Morningstar Direct SM Asset Flows Commentary: United States

Transcription

1 ? Morningstar Direct SM Asset Flows Commentary: United States Morningstar Manager Research 17 November 2016 The October flows report will an abbreviated version while Alina Lamy is out on maternity leave Data through October 31, 2016 U.S. Mutual Funds and Exchange- Traded Products Alina Lamy Senior Analyst Markets Research Tom Lauricella Editor Morningstar Direct Ahead of U.S. Election, Asset Flows Continued Well Worn Path Investors steered a steady course in October when it came to asset flows, extending the longstanding trends of shifting new money into taxable fixed income funds, passively-managed U.S. stock funds and heading to the exits of actively-managed U.S. stock funds. Although the November bond-market sell-off following the U.S. presidential election could put a dent into taxable bond flows, once again the group led the pack in October with $16.2 billion of net inflows. As had been the case earlier in the year, the bias was for passively managed bond funds, where $9.6 billion of inflows outpaced the take for active bond funds by roughly $3 billion. Over the past year, passively-managed bond funds have taken in $136.7 billion, far outstripping the $16.4 billion net for active bond funds. Total (Active and Passive) Estimated Net Flows Oct Assets 1 Year $Mil 2016 $Bil U.S. Equity (5,988) (57,292) 6,149 Sector Equity (4,292) (10,526) 748 International Equity 1,727 10,737 2,343 Allocation (2,735) (49,961) 1,203 Taxable Bond 16, ,077 3,243 Municipal Bond 1,803 67, Alternative 230 4, Commodities 1 18, All Long Term 6, ,519 14,686 Money Market (8,354) (62,901) 2,622 The grim news for actively-managed stock funds continued in October, with another month of steady, sizeable outflows. Active U.S. equity funds saw net withdrawals of $23.5 billion in October, which followed on the heels of outflows totaling $23.6 billion for September and

2 Morningstar Manager Research 17 November 2016 Page 2 of 7 $25.4 billion for August. Active U.S. stock funds have bled $248.5 billion over the last twelve months and $213.8 billion so far in That far outpaces 2015 s full-year exodus, where active U.S. stock outflows netted $169 billion. Actively-managed international equity funds were also in the red for October with a $5.6 billion outflow. YTD 2016 U.S. Asset Flows (millions) US Equity Taxable Bond International Equity Commodities Sector Equity Alternative Municipal Bond Allocation Passive Active (250,000) (150,000) (50,000) 50, ,000 On the passive side of the fence it was again a different story for U.S. stock funds with $17.5 billion in inflows, bringing the one-year inflow total to $191.2 billion. Active Passive Estimated Net Flows* Oct Assets Oct Assets $Mil Year $Bil Year $Bil U.S. Equity (23,490) (248,529) 3,439 17, ,236 2,711 Sector Equity (3,465) (25,956) 375 (827) 15, International Equity (5,651) (55,867) 1,443 7,378 66, Allocation (3,739) (53,946) 1,141 1,004 3, Taxable Bond 6,561 16,394 2,331 9, , Municipal Bond 1,535 60, , Alternative (1,058) (2,989) 170 1,288 7, Commodities (59) 1, , All Long Term (29,363) (308,536) 9,580 36, ,055 5,105 Money Market (8,354) (62,901) 2,622 *Includes liquidated and merged funds. Source: Morningstar Direct Asset Flows.

3 Morningstar Manager Research 17 November 2016 Page 3 of 7 Bond Investors Getting Defensive? Intermediate-Term Bond funds continued to be the destination of choice during October, taking in $9.4 billion when active and passive funds are combined. That extended the category s lead as top inflow destination for 2016 with $112 billion of inflows. For the last twelve months, the category s take is $121.7 billion. But for the second month running, Short-Term Bond funds cracked the top five inflow list, with $2.8 billion of inflows for October. In a potential sign of investors gearing up for a Federal Reserve rate increase before year end, Bank Loan Funds, which have been in net redemption for 2016, took in a total of $2.5 billion. Active Passive Estimated Net Flows* Oct Assets Oct Assets $Mil Year $Bil Year $Bil Leading Intermediate-Term Bond 3,650 53, ,771 68, Foreign Large Blend (408) (9,271) 343 4,767 69, Large Blend (6,344) (61,754) , ,742 1,722 Short-Term Bond 1,130 6, ,666 11, Bank Loan 1,887 (10,017) ,725 7 Lagging Large Growth (8,775) (90,657) 1,128 3,442 6, High Yield Bond (1,238) (3,306) 263 (1,631) 1, World Allocation (2,321) (37,145) (43) 0 Real Estate (456) (1,255) 63 (1,842) 11, Health (1,722) (13,661) 100 (548) (6,830) 40 *Excludes money market. Source: Morningstar Direct Asset Flows On the flipside of the ledger, the High Yield Bond category saw outflows of $2.9 billion, split basically evenly between active and passive strategies. Real Estate funds, which saw inflows during September, suffered a reversal of fortune, with $2.3 billion of outflows. Top Active Categories Oct-16 YTD 1-Yr Intermediate-Term Bond 3,650 51,080 53,281 Bank Loan 1,887 (2,471) (10,017) Ultrashort Bond 1,349 5,475 5,677 Short-Term Bond 1,130 9,078 6,314 Muni National Interm 1,104 21,169 25,650

4 Morningstar Manager Research 17 November 2016 Page 4 of 7 Bottom Active Categories Oct-16 YTD 1-Yr Large Growth (8,775) (88,577) (90,657) Large Blend (6,344) (52,326) (61,754) Large Value (3,121) (16,144) (24,481) World Allocation (2,321) (28,751) (37,145) Health (1,722) (13,318) (13,661) Among equity fund categories, the story was largely about the active/passive split. Among Large Growth funds, active outflows of $8.8 billion swamped $3.4 billion of passive inflows. But for Large Blend, $10.2 billion of passive inflows was enough to lead the category into the top five for overall inflows despite $6.3 billion in active outflows. Diversified Emerging Markets strategies saw another month of inflows on the passive side, hitting $2.8 billion. Year-to-date flows for passive emerging markets topped $25 billion as of the end of October. Unfortunately for those investors, emerging markets have taken it on the chin during the immediate aftermath of the election. Top Passive Categories Oct-16 YTD 1-Yr Large Blend 10, , ,742 Intermediate-Term Bond 5,771 60,919 68,448 Foreign Large Blend 4,767 50,507 69,554 Large Growth 3, ,195 Diversified Emerging Mkts 2,834 25,682 27,443 Bottom Passive Categories Oct-16 YTD 1-Yr Real Estate (1,842) 10,632 11,944 High Yield Bond (1,631) 3,210 1,258 Europe Stock (1,548) (21,544) (20,801) Corporate Bond (931) 14,101 14,620 Consumer Defensive (930) (606) (801) Play It Again Sam For Fund Company Flows Vanguard Group yet again dominated the flow tables in October, taking in money on both the passive and active sides of the house - $20.7 billion in passive and $1.2 billion for active funds. The one-year total approached $33 billion for passive and Vanguard as of the end of October and over $240 billion for passive.

5 Morningstar Manager Research 17 November 2016 Page 5 of 7 In fact, in the first ten months of 2016, Vanguard s $233.9 billion of inflows have already topped the firm s full-year 2015 intake of $230.4 billion. Another striking comparison: if the net flows posted thus far in 2016 by the other 800-plus U.S. fund companies in Morningstar s database are added up, the result are net outflows of $65.6 billion. Among passive fund managers, BlackRock/iShares clocked in second behind Vanguard at a net positive of $6.1 billion, followed by Fidelity Investments at $3.6 billion. Active Passive Estimated Net Flows Oct Assets Oct Assets $Mil Year $Bil Year $Bil Vanguard 1,186 32, , ,106 2,429 American Funds (1,589) (2,040) 1,237 Fidelity Investments (6,385) (47,823) 975 3,600 31, BlackRock/iShares (1,350) (17,092) 206 6, , T. Rowe Price (1,412) (2,233) SPDR State Street Global Advisors 130 1,971 4 (1,648) 19, Franklin Templeton Investments (4,036) (45,552) 380 PIMCO (561) (24,348) 302 (77) (194) 4 Dimensional Fund Advisors 2,063 21, JPMorgan (1,297) (7,928) Source: Morningstar Direct Asset Flows For active fund managers, Metropolitan West placed second as a firm after Vanguard with inflows of $1.1 billion. That gain was paced by Met West s Total Return Bond Fund, which has been a prime beneficiary of investor money following Bill Gross departure from PIMCO in But PIMCO Income also placed in the top five for October inflows as investors continued to head to the Silver-rated offering in search of its high yield. On the passive side, Vanguard practically ran the table during October, capturing four out of the five slots.

6 Morningstar Manager Research 17 November 2016 Page 6 of 7 Top-Flowing Active and Passive Funds Assets Assets Estimated Net Flows Oct Year Oct 2016 Oct 2015 $Mil $Mil $Mil Active Funds Metropolitan West Total Return Bond Fund 1,114 10,347 81,512 68,647 PIMCO Income Fund 1,034 13,020 67,610 51,177 Active Port Multi-Mgr Dirctionl Alts Fd 1,031 1,031 1,031 0 JHancock International Strat Eq Allc Fd Strategic Advisers Short Duration Fund 629 1,577 8,858 7,198 Passive Funds Vanguard Total Stock Market Index Fund 4,701 45, , ,392 Vanguard 500 Index Fund 3,941 30, , ,677 Vanguard Total Bond Market Index Fund 2,153 21, , ,946 Vanguard Total Intl Stock Idx Fund 2,062 33, , ,571 ishares Core S&P 500 1,756 8,531 79,875 69,919 Bottom-Flowing Active and Passive Funds Estimated Net Flows $Mil Assets Assets Oct Year Oct 2016 Oct 2015 $Mil $Mil Active Funds Templeton Global Bond Fund (1,457) (16,317) 42,430 58,810 PIMCO Total Return Fund (1,301) (14,060) 82,598 93,718 JPMorgan Short Duration Bond (1,194) (1,314) 9,509 10,749 Fidelity Series High Income Fund (1,036) (1,632) 4,206 5,451 Fidelity Growth Company Fund (950) (3,193) 35,644 40,393 Passive Funds Vanguard Institutional Index Fund (1,816) (3,477) 203, ,700 ishares iboxx $ Invst Grade Crp Bond (1,676) 5,174 30,912 24,739 SPDR Blmbg Barclays High Yield Bd ETF (1,035) (658) 11,572 11,892 ishares Edge MSCI Min Vol USA (891) 6,074 13,215 6,559 ishares US Real Estate (760) (539) 3,949 4,485 Source: Morningstar Direct Asset Flows

7 Morningstar Manager Research 17 November 2016 Page 7 of 7 Note: The figures in this report were compiled on Nov. 17, 2016, and reflect only the funds that had reported net assets by that date. The figures in both the commentary and the extended tables are survivorship-bias-free. This report includes both mutual funds and exchange-traded funds, but not funds of funds unless specifically stated. Important methodology note: Morningstar computes flows using the approach that is standard in the industry: Estimated net flow is the change in assets not explained by the performance of the fund. Our method assumes that flows occur uniformly over the course of the month. Adjustments for mergers are performed automatically. When liquidated funds are included, the final assets of the fund are counted as outflows. Reinvested dividends are not counted as inflows. We use fund-level reinvestment rates to improve accuracy in this respect. We make ad hoc adjustments for unusual corporate actions such as reverse share splits, and we overwrite our estimates with actual flows if managers are willing to provide the data to us. Please click here for a full explanation of our methodology.? 22 West Washington Street Chicago, IL USA Morningstar All Rights Reserved. The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. To order reprints, call To license the research, call

8 Morningstar Direct SM Publishing Date: Page 1 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % 1-Mo YTD 1 Large Blend 3,819 3,819 47,810 58,997 2, , (3.94) Large Growth (5,333) (5,333) (88,559) (84,462) 1, , (5.04) Intermediate-Term Bond 9,421 9, , ,729 1, , (1.27) Large Value (2,079) (2,079) 7,387 6,024 1, (3.14) Foreign Large Blend 4,359 4,359 46,422 60, (4.45) Allocation--50% to 70% Equity (998) (998) (2,620) (2,937) (4.12) Diversified Emerging Mkts 2,418 2,418 22,079 19, (0.25) World Stock (1,477) (1,477) (14,794) (16,956) (5.01) Short-Term Bond 2,796 2,796 18,754 17, (0.02) Mid-Cap Blend (3,045) (2,565) (5.41) Foreign Large Growth (1,029) (1,029) (5,657) (4,741) (6.27) High Yield Bond (2,869) (2,869) 12,482 (2,048) World Allocation (2,320) (2,320) (28,757) (37,187) (3.75) Small Blend 1,234 1,234 2,607 3, (7.92) Mid-Cap Growth (1,912) (1,912) (20,863) (22,301) (7.58) Mid-Cap Value (999) (999) (3,725) (4,645) (4.39) World Bond (7) (7) (8,386) (10,893) (3.30) Allocation--30% to 50% Equity (116) (116) 602 (2,369) (2.52) Multisector Bond ,724 (120) (0.37) Muni National Interm 1,337 1,337 23,804 28, (1.98) Small Growth (804) (804) (11,575) (14,212) (11.34) Real Estate (2,298) (2,298) 9,768 10, (9.79) Corporate Bond (651) (651) 24,571 24, (1.32) Foreign Large Value (814) (814) 23 (2,155) (1.76) Health (2,271) (2,271) (19,317) (20,491) (18.76) (27.00) 26 Small Value (524) (524) 2,851 2, (6.48) Muni National Short 1,053 1,053 7,677 8, (0.22) Inflation-Protected Bond 1,897 1,897 9,207 9, (0.59) Allocation--70% to 85% Equity (266) (266) (958) (1,425) (4.07) Intermediate Government ,262 8, (1.01) Nontraditional Bond (381) (381) (20,355) (26,470) Bank Loan 2,490 2,490 (34) (8,292) High Yield Muni (830) (830) 10,183 11, (2.23) Muni National Long ,299 7, (3.04) Ultrashort Bond 1,443 1,443 3,528 3, Morningstar, Inc. All Rights Reserved. For institutional use only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. ß

9 Morningstar Direct SM Publishing Date: Page 2 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % 1-Mo YTD 36 Technology 1,092 1,092 (5,696) (1,733) (4.69) Emerging Markets Bond 1,312 1,312 10,481 8, (1.15) Short Government (1,936) (0.17) Commodities Precious Metals ,853 14, (8.61) Europe Stock (1,909) (1,909) (24,604) (23,890) (5.63) (6.57) 41 Multialternative (672) 3, (1.72) Global Real Estate (99) (99) (2,219) (3,086) (9.96) Equity Energy (106) (106) 3,296 4, (8.78) Preferred Stock ,471 11, (0.73) Energy Limited Partnership ,604 4, (8.53) Muni California Long (128) (128) 2,445 2, (2.39) Financial 1,029 1,029 (5,608) (3,356) Natural Resources (876) (876) (696) (1,561) (4.05) Foreign Small/Mid Growth (21) (21) (1,291) (549) (5.25) (0.87) 50 Utilities (656) (656) 2, (0.70) Tactical Allocation (118) (784) (3.83) Long-Short Equity (395) (395) (5,872) (8,302) (3.13) Managed Futures ,959 10, (4.13) (4.38) 54 Commodities Broad Basket ,038 2, (0.93) Japan Stock (493) (493) (11,506) (12,262) Foreign Small/Mid Blend (272) (126) (4.87) Miscellaneous Region (3,258) (3,955) Equity Precious Metals ,248 6, (13.39) Long Government (805) (805) 1, (7.45) Muni California Intermediate ,567 4, (1.92) Foreign Small/Mid Value (54) (54) (597) (503) (3.05) Consumer Cyclical (339) (339) (6,257) (5,451) (4.41) (0.58) 63 Pacific/Asia ex-japan Stk (8) (8) (11) (809) (4.51) Muni Single State Long ,285 1, (0.79) Long-Term Bond (1,339) (1,588) (4.92) Market Neutral (1,058) (1,058) (1,976) (3,307) (0.16) Consumer Defensive (1,045) (1,045) (268) (429) (3.71) Allocation--85%+ Equity (178) (178) (1,785) (2,172) (2.52) Muni New York Long (13) (13) (2.26) Industrials (3.89) Morningstar, Inc. All Rights Reserved. For institutional use only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. ß

10 Morningstar Direct SM Publishing Date: Page 3 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % 1-Mo YTD 71 Trading--Leveraged Equity 1,591 1,591 (3,498) (1,936) China Region (2,661) (3,356) (3.23) Convertibles (2,035) (2,763) (3.54) Infrastructure (1,160) (1,930) (6.27) Diversified Pacific/Asia (646) (554) (2.57) Muni Single State Interm (0.79) Trading--Inverse Equity (107) (107) 6,760 5, Option Writing (270) (170) (1.26) Emerging-Markets Local-Currency Bond (952) (2,913) (1.85) Muni New York Intermediate (52) (52) (1.89) Muni Single State Short (14) (14) (626) (799) (0.37) Allocation--15% to 30% Equity (181) (181) (305) (536) (1.99) Muni Pennsylvania (0.80) India Equity (74) (424) Latin America Stock ,220 1, Long-Short Credit (90) (90) (2,870) (3,777) Communications (167) (167) (5.58) Muni Massachusetts (0.84) Multicurrency (1,243) (2,049) Muni New Jersey (18) (18) (0.89) Muni Ohio (0.83) Commodities Energy (240) (240) (42) 1, (2.24) Muni Minnesota (0.74) Target-Date (29) (1.87) Target-Date (188) (0.93) Volatility (67) (67) 3,265 3, Trading--Inverse Debt (87) (87) 98 (7) Target-Date (3.81) Target-Date (19) (1.41) Bear Market (2) (2) 365 (90) (18.18) 101 Trading--Leveraged Commodities , Miscellaneous Sector (46) (59) Target-Date (4.40) Target-Date (4.93) Commodities Agriculture Morningstar, Inc. All Rights Reserved. For institutional use only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. ß

11 Morningstar Direct SM Publishing Date: Page 4 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % 1-Mo YTD 106 Target-Date Retirement (0.85) Target-Date (4.80) Single Currency Trading--Miscellaneous (10) (111) Trading--Inverse Commodities (284) (284) Target-Date 2015 (12) (12) (128) (231) (3.07) Target-Date (0.17) Target-Date (7) (7) (119) (207) Trading--Leveraged Debt (47) (47) (118) (292) Commodities Industrial Metals Target-Date (2.05) Commodities Miscellaneous 0 0 (1) (31.64) Top 10 13,537 13, , ,771 8, , All 6,947 6, , ,869 14, , Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % 1 Vanguard 21,914 21, , ,946 3, , American Funds (1,589) (1,589) 903 (2,040) 1, , Fidelity Investments (2,786) (2,786) (14,523) (16,814) 1, , ishares 4,854 4,854 70, , T. Rowe Price (1,191) (1,191) (1,856) (1,428) SPDR State Street Global Advisors (1,517) (1,517) 16,601 21, Franklin Templeton Investments (4,035) (4,035) (35,796) (45,416) Pimco (638) (638) (10,620) (24,542) Dimensional Fund Advisors 2,063 2,063 18,369 21, JPMorgan (1,277) (1,277) (7,219) (7,662) BlackRock (135) (135) (4,886) (8,559) MFS (165) (165) 2,190 2, Dodge & Cox (776) (776) (8,567) (12,801) OppenheimerFunds (315) (315) (8,159) (11,763) Invesco (493) (493) 2, Morningstar, Inc. All Rights Reserved. For institutional use only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. ß

12 Morningstar Direct SM Publishing Date: Page 5 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % 16 Columbia (5,371) (7,266) Jackson National ,069 2, John Hancock (2,714) (16) Principal Funds (3) (3) 1,469 1, Lord Abbett ,159 1, American Century Investments (139) (139) Janus (391) (391) (1,961) (2,966) Wells Fargo Funds (1,080) (1,080) (6,975) (8,752) PowerShares 2,307 2,307 5,242 6, TIAA-CREF Asset Management ,525 7, AXA Equitable (452) (452) (4,350) (4,938) Hartford Mutual Funds (447) (447) (2,345) (2,440) Legg Mason (125) (125) (38) (765) SEI (493) (493) 460 1, Metropolitan West Funds 1,061 1,061 8,567 9, Prudential Investments ,522 4, Voya (412) (412) (5,450) (6,375) Goldman Sachs (539) (539) (9,840) (12,221) DoubleLine ,050 14, First Eagle (999) (2,524) Harbor (1,078) (1,078) (7,734) (9,426) Nuveen (247) (247) 5,430 6, Eaton Vance , Oakmark (136) (136) (11,523) (13,414) Federated ,806 1, AllianceBernstein (59) (59) 2,989 2, Putnam (422) (422) (7,767) (9,789) USAA (5) (5) (1,056) (1,154) Schwab Funds (207) (207) (1,511) (761) Dreyfus (227) (227) (721) (3,224) MainStay (823) (823) (6,455) (8,380) GMO (1,405) (1,405) (13,453) (14,656) Schwab ETFs ,736 14, Natixis Funds (227) (227) (4,429) (6,007) Northern Funds (201) (982) Morningstar, Inc. All Rights Reserved. For institutional use only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. ß

13 Morningstar Direct SM Publishing Date: Page 6 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % Top 10 15,797 15, , ,329 8, , Top 50 13,252 13, , ,263 12, , Other (6,305) (6,305) (58,412) (101,487) 2, , All 6,947 6, , ,776 14, , Morningstar, Inc. All Rights Reserved. For institutional use only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. ß

14 Morningstar Direct SM Publishing Date: Page 7 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date Asset Classes Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % US Equity (5,986) (5,986) (67,111) (57,162) 6, , Sector Equity (4,292) (4,292) (13,753) (10,446) International Equity 1,727 1,727 4,371 10,840 2, , Allocation (2,735) (2,735) (34,510) (49,961) 1, , Taxable Bond 16,197 16, , ,057 3, , Municipal Bond 1,803 1,803 58,015 67, Alternative ,730 4, Commodities ,194 18, All Long Term 6,947 6, , ,869 14, , Morningstar Ratings Name Estimated Net Flow ($mil) Total Net Assets ($bil) 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % QQQQQ 21,671 21, , ,965 3, , QQQQ 2,808 2,808 77,660 87,685 5, , QQQ (17,628) (17,628) (104,362) (135,115) 4, , QQ (7,162) (7,162) (100,700) (129,234) 1, , Q (1,684) (1,684) (25,504) (35,506) Not Rated 8,941 8,941 85,281 86, Total 6,947 6, , ,869 14, , Morningstar, Inc. All Rights Reserved. For institutional use only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. ß