Morningstar Direct SM Asset Flows Commentary: United States

Transcription

1 Morningstar Direct SM Asset Flows Commentary: United States Morningstar Research 15 March 2017 Data through Feb. 28, 2017 U.S. Mutual Funds and Exchange- Traded Products Alina Lamy Senior Analyst Quantitative Research Bonds Still in Favor, With U.S. Equity Close Behind Taxable-bond funds remained the undisputed favorites in February, attracting $35.5 billion in estimated net flows. U.S. equity funds, however, received double the flows they had taken in the previous month. Even more interesting, the overall increase did not come from expanding flows on the passive side, as one might expect. Instead, the increase came from a reduction in outflows on the active side. Active U.S. equity funds only lost $8.9 billion in February compared with $20.8 billion in January. (It only speaks to the dire situation of actively managed U.S. equity that a reduction in outflows sounds like such joyful news.) The increased confidence in stocks was propelled by another solid month for the S&P 500, which returned 4.0%. The employment report for February exceeded expectations, and consumer confidence remained high. The MSCI EAFE Index rose 1.4% in February, signaling modest growth in developed international markets. International-equity funds enjoyed $14.7 billion in new flows, mostly on the passive side. Active Passive Estimated Net Flows* $Mil Feb Year Assets $Bil Feb Year Assets U.S. Equity (8,862) (264,339) 3,707 29, ,937 3,199 Sector Equity (1,043) (29,697) 393 9,517 57, International Equity 1,131 (68,838) 1,482 13,587 91, Allocation (2,146) (44,151) 1,209 1, Taxable Bond 17,396 87,305 2,354 18, , Municipal Bond 2,193 23, , Alternative (533) (12,921) , Commodities 324 2, ,618 4, All Long Term 8,461 (307,366) 9,958 74, ,608 5,808 Money Market (267) (96,891) 2,574 $Bil *Includes liquidated and merged funds.

2 Morningstar Quantitative Research 15 March 2017 Page 2 of 9 Total (Active and Passive) Estimated Net Flows Feb Assets 1 Year $Mil 2017 $Bil U.S. Equity 20,210 20,598 6,906 Sector Equity 8,474 27, International Equity 14,718 23,003 2,481 Allocation (1,120) (43,364) 1,271 Taxable Bond 35, ,248 3,314 Municipal Bond 2,242 29, Alternative 460 (11,550) 210 Commodities 1,942 6, All Long Term 82, ,242 15,766 Money Market (267) (96,891) 2,574 All category groups except allocation enjoyed positive flows in February. Optimism about the U.S. market seemed to be catching on, with effects extending to (and flows trickling into) other asset classes as well. U.S. equity has been in positive-flow territory for four consecutive months now, a feat not witnessed since September through December Exhibit 1 U.S. Equity Category Group Monthly Flows ($ Billion) Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 Jan 17

3 Morningstar Quantitative Research 15 March 2017 Page 3 of 9 Exhibit 2 Category Group Flows During the Past 12 Months ($ Billion) U.S. Equity Sector Equity International Equity Allocation Taxable Bond Municipal Bond Alternative Commodities Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Exhibit 2 illustrates how investors preferences and flows patterns have changed over the past 12 months. Investors had clearly set their sights on fixed income after the January 2016 stock market sell-off, and when bonds delivered good returns last year, investors kept pouring money into them (and out of stocks). A drastic reversal occurred after the November election, when promises of tax cuts and less regulation ignited hope that the new administration s policies would benefit businesses and enable growth. So far, the U.S. market has amply rewarded these newfound hopes. The S&P 500 was up 10.5% between Nov. 9 and Feb. 28.

4 Morningstar Quantitative Research 15 March 2017 Page 4 of 9 Top- and Bottom-Flowing Morningstar Categories Estimated Net Flows* $Mil Leading Feb 2017 Active 1 Year Assets $Bil Feb 2017 Passive 1 Year Assets Intermediate-Term Bond 6,221 42, ,990 80, Large Blend (4,334) (64,844) , ,322 2,003 Foreign Large Blend 73 (14,668) 323 7,936 69, Mid-Blend 94 (5,368) 108 4,655 25, Corporate Bond 487 9, ,884 16, Lagging World Allocation (1,566) (30,874) 297 (2) (7) 0 High-Yield Bond (778) 9, , Intermediate Government (902) (946) , Large Growth (3,467) (117,963) 1,197 2,919 10, Equity Energy (348) (133) 4, $Bil *Excludes money market. Just like in January, the large-blend and blend Morningstar Categories were both in the top five in February. Intermediate-term bond stole the top spot, with positive flows to active and passive funds alike. This has been one of the persistent differences between fixed-income and equity categories these days: When equity categories make the top five, they do so because of large inflows on the passive side (and minimal inflows, many times even outflows, on the active side). Fixed-income categories tend to attract inflows to both active and passive funds. Sometimes, like for intermediate-term bond in February, active-fund inflows are larger than their passive counterparts. Interestingly, however, the opposite was true for corporate bond. Given how the majority of the inflows went to passive funds in the large-blend and foreign large-blend categories in February, it s worth taking a closer look at what happened on the active scene for these categories. Here are the five active funds that attracted the largest inflows in these categories:

5 Morningstar Quantitative Research 15 March 2017 Page 5 of 9 Morningstar Category: Large Blend Actively Managed Estimated Net Flow (USD), February 2017 KP Large Cap Equity 245,069,863 Primecap Odyssey Stock 175,809,286 JNL/American Funds Growth-Income 89,623,773 Goldman Sachs US Equity Div and Premium 79,919,712 Oakmark 78,715,016 Morningstar Category: Foreign Large Blend Actively Managed Estimated Net Flow (USD), February 2017 Oakmark International 588,773,344 FMI International 392,947,608 First Eagle Overseas 244,629,029 Bridge Builder International Equity 158,392,237 Principal Diversified International 72,325,897 In the large-blend category, 119 out of 373 actively managed funds attracted inflows, while 83 out of 170 active foreign large-blend funds had inflows. The numbers were higher than expected, proving that even within the actively managed universe of U.S. equity categories there were still some funds attracting inflows, despite the overall active flow for the category being deeply negative. Top 10 U.S. Fund Families by Assets Under Management Estimated Net Flows $Mil Feb 2017 Active 1 Year Assets $Bil Feb 2017 Passive 1 Year Assets Vanguard 2,628 18, , ,514 2,752 American Funds 1,537 (4,877) 1,320 Fidelity Investments (2,925) (63,568) 1,006 3,995 39, BlackRock/iShares (656) (18,899) , ,574 1,078 SPDR State Street Global Advisors 221 1, ,120 60, T. Rowe Price 1,678 (4,535) 497 (213) Franklin Templeton Investments (1,817) (39,884) Dimensional Fund Advisors 3,426 22, PIMCO 1,196 (9,596) 303 (7) J.P. Morgan 457 (9,501) $Bil

6 Morningstar Quantitative Research 15 March 2017 Page 6 of 9 Exhibit 3 Year-to-Date Flows by Fund Family, Active ($ Billion) -0.9 J.P. Morgan Dimensional Fund Advisors PIMCO Franklin Templeton Investments SPDR State Street Global Advisors T. Rowe Price BlackRock/iShares Fidelity Investments American Funds Vanguard Exhibit 4 Year-to-Date Flows by Fund Family, Passive ($ Billion) 0.1 J.P. Morgan 7.0 Dimensional Fund Advisors PIMCO Franklin Templeton Investments 9.5 SPDR State Street Global Advisors 0.1 T. Rowe Price 33.0 BlackRock/iShares 6.9 Fidelity Investments American Funds 73.5 Vanguard

7 Morningstar Quantitative Research 15 March 2017 Page 7 of 9 A Few Bright Spots in the Active-Management Landscape T. Rowe Price, American Funds, and PIMCO had respectable flows among active managers in February. J.P. Morgan remained in positive territory, but its inflows were noticeably smaller. Fidelity and Franklin Templeton suffered outflows. Vanguard and ishares continued to dominate on the passive side. Beginning another battle in the escalating expense-ratio war, Vanguard announced another round of fee cuts last month for a number of international-equity index exchange-traded funds and open-end funds, as well as international index and tax-exempt bond funds. Vanguard extended the cuts to actively managed multiasset and equity funds as well. For example, the expense ratio for Vanguard STAR s VGSTX investor share class was down to 0.32% from 0.34%, and Vanguard Windsor VWNDX saw a steep cut to 0.30% from 0.39%. Charles Schwab (not in the top 10 but still a well-known asset manager) also announced upcoming expense reductions. As of March 1, expenses on the firm s market-cap-weighted index mutual funds aligned with their Schwab ETF equivalents. For example, Schwab S&P 500 Index SWPPX and Schwab Total Stock Market Index SWTSX each saw a cut in annual expenses to 0.03% from 0.09%, the lowest cost available to equity index fund investors. The firm also eliminated investment minimums for these funds. Top-Flowing Active and Passive Funds Assets Assets Estimated Net Flows Feb Year Feb 2017 Feb 2016 $Mil $Mil $Mil Active Funds PIMCO Income 2,013 15,453 75,368 53,789 Vanguard Institutional Interm-Term Bond 1,640 4,206 12,717 8,517 T. Rowe Price New Income 984 4,650 32,406 27,169 Lord Abbett Short Duration Income 884 3,724 38,471 33,519 Vanguard Short-Term Investment-Grade 736 4,431 58,993 53,261 Passive Funds Vanguard Total Stock Market Index 4,137 46, , ,777 Vanguard Total Intl Stock Index 3,276 31, , ,690 SPDR S&P 500 ETF 3,165 28, , ,845 Vanguard Total Bond Market II Index 2,856 28, ,946 90,935 Vanguard 500 Index 2,604 39, , ,934

8 Morningstar Quantitative Research 15 March 2017 Page 8 of 9 PIMCO captured the top spot again in February with PIMCO Income PIMIX attracting the largest inflows among active funds because of its consistent performance. In contrast, PIMCO Total Return PTTRX was still in the bottom five despite good returns. This fund has been sustaining heavy withdrawals since Bill Gross departure in 2014, although it wasn t the fund with the worst redemptions in February. T. Rowe Price New Income PRCIX is a fund with a reliable core bond portfolio that pursues a bit more yield than its Bloomberg Barclays U.S. Aggregate Bond Index benchmark but aims to steer clear of market disasters, writes my colleague Cara Esser, who covers this fund. A bit more yield while steering clear of market disasters sounded like a good proposition to investors, who poured almost $1 billion into this fund last month. T. Rowe Price New Income's thoughtful core allocations and peripheral out-of-benchmark flexibility make it an attractive option, Esser adds. Bottom-Flowing Active and Passive Funds Estimated Net Flows $Mil Assets Assets Feb Year Feb 2017 Feb 2016 $Mil $Mil Active Funds Vanguard Institutional Short-Term Bond (1,563) (2,728) 7,694 10,313 Fidelity Series High Income (1,431) (2,884) 2,857 4,756 Harbor International (1,111) (7,771) 34,653 38,252 PIMCO Total Return (1,024) (16,510) 74,232 87,839 BlackRock Global Allocation (723) (10,145) 40,736 45,697 Passive Funds ishares Russell 2000 (1,588) 5,578 36,858 22,879 SPDR Dow Jones Industrial Average ETF (889) 1,425 16,265 11,870 ishares iboxx $ High Yield Corporate Bond (397) 1,596 18,595 15,267 Fidelity SAI U.S. Minimum Volatility Index (387) (502) ishares MSCI Japan (347) (3,715) 16,326 17,507 An active Vanguard fund had the worst outflows in February and was joined on the bottom-five list by a diverse group of funds from various providers and categories. In the passive arena, ishares took a hit, with three of its funds landing in the bottom five.

9 Morningstar Quantitative Research 15 March 2017 Page 9 of 9 Note: The figures in this report were compiled on March 10, 2017, 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

10 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 US Fund Large Blend 10,494 21,882 21,882 89,491 2, , US Fund Large Growth (549) (12,801) (12,801) (107,605) 1, , US Fund Intermediate-Term Bond 12,223 18,548 18, ,003 1, , US Fund Large Value 2,330 3,901 3,901 18,975 1, US Fund Foreign Large Blend 7,975 18,325 18,325 55, US Fund Allocation--50% to 70% Equity (1,490) US Fund Diversified Emerging Mkts 4,199 8,787 8,787 30, US Fund Mid-Cap Blend 4,749 9,568 9,568 20, US Fund World Stock (185) (1,343) (1,343) (17,570) US Fund Foreign Large Growth (11,605) US Fund Small Blend 1,427 5,569 5,569 22, US Fund Short-Term Bond 3,570 4,731 4,731 16, US Fund High Yield Bond (580) , US Fund World Allocation (1,569) (3,258) (3,258) (30,881) US Fund Mid-Cap Growth 373 (1,480) (1,480) (21,278) US Fund Mid-Cap Value 203 (3) (3) (3,061) US Fund World Bond 562 4,845 4,845 1, US Fund Allocation--30% to 50% Equity , US Fund Small Growth (8,827) US Fund Multisector Bond 2,538 3,385 3,385 7, US Fund Muni National Interm 677 1,540 1,540 13, US Fund Foreign Large Value 583 1,571 1, US Fund Small Value 702 3,005 3,005 9, US Fund Real Estate (171) , US Fund Health 236 (1,802) (1,802) (16,653) US Fund Corporate Bond 4,371 8,388 8,388 26, US Fund Allocation--70% to 85% Equity (337) (458) (458) (4,983) US Fund Inflation-Protected Bond 2,299 5,071 5,071 20, US Fund Bank Loan 4,432 9,197 9,197 24, US Fund Muni National Short 466 1,170 1,170 4, US Fund Ultrashort Bond 3,416 7,131 7,131 18, US Fund Intermediate Government (629) (732) (732) 2, US Fund Nontraditional Bond 1,156 2,676 2,676 (11,472) US Fund Technology 1,565 2,915 2,915 3, US Fund Muni National Long , 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 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 US Fund High Yield Muni 1,047 2,728 2,728 4, US Fund Emerging Markets Bond 1,581 2,075 2,075 11, US Fund Financial 2,656 4,217 4,217 13, US Fund Short Government (4,498) US Fund Europe Stock (172) (665) (665) (24,202) US Fund Equity Energy (481) (50) (50) 4, (7.09) (9.26) 42 US Fund Global Real Estate (3,324) US Fund Multialternative (394) (628) (628) (6,494) US Fund Commodities Precious Metals 1,506 1,425 1,425 4, US Fund Energy Limited Partnership 1,008 1,936 1,936 7, US Fund Preferred Stock , US Fund Natural Resources , (3.36) US Fund Foreign Small/Mid Growth 32 (133) (133) (1,879) US Fund Muni California Long (130) (90) (90) US Fund Japan Stock (119) 1,082 1,082 (6,733) US Fund Long-Short Equity 178 (122) (122) (4,493) US Fund Commodities Broad Basket , US Fund Tactical Allocation , US Fund Utilities 43 (973) (973) (3,850) US Fund Foreign Small/Mid Blend 1,207 1,821 1,821 1, US Fund Miscellaneous Region (424) (312) US Fund Allocation--85%+ Equity (144) (532) (532) (4,121) US Fund Equity Precious Metals 1,818 2,550 2,550 8, (7.38) US Fund Industrials 977 1,474 1,474 9, US Fund Long Government (5,536) US Fund Foreign Small/Mid Value (537) US Fund Managed Futures (116) (140) (140) 3, US Fund Consumer Cyclical (3,199) US Fund Muni California Intermediate , US Fund Pacific/Asia ex-japan Stk 59 (70) (70) (538) US Fund Muni Single State Long US Fund Market Neutral (2,553) US Fund Long-Term Bond (1,104) US Fund Trading--Leveraged Equity (55) (1,484) (1,484) (4,459) US Fund Consumer Defensive 293 (18) (18) (3,471) 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 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 US Fund Muni New York Long (29) (69) (69) (285) US Fund Convertibles (173) (283) (283) (1,277) US Fund Infrastructure (44) US Fund China Region (75) (452) (452) (2,863) US Fund Option Writing (322) (371) (371) (83) US Fund Diversified Pacific/Asia (172) US Fund Allocation--15% to 30% Equity (267) (206) (206) (398) US Fund Muni Single State Interm (46) (63) (63) US Fund Emerging-Markets Local-Currency Bond (20) (440) US Fund Muni New York Intermediate US Fund Muni Single State Short (792) US Fund Trading--Inverse Equity , US Fund India Equity US Fund Muni Pennsylvania (6) (1) (1) (59) US Fund Latin America Stock , US Fund Communications (272) (17) (17) (86) (0.89) US Fund Long-Short Credit (16) (91) (91) (2,495) US Fund Multicurrency (49) (102) (102) (693) US Fund Muni Massachusetts (4) 6 6 (33) US Fund Muni New Jersey (4) (4) (4) (169) US Fund Commodities Energy 17 (109) (109) (2,124) (4.40) (16.16) 92 US Fund Muni Ohio (18) (26) (26) US Fund Muni Minnesota US Fund Miscellaneous Sector US Fund Target-Date (104) (104) (530) US Fund Trading--Inverse Debt US Fund Target-Date (215) (215) (604) US Fund Volatility , US Fund Target-Date (25) (25) (368) US Fund Bear Market (291) (8.81) (17.00) 101 US Fund Trading--Leveraged Commodities (1,449) US Fund Target-Date (79) (79) (825) US Fund Target-Date (143) US Fund Target-Date (424) US Fund Commodities Agriculture (0.74) 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 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 ($bil) Total Return 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % 1-Mo YTD 106 US Fund Target-Date Retirement (17) US Fund Target-Date (1) US Fund Single Currency (36) (42) (42) US Fund Trading--Miscellaneous (15) (17) (17) US Fund Trading--Inverse Commodities 45 (41) (41) US Fund Target-Date US Fund Commodities Industrial Metals US Fund Target-Date 2015 (5) (93) (93) (417) US Fund Trading--Leveraged Debt (8) (32) (32) (148) US Fund Target-Date (2) (32) (32) (208) US Fund Target-Date US Fund Commodities Miscellaneous (1) Top 10 42,514 67,973 67, ,056 9, , All 82, , , ,593 15, , Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % 1 Vanguard 32,421 78,406 78, ,070 3, , American Funds 1,537 3,004 3,004 (4,877) 1, , Fidelity Investments 1,069 (3,763) (3,763) (23,957) 1, , ishares 15,417 30,282 30, ,343 1, SPDR State Street Global Advisors 9,341 9,946 9,946 62, T. Rowe Price 1,465 1,917 1,917 (4,281) Franklin Templeton Investments (1,771) (4,020) (4,020) (39,535) Dimensional Fund Advisors 3,426 6,985 6,985 22, Pimco 1,189 2,113 2,113 (9,080) JPMorgan 485 (831) (831) (8,756) BlackRock (7,668) MFS , Dodge & Cox 605 1,041 1,041 (8,455) OppenheimerFunds 638 1,216 1,216 (7,160) Invesco , 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 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 (1,394) (2,251) (2,251) (8,089) Jackson National , John Hancock 754 (868) (868) (5,028) Principal Funds 245 (799) (799) PowerShares 1,778 4,219 4,219 14, Lord Abbett 1,584 2,620 2,620 7, Janus (31) (538) (538) (2,397) TIAA-CREF Asset Management 1,298 2,488 2,488 9, American Century Investments (485) (1,060) (1,060) (1,063) AXA Equitable (531) (1,030) (1,030) (5,353) Hartford Mutual Funds (81) (26) (26) (2,434) Legg Mason 733 (184) (184) SEI 170 (54) (54) (743) Wells Fargo Funds (538) (2,763) (2,763) (16,122) Metropolitan West Funds , Prudential Investments (376) (859) (859) 4, Goldman Sachs (8,680) Voya (753) (1,624) (1,624) (7,743) First Eagle , Oakmark 782 1,373 1,373 (12,512) DoubleLine , Eaton Vance , Harbor (1,306) (2,063) (2,063) (12,107) AllianceBernstein , Nuveen 750 1,668 1,668 3, Federated (430) (171) (171) Schwab ETFs 2,257 4,462 4,462 19, Putnam (64) (497) (497) (6,485) Schwab Funds (148) (784) USAA (679) Dreyfus (154) (1,682) MainStay (25) (1,471) (1,471) (7,836) Natixis Funds (362) (722) (722) (5,375) Guggenheim Investments 1,761 3,788 3,788 10, GMO (969) (2,627) (2,627) (17,483) 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

15 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 64, , , ,741 9, , Top 50 74, , , ,864 13, , Other 8,252 13,271 13,271 (65,416) 2, , All 82, , , ,448 15, , 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

16 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 20,008 29,700 29,700 20,517 6, , Sector Equity 8,475 13,193 13,193 28, International Equity 14,775 31,534 31,534 23,209 2, , Allocation (1,131) (3,812) (3,812) (43,374) 1, , Taxable Bond 36,065 68,330 68, ,378 3, , Municipal Bond 2,241 6,551 6,551 29, Alternative 509 (684) (684) (11,549) Commodities 1,945 1,618 1,618 6, All Long Term 82, , , ,593 15, , Morningstar Ratings Name Estimated Net Flow ($mil) Total Net Assets ($bil) 1-Mo QTD YTD 1-Yr Mkt Sh % Mkt Sh % QQQQQ 35,429 67,564 67, ,921 3, , QQQQ 33,409 52,798 52, ,683 6, , QQQ 7,183 11,430 11,430 (53,208) 4, , QQ (2,093) (4,038) (4,038) (81,819) Q (789) (1,228) (1,228) (17,588) Not Rated 9,747 19,904 19,904 65, Total 82, , , ,593 15, , 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