History of Changes

In January 2008, IFC introduced three new indexes and eighteen socially responsible index portfolios (IFC Index Portfolios) which were constructed from these three indexes. The new indexes introduced were: IFC US Social Core 2 Equity Index, IFC Emerging Markets Social Core Index, and IFC International Real Estate Index. All three use live DFA fund data for as long as such data has been available. Prior to live fund data, the indexes use index data supplied by Dimensional Fund Advisors (DFA), while being modified for fund management fees.

In November 2012, IFC changed the allocations and the historical returns for its IFC Index Portfolios to reflect the introduction of the DFA International Social Core Equity Portfolio (DSCLX). Prior to this, the international developed equity asset class was unavailable in a socially responsible implementation. As the table below shows, clients who were invested in the old allocation from the time it became available (January 2008) likely did better than they would have done with the new allocation. The difference is not statistically significant, and it is IFC’s advice that going forward having an exposure to international developed equities will provide a substantial diversification benefit to socially responsible investors.


Monthly Performance: 1/2008 - 10/2012
Data Series Annualized Return (%) Annualized Standard Deviation (%)
IFC Index Portfolio 50 (Before November 2012) 2.54 13.89
IFC Index Portfolio 50 (After November 2012) 2.02 13.91
IFC Index Portfolio 90 (Before November 2012) 0.74 24.16
IFC Index Portfolio 90 (After November 2012) -0.04 24.19

In September 2013, the name of each portfolio was updated to equate to the percentage of equities (stocks) in each portfolio. For example, the IFC Index Portfolio 60 became 60% equities and 40% fixed income. At that time, IFC expanded to 20 Index Portfolios, ranging from 5% equities to 100% equities in 5% increments (5, 10, 15, and so on to 100).

In April 2016, IFC changed the allocations and the historical returns for its IFC Index Portfolios to reflect the introduction of the DFA Social Fixed Income Portfolio (DSFIX). Prior to this, the fixed income asset class was composed of four unscreened bond funds as a social screened alternative did not exist. Although the duration of the unscreened bond fund mix was less than that of the socially screened bond fund, the increase in duration enhances the portfolio on a risk adjusted basis, and it enables IFC to provide a fully screened portfolio for socially responsible investors.

As of March 2019, IFC updated the back-tested performance of all IFC Indexes to include the latest Index data available, and amended all applicable index data with the corresponding funds most recent expense ratio. IFC International Value back-test was changed, removing MSCI EAFE Index (net Div), and replacing it by extending Dimensional UK Large Value Index. IFC International Large Company Index back-test was changed, removing MSCI EAFE (net Div) and replacing it with Dimensional UK Market Index. IFC Emerging Markets Index back-test was changed, removing MSCI Emerging Markets Index (net Div) and replacing it by extending the 50% IFC International Value Index + 50% IFC International Small Index. IFC Investment Grade Index and IFC Social Fixed Income Index back-test were changed, removing IA SBBI US IT Govt. TR and replacing it with Long-Term Corporate Bond. IFC Nasdaq Index changed, extending the Fama/French US Small Growth Simulated Portfolio (ex. Utilities), Nasdaq Composite Index (ex div), and the Nasdaq Composite TR (XCMP) (Source: Morningstar), while replacing the Nasdaq 100 TR Index returns. IFC Large Growth Index back-test was changed to Dimensional US Large Cap High Price-to-Book Index. IFC U.S. Small Growth Index was changed, removing Dimensional Small Growth Index and replacing it with the Fama/French Small Growth Research Index. These changes to the back-test changed the returns of the IFC Index Portfolios. The overall impact of these changes for 91 years and two months is shown in the two tables below:


Annualized Returns from 1/1928 to 2/2019:
IFC Index Portfolio 5 IFC Index Portfolio 50 IFC Index Portfolio 100
Old Return (Before March 2019) 4.50% 7.79% 10.17%
New Return (After March 2019) 4.59% 7.77% 10.07%
Old Standard Deviation (Before March 2019) 4.36% 10.44% 20.22%
New Standard Deviation (After March 2019) 5.22% 10.90% 20.40%