Disclosures

Services are limited to investment advice and do not include financial planning, legal advice or tax planning and/or other non-investment related consultation services. No client or prospective client should assume that any information presented and/or made available on this website serves as the receipt of, or substitute for, personalized individual advice from the advisor or any other investment professional. If you have any questions regarding the applicability of any specific issue discussed above to your individual situation, you are encouraged to consult with the professional advisor of your choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request.

Due to various factors, including changing market conditions, content may no longer be reflective of current opinions or positions.

Please remember to contact Quality Asset Management if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Please also advise us if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.

The advisor makes no representations or warranties as to the accuracy, timeliness, suitability, completeness or relevance of any information prepared by any unaffiliated third party, whether linked to the website or incorporated therein. Such information is provided solely for convenience, and all users should be guided accordingly.

Any usage of this web site by investment advisors or other investment professionals is prohibited, unless written notice was given directly from Quality Asset Management, LLC. Any portfolio or strategy presented on this web site does not represent a recommendation.

Performance Data

  1. All returns reflect deduction of QAM advisory fees, based on the tier of 0.96% per year. Actual advisory fees may vary among clients with the same investment strategy for the performance period represented. The adviser’s fee schedules are available in Form ADV Part II, upon request and in the Fees page.
  2. Performance data for periods since the inception of the mutual funds reflects deduction of the mutual funds fees and expenses.  It also reflects actual trading results, as reported by the mutual fund company.
  3. All returns assume reinvestment of dividends and capital gains, and annual rebalancing. Actual rebalancing may be different, resulting in some variation in returns.
  4. The returns reflect transaction fees for the typical account size. For example, annual transaction fees of $100 on an account of size $500,000, would reduce the returns by 0.02% – too small to change the presented performance. For smaller accounts there could be an impact that depends on the account size, but is typically small. See Fees for more information about potential transaction fees.
  5. The returns do not reflect taxes. Taxes depend on the investor’s particular tax situation.
  6. Actual client returns may be materially different and possibly lower than the performance data presented, due to various factors including: use of non-tax-managed mutual funds, different rebalancing frequency and implementation, investment cash flows, possibly different portfolio construction depending on client needs, cash balances, varying advisory fees, varying custodian fees, different timing of fee deduction and other factors. Clients that added more to their investments after big gains underperformed the stated portfolio returns. QAM encourages clients to invest money according to their plan as soon as it is available, to minimize this effect.
  7. The data includes returns for years before QAM’s initial trading in June 2004. For those years the data is given solely to demonstrate historical hypothetical performance, and does not reflect trading in actual accounts. Actual performance of QAM’s portfolios before QAM’s initial trading could be materially lower if they were implemented differently at the time of measurement.
  8. The “Long-Term Component” investment strategy has tax-managed funds, and is used in the typical taxable account. Another version of the strategy with no tax-managed funds is used in some accounts that are not subject to ongoing investment taxes (e.g., IRA and Roth IRA), and its returns are not presented here.
  9. Some investment strategies have been adjusted several times since QAM was established, for two main reasons: (1) based on continued research of their long-term behavior; (2) because of change in fund offerings. The following table shows the performance of the strategy as originally implemented compared to the returns based on the current construction, up to the year of the most recent change.

    Short-Term Component

    Year

    Strategy Returns

    Original

    Current

    2009 3.3% 14.9%
    2008 3.2% -4%
    2007 3.6% 4.1%
    2006 3.4% 3.3%
    2005 2.9% 1%
    2004 2.7% 4.2%

    Long-Term Component

    Year

    Strategy Returns

    Original

    Current

    2009 51.6% 53.3%
    2008 -45.1% -45.7%
    2007 11.5% 14%
    2006 27% 27.7%
    2005 15.6% 20.7%
    2004 25% 30.9%
  10. We compare our stock portfolios to the S&P 500, since the S&P 500 is a widely used benchmark for evaluating stock portfolios.
  11. Past performance does not guarantee future returns. Future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended and/or purchased by Quality Asset Management), or product made reference to directly or indirectly on this website, or indirectly via link to any unaffiliated third-party website, may not be profitable or equal to corresponding indirect performance levels.
  12. 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 or prospective client’s investment portfolio.

Standard Deviation

  1. Standard deviation is a measure of the variability of returns. It has some use in comparing the risk of investment alternatives.
  2. Over the long run, you can statistically approximate how many months would have returns that fall under the monthly average returns minus 1, 2 or 3 times the monthly standard deviation value:
    • 1 in 6.25 months < monthly average returns – 1 x monthly standard deviation
    • 1 in 40 months < monthly average returns – 2 x monthly standard deviation
    • 1 in 200 months < monthly average returns – 3 x monthly standard deviation
  3. The statistical approximation above assumes that negative deviations from the average are as likely as positive deviations. It also assumes that over the long run, the distribution of returns is close to the normal distribution.
  4. Annualized standard deviation is an approximation of the annual standard deviation and is calculated by multiplying the monthly standard deviation by the square root of 12. It may be materially different from the number computed from the annual data. QAM uses the monthly measure in order to be comparable to Morningstar’s data presentation.

Simulated Data

For periods prior to the inception of the DFA mutual funds, simulated data having similar risk-return characteristics is used. This enables viewing a history of risk-return characteristics of QAM’s strategies since 1970.

Simulated data does not reflect actual trading results or the impact of market factors. Actual performance of the DFA funds before inception could be materially lower if they were implemented at the time of measurement.

Following is the description of the strategy construction:

US Large

1/1991 – Present: DFA US Large Company Portfolio
1/1970 – 12/1990: S&P 500 returns

US Large Value

4/1993 – Present: DFA US Large Cap Value Portfolio
1/1970 – 3/1993: Fama/French US Large Value (excluding Utilities) Simulated Portfolio

US Tax-Managed Marketwide Value

1/1999 – Present: DFA Tax-Managed US Marketwide Value Portfolio
1/1970 – 12/1998: Dimensional US Marketwide Value Simulated Portfolio

US Micro

4/2001 – Present: DFA U.S. Micro Cap Fund
1/1982 – 3/2001: DFA U.S 9-10 Small Company Portfolio
1/1973 – 12/1981: CRSP Database (NYSE & AMEX & OTC), Rebalanced Quarterly.
1/1970 – 12/1972: CRSP Database (NYSE & AMEX), Rebalanced Quarterly

US Small Value

4/2001 – Present: DFA US Small Value Cap Portfolio
4/1993 – 3/2001: DFA 6-10 Value Portfolio
1/1970 – 3/1993: Fama/French US Small Value (excluding Utilities) Simulated Portfolio

US Tax-Managed Targeted Value

1/1999 – Present: DFA Tax-Managed US Targeted Value Portfolio
1/1970 – 12/1998: Dimensional US Targeted Value Simulated Portfolio

Real Estate Securities

12/1994 – Present: DFA Real Estate Securities Portfolio, REITs only
1/1993 – 11/1994: DFA Real Estate Securities Portfolio including Residential Construction & Commercial Property Development Securities
1/1975 – 12/1992: Simulated – Don Keim Equity REITs Index
1/1970 – 12/1974: Fama/French US Small Value (excluding Utilities) Simulated Portfolio

International Value

3/1994 – Present: DFA International Value Portfolio
7/1993 – 2/1994: DFA International High Book To Market Portfolio
4/1993 – 6/1993: MSCI EAFE Index Substituted Temporarily
1/1975 – 3/1993: International High BtM (Value) Value-Weighted Unhedged $ (Top 30% BtM)
Simulated DFA Strategy (Max Japan 38%), Courtesy Fama/French & MSCI Includes Japan, Great Britain, France, Germany, Switzerland, Netherlands, Hong Kong, Australia, Italy, Belgium, Spain (Rebalanced Quarterly)
1/1970 – 12/1974: MSCI EAFE Index – Net Dividends

International Small

10/1996 – Present: DFA International Small Company Portfolio
1/1995 – 9/1996: 35%DFA Japan + 35%DFA Cont + 15%DFA UK + 15%DFA Pac Rim Fund
1/1993 – 12/1994: 35%DFA Japan + 35%DFA Cont + 15%DFA UK + 15%DFA Pac Rim Fund
4/1990 – 12/1992: 40%DFA Japan + 35%DFA Cont + 15%DFA UK + 10%DFA Pac Rim Fund
10/1989 – 3/1990: 40%DFA Japan + 30%DFA Cont + 20%DFA UK + 10%DFA Pac Rim Fund
7/1988 – 9/1989: 50%DFA Japan + 30%DFA Cont + 20%DFA UK
1/1970 – 6/1988: 50%DFA Japan + 50%DFA UK

International Small Value

1/1995 – Present: DFA International Small Cap Value Portfolio
1/1993 – 12/1994: 35%DFA Japan + 35%DFA Cont + 15%DFA UK + 15%DFA Pac Rim Fund
4/1990 – 12/1992: 40%DFA Japan + 35%DFA Cont + 15%DFA UK + 10%DFA Pac Rim Fund
10/1989 – 3/1990: 40%DFA Japan + 30%DFA Cont + 20%DFA UK + 10%DFA Pac Rim Fund
7/1988 – 9/1989: 50%DFA Japan + 30%DFA Cont + 20%DFA UK
1/1970 – 6/1988: 50%DFA Japan + 50%DFA UK

Emerging Markets Value

4/1998 – Present: DFA Emerging Markets Value Portfolio
3/1993 – 3/1998: DFA Emerging Markets Closed End Portfolio
1/1987-2/1993: Courtesy of Fama/French (“Value versus Growth: The International Evidence.” Journal of Finance 53 (1998), 1975-99.)
1/1970 – 12/1986: 50% DFA Japan + 50% DFA UK

Emerging Markets Small

3/1998 – Present: DFA Emerging Markets Small Cap Portfolio
1/1997 – 2/1998: DFA Emerging Markets Small Cap Series
1/1987- 12/1996: Courtesy of Fama/French (“Value versus Growth: The International Evidence.” Journal of Finance 53 (1998), 1975-99.)
1/1970 – 12/1986: 50% DFA Japan + 50% DFA UK

2-Year Global Fixed Income

3/1996 – Present: DFA 2-Year Global Fixed Income Portfolio
7/1952 – 2/1996: Simulated Returns-2 Year Maximum Maturity, U.S. Treasury. Courtesy of CRSP

5-Year Global Fixed Income

12/1990 – Present: DFA 5-Year Global Fixed Income Portfolio
1/1987 – 11/1990: Lehman Hedged Country Indices: Equal Weighted U.S./U.K./Japan/France/Germany/Canada
1/1970 – 12/1986: Simulation Using U.S. Government Instruments

Intermediate-Term Extended-Quality

08/2010 – Present: DFA Intermediate Term Extended Quality Portfolio
01/1973 – 07/2010: Barclays Capital US Credit Index
01/1970 – 12/1972: Long-Term Corporate Bonds

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