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DFA Lineup Advantage Applying low cost, full fee disclosure solutions to the Qualified Plan Arena

DFA Lineup Advantage Applying low cost, full fee disclosure solutions to the Qualified Plan Arena. Investment Philosophy. Lower Costs Passive asset class funds have lower operating expenses, transaction costs and low turnover Broad diversification/risk reduction

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DFA Lineup Advantage Applying low cost, full fee disclosure solutions to the Qualified Plan Arena

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  1. DFA Lineup Advantage Applying low cost, full fee disclosure solutions to the Qualified Plan Arena

  2. Investment Philosophy • Lower Costs • Passive asset class funds have lower operating expenses, transaction costs and low turnover • Broad diversification/risk reduction • Typical portfolio may have over 12,000 stock versus industry average of 2,000 stocks

  3. Investment Philosophy • Control of asset allocation • Focus on asset class selection not market timing or security selection • Academic research • Seeks to capture returns of broad asset classes rather than individual securities, like traditional active managers • Institutional fund family defines their own asset classes unlike index fund managers who mimic commercial benchmarks

  4. Expense Ratio Comparison Annual Expense Ratios* Dimensional Fund Advisors (DFA)/Vanguard Versus Average (lower number is desirable) *Sources: Dimensional and Vanguard expense ratios are as of March 2010 from Morningstar. Category averages are from Simple Wealth, Inevitable Wealth by Nick Murray. Information from sources deemed reliable, but its accuracy cannot be guaranteed. Performance is historical and does not guarantee future results.

  5. Portfolio Diversification Comparison Stocks Held in Portfolios* Dimensional Fund Advisors (DFA)/Vanguard Versus Average (higher number is desirable) *Sources: Dimensional and Vanguard expense ratios are as of March 2010 from Morningstar. Category averages are from Simple Wealth, Inevitable Wealth by Nick Murray. Information from sources deemed reliable, but its accuracy cannot be guaranteed. Performance is historical and does not guarantee future results.

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