PIA Dimensions 40/60 Portfolio℠
Moderate
Portfolio
The PIA Dimensions 40/60 Portfolio℠ was constructed for investors with a moderate tolerance for risk. Comprised of
40% equity funds and 60% fixed income funds, the portfolio seeks moderate growth of capital over long time
horizons. This portfolio will experience moderate short-term volatility. It is monitored and automatically rebalanced
on an annual basis or as needed.
Riskier
Assets
Safer
Assets
PIA Dimensions 40/60 Portfolio℠ Asset Allocation
Domestic Equity
International Equity
24%
Emerging Market Equity
45%
8%
Real Estate
4%
4%
Short-Term Fixed
Income
Marketwide Fixed
Income
15%
PIA Dimensions 40/60 Portfolio℠ Asset Allocation
Symbol
Alloca
tion
Fidelity Spartan 500 Index
FUSEX
8%
Dimensional US Large Cap Value
DFLVX
8%
Dimensional US Small Cap Value
DFSVX
4%
Dimensional US Micro Cap
DFSCX
4%
Dimensional International Value
DFIVX
4%
Dimensional Small Cap International
Value
DISVX
2%
Dimensional International Small
Company
DFISX
2%
Dimensional Emerging Markets
DFEMX
2%
Dimensional Emerging Markets
Value
DFEVX
2%
Dimensional Real Estate Securities
DFREX
4%
Vanguard Short-Term Treasury
VFISX
15%
Vanguard Total Bond Market Index
VBTSX
45%
Fund Name
Investment Strategies Underlying the PIA Dimensions Portfolios℠
The PIA Dimensions Portfolios℠, created by Prudent Investor
Advisors, LLC, provide participants in 401(k) plans with a full riskbased menu of investment options. The investment strategies
underlying all these model portfolios are based on the Nobel prizewinning Modern Portfolio Theory as well as on the Fama/French
Three-Factor Financial Economic Model. This approach, grounded
in academic research that has withstood rigorous open review for
many years, does not rely on analysts’ forecasts or opinions about
financial markets, but instead incorporates the key factors that
drive the long-run performance of these markets.
Many participants in 401(k) plans as well as other investors lack
the time or interest to research advanced investment principles. In
the absence of such expertise, they may take unintended
investment risks. Even experienced investors can find themselves
perplexed by unexpected events that occur in financial markets.
Compared to conventional broad-based equity market
benchmarks, the PIA Dimensions Portfolios℠ focus to a greater
extent on small company stocks and value stocks. This emphasis is
the result of global evidence that such stocks have above-average
expected returns and provide significant diversification benefits
when combined with large company stocks and/or growth stocks.
This emphasis also incorporates a disciplined and patient style of
securities trading, which allows plan participants to reap the
benefits of low costs and fees. A plan participant that chooses a
PIA Dimensions Portfolio℠ replaces forecasting and guesswork
with a disciplined, professional approach that incorporates the
benefits of investment theory developed over the past four
decades. Selecting a PIA Dimensions Portfolio℠ represents a
thoughtful and diversified approach for plan participants.
Each PIA Dimensions Portfolio℠ holds more than 12,000 securities
from approximately forty-five countries. Worldwide diversification
minimizes the potential negative short-term impact that any one
company, asset class or country may have on a portfolio’s
investment strategy. This reduces overall portfolio risk, allows full
exposure to the returns offered by financial markets and limits
style drift. No amount of diversification, however, can completely
eliminate the potential for investment loss.
Date of first use: March 7, 2012
Prudent Investor Advisors, LLC I SEC Registered Investment Advisor