What is QAIB?Dalbar's 2010 Quantitative Analysis of Investor Behavior (QAIB) is the sixteenth annual edition of a report that examines the returns that investors actually realize and the behaviors that produce those returns.

Since 1994, Dalbar’s QAIB has been measuring the effects of investor decisions to buy, sell
and switch into and out of mutual funds over both short- and long-term time frames. The
results consistently show that the average investor earns less – in many cases, much less –
than mutual fund performance reports would suggest.

The goal of QAIB is to educate investors and the professionals who advise them on the
importance of behavior in determining the outcome of any investment or savings strategy.
QAIB also offers guidance on how and where investment behaviors can be improved.

QAIB 2010 examines real investor returns in equity, fixed income and asset allocation funds.
The analysis covers the 20-year period ended December 31, 2009, encompassing both the
drop at the turn of the millennium and the crash of 2008. This year’s report also discusses
how Modern Portfolio Theory failed to protect investors from the precipitous losses of the
past couple of years and offers alternatives to this long-standing standard of investment
strategy.

Whether the mutual fund industry is enjoying rapid expansion in times of economic boom,
or is being battered by the bears, the key findings uncovered in Dalbar’s first study from
1994 remain true:

• Investment results are more dependent on investor behavior than on fund performance.
• Mutual fund investors who hold on to their investments are more successful than those who time the market.

What does the Report include?This report includes:

• Investor Returns – The bottom line: how did investors fare over the long term whencompared against broad market indices?

• Investor Behavior – A look at how investor behavior helps determine that bottom line,and a discussion of why investors do what they do.

• QAIB Through the Years – This section examines the difference in average investorreturns and buy-and-hold investor returns since 1999.

• The Financial Advisor’s Role and Alternative Investment Strategies – A selection ofstrategies that advisors can use with investors to take emotion out of the decision-making
  process and reap the best possible returns regardless of fund choice.

• A New Approach to Retirement Income – This article, submitted by Jack Gardner, President of Thornburg Securities Corp., presents new strategies for retirement planning. 

What is the Cost of the Report?

• Immediate electronic version-Adviser Edition ($99 USD)
• Immediate electronic version- Full QAIB Report ($750 USD)

How do I order QAIBYou can order the QAIB report by calling 617-723-6400 or at www.QAIB.com.