Morningstar Direct SM Asset Flows Commentary: United States

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 +1 312-384-3924 alina.lamy@morningstar.com 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 2017 1 Year Assets $Bil Feb 2017 1 Year Assets U.S. Equity (8,862) (264,339) 3,707 29,072 284,937 3,199 Sector Equity (1,043) (29,697) 393 9,517 57,669 446 International Equity 1,131 (68,838) 1,482 13,587 91,841 999 Allocation (2,146) (44,151) 1,209 1,026 787 62 Taxable Bond 17,396 87,305 2,354 18,149 166,942 960 Municipal Bond 2,193 23,239 623 48 6,055 29 Alternative (533) (12,921) 164 993 1,371 46 Commodities 324 2,036 26 1,618 4,005 67 All Long Term 8,461 (307,366) 9,958 74,010 613,608 5,808 Money Market (267) (96,891) 2,574 $Bil *Includes liquidated and merged funds.

Morningstar Quantitative Research 15 March 2017 Page 2 of 9 Total (Active and Passive) Estimated Net Flows Feb Assets 1 Year $Mil 2017 $Bil U.S. Equity 20,210 20,598 6,906 Sector Equity 8,474 27,971 839 International Equity 14,718 23,003 2,481 Allocation (1,120) (43,364) 1,271 Taxable Bond 35,545 254,248 3,314 Municipal Bond 2,242 29,294 652 Alternative 460 (11,550) 210 Commodities 1,942 6,041 93 All Long Term 82,472 306,242 15,766 Money Market (267) (96,891) 2,574 All category groups except allocation enjoyed positive flows in February. Optimism about the U.S. market seemed to be catching on, with effects extending to (and flows trickling into) other asset classes as well. U.S. equity has been in positive-flow territory for four consecutive months now, a feat not witnessed since September through December 2014. Exhibit 1 U.S. Equity Category Group Monthly Flows ($ Billion) 30 20 10 0-10 -20-30 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 Jan 17

Morningstar Quantitative Research 15 March 2017 Page 3 of 9 Exhibit 2 Category Group Flows During the Past 12 Months ($ Billion) 100 80 60 U.S. Equity Sector Equity International Equity Allocation Taxable Bond Municipal Bond Alternative Commodities 40 20 0-20 -40 Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb 2016 2017 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.

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 42,245 804 5,990 80,746 454 Large Blend (4,334) (64,844) 717 14,827 154,322 2,003 Foreign Large Blend 73 (14,668) 323 7,936 69,854 544 Mid-Blend 94 (5,368) 108 4,655 25,799 306 Corporate Bond 487 9,425 86 3,884 16,986 67 Lagging World Allocation (1,566) (30,874) 297 (2) (7) 0 High-Yield Bond (778) 9,467 278 149 7,376 44 Intermediate Government (902) (946) 92 273 3,001 19 Large Growth (3,467) (117,963) 1,197 2,919 10,360 203 Equity Energy (348) 341 21 (133) 4,198 34 $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:

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 18,556 879 29,793 294,514 2,752 American Funds 1,537 (4,877) 1,320 Fidelity Investments (2,925) (63,568) 1,006 3,995 39,612 278 BlackRock/iShares (656) (18,899) 206 16,703 147,574 1,078 SPDR State Street Global Advisors 221 1,529 5 9,120 60,602 531 T. Rowe Price 1,678 (4,535) 497 (213) 254 33 Franklin Templeton Investments (1,817) (39,884) 386 45 349 0 Dimensional Fund Advisors 3,426 22,682 336 PIMCO 1,196 (9,596) 303 (7) 516 4 J.P. Morgan 457 (9,501) 276 28 745 7 $Bil

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 -10.7-4.1-2.0 2.1 0.4 1.8 3.0 4.9 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 0.1 0.1 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

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 2017 1 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 46,895 541,309 389,777 Vanguard Total Intl Stock Index 3,276 31,841 251,607 182,690 SPDR S&P 500 ETF 3,165 28,004 235,228 170,845 Vanguard Total Bond Market II Index 2,856 28,793 120,946 90,935 Vanguard 500 Index 2,604 39,559 306,379 211,934

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 2017 1 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) 316 705 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.

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 60602 USA Morningstar 2017. 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 +1 312-696-6100. To license the research, call +1 312-696-6869.

Morningstar Direct SM Publishing Date: 2017-03-15 Page 1 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 02-28-2017 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 02-2017 Mkt Sh % 02-2016 Mkt Sh % 1-Mo YTD 1 US Fund Large Blend 10,494 21,882 21,882 89,491 2,720 17.17 2,115 15.86 7.19 10.97 2 US Fund Large Growth (549) (12,801) (12,801) (107,605) 1,401 8.84 1,251 9.38 7.15 15.01 3 US Fund Intermediate-Term Bond 12,223 18,548 18,548 123,003 1,257 7.94 1,113 8.34 1.39 2.15 4 US Fund Large Value 2,330 3,901 3,901 18,975 1,165 7.36 913 6.84 6.82 8.72 5 US Fund Foreign Large Blend 7,975 18,325 18,325 55,203 879 5.55 702 5.26 2.42 9.31 6 US Fund Allocation--50% to 70% Equity 774 716 716 (1,490) 512 3.23 438 3.28 4.10 7.18 7 US Fund Diversified Emerging Mkts 4,199 8,787 8,787 30,223 421 2.66 306 2.29 5.17 16.46 8 US Fund Mid-Cap Blend 4,749 9,568 9,568 20,431 415 2.62 307 2.30 4.90 8.71 9 US Fund World Stock (185) (1,343) (1,343) (17,570) 405 2.56 351 2.63 4.89 11.05 10 US Fund Foreign Large Growth 504 389 389 (11,605) 359 2.27 329 2.47 2.56 10.82 11 US Fund Small Blend 1,427 5,569 5,569 22,508 351 2.21 247 1.86 2.96 3.58 12 US Fund Short-Term Bond 3,570 4,731 4,731 16,013 350 2.21 328 2.46 0.56 1.10 13 US Fund High Yield Bond (580) 961 961 16,892 326 2.06 265 1.99 2.54 5.05 14 US Fund World Allocation (1,569) (3,258) (3,258) (30,881) 297 1.88 292 2.19 3.32 6.79 15 US Fund Mid-Cap Growth 373 (1,480) (1,480) (21,278) 276 1.74 245 1.84 5.80 12.96 16 US Fund Mid-Cap Value 203 (3) (3) (3,061) 248 1.57 199 1.49 4.80 8.17 17 US Fund World Bond 562 4,845 4,845 1,761 214 1.35 203 1.52 1.74 3.61 18 US Fund Allocation--30% to 50% Equity 21 276 276 1,506 211 1.33 184 1.38 3.12 5.54 19 US Fund Small Growth 278 59 59 (8,827) 208 1.32 169 1.27 4.58 8.98 20 US Fund Multisector Bond 2,538 3,385 3,385 7,978 197 1.24 170 1.28 2.02 4.00 21 US Fund Muni National Interm 677 1,540 1,540 13,268 184 1.16 173 1.29 1.18 2.17 22 US Fund Foreign Large Value 583 1,571 1,571 445 161 1.02 138 1.03 1.81 8.03 23 US Fund Small Value 702 3,005 3,005 9,882 158 1.00 110 0.83 2.12 1.85 24 US Fund Real Estate (171) 960 960 10,074 157 0.99 130 0.98 6.76 6.33 25 US Fund Health 236 (1,802) (1,802) (16,653) 154 0.97 149 1.12 13.58 21.92 26 US Fund Corporate Bond 4,371 8,388 8,388 26,412 153 0.97 122 0.91 2.18 3.11 27 US Fund Allocation--70% to 85% Equity (337) (458) (458) (4,983) 135 0.85 120 0.90 4.49 8.52 28 US Fund Inflation-Protected Bond 2,299 5,071 5,071 20,523 133 0.84 110 0.82 0.72 2.38 29 US Fund Bank Loan 4,432 9,197 9,197 24,605 126 0.80 91 0.68 1.00 1.98 30 US Fund Muni National Short 466 1,170 1,170 4,103 124 0.78 121 0.91 0.79 1.68 31 US Fund Ultrashort Bond 3,416 7,131 7,131 18,419 114 0.72 92 0.69 0.29 0.59 32 US Fund Intermediate Government (629) (732) (732) 2,055 111 0.70 110 0.82 0.79 1.01 33 US Fund Nontraditional Bond 1,156 2,676 2,676 (11,472) 108 0.68 113 0.85 1.04 2.49 34 US Fund Technology 1,565 2,915 2,915 3,597 101 0.63 74 0.55 7.93 18.99 35 US Fund Muni National Long 81 777 777 5,734 89 0.56 86 0.65 1.28 2.23 2017 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

Morningstar Direct SM Publishing Date: 2017-03-15 Page 2 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 02-28-2017 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 02-2017 Mkt Sh % 02-2016 Mkt Sh % 1-Mo YTD 36 US Fund High Yield Muni 1,047 2,728 2,728 4,603 87 0.55 83 0.62 2.26 3.71 37 US Fund Emerging Markets Bond 1,581 2,075 2,075 11,882 66 0.42 48 0.36 3.79 7.09 38 US Fund Financial 2,656 4,217 4,217 13,922 63 0.40 37 0.27 6.77 8.15 39 US Fund Short Government 90 314 314 (4,498) 59 0.38 64 0.48 0.25 0.48 40 US Fund Europe Stock (172) (665) (665) (24,202) 56 0.35 74 0.55 2.32 6.18 41 US Fund Equity Energy (481) (50) (50) 4,538 55 0.35 39 0.29 (7.09) (9.26) 42 US Fund Global Real Estate 213 166 166 (3,324) 53 0.33 52 0.39 5.67 7.38 43 US Fund Multialternative (394) (628) (628) (6,494) 52 0.33 57 0.43 2.10 3.32 44 US Fund Commodities Precious Metals 1,506 1,425 1,425 4,466 51 0.32 45 0.34 8.03 19.96 45 US Fund Energy Limited Partnership 1,008 1,936 1,936 7,047 49 0.31 31 0.23 0.04 4.78 46 US Fund Preferred Stock 656 763 763 8,887 45 0.28 35 0.26 3.20 6.81 47 US Fund Natural Resources 12 870 870 1,736 41 0.26 29 0.22 (3.36) 3.37 48 US Fund Foreign Small/Mid Growth 32 (133) (133) (1,879) 37 0.23 34 0.26 3.05 11.31 49 US Fund Muni California Long (130) (90) (90) 430 36 0.23 36 0.27 1.41 2.47 50 US Fund Japan Stock (119) 1,082 1,082 (6,733) 36 0.22 37 0.28 3.13 9.13 51 US Fund Long-Short Equity 178 (122) (122) (4,493) 35 0.22 36 0.27 3.04 5.72 52 US Fund Commodities Broad Basket 372 191 191 3,262 34 0.22 26 0.20 0.32 1.94 53 US Fund Tactical Allocation 163 348 348 1,733 34 0.21 30 0.22 3.79 6.42 54 US Fund Utilities 43 (973) (973) (3,850) 34 0.21 32 0.24 7.66 11.39 55 US Fund Foreign Small/Mid Blend 1,207 1,821 1,821 1,358 33 0.21 28 0.21 3.75 11.77 56 US Fund Miscellaneous Region (424) 699 699 (312) 33 0.21 29 0.22 57 US Fund Allocation--85%+ Equity (144) (532) (532) (4,121) 31 0.20 28 0.21 5.28 10.15 58 US Fund Equity Precious Metals 1,818 2,550 2,550 8,425 30 0.19 18 0.14 (7.38) 21.08 59 US Fund Industrials 977 1,474 1,474 9,104 29 0.18 15 0.11 5.30 9.90 60 US Fund Long Government 349 573 573 (5,536) 27 0.17 34 0.25 3.17 4.27 61 US Fund Foreign Small/Mid Value 243 439 439 (537) 27 0.17 22 0.17 3.08 10.88 62 US Fund Managed Futures (116) (140) (140) 3,025 26 0.17 26 0.20 3.31 1.51 63 US Fund Consumer Cyclical 258 530 530 (3,199) 26 0.16 25 0.19 3.59 8.76 64 US Fund Muni California Intermediate 134 511 511 1,746 25 0.16 23 0.18 1.26 2.40 65 US Fund Pacific/Asia ex-japan Stk 59 (70) (70) (538) 23 0.14 20 0.15 5.44 17.59 66 US Fund Muni Single State Long 2 2 2 414 22 0.14 22 0.16 1.12 1.88 67 US Fund Market Neutral 60 41 41 (2,553) 21 0.13 23 0.17 0.64 0.55 68 US Fund Long-Term Bond 51 238 238 (1,104) 21 0.13 21 0.15 3.39 4.60 69 US Fund Trading--Leveraged Equity (55) (1,484) (1,484) (4,459) 20 0.13 16 0.12 70 US Fund Consumer Defensive 293 (18) (18) (3,471) 19 0.12 21 0.16 6.67 9.73 2017 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

Morningstar Direct SM Publishing Date: 2017-03-15 Page 3 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 02-28-2017 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 02-2017 Mkt Sh % 02-2016 Mkt Sh % 1-Mo YTD 71 US Fund Muni New York Long (29) (69) (69) (285) 19 0.12 19 0.14 1.28 2.23 72 US Fund Convertibles (173) (283) (283) (1,277) 17 0.11 16 0.12 2.96 7.71 73 US Fund Infrastructure 217 219 219 (44) 15 0.10 14 0.10 5.85 9.55 74 US Fund China Region (75) (452) (452) (2,863) 15 0.09 15 0.11 6.10 18.72 75 US Fund Option Writing (322) (371) (371) (83) 15 0.09 15 0.11 1.72 3.80 76 US Fund Diversified Pacific/Asia 164 200 200 (172) 14 0.09 12 0.09 4.00 13.77 77 US Fund Allocation--15% to 30% Equity (267) (206) (206) (398) 13 0.08 13 0.09 2.31 3.98 78 US Fund Muni Single State Interm (46) (63) (63) 5 12 0.08 13 0.10 1.03 1.69 79 US Fund Emerging-Markets Local-Currency Bond (20) 167 167 (440) 11 0.07 10 0.08 3.87 8.35 80 US Fund Muni New York Intermediate 9 11 11 79 10 0.07 10 0.08 1.13 1.93 81 US Fund Muni Single State Short 39 2 2 (792) 10 0.06 11 0.08 0.94 2.01 82 US Fund Trading--Inverse Equity 574 979 979 4,446 10 0.06 11 0.08 83 US Fund India Equity 147 170 170 243 10 0.06 7 0.05 12.07 25.36 84 US Fund Muni Pennsylvania (6) (1) (1) (59) 9 0.06 9 0.07 1.28 2.12 85 US Fund Latin America Stock 636 716 716 2,148 9 0.06 4 0.03 7.62 25.35 86 US Fund Communications (272) (17) (17) (86) 8 0.05 7 0.05 (0.89) 4.72 87 US Fund Long-Short Credit (16) (91) (91) (2,495) 8 0.05 10 0.07 1.02 2.74 88 US Fund Multicurrency (49) (102) (102) (693) 7 0.05 7 0.06 1.65 4.13 89 US Fund Muni Massachusetts (4) 6 6 (33) 7 0.04 7 0.05 1.28 1.96 90 US Fund Muni New Jersey (4) (4) (4) (169) 6 0.04 7 0.05 1.39 1.97 91 US Fund Commodities Energy 17 (109) (109) (2,124) 5 0.03 6 0.04 (4.40) (16.16) 92 US Fund Muni Ohio (18) (26) (26) 54 5 0.03 5 0.04 1.14 1.90 93 US Fund Muni Minnesota 23 58 58 209 5 0.03 5 0.04 1.15 1.75 94 US Fund Miscellaneous Sector 102 216 216 217 5 0.03 4 0.03 95 US Fund Target-Date 2030 58 (104) (104) (530) 4 0.03 4 0.03 4.33 8.24 96 US Fund Trading--Inverse Debt 185 291 291 121 4 0.03 4 0.03 97 US Fund Target-Date 2020 7 (215) (215) (604) 4 0.02 4 0.03 3.38 6.32 98 US Fund Volatility 162 413 413 3,678 3 0.02 3 0.02 99 US Fund Target-Date 2040 49 (25) (25) (368) 3 0.02 3 0.02 4.95 9.54 100 US Fund Bear Market 73 100 100 (291) 3 0.02 4 0.03 (8.81) (17.00) 101 US Fund Trading--Leveraged Commodities 243 563 563 (1,449) 3 0.02 3 0.02 102 US Fund Target-Date 2025 74 (79) (79) (825) 3 0.02 3 0.02 3.89 7.40 103 US Fund Target-Date 2035 73 7 7 (143) 2 0.01 2 0.01 4.70 9.10 104 US Fund Target-Date 2050 38 7 7 (424) 2 0.01 2 0.01 5.14 10.00 105 US Fund Commodities Agriculture 49 110 110 290 2 0.01 1 0.01 (0.74) 5.98 2017 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

Morningstar Direct SM Publishing Date: 2017-03-15 Page 4 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 02-28-2017 Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo QTD YTD 1-Yr 02-2017 Mkt Sh % 02-2016 Mkt Sh % 1-Mo YTD 106 US Fund Target-Date Retirement 32 32 32 (17) 1 0.01 1 0.01 2.61 4.75 107 US Fund Target-Date 2045 49 34 34 (1) 1 0.01 1 0.01 5.05 9.89 108 US Fund Single Currency (36) (42) (42) 25 1 0.01 1 0.01 109 US Fund Trading--Miscellaneous (15) (17) (17) 12 1 0.01 1 0.01 110 US Fund Trading--Inverse Commodities 45 (41) (41) 302 1 0.01 1 0.01 111 US Fund Target-Date 2055 24 43 43 33 0 0.00 0 0.00 5.14 10.10 112 US Fund Commodities Industrial Metals 0 1 1 178 0 0.00 0 0.00 113 US Fund Target-Date 2015 (5) (93) (93) (417) 0 0.00 1 0.01 3.12 5.93 114 US Fund Trading--Leveraged Debt (8) (32) (32) (148) 0 0.00 0 0.00 115 US Fund Target-Date 2000-2010 (2) (32) (32) (208) 0 0.00 0 0.00 2.92 5.43 116 US Fund Target-Date 2060+ 6 9 9 38 0 0.00 0 0.00 5.24 10.32 117 US Fund Commodities Miscellaneous 0 0 0 (1) 0 0.00 0 0.00 Top 10 42,514 67,973 67,973 199,056 9,533 60.17 7,823 58.67 All 82,886 146,430 146,430 307,593 15,844 100.00 13,335 100.00 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 02-2017 Mkt Sh % 02-2016 Mkt Sh % 1 Vanguard 32,421 78,406 78,406 313,070 3,631 22.92 2,821 21.15 2 American Funds 1,537 3,004 3,004 (4,877) 1,320 8.33 1,118 8.39 3 Fidelity Investments 1,069 (3,763) (3,763) (23,957) 1,284 8.10 1,111 8.33 4 ishares 15,417 30,282 30,282 136,343 1,046 6.60 780 5.85 5 SPDR State Street Global Advisors 9,341 9,946 9,946 62,131 536 3.38 401 3.00 6 T. Rowe Price 1,465 1,917 1,917 (4,281) 530 3.35 448 3.36 7 Franklin Templeton Investments (1,771) (4,020) (4,020) (39,535) 387 2.44 373 2.80 8 Dimensional Fund Advisors 3,426 6,985 6,985 22,682 336 2.12 255 1.91 9 Pimco 1,189 2,113 2,113 (9,080) 307 1.94 292 2.19 10 JPMorgan 485 (831) (831) (8,756) 283 1.78 255 1.91 11 BlackRock 631 682 682 (7,668) 238 1.50 219 1.64 12 MFS 205 310 310 2,233 197 1.24 168 1.26 13 Dodge & Cox 605 1,041 1,041 (8,455) 194 1.22 162 1.22 14 OppenheimerFunds 638 1,216 1,216 (7,160) 184 1.16 165 1.24 15 Invesco 297 289 289 2,655 159 1.00 131 0.99 2017 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

Morningstar Direct SM Publishing Date: 2017-03-15 Page 5 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 02-28-2017 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 02-2017 Mkt Sh % 02-2016 Mkt Sh % 16 Columbia (1,394) (2,251) (2,251) (8,089) 148 0.94 135 1.01 17 Jackson National 417 820 820 3,768 143 0.90 117 0.88 18 John Hancock 754 (868) (868) (5,028) 130 0.82 116 0.87 19 Principal Funds 245 (799) (799) 364 124 0.79 106 0.80 20 PowerShares 1,778 4,219 4,219 14,092 113 0.72 82 0.62 21 Lord Abbett 1,584 2,620 2,620 7,441 113 0.71 95 0.71 22 Janus (31) (538) (538) (2,397) 111 0.70 97 0.73 23 TIAA-CREF Asset Management 1,298 2,488 2,488 9,699 111 0.70 84 0.63 24 American Century Investments (485) (1,060) (1,060) (1,063) 109 0.69 94 0.71 25 AXA Equitable (531) (1,030) (1,030) (5,353) 103 0.65 92 0.69 26 Hartford Mutual Funds (81) (26) (26) (2,434) 101 0.64 87 0.65 27 Legg Mason 733 (184) (184) 275 96 0.61 84 0.63 28 SEI 170 (54) (54) (743) 94 0.59 83 0.63 29 Wells Fargo Funds (538) (2,763) (2,763) (16,122) 93 0.58 97 0.73 30 Metropolitan West Funds 534 292 292 6,318 88 0.55 80 0.60 31 Prudential Investments (376) (859) (859) 4,028 85 0.54 72 0.54 32 Goldman Sachs 47 153 153 (8,680) 83 0.53 81 0.61 33 Voya (753) (1,624) (1,624) (7,743) 83 0.52 77 0.58 34 First Eagle 406 832 832 1,269 77 0.48 65 0.49 35 Oakmark 782 1,373 1,373 (12,512) 75 0.47 67 0.50 36 DoubleLine 826 636 636 4,536 73 0.46 67 0.50 37 Eaton Vance 337 733 733 3,096 72 0.45 61 0.46 38 Harbor (1,306) (2,063) (2,063) (12,107) 69 0.43 71 0.53 39 AllianceBernstein 573 952 952 2,302 68 0.43 58 0.44 40 Nuveen 750 1,668 1,668 3,396 68 0.43 61 0.46 41 Federated (430) (171) (171) 240 67 0.42 60 0.45 42 Schwab ETFs 2,257 4,462 4,462 19,348 67 0.42 39 0.29 43 Putnam (64) (497) (497) (6,485) 66 0.41 63 0.47 44 Schwab Funds (148) 80 80 (784) 64 0.41 53 0.40 45 USAA 76 13 13 (679) 61 0.39 55 0.41 46 Dreyfus (154) 85 85 (1,682) 60 0.38 54 0.40 47 MainStay (25) (1,471) (1,471) (7,836) 55 0.35 54 0.41 48 Natixis Funds (362) (722) (722) (5,375) 52 0.33 53 0.39 49 Guggenheim Investments 1,761 3,788 3,788 10,941 52 0.33 35 0.27 50 GMO (969) (2,627) (2,627) (17,483) 51 0.32 61 0.46 2017 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

Morningstar Direct SM Publishing Date: 2017-03-15 Page 6 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 02-28-2017 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 02-2017 Mkt Sh % 02-2016 Mkt Sh % Top 10 64,577 124,040 124,040 443,741 9,660 60.97 7,855 58.91 Top 50 74,634 133,184 133,184 393,864 13,657 86.20 11,363 85.21 Other 8,252 13,271 13,271 (65,416) 2,187 13.80 1,948 14.61 All 82,886 146,455 146,455 328,448 15,844 100.00 13,311 99.82 2017 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

Morningstar Direct SM Publishing Date: 2017-03-15 Page 7 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 02-28-2017 Asset Classes Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 02-2017 Mkt Sh % 02-2016 Mkt Sh % US Equity 20,008 29,700 29,700 20,517 6,942 43.82 5,557 41.67 Sector Equity 8,475 13,193 13,193 28,033 839 5.29 676 5.07 International Equity 14,775 31,534 31,534 23,209 2,517 15.89 2,106 15.80 Allocation (1,131) (3,812) (3,812) (43,374) 1,272 8.03 1,142 8.56 Taxable Bond 36,065 68,330 68,330 255,378 3,318 20.94 2,927 21.95 Municipal Bond 2,241 6,551 6,551 29,309 652 4.11 629 4.72 Alternative 509 (684) (684) (11,549) 211 1.33 218 1.64 Commodities 1,945 1,618 1,618 6,070 93 0.59 79 0.59 All Long Term 82,886 146,430 146,430 307,593 15,844 100.00 13,335 100.00 Morningstar Ratings Name Estimated Net Flow ($mil) Total Net Assets ($bil) 1-Mo QTD YTD 1-Yr 02-2017 Mkt Sh % 02-2016 Mkt Sh % QQQQQ 35,429 67,564 67,564 230,921 3,611 22.79 2,870 21.52 QQQQ 33,409 52,798 52,798 163,683 6,559 41.40 5,416 40.61 QQQ 7,183 11,430 11,430 (53,208) 4,132 26.08 3,625 27.19 QQ (2,093) (4,038) (4,038) (81,819) 987 6.23 950 7.13 Q (789) (1,228) (1,228) (17,588) 133 0.84 134 1.00 Not Rated 9,747 19,904 19,904 65,605 421 2.66 340 2.55 Total 82,886 146,430 146,430 307,593 15,844 100.00 13,335 100.00 2017 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