August 2014 Data through July 31 Morningstar Direct SM U.S. Open-End Asset Flows Update U.S. Open-End Funds Continue to Shift From U.S. Equity to Taxable Bonds by Alina Tarlea, Sr. Markets Research Analyst July 2014 was the third-consecutive month during which investors withdrew money from U.S. equity funds. Furthermore, the outflows have grown larger as the months went by: $11.4 billion in July, compared with $8.3 billion in June and $6.9 billion in May. Overall, flows into all long-term categories remained positive at $14.4 billion, although inflows are noticeably smaller than in previous months. Because of lower valuations overseas, international-equity funds attracted $6.2 billion in July and the highest flows on a year-to-date basis. As interest rates declined so far this year, taxable-bond funds continued to receive strong inflows. For the past three months, not only have outflows from U.S. equity funds and flows into taxable-bond funds increased but the taxable-bond U.S. category group also received the largest inflows out of all categories analyzed. On a broad category group level, investors are accumulating large sums into taxable-bond funds an asset class with low potential future returns. Estimated Net Flows $Mil* July 2014 YTD 1 Year Assets $Bil 1 Yr Organic Growth Rate % U.S. Equity (11,425) (3,798) 17,878 4,789 0.4 Sector Equity 530 15,945 22,991 405 7.0 International Equity 6,250 73,892 132,367 1,913 8.4 Allocation 3,074 30,825 48,719 1,141 5.0 Taxable Bond 11,416 69,921 27,604 2,649 1.1 Municipal Bond 1,421 12,791 (24,859) 539 (4.6) Alternative 2,226 16,853 33,409 157 27.5 Commodities 906 (1,395) (10,046) 40 (20.6) All Long Term 14,397 215,035 248,062 11,632 2.4 Money Market (22,792) (172,119) (59,603) 2,340 (2.3) *Includes liquidated and merged funds. Source: Morningstar Direct Asset Flows Note: The figures in this report were compiled on Aug. 12, 2014, 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. 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. 2014 Morningstar, Inc. All rights reserved.
Intermediate- and Short-Term Bonds Receive Strongest Bond Inflows The shift away from risky assets was apparent within fixed-income categories. Intermediate-bond funds had the highest inflows in July, although on a trailing one-year basis their total flows still remained negative. Short-term bond funds were the third-leading category, and non-traditional-bond funds came in fifth. On the lagging side, high-yield bond and bank-loan funds suffered more outflows as investors shied away from risky credit-sensitive fixed-income because of rising credit spreads. On the equity side, U.S. large-cap flows were a bit of a dichotomy. Large blend was among the leading categories and large value and growth were among the lagging categories. Investors appeared to be selling their active U.S. equity funds to reduce risk, and any new purchases went to broad indexed funds. You can see this relationship in the top-flowing funds table, which shows Vanguard s broad U.S. equity funds at the top of the list. Non-traditional-bond funds had a 40.5% organic growth rate over the past year. Other categories with strong one-year growth rates not displayed in the table include commodities-precious metals and trading-inverse equity (with organic growth rates of 469% and 155%, respectively). Top- and Bottom-Flowing Categories in July Excludes money markets and funds of funds. 1 Yr Assets Estimated Net Flow July Organic YTD 1 Year $Mil 2014 Growth $Bil Rate % Leading Intermediate-Term Bond 6,650 14,844 (36,788) 959 (3.8) Foreign Large Blend 3,823 40,474 63,741 727 10.9 Short-Term Bond 2,817 10,970 18,734 279 7.3 Large Blend 2,619 22,443 37,077 1,586 2.7 Nontraditional Bond 2,514 23,227 43,196 153 40.5 Lagging Bank Loan (1,916) (175) 22,764 138 20.3 Mid-Cap Growth (2,003) (5,497) (5,956) 286 (2.3) Large Value (2,632) 2,777 11,493 840 1.6 Large Growth (7,512) (25,744) (41,420) 1,175 (4.0) High Yield Bond (7,846) (697) 5,617 289 2.1 2014 Morningstar, Inc. All rights reserved.
Top- and Bottom-Flowing Mutual Funds in July Excludes money markets and funds of funds. Estimated Net Flow $Mil 1 Yr Assets July Organic YTD 1 Year 2014 Growth $Bil Rate % Top-Flowing Funds Vanguard Total Stock Market Index Fund 2,636 17,844 25,781 299 0.9 Vanguard Institutional Index Fund 2,213 3,366 7,593 175 1.3 Vanguard Total Intl Stock Idx Fund 1,812 10,792 16,091 127 1.4 PIMCO Long Term U.S. Government Fund 1,457 1,494 537 2 161.4 Vanguard Total Bond Market II Index Fund 1,455 7,784 16,010 83 1.8 Bottom-Flowing Funds Fidelity Growth Company Fund (1,858) (7,130) (11,911) 40 (24.1) Fidelity Contrafund Fund (1,676) (7,844) (9,025) 106 (9.2) PIMCO High Yield (1,232) (4,462) (7,190) 12 (40.1) BlackRock High Yield Bond Portfolio (1,187) 219 1,891 14 17.2 Vanguard Five Hundred Index Fund (1,160) 591 (3,399) 157 (2.5) Source: Morningstar Direct Asset Flows The largest index funds from Vanguard continued to attract strong investor flows. Even though U.S. equity funds had outflows this month, the two largest U.S. equity index funds received the highest July flows. It seems that investors still like U.S. equity funds, as long as they come with low fees and are passively managed. As high-yield bond was the category with the largest outflows, it was not surprising to see PIMCO High Yield and BlackRock High Yield Bond among the bottom-flowing funds. PIMCO High Yield had a negative 40.1% one-year organic growth rate, while PIMCO Long Term U.S. Government quadrupled in size in the past month because of a very large inflow. 2014 Morningstar, Inc. All rights reserved.
Estimated Net Flow $Mil Leading Top-10 U.S. Mutual Fund Families Ranked by assets, excluding money markets and funds of funds. July 2014 YTD 1 Year Assets $Bil 1 Yr Organic Growth Rate % Vanguard 12,262 77,049 102,135 2,102 5.8 Fidelity Investments (6,238) (9,743) (12,684) 1,196 (1.2) American Funds (740) (158) (9,557) 1,144 (0.9) PIMCO (870) (33,173) (72,726) 502 (13.1) Franklin Templeton Investments (165) 3,284 2,311 452 0.6 T. Rowe Price 226 10,852 12,754 444 3.4 JPMorgan 2,752 17,499 23,365 243 11.5 Dimensional Fund Advisors 2,296 16,771 25,932 243 13.5 OppenheimerFunds (401) 5,253 9,795 205 5.5 BlackRock (588) 7,278 13,394 204 7.7 Source: Morningstar Direct Asset Flows Fidelity had the highest outflows this past month because two of its flagship active U.S. equity funds had very large outflows. As usual, Vanguard, with four top-flowing funds and one bottom-flowing, received the highest inflows. Investors withdrew money from PIMCO for the 14 th month in a row, although July outflows were the smallest out of those 14 months. PIMCO flagship Total Return fund suffered an $830 million outflow this month, which is an improvement from the negative $4.4 billion average of the past 12 months. 2014 Morningstar, Inc. All rights reserved.
2014 Morningstar, Inc. All rights reserved. Flows Shift From High-Credit-Risk to Traditional Fixed-Income Categories Over the past year, flows into intermediate-term bond funds changed from negative to positive, while the opposite happened with flows into bank-loan and high-yield-bond funds. For investors, risk aversion is becoming more dominant than the search for returns.
Morningstar Direct SM Publishing Date: 2014-08-12 Page 1 of 6 Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo QTD YTD 1-Yr 07-2014 Mkt Sh % 07-2013 Mkt Sh % 1-Mo YTD 1 Large Blend 2,619 2,619 22,443 37,077 1,586 13.71 1,367 13.26 (1.71) 4.57 2 Large Growth (7,512) (7,512) (25,744) (41,420) 1,175 10.16 1,026 9.95 (1.53) 3.08 3 Intermediate-Term Bond 6,650 6,650 14,844 (36,788) 959 8.29 965 9.36 (0.28) 3.81 4 Large Value (2,652) (2,652) 2,756 11,472 839 7.25 736 7.14 (1.83) 4.99 5 Foreign Large Blend 3,839 3,839 40,490 63,757 715 6.18 585 5.67 (2.41) 1.29 6 Moderate Allocation 588 588 8,282 13,438 487 4.21 424 4.11 (1.45) 3.89 7 World Stock (628) (628) 6,772 14,621 389 3.36 331 3.21 (2.35) 3.25 8 World Allocation (315) (315) 7,346 15,329 319 2.76 275 2.66 (1.49) 3.78 9 Diversified Emerging Mkts 1,748 1,748 10,532 20,835 309 2.67 254 2.46 0.43 6.33 10 High Yield Bond (7,933) (7,933) (784) 5,531 289 2.49 267 2.59 (1.24) 3.53 11 Short-Term Bond 2,816 2,816 10,970 18,734 279 2.41 256 2.49 (0.17) 1.09 12 Mid-Cap Growth (1,925) (1,925) (5,419) (5,878) 277 2.39 260 2.53 (3.46) 0.37 13 Mid-Cap Blend 1,606 1,606 7,963 13,652 228 1.97 188 1.82 (3.54) 2.71 14 Conservative Allocation 1,958 1,958 11,306 15,313 210 1.81 177 1.72 (1.10) 3.73 15 World Bond 2,396 2,396 8,494 6,885 197 1.70 181 1.76 (0.54) 4.36 16 Mid-Cap Value (648) (648) (691) 1,890 195 1.68 180 1.74 (3.27) 4.25 17 Small Blend (844) (844) (235) 4,283 192 1.66 175 1.70 (5.46) (1.88) 18 Multisector Bond 183 183 11,324 7,999 180 1.55 161 1.56 (0.52) 4.39 19 Small Growth (1,780) (1,780) (5,550) (3,895) 172 1.48 165 1.60 (5.71) (4.89) 20 Foreign Large Value 1,344 1,344 10,519 17,116 159 1.37 124 1.21 (2.47) 2.38 21 Foreign Large Growth (582) (582) (86) 3,301 157 1.36 157 1.52 (2.69) 0.39 22 Nontraditional Bond 2,514 2,514 23,227 43,196 153 1.32 107 1.03 (0.08) 2.31 23 Bank Loan (1,916) (1,916) (175) 22,764 138 1.19 112 1.09 (0.12) 1.85 24 Muni National Interm 1,407 1,407 7,740 (1,272) 128 1.10 124 1.20 0.16 4.70 25 Muni National Short 1,103 1,103 4,281 4,788 106 0.92 100 0.97 0.04 1.28 26 Small Value (37) (37) 929 947 100 0.87 91 0.88 (5.19) (0.71) 27 Intermediate Government (279) (279) (5,143) (19,337) 95 0.82 111 1.08 (0.34) 2.91 28 Health 38 38 2,000 4,847 89 0.77 68 0.66 (1.10) 10.20 29 Real Estate 246 246 4,092 3,382 89 0.77 77 0.74 (0.12) 16.43 30 Muni National Long (117) (117) (2,450) (11,353) 87 0.75 93 0.90 0.14 7.03 31 Inflation-Protected Bond 873 873 (2,170) (18,430) 81 0.70 97 0.94 (0.08) 4.84 32 Emerging Markets Bond 2,157 2,157 605 (6,116) 75 0.64 77 0.75 (0.44) 6.11 33 Corporate Bond 370 370 998 (3,488) 67 0.58 66 0.64 (0.25) 6.02 34 Ultrashort Bond 1,355 1,355 3,852 9,141 66 0.57 56 0.54 0.02 0.46 35 High Yield Muni (569) (569) 5,045 (1,066) 65 0.57 62 0.60 0.15 9.20
Morningstar Direct SM Publishing Date: 2014-08-12 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 QTD YTD 1-Yr 07-2014 Mkt Sh % 07-2013 Mkt Sh % 1-Mo YTD 36 Long/Short Equity 417 417 9,886 21,218 59 0.51 36 0.35 (1.19) 1.81 37 Aggressive Allocation 22 22 78 (2) 56 0.48 49 0.48 (1.89) 3.75 38 Commodities Broad Basket 884 884 (1,452) (10,105) 39 0.34 49 0.47 (4.38) 1.68 39 Technology (78) (78) 307 1,586 39 0.34 31 0.30 (1.74) 5.32 40 Global Real Estate (130) (130) 760 1,499 38 0.33 33 0.32 0.38 10.89 41 Muni California Long (41) (41) (94) (2,959) 36 0.31 36 0.35 0.25 8.08 42 Natural Resources (73) (73) (43) (514) 36 0.31 31 0.30 (3.50) 7.43 43 Foreign Small/Mid Growth (42) (42) 1,970 4,445 35 0.30 28 0.27 (2.80) 1.37 44 Multialternative 500 500 4,873 9,661 34 0.30 24 0.23 (0.72) 1.04 45 Short Government (28) (28) (317) (3,291) 33 0.28 36 0.35 (0.17) 0.58 46 Tactical Allocation 830 830 1,550 1,049 32 0.28 30 0.29 (1.55) 3.22 47 Market Neutral 886 886 2,461 3,527 32 0.27 28 0.27 (0.16) 0.55 48 Equity Energy (60) (60) 1,089 262 27 0.23 22 0.22 (5.00) 10.45 49 Energy Limited Partnership 1,128 1,128 7,534 11,084 26 0.22 12 0.12 (3.20) 13.53 50 Muni New York Long (197) (197) (776) (3,268) 25 0.22 27 0.26 0.19 7.05 51 Utilities 216 216 1,462 1,411 25 0.21 21 0.21 (5.44) 10.07 52 Pacific/Asia ex-japan Stk 150 150 (1,454) (1,405) 22 0.19 21 0.20 1.75 9.42 53 Europe Stock (106) (106) 2,877 6,544 22 0.19 13 0.13 (4.35) (1.20) 54 Muni Single State Long (74) (74) (808) (3,745) 21 0.18 24 0.23 0.00 6.73 55 Foreign Small/Mid Value 180 180 992 1,511 21 0.18 16 0.16 (3.05) 2.92 56 Long-Term Bond 453 453 1,277 422 20 0.17 18 0.17 0.03 6.69 57 Foreign Small/Mid Blend 157 157 2,364 3,769 19 0.17 14 0.13 (2.88) 2.52 58 Convertibles 38 38 2,131 3,825 19 0.16 13 0.13 (1.91) 5.02 59 Equity Precious Metals 39 39 242 (167) 14 0.12 13 0.13 (2.32) 24.43 60 Muni California Intermediate 160 160 1,041 769 13 0.11 12 0.12 0.17 4.52 61 Muni Single State Interm (46) (46) (305) (1,526) 13 0.11 14 0.13 0.14 4.55 62 Managed Futures 193 193 1,282 2,313 12 0.11 10 0.10 (0.44) (1.04) 63 Preferred Stock 158 158 1,061 (282) 11 0.10 11 0.10 (0.19) 9.37 64 Muni Single State Short (94) (94) (153) (1,144) 11 0.10 12 0.12 (0.17) 2.12 65 Diversified Pacific/Asia (21) (21) (790) (718) 11 0.09 10 0.10 1.19 4.82 66 Multicurrency 87 87 (796) (1,535) 10 0.09 12 0.11 (0.43) 0.89 67 Muni Pennsylvania (44) (44) (281) (1,154) 9 0.08 10 0.09 0.17 6.58 68 Financial (147) (147) (458) 3 8 0.07 7 0.07 (2.14) 0.87 69 Long Government 1,560 1,560 1,769 579 8 0.07 7 0.07 0.51 13.16 70 Muni New Jersey (35) (35) (196) (824) 7 0.06 7 0.07 0.03 6.85
Morningstar Direct SM Publishing Date: 2014-08-12 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 QTD YTD 1-Yr 07-2014 Mkt Sh % 07-2013 Mkt Sh % 1-Mo YTD 71 Muni Massachusetts (23) (23) (40) (685) 6 0.06 7 0.07 0.13 6.20 72 Bear Market 218 218 (474) (1,440) 6 0.05 9 0.09 1.51 (8.53) 73 China Region (20) (20) (1,071) (1,271) 6 0.05 6 0.06 3.52 2.86 74 Miscellaneous Region (29) (29) (197) (562) 5 0.04 5 0.05 (1.87) 1.82 75 Muni Ohio (12) (12) (154) (714) 5 0.04 5 0.05 (0.01) 5.76 76 Industrials (400) (400) (75) 626 5 0.04 3 0.03 (4.61) 1.13 77 Communications (37) (37) (172) (142) 4 0.04 4 0.04 (1.05) 1.58 78 Muni Minnesota 0 0 (52) (435) 4 0.04 4 0.04 0.20 5.88 79 Japan Stock 84 84 1,007 1,038 4 0.04 3 0.03 (0.44) 2.76 80 Consumer Cyclical (259) (259) (843) (735) 4 0.03 4 0.04 (2.87) (1.66) 81 Muni New York Intermediate 4 4 (8) (272) 3 0.03 3 0.03 0.15 4.19 82 Latin America Stock (22) (22) (290) (732) 3 0.03 4 0.04 0.08 6.92 83 Target Date 2026-2030 (1) (1) 80 144 3 0.03 3 0.03 (1.54) 3.74 84 Target Date 2016-2020 (20) (20) (20) (22) 3 0.03 3 0.03 (1.25) 3.63 85 Trading-Leveraged Equity (100) (100) (395) 145 3 0.03 2 0.02 (2.08) 5.62 86 Consumer Defensive 33 33 (56) (304) 3 0.02 3 0.03 (3.41) 1.08 87 Target Date 2021-2025 (7) (7) 29 (135) 3 0.02 3 0.02 (1.49) 3.71 88 Target Date 2036-2040 0 0 58 131 2 0.02 2 0.02 (1.74) 3.78 89 Target Date 2031-2035 (3) (3) 51 (57) 1 0.01 1 0.01 (1.78) 3.65 90 Target Date 2046-2050 2 2 64 126 1 0.01 1 0.01 (1.80) 3.86 91 India Equity 30 30 87 (50) 1 0.01 1 0.01 0.30 28.86 92 Target Date 2011-2015 (8) (8) (24) (124) 1 0.01 1 0.01 (1.14) 3.55 93 Retirement Income (9) (9) (85) (178) 1 0.01 1 0.01 (0.96) 3.27 94 Target Date 2041-2045 7 7 44 (23) 1 0.01 1 0.01 (1.90) 3.66 95 Target Date 2000-2010 (14) (14) (98) (150) 1 0.01 1 0.01 (1.05) 3.45 96 Trading-Inverse Debt (43) (43) (114) 15 1 0.00 1 0.01 0.47 (9.34) 97 Miscellaneous Sector 13 13 105 152 0 0.00 0 0.00 (3.39) (1.03) 98 Trading-Leveraged Debt 38 38 82 (571) 0 0.00 1 0.01 0.73 16.40 99 Target Date 2051+ 4 4 34 55 0 0.00 0 0.00 (1.91) 3.67 100 Commodities Precious Metals 22 22 57 58 0 0.00 0 0.00 (3.29) 5.64 101 Volatility 12 12 63 63 0 0.00 9.13 102 Trading-Miscellaneous 12 12 5 9 0 0.00 0 0.00 (0.08) (4.07) 103 Trading-Inverse Equity 2 2 13 18 0 0.00 0 0.00 (3.28) (12.97) 104 Trading-Inverse Commodities 1 1 (33) (12) 0 0.00 0 0.00 3.77 (6.61) 105 Trading-Leveraged Commodities 2 2 1 (1) 0 0.00 0 0.00 (6.01) 22.27 Top 10 (3,596) (3,596) 86,938 103,852 7,068 61.09 6,228 60.41 All 14,393 14,393 215,031 248,059 11,571 100.00 10,310 100.00
Morningstar Direct SM Publishing Date: 2014-08-12 Page 4 of 6 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 07-2014 Mkt Sh % 07-2013 Mkt Sh % 1 Vanguard 12,262 12,262 77,049 102,135 2,102 18.17 1,775 17.22 2 Fidelity Investments (6,238) (6,238) (9,743) (12,684) 1,196 10.33 1,070 10.38 3 American Funds (740) (740) (158) (9,557) 1,144 9.89 1,016 9.85 4 PIMCO (870) (870) (33,173) (72,726) 502 4.34 554 5.37 5 Franklin Templeton Investments (165) (165) 3,284 2,311 452 3.91 411 3.99 6 T. Rowe Price 226 226 10,852 12,754 444 3.84 378 3.67 7 JPMorgan 2,752 2,752 17,499 23,365 243 2.10 204 1.97 8 Dimensional Fund Advisors 2,296 2,296 16,771 25,932 243 2.10 192 1.86 9 OppenheimerFunds (401) (401) 5,253 9,795 205 1.77 179 1.73 10 BlackRock (588) (588) 7,278 13,394 204 1.76 175 1.70 11 Dodge & Cox 1,052 1,052 8,759 7,427 169 1.46 138 1.34 12 MFS 984 984 9,547 14,395 167 1.44 137 1.33 13 Columbia (157) (157) (4,915) (10,132) 163 1.41 159 1.55 14 Invesco (90) (90) (390) (1,463) 147 1.27 133 1.29 15 John Hancock 598 598 7,250 10,040 114 0.98 94 0.91 16 Principal Funds 437 437 3,716 3,927 108 0.94 94 0.91 17 Lord Abbett (108) (108) 1,300 1,038 107 0.93 101 0.98 18 Wells Fargo Advantage (479) (479) (1,018) (1,721) 102 0.88 96 0.93 19 Goldman Sachs 1,126 1,126 13,405 21,195 100 0.87 73 0.71 20 Janus (662) (662) (4,657) (9,458) 100 0.86 97 0.94 21 American Century Investments (118) (118) (2,419) (5,807) 98 0.85 94 0.92 22 Hartford Mutual Funds (557) (557) (3,634) (6,448) 95 0.82 91 0.88 23 Voya (706) (706) (3,791) (6,130) 91 0.79 87 0.85 24 Harbor 117 117 901 387 87 0.75 77 0.74 25 MainStay (1,112) (1,112) 2,564 10,010 84 0.72 67 0.65 26 Oakmark 648 648 7,886 15,149 82 0.71 59 0.57 27 Legg Mason 551 551 2,792 1,824 82 0.70 72 0.70 28 SEI 493 493 2,422 1,803 81 0.70 72 0.70 29 GMO 562 562 2,098 (877) 77 0.66 70 0.68 30 First Eagle 306 306 2,487 4,595 76 0.66 65 0.63 31 Eaton Vance (971) (971) (4,255) (4,564) 76 0.66 76 0.73 32 TIAA-CREF Mutual Funds (9) (9) 3,919 6,280 76 0.66 62 0.60 33 Ivy Funds (957) (957) 3,134 7,091 75 0.65 61 0.59 34 Putnam 451 451 4,712 7,191 73 0.63 58 0.57 35 Prudential Investments 213 213 1,967 1,368 70 0.61 62 0.60
Morningstar Direct SM Publishing Date: 2014-08-12 Page 5 of 6 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 07-2014 Mkt Sh % 07-2013 Mkt Sh % 36 Dreyfus (107) (107) 478 (1,174) 63 0.54 59 0.57 37 Federated 402 402 1,517 50 60 0.52 56 0.54 38 Thornburg (751) (751) (4,774) (4,598) 59 0.51 60 0.58 39 AllianceBernstein 61 61 2,933 2,411 59 0.51 53 0.51 40 Nuveen 96 96 2,992 1,855 57 0.49 51 0.50 41 Natixis Funds 905 905 4,023 4,718 55 0.48 47 0.46 42 USAA 153 153 1,174 989 54 0.47 49 0.47 43 Northern Funds 71 71 1,150 2,166 51 0.44 46 0.44 44 DWS Investments (44) (44) (732) (3,099) 49 0.42 48 0.46 45 Delaware Investments 228 228 807 (320) 42 0.36 38 0.37 46 Neuberger Berman 85 85 1,571 2,435 41 0.36 36 0.35 47 Russell (18) (18) (195) (335) 41 0.36 38 0.37 48 AMG Funds (308) (308) (858) 1,438 41 0.35 36 0.35 49 DoubleLine 560 560 2,357 (4,447) 39 0.34 42 0.41 50 Metropolitan West Funds 695 695 4,815 6,424 38 0.33 31 0.30 Top 10 8,535 8,535 94,913 94,720 6,736 58.21 5,953 57.74 Top 50 12,174 12,174 165,948 170,352 9,988 86.32 8,837 85.71 Other 2,219 2,219 44,985 71,145 1,583 13.68 1,371 13.30 All 14,393 14,393 210,933 241,497 11,571 100.00 10,208 99.01 Asset Classes Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 07-2014 Mkt Sh % 07-2013 Mkt Sh % US Equity (11,174) (11,174) (3,547) 18,128 4,763 41.16 4,187 40.62 Sector Equity 530 530 15,945 22,991 405 3.50 329 3.19 International Equity 6,082 6,082 73,724 132,199 1,878 16.23 1,571 15.24 Allocation 3,074 3,074 30,825 48,719 1,141 9.86 984 9.54 Taxable Bond 11,329 11,329 69,835 27,518 2,648 22.89 2,527 24.51 Municipal Bond 1,421 1,421 12,791 (24,859) 539 4.66 541 5.24 Alternative 2,226 2,226 16,853 33,409 157 1.36 122 1.18 Commodities 906 906 (1,395) (10,046) 40 0.34 49 0.47 All Long Term 14,393 14,393 215,031 248,059 11,571 100.00 10,310 100.00
Morningstar Direct SM Publishing Date: 2014-08-12 Page 6 of 6 Morningstar Ratings Name Estimated Net Flow ($mil) Total Net Assets ($bil) 1-Mo QTD YTD 1-Yr 07-2014 Mkt Sh % 07-2013 Mkt Sh % QQQQQ 26,981 26,981 134,285 184,708 1,790 15.47 1,448 14.04 QQQQ 1,494 1,494 88,787 100,907 4,991 43.13 4,433 43.00 QQQ (12,527) (12,527) (31,752) (70,085) 3,350 28.95 3,078 29.86 QQ (7,805) (7,805) (42,053) (82,664) 902 7.79 911 8.84 Q (1,690) (1,690) (6,936) (14,063) 145 1.25 149 1.45 Not Rated 7,941 7,941 72,701 129,255 394 3.40 290 2.82 Total 14,393 14,393 215,031 248,059 11,571 100.00 10,310 100.00