
FOOTNOTES:
1When IFA Indexes are
shown in IFA iPortfolios™, all returns data
reflects a deduction of 0.9%
annual investment advisory fee, which is the maximum IFA fee. Your
fee may be less depending on assets under management at IFA. Fee reductions can be calculated by selecting Addition in the drop down menu in Section 5, and setting the Percentage amount to the difference from 0.9%. So a fee of 0.8% could be calculated by adding 0.1%. Unless
indicated otherwise, data shown for each individual IFA Index is
shown without a deduction of the IFA advisory fee. We choose this
method because the creation, choice, monitoring and rebalancing of
diversified index portfolios are the services of the independent
investment advisor and at that point the fees are appropriate to
deduct from the whole portfolio returns. Since we accept no fees
from investment product firms, IFA compares index funds based on
net asset value returns, which are net of the mutual fund company
expense ratios only.
The annualized standard deviation number is presented as an approximation by
multiplying the monthly standard deviation by the square root of twelve
(3.464), the number of periods in a year. Note that the standard deviation
computed from annual data may differ materially from this estimate. Returns of
the twenty IFA index portfolios are shown net of IFA and DFA fees, and returns
of the fifteen IFA indexes are shown net of DFA fees only. IFA Indexes have
been constucted net of typical mutual fund fees. Backtested performance is
hypothetical (it does not reflect trading in actual accounts) and is provided
for informational purposes to indicate historical performance had the index
portfolios been available over the relevant period. IFA did not offer the index
portfolios until November 1999. For a complete explanation of backtested
performance, please click and read this button:
.
2After-tax returns are net of federal taxes only, and they exclude the impact of capital gains resulting from liquidation and rebalancing. Where possible, the after-tax returns supplied by DFA for the standard (non-tax-managed) funds are shown. These returns can be materially different from actual after-tax returns experienced by clients with tax-managed funds. The primary purpose of having this data on the returns calculator is to facilitate an estimate of the impact of federal taxes on returns. For periods prior to the existence of the DFA mutual funds, the pre-tax returns of the IFA indexes with an estimated adjustment for the impact of taxes are used. A 35% rate is applied to distributions of interest income and short-term capital gains. A 15% rate is applied to distributions of qualified dividends and long-term capital gains. After-tax returns are not available for the first 11 months of current year, because the majority of the tax impact occurs in December, due to capital gains and dividend distributions.
3Both percentage and dollar amount addition or withdrawals are assumed to occur monthly at the end of each month.
4IFA Index and iPortfolio™ data based on starting value of one, as of Jan
1, 1928.
Sources and Disclosures: ifabt.com, dfaus.com & yahoo.com.
|