November 2011 Data Morningstar Direct SM Update U.S. Open-End Funds Also inside: Extended tables... 4 Fear On by Kevin McDevitt, CFA, Editorial Director November was another "risk-off" month for mutual fund investors with $6.3 billion in long-term outflows. With one month of 2011 to go, long-term inflows for the year to date are down 70% from 2010's $244 billion for the full year. U.S.-stock funds once again did most of the damage with $12.5 billion in outflows, even though the S&P 500 Index was flat for the month. International-stock funds fared even worse in relative terms with $4.3 billion in outflows, the asset class' worst showing since May 2010. Investors instead turned to the perceived safety of bond funds, shoveling $10.2 billion into taxable-bond offerings. They also contributed nearly $3.1 billion to municipal-bond funds, as that group's steady recovery continued. Municipal-bond funds had their highest inflows since August 2010. Money market funds provided another haven, as they collected $46.1 billion in new money, one of their greatest hauls in three years. Estimated Net Flows $Mil November 2011 YTD 2010 U.S. Stock (12,509) (74,527) (74,993) International Stock (4,294) 8,387 42,407 Balanced (4,634) 12,071 12,433 Taxable Bond 10,166 120,949 216,916 Municipal Bond 3,052 (15,702) 12,047 Alternative 1,647 12,801 22,920 Commodities 253 10,201 12,376 All Long Term (6,319) 74,181 244,106 Money Market 46,139 (135,183) (476,255) Source: Morningstar Direct Bond Funds: Chasing Safety and Returns Taxable-bond funds dominated the other asset classes with nearly $10.2 billion in inflows. Unlike earlier in the year when investors seemed to gravitate toward credit-oriented categories in search of yield, conservatism carried the day in November. The intermediate-term bond category, in which many core bond holdings are found, collected $8.5 billion in new assets. DoubleLine Total Return Bond was one of the primary beneficiaries with nearly $1 billion in inflows. Vanguard Total Bond Market II Index and Vanguard Total Bond Market Index fared even better with nearly $2 billion in combined inflows. Although no category came close to the intermediate-term bond haul, conservative-bond categories dominated the top-10 ranking. Intermediate-term bond was followed by inflation-protected bond, muni-national intermediate, shortterm bond, and the conservative-allocation category. Municipal-bond funds had their best month overall since August 2010. The asset class has been increasing in popularity since it bottomed in December last year. To learn more about Morningstar Direct, visit us at this link. For weekly updates about the fund industry, check Fund Times on Morningstar.com each Thursday afternoon. Data Notes: The figures in this report were compiled on Dec. 12, 2011, and reflect only the funds that had reported net assets by that date. The aggregated figures do not include Calamos. 2011 Morningstar, Inc. All rights reserved.
While risk-aversion is likely part of the push into traditionally low-risk bond categories, investors may be chasing returns to some extent, too. So far in 2011, investors haven't had to compromise between risk and return. Municipalbond and government-bond categories have generally had the best returns of any asset class. That's perhaps due to the fact that these asset classes are no longer considered low-risk, in light of concerns over the country's growing debt burden. At least for one year, though, investor pessimism seems to have gotten ahead of the near-term risk, and long-term government and muni bonds have unexpectedly enjoyed the best performance. On the other hand, credit-oriented categories such as high-yield bonds and bank loans have seen their popularity plummet as returns have stagnated. Although high-yield funds did collect a record $8.9 billion last month, that looks like an anomaly. In November, investors pulled nearly $1.2 billion from these funds. Bank-loan funds, which have seen declining interest since January's record $5.5 billion in inflows, had nearly $700 million in outflows. Emerging-Markets Flows Decouple The exception to this risk-aversion remains emerging markets. While the performance of emerging-markets assets hardly seems unrelated to broader global ills, investors have been treating them as if they're in their own universe. Even though diversified emerging-markets stock funds have fallen 19.5% for the year to date through November, they continue to attract inflows. That category attracted nearly $740 million for the month. While the pace of inflows has certainly slowed this year, November still marked the category's ninth consecutive month of positive flows. The gap between performance and flows isn't quite as wide with emerging-markets bond funds, but it's clear nonetheless. The average fund in the category gained 1.9% for the year to date through November, but this is well behind (in bond-fund terms) the 5.1% average return turned in by intermediate-term bond funds. Yet, the emergingmarkets bond category still welcomed another $793 million in new money. Since August 2009, the category has had only one month of net redemptions. Bucking this trend is Templeton Global Bond, which, although it lands in the world-bond category, has significant emerging-markets exposure. With close to $500 million in outflows, the fund had its first net redemptions since November 2008. That's not surprising considering the fund's poor year-to-date performance. Its 2.4% loss through November is among the worst in the world-bond category. Stock Funds: Will This Ever Turn Around? The steady flow out of U.S.-stock funds continued much as it has for months. Outflows were consistent across the major categories, with large-cap categories again getting hit the hardest. Large-growth funds had about $4 billion in outflows with punching bag American Funds Growth Fund of America alone surrendering $3.3 billion of it. Other than diversified emerging markets, the story was similar for international-stock funds. Foreign large value was the only category with notable inflows (about $300 million). By contrast, the foreign large-blend and world-stock categories shed nearly $2.6 billion and $1.9 billion, respectively. Actively managed stock funds have taken the brunt of redemptions across the board, but the contrast between actively and passively managed funds has been especially stark in the foreign large-blend category. Actively managed funds lost $3.7 billion in November while their passively managed counterparts collected nearly $1.2 billion. The chasm is even wider in the year to date, as actively managed funds have suffered through about $19.8 billion in redemptions, while passively managed funds have absorbed $15.7 billion. Vanguard Total International Stock Index has been a notable success story. The fund took in over $830 million in November and now has recorded more than $12 billion for the year to date. No category competitor comes within $10 billion of this performance. If investors have added at all to stock funds in 2011, they have tended to stick with those that are passively managed. 2011 Morningstar, Inc. All rights reserved.
Fund Family Top-10 Open-End Fund Families ranked by 11-30-2011 Est. Net Flow Excludes money markets and funds of funds Total Net Assets $Bil Market Share % Nov 2011 Estimated Net Flow $Mil One-Year Organic Growth Rate TIAA-CREF 37 0.47 3,194 25.8 DoubleLine 15 0.20 1,254 281.4 JPMorgan 138 1.77 1,168 15.8 Advanced Series Trust 3 0.03 1,008 100.0 T. Rowe Price 270 3.47 900 2.9 DFA 131 1.68 869 14.7 Federated 50 0.64 770-1.2 MainStay 39 0.50 603 30.2 Wells Fargo Advantage 80 1.03 590 4.8 Lord Abbett 69 0.89 454 8.3 Source: Morningstar Direct Few of the usual suspects are found among the firms receiving the most inflows in November. While Fidelity and American Funds continue to endure outflows, PIMCO and Vanguard didn't fare that much better. That's somewhat surprising given the two families' robust bond-fund lineups and the healthy flows into such offerings. In PIMCO's case, its offerings have fallen out of favor to some extent following the firm's botched call on U.S. Treasuries. Led by flagship PIMCO Total Return, the firm reduced its exposure to Treasuries early in the year and missed out on a powerful rally over the summer and fall. Manager Bill Gross has offered mea culpas, but his fund still shed close to $500 million in November. A darling for much of the year, PIMCO Unconstrained Bond also lost close to $500 million to outflows. Vanguard's flat flows for the month look more anomalous. They owe mostly to the $5.1 billion in flows from Vanguard Asset Allocation, which will likely be merged into Vanguard Balanced Index at some point. This actively managed fund has been disowned by its own family, as Vanguard's four LifeStrategy funds have dropped it from their lineups. If not for Vanguard Asset Allocation, the family likely would have had the month's strongest inflows. 2011 Morningstar, Inc. All rights reserved.
Morningstar Direct SM Release Date: 2011-12-13 Page 1 of 6 Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo YTD 1 Intermediate-Term Bond 8,516 17,986 24,985 14,382 885 11.37 842 11.15 (0.64) 4.60 2 Large Blend (2,810) (7,829) (18,684) (19,207) 868 11.15 836 11.08 (0.53) (1.69) 3 Large Growth (4,055) (9,168) (34,337) (37,851) 761 9.77 764 10.13 (1.06) (1.35) 4 Large Value (1,751) (4,076) (8,639) (9,865) 551 7.08 530 7.02 (0.49) (2.03) 5 Foreign Large Blend (2,569) (6,304) (4,096) 2,572 397 5.09 412 5.46 (2.75) (11.88) 6 Moderate Allocation (6,056) (7,000) (14,714) (16,788) 369 4.74 364 4.82 (0.83) (0.52) 7 World Allocation 544 662 16,264 18,801 231 2.97 207 2.74 (1.33) (3.47) 8 World Stock (1,885) (3,308) (13,355) (13,674) 219 2.82 267 3.54 (1.75) (6.76) 9 Short-Term Bond 1,188 (41) 11,595 10,072 199 2.56 187 2.47 (0.34) 1.30 10 Mid-Cap Growth (1,478) (2,978) (11,168) (10,072) 199 2.55 200 2.65 (0.62) (2.18) 11 High Yield Bond (1,186) 7,713 10,947 12,669 191 2.45 173 2.30 (2.14) 0.54 12 Diversified Emerging Mkts 736 2,918 19,486 23,427 188 2.41 187 2.47 (3.16) (16.82) 13 Mid-Cap Blend (721) (1,637) (870) (489) 167 2.15 161 2.13 (0.42) (3.61) 14 World Bond (409) 871 23,838 25,545 143 1.84 117 1.56 (1.85) 2.56 15 Foreign Large Value 307 782 4,101 3,853 142 1.82 145 1.92 (2.90) (10.82) 16 Small Blend (537) (1,315) (1,645) (517) 141 1.81 136 1.80 (0.24) (4.38) 17 Intermediate Government 508 2,016 (3,780) (7,008) 129 1.65 128 1.69 0.30 5.97 18 Conservative Allocation 1,071 (1,746) 9,790 11,095 125 1.61 110 1.46 (0.86) 0.99 19 Multisector Bond 419 409 8,764 8,116 122 1.56 111 1.47 (1.45) 1.95 20 Muni National Interm 1,306 2,036 4 (2,693) 108 1.38 105 1.40 0.71 7.07 21 Small Growth (563) (1,138) (2,295) (2,065) 106 1.37 102 1.35 (0.39) (2.93) 22 Foreign Large Growth 17 (350) 4,715 5,909 103 1.32 104 1.38 (2.52) (10.06) 23 Mid-Cap Value (429) (715) (898) (793) 102 1.31 100 1.32 (0.41) (4.29) 24 Inflation-Protected Bond 1,491 3,146 8,397 8,624 102 1.31 85 1.12 0.31 10.84 25 Muni Short 991 1,945 1,639 (275) 92 1.19 91 1.20 0.33 2.91 26 Muni National Long 249 297 (5,475) (7,945) 86 1.11 85 1.12 0.38 8.43 27 Small Value (188) (231) (1,002) (371) 69 0.89 67 0.88 0.02 (5.40) 28 Bank Loan (677) (486) 12,602 16,459 58 0.74 40 0.53 (0.54) 0.87 29 Real Estate 214 407 2,792 2,879 53 0.69 46 0.61 (3.44) 2.97 30 High Yield Muni 170 401 (1,676) (3,564) 52 0.67 54 0.72 (0.05) 8.02 31 Commodities Broad Basket 252 1,602 10,199 11,786 51 0.65 39 0.52 (0.90) (4.87) 32 Nontraditional Bond (946) (2,672) 8,891 10,693 49 0.63 39 0.52 (0.63) (1.91) 33 Emerging Markets Bond 793 1,641 11,923 12,576 46 0.59 33 0.43 (2.25) 1.57 34 Short Government 251 583 (486) (1,131) 43 0.56 44 0.58 0.03 1.91 35 Health (171) (242) (262) (641) 39 0.50 35 0.46 0.32 5.60
Morningstar Direct SM Release Date: 2011-12-13 Page 2 of 6 Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo YTD 36 Ultrashort Bond (131) (35) 1,859 1,317 36 0.47 35 0.46 (0.13) 0.13 37 Muni California Long (29) (73) (2,808) (3,788) 35 0.45 37 0.49 0.38 9.29 38 Natural Res (60) (295) 2,346 3,381 33 0.43 31 0.41 (0.12) (9.62) 39 Equity Precious Metals (123) (376) (1,617) (1,086) 30 0.39 35 0.47 0.79 (8.28) 40 Long-Term Bond 22 407 1,011 896 28 0.35 24 0.32 (1.48) 8.71 41 Muni New York Long 39 (4) (2,180) (2,875) 27 0.35 29 0.38 0.22 7.74 42 Foreign Small/Mid Value (60) (12) 1,389 1,779 27 0.35 26 0.34 (3.41) (13.35) 43 Equity Energy 25 (87) 1,094 1,397 26 0.33 23 0.30 0.31 (5.00) 44 Muni Single State Long 108 170 (1,489) (2,199) 25 0.33 26 0.35 0.32 8.13 45 Technology (187) (138) (2,066) (1,890) 25 0.32 26 0.35 (3.08) (5.24) 46 Foreign Small/Mid Growth (233) (424) (362) (112) 25 0.32 26 0.34 (2.90) (12.35) 47 Global Real Estate 60 806 2,295 2,520 22 0.28 21 0.27 (3.99) (8.99) 48 Pacific/Asia ex-japan Stk (248) (410) (2,901) (2,583) 19 0.25 24 0.32 (5.81) (17.64) 49 Long/Short Equity 228 736 1,323 1,452 19 0.24 17 0.23 (0.80) (3.21) 50 Utilities 309 634 2,008 2,045 17 0.22 14 0.18 0.20 8.49 51 Market Neutral 192 135 2,059 2,092 16 0.20 16 0.21 (0.31) (0.04) 52 Multialternative 475 1,082 3,743 4,064 13 0.17 9 0.12 (0.92) (2.83) 53 Muni Single State Interm 26 50 (756) (1,107) 13 0.16 13 0.18 0.57 7.01 54 Europe Stock (254) (246) (1,115) (1,265) 12 0.16 14 0.19 (3.05) (12.43) 55 Aggressive Allocation (93) (211) (815) (885) 11 0.14 16 0.21 (1.13) (3.50) 56 Convertibles (106) (249) 257 603 11 0.14 13 0.17 (1.79) (5.60) 57 Muni California Intermediate 98 133 48 (226) 10 0.13 10 0.13 0.64 6.68 58 Muni Pennsylvania (10) (23) (727) (995) 10 0.12 10 0.14 0.36 7.76 59 Currency 96 (158) 3,559 3,780 9 0.12 6 0.07 (1.30) (2.88) 60 Long Government 326 338 402 160 8 0.10 7 0.09 1.91 27.97 61 Muni New York Intermediate 52 92 (402) (529) 8 0.10 8 0.11 0.63 6.69 62 Managed Futures 323 838 3,540 3,855 7 0.09 4 0.05 0.25 (7.20) 63 Muni New Jersey 15 10 (620) (878) 7 0.09 8 0.10 0.15 8.05 64 Muni Massachusetts 25 25 (419) (658) 7 0.09 7 0.09 0.27 8.15 65 Diversified Pacific/Asia (96) (208) 455 628 7 0.09 7 0.09 (2.25) (15.10) 66 China Region (68) (228) (1,518) (1,580) 7 0.09 10 0.13 (4.25) (22.43) 67 Latin America Stock (71) (177) (1,846) (1,943) 6 0.08 10 0.13 (6.50) (21.29) 68 Bear Market 455 (98) 194 (277) 5 0.07 6 0.08 (0.53) (10.56) 69 Muni Ohio 7 5 (591) (746) 5 0.06 6 0.07 0.36 7.28 70 Financial (54) (38) (656) (544) 4 0.06 5 0.07 (3.52) (16.31)
Morningstar Direct SM Release Date: 2011-12-13 Page 3 of 6 Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo YTD 71 Muni Minnesota 6 8 (249) (334) 4 0.05 4 0.06 0.53 8.30 72 Communications (47) (45) (272) (336) 3 0.04 4 0.05 0.03 (5.41) 73 Japan Stock 71 1 1,137 1,055 3 0.04 2 0.03 (0.94) (12.00) 74 Target Date 2016-2020 4 17 212 234 2 0.03 2 0.03 (0.88) (0.36) 75 Industrials (7) 16 (247) (203) 2 0.03 2 0.03 (0.32) (7.62) 76 Target Date 2026-2030 4 16 234 262 2 0.03 2 0.02 (1.05) (2.14) 77 Target Date 2021-2025 (2) 1 76 83 2 0.03 2 0.02 (1.09) (2.03) 78 Consumer Defensive (26) 19 231 173 2 0.02 2 0.02 1.17 4.45 79 Consumer Cyclical 26 93 (31) (5) 1 0.02 1 0.02 (1.27) 1.27 80 Target Date 2036-2040 5 18 173 186 1 0.02 1 0.01 (1.14) (3.22) 81 Miscellaneous Sector (1) (34) 73 158 1 0.02 1 0.01 (2.06) (9.37) 82 Retirement Income (3) 7 145 142 1 0.01 1 0.01 (0.74) 1.24 83 Target Date 2000-2010 (7) (12) 25 16 1 0.01 1 0.01 (0.80) 0.63 84 Target Date 2011-2015 1 5 80 77 1 0.01 1 0.01 (0.94) (0.47) 85 Target Date 2031-2035 (2) 11 139 149 1 0.01 1 0.01 (1.17) (3.30) 86 Target Date 2050+ 3 14 114 129 1 0.01 1 0.01 (1.21) (3.78) 87 Target Date 2041-2045 4 11 91 98 0 0.01 0 0.00 (1.23) (3.80) 88 Commodities Precious Metals 0 0 2 2 0 0.00 1.19 Top 10 (10,356) (22,055) (52,147) (61,631) 4,679 60.10 4,610 61.06 All (6,319) (3,703) 74,181 70,197 7,786 100.00 7,550 100.00 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1 Vanguard 73 1,682 22,711 25,244 1,153 14.81 1,075 14.24 2 American Funds (6,875) (12,778) (72,423) (79,258) 863 11.08 917 12.14 3 Fidelity Investments (4,183) (6,437) (27,970) (29,711) 789 10.13 795 10.53 4 PIMCO (1,040) (1,471) 29,634 23,774 453 5.81 424 5.61 5 Franklin Templeton Investment Fds 50 127 11,215 12,000 300 3.86 321 4.25 6 T. Rowe Price 900 2,041 8,282 7,787 270 3.47 253 3.35 7 Columbia (1,264) (2,065) (7,014) (7,494) 156 2.00 145 1.93 8 JPMorgan 1,168 2,332 17,046 17,839 138 1.77 118 1.56 9 BlackRock 71 866 9,527 10,315 138 1.77 118 1.56 10 OppenheimerFunds (367) (497) (1,385) (665) 137 1.76 138 1.82
Morningstar Direct SM Release Date: 2011-12-13 Page 4 of 6 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 11 Dimensional Fund Advisors 869 1,905 15,100 16,194 131 1.68 118 1.56 12 John Hancock (69) (134) 451 880 123 1.58 121 1.60 13 Dodge & Cox (680) (1,499) (4,717) (5,381) 113 1.45 119 1.58 14 Invesco (266) (755) (4,219) (4,925) 103 1.32 86 1.14 15 Janus (687) (1,379) (6,180) (7,137) 90 1.16 99 1.32 16 MFS 440 795 2,433 2,610 84 1.07 77 1.01 17 Hartford Mutual Funds (992) (2,115) (9,598) (9,850) 83 1.06 91 1.21 18 Wells Fargo Advantage 590 1,599 3,879 3,645 80 1.03 71 0.94 19 American Century Investments 213 313 2,866 2,502 78 1.00 72 0.96 20 Lord Abbett 454 751 4,900 5,063 69 0.89 63 0.83 21 Eaton Vance (693) (1,708) (2,389) (2,193) 62 0.79 64 0.84 22 Principal Funds 4 154 2,228 2,999 61 0.78 55 0.73 23 ING Retirement Funds (440) (856) (5,271) (5,710) 60 0.77 62 0.82 24 Legg Mason/Western (146) (4) (3,763) (5,077) 58 0.74 60 0.79 25 Harbor 357 362 2,066 1,641 56 0.72 54 0.72 26 Goldman Sachs (389) (540) (1,975) (2,419) 55 0.71 57 0.76 27 GMO 363 298 (1,136) (1,193) 55 0.71 54 0.72 28 Federated 770 1,261 512 (33) 50 0.64 49 0.65 29 Putnam (404) (682) (3,320) (3,623) 49 0.63 52 0.69 30 AllianceBernstein (303) (389) (3,294) (3,699) 49 0.63 53 0.70 31 Thornburg 62 (93) 5,797 6,615 48 0.62 43 0.58 32 First Eagle 387 841 6,383 7,172 48 0.62 39 0.52 33 Dreyfus 3 168 1,086 1,220 47 0.60 44 0.58 34 DWS Investments (222) (296) (1,367) (1,588) 46 0.59 47 0.62 35 Ivy Funds (4) 114 4,481 5,085 46 0.59 41 0.54 36 Nuveen 286 (21) 1,251 (35) 44 0.56 42 0.56 37 Prudential Investments 338 579 4,224 4,634 42 0.54 37 0.49 38 USAA 127 150 1,804 1,909 40 0.52 37 0.49 39 MainStay 603 1,449 8,329 8,640 39 0.50 30 0.39 40 Oakmark (135) (162) 2,606 2,941 38 0.49 34 0.46 41 TIAA-CREF Mutual Funds 3,194 3,485 6,582 7,054 37 0.47 29 0.39 42 Northern Funds 56 261 2,126 2,656 37 0.47 34 0.45 43 Natixis Funds 344 434 2,376 2,187 36 0.47 34 0.45 44 Russell (55) (76) 739 676 33 0.42 32 0.42 45 Pioneer Investments (250) 66 (803) (732) 33 0.42 33 0.44
Morningstar Direct SM Release Date: 2011-12-13 Page 5 of 6 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 46 Schwab Funds 24 40 89 (101) 33 0.42 31 0.41 47 Royce (306) (806) (800) (690) 32 0.41 32 0.42 48 Artisan (126) (52) 652 730 31 0.40 30 0.39 49 Delaware Investments 295 499 1,952 1,759 31 0.39 28 0.37 50 Davis Funds (754) (1,426) (6,999) (7,381) 27 0.35 34 0.45 Top 10 (11,468) (16,199) (10,376) (20,167) 4,397 56.47 4,303 56.99 Top 50 (8,612) (13,667) 18,706 6,877 6,673 85.71 6,492 85.99 Other 2,293 10,133 56,595 64,245 1,113 14.29 1,037 13.74 All (6,319) (3,534) 75,300 71,122 7,786 100.00 7,529 99.73 Asset Classes Name Estimated Net Flow ($mil) Assets Under Management ($bil) U.S. Stock (12,509) (28,796) (74,527) (74,817) 3,172 40.74 3,086 40.87 International Stock (4,294) (7,161) 8,387 20,586 1,176 15.11 1,254 16.61 Balanced (4,634) (8,456) 12,071 14,202 760 9.76 720 9.54 Taxable Bond 10,166 31,875 120,949 113,370 2,039 26.19 1,865 24.70 Municipal Bond 3,052 5,072 (15,702) (28,813) 489 6.28 493 6.53 Alternative 1,647 2,160 12,801 13,880 100 1.28 93 1.23 Commodities 253 1,603 10,201 11,788 51 0.65 39 0.52 All Long Term (6,319) (3,703) 74,181 70,197 7,786 100.00 7,550 100.00 Morningstar Stewardship Grades Stewardship Grade Funds Graded Estimated Net Flow ($mil) Total Net Assets ($bil) 11-2011 11-2010 YTD 2011 YTD 2010 11-2011 Mkt Sh % 11-2010 Mkt Sh % A 85 (7,836) (14,967) (74,948) (80,893) 1,267 16.27 1,312 17.38 B 286 (1,937) (5,902) 28,019 27,589 1,834 23.56 1,777 23.53 C 654 (6,608) (10,718) (27,930) (37,612) 1,754 22.53 1,727 22.88 D 78 (708) (525) (525) (244) 133 1.70 131 1.74 F 2 3 (8) (114) (118) 1 0.01 1 0.01 Not Rated 5023 10,767 28,419 149,678 161,475 2,797 35.92 2,601 34.46
Morningstar Direct SM Release Date: 2011-12-13 Page 6 of 6 Investment Company Institute Methods of Sale Name Estimated Net Flow ($mil) Total Net Assets ($bil) Institutional 14,035 26,508 209,526 227,215 2,470 31.73 2,201 29.15 Non-Proprietary (9,526) (15,633) (63,215) (72,471) 2,346 30.13 2,393 31.70 Direct Market (15,507) (26,232) (91,185) (102,392) 2,259 29.01 2,287 30.29 Proprietary Non-Bank (1,092) (1,771) (11,926) (13,501) 262 3.36 265 3.51 Variable Annuity (1,151) (2,224) (13,480) (14,358) 197 2.54 204 2.70 Proprietary Bank 349 557 9,629 9,451 169 2.17 154 2.04 Unclassified 6,572 15,092 34,831 36,253 83 1.07 46 0.61 Total (6,319) (3,703) 74,181 70,197 7,786 100.00 7,550 100.00 Morningstar Ratings Name Estimated Net Flow ($mil) Total Net Assets ($bil) QQQQQ 8,754 17,651 128,060 134,990 1,192 15.31 1,040 13.77 QQQQ 1,235 (1,182) 67,843 75,774 2,835 36.41 2,692 35.66 QQQ (11,134) (25,374) (116,817) (131,496) 2,574 33.06 2,639 34.96 QQ (8,852) (16,581) (96,116) (106,680) 764 9.81 856 11.34 Q (6,935) (8,353) (27,211) (30,267) 138 1.78 168 2.23 Not Rated 10,613 30,137 118,422 127,876 283 3.63 154 2.05 Total (6,319) (3,703) 74,181 70,197 7,786 100.00 7,550 100.00