• Call Us @ (905)731-9800

CGAP Disclosures


  • Disclaimer

    Use of this Website is acknowledgement that you have read and understood this complete page.

    The purpose of this site is to provide information. Our services are not completely described here and you should contact us directly if you are interested in knowing about or using Certified Dealer investment advisory services.

    We provide investment information that we believe to be useful and accurate. However, there cannot be any guarantees. There are many different interpretations of investment statistics and many different ideas about how to best use them. None of these offer guarantees. However, we believe that passive index fund investing is the best of these.

    We also provide links to information that we also believe to be useful and accurate. However, we have no control over this off-site information and cannot guarantee its accuracy.

    Your use of this Website is acknowledgement that you have read and understood the disclaimer.

    THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY LINKED INTERNET SITE.

    Nothing on this site should be interpreted to state or imply that past results are an indication of future performance. This site does not constitute a complete description of our educational services and is for informational purposes only.

    It is in no way a solicitation or an offer to sell securities or investment advisory services. Information throughout this internet site, whether quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission thereof to the user. All investments involve risk, including foreign currency exchange rates, political risks, different methods of accounting and financial reporting, and foreign taxes.

    This site is for the use of subscribers and Certified Dealers of Canadian Great Advisors, Inc. It is not to be used by any other investment advisor or investment professional as an information/marketing materials source, asset allocator, risk survey or risk tolerance assessment, or for any other purpose. The right to download, store and/or output any material on this internet site is granted for viewing use only and this grant only applies to subscribers and Certified Dealers of Canadian Great Advisors, Inc. Reproduction or editing by any means, mechanical or electronic, in whole or in part, without the express written permission of Canadian Great Advisors, Inc. is strictly prohibited and subject to prosecution under Canadian, Ontario, and International copyright and trademark laws.

    At certain places on this internet site, live 'links' to other Internet addresses can be accessed. Such external Internet addresses contain information created, published, maintained, or otherwise posted by institutions or organizations independent of Canadian Great Advisors Inc.

    Canadian Great Advisors does not endorse, approve, certify, or control these external Internet addresses and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, timeliness, or correct sequencing of information located at such addresses. Use of any information obtained from such addresses is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference therein to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favouring by Canadian Great Advisors. Your use of this site is acknowledgment that you have read and understood the full disclaimer. Past performance does not guarantee future results.

    WARNING: Past performance does not guarantee future results. Investment returns and principal value will fluctuate, so that investors' shares, when sold, may be worth more or less than their original cost. Investing in any mutual fund, index or actively managed, does not guarantee that an investor will make money, avoid losing capital, or indicate that the investment is risk-free. Actively managed funds sometimes outperform index funds. You just don't know in advance which actively managed fund will outperform the appropriate index. Just because a mutual fund is an index mutual fund, it does not guarantee a performance superior to an actively managed mutual fund. There are no absolute guarantees in investing. When reviewing any back tested performance information on this internet site, please read the Disclosure for Back tested Performance Information (click here to read the Disclosure for Back tested Performance Information.)

  • Privacy Policy

    We respect your privacy.

    Any personal information collected is not shared with any other financial firm, advisor, or third party.

    If after one month you are not a client, your records will be destroyed.

    We consider privacy to be fundamental to our visitors.

    Since we were founded, we have been committed to maintaining the confidentiality, integrity, and security of all visitor personal information entrusted to us.

    Internal policies have been developed to protect this confidentiality, while allowing visitors needs to served.

    By using our services, you signify your consent to the collection, use, and disclosure of your personal information in accordance with this privacy policy.

    Canadian Great Advisors is committed to safeguarding your privacy online. Please be aware that websites that have links to our site or sites to which we have links may collect personally identifiable information about you. The information practices of those websites are not covered by this privacy statement.

    We may send you email notifications of pertinent information, such as an electronic newsletter.

    If you do not wish to receive such information, you may opt out by replying to any unwanted emails or by postal mail to Canadian Great Advisors Inc., Suite "C", 300 Giles Blvd. East, Windsor, Ontario, Canada N9A 4C4.

  • Disclosure for back-tested & simulated data

    1. The performance information presented in certain charts or tables represent back tested performance based on combined simulated index data and live (or actual) mutual fund results from January 1, 1927 to the period ending date shown, using the strategy of buy and hold and on the first of each year annually rebalancing the globally diversified portfolios of index funds. Back tested performance is hypothetical (it does not reflect trading in actual accounts) and is provided for informational purposes only to indicate historical performance had the index portfolios been available over the relevant time period. CGAP refers to this hypothetical data as a Simulated Experience (SE). The CGAP (Canadian Great Advisors Portfolio) indexing investment strategy is based on the principles of Modern Portfolio Theory and the Fama and French Three Factor Model for Equities and Two Factor Model for Fixed Income. Index portfolios are designed to provide substantial global diversification in order to reduce investment concentration and the resulting potential increased risk caused by the volatility of individual companies, indexes, or asset classes.
    2. A review of the CGAP Index Data Sources, CGAP Indexes Time Series Construction and other policies are an integral part of this disclosure and should be read in conjunction with this explanation of back tested performance information presented. CGAP defines index funds as mutual funds that follow a set of rules of ownership that are held constant regardless of market conditions. An important characteristic of an index fund is that its rules of ownership are not based on a forecast of short-term events. Therefore, an investment strategy that is limited to the buying and rebalancing of a portfolio of index funds is often referred to as passive investing, as opposed to active investing. Simulated index data is based on the performance of indexes and live mutual funds as described in the CGAP Indexes Data Sources page. The index mutual funds used in CGAP's Index Portfolios are CGAP's best estimate of a mutual fund that will come closest to the index data provided in the simulated indexes. Simulated index data is used for the period prior to the inception of the relevant live mutual fund data and an equivalent mutual fund expense ratio is deducted from simulated index data. Live (or actual) mutual fund performance is used after the inception date of each mutual fund. The CGAP Indexes Times Series Construction goes back to January 1927 and consistently reflects a tilt towards small cap and value equities over time, with an increasing diversification to international markets, emerging markets and real estate investment trusts as data became available. The stitching together of index and live fund data and adding international markets, emerging markets and REITs only had a slight impact on risk and return over this 85 year period. Instead, it demonstrates the value of a small cap and value tilt in global equity markets, since over the same period a Simulated S&P 500 Index only had a return of 9.75% (with no fees deducted), at a standard deviation of 19.22%. Back tested performance is calculated by using a computer program and monthly returns data set that start with the first day of the given time period and evaluates the returns of simulated indexes and other index mutual funds.
    3. Back tested performance does not represent actual performance and should not be interpreted as an indication of such performance. Actual performance for client accounts may be materially lower than that of the index portfolios. Back tested performance results have certain inherent limitations. Such results do not represent the impact that material economic and market factors might have on an investment adviser's decision-making process if the adviser were actually managing client money. Back tested performance also differs from actual performance because it is achieved through the retroactive application of model portfolios (in this case, CGAP's Index Portfolios) designed with the benefit of hindsight. As a result, the models theoretically may be changed from time to time and the effect on performance results could be either favorable or unfavorable.
    4. Back tested performance results assume the reinvestment of dividends and capital gains and annual rebalancing at the beginning of each year. It is important to understand that the assumption of annual rebalancing has an impact on the monthly returns reported for the CGAP Index Portfolio. For annual rebalancing, the year-to-date return is calculated with the assumption that the portfolio is perfectly in balance at the beginning of the year. The latter assumption underlies the returns shown for the CGAP Index Portfolios. In actual portfolios, however, rebalancing occurs at no set time, and such actions are dependent on both market conditions and individual client liquidity inflows and outflows, along with the cost impact of such transactions on the overall portfolio. Therefore actual monthly and year-to-date returns will differ from the CGAP Returns Calculator. The reason for this difference is that with annual rebalancing, the monthly returns are calculated from the ratio of the year-to-date growth of $1.00 at the end of the month to the year-to-date growth of $1.00 at the beginning of the month. The performance of the CGAP Index Portfolios reflects and is net of the effect of CGAP's annual investment management fee of 1.0%, billed monthly, unless stated otherwise. Monthly fee deduction is a requirement of our software used for back testing. This fee is the highest fee CGAP charges. Depending on the amount of your assets under management, your investment management fee may be less. Back tested risk and return data is a combination of live (or actual) mutual fund results and simulated index data, and mutual fund fees and expenses have been deducted from both the live (or actual) results and the simulated index data. When CGAP Indexes are shown in CGAP Index Portfolios, all returns data reflects a deduction of 1.0% annual investment advisory fee, which is the maximum CGAP fee. Since we accept no fees from investment product firms, CGAP compares index funds based on net asset value returns, which are net of the mutual fund company expense ratios only. Although index mutual funds minimize tax liabilities from short and long-term capital gains, any resulting tax liability is not deducted from performance results.
    5. For all data periods, annualized standard deviation is presented as an approximation by multiplying the monthly standard deviation number by the square root of 12.
    6. The tax-managed index funds are not used in calculating the back tested performance of the index portfolios, unless specified in the table or chart.
    7. Performance results for clients that invested in accordance with the CGAP Index Portfolios will vary from the back tested performance due to market conditions and other factors, including investments cash flows, mutual fund allocations, frequency and precision of rebalancing, tax-management strategies, cash balances, lower than 1.0% advisory fees, varying custodian fees, and/or the timing of fee deductions. As the result of these and potentially other variances, actual performance for client accounts may differ materially from (and may be lower than) that of the index portfolios. Clients should consult their account statements for information about how their actual performance compares to that of the index portfolios.
    8. As with any investment strategy, there is potential for profit as well as the possibility of loss. CGAP does not guarantee any minimum level of investment performance or the success of any index portfolio or investment strategy. All investments involve risk and investment recommendations will not always be profitable.
    9. Past performance does not guarantee future results.
    10. CGAP Index Portfolio Value Data is based on a starting value of one, as of January 1, 1927.
    11. DISCLAIMER: THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION PROVIDED HEREIN OR ON THE MATERIAL PROVIDED. This document does not constitute a complete description of our investment services and is for informational purposes only. It is in no way a solicitation or an offer to sell securities or investment advisory services. Any statements regarding market or other financial information is obtained from sources which we and our suppliers believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission thereof to the user. All investments involve risk, including foreign currency exchange rates, political risks, market risk, different methods of accounting and financial reporting, and foreign taxes. Your use of these materials, including www.CGAP.com website is your acknowledgement that you have read and understood the full disclaimer as stated above. CGAP Index Portfolios, times series, standard deviations, and returns calculations are determined in the Dimensional Returns W program. © Copyright 1999-2012, OTHER, Inc.

    Other Information CGAP Considers to be Helpful to Potential Clients

    It is CGAP's advice that the value of having a longer time series exceeds the concerns of index substitutions over the 1927 to present period. Due to the very high standard deviations of returns (21.99%) a 40 year or more sample size of data is recommended to obtain a T-statistic of 2 that allows a conclusion at a 95% or higher level of certainty. In other words, in CGAP's opinion, smaller sample sizes introduce larger errors than the errors introduced by stitching together indexes and live data over time. This is the advice CGAP provides to its clients.

    CGAP is not paid any brokerage commissions, sales loads, fees, or any form of compensation from any mutual fund company or broker dealer. The only source of compensation is the educational and licensing charges CGAP charges to Certified CGAP dealers for portfolio allocation services and data.

    Not all CGAP readers will follow our recommendations, and depending on unique and changing client and market situations, your advisor may customize the construction and implementation of the index portfolios for particular clients, including the use of tax-managed mutual funds, tax-loss-harvesting techniques and rebalancing frequency and precision. Some clients substitute the mutual funds recommended by CGAP with investment options available through their other accounts, thereby creating a custom asset allocation. The performance of custom asset allocations may differ materially from (and may be lower than) that of the index portfolios.

    CGAP index portfolios were reconstructed to address the following issues:
    I.) The availability of new and better sources of data for historical returns.
    II.) The correction of errors in the prior data.
    III.) Changes to the substitution of U.S. index data for international indexes in years prior to the existence of international data.
    All live mutual fund portfolios tracked in CGAP indexes are net of OTHER fees.

    Indexes and Simulations are also net of estimated OTHER Fees CGAP Advisory fees are deducted when CGAP indexes are presented in the CGAP Index Portfolios.

  • Fee Disclosure

    CGAP CANADA is not a registered dealer broker in any province or territory in Canada. CGAP CANADA is a financial data and educational provider of portfolios and historical index data.

    All portfolios designed and managed by De Thomas Financial Corp, an independent investment fund dealer since 1987.

    Our primary purpose is to match people with INDEX portfolios by carefully measuring risk and risk exposure. This results in optimal returns for investors. CGAP CANADA does not and will not conduct any trading, or advising directly with visitors to this website.

    All advice and trading activities (investing, buying or selling as well as re-balancing of any portfolios) will always be conducted by licensed and registered dealer De Thoms Financial Corp. CGAP CANADA will not be engaging in or holding itself out as engaging in the business of advising others as to the investing in or the buying or selling of securities.

    The Portfolio Simulator is one of the best ways to thoroughly analyze the value of any strategy. According to the Prudent Investor Rule, risk and time are so directly related that all investors have a duty and responsibility to analyze and make conscious decisions concerning the levels of risk appropriate to their individual situation.

  • The CGAP CANADA Risk and Return Calculator

    89 Years (1068 months) of data.

    Compare the past returns of your current investments to the core index portfolio. If you have access to other index (ETF or mutual fund) or actively managed fund data, you can compare those to the CGAP indexes.

    We suggest twenty years be the minimum period for meaningful comparisons.


    FOOTNOTES:

    *When CGAP CANADA Indexes are shown in index portfolios (Indexes), all returns data reflects a deduction of fund mer fees, CGAP compares index funds based on net asset value returns, which are net of the mutual fund company expense ratios.

    The annualized standard deviation number is presented as an approximation by multiplying the monthly standard deviation by the square root of twelve (3.464), the number of periods in a year. Note that the standard deviation computed from annual data may differ materially from this estimate.

    Returns of the twenty CGAP CANADA index portfolios are shown net of all fees.

    CGAP CANADA Indexes have been constructed net of typical mutual fund fees. Back tested performance is hypothetical (it does not reflect trading in actual accounts) and is provided for informational purposes to indicate historical performance had the index portfolios been available over the relevant period.

    For a complete explanation of back tested performance, please click and read this button (Back tested Performance Info).

    ***Withdrawals are assumed to occur monthly at the end of each month.

    ****CGAP CANADA Index and CGAP Portfolio™ data based on starting value of one, as of Jan 1, 1927. Sources and Disclosures:
    SOURCE DATA: DFA, CRSP, IFA, GLOBEFUND (THOMPSON MEDIA), INVESCO, NATIONAL BANK, TD FUNDS, GOOGLE FINANCE.

  • CGAP Time Series Construction