Structured Portfolio Enhancements

For additional information regarding Symmetry Partners, LLC, Factor Investing, AQR Capital Management, Dimensional Fund Advisors, and the Vanguard Group, please see the disclosure at the end of this presentation labeled “Important Information.”

Agenda

• A Look at Factor Investing

• Structured Portfolios: The Three-Factor Model

• The Case for Enhancing Factor Diversification

• Structured Portfolio Enhancements

– Equity Allocation

– Fixed Income Allocation

• Implementation

• Timetable

Sources of return

premiums available

in the markets1

What are Factors?

1Ang, Andrew. “Asset Management: A Systematic Approach to Factor Investing.” Financial Management Association Survey and Synthesis Series. Oxford University Press: 2014,

Chapter 14. Bender, Jennifer; Briand, Remy; Melas, Dimitris and Raman Aylur Subramanian. “Foundations of Factor Investing,” MSCI Research Insight, December 2013.

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

FACTORS

What is Factor Investing?

• Academic, strategic approach

• Seeks to leverage the return opportunity of various factor

premiums

• Sometimes referred to as “Smart Beta”

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

Structured Portfolios: The Three-Factor Model

• Three historic equity factor premiums:

• Market Factor1

• Stocks over bonds

• Value Factor2

• Value stocks over growth stocks

• Size Factor3

• Small cap stocks over large cap stocks

1 Sharpe, William F. “Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk.” The Journal of Finance, Vol. 19, No. 3 (Sept. 1964), 425-442. 2 Fama, Eugene and Ken French. “Common Risk Factors in the Returns on Stocks and Bonds.” Journal of Financial Economics, 33, (1993), 3-56. 3 Banz, Rolf W. “The Relationship Between Return and Market Value of Common Stocks.” Journal of Financial Economics, 9 (1981), 3-18.

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

• Short-term, high quality bonds used to help mitigate

equity risk

The Case for Enhancing Factor Diversification

• May increase expected returns for a similar level of risk

• Reduces dependence on single factor performance

• Further diversifies a portfolio

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

Structured Portfolio Enhancements

Primary Goals:

• Capture higher expected returns

• Increase diversification

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

Structured Portfolio Enhancements: Equity Allocation

Increase equity factor diversification in an attempt to

capture the return premiums that have historically been

found in:

• Profitability Factor1

• Considers a firm’s gross profitability, or return on assets

• Momentum Factor2

• Considers a stock’s recent market performance relative to

its peers

1Novy-Marx, Robert. “The Other Side of Value: The Gross Profitability Premium.” Journal of Financial Economics, 108(1), (2013), 1-28. 2Jegadeesh, Narasimhan and Sheridan Titman. “Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency.” The Journal of Finance, Vol. 48, No. 1,

(March 1993), 65-91.

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

Structured Portfolio Enhancements: Equity Allocation

Please see the disclosure at the end of this presentation labeled “Disclosure - Structured Portfolio Enhancements: The Equity Allocation”

The Potential for More Consistent Returns with Less Volatility

Returns data courtesy of the Ken French Data Library for value, size, momentum and total U.S. equity market. Profitability returns data courtesy of the Robert Novy-Marx Data Library.

Structured Portfolio Enhancements: Fixed Income

Allocation

A more market-based approach that seeks to capture

additional returns in the bond markets

• Provides greater diversification across the spectrum of

investment grade bonds

• Increased global bond diversification to models with greater

equity allocations

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

Structured Portfolio Enhancements: Fixed Income

Allocation

• Seeks to enhance returns through increased exposure to

certain fixed income factor premiums

• Maturity Factor1

• The greater return opportunity of longer-term bonds vs. shorter-term bonds

• Credit Factor2

• The greater return opportunity of lower rated bonds vs. bonds of the

highest quality

1,2Ilmanen, Antti. Expected Returns: An Investor’s Guide to Harvesting Market Rewards. WileyFinance, 2011, p157-158 and 183-185.

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

Implementing the Strategy

• Three funds from AQR Capital Management (AQR)

added to each model

• AQR Multi-Style Equity funds: U.S., International, and

Emerging Markets

• Designed to target value, profitability and momentum factors

within the same fund

• Tax-managed versions to be used in tax-managed models

On the Equity Side:

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

Implementing the Strategy

• Three index funds from The Vanguard Group (Vanguard)

added to each model

• Vanguard Short-Term Bond, Total U.S. Bond Market, and Total

International Bond Market

• DFA Intermediate-Term Municipal Bond Fund added to

tax-managed models

• Provide enhanced return potential through increased

exposure to the maturity and credit factors

On the Fixed Income Side:

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

Timetable

Symmetry Partners’ investment approach seeks to enhance returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more ”factors”

identified in academic research as historically associated with higher returns. Please be advised that adding these factors may not ensure increased returns over a market

weighted investment and may lead to underperformance relative to the benchmark over the investor’s time horizon.

• Changes are being coordinated among the three fund

firms, its many platforms, custodians and relations

• Implementation to begin toward the end of Q1 2015

• Non-tax managed model changes to be implemented

over a period of time as we continue to coordinate the

transition with fund providers

• Tax-managed models: To transition over the course of a

year in an effort to mitigate short-term capital gains

Questions?

Thank you

Important Information Symmetry charges an investment management fee for its services. All Symmetry Partners’ fees can be found in the ADV Part 2A located on the Symmetry Partners’ website,

www.symmetrypartners.com. As with any investment philosophy, there is a possibility of profitability as well as loss. Diversification seeks to reduce volatility by spreading your

investment dollars into various asset classes to add balance to your portfolio. Using this methodology, however, does not guarantee a profit or protection from loss in a declining

market. Rebalancing assets can have tax consequences. If you sell assets in a taxable account you may have to pay tax on any gain resulting from the sale. Please consult your tax

advisor.

Symmetry Partners’ investment approach seeks enhanced returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more “factors”

identified in academic research as historically associated with higher returns. The factors Symmetry seeks to capture may change over time at its discretion.

All data is from sources believed to be reliable but cannot be guaranteed or warranted.

DIFFERENT TYPES OF INVESTMENTS AND/OR INVESTMENT STRATEGIES INVOLVE VARYING LEVELS OF RISK, AND THERE CAN BE NO ASSURANCE THAT ANY

SPECIFIC INVESTMENT OR INVESTMENT STRATEGY WILL BE EITHER SUITABLE OR PROFITABLE FOR YOUR PORTFOLIO. Allocation models are not intended to represent

investment advice that is appropriate for all investors. Each investor must take into account his/her financial resources, investment goals, risk tolerance, investing time horizon, tax

situation and other relevant factors to determine if such portfolio is suitable. Model composition is subject to change. You and your advisor should carefully consider your suitability

depending on your financial situation.

Investors should consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing. The prospectus contains this and other

information about the investment company. Prospectuses may be obtained from your advisor or from Dimensional Fund Advisors: www.dfaus.com. The Vanguard Group

www.Vanguard.com. AQR www.funds.aqr.com. For most recent month end performance information, please call Dimensional Fund Advisors at 310-395-8005, The Vanguard Group

at 877-662-7447, AQR at 866-290-2688. Please read the prospectus carefully before investing or sending money.

Disclosure – Structured Portfolio Enhancements:

The Equity Allocation Symmetry Partners’ investment approach seeks enhanced returns by overweighting assets that exhibit characteristics that tend to be in accordance with one or more “factors”

identified in academic research as historically associated with higher returns. The factors that Symmetry seeks to capture may change over time at its discretion.

The Value Factor is represented by the Fama/French U.S. HmL Research Factor

The Size Factor is represented by the Fama/French U.S. SmB Research Factor

The Momentum Factor is represented by the Fama/French U.S. UmD Research Factor

The Profitability Factor is represented by the Novy-Marx Basic Profitability Factor

The Total U.S. Equity Market is represented by the Fama/French U.S. Market Research Factor

The Risk Free Rate is represented by One-Month U.S Treasury Bills

Symmetry Partners, LLC is an investment advisory firm registered with the Securities and Exchange Commission. Past performance may not be indicative of future results. All data is

from sources believed to be reliable but cannot be guaranteed or warranted. Different types of investments involve varying degrees of risk and there can be no assurance that the

future performance of any specific investment, investment strategy, product, or non-investment related content made reference to directly or indirectly in this piece will be profitable,

equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. The charts are for informational purposes

only and do not represent an all inclusive formula for security selection. Diversification seeks to reduce volatility by spreading your investment dollars into various asset classes to add

balance to your portfolio. Using this methodology, however, does not guarantee a profit or protection from loss in a declining market.