Morningstar Direct SM U.S. Asset Flows Update

? Morningstar Direct SM U.S. Asset Flows Update Morningstar Manager Research 17 June 2015 Data through May 31, 2015 U.S. Mutual Funds and Exchange- Traded Products Alina Lamy Senior Analyst Markets Research +1 312-384-3924 alina.lamy@morningstar.com International-Equity Funds Continue to Lead Flows in May Investors continued to direct money to international-equity and taxable-bond funds in May. International equity was the leading Morningstar category group, with a $24.0 billion estimated total inflow. Again, most of this inflow went into passive funds, signaling strong investor preference for passive strategies in the international-equity space. However, it s worth noting that May s total international-equity inflow was lower than those of previous months. Whether it was an off month or the beginning of a slowdown, it s too early to say. The foremost question on everyone s mind nowadays is why taxable-bond funds keep receiving strong inflows despite rising long-term bond yields and the strong possibility that the Federal Reserve will raise short-term interest rates in 2015. Active U.S. equity funds once again experienced an outflow in May. After an April outflow of $18.9 billion, the largest seen in a single month since July 2011, May s outflow was smaller, at $13.0 billion. Still, the active-passive pattern held: Active U.S. equity kept suffering redemptions, while passive U.S. equity received a small inflow. Active Passive Estimated Net Flows* Assets May Assets May 2015 1 Year 1 Year $Mil $Bil 2015 $Bil U.S. Equity (12,970) (152,743) 3,854 1,021 157,241 2,448 Sector Equity 209 20,365 419 335 38,320 369 International Equity 3,490 46,195 1,689 20,522 162,144 872 Allocation 1,348 28,988 1,199 218 4,767 56 Taxable Bond 1,378 (20,935) 2,337 4,505 113,469 722 Municipal Bond (594) 28,831 573 273 4,612 19 Alternative 2,042 8,637 163 1 3,259 47 Commodities (134) 1,073 29 (1,423) 978 58 All Long Term (5,231) (39,860) 10,264 25,451 484,791 4,592 Money Market 32,171 19,190 2,611 *Includes liquidated and merged funds. Source: Morningstar Direct Asset Flows.

Page 2 of 9 Traditional bonds and bond funds tend not to perform well when interest rates rise, which is why one would expect investors to be selling heavily by now. Instead, after a few negative months driven largely by the PIMCO shakeup, bond funds began attracting consistent inflows. The largest taxable-bond inflow was $29.3 billion in February, and inflows have been decreasing since then. It s difficult, however, to interpret this decreasing trend as meaningful as long as bond flows remain positive and U.S. equity flows negative. Judged in the context of interest rates that are likely to begin rising soon, piling money into bond funds seems counterintuitive, but then again, investors are not the best market-timers. What if, however, interest rates are not the most important factor behind this decision, and investors are moving money into bond funds because they are influenced by stock market performance? After all, bonds still provide income and have a lower risk level than stocks, no matter whether interest rates are rising or falling. What the recent flow data seems to indicate is that investors are more concerned with equity risk than with rising interest rates right now. Looking back over the past 12 months, the clear winner in the equity/bond battle is international equity, as highlighted in Exhibit 2. When they are willing to assume risk, investors prefer to take it in international markets rather than at home. Also, the fact that U.S. stocks have been riding a bull market for the past six years may also weigh heavily in international equity s (or even taxable bonds ) favor. Exhibit 1. Monthly Flows During the Past 12 Months ($ Billion) 70 60 U.S. Equity Taxable Bond International Equity 50 40 30 20 10 0-10 -20-30 -40 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2014 2015 Source: Morningstar Direct Asset Flows.

Page 3 of 9 Highest-Receiving Categories: Foreign Large Blend and Intermediate Bond Foreign large blend was the top-receiving Morningstar Category in May, illustrative of the general move toward international equity. Again, passive funds took in the bulk of the inflow. In terms of top-flowing regions, investors continued to show interest in Europe stock. Intermediate-term bond funds kept receiving strong inflows in May. Within the taxable-bond category group, this is not surprising because intermediate-term bonds are less sensitive to interest rates than bonds with longer maturities. Just like in April, world bond was the other fixed-income category besides intermediate-term bond to grab a spot in the top five. Investors may see an opportunity in bonds overseas because, unlike U.S. rates, rates in other countries may stay low. With all of the quantitative-easing measures now in place in Europe, for example, rates are probably not going up anytime soon. Top- and Bottom-Flowing Categories in May Active Passive Estimated Net Flows* May Assets May Assets 1 Year 1 Year $Mil 2015 $Bil 2015 $Bil Leading Foreign Large Blend 2,074 25,201 412 12,128 92,124 403 Intermediate-Term Bond 1,732 14,511 762 3,574 57,384 350 World Bond (466) 4,986 156 2,678 17,494 64 Health 1,185 15,764 137 1,025 10,955 56 Europe Stock 279 (5) 15 1,680 19,737 67 Lagging Large Growth (2,686) (48,174) 1,249 (899) 2,655 161 Large Value (2,381) (20,034) 864 (33) 19,557 192 Mid-Cap Growth (2,273) (23,305) 301 100 3,530 24 Long Government (119) (225) 5 (1,894) (585) 17 Large Blend (4,410) (23,107) 748 2,560 91,181 1,551 *Excludes money market and funds of funds. Source: Morningstar Direct Asset Flows. Most U.S. equity categories landed on the lagging list in May. So did long government bonds, which are the most susceptible to rising interest rates because of their long maturities. Investors, understandably, would want to get rid of the bonds that carry the highest interestrate risk first.

Page 4 of 9 Top 10 U.S. Fund Families Active Passive Estimated Net Flows May Assets May Assets 1 Year 1 Year $Mil 2015 $Bil 2015 $Bil Vanguard (446) 18,780 786 16,414 239,706 2,103 Fidelity Investments (385) (13,284) 1,121 1,113 22,991 199 American Funds 916 8,392 1,230 BlackRock/iShares 314 17,114 226 1,442 99,901 832 T. Rowe Price 719 5,847 459 (58) 1,130 28 Franklin Templeton Investments (579) (5,116) 452 SPDR State Street Global Advisors 187 672 2 2,391 12,162 420 PIMCO (4,848) (173,604) 347 53 (2,052) 5 JPMorgan 888 21,435 270 18 (72) 8 Dimensional Fund Advisors 633 25,593 274 Source: Morningstar Direct Asset Flows. Wait. Wait. Wait. Is that a red (446) on Vanguard s line? I must confess that I felt compelled to go back and double-check the numbers. However, it was only on the active side, and at this point, a half-billion outflow can probably do as much damage to Vanguard as a flea bite to an elephant. On the passive side, Vanguard still received more money than all the other firms together, active and passive combined. On the active side, things didn t look stellar in May. American Funds, T. Rowe Price, and J.P. Morgan managed to stay positive in terms of flows, but overall flows were very small. Fidelity and Franklin Templeton continued to experience redemptions. State Street broke its streak of outflows after what was beginning to look like a worrying trend of redemptions from its flagship SPDR S&P 500 ETF SPY. A Light at the End of the Tunnel for PIMCO? PIMCO outflows are finally slowing down. In May, PIMCO Total Return PTTRX again lagged its benchmark, the Barclays U.S. Aggregate Bond Index. The fund's return from Sept. 27, 2014 (a day after Bill Gross' departure) to May 31, 2015, was 2.6%, which was just below the 2.8% return of the Aggregate Index. The fund experienced a $2.6 billion outflow in May. Although this was still an outflow, it was the fund s smallest since Gross left the firm. Another month of redemptions brought PIMCO s total outflows to $201.1 billion since January 2014, a 38% decrease in assets. Outflows from PIMCO Total Return alone amounted to $115.9 billion in the space of nine months.

Page 5 of 9 Exhibit 2. PIMCO Total Return and Firm-Level Flows ($ Billion) 10 0-10 -20-3 -5-2 -2-3 -3-4 -4-7 -5-5 -6-1 -4-2 -2-18 -32-10 -13-18 -12-14 -9-8 -6-10 -10-9 -3-5 -30-26 -28-40 -50-60 PIMCO Total Return Fund -49 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2014 2015 Source: Morningstar Direct Asset Flows. Bottom-Flowing Active and Passive Funds Assets Assets Estimated Net Flows May 2015 1 Year May 2015 May 2014 $Mil $Mil $Mil Active Funds PIMCO Total Return Fund (2,623) (125,200) 107,311 228,927 Artisan International Value Fund (1,435) (1,697) 9,407 12,172 Artisan International Fund (892) 1,323 19,059 17,291 Harbor Capital Appreciation Fund (883) (1,092) 26,158 23,263 Columbia Acorn Fund (796) (8,395) 12,469 19,954 Passive Funds ishares Russell 2000 (1,988) 761 27,240 24,034 PowerShares QQQ (1,934) (12,485) 39,008 43,383 ishares Short Treasury Bond (1,698) 254 2,415 2,161 Vanguard Total Stock Market Index Fund (1,426) 31,623 410,770 338,711 ishares iboxx $ High Yield Corporate Bd (1,394) 2,546 15,507 13,524 Source: Morningstar Direct Asset Flows.

Page 6 of 9 PIMCO Total Return once again was the leader in terms of outflows, followed by two Artisan funds, Harbor Capital Appreciation HACAX, and Columbia Acorn ACRNX, the latter of which landed on the bottom-flowing list for the second month in a row. On the passive side, the list looks somewhat mixed. Last month, it was State Street that had two of its exchange-traded funds land on the list of funds with the largest outflows. This month, it was ishares (with three ETFs). Strangely, Vanguard Total Stock Market VTSMX had a large outflow, even though total international-stock and U.S. passively managed stock funds all had big inflows at the category level. Top-Flowing Active and Passive Funds Assets Assets Estimated Net Flows May 2015 1 Year May 2015 May 2014 $Mil $Mil $Mil Active Funds Bridge Builder Large Cap Growth Fund 2,609 2,610 2,610 Bridge Builder Large Cap Value Fund 2,176 2,177 2,177 Bridge Builder Small/Mid Cap Growth Fund 1,412 1,413 1,413 GMO Implementation Fund 1,144 5,180 17,348 12,013 PIMCO Income Fund 1,005 8,856 46,197 35,727 Passive Funds Vanguard Total Intl Stock Idx Fund 5,797 40,099 166,817 126,364 Vanguard Total International Bd Idx Fund 3,012 16,789 42,391 24,314 SPDR S&P 500 ETF 2,953 1,047 176,956 160,160 ishares MSCI EAFE 1,654 7,847 61,591 55,803 Vanguard Total Bond Market Index Fund 1,170 26,080 145,211 116,386 Source: Morningstar Direct Asset Flows. Three Bridge Builder funds were newcomers to the top-flowing list this month. Considering their April 27, 2015, inception date, it s difficult to ascertain exactly why these newly created funds attracted such high inflows. The flows are probably not fresh investor capital and more likely the result of a transfer from a different investment vehicle. PIMCO Income PIMIX, which has a Morningstar Analyst Rating TM of Silver, landed fifth on the top-flowing active list in May, a welcome surprise. Or perhaps not such a surprise, given that Income outperformed Total Return over the past five years, as illustrated in the table below. One caveat, though: PIMCO Income is in the multisector bond Morningstar category and can

Page 7 of 9 have much higher allocations to emerging-market and high-yield bonds, so the comparison isn t 100% fair. In any case, however, it s encouraging to see investors regain some confidence (and PIMCO some of its footing) after so many months of severe outflows. Total Return (%) Name 1 month 6 months 1 year 3 year annualized 5 year annualized PIMCO Income 0.77 2.36 4.91 9.87 11.03 PIMCO Total Return 0.38 0.75 2.58 2.91 4.57 After four consecutive months of outflows, it s good to see State Street s SPDR S&P 500 ETF once again on the top-flowing list. Three Vanguard index funds and ishares MSCI EAFE EFA complete the ensemble, once again demonstrating the strong shift toward international-stock and taxable-bond funds.

Page 8 of 9 The currency-hedged ETF trend continues, with WisdomTree Europe Hedged Equity HEDJ and Deutsche X-trackers MSCI EAFE Hedged Equity DBEF continuing to receive strong inflows, although not strong enough to land them in the top-flowing five in May. Investors are diversifying away from U.S. equities, increasing their overseas allocations and positioning their portfolios to take advantage of the potential upside in Europe and possibly other regions. It appears that their main concern while doing so is currency risk, hence the preference for currency-hedged ETFs. As Exhibit 5 illustrates, assets in these vehicles increased from almost zero in 2012 to $63 billion currently. Exhibit 3. Assets in Currency-Hedged ETFs 30% 25% 20% 15% 10% 5% 0% Assets in Currency Hedged ETFs Trade Weighted U.S. Dollar Index % Change Billion 70 60 50 40 30 20 10-5% 2012 2013 2014 2015 0 Source: Morningstar Direct.

Page 9 of 9 Note: The figures in this report were compiled on June 10, 2015, 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. Also note that this report includes both mutual funds and exchange-traded funds, while past commentaries excluded ETFs. The decision to include ETFs and to split some of the data tables into active and passive groups was based on the fact that ETFs now account for a significant share of assets and flows. In addition, a large share of the flows to mutual funds during the past several years have gone to passive investments, often within retirement savings accounts. These flows may not be completely representative of incremental investment decisions. 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 2015. 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: 2015-06-16 Page 1 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 05-31-2015 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 05-2015 Mkt Sh % 05-2014 Mkt Sh % 1-Mo YTD 1 Large Blend (1,850) (17,974) (23,374) 68,073 2,299 15.48 2,020 14.74 2.46 5.88 2 Large Growth (3,582) (8,378) (20,363) (45,517) 1,410 9.49 1,281 9.35 3.71 11.39 3 Intermediate-Term Bond 5,306 11,898 44,174 71,895 1,112 7.49 1,021 7.45 (0.42) 2.37 4 Large Value (2,414) (7,473) (10,841) (477) 1,056 7.11 985 7.19 1.51 4.00 5 Foreign Large Blend 14,202 38,158 64,882 117,325 815 5.49 703 5.13 (0.55) 17.43 6 Moderate Allocation (134) (18) 4,654 11,690 575 3.87 528 3.86 0.45 3.52 7 World Stock (179) 360 (371) 5,718 443 2.98 417 3.04 (0.22) 9.39 8 Diversified Emerging Mkts 1,086 8,061 13,152 24,042 421 2.83 405 2.95 (6.60) 8.81 9 Foreign Large Growth 661 2,982 2,715 (6,933) 358 2.41 354 2.58 (0.07) 17.50 10 World Allocation 879 855 729 1,026 346 2.33 340 2.48 (0.63) 4.55 11 Mid-Cap Growth (2,081) (3,379) (7,529) (19,686) 325 2.19 307 2.24 4.34 13.08 12 Short-Term Bond (336) (1,343) (2,977) 5,869 325 2.19 319 2.33 0.14 2.08 13 High Yield Bond (899) (281) 9,772 (15,606) 324 2.18 341 2.49 0.64 6.87 14 Mid-Cap Blend 646 2,699 10,338 18,331 321 2.16 273 1.99 2.66 8.72 15 Small Blend (1,819) (2,988) (1,325) 54 291 1.96 270 1.97 2.70 5.99 16 Mid-Cap Value (1,529) (2,955) (3,938) (6,422) 265 1.78 252 1.84 1.73 5.96 17 Conservative Allocation 336 1,101 4,393 15,574 225 1.52 210 1.53 (0.49) 4.35 18 World Bond 2,217 7,559 13,927 22,485 220 1.48 201 1.47 (2.91) (3.62) 19 Small Growth 942 1,851 380 (9,713) 207 1.39 193 1.41 5.53 12.28 20 Health 2,210 4,233 17,203 26,719 193 1.30 120 0.87 13.61 31.29 21 Multisector Bond 768 1,595 5,121 11,247 185 1.24 173 1.26 1.01 1.91 22 Foreign Large Value 471 66 4,267 10,755 161 1.09 156 1.14 (2.64) 14.29 23 Muni National Interm 833 2,423 8,468 19,285 156 1.05 134 0.98 (0.78) 0.11 24 Nontraditional Bond (642) (1,242) (3,232) (233) 153 1.03 154 1.13 0.15 2.12 25 Real Estate (1,789) (3,283) (1,319) 3,120 137 0.92 124 0.90 (0.57) (2.43) 26 Small Value (167) 298 824 (24) 129 0.87 124 0.90 0.92 2.71 27 Bank Loan 604 898 (4,834) (31,573) 121 0.82 153 1.11 0.14 5.44 28 Corporate Bond 731 1,713 9,460 17,207 118 0.79 99 0.72 (0.97) 2.46 29 Muni National Short (75) (1,854) (1,450) 3,832 117 0.79 113 0.83 (0.41) (0.03) 30 Inflation-Protected Bond 354 1,498 4,963 5,541 106 0.71 102 0.74 (1.59) 1.88 31 Intermediate Government (116) 110 1,493 1,145 104 0.70 101 0.73 (0.24) 2.15 32 Technology 1,057 938 225 2,692 85 0.57 71 0.52 6.38 15.52 33 Ultrashort Bond (219) (2,559) (3,985) 279 84 0.56 83 0.61 0.11 0.71 34 Muni National Long (222) 0 802 1,804 83 0.56 79 0.58 (1.19) 0.02 35 Europe Stock 1,959 7,918 25,193 19,732 82 0.56 66 0.48 0.63 19.03 2015 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: 2015-06-16 Page 2 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 05-31-2015 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 05-2015 Mkt Sh % 05-2014 Mkt Sh % 1-Mo YTD 36 Emerging Markets Bond 836 1,375 579 (584) 77 0.52 83 0.60 (1.57) 2.63 37 High Yield Muni (659) (108) 1,526 5,674 76 0.51 67 0.49 (0.20) 2.28 38 Global Real Estate 30 (47) 1,751 3,947 57 0.39 52 0.38 (3.39) 6.72 39 Long/Short Equity (74) (545) (1,600) (2,758) 56 0.38 59 0.43 1.37 3.49 40 Short Government (530) (124) 1,180 2,186 53 0.36 51 0.37 0.05 1.06 41 Equity Energy (1,669) 754 6,711 8,818 51 0.34 53 0.38 (12.60) 1.95 42 Energy Limited Partnership 808 1,242 3,083 12,331 51 0.34 42 0.31 (5.42) (0.71) 43 Multialternative 1,829 3,683 6,372 11,636 46 0.31 34 0.25 0.66 2.55 44 Japan Stock 1,545 4,011 7,835 10,390 46 0.31 29 0.21 3.93 32.06 45 Miscellaneous Region 506 2,939 5,062 2,892 43 0.29 45 0.33 46 Natural Resources (89) (320) 2 (5,759) 42 0.28 56 0.41 (4.74) 4.35 47 Commodities Precious Metals (1,196) (916) 312 (2,703) 42 0.28 48 0.35 1.32 0.15 48 Financial 1,925 1,202 (4,177) (1,115) 42 0.28 39 0.29 2.73 5.39 49 Commodities Broad Basket 70 (449) (351) 1,102 38 0.26 52 0.38 (5.57) (6.37) 50 Foreign Small/Mid Growth 478 735 1,054 (690) 38 0.26 38 0.28 2.08 22.80 51 Muni California Long (53) 97 601 1,170 36 0.24 34 0.25 (0.33) 0.41 52 Pacific/Asia ex-japan Stk 267 940 3,767 5,744 35 0.24 28 0.20 (3.94) 16.48 53 Utilities (284) (897) (4,278) (117) 34 0.23 34 0.25 0.13 (4.68) 54 Tactical Allocation 342 746 1,801 2,701 33 0.22 30 0.22 (0.31) 4.77 55 Preferred Stock 112 522 3,256 6,191 32 0.21 25 0.18 (0.48) 4.54 56 Foreign Small/Mid Blend 847 1,701 3,166 4,236 31 0.21 27 0.20 1.08 21.10 57 China Region 1,469 2,910 3,746 6,480 29 0.20 18 0.13 (0.67) 46.45 58 Consumer Cyclical (413) (1,200) 2,434 7,985 28 0.19 17 0.13 2.48 8.65 59 Market Neutral (151) (949) (3,209) (4,552) 28 0.19 33 0.24 0.81 0.66 60 Foreign Small/Mid Value 307 635 1,301 2,337 25 0.17 23 0.17 (0.17) 20.27 61 Muni New York Long (86) (73) (147) (543) 24 0.16 24 0.17 (0.35) 0.40 62 Long-Term Bond (265) (594) (1,786) (2,388) 23 0.15 24 0.17 (2.49) (0.83) 63 Long Government (2,013) (1,273) (2,491) (810) 22 0.15 22 0.16 (3.05) (1.45) 64 Aggressive Allocation (4) 14 584 1,695 22 0.15 19 0.14 0.27 7.01 65 Convertibles 52 14 (522) (169) 22 0.14 21 0.15 3.88 11.14 66 Muni Single State Long (44) (3) 52 (288) 21 0.14 21 0.16 (0.07) 0.32 67 Managed Futures 529 1,342 3,718 4,965 20 0.13 13 0.09 1.08 4.00 68 Trading-Leveraged Equity (806) (1,886) (2,147) (506) 20 0.13 17 0.13 69 Industrials (697) (1,423) (3,373) (3,645) 19 0.13 22 0.16 0.35 2.55 70 Muni California Intermediate 119 289 1,142 2,549 19 0.13 16 0.12 (0.56) 0.14 2015 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: 2015-06-16 Page 3 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 05-31-2015 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 05-2015 Mkt Sh % 05-2014 Mkt Sh % 1-Mo YTD 71 Equity Precious Metals 75 (717) 687 493 19 0.12 21 0.16 (2.47) 4.62 72 Consumer Defensive (672) (644) (2,270) 3,189 18 0.12 13 0.10 2.91 7.85 73 Diversified Pacific/Asia 185 398 1,037 1,133 16 0.10 13 0.10 (0.89) 20.26 74 Muni Single State Interm (15) (12) 148 117 13 0.09 13 0.09 (0.25) 0.09 75 Multicurrency (57) (196) 793 1,177 12 0.08 11 0.08 (1.77) (0.37) 76 Muni Single State Short (25) (94) (156) (259) 11 0.08 11 0.08 (0.18) 0.14 77 India Equity 501 1,028 3,311 5,851 11 0.07 5 0.04 5.56 5.40 78 Muni Pennsylvania (25) 24 39 (65) 9 0.06 9 0.07 (0.07) 0.51 79 Trading-Inverse Equity 495 1,241 1,794 1,027 8 0.06 10 0.07 80 Target Date 2026-2030 30 29 294 224 7 0.05 6 0.05 0.19 6.00 81 Communications 26 204 206 100 7 0.05 7 0.05 (0.22) 11.16 82 Target Date 2016-2020 (1) (23) 133 (11) 7 0.05 7 0.05 0.57 4.29 83 Muni Massachusetts 5 7 56 97 7 0.04 7 0.05 (0.15) 0.17 84 Muni New Jersey (55) (61) (83) (241) 7 0.04 7 0.05 (0.32) (0.31) 85 Latin America Stock (100) (116) (762) (447) 6 0.04 9 0.06 (14.23) (19.18) 86 Trading-Inverse Debt 161 338 290 (75) 6 0.04 8 0.06 87 Commodities Energy (588) (1,054) 1,936 3,989 5 0.04 2 0.02 (2.53) (0.15) 88 Muni New York Intermediate (22) (2) 71 147 5 0.04 5 0.04 (0.50) 0.15 89 Target Date 2036-2040 15 7 252 180 5 0.04 5 0.03 1.04 6.97 90 Miscellaneous Sector 31 30 (18) (52) 5 0.03 5 0.04 91 Muni Ohio (6) 1 33 10 5 0.03 5 0.03 (0.18) 0.21 92 Muni Minnesota 9 13 89 154 4 0.03 4 0.03 (0.20) 0.29 93 Bear Market 113 (27) (186) (1,284) 4 0.03 6 0.05 (3.10) (14.47) 94 Target Date 2021-2025 8 36 105 235 3 0.02 3 0.02 (1.99) 7.02 95 Trading-Leveraged Commodities 7 (550) 1,168 3,135 3 0.02 1 0.01 96 Volatility 216 188 843 1,413 3 0.02 3 0.02 97 Retirement Income 4 25 89 11 3 0.02 3 0.02 0.16 2.65 98 Target Date 2046-2050 20 (14) 173 322 2 0.02 2 0.01 (2.37) 8.11 99 Target Date 2031-2035 17 39 106 235 2 0.01 2 0.01 (2.06) 7.85 100 Commodities Agriculture 86 92 (43) (313) 2 0.01 2 0.02 (3.70) (12.44) 101 Trading-Miscellaneous 36 (34) (61) 109 2 0.01 1 0.01 102 Single Currency 28 152 192 (30) 1 0.01 2 0.01 103 Target Date 2041-2045 11 28 80 180 1 0.01 1 0.01 (2.23) 8.13 104 Trading-Inverse Commodities 86 314 462 (639) 1 0.01 1 0.01 105 Target Date 2011-2015 (11) (25) (84) (140) 1 0.01 1 0.01 (1.73) 6.14 2015 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: 2015-06-16 Page 4 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 05-31-2015 Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo QTD YTD 1-Yr 05-2015 Mkt Sh % 05-2014 Mkt Sh % 1-Mo YTD 106 Target Date 2000-2010 (8) (23) (87) (153) 1 0.00 1 0.01 1.40 3.81 107 Trading-Leveraged Debt (128) (68) (298) (1,776) 0 0.00 2 0.02 108 Commodities Industrial Metals 71 59 51 (24) 0 0.00 0 0.00 109 Target Date 2051+ 10 26 75 149 0 0.00 0 0.00 2.47 15.97 110 Commodities Miscellaneous 0 0 0 (1) 0 0.00 0 0.00 (1.16) 0.25 Top 10 13,976 28,472 75,356 246,844 8,834 59.47 8,052 58.77 All 20,780 58,451 209,016 445,823 14,854 100.00 13,700 100.00 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 05-2015 Mkt Sh % 05-2014 Mkt Sh % 1 Vanguard 15,968 38,396 121,290 258,486 2,889 19.45 2,448 17.87 2 Fidelity Investments 727 2,589 11,519 9,707 1,319 8.88 1,197 8.74 3 American Funds 916 3,382 9,101 8,392 1,230 8.28 1,150 8.39 4 ishares 1,203 10,775 35,227 95,180 819 5.51 701 5.12 5 T. Rowe Price 662 2,273 5,761 6,977 488 3.28 441 3.22 6 Franklin Templeton Investments (579) (1,573) (3,217) (5,116) 452 3.04 453 3.31 7 SPDR State Street Global Advisors 2,578 (12,084) (40,929) 12,834 422 2.84 386 2.82 8 PIMCO (4,795) (12,300) (47,450) (175,656) 352 2.37 530 3.87 9 JPMorgan 906 586 6,711 21,363 278 1.87 245 1.79 10 Dimensional Fund Advisors 633 1,104 9,774 25,593 274 1.84 240 1.75 11 BlackRock 553 2,957 10,019 21,835 239 1.61 210 1.54 12 OppenheimerFunds (1,379) (1,977) (3,914) (7,151) 200 1.34 205 1.49 13 Dodge & Cox 326 838 7,228 27,529 199 1.34 165 1.20 14 MFS (43) 1,685 3,392 8,544 183 1.23 165 1.21 15 Columbia (1,617) (2,816) (5,701) (11,974) 161 1.09 165 1.20 16 Invesco (500) (700) (569) (1,572) 153 1.03 147 1.07 17 Jackson National 889 2,365 4,607 10,556 129 0.87 111 0.81 18 John Hancock 261 1,767 2,794 6,699 124 0.84 112 0.82 19 Principal Funds 336 987 2,408 3,850 118 0.79 107 0.78 20 Wells Fargo Advantage (252) (2,000) (3,371) (2,965) 114 0.77 113 0.82 21 Janus (92) 198 1,240 1,560 111 0.75 101 0.73 22 Lord Abbett (337) (295) (941) (2,229) 108 0.73 107 0.78 23 American Century Investments 175 252 190 (2,076) 104 0.70 99 0.72 24 AXA Equitable (172) (521) (1,322) (3,384) 104 0.70 98 0.72 25 Goldman Sachs (69) (1,064) (1,385) 2,907 102 0.69 98 0.71 2015 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: 2015-06-16 Page 5 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 05-31-2015 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 05-2015 Mkt Sh % 05-2014 Mkt Sh % 26 Hartford Mutual Funds (200) (319) (800) (3,788) 96 0.65 94 0.69 27 Legg Mason (54) 553 4,165 10,635 96 0.64 80 0.58 28 PowerShares (2,391) (1,530) (1,815) (7,916) 91 0.62 89 0.65 29 Voya (838) (1,785) (3,284) (7,644) 91 0.61 92 0.67 30 SEI 1,538 2,239 3,375 4,965 89 0.60 81 0.59 31 TIAA-CREF Mutual Funds 455 923 3,222 7,232 88 0.60 76 0.55 32 Harbor (1,052) (1,157) (2,334) (5,099) 86 0.58 88 0.64 33 Oakmark 165 91 (147) 1,473 85 0.57 82 0.60 34 Prudential Investments 221 649 3,351 6,375 80 0.54 69 0.51 35 GMO 24 (105) (1,152) (1,014) 78 0.52 80 0.58 36 Putnam (227) (629) (198) 2,016 78 0.52 72 0.53 37 First Eagle (113) (245) (1,150) (604) 76 0.51 75 0.55 38 Metropolitan West Funds 803 2,830 15,138 37,454 75 0.51 37 0.27 39 MainStay (853) (1,962) (4,917) (15,333) 72 0.49 85 0.62 40 Eaton Vance (328) (558) (1,813) (8,248) 72 0.48 78 0.57 41 Federated 160 14 1,290 4,060 66 0.45 60 0.44 42 Ivy Funds (308) (991) (3,300) (10,439) 66 0.44 76 0.55 43 Natixis Funds 129 608 4,063 8,903 64 0.43 54 0.39 44 Dreyfus 94 (274) (519) (2,512) 63 0.43 63 0.46 45 WisdomTree 1,698 5,491 19,035 24,808 63 0.42 34 0.25 46 AllianceBernstein 140 317 713 2,559 62 0.42 59 0.43 47 Nuveen (405) (270) 616 4,003 62 0.42 56 0.41 48 Schwab Funds (168) 71 1,268 3,354 59 0.40 51 0.37 49 USAA 27 217 1,084 2,406 58 0.39 54 0.39 50 Artisan (2,809) (3,021) (4,294) (6,866) 56 0.38 62 0.45 Top 10 18,219 33,148 107,786 257,761 8,523 57.38 7,791 56.87 Top 50 12,004 35,983 154,059 360,668 12,546 84.46 11,542 84.25 Other 8,776 22,489 55,119 85,485 2,308 15.54 2,154 15.72 All 20,780 58,472 209,178 446,153 14,854 100.00 13,696 99.97 2015 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: 2015-06-16 Page 6 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 05-31-2015 Asset Classes Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 05-2015 Mkt Sh % 05-2014 Mkt Sh % US Equity (11,854) (38,299) (55,828) 4,620 6,302 42.43 5,704 41.63 Sector Equity 550 73 16,868 58,704 787 5.30 676 4.93 International Equity 24,205 72,724 139,356 208,565 2,561 17.24 2,336 17.05 Allocation 1,566 2,819 12,775 33,748 1,255 8.45 1,179 8.61 Taxable Bond 5,909 19,752 74,621 92,852 3,058 20.59 2,951 21.54 Municipal Bond (321) 648 11,191 33,443 592 3.99 549 4.01 Alternative 2,283 3,004 8,130 11,839 211 1.42 200 1.46 Commodities (1,557) (2,268) 1,904 2,051 88 0.59 106 0.77 All Long Term 20,780 58,451 209,016 445,823 14,854 100.00 13,700 100.00 Morningstar Ratings Name Estimated Net Flow ($mil) Total Net Assets ($bil) 1-Mo QTD YTD 1-Yr 05-2015 Mkt Sh % 05-2014 Mkt Sh % QQQQQ 9,377 39,673 130,990 271,599 2,057 13.85 1,656 12.09 QQQQ 5,001 7,857 47,007 195,095 6,267 42.19 5,646 41.22 QQQ (2,506) (5,067) (8,336) (12,983) 4,555 30.67 4,361 31.84 QQ (6,461) (18,384) (42,981) (92,169) 1,183 7.96 1,247 9.10 Q (2,847) (4,725) (5,617) (17,699) 207 1.39 235 1.71 Not Rated 18,215 39,097 87,953 101,980 586 3.95 554 4.05 Total 20,780 58,451 209,016 445,823 14,854 100.00 13,700 100.00 2015 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