Shearwater Capital - Portfolios

1. Composition of six model portfolios structured with DFA Funds
2. Historical returns of model portfolios (1973 - 2006)
3. Model portfolios structured with DFA Funds
4. Historical returns of model portfolios (1973 - 2006)
5. Growth of $1 from 1973-2006 in DFA Model Portfolios

Composition of six model portfolios structured with DFA Funds^*
	(100% bonds)	(20% stocks, 80% bonds)	(40% stocks, 60% bonds)	(60% stocks, 40% bonds)	(80% stocks, 20% bonds)	(100% stocks)
Asset Class Allocation:	Very Conservative	Conservative	Moderate	Normal	Aggressive	Very Aggressive
U.S. Stocks	0.0%	14.0%	28.0%	42.0%	56.0%	70.0%
International Stocks	0.0%	6.0%	12.0%	18.0%	24.0%	30.0%
Bonds	100.0%	80.0%	60.0%	40.0%	20.0%	0.0%

Composition of six model portfolios structured with DFA Funds^*
	(100% bonds)	(20% stocks, 80% bonds)	(40% stocks, 60% bonds)	(60% stocks, 40% bonds)	(80% stocks, 20% bonds)	(100% stocks)
Asset Class Allocation:	Very Conservative	Conservative	Moderate	Normal	Aggressive	Very Aggressive
U.S. Stocks Large Cap - S & P 500 Index Large Cap Value - Fama/French Large Cap Value Index Small Cap - CRSP 9-10 Index Small Cap Value - Fama/French US Small Cap Value Index Real Estate Strategy - Dow Jones Wilshire REIT Index	0.0% 0.0% 0.0% 0.0% 0.0% 0.0%	14.0% 4.0% 4.0% 2.0% 2.0% 2.0%	28.0% 8.0% 8.0% 4.0% 4.0% 4.0%	42.0% 12.0% 12.0% 6.0% 6.0% 6.0%	56.0% 16.0% 16.0% 8.0% 8.0% 8.0%	70.0% 20.0% 20.0% 10.0% 10.0% 10.0%
International Stocks Value - Fama/French International Value Index Small Cap - DimensionalInternational Small Cap Simulated Index Small Cap Value - DimensionalInternational Small Cap Value Simulated Index Emerging Markets - MSCI Emerging Markets Index Emerging Markets Value - Fama/French Emerging Markets Small Cap Index Emerging Markets Small Cap - Fama/French Emerging Markets Small Cap Index	0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%	6.0% 2.0% 1.0% 1.0% 0.6% 0.6% 0.8%	12.0% 4.0% 2.0% 2.0% 1.2% 1.2% 1.6%	18.0% 6.0% 3.0% 3.0% 1.8% 1.8% 2.4%	24.0% 8.0% 4.0% 4.0% 2.4% 2.4% 3.2%	30.0% 10.0% 5.0% 5.0% 3.0% 3.0% 4.0%
Bonds One-Year - Merill Lynch One-Year Treasury Note Index Two Year - CItigroup WGBI Hedged Index 1-3 Years Five-Year Government - Lehman Brothers Tresury Bond Indx 1-5 Years Five-Year Global - Citigroup WGBI Hedged Index 1-5 Years	100.0% 25.0% 25.0% 25.0% 25.0%	80.0% 20.0% 20.0% 20.0% 20.0%	60.0% 15.0% 15.0% 15.0% 15.0%	40.0% 10.0% 10.0% 10.0% 10.0%	20.0% 5.0% 5.0% 5.0% 5.0%	0.0% 0.0% 0.0% 0.0% 0.0%

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Historical returns of model portfolios (1973 - 2006)^*

(100% bonds) (20% stocks, 80% bonds) (40% stocks, 60% bonds) (60% stocks, 40% bonds) (80% stocks, 20% bonds) (100% stocks)

Asset Class Allocation: Very Conservative Conservative Moderate Normal Aggressive Very Aggressive

One Year Total Return 4.1% 8.0% 12.0% 16.1% 20.4% 24.7%

Five Years Annualized Return 3.0% 5.9% 8.7% 11.5% 14.3% 17.0%

Ten Years Annualized Return 4.8% 6.4% 8.0% 9.5% 10.9% 12.2%

Twenty Years Annualized Return 5.9% 7.6% 9.3% 10.9% 12.3% 13.7%

Annualized Return 1973-2006 7.4% 9.0% 10.6% 12.1% 13.6% 14.9%

Thirty Three-Year Model Annualized Standard Deviation 2.4% 3.6% 6.1% 8.9% 11.8% 14.6%

Growth of $1 from 1973 to 2006 $11.25 $18.94 $30.96 $49.13 $75.66 $113.04

^*Actual returns may vary from model returns due to differences in asset mix, fees, timing of contributions and withdrawals, and other factors. Past performance does not guarantee future returns.

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^*Actual returns may vary from model returns due to differences in asset mix, fees, timing of contributions and withdrawals, and other factors. Past performance does not guarantee future returns.

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^*Actual returns may vary from model returns due to differences in asset mix, fees, timing of contributions and withdrawals, and other factors. Past performance does not guarantee future returns.

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^*Actual returns may vary from model returns due to differences in asset mix, fees, timing of contributions and withdrawals, and other factors. Past performance does not guarantee future returns.

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