|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Returns are Not Actual, but are Model Results – The returns of the model portfolios do not represent the trading strategies, holdings, or performance of actual accounts, have some intrinsic limitations, and should not be used as the sole basis in forming any investment decisions or strategy. The model portfolios were not designed or managed with a view to accommodating any specific needs, financial circumstances, or investment objectives. The asset allocation strategies and individual ETFs selected for each model may not be suitable for any given investor. Because trades in the model portfolios do not represent actual trading, they may not reflect the impact of significant market and economic factors. Because trades are not actually executed, the resulting prices may not reflect the impact, if any, of certain market factors (such as lack of liquidity or float outstanding), certain events (such as significant corporate announcements), and other factors including market impact and opportunity costs. The closing price data provider changed in 2004.
For consistency in the reporting of performance between various Amerivest models, in June 2008 historical Self-Directed model performance was recalculated using a new assumed initial portfolio value of $100,000 rather than $50,000, which may result in a change in historic performance results due to lower advisory fees.
Charts show the performance of an Amerivest model portfolio with $100,000 invested on 01/01/03. This portfolio was assumed to have been rebalanced every year on January 1, and to have had the Self-Directed Amerivest fee deducted at the end of each quarter. Dividends are also assumed to have been reinvested.
Detailed Assumptions for Model Portfolio Results:
1. Self-Directed Amerivest Service used.
2. The recommendations that a client would have gotten on January 1, 2003 for a $100,000 investment are used.
3. The closing prices at the end of each month are used to calculate the market value of the model portfolio.
4. Dividends are added to cash at the end of each month using ex-date.
5. Interest on cash balance paid (at prevailing rate) to the account at the end of each quarter.
6. Fees (appropriate for portfolio value as provided in the ADV Part II) are paid in advance and are deducted from cash at the beginning of each quarter.
7. Rebalance is performed on the anniversary date each year.
8. No taxes are being considered.
9. TD AMERITRADE commissions are not charged.
2 The benchmark index consists of 3 components, specifically Domestic Equities, International Equities and Fixed Income. The Domestic Equity component is represented by the Russell 3000 Index. The Russell 3000 Index offers investors access to the broad U.S. equity universe representing approximately 98% of the U.S. market. The International Equities component is represented by the MSCI EAFE Index (Europe, Australasia, Far East), the index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. & Canada. The Fixed Income component is represented by Barclays Capital U.S. Aggregate Bond Index which covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The relative weight of each component within the composite benchmark is determined by the corresponding weight of the Amerivest Target Date or Self-Directed Investment Portfolio for which the benchmark is designed, rounded to the nearest multiple of 10%.
Amerivest is an investment advisory service of Amerivest Investment Management, LLC, an SEC-registered investment adviser. Brokerage services provided by TD AMERITRADE, Inc. TD AMERITRADE, Inc. and Amerivest Investment Management, LLC are both wholly owned subsidiaries of TD AMERITRADE Holding Corporation. Amerivest is a trademark of TD AMERITRADE IP Company, Inc.
TD AMERITRADE does not provide tax advice. We suggest that you seek the advice of a tax-planning professional with regard to your personal circumstances.