Hypothetical performance is investment performance returns not actually achieved by any portfolio of a financial institution or professional. Hypothetical performance may include, but is not limited to, model performance returns, backtested performance returns, targeted or projected performance returns, and/or pre-inception returns. Hypothetical performance returns are theoretical, for illustrative purposes only, and are not reflective of an investor’s actual experience. Hypothetical performance returns are based on historic economic and market assumptions. Actual performance returns will vary. Hypothetical performance returns do not reflect actual trading and may not reflect the impact that material economic and market factors had on the decision-making process for this portfolio.
Each of the model portfolios (each, a "Model Portfolio") is designed to showcase a different investment strategy and how using different types of fund vehicles (each, a “Fund Vehicle”) can affect the performance of that strategy. These Model Portfolios are not designed to provide individualized recommendations/advice but instead are meant solely to be used for general, educational purposes. The actual inception date for each Model Portfolio is November 1, 2018. However, for purposes of this modeling exercise, Morningstar has derived hypothetical performance numbers for each Model Portfolio using the percentage-weighted performance numbers (back through December 2007) for each of the Fund Vehicles comprising that Model Portfolio. If, in any particular instance, a Fund Vehicle has an inception date after December 2007, Morningstar uses a proxy performance number for any "gap period" (i.e., December 2007 to the Fund Vehicle’s actual inception date). This proxy performance number is calculated by taking the return performance numbers generated during the relevant gap period by the index that the Fund Vehicle initially used as its primary prospectus benchmark and reducing those numbers by the Fund Vehicle fees (measured in percentages) charged as of its inception date. Model Portfolios rebalance to their target weight for each Fund Vehicle at the end of each year, unless otherwise stated. Dividends are automatically reinvested in Fund Vehicles. Morningstar applies fund expense ratios. No additional management fees are included.