Description
Amerivest Core
Mutual Fund Portfolios
Powered by
Morningstar Investment Management LLC
powered by Morningstar Investment Management LLC
Fourth Quarter 2015 Update
Market check-in
Analysis provided by Morningstar Investment Management LLC
Stocks rebounded in the 2015’s fourth quarter, but provided little reward for
the year as a whole. The S&P 500 recovered from a third-quarter correction
spawned by fears that China’s slowdown would significantly dampen global
growth. But despite the S&P 500’s 7.0% fourth-quarter gain, investors were
still left with a paltry 1.4% return for 2015. Small-cap stocks moved in a
similar fashion, but the Russell 2000 Index’s 3.6% fourth-quarter rebound
wasn’t enough to offset its third-quarter losses; the small-cap index thus
finished with a -4.4% return for 2015.
Foreign developed markets struggled as well.
The MSCI EAFE Index of non-U.S. developed-market stocks slipped 0.8% over the year in U.S. dollar terms. Japanese stocks finished the year strongly with the MSCI Japan Index posting a 9.6% 12-month gain, fueled in part by aggressive monetary easing by the Bank of Japan.
But Europe proved to be a less attractive destination. The European Central Bank’s stimulus efforts kindled only modest stock-market gains in local currency terms—and those were erased for U.S. investors by the euro’s depreciation against the dollar.
Global growth remained muted overall, prompting the International Monetary Fund to ratchet down its 2015 GDP growth forecast in advanced economies to a meager 2.0%. Last year’s challenges in developed markets paled in comparison to those faced by many emerging-market countries. Falling commodity prices helped send Brazil and Russia into recession. Oil prices have sunk from more than $100 per barrel to less than $40 in the past 18 months.
Indeed, lower demand from China has caused prices to fall for many industrial commodities, which has hit emerging markets the hardest. As a result, the MSCI Emerging Markets Index fell 14.9% in 2015. Bond investors spent much of 2015 worried about the timing and severity of interest-rate hikes by the U.S. Federal Reserve, but the Fed didn’t raise the federal funds rate until December and the 0.25% increase was so well telegraphed that bond markets yawned at the long-awaited change.
The 10-year Treasury yield finished 2015 at 2.27%, just 0.10 percentage points higher than at the end of 2014. The Barclays U.S. Aggregate Bond Index ended the year with a 0.6% gain, providing some stability to investor’s portfolios.
The expectation of rising defaults in the energy sector hurt returns for credit-sensitive bonds, causing the Barclays U.S. Corporate High Yield Index to fall 4.5% If you have any questions, please contact a TD Ameritrade Investment Consultant at your local branch, call an Amerivest Specialist at 888-310-7921, or visit tdameritrade.com. Index Information: An index (such as the S&P 500 Index or the MSCI EAFE Index) as referenced in this update reflects the composite value of the index. Keep in mind: • Indices are not actual investments.
Their performance is not reduced by fees, such as those you pay when trading/owning mutual funds. These fees will decrease the performance of your portfolio. An investment cannot be made in an index. • The securities and allocations in your Amerivest portfolio may not correspond with the securities in the indices and therefore the performance of your portfolio and the indices will differ. • The S&P 500 is an unmanaged index of 500 widely held stocks that represents about 75% of the total U.S. equity market. • The 90 Day U.S.
Treasury Bill is a short-term debt obligation backed by the U.S. government. The interest rate on the 90 Day U.S.
Treasury Bill is often used as a risk-free rate, which is the minimum return an investor expects for any investment because he or she will not accept additional risk unless the potential rate of return is greater than the risk-free rate. • The Russell 3000 Index offers investors access to the broad U.S. equity universe representing approximately 98% of the U.S. market. • The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S.
and Canada. • The Barclays Capital U.S. Aggregate Bond Index covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. . Amerivest Core Mutual Fund Portfolios powered by Morningstar Investment Managment LLC Quarterly Update as of December 30, 2015 Market Performance Snapshot S&P 500 90 Day T-Bill Russell 3000 MSCI EAFE Barclays Ag PREVIOUS QUARTER 7.04% 0.03% 6.27% 4.75% -0.57% YTD 1.38% 0.05% 0.48% -0.39% 0.55% 1-YR 1.38% 0.05% 0.48% -0.39% 0.55% ANNUALIZED 3-YR 15.13% 0.05% 14.74% 5.46% 1.44% Performance of U.S. Equity, Fixed Income, and International Equity markets CUMULATIVE 3-YR 52.59% 0.14% 51.05% 17.30% 4.39% ANNUALIZED SINCE INCEPTION 14.81% 0.08% 15.04% 8.32% 4.09% CUMULATIVE SINCE INCEPTION 163.02% 0.59% 166.59% 74.97% 32.41% The index returns are provided for reference only, and you can use them as a guide to see how your portfolio is performing compared with the market in general. For more information, please see Index Information on cover page. Target Allocation Mutual Fund Conservative Conservative DOMESTIC EQUITIES Large-Cap Growth Domestic Large-Cap Value Equities: 14% Mid-Cap Growth International Equities: 6% Domestic Mid-Cap Value Fixed Income: 69% Small-Cap Growth International Fixed Income: 7% Small-Cap Value Specialty:Micro-Cap 3% Cash: 1% INTERNATIONAL EQUITIES Developed Equity NET RETURN Developed Small-Cap Equity FOURTH QUARTER YTD 1YR ANNUALIZED 3YR 1 CUMULATIVE 3YR 2 Emerging Market Equity What helped: î® î® î® What hurt: î® 0.49% î® -1.38% î® DOMESTIC FIXED INCOME US Short-Term Bonds Overweight to large-cap stocks over smaller-cap stocks Strong performances from several U.S. large-cap equity managers Exposure to emerging-markets bonds US Intermediate-Term Bonds Exposure to emerging-markets stocks Exposure to high-yield bonds Losses in the managed-futures strategy -1.38% US Long-Term Bonds Mortgage-Backed Securities 1.74% TIPS ANNUALIZED SPI 1,3 CUMULATIVE SPI 2,3 5.33% High-Yield Bonds INTERNATIONAL FIXED INCOME 5.05% Developed Bonds 41.16% Emerging Market Bonds SPECIALTY Real Estate Target Allocation Mutual Fund Moderate Moderate Commodities Managed Futures DOMESTIC EQUITIES CASH Large-Cap Growth Domestic Cash Value Equities: 24% Large-Cap Mid-Cap Growth International Equities: 10% Domestic Mid-Cap Value Fixed Income: 52% Small-Cap Growth International Fixed Income: 10% Small-Cap Value Specialty:Micro-Cap 3% Cash: 1% INTERNATIONAL EQUITIES Developed Equity NET RETURN Developed Small-Cap Equity FOURTH QUARTER Emerging Market Equity 1.30% YTD DOMESTIC FIXED INCOME 1YR US Intermediate-Term Bonds ANNUALIZED 3YR 1 CUMULATIVE 3YR 2 ANNUALIZED SPI 1,3 CUMULATIVE SPI 2,3 -1.95% US Short-Term Bonds -1.95% What helped: î® î® î® Overweight to large-cap stocks over smaller-cap stocks Strong performances from several U.S.
large-cap equity managers Exposure to emerging-markets bonds What hurt: î® î® î® E xposure to emerging-markets stocks E xposure to high-yield bonds Losses in the managed-futures strategy US Long-Term Bonds 3.28% Mortgage-Backed Securities TIPS 10.18% High-Yield Bonds 6.97% INTERNATIONAL FIXED INCOME Developed Bonds 60.25% Emerging Market Bonds SPECIALTY Real Estate Commodities 1. nnualized Return: The annual equivalent return of an investment, including interest and dividends. This can be used to help compare portfolios with different A Managed Futures inception dates or to market indices. 2.
Cumulative Return: The aggregate amount that an investment has gained or lost, including interest and dividends paid, over a period of time. CASH 3. Since Portfolio Inception (12/31/08) Cash . e INTERNATIONAL EQUITIES EmergingValue Equity Mid-Cap Market Developed Equity Small-Cap Growth DOMESTIC FIXED INCOME Small-Cap Value US Short-Term Bonds Micro-Cap Developed Small-Cap Equity Emerging Market Equity Chart Key INTERNATIONAL FIXED INCOME Developed Bonds Emerging Market Bonds US Intermediate-Term Bonds DOMESTIC EQUITIES Mid-Cap Growth US Long-Term Bonds Mid-Cap Value TIPS Small-Cap Value High-Yield Bonds CASH Mortgage-Backed Securities Small-Cap Growth Commodities INTERNATIONAL FIXED INCOME DOMESTIC FIXED INCOME Developed Bonds US Short-Term Bonds US Intermediate-Term Bonds SPECIALTY TIPS Developed Small-Cap Equity High-Yield Market Equity Emerging Bonds US Short-Term Bonds Large-Cap Value US Long-Term Bonds INTERNATIONAL EQUITIES Mortgage-Backed Securities Developed Equity DOMESTIC FIXED INCOME Large-Cap Growth Real Estate Managed Futures Powered by Morningstar Investment Management LLC Cash Emerging Market Bonds US Intermediate-Term Bonds Micro-Cap US Long-Term Bonds SPECIALTY Mortgage-Backed Securities Real Estate TIPS INTERNATIONAL FIXED INCOME INTERNATIONAL EQUITIES Target Allocation Developed Equity Mutual Fund Moderate Growth Developed Small-Cap Equity Developed Bonds Emerging Market Bonds Moderate Growth SPECIALTY Emerging Market Equity DOMESTIC EQUITIES Real Estate Domestic Large-Cap Value Equities: 32% Commodities Mid-Cap Growth International Equities: 13% Managed Futures US Short-Term Bonds Domestic Mid-Cap Value Fixed Income: 42% US Intermediate-Term Bonds Small-Cap Growth International Fixed Income: 9% Small-Cap Value CASH US Long-Term Bonds Specialty:Micro-Cap 3% Cash Mortgage-Backed Securities Cash: 1% INTERNATIONAL EQUITIES TIPS Large-Cap Growth DOMESTIC FIXED INCOME Commodities High-Yield Bonds Managed Futures INTERNATIONAL FIXED INCOME What helped: î® î® î® CASH Developed Bonds Overweight to large-cap Cash Emerging Market Bonds stocks over smaller-cap stocks Strong performances from several U.S. large-cap equity managers SPECIALTY to emerging-markets bonds Exposure Real Estate Commodities Developed Equity What hurt: Managed Futures Developed Small-Cap Equity High-Yield Bonds î® NET RETURN INTERNATIONAL FIXED INCOME FOURTH QUARTER Emerging Market Equity 1.90% Developed Bonds YTD DOMESTIC FIXED INCOME Emerging Market Bonds US Short-Term Bonds 1YR Exposure to emerging-markets stocks in the managed-futures strategy î® CASH Losses Cash US Intermediate-Term Bonds SPECIALTY ANNUALIZED Real Estate 3YR 1 Commodities CUMULATIVE 3YR 2 Managed Futures 1,3 CASH CUMULATIVE 2,3 Cash -2.18% US Long-Term Bonds Mortgage-Backed Securities TIPS ANNUALIZED SPI SPI -2.18% 4.09% High-Yield Bonds 12.79% INTERNATIONAL FIXED INCOME 8.20% Developed Bonds 73.64% Emerging Market Bonds SPECIALTY Real Estate Target Allocation Mutual Fund Growth Growth Commodities Managed Futures DOMESTIC EQUITIES CASH Large-Cap Growth Cash Large-Cap Value Domestic Equities: 44% International Equities: 20% Mid-Cap Growth Domestic Mid-Cap Value Fixed Income: 25% Small-Cap Growth International Fixed Income: 6% Small-Cap Value Specialty:Micro-Cap 4% Cash: 1% INTERNATIONAL EQUITIES Developed Equity NET RETURN Developed Small-Cap Equity FOURTH QUARTER What helped: î® î® What hurt: î® î® Emerging Market Equity 3.10% YTD Exposure to emerging-markets stocks Losses in the managed-futures strategy DOMESTIC FIXED INCOME 1YR Overweight to large-cap stocks over smaller-cap stocks Strong performances from several U.S. large-cap equity managers US Intermediate-Term Bonds ANNUALIZED 3YR 1 CUMULATIVE 3YR 2 ANNUALIZED SPI 1,3 CUMULATIVE SPI 2,3 Target Allocation Mutual Fund Aggressive Aggressive -2.69% US Short-Term Bonds -2.69% US Long-Term Bonds 5.75% Mortgage-Backed Securities TIPS 18.26% High-Yield Bonds 9.73% INTERNATIONAL FIXED INCOME Developed Bonds 91.50% Emerging Market Bonds SPECIALTY Real Estate Commodities Managed Futures DOMESTIC EQUITIES Large-Cap Domestic CASH Growth Equities: 55% Large-Cap Value Cash International Equities: 25% Mid-Cap Growth Domestic Mid-Cap Value Fixed Income: 11% Small-Cap Growth International Fixed Income: 3% Small-Cap Value Specialty:Micro-Cap 5% Cash: 1% INTERNATIONAL EQUITIES Developed Equity NET RETURN Developed Small-Cap Equity FOURTH QUARTER YTD 1YR ANNUALIZED 3YR 1 CUMULATIVE 3YR 2 Emerging Market Equity 3.70% DOMESTIC FIXED INCOME -3.16% US Short-Term Bonds US Intermediate-Term Bonds -3.16% US Long-Term Bonds Mortgage-Backed Securities TIPS ANNUALIZED SPI 1,3 CUMULATIVE SPI 2,3 7.46% High-Yield Bonds 24.10% 10.91% INTERNATIONAL FIXED INCOME Developed Bonds 106.38% Emerging Market Bonds SPECIALTY Real Estate Commodities What helped: î® î® Overweight to large-cap stocks over smaller-cap stocks Strong performances from several U.S. large-cap equity managers What hurt: î® î® Exposure to emerging-markets stocks Losses in the managed-futures strategys .
Before investing in an Amerivest portfolio, be sure to carefully consider the underlying funds’ objectives, risks, charges, and expenses. For a prospectus containing this and other important information about each fund, contact an Amerivest Specialist at 888-310-7921. Please read the prospectus carefully before investing. SECURITIES PRODUCTS NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE Performance results represent actual performance and are based on asset-weighted total returns across all accounts fully invested in the respective models. The minimum initial investment is $25,000.
The portfolios are reviewed and may be rebalanced by Amerivest on a quarterly basis. Performance results include the reinvestment of dividends. Interest on cash balance is accrued daily and paid (at prevailing TD Ameritrade rate) to the account at the end of each month.
Maximum net annual advisory fees of 1.00% (fees vary by amount invested; please refer to the ADV Part 2 for complete fee schedule) are paid in advance and are deducted from cash at the beginning of each quarter. Results also include the deduction of the mutual fund expenses of the underlying funds, including 12b-1 fees, administrative costs, and other various operational expenses. The returns calculated are net of advisory fees.
Net-of-fees performance results for each composite are rounded to the nearest 0.01%. Trade-date accounting was utilized in the calculation of performance results for the period under review. No taxes are being considered.
TD Ameritrade charges no commissions for all eligible transactions in TD Ameritrade Investing Accounts. All investments involve risk, including loss of principal. Past performance does not guarantee future results. There is no assurance that the investment process will consistently lead to successful investing.
Asset allocation and diversification do not eliminate the risk of experiencing investment losses. The investment return and principal value of an investment will fluctuate, and an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual funds are subject to market, exchange rate, political, credit, interest rate, and prepayment risks, which vary depending on the type of mutual fund. Funds that invest in stocks of small-cap or mid-cap companies (companies with market capitalization below $10 billion) involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies.
Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller company stocks have experienced a greater degree of market volatility than the overall market average. Funds that invest in international securities involve special additional risks.
These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investment in emerging markets may accentuate these risks. Bonds are subject to interest rate risk.
As the prevailing level of bond interest rates rise, the value of bonds already held in a portfolio declines. Funds that hold bonds are subject to declines and increases in value due to general changes in interest rates. Funds that invest in lower-rated debt securities (commonly referred to as high-yield or junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio.
Investors should be aware of the possible higher level of volatility and increased risk of default. Investors who invest a significant percentage of their assets in a single holding may incur additional risks, including share price fluctuations, due to the increased concentration of investments. Morningstar Investment Management LLC is a registered investment advisor and subsidiary of Morningstar, Inc. Morningstar Investment Management provides consulting services to Amerivest Investment Management, LLC (“Amerivest”) by providing recommendations to Amerivest regarding asset allocation targets and selection of securities appropriate for the Amerivest Portfolios; however, Amerivest retains the discretion to accept, modify, or reject Morningstar Investment Management’s recommendations. Morningstar Investment Management selects securities for the Amerivest portfolios from the universe of investments made available through TD  Ameritrade.
In performing its services, Morningstar Investment Management may engage the services of its affiliate, Morningstar Investment Services LLC, a registered investment advisor and subsidiary of Morningstar Investment Management. Neither Morningstar Investment Management nor Morningstar Investment Services is acting in the capacity of advisor to Amerivest’s clients. Asset Allocation target allocations are subject to change without notice.
Morningstar Investment Management establishes the allocations using its proprietary asset classifications. If alternative classification methods are used, the allocations may not meet the asset allocation targets. The Morningstar name and logo are registered marks of Morningstar, Inc.
Morningstar Investment Management is not affiliated with Amerivest or TD Ameritrade. Amerivest Portfolios is an investment advisory service of Amerivest Investment Management, LLC, a registered investment advisor. Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC. 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. Amerivest provides nondiscretionary and discretionary advisory services for a fee. Risks applicable to any portfolio are those associated with its underlying securities.
For more information, please see the Amerivest Disclosure Brochure (ADV Part 2) https://www.tdameritrade.com/retail-en_us/resources/pdf/TDA4855.pdf. TD  Ameritrade is a trademark jointly owned by TD  Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2016 TD  Ameritrade IP Company, Inc.
All rights reserved. Used with permission. TDA 2270 BR 02/16 .
The MSCI EAFE Index of non-U.S. developed-market stocks slipped 0.8% over the year in U.S. dollar terms. Japanese stocks finished the year strongly with the MSCI Japan Index posting a 9.6% 12-month gain, fueled in part by aggressive monetary easing by the Bank of Japan.
But Europe proved to be a less attractive destination. The European Central Bank’s stimulus efforts kindled only modest stock-market gains in local currency terms—and those were erased for U.S. investors by the euro’s depreciation against the dollar.
Global growth remained muted overall, prompting the International Monetary Fund to ratchet down its 2015 GDP growth forecast in advanced economies to a meager 2.0%. Last year’s challenges in developed markets paled in comparison to those faced by many emerging-market countries. Falling commodity prices helped send Brazil and Russia into recession. Oil prices have sunk from more than $100 per barrel to less than $40 in the past 18 months.
Indeed, lower demand from China has caused prices to fall for many industrial commodities, which has hit emerging markets the hardest. As a result, the MSCI Emerging Markets Index fell 14.9% in 2015. Bond investors spent much of 2015 worried about the timing and severity of interest-rate hikes by the U.S. Federal Reserve, but the Fed didn’t raise the federal funds rate until December and the 0.25% increase was so well telegraphed that bond markets yawned at the long-awaited change.
The 10-year Treasury yield finished 2015 at 2.27%, just 0.10 percentage points higher than at the end of 2014. The Barclays U.S. Aggregate Bond Index ended the year with a 0.6% gain, providing some stability to investor’s portfolios.
The expectation of rising defaults in the energy sector hurt returns for credit-sensitive bonds, causing the Barclays U.S. Corporate High Yield Index to fall 4.5% If you have any questions, please contact a TD Ameritrade Investment Consultant at your local branch, call an Amerivest Specialist at 888-310-7921, or visit tdameritrade.com. Index Information: An index (such as the S&P 500 Index or the MSCI EAFE Index) as referenced in this update reflects the composite value of the index. Keep in mind: • Indices are not actual investments.
Their performance is not reduced by fees, such as those you pay when trading/owning mutual funds. These fees will decrease the performance of your portfolio. An investment cannot be made in an index. • The securities and allocations in your Amerivest portfolio may not correspond with the securities in the indices and therefore the performance of your portfolio and the indices will differ. • The S&P 500 is an unmanaged index of 500 widely held stocks that represents about 75% of the total U.S. equity market. • The 90 Day U.S.
Treasury Bill is a short-term debt obligation backed by the U.S. government. The interest rate on the 90 Day U.S.
Treasury Bill is often used as a risk-free rate, which is the minimum return an investor expects for any investment because he or she will not accept additional risk unless the potential rate of return is greater than the risk-free rate. • The Russell 3000 Index offers investors access to the broad U.S. equity universe representing approximately 98% of the U.S. market. • The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S.
and Canada. • The Barclays Capital U.S. Aggregate Bond Index covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. . Amerivest Core Mutual Fund Portfolios powered by Morningstar Investment Managment LLC Quarterly Update as of December 30, 2015 Market Performance Snapshot S&P 500 90 Day T-Bill Russell 3000 MSCI EAFE Barclays Ag PREVIOUS QUARTER 7.04% 0.03% 6.27% 4.75% -0.57% YTD 1.38% 0.05% 0.48% -0.39% 0.55% 1-YR 1.38% 0.05% 0.48% -0.39% 0.55% ANNUALIZED 3-YR 15.13% 0.05% 14.74% 5.46% 1.44% Performance of U.S. Equity, Fixed Income, and International Equity markets CUMULATIVE 3-YR 52.59% 0.14% 51.05% 17.30% 4.39% ANNUALIZED SINCE INCEPTION 14.81% 0.08% 15.04% 8.32% 4.09% CUMULATIVE SINCE INCEPTION 163.02% 0.59% 166.59% 74.97% 32.41% The index returns are provided for reference only, and you can use them as a guide to see how your portfolio is performing compared with the market in general. For more information, please see Index Information on cover page. Target Allocation Mutual Fund Conservative Conservative DOMESTIC EQUITIES Large-Cap Growth Domestic Large-Cap Value Equities: 14% Mid-Cap Growth International Equities: 6% Domestic Mid-Cap Value Fixed Income: 69% Small-Cap Growth International Fixed Income: 7% Small-Cap Value Specialty:Micro-Cap 3% Cash: 1% INTERNATIONAL EQUITIES Developed Equity NET RETURN Developed Small-Cap Equity FOURTH QUARTER YTD 1YR ANNUALIZED 3YR 1 CUMULATIVE 3YR 2 Emerging Market Equity What helped: î® î® î® What hurt: î® 0.49% î® -1.38% î® DOMESTIC FIXED INCOME US Short-Term Bonds Overweight to large-cap stocks over smaller-cap stocks Strong performances from several U.S. large-cap equity managers Exposure to emerging-markets bonds US Intermediate-Term Bonds Exposure to emerging-markets stocks Exposure to high-yield bonds Losses in the managed-futures strategy -1.38% US Long-Term Bonds Mortgage-Backed Securities 1.74% TIPS ANNUALIZED SPI 1,3 CUMULATIVE SPI 2,3 5.33% High-Yield Bonds INTERNATIONAL FIXED INCOME 5.05% Developed Bonds 41.16% Emerging Market Bonds SPECIALTY Real Estate Target Allocation Mutual Fund Moderate Moderate Commodities Managed Futures DOMESTIC EQUITIES CASH Large-Cap Growth Domestic Cash Value Equities: 24% Large-Cap Mid-Cap Growth International Equities: 10% Domestic Mid-Cap Value Fixed Income: 52% Small-Cap Growth International Fixed Income: 10% Small-Cap Value Specialty:Micro-Cap 3% Cash: 1% INTERNATIONAL EQUITIES Developed Equity NET RETURN Developed Small-Cap Equity FOURTH QUARTER Emerging Market Equity 1.30% YTD DOMESTIC FIXED INCOME 1YR US Intermediate-Term Bonds ANNUALIZED 3YR 1 CUMULATIVE 3YR 2 ANNUALIZED SPI 1,3 CUMULATIVE SPI 2,3 -1.95% US Short-Term Bonds -1.95% What helped: î® î® î® Overweight to large-cap stocks over smaller-cap stocks Strong performances from several U.S.
large-cap equity managers Exposure to emerging-markets bonds What hurt: î® î® î® E xposure to emerging-markets stocks E xposure to high-yield bonds Losses in the managed-futures strategy US Long-Term Bonds 3.28% Mortgage-Backed Securities TIPS 10.18% High-Yield Bonds 6.97% INTERNATIONAL FIXED INCOME Developed Bonds 60.25% Emerging Market Bonds SPECIALTY Real Estate Commodities 1. nnualized Return: The annual equivalent return of an investment, including interest and dividends. This can be used to help compare portfolios with different A Managed Futures inception dates or to market indices. 2.
Cumulative Return: The aggregate amount that an investment has gained or lost, including interest and dividends paid, over a period of time. CASH 3. Since Portfolio Inception (12/31/08) Cash . e INTERNATIONAL EQUITIES EmergingValue Equity Mid-Cap Market Developed Equity Small-Cap Growth DOMESTIC FIXED INCOME Small-Cap Value US Short-Term Bonds Micro-Cap Developed Small-Cap Equity Emerging Market Equity Chart Key INTERNATIONAL FIXED INCOME Developed Bonds Emerging Market Bonds US Intermediate-Term Bonds DOMESTIC EQUITIES Mid-Cap Growth US Long-Term Bonds Mid-Cap Value TIPS Small-Cap Value High-Yield Bonds CASH Mortgage-Backed Securities Small-Cap Growth Commodities INTERNATIONAL FIXED INCOME DOMESTIC FIXED INCOME Developed Bonds US Short-Term Bonds US Intermediate-Term Bonds SPECIALTY TIPS Developed Small-Cap Equity High-Yield Market Equity Emerging Bonds US Short-Term Bonds Large-Cap Value US Long-Term Bonds INTERNATIONAL EQUITIES Mortgage-Backed Securities Developed Equity DOMESTIC FIXED INCOME Large-Cap Growth Real Estate Managed Futures Powered by Morningstar Investment Management LLC Cash Emerging Market Bonds US Intermediate-Term Bonds Micro-Cap US Long-Term Bonds SPECIALTY Mortgage-Backed Securities Real Estate TIPS INTERNATIONAL FIXED INCOME INTERNATIONAL EQUITIES Target Allocation Developed Equity Mutual Fund Moderate Growth Developed Small-Cap Equity Developed Bonds Emerging Market Bonds Moderate Growth SPECIALTY Emerging Market Equity DOMESTIC EQUITIES Real Estate Domestic Large-Cap Value Equities: 32% Commodities Mid-Cap Growth International Equities: 13% Managed Futures US Short-Term Bonds Domestic Mid-Cap Value Fixed Income: 42% US Intermediate-Term Bonds Small-Cap Growth International Fixed Income: 9% Small-Cap Value CASH US Long-Term Bonds Specialty:Micro-Cap 3% Cash Mortgage-Backed Securities Cash: 1% INTERNATIONAL EQUITIES TIPS Large-Cap Growth DOMESTIC FIXED INCOME Commodities High-Yield Bonds Managed Futures INTERNATIONAL FIXED INCOME What helped: î® î® î® CASH Developed Bonds Overweight to large-cap Cash Emerging Market Bonds stocks over smaller-cap stocks Strong performances from several U.S. large-cap equity managers SPECIALTY to emerging-markets bonds Exposure Real Estate Commodities Developed Equity What hurt: Managed Futures Developed Small-Cap Equity High-Yield Bonds î® NET RETURN INTERNATIONAL FIXED INCOME FOURTH QUARTER Emerging Market Equity 1.90% Developed Bonds YTD DOMESTIC FIXED INCOME Emerging Market Bonds US Short-Term Bonds 1YR Exposure to emerging-markets stocks in the managed-futures strategy î® CASH Losses Cash US Intermediate-Term Bonds SPECIALTY ANNUALIZED Real Estate 3YR 1 Commodities CUMULATIVE 3YR 2 Managed Futures 1,3 CASH CUMULATIVE 2,3 Cash -2.18% US Long-Term Bonds Mortgage-Backed Securities TIPS ANNUALIZED SPI SPI -2.18% 4.09% High-Yield Bonds 12.79% INTERNATIONAL FIXED INCOME 8.20% Developed Bonds 73.64% Emerging Market Bonds SPECIALTY Real Estate Target Allocation Mutual Fund Growth Growth Commodities Managed Futures DOMESTIC EQUITIES CASH Large-Cap Growth Cash Large-Cap Value Domestic Equities: 44% International Equities: 20% Mid-Cap Growth Domestic Mid-Cap Value Fixed Income: 25% Small-Cap Growth International Fixed Income: 6% Small-Cap Value Specialty:Micro-Cap 4% Cash: 1% INTERNATIONAL EQUITIES Developed Equity NET RETURN Developed Small-Cap Equity FOURTH QUARTER What helped: î® î® What hurt: î® î® Emerging Market Equity 3.10% YTD Exposure to emerging-markets stocks Losses in the managed-futures strategy DOMESTIC FIXED INCOME 1YR Overweight to large-cap stocks over smaller-cap stocks Strong performances from several U.S. large-cap equity managers US Intermediate-Term Bonds ANNUALIZED 3YR 1 CUMULATIVE 3YR 2 ANNUALIZED SPI 1,3 CUMULATIVE SPI 2,3 Target Allocation Mutual Fund Aggressive Aggressive -2.69% US Short-Term Bonds -2.69% US Long-Term Bonds 5.75% Mortgage-Backed Securities TIPS 18.26% High-Yield Bonds 9.73% INTERNATIONAL FIXED INCOME Developed Bonds 91.50% Emerging Market Bonds SPECIALTY Real Estate Commodities Managed Futures DOMESTIC EQUITIES Large-Cap Domestic CASH Growth Equities: 55% Large-Cap Value Cash International Equities: 25% Mid-Cap Growth Domestic Mid-Cap Value Fixed Income: 11% Small-Cap Growth International Fixed Income: 3% Small-Cap Value Specialty:Micro-Cap 5% Cash: 1% INTERNATIONAL EQUITIES Developed Equity NET RETURN Developed Small-Cap Equity FOURTH QUARTER YTD 1YR ANNUALIZED 3YR 1 CUMULATIVE 3YR 2 Emerging Market Equity 3.70% DOMESTIC FIXED INCOME -3.16% US Short-Term Bonds US Intermediate-Term Bonds -3.16% US Long-Term Bonds Mortgage-Backed Securities TIPS ANNUALIZED SPI 1,3 CUMULATIVE SPI 2,3 7.46% High-Yield Bonds 24.10% 10.91% INTERNATIONAL FIXED INCOME Developed Bonds 106.38% Emerging Market Bonds SPECIALTY Real Estate Commodities What helped: î® î® Overweight to large-cap stocks over smaller-cap stocks Strong performances from several U.S. large-cap equity managers What hurt: î® î® Exposure to emerging-markets stocks Losses in the managed-futures strategys .
Before investing in an Amerivest portfolio, be sure to carefully consider the underlying funds’ objectives, risks, charges, and expenses. For a prospectus containing this and other important information about each fund, contact an Amerivest Specialist at 888-310-7921. Please read the prospectus carefully before investing. SECURITIES PRODUCTS NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE Performance results represent actual performance and are based on asset-weighted total returns across all accounts fully invested in the respective models. The minimum initial investment is $25,000.
The portfolios are reviewed and may be rebalanced by Amerivest on a quarterly basis. Performance results include the reinvestment of dividends. Interest on cash balance is accrued daily and paid (at prevailing TD Ameritrade rate) to the account at the end of each month.
Maximum net annual advisory fees of 1.00% (fees vary by amount invested; please refer to the ADV Part 2 for complete fee schedule) are paid in advance and are deducted from cash at the beginning of each quarter. Results also include the deduction of the mutual fund expenses of the underlying funds, including 12b-1 fees, administrative costs, and other various operational expenses. The returns calculated are net of advisory fees.
Net-of-fees performance results for each composite are rounded to the nearest 0.01%. Trade-date accounting was utilized in the calculation of performance results for the period under review. No taxes are being considered.
TD Ameritrade charges no commissions for all eligible transactions in TD Ameritrade Investing Accounts. All investments involve risk, including loss of principal. Past performance does not guarantee future results. There is no assurance that the investment process will consistently lead to successful investing.
Asset allocation and diversification do not eliminate the risk of experiencing investment losses. The investment return and principal value of an investment will fluctuate, and an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual funds are subject to market, exchange rate, political, credit, interest rate, and prepayment risks, which vary depending on the type of mutual fund. Funds that invest in stocks of small-cap or mid-cap companies (companies with market capitalization below $10 billion) involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies.
Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller company stocks have experienced a greater degree of market volatility than the overall market average. Funds that invest in international securities involve special additional risks.
These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investment in emerging markets may accentuate these risks. Bonds are subject to interest rate risk.
As the prevailing level of bond interest rates rise, the value of bonds already held in a portfolio declines. Funds that hold bonds are subject to declines and increases in value due to general changes in interest rates. Funds that invest in lower-rated debt securities (commonly referred to as high-yield or junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio.
Investors should be aware of the possible higher level of volatility and increased risk of default. Investors who invest a significant percentage of their assets in a single holding may incur additional risks, including share price fluctuations, due to the increased concentration of investments. Morningstar Investment Management LLC is a registered investment advisor and subsidiary of Morningstar, Inc. Morningstar Investment Management provides consulting services to Amerivest Investment Management, LLC (“Amerivest”) by providing recommendations to Amerivest regarding asset allocation targets and selection of securities appropriate for the Amerivest Portfolios; however, Amerivest retains the discretion to accept, modify, or reject Morningstar Investment Management’s recommendations. Morningstar Investment Management selects securities for the Amerivest portfolios from the universe of investments made available through TD  Ameritrade.
In performing its services, Morningstar Investment Management may engage the services of its affiliate, Morningstar Investment Services LLC, a registered investment advisor and subsidiary of Morningstar Investment Management. Neither Morningstar Investment Management nor Morningstar Investment Services is acting in the capacity of advisor to Amerivest’s clients. Asset Allocation target allocations are subject to change without notice.
Morningstar Investment Management establishes the allocations using its proprietary asset classifications. If alternative classification methods are used, the allocations may not meet the asset allocation targets. The Morningstar name and logo are registered marks of Morningstar, Inc.
Morningstar Investment Management is not affiliated with Amerivest or TD Ameritrade. Amerivest Portfolios is an investment advisory service of Amerivest Investment Management, LLC, a registered investment advisor. Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC. 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. Amerivest provides nondiscretionary and discretionary advisory services for a fee. Risks applicable to any portfolio are those associated with its underlying securities.
For more information, please see the Amerivest Disclosure Brochure (ADV Part 2) https://www.tdameritrade.com/retail-en_us/resources/pdf/TDA4855.pdf. TD  Ameritrade is a trademark jointly owned by TD  Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2016 TD  Ameritrade IP Company, Inc.
All rights reserved. Used with permission. TDA 2270 BR 02/16 .
