts with a Plan People invest their money to reach a goal Creating a plan clarifies those goals ?$
$ Investing Starts with a Plan Primary Objective: Don’t run out of money ?$
Financial Planning Software For illustrative purposes only. Past performance does not guarantee future results and there is no guarantee that the strategies set forth in this presentation will achieve their intended objectives. Based on historical market index return data and realistic expectations
Historical Long-Term Rate of Return Past performance does not guarantee future results. See appendix for additional information. 6-11%
Thousands of Investment Options Passive
You Have Two Choices Diversification neither assures a profit nor guarantees against loss in a declining market. Active Stock Picking Market Timing Passive Diversified group of securities Tax efficiency
Poor Track Record for Active Managers Source: Standard & Poor’s Indices Versus Active Funds Scorecard (SPIVA) 2019. Index used for comparison: U.S. Stocks — S&P 1500 Index; Emerging Stocks — S&P/IFCI Composite; International Stocks— S&P 700 Index; Short-Term U.S. Gov’t Bonds — Barclays US Government (1-3 Year), Global Bonds — Barclays Global Aggregate. Outperformance is based upon equal weight fund counts. Index returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. Past performance is not an indication of future results. More recent performance may alter these assessments or outcomes. Percentage of Active Funds that Outperformed Their Index 2009 - 2018 U.S. Stocks Emerging Stocks International Stocks Short-Term U.S. Gov’t Bonds Global Bonds 0% 20% 40% 60% 80% 100% 16% 12% 19% 32% 53%
You Have Two Choices Active Stock Picking Market Timing Passive Diversified group of securities Tax efficiency Diversification neither assures a profit nor guarantees against loss in a declining market.
Thousands of Investment Options Passive
You Have Two More Choices Index investing targets a specific set of securities at specific weights as designated by an index provider, with the risks associated with that particular part of the market. Asset class investing targets a specific part of the market by maintaining consistent exposure to securities which fit the targeted characteristics but are not beholden to a specific list of securities provided by an index provider, with risks associated with that particular part of the market. Passive Index Asset Class Diversified group of securities Tax efficiency Diversified group of securities Tax efficiency Diversified group of securities Tax efficiency Precision
Precision
You Have Two More Choices Index investing targets a specific set of securities at specific weights as designated by an index provider, with the risks associated with that particular part of the market. Asset class investing targets a specific part of the market by maintaining consistent exposure to securities which fit the targeted characteristics but are not beholden to a specific list of securities provided by an index provider, with risks associated with that particular part of the market. Passive Index Diversified group of securities Tax efficiency Asset Class Diversified group of securities Tax efficiency Precision Diversified group of securities Tax efficiency Precision Flexibility
Flexibility
Asset Class Diversified group of securities Tax efficiency Precision Flexibility Diversified group of securities Tax efficiency Precision Flexibility Factors of return You Have Two More Choices Index investing targets a specific set of securities at specific weights as designated by an index provider, with the risks associated with that particular part of the market. Asset class investing targets a specific part of the market by maintaining consistent exposure to securities which fit the targeted characteristics but are not beholden to a specific list of securities provided by an index provider, with risks associated with that particular part of the market. Passive Index Diversified group of securities Tax efficiency
Factors of Return PROFITABILITY MOMENTUM VALUE SIZE
Are All Passive the Same? Diversification Tax Efficiency Precision Flexibility Factors of Return
THERE MAY BE A BETTER ALTERNATIVE TO INDEX RETURNS
Asset Class Fund Returns Annualized Returns % 2009 – 2018. See slides 27-29 for complete data. Performance data shown represents past performance and is no guarantee of future results. Current performance may be higher or lower than the performance shown. The indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. See “Appendix: Standardized Performance Data & Disclosures” to obtain complete information on performance, investment objectives, risks, advisory fees, and expenses of Dimensional’s funds. Sources: Dimensional Fund Advisors for Dimensional funds; Mutual fund universe statistical data provided by Morningstar, Inc.; MSCI data copyright MSCI 2019, all rights reserved. U.S. Large Cap U.S. Large Value U.S. Small Cap 5-Year Global Fixed International Large Value 0% 2% 4% 6% 8% 10% Benchmark Morningstar Category Dimensional Funds 12% 14% 13.19 11.43 13.18 13.17 10.45 11.18 13.39 11.35 11.97 2.80 3.41 1.69 6.11 5.19 5.69
Asset Class Investing Can Offer 1. Lower overall costs 2. Improved tax efficiency 3. Increased diversification 4. Better risk exposure to an asset class 5. Potentially better long-term performance
2% 65/35 Portfolio 17% 16% 15% 12% 14% 5% 4% 8% 7% Two Portfolios… 100% S&P 500 Index Cash & Cash Alternatives Global Fixed Income Short-Term Fixed Income 1-3 Years U.S. Market U.S. Large Value U.S. Small Neutral International Large Value International Small Neutral Emerging Markets REITs
Let’s Look at What Happened Since 2000… Source: Morningstar Direct 2019. Allocation is 100% S&P 500 TR, and 65/35 Mix represented by: 2% (Cash), 16% (DFA One Year Fixed Income DFIHX), 17% (DFA 5 Year Global DFGBX), 15% (DFA US Core Equity 1 DFEOX), 12% (DFA US Large Cap Value DFLVX), 8% (DFA US Small Cap DFSTX), 4% (DFA REIT DFREX), 14% (DFA Intl Value DFIVX), 7% (DFA Intl Small Cap DFISX), 5% (DFA Emerging Markets Value DFEVX). Allocation mix return is the weighted average return of the respective funds, rebalanced annually. The performance data quoted represents past performance. Past performance does not guarantee future results and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Index performance does not reflect the expenses associated with the management of an actual portfolio. Portfolio performance does not reflect the deduction of any fees charged by an independent investment advisor or other service provider to an individual account. Such fees, if taken into consideration, will reduce the performance quoted above. *Standard Deviation is a statistical measurement that sheds light on historical volatility. Allocation Annualized Return (2000-2018) Standard Deviation* (2000 – 2018) S&P 500 Index 4.86% 17.65% 65/35 Allocation Mix 4.92% 12.74%
$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 65/35 S&P 500 $237,239 PortfolioValue $0 $627,922 Impact of a 5% Withdrawal Source: Morningstar Direct 2019. Hypothetical value of $500000 invested on January 1, 2000 and kept invested through December 31, 2018. Withdraw is 5% of initial hypothetical value ($25,000 of initial $500,000 starting value) taken out at start of each year, growing by 3% per year. Allocation is 100% S&P 500 TR, and 65/35 Mix represented by: 2% (Cash), 16% (DFA One Year Fixed Income DFIHX), 17% (DFA 5 Year Global DFGBX), 15% (DFA US Core Equity 1 DFEOX), 12% (DFA US Large Cap Value DFLVX), 8% (DFA US Small Cap DFSTX), 4% (DFA REIT DFREX), 14% (DFA Intl Value DFIVX), 7% (DFA Intl Small Cap DFISX), 5% (DFA Emerging Markets Value DFEVX). The performance data quoted represents past performance. Past performance does not guarantee future results and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Indexes are unmanaged baskets of securities that are not available for direct investment by investors. Index performance does not reflect the expenses associated with the management of an actual portfolio. Portfolio returns are the weighted average returns of the respective funds, rebalanced annually. Actual rebalancing may be different. The portfolio allocations are based on a Loring Ward model portfolio, which may not be suitable for all investors. It may not reflect the impact material economic and market factors might have had on decision making if clients’ money were actually being managed at that time. The performance quoted reflects the reinvestment of dividends and capital gains distributions. Portfolio performance does not reflect the deduction of any fees charged by an independent investment advisor or other service provider to an individual account. Such fees, if taken into consideration, will reduce the performance quoted above.
1 & 30 = ?
1 & 30 = ? Make sure you have the highest probability of capturing market returns
QUESTIONS?
Standardized Performance Data and Disclosures U.S. Large Cap: DFA US Core Equity 1, US Fund Large Blend, Russell 3000 USD Index. U.S. Large Value: DFA US Large Cap Value, US OE Large Value, Russell 1000 Value Index. U.S. Small: DFA US Small Cap, US Fund Small Blend, Russell 2000 Index. 5-Year Global Fixed: DFA Five-Year Global Fixed-Income, US Fund World Bond, Citigroup World Government Bond Index 1-5 Years (hedged). International Large Value: DFA International Value, US Fund Foreign Large Value, MSCI World ex US Value Index Morningstar categories are based on Morningstar’s methodology which classifies funds based on their investment styles, market capitalization and asset mix as measured by their underlying portfolio holdings over the past three years. Dimensional Fund Advisors is an investment advisor registered with the Securities and Exchange Commission and is unaffiliated with BAM Advisor Services LLC d/b/a Loring Ward. Consider the investment objectives, risks, charges and expenses of the funds listed carefully before investing. The prospectus and if available, summary prospectus, contain this and other information about the funds. To obtain a DFA Funds prospectus, summary prospectus, additional information about the DFA Funds, or performance data current to the most recent month-end, please call Dimensional Fund Advisors collect at 512-306-7400; or visit www.dimensional.com. Please read the prospectus and summary prospectus carefully before investing.
Standardized Performance Data and Disclosures Name Prospectus Gross Expense Ratio (%) 3-Month Return (%) 1-Year Return (%) 5-Year Return (%) 10-Year Return (%) Total Ret Inception (Qtr-End) (%) Inception Date ICE BofAML 1-3Y US Corp&Govt TR USD 1.17 1.63 1.04 1.56 4.71 6/30/86 FTSE WGBI 1-5 Yr Hdg USD 1.53 2.12 1.53 1.69 5.27 12/31/84 DFA Emerging Markets Value I 0.54 -7.17 -11.93 1.85 8.19 9.59 4/1/98 DFA Five-Year Global Fixed-Income I 0.27 1.24 1.68 1.95 2.80 5.11 11/6/90 DFA International Small Company I 0.53 -16.54 -19.42 1.96 9.53 6.31 9/30/96 DFA International Value I 0.43 -14.63 -17.49 -0.35 6.11 5.67 2/15/94 DFA One-Year Fixed-Income I 0.17 0.78 1.87 0.84 0.92 4.54 7/25/83 DFA Real Estate Securities I 0.18 -5.15 -2.99 8.51 12.41 9.55 1/5/93 DFA US Core Equity 1 I 0.19 -15.94 -7.79 6.89 13.19 7.65 9/15/05 DFA US Large Cap Value I 0.27 -14.72 -11.65 5.83 13.17 9.60 2/19/93 DFA US Small Cap I 0.37 -20.15 -13.13 3.87 13.39 9.79 3/19/92 DJ US Select REIT TR USD -6.61 -4.22 7.89 12.05 8.71 12/31/86 Loring Ward Global Moderate DFA 0.30 -9.47 -8.11 2.49 7.08 5.87 10/1/96 MSCI EM Value NR USD -6.75 -10.74 0.51 6.99 9.36 12/29/00 MSCI World Ex USA Small Cap NR USD -16.16 -18.07 2.25 10.06 7.41 12/29/00
Standardized Performance Data and Disclosures Data as of 12/31/18 The performance data quoted represents past performance. Past performance does not guarantee future results and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. All Investing involves risks, including the loss of principal. Portfolio returns are the weighted average returns of the respective funds, rebalanced annually. Actual rebalancing may be different. The portfolio allocations are based on a Loring Ward model portfolio, which may not be suitable for all investors. It may not reflect the impact material economic and market factors might have had on decision making if clients’ money were actually being managed at that time. The performance quoted reflects the reinvestment of dividends and capital gains distributions. Portfolio returns are after fund’s internal expenses and Loring Ward’s max investment management fee of 0.90% through April 1, 2017, 0.65% thereafter. Management fee may be lower depending on the assets under management. Portfolio performance does not reflect the deduction of any fees charged by an independent investment advisor or other service provider to an individual account. Such fees, if taken into consideration, will reduce the performance quoted above. The model performance information reflects various allocation changes made over time. Therefore the underlying mutual funds used in calculating the portfolio performance may not represent the trailing returns of portfolios and/or the mutual funds currently available. Name 3-Month Return (%) 1-Year Return (%) 5-Year Return (%) 10-Year Return (%) Total Ret Inception (Qtr-End) (%) Inception Date MSCI World Ex USA Value NR USD -12.05 -15.06 -0.73 5.69 10.47 12/31/74 Russell 1000 Value TR USD -11.72 -8.27 5.95 11.18 11.66 12/31/78 Russell 2000 TR USD -20.20 -11.01 4.41 11.97 11.09 12/31/78 Russell 3000 TR USD -14.30 -5.24 7.91 13.18 11.48 12/31/78 S&P 500 TR USD(1936) -13.52 -4.38 8.49 13.12 10.36 3/31/36 US Fund Foreign Large Value -12.36 -15.38 -0.63 5.19 8.13 6/1/81 US Fund Large Blend -13.54 -6.24 6.28 11.43 8.61 7/1/24 US Fund Large Value -12.51 -8.60 5.13 10.45 9.14 5/1/31 US Fund Small Blend -19.39 -12.73 3.06 11.35 8.27 6/1/56 US Fund World Bond 0.28 -1.41 1.29 3.41 7.36 2/1/81
Data Appendix Poor Track Record for Active Managers Percentage of Active Funds that Outperformed their Index 2009 – 2018 Source: Standard & Poor’s Indices Versus Active Funds Scorecard (SPIVA), 2019. Index used for comparison: U.S. Stocks — The S&P 1500 Index: The S&P Composite 1500® combines three leading indices, the S&P 500®, the S&P MidCap 400®, and the S&P SmallCap 600® to cover approximately 90% of the U.S. market capitalization. It is designed for investors seeking to replicate the performance of the U.S. equity market or benchmark against a representative universe of tradable stocks. Emerging Stocks — The S&P/IFCI Composite Index: The S&P/IFCI is a liquid and investable subset of the S&P Emerging BMI, with the addition of South Korea. While the S&P Global BMI and S&P Frontier BMI are designed as comprehensive benchmark indices, the S&P/IFCI indices are designed to be sufficiently investable to support index tracking portfolios. The S&P/IFCI has a long and established history going back to 1988. International Stocks— The S&P 700 Index: The S&P 700 measures the non-U.S. component of the global equity market through an index that is designed to be highly liquid and efficient to replicate. The index covers all regions included in the S&P Global 1200 except for the U.S., which is represented by the S&P 500®. U.S. Bonds — Government Short, Barclays 1-3 Year Treasury Bond Index: The index measures the performance of U.S. Treasury securities that have a remaining maturity of at least one year and less than three years. Global Bonds — Global Income Funds, Barclays Global Aggregate Index: The Barclays Global Aggregate Index is a flagship measure of global investment-grade debt from twenty-four different local currency markets. This multi-currency benchmark includes fixed-rate treasury, government-related, corporate and securitized bonds from both developed and emerging markets issuers. Outperformance is based upon equal weight fund counts.
The principals of Capital Associates Wealth Management, as individual financial advisers with Eagle Strategies LLC, a Registered Investment Adviser, offer their clients the services of Loring Ward, third party money manager available on Eagle Strategies Investment Management platform. Capital Associates Wealth Management, Eagle Strategies and Loring Ward are independently owned and operated. LWI Financial Inc. (“Loring Ward”) is an investment adviser registered with the Securities and Exchange Commission. Securities transactions are offered through its affiliate, Loring Ward Securities Inc., member FINRA/SIPC. B 16-020 (4/18) Capital Associates 6901 Rockledge Drive, Suite 500 Bethesda, Maryland 20817 (301) 581.4108 info@capitalassoc.net Rob Ugiansky robert@capitalassoc.net (800) 601.5281 Mitchell Katz mkatz@capitalassoc.net (800) 601.5281 http://www.capitalassoc.net

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New perspectives on asset class investing

  • 1.
    © 2019 BAMAdvisor Services LLC d/b/a Loring Ward (“Loring Ward”). All rights reserved. R 19-102 NEW PERSPECTIVES ON ASSET CLASS INVESTING
  • 2.
    Investing Starts witha Plan People invest their money to reach a goal Creating a plan clarifies those goals ?$
  • 3.
    $ Investing Starts witha Plan Primary Objective: Don’t run out of money ?$
  • 4.
    Financial Planning Software Forillustrative purposes only. Past performance does not guarantee future results and there is no guarantee that the strategies set forth in this presentation will achieve their intended objectives. Based on historical market index return data and realistic expectations
  • 5.
    Historical Long-Term Rateof Return Past performance does not guarantee future results. See appendix for additional information. 6-11%
  • 6.
    Thousands of InvestmentOptions Passive
  • 7.
    You Have TwoChoices Diversification neither assures a profit nor guarantees against loss in a declining market. Active Stock Picking Market Timing Passive Diversified group of securities Tax efficiency
  • 8.
    Poor Track Recordfor Active Managers Source: Standard & Poor’s Indices Versus Active Funds Scorecard (SPIVA) 2019. Index used for comparison: U.S. Stocks — S&P 1500 Index; Emerging Stocks — S&P/IFCI Composite; International Stocks— S&P 700 Index; Short-Term U.S. Gov’t Bonds — Barclays US Government (1-3 Year), Global Bonds — Barclays Global Aggregate. Outperformance is based upon equal weight fund counts. Index returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. Past performance is not an indication of future results. More recent performance may alter these assessments or outcomes. Percentage of Active Funds that Outperformed Their Index 2009 - 2018 U.S. Stocks Emerging Stocks International Stocks Short-Term U.S. Gov’t Bonds Global Bonds 0% 20% 40% 60% 80% 100% 16% 12% 19% 32% 53%
  • 9.
    You Have TwoChoices Active Stock Picking Market Timing Passive Diversified group of securities Tax efficiency Diversification neither assures a profit nor guarantees against loss in a declining market.
  • 10.
    Thousands of InvestmentOptions Passive
  • 11.
    You Have TwoMore Choices Index investing targets a specific set of securities at specific weights as designated by an index provider, with the risks associated with that particular part of the market. Asset class investing targets a specific part of the market by maintaining consistent exposure to securities which fit the targeted characteristics but are not beholden to a specific list of securities provided by an index provider, with risks associated with that particular part of the market. Passive Index Asset Class Diversified group of securities Tax efficiency Diversified group of securities Tax efficiency Diversified group of securities Tax efficiency Precision
  • 12.
  • 13.
    You Have TwoMore Choices Index investing targets a specific set of securities at specific weights as designated by an index provider, with the risks associated with that particular part of the market. Asset class investing targets a specific part of the market by maintaining consistent exposure to securities which fit the targeted characteristics but are not beholden to a specific list of securities provided by an index provider, with risks associated with that particular part of the market. Passive Index Diversified group of securities Tax efficiency Asset Class Diversified group of securities Tax efficiency Precision Diversified group of securities Tax efficiency Precision Flexibility
  • 14.
  • 15.
    Asset Class Diversified groupof securities Tax efficiency Precision Flexibility Diversified group of securities Tax efficiency Precision Flexibility Factors of return You Have Two More Choices Index investing targets a specific set of securities at specific weights as designated by an index provider, with the risks associated with that particular part of the market. Asset class investing targets a specific part of the market by maintaining consistent exposure to securities which fit the targeted characteristics but are not beholden to a specific list of securities provided by an index provider, with risks associated with that particular part of the market. Passive Index Diversified group of securities Tax efficiency
  • 16.
  • 17.
    Are All Passivethe Same? Diversification Tax Efficiency Precision Flexibility Factors of Return
  • 18.
    THERE MAY BEA BETTER ALTERNATIVE TO INDEX RETURNS
  • 19.
    Asset Class FundReturns Annualized Returns % 2009 – 2018. See slides 27-29 for complete data. Performance data shown represents past performance and is no guarantee of future results. Current performance may be higher or lower than the performance shown. The indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. See “Appendix: Standardized Performance Data & Disclosures” to obtain complete information on performance, investment objectives, risks, advisory fees, and expenses of Dimensional’s funds. Sources: Dimensional Fund Advisors for Dimensional funds; Mutual fund universe statistical data provided by Morningstar, Inc.; MSCI data copyright MSCI 2019, all rights reserved. U.S. Large Cap U.S. Large Value U.S. Small Cap 5-Year Global Fixed International Large Value 0% 2% 4% 6% 8% 10% Benchmark Morningstar Category Dimensional Funds 12% 14% 13.19 11.43 13.18 13.17 10.45 11.18 13.39 11.35 11.97 2.80 3.41 1.69 6.11 5.19 5.69
  • 20.
    Asset Class InvestingCan Offer 1. Lower overall costs 2. Improved tax efficiency 3. Increased diversification 4. Better risk exposure to an asset class 5. Potentially better long-term performance
  • 21.
    2% 65/35 Portfolio 17% 16% 15% 12% 14% 5% 4% 8% 7% Two Portfolios… 100%S&P 500 Index Cash & Cash Alternatives Global Fixed Income Short-Term Fixed Income 1-3 Years U.S. Market U.S. Large Value U.S. Small Neutral International Large Value International Small Neutral Emerging Markets REITs
  • 22.
    Let’s Look atWhat Happened Since 2000… Source: Morningstar Direct 2019. Allocation is 100% S&P 500 TR, and 65/35 Mix represented by: 2% (Cash), 16% (DFA One Year Fixed Income DFIHX), 17% (DFA 5 Year Global DFGBX), 15% (DFA US Core Equity 1 DFEOX), 12% (DFA US Large Cap Value DFLVX), 8% (DFA US Small Cap DFSTX), 4% (DFA REIT DFREX), 14% (DFA Intl Value DFIVX), 7% (DFA Intl Small Cap DFISX), 5% (DFA Emerging Markets Value DFEVX). Allocation mix return is the weighted average return of the respective funds, rebalanced annually. The performance data quoted represents past performance. Past performance does not guarantee future results and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Index performance does not reflect the expenses associated with the management of an actual portfolio. Portfolio performance does not reflect the deduction of any fees charged by an independent investment advisor or other service provider to an individual account. Such fees, if taken into consideration, will reduce the performance quoted above. *Standard Deviation is a statistical measurement that sheds light on historical volatility. Allocation Annualized Return (2000-2018) Standard Deviation* (2000 – 2018) S&P 500 Index 4.86% 17.65% 65/35 Allocation Mix 4.92% 12.74%
  • 23.
    $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 1999 2000 20012002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 65/35 S&P 500 $237,239 PortfolioValue $0 $627,922 Impact of a 5% Withdrawal Source: Morningstar Direct 2019. Hypothetical value of $500000 invested on January 1, 2000 and kept invested through December 31, 2018. Withdraw is 5% of initial hypothetical value ($25,000 of initial $500,000 starting value) taken out at start of each year, growing by 3% per year. Allocation is 100% S&P 500 TR, and 65/35 Mix represented by: 2% (Cash), 16% (DFA One Year Fixed Income DFIHX), 17% (DFA 5 Year Global DFGBX), 15% (DFA US Core Equity 1 DFEOX), 12% (DFA US Large Cap Value DFLVX), 8% (DFA US Small Cap DFSTX), 4% (DFA REIT DFREX), 14% (DFA Intl Value DFIVX), 7% (DFA Intl Small Cap DFISX), 5% (DFA Emerging Markets Value DFEVX). The performance data quoted represents past performance. Past performance does not guarantee future results and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Indexes are unmanaged baskets of securities that are not available for direct investment by investors. Index performance does not reflect the expenses associated with the management of an actual portfolio. Portfolio returns are the weighted average returns of the respective funds, rebalanced annually. Actual rebalancing may be different. The portfolio allocations are based on a Loring Ward model portfolio, which may not be suitable for all investors. It may not reflect the impact material economic and market factors might have had on decision making if clients’ money were actually being managed at that time. The performance quoted reflects the reinvestment of dividends and capital gains distributions. Portfolio performance does not reflect the deduction of any fees charged by an independent investment advisor or other service provider to an individual account. Such fees, if taken into consideration, will reduce the performance quoted above.
  • 24.
    1 & 30= ?
  • 25.
    1 & 30= ? Make sure you have the highest probability of capturing market returns
  • 26.
  • 27.
    Standardized Performance Dataand Disclosures U.S. Large Cap: DFA US Core Equity 1, US Fund Large Blend, Russell 3000 USD Index. U.S. Large Value: DFA US Large Cap Value, US OE Large Value, Russell 1000 Value Index. U.S. Small: DFA US Small Cap, US Fund Small Blend, Russell 2000 Index. 5-Year Global Fixed: DFA Five-Year Global Fixed-Income, US Fund World Bond, Citigroup World Government Bond Index 1-5 Years (hedged). International Large Value: DFA International Value, US Fund Foreign Large Value, MSCI World ex US Value Index Morningstar categories are based on Morningstar’s methodology which classifies funds based on their investment styles, market capitalization and asset mix as measured by their underlying portfolio holdings over the past three years. Dimensional Fund Advisors is an investment advisor registered with the Securities and Exchange Commission and is unaffiliated with BAM Advisor Services LLC d/b/a Loring Ward. Consider the investment objectives, risks, charges and expenses of the funds listed carefully before investing. The prospectus and if available, summary prospectus, contain this and other information about the funds. To obtain a DFA Funds prospectus, summary prospectus, additional information about the DFA Funds, or performance data current to the most recent month-end, please call Dimensional Fund Advisors collect at 512-306-7400; or visit www.dimensional.com. Please read the prospectus and summary prospectus carefully before investing.
  • 28.
    Standardized Performance Dataand Disclosures Name Prospectus Gross Expense Ratio (%) 3-Month Return (%) 1-Year Return (%) 5-Year Return (%) 10-Year Return (%) Total Ret Inception (Qtr-End) (%) Inception Date ICE BofAML 1-3Y US Corp&Govt TR USD 1.17 1.63 1.04 1.56 4.71 6/30/86 FTSE WGBI 1-5 Yr Hdg USD 1.53 2.12 1.53 1.69 5.27 12/31/84 DFA Emerging Markets Value I 0.54 -7.17 -11.93 1.85 8.19 9.59 4/1/98 DFA Five-Year Global Fixed-Income I 0.27 1.24 1.68 1.95 2.80 5.11 11/6/90 DFA International Small Company I 0.53 -16.54 -19.42 1.96 9.53 6.31 9/30/96 DFA International Value I 0.43 -14.63 -17.49 -0.35 6.11 5.67 2/15/94 DFA One-Year Fixed-Income I 0.17 0.78 1.87 0.84 0.92 4.54 7/25/83 DFA Real Estate Securities I 0.18 -5.15 -2.99 8.51 12.41 9.55 1/5/93 DFA US Core Equity 1 I 0.19 -15.94 -7.79 6.89 13.19 7.65 9/15/05 DFA US Large Cap Value I 0.27 -14.72 -11.65 5.83 13.17 9.60 2/19/93 DFA US Small Cap I 0.37 -20.15 -13.13 3.87 13.39 9.79 3/19/92 DJ US Select REIT TR USD -6.61 -4.22 7.89 12.05 8.71 12/31/86 Loring Ward Global Moderate DFA 0.30 -9.47 -8.11 2.49 7.08 5.87 10/1/96 MSCI EM Value NR USD -6.75 -10.74 0.51 6.99 9.36 12/29/00 MSCI World Ex USA Small Cap NR USD -16.16 -18.07 2.25 10.06 7.41 12/29/00
  • 29.
    Standardized Performance Dataand Disclosures Data as of 12/31/18 The performance data quoted represents past performance. Past performance does not guarantee future results and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. All Investing involves risks, including the loss of principal. Portfolio returns are the weighted average returns of the respective funds, rebalanced annually. Actual rebalancing may be different. The portfolio allocations are based on a Loring Ward model portfolio, which may not be suitable for all investors. It may not reflect the impact material economic and market factors might have had on decision making if clients’ money were actually being managed at that time. The performance quoted reflects the reinvestment of dividends and capital gains distributions. Portfolio returns are after fund’s internal expenses and Loring Ward’s max investment management fee of 0.90% through April 1, 2017, 0.65% thereafter. Management fee may be lower depending on the assets under management. Portfolio performance does not reflect the deduction of any fees charged by an independent investment advisor or other service provider to an individual account. Such fees, if taken into consideration, will reduce the performance quoted above. The model performance information reflects various allocation changes made over time. Therefore the underlying mutual funds used in calculating the portfolio performance may not represent the trailing returns of portfolios and/or the mutual funds currently available. Name 3-Month Return (%) 1-Year Return (%) 5-Year Return (%) 10-Year Return (%) Total Ret Inception (Qtr-End) (%) Inception Date MSCI World Ex USA Value NR USD -12.05 -15.06 -0.73 5.69 10.47 12/31/74 Russell 1000 Value TR USD -11.72 -8.27 5.95 11.18 11.66 12/31/78 Russell 2000 TR USD -20.20 -11.01 4.41 11.97 11.09 12/31/78 Russell 3000 TR USD -14.30 -5.24 7.91 13.18 11.48 12/31/78 S&P 500 TR USD(1936) -13.52 -4.38 8.49 13.12 10.36 3/31/36 US Fund Foreign Large Value -12.36 -15.38 -0.63 5.19 8.13 6/1/81 US Fund Large Blend -13.54 -6.24 6.28 11.43 8.61 7/1/24 US Fund Large Value -12.51 -8.60 5.13 10.45 9.14 5/1/31 US Fund Small Blend -19.39 -12.73 3.06 11.35 8.27 6/1/56 US Fund World Bond 0.28 -1.41 1.29 3.41 7.36 2/1/81
  • 30.
    Data Appendix Poor TrackRecord for Active Managers Percentage of Active Funds that Outperformed their Index 2009 – 2018 Source: Standard & Poor’s Indices Versus Active Funds Scorecard (SPIVA), 2019. Index used for comparison: U.S. Stocks — The S&P 1500 Index: The S&P Composite 1500® combines three leading indices, the S&P 500®, the S&P MidCap 400®, and the S&P SmallCap 600® to cover approximately 90% of the U.S. market capitalization. It is designed for investors seeking to replicate the performance of the U.S. equity market or benchmark against a representative universe of tradable stocks. Emerging Stocks — The S&P/IFCI Composite Index: The S&P/IFCI is a liquid and investable subset of the S&P Emerging BMI, with the addition of South Korea. While the S&P Global BMI and S&P Frontier BMI are designed as comprehensive benchmark indices, the S&P/IFCI indices are designed to be sufficiently investable to support index tracking portfolios. The S&P/IFCI has a long and established history going back to 1988. International Stocks— The S&P 700 Index: The S&P 700 measures the non-U.S. component of the global equity market through an index that is designed to be highly liquid and efficient to replicate. The index covers all regions included in the S&P Global 1200 except for the U.S., which is represented by the S&P 500®. U.S. Bonds — Government Short, Barclays 1-3 Year Treasury Bond Index: The index measures the performance of U.S. Treasury securities that have a remaining maturity of at least one year and less than three years. Global Bonds — Global Income Funds, Barclays Global Aggregate Index: The Barclays Global Aggregate Index is a flagship measure of global investment-grade debt from twenty-four different local currency markets. This multi-currency benchmark includes fixed-rate treasury, government-related, corporate and securitized bonds from both developed and emerging markets issuers. Outperformance is based upon equal weight fund counts.
  • 31.
    The principals ofCapital Associates Wealth Management, as individual financial advisers with Eagle Strategies LLC, a Registered Investment Adviser, offer their clients the services of Loring Ward, third party money manager available on Eagle Strategies Investment Management platform. Capital Associates Wealth Management, Eagle Strategies and Loring Ward are independently owned and operated. LWI Financial Inc. (“Loring Ward”) is an investment adviser registered with the Securities and Exchange Commission. Securities transactions are offered through its affiliate, Loring Ward Securities Inc., member FINRA/SIPC. B 16-020 (4/18) Capital Associates 6901 Rockledge Drive, Suite 500 Bethesda, Maryland 20817 (301) 581.4108 info@capitalassoc.net Rob Ugiansky robert@capitalassoc.net (800) 601.5281 Mitchell Katz mkatz@capitalassoc.net (800) 601.5281 http://www.capitalassoc.net