IFA PERFORMANCE REPORT Please read this disclosure before viewing the sample IFA Performance Report • This sample document is provided for the sole purpose of illustrating the type of report that clients receive from IFA. Although the report is from one of our clients with all identifying information removed, it should not be construed as an advertisement. It does not reflect the performance of any accounts other than the one held by this particular client. This report was chosen for illustrative purposes for the following reasons: O IFA typically builds one portfolio across the total number of accounts that a client has, which minimizes transaction costs while attempting to maximize after-tax returns. However, to explain the client web site, we wanted to use an easy to understand example. This portfolio consists of one account and has had very few cash flows so it was easy to understand. O Also, unlike the majority of IFA’s accounts, this account happened to be opened on the first of the month, which is the date on which index performance data is calculated. So for purposes of the example, the dates of the actual account performance are in conformity with the dates of the benchmarks, which also are calculated from the first of the month. • This sample report reflects the deduction of IFA’s investment advisory fees at a level commensurate with a portfolio of this size. Advisory fees charged depend upon the size of the portfolio. For an estimate of the advisory fees you would pay, please ask for IFA’s Form ADV, Part 2, which contains a fee schedule. Along with advisory fees, all client-paid expenses, except for brokerage commissions, have been deducted prior to calculating the return on the client’s investment. • These results include the reinvestment of dividends, capital gains, and other earnings. • Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended by the adviser), or product made reference to directly or indirectly, will be profitable or equal to past performance levels. • All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions or withdrawals may materially alter the performance, strategy and results of your portfolio. • Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio. • Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark. • This sample report utilizes the S&P 500, Russell 2000, and MSCI EAFE for comparison purposes, because they are standard industry benchmarks. These are not the only indexes that are used as benchmarks for measuring the performance of a portfolio. We also show for comparative risk and return purposes one of IFA’s INDEX PORTFOLIOS. An IFA INDEX PORTFOLIO, the S&P 500, Russell 2000, and MSCI EAFE are shown for comparative purposes in all of our client performance reporting.
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IFA PERFORMANCE REPORTPlease read this disclosure before viewing the sample IFA Performance Report• This sample document is provided for the sole purpose of illustrating the type of report that clients receive from IFA. Although the report
is from one of our clients with all identifying information removed, it should not be construed as an advertisement. It does not reflect the performance of any accounts other than the one held by this particular client. This report was chosen for illustrative purposes for the following reasons:
O IFA typically builds one portfolio across the total number of accounts that a client has, which minimizes transaction costs while attempting to maximize after-tax returns. However, to explain the client web site, we wanted to use an easy to understand example. This portfolio consists of one account and has had very few cash flows so it was easy to understand.
O Also, unlike the majority of IFA’s accounts, this account happened to be opened on the first of the month, which is the date on which index performance data is calculated. So for purposes of the example, the dates of the actual account performance are in conformity with the dates of the benchmarks, which also are calculated from the first of the month.
• This sample report reflects the deduction of IFA’s investment advisory fees at a level commensurate with a portfolio of this size. Advisory fees charged depend upon the size of the portfolio. For an estimate of the advisory fees you would pay, please ask for IFA’s Form ADV, Part 2, which contains a fee schedule. Along with advisory fees, all client-paid expenses, except for brokerage commissions, have been deducted prior to calculating the return on the client’s investment.
• These results include the reinvestment of dividends, capital gains, and other earnings.• Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future
performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended by the adviser), or product made reference to directly or indirectly, will be profitable or equal to past performance levels.
• All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions or withdrawals may materially alter the performance, strategy and results of your portfolio.
• Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio.
• Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark.
• This sample report utilizes the S&P 500, Russell 2000, and MSCI EAFE for comparison purposes, because they are standard industry benchmarks. These are not the only indexes that are used as benchmarks for measuring the performance of a portfolio. We also show for comparative risk and return purposes one of IFA’s INDEX PORTFOLIOS. An IFA INDEX PORTFOLIO, the S&P 500, Russell 2000, and MSCI EAFE are shown for comparative purposes in all of our client performance reporting.
Period Ending: 12/31/2017 Advisor: Sample Advisor
Report for Joe Sample
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Performance From Inception 02/03/2010 - 12/31/2017 Net of Fees
Total Gain Total Return Annualized Return
$581,256.79 Dollar-Weighted Return 66.41 % 6.65 %
Time-Weighted Return 65.32 % 6.56 %
Benchmark IFA Index Portfolio 45* 53.75 % 5.59 %
*See Notes and Disclosures for more informationThe IFA Performance Report provides information on all yourinvestments held in the account(s) referenced above. IFAmanages your assets based on your investment objectives andgoals communicated to IFA by you. Therefore it is importantfor you to inform IFA promptly anytime there is a change toyour overall objectives or financial situation. Past performanceis not indicative of future results.
IFA Index Portfolio 48 Prepared for Joe SampleQuarter to Date (10/01/2017 - 12/31/2017) Year to Date (1/1/2017 - 12/31/2017)
Opening Value $1,240,325.44 $1,191,789.60
Additions $0.00 $0.00
Withdrawals ($27,086.00) ($54,172.25)
Interest $0.00 $0.00
Dividends $9,379.63 $20,295.21
Gains, Losses, and Expenses $24,338.57 $96,155.05
Fees for Period ($2,459.20) ($9,569.17)
Closing Value $1,244,498.44 $1,244,498.44
Total Gain for Period $31,259.00 $106,881.09
Dollar-Weighted Return 2.54 % 9.11 %
Time-Weighted Return 2.54 % 9.11 %
Benchmarks Quarter to Date (10/01/2017 - 12/31/2017) Year to Date (1/1/2017 - 12/31/2017)
Benchmark IFA Index Portfolio 45* 2.28 % 8.26 %
S&P 500 Composite Total Return* 6.64 % 21.83 %
Russell 2000 Total Return* 3.34 % 14.65 %
MSCI EAFE Total Return* 4.23 % 25.03 %
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Performance Overview
Account: Joe Sample, IRA - 12345678
US Large Company
Weight ofTotal Portfolio
Description Symbol Units Price Market ValueAs of 12/31/2017
5.54 % DFA US Large Cap Value DFLVX 1,763.192 $39.12 $68,976.07
4.69 % DFA US Large Company Institutional Idx DFUSX 2,820.326 $20.71 $58,408.95
1.22 % Spartan US Eqty Indx Fid Advantage Class FUSVX 162.407 $93.45 $15,176.93
US Small Company
Weight ofTotal Portfolio
Description Symbol Units Price Market ValueAs of 12/31/2017
8.90 % DFA US Small Cap DFSTX 3,083.478 $35.94 $110,820.20
10.91 % DFA US Targeted Value DFFVX 5,453.819 $24.89 $135,745.55
REITs
Weight ofTotal Portfolio
Description Symbol Units Price Market ValueAs of 12/31/2017
3.29 % DFA Global Real Estate DFGEX 3,736.250 $10.95 $40,911.94
International
Weight ofTotal Portfolio
Description Symbol Units Price Market ValueAs of 12/31/2017
2.46 % DFA International Small Cap Value DISVX 1,333.898 $22.97 $30,639.64
3.94 % DFA International Small Company DFISX 2,306.418 $21.27 $49,057.51
3.06 % DFA International Value DFIVX 1,859.526 $20.49 $38,101.69
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Current Positions
Account: Joe Sample, IRA - 12345678
Emerging Markets
Weight ofTotal Portfolio
Description Symbol Units Price Market ValueAs of 12/31/2017
3.14 % DFA Emerging Markets Small Cap DEMSX 1,636.290 $23.87 $39,058.24
2.73 % DFA Emerging Markets Value DFEVX 1,089.105 $31.22 $34,001.86
Fixed Income
Weight ofTotal Portfolio
Description Symbol Units Price Market ValueAs of 12/31/2017
11.18 % DFA Five-Year Global Fixed Income DFGBX 12,796.734 $10.87 $139,100.50
12.29 % DFA Short Term Government DFFGX 14,536.108 $10.52 $152,919.86
12.64 % DFA One-Year Fixed Income DFIHX 15,321.042 $10.27 $157,347.10
11.71 % DFA Two-Year Global Fixed Income DFGFX 14,743.951 $9.88 $145,670.24
Cash
Weight ofTotal Portfolio
Description Symbol Units Price Market ValueAs of 12/31/2017
0.29 % Fidelity Cash Reserves FDRXX $3,594.10
0.00 % Schwab Money Market Fund SWMXX ($44.61)
Account Total: $1,244,498.44
Portfolio Total: $1,244,498.44
The IFA Performance Report provides information on all your investments held in the account(s) referenced above. IFA manages your assets based on your investment objectives and goals communicated to IFA byyou. Therefore it is important for you to inform IFA promptly anytime there is a change to your overall objectives or financial situation. Past performance is not indicative of future results.
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Current Positions
IFA Index Portfolio 48 Prepared for Joe SampleAsset Class Current Allocation Target Allocation Percent Variance Current Value Target Value Difference
US Large Company 11.46 % 11.52 % -0.06 % $142,619.52 $143,366.22 ($746.70)
US Small Company 19.81 % 19.20 % 0.61 % $246,535.14 $238,943.70 $7,591.44
Total 100.00 % 100.00 % $1,244,498.44 $1,244,498.44
Value as of 12/31/2017
The IFA Performance Report provides information on all your investments held in the account(s) referenced above. IFA manages your assets based on your investment objectives and goals communicated to IFA byyou. Therefore it is important for you to inform IFA promptly anytime there is a change to your overall objectives or financial situation. Past performance is not indicative of future results.
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Rebalance Report
Time-Weighted return removes the impact of contributions and withdrawals to enable accurate comparisons to benchmarks.Dollar-Weighted return incorporates both timing and amount of your contributions and withdrawals. Time-Weighted return measures IFA's performance as your investmentadvisor, while the Dollar-Weighted return measures IFA's performance that may be affected by factors outside our control, such as your contributions and withdrawals
When the returns of the performance period either begin or end in the middle of a month, the following methodology is used to estimate the returns of the IFA IndexPortfolios. The return for a partial month is calculated as the return for the whole month multiplied by the number of days covered in the month divided by the total numberof days in the month. If the ending month of the performance period is the month that we are currently in (i.e., returns do not yet exist for the whole month), then the returnsshown are to the end of the prior month. The S&P 500 Index and the Russell 2000 Index use daily returns. The MSCI EAFE Index uses prorated returns up to Jan 1, 1999and daily returns thereafter.
Clients are urged to compare the ending balance on the performance report prepared by IFA with the applicable account statement sent by client's custodian. If client noticesany discrepancies between the two statements, client should promptly contact IFA.
IFA manages your investments based on the answers you agreed to in IFA's risk capacity survey. The survey measures five dimensions of your risk capacity, including yourinvestment time horizon, income, net worth, attitude toward risk and investment knowledge. Therefore, it is important for you to inform IFA promptly if there is asubstantive change to your risk capacity, including your financial situation. In such a case, you should take the risk capacity survey again at www.ifarcs.com. IFA willassume your goals and objectives as an investor are to maximize your after tax return, given your risk capacity. If your goals or objectives are different or have changed,please let your advisor know immediately.
The S&P 500 Total Return Index is widely regarded as a gauge of the large cap U.S. equities market. The index includes 500 leading companies in leading industries of theU.S. economy capturing about 75% coverage of U.S. equities. The Russell 2000 Total Return Index is widely regarded as a gauge of the small cap U.S. equities market. Theindex includes 2000 smallest companies within the Russell 3000 Index representing approximately 10% of the total market cap of that index. The MSCI EAFE acronymstands for Morgan Stanley Capital International Europe, Australasia, and Far East. The MSCI EAFE Total Return Index is a benchmark of large-cap developed marketstocks that are domiciled outside the U.S. and Canada. Unless otherwise noted, index returns reflect the reinvestment of income dividends and capital gains, if any, but donot reflect fees, brokerage commissions or other expenses of investing. Investors may not make direct investments into any index.
In September 2013, IFA introduced the New IFA Index Portfolios which use the same equity allocation as the Original IFA Index Portfolio 100. IFA Index Portfolio 100 washeld the same as it has been since 2000 and became the only 100 percent equity portfolio in the New IFA Index Portfolios. The four fixed income indexes (25% each) remainthe same as they have been since 2000 and will make up the fixed income allocation of all New IFA Index Portfolios in the allocation equal to 100-New Index Portfolio #.The number of each New IFA Index Portfolio now equals the percentage of equities in the New IFA Index Portfolio. For example, the New IFA Index Portfolio 60 is 60%equities and 40% fixed income. For the data series used as benchmarks in the performance reports for clients who are in the New IFA Index Portfolios, the monthly returnsof the Original IFA Index Portfolios (with the same equity percentage allocations) are used through 8/31/2013, and the monthly returns for the New IFA Index Portfolios areused after 8/31/2013. For example, the data for the Benchmark IFA Index Portfolio 60 uses the Original Index Portfolio 50 data through 8/31/2013 and the New IFA IndexPortfolio 60 data thereafter. Please note that full equity Original IFA Index Portfolios from 90-99 have all been replaced with the Original Index Portfolio 100, whichremained the same in the New Index Portfolios. The data series used for Benchmark IFA Index Portfolio 100 are returns for the Original IFA Index Portfolio 90 through8/31/2013 and the New IFA Index Portfolio 100 thereafter. For more information on the conversion from Original to New IFA Index Portfolios, please see:http://www.ifa.com/articles/improved_index_portfolios.aspx. As of 2016, New IFA Index Portfolios are referred to simply as IFA Index Portfolios.
*Since inception fees are available upon request, please contact your Wealth Advisor or Client Service Specialist
