Investors pay too little attention to the impact of management fees, transaction costs, and taxes on investment returns because most performance reports fail to show their effect. This disconnect causes many investors to invest in a cost inefficient manner. Over time, these expenses have a significant impact on investment performance. While we cannot control the movements of markets, we can invest in a manner that reduces the gains lost to management fees, transaction costs, and taxes.

PORTFOLIO COMPARISON

The performance of the portfolios is based on simulated performance for the sample period. The asset allocations are assumed to be the same. The cost efficient portfolio employs passive investments while the average active portfolio employs active funds. There is no guarantee that these portfolios will perform as indicated in the future.

10 million initial investment on January 1, 2003

*Past performance is not indicative of future performance, which may vary.