Sept 2014 Data through Aug 31 U.S. Mutual Funds and Exchange- Traded Products Also inside: Extended tables 7 Morningstar Direct SM U.S. Asset Flows Update So Much for the Great Rotation by Michael Rawson, CFA Long-term mutual funds and exchange-traded funds attracted $32.6 billion in new investor cash in August, driven by strong flows to international-stock funds and resurgent demand for fixed income. Funds focused on U.S. equity suffered a $4.1 billion outflow, dragged down by active U.S. equity funds, which suffered their sixth-straight month of outflows. Assets in long-term mutual funds and ETFs hit $13.9 trillion. While the majority of those assets are invested in actively managed funds, the stronger flows to passive investments is reflected in their 11% organic growth rate compared with just 2% growth for active funds during the past year. Note that this report includes both mutual funds and ETFs, 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. Active Passive Estimated Net Flows Aug 1 Year Assets Aug 1 Year Assets $Mil* 2014 $Bil 2014 $Bil U.S. Equity (9,435) (55,313) 3,656 5,321 131,060 2,129 Sector Equity (147) 17,689 383 4,272 43,146 327 International Equity 5,524 95,745 1,616 8,966 105,511 747 Allocation 2,828 47,326 1,127 47 3,026 47 Taxable Bond (1,046) 9,970 2,339 9,603 63,072 604 Municipal Bond 3,205 (10,677) 546 349 2,271 16 Alternative 2,522 32,132 160 (29) 3,659 46 Commodities 679 (10,097) 38 (99) (6,741) 67 All Long Term 4,178 126,365 9,866 28,429 345,004 3,984 Money Market 36,322 (44,103) 2,401 *Includes liquidated and merged funds. Source: Morningstar Direct Asset Flows. 2014 Morningstar, Inc. All rights reserved. Note: The figures in this report were compiled on Sept. 11, 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. Schwab/Laudus mutual funds are not included. Important methodology note: Morningstar computes flows using the approach that is standard in the industry: Estimated net flow is the change in assets that fund performance does not explain. 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.
At the start of 2013, prognosticators proclaimed the start of a great rotation out of bonds and into equities. That thesis began to play out in earnest in June of last year, when the Fed hinted at reduced monetary stimulus. Given the sharp rise in interest rates and the record outflows from bond funds during that month, no one could have forecast how fast that rotation would fizzle out. Year to date, taxable-bond funds have attracted $99 billion as interest rates have fallen. U.S. equity funds have had inflows of just $3.5 billion year to date. Taxable-bond fund flows have exceeded U.S. equity fund flows every month this year. The bright spots for equities have been international and sector funds, which have brought in $119 billion and $39 billion, respectively. Strategic-Beta Funds Garnering Strong Flows Version 3.16 of Morningstar Direct introduced a series of strategic-beta data points. Strategic-beta funds are index funds that seek to enhance return or reduce risk relative to a traditional market-cap-weighted index. Strategic-beta ETFs have enjoyed slightly faster organic growth during the past year than other ETFs. Flows, Assets, and Growth of Strategic-Beta ETFs 1 Year Flows $ Bil Assets $ Bil Organic Growth Rate Strategic-Beta ETFs 44 371 16% Other ETFs 157 1,542 13% Source: Morningstar Direct Asset Flows. 2014 Morningstar, Inc. All rights reserved.
After Strong Outflows, Active Investors Head Back to Intermediate-Term Bond Funds Flows to intermediate-term bond funds have rebounded sharply during the past six months. Excluding PIMCO Total Return Bond PTTRX, which has a Morningstar Analyst Rating of Gold, active intermediate-term bond funds have had a sharp rebound in flows. Other active intermediate-term bond funds that are likely taking market share from PIMCO include Gold-rated Metropolitan West Total Return Bond MWTIX. That fund's return ranks in the top-fifth percentile during the past three years. Year to date, the fund has accumulated $5.7 billion, a significant inflow for the $32 billion fund. Silver-rated T. Rowe Price New Income PANIX, Gold-rated Dodge & Cox Income DODIX, and Not Rateable DoubleLine Total Return Bond DBLTX have had year-to-date inflows of $3.6 billion, $3.5 billion, and $2.0 billion, respectively. Foreign large blend and diversified emerging markets led all categories in terms of flows. Both active and passive diversified emerging market funds have had inflows for the past six months. High-yield bond funds had their highest consecutive two months of outflows on record in July and August, as credit spreads widened back to where they were at the start of the year. Weak European GDP numbers likely weighed on the Europe-stock category last month. Still, the category has accumulated $25 billion of inflows during the past year, ranking fifth among all categories. Top- and Bottom-Flowing Categories in August Excludes money markets and funds of funds Estimated Net Flow $Mil Active Passive Aug 2014 1 Year Assets Leading $Bil Aug 2014 1 Year Assets $Bil Foreign Large Blend 1,929 37,110 531 4,013 50,561 318 Diversified Emerging Mkts 2,576 17,590 251 2,304 7,384 188 Long Government 1,596 1,987 8 2,352 5,047 15 Large Blend (175) (3,602) 690 3,030 83,787 1,351 Intermediate-Term Bond 1,215 (38,934) 740 1,626 28,970 288 Lagging High-Yield Bond (5,281) 3,640 288 432 2,731 34 Bank Loan (3,814) 11,591 135 (83) 1,738 7 Europe Stock (385) 4,895 15 (2,260) 19,450 45 Mid-Cap Growth (2,340) (8,033) 294 161 1,449 19 Utilities (52) 722 23 (1,728) 718 12 Source: Morningstar Direct Asset Flows. 2014 Morningstar, Inc. All rights reserved.
Flows by Fund and Fund Family Among active fund providers, J.P. Morgan has drawn the strongest flows during the past year, followed by Goldman Sachs and Oakmark. Silver-rated JPMorgan Value Advantage JVAIX saw inflows of $334 million last month. The fund s return ranks in the top-two percentile during the past five years in the large-value category and has seen assets more than double in the past year to $8.4 billion. J.P. Morgan began its push into ETFs this past June, launching a strategic-beta fund in the world-stock category. Oakmark s fund assets have grown to $85 billion from $35 billion three years ago, allowing its market share to reach 0.61% from 0.41% in that span. Gold-rated Oakmark OAKMX brought in $1.0 billion in August. Vanguard continues to dominate flows through the strength of its passive lineup of mutual funds and ETFs. In a difficult environment for active funds, Vanguard s $7 billion inflow during the past year is admirable, ranking 14th among active fund providers. As we have noted in the past, a major source of Fidelity s outflows during the past year has been conversions to collective investment trusts. However, it is surprising that these outflows are not being offset by organic inflows. Top 10 U.S. Fund Families Ranked by assets, excluding money markets and funds of funds Active Passive Estimated Net Flows $Mil* Aug 2014 1 Year Assets $Bil Aug 2014 1 Year Assets $Bil Vanguard 395 7,019 743 14,151 164,135 1,830 Fidelity Investments (594) (18,608) 1,071 1,456 8,779 170 American Funds (219) (7,884) 1,175 Blackrock / ishares 922 14,102 204 10,029 62,678 739 PIMCO (2,060) (64,698) 513 (94) 1,502 6 Franklin Templeton (215) 3,533 461 T. Rowe Price (285) 12,508 431 33 1,447 26 SPDR State Street Global Advisors 11 166 1 (2,212) 18,279 406 J.P. Morgan 2,051 23,649 248 16 (83) 10 Dimensional Fund Advisors 1,982 26,250 251 Source: Morningstar Direct Asset Flows. Among individual funds with notable flows, Silver-rated MFS International Value MGIAX attracted $414 million last month and $5.7 billion during the past year. Silver-rated T. Rowe Price New Income PRCIX brought in $257 million last month and $4.7 billion during the past year. In a sign that investors are losing patience with defensive funds, Silver-rated AMG Yacktman Focused YAFFX and Gold-rated Sequoia SEQUX have suffered unusually large outflows. Both portfolios recently held a high allocation in cash. Bronze-rated MainStay Marketfield MFLDX suffered its worst monthly outflow ever as the long/short fund shed $920 million. Neutral-rated BlackRock Strategic Income Opportunities BSIIX gained $953 million in new cash, even as flows to other popular non-traditional-bond funds slowed. Gold-rated Dodge & Cox International Stock led all active funds in the international stock category group $770 million inflow. The fund ranks in the third percentile during the past three years in the foreign large-blend category. 2014 Morningstar, Inc. All rights reserved.
Top-Flowing Active and Passive Funds in August Excludes money markets and funds of funds Estimated Net Flow $Mil Aug 2014 1 Year Assets Aug 2014 $Mil Assets Aug 2013 $Mil Active Funds PIMCO Long-Term U.S. Government 1,546 2,097 4,006 1,718 Metropolitan West Total Return Bond 1,046 6,172 32,218 24,463 Oakmark 1,007 3,951 16,793 9,982 BlackRock Strategic Income Opportunities 953 11,283 19,718 7,779 Dodge & Cox International Stock 770 7,465 65,254 45,221 Passive Funds Vanguard Total Stock Market Index 3,365 32,288 361,205 262,667 Vanguard Total Intl Stock Index 2,102 18,932 133,405 96,379 ishares 7-10 Year Treasury Bond 1,471 3,500 7,749 4,065 Vanguard 500 Index 1,318 4,890 185,240 141,524 ishares Core S&P 500 1,257 7,483 61,310 43,448 Source: Morningstar Direct Asset Flows. Funds Making Up a Larger Share of Household Net Worth by Michael Rawson and Kelsey Tsai Thanks to strong market appreciation, mutual funds now account for a larger share of household net worth. Based on Federal Reserve data, households and nonprofit organizations hold $7.1 trillion in mutual funds, excluding money market funds. This represents 8.6% of household net worth. Pension entitlements ($19.8 trillion), corporate equity ($13.5), real estate equity ($10.8), noncorporate equity ($8.8), and bank deposits and currency ($8.7) still make up a greater share of household net worth than mutual funds. However, assets in mutual funds have grown faster than these other categories. Assets in bank deposits (time deposits and checking accounts) have also not kept pace with rising net worth, which real estate and equity market appreciation drove. 2014 Morningstar, Inc. All rights reserved. Source: Federal Reserve's Balance Sheet of Households and Nonprofit Organizations, B.100.
Despite the rise in mutual fund assets, assets in money market funds have stagnated. Yet, cash has accumulated in checking accounts. Given the low yields that money market funds offer, investors may prefer the convenience of keeping cash with their bank rather than in a money market account. Those low yields are a function of an abnormally low federal-funds rate, but also increased regulation that requires money market funds to hold shorter-term and higher-quality investments. Households may also be relying more on checking accounts than money market funds because they feel a stronger connection to and have greater trust in their local bank than a broker. The decline in money market fund assets is more pronounced when compared with the rise of total mutual fund assets, suggesting that investors are keeping a smaller share of trading assets in money market funds. Time deposits Checkable Deposits and Currency Money Market Funds Total Assets $ Bil 2014 Q1 7,552 1,097 1,091 2011 Q1 6,550 443 1,099 Share of Household Net Worth 2014 Q1 9.2% 1.3% 1.3% 2011 Q1 10.1% 0.7% 1.7% Source: Federal Reserve's Balance Sheet of Households and Nonprofit Organizations, B.100. 2014 Morningstar, Inc. All rights reserved.
Morningstar Direct SM Publishing Date: 2014-09-17 Page 1 of 6 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 08-31-2014 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 08-2014 Mkt Sh % 08-2013 Mkt Sh % 1-Mo YTD 1 Large Blend 2,861 12,698 28,894 80,191 2,040 14.73 1,610 13.88 7.56 17.21 2 Large Growth (1,716) (7,694) (27,763) (34,294) 1,332 9.62 1,088 9.38 9.21 17.68 3 Intermediate-Term Bond 2,841 11,189 24,356 (9,964) 1,028 7.43 988 8.52 1.94 9.17 4 Large Value 984 35 10,293 18,732 978 7.06 800 6.90 7.26 18.36 5 Foreign Large Blend 5,942 11,340 58,309 87,670 849 6.13 655 5.65 1.69 7.07 6 Moderate Allocation 532 1,150 8,990 12,760 501 3.62 417 3.59 5.17 13.83 7 Diversified Emerging Mkts 4,879 10,147 15,596 24,974 438 3.17 346 2.99 5.07 18.73 8 World Stock 1,961 1,546 9,293 17,806 417 3.01 334 2.88 4.57 14.30 9 World Allocation 740 516 8,308 14,708 326 2.35 273 2.35 3.30 12.85 10 High Yield Bond (4,849) (15,785) (6,529) 6,370 322 2.33 293 2.53 2.48 8.93 11 Short-Term Bond 2,183 5,362 15,368 23,332 322 2.32 293 2.52 0.51 2.46 12 Mid-Cap Growth (2,167) (4,112) (7,564) (6,572) 313 2.26 267 2.30 10.21 11.88 13 Mid-Cap Blend (951) 652 8,683 17,160 304 2.20 234 2.02 9.13 15.44 14 Small Blend (994) (3,106) (3,861) 1,713 256 1.85 219 1.88 9.14 5.10 15 Mid-Cap Value (456) (809) 1,867 3,691 248 1.79 200 1.73 8.73 19.76 16 Conservative Allocation 1,505 3,464 12,811 16,418 215 1.55 175 1.51 3.44 11.91 17 World Bond 1,036 3,590 10,970 10,732 207 1.49 183 1.58 1.36 10.01 18 Small Growth (1,475) (3,446) (7,928) (6,131) 193 1.39 175 1.51 9.41 (0.24) 19 Multisector Bond 865 1,023 12,189 11,088 182 1.32 157 1.35 2.02 5.31 20 Foreign Large Growth (1,189) (1,659) (1,062) 2,068 177 1.28 156 1.34 2.48 2.91 21 Foreign Large Value 1,284 3,139 14,557 21,923 176 1.27 133 1.14 0.54 9.05 22 Nontraditional Bond 1,449 3,997 24,940 39,755 155 1.12 111 0.96 0.16 1.89 23 Bank Loan (3,896) (5,947) (3,298) 13,329 142 1.03 125 1.08 0.53 4.08 24 Muni National Interm 1,326 2,818 9,432 3,105 135 0.97 123 1.06 1.98 11.10 25 Health 1,915 1,393 6,511 10,748 130 0.94 89 0.77 12.56 34.19 26 Real Estate (466) 194 9,413 8,844 130 0.94 99 0.86 5.86 39.70 27 Small Value (199) (191) 861 1,256 121 0.87 101 0.87 8.92 7.50 28 Muni National Short 783 2,014 5,374 5,671 112 0.81 104 0.90 0.45 2.32 29 Corporate Bond 1,496 1,771 5,753 881 104 0.75 94 0.81 2.70 14.12 30 Inflation-Protected Bond 790 2,019 (836) (16,705) 102 0.74 114 0.99 0.65 10.41 31 Intermediate Government 557 434 (4,227) (14,247) 101 0.73 111 0.95 1.57 6.61 32 Muni National Long 141 38 (2,132) (8,239) 90 0.65 90 0.77 3.51 20.32 33 Emerging Markets Bond (490) 1,731 1,359 (4,510) 86 0.62 83 0.72 1.22 13.09 34 Ultrashort Bond 1,067 2,830 5,470 8,961 77 0.56 67 0.58 0.11 1.02 35 Technology 275 837 2,212 5,364 75 0.54 53 0.46 8.81 20.72 2014 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: 2014-09-17 Page 2 of 6 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 08-31-2014 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 08-2014 Mkt Sh % 08-2013 Mkt Sh % 1-Mo YTD 36 High Yield Muni 1,120 560 6,554 2,756 69 0.50 59 0.51 3.08 22.73 37 Long/Short Equity 74 489 10,029 19,232 60 0.43 38 0.33 2.80 4.57 38 Europe Stock (2,645) (3,612) 10,238 24,344 60 0.43 31 0.27 0.96 1.89 39 Aggressive Allocation 11 32 89 195 58 0.42 48 0.41 5.94 14.91 40 Natural Resources (38) (406) (1,145) (637) 56 0.40 48 0.41 3.19 14.76 41 Equity Energy (664) (1,338) 5,152 4,596 53 0.38 40 0.34 6.43 26.64 42 Commodities Broad Basket 562 1,963 (592) (9,964) 51 0.37 62 0.54 (2.23) 0.91 43 Energy Limited Partnership 1,575 3,101 11,785 15,692 50 0.36 27 0.24 13.02 39.90 44 Commodities Precious Metals (229) 121 384 (5,763) 50 0.36 61 0.53 (0.97) 9.75 45 Global Real Estate 115 821 2,508 3,935 49 0.35 38 0.33 2.30 24.14 46 Miscellaneous Region 393 274 3,688 5,112 45 0.33 35 0.30 1.92 8.87 47 Short Government 907 803 (385) (4,072) 45 0.32 49 0.42 0.31 1.21 48 Financial 139 (690) (23) 1,731 40 0.29 33 0.28 6.48 6.83 49 Muni California Long 79 38 (18) (1,987) 37 0.27 35 0.30 3.06 19.91 50 Foreign Small/Mid Growth (110) (151) 1,861 3,993 36 0.26 28 0.24 4.48 10.07 51 Multialternative 820 1,329 5,854 8,694 36 0.26 26 0.23 2.65 5.59 52 Utilities (1,781) (1,474) 3,122 1,440 36 0.26 29 0.25 8.18 28.93 53 Market Neutral 1,033 1,935 3,522 4,544 33 0.24 28 0.24 0.18 0.42 54 Tactical Allocation 13 843 1,563 1,087 33 0.24 29 0.25 3.29 8.02 55 Pacific/Asia ex-japan Stk 832 1,091 (914) (486) 31 0.22 26 0.22 3.19 22.96 56 Japan Stock 58 75 0 4,222 30 0.22 24 0.21 (1.69) 3.36 57 Foreign Small/Mid Blend 224 508 3,808 5,614 27 0.20 19 0.16 1.29 8.18 58 Preferred Stock 10 589 2,686 179 26 0.19 24 0.21 2.43 20.42 59 Muni New York Long (51) (248) (827) (2,480) 25 0.18 26 0.22 3.12 18.72 60 Equity Precious Metals 87 318 1,034 2,695 25 0.18 23 0.20 1.86 53.90 61 Foreign Small/Mid Value 367 697 2,330 3,100 24 0.17 17 0.15 0.55 8.29 62 Long Government 3,948 4,977 9,251 7,034 23 0.17 14 0.12 8.18 35.07 63 Long-Term Bond 643 1,144 2,112 878 22 0.16 19 0.16 5.04 24.11 64 Convertibles 91 174 2,923 4,938 22 0.16 15 0.13 5.81 18.97 65 China Region 1,811 2,407 (424) 392 22 0.16 19 0.16 2.42 10.46 66 Muni Single State Long (51) (124) (859) (2,942) 21 0.15 23 0.19 1.57 8.43 67 Industrials 443 (2,103) (19) 4,975 21 0.15 13 0.11 8.10 9.45 68 Consumer Cyclical 1,276 1,242 (2,634) (1,270) 18 0.13 17 0.15 7.70 2.92 69 Trading-Leveraged Equity (1,176) (814) (4,468) (2,883) 18 0.13 15 0.13 15.19 33.25 70 Consumer Defensive 1,251 (189) 333 1,511 15 0.11 12 0.10 9.07 11.90 2014 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: 2014-09-17 Page 3 of 6 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 08-31-2014 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 08-2014 Mkt Sh % 08-2013 Mkt Sh % 1-Mo YTD 71 Diversified Pacific/Asia 176 213 (508) (180) 14 0.10 12 0.11 1.63 14.22 72 Muni California Intermediate 219 382 1,292 1,092 14 0.10 12 0.10 2.32 14.06 73 Managed Futures 137 326 1,419 2,162 13 0.09 10 0.09 2.23 2.26 74 Muni Single State Interm (21) (67) (326) (1,214) 13 0.09 13 0.11 1.03 5.64 75 Multicurrency 550 676 (302) (1,062) 12 0.09 13 0.11 1.15 2.79 76 Muni Single State Short (11) (105) (164) (1,067) 11 0.08 12 0.10 0.84 2.98 77 Latin America Stock 198 92 (32) (1,474) 11 0.08 10 0.09 15.45 27.74 78 Trading-Inverse Equity 354 471 3,863 2,862 9 0.07 11 0.09 (17.74) (42.70) 79 Muni Pennsylvania 8 (36) (273) (897) 9 0.06 9 0.08 1.35 8.03 80 Trading-Inverse Debt 261 734 1,640 2,468 8 0.06 8 0.07 (9.28) (29.85) 81 Muni New Jersey (25) (60) (221) (677) 7 0.05 7 0.06 1.55 8.51 82 India Equity 326 566 1,980 2,192 7 0.05 3 0.02 6.19 68.81 83 Muni Massachusetts 22 (2) (19) (497) 7 0.05 7 0.06 1.42 7.71 84 Communications 26 (31) (118) 8 6 0.05 5 0.05 0.79 4.81 85 Bear Market 109 336 (311) (1,616) 6 0.05 10 0.08 (11.51) (25.24) 86 Miscellaneous Sector (27) (38) 826 1,203 6 0.04 4 0.03 4.95 7.08 87 Muni Ohio (7) (19) (161) (554) 5 0.03 5 0.04 1.34 7.18 88 Muni Minnesota 5 5 (46) (319) 4 0.03 4 0.04 1.11 7.07 89 Muni New York Intermediate 16 26 20 (158) 3 0.02 3 0.03 2.18 12.43 90 Target Date 2026-2030 5 4 85 125 3 0.02 3 0.02 5.29 13.27 91 Target Date 2016-2020 (2) (21) (21) (25) 3 0.02 3 0.02 3.79 9.99 92 Volatility 143 416 1,041 1,419 3 0.02 3 0.03 (16.80) (20.31) 93 Target Date 2021-2025 (16) (23) 13 14 3 0.02 2 0.02 4.55 12.02 94 Commodities Energy 188 217 (245) (824) 3 0.02 3 0.03 (0.05) 0.43 95 Target Date 2036-2040 5 4 62 120 2 0.02 2 0.02 5.63 13.03 96 Commodities Agriculture 55 (6) (82) (338) 2 0.02 2 0.02 (1.37) 2.99 97 Target Date 2031-2035 (11) (14) 40 74 2 0.01 1 0.01 5.18 12.70 98 Trading-Leveraged Commodities 184 322 164 53 1 0.01 3 0.03 3.88 27.77 99 Target Date 2046-2050 9 12 73 125 1 0.01 1 0.01 5.54 13.33 100 Single Currency (128) (133) (937) (428) 1 0.01 2 0.02 (0.31) 0.51 101 Trading-Leveraged Debt 420 383 1,071 690 1 0.01 1 0.00 11.36 48.51 102 Trading-Miscellaneous (10) 43 (9) 32 1 0.01 1 0.01 (0.10) (2.49) 103 Target Date 2011-2015 (9) (17) (33) (60) 1 0.01 1 0.01 3.71 10.83 104 Retirement Income 14 5 (71) (114) 1 0.01 1 0.01 2.84 8.47 105 Trading-Inverse Commodities (247) (553) (112) (343) 1 0.01 1 0.01 0.12 (17.69) 2014 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: 2014-09-17 Page 4 of 6 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 08-31-2014 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 08-2014 Mkt Sh % 08-2013 Mkt Sh % 1-Mo YTD 106 Target Date 2041-2045 (7) 0 37 74 1 0.01 1 0.01 5.51 13.08 107 Target Date 2000-2010 (9) (23) (107) (145) 1 0.01 1 0.01 2.98 6.48 108 Commodities Industrial Metals 4 24 93 50 1 0.00 0 0.00 0.30 6.10 109 Target Date 2051+ 5 9 39 58 0 0.00 0 0.00 4.69 17.86 110 Commodities Miscellaneous 0 0 0 1 0 0.00 0 0.00 3.11 32.02 Top 10 14,176 25,143 129,746 218,955 8,231 59.44 6,804 58.66 All 32,607 61,676 334,787 471,827 13,847 100.00 11,599 100.00 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 08-2014 Mkt Sh % 08-2013 Mkt Sh % 1 Vanguard 14,547 32,808 128,653 171,153 2,573 18.58 2,029 17.49 2 Fidelity Investments 861 (5,289) (8,031) (9,830) 1,241 8.96 1,051 9.06 3 American Funds (219) (959) (377) (7,884) 1,175 8.48 993 8.57 4 ishares 9,857 13,253 39,592 62,691 734 5.30 587 5.06 5 PIMCO (2,154) (3,718) (34,516) (63,196) 519 3.75 550 4.74 6 Franklin Templeton Investments (215) (380) 3,069 3,533 461 3.33 403 3.47 7 T. Rowe Price (252) (25) 10,600 13,955 457 3.30 370 3.19 8 SPDR State Street Global Advisors (2,201) (869) (10,668) 18,445 407 2.94 338 2.91 9 JPMorgan 2,067 4,819 19,581 23,567 258 1.86 208 1.79 10 Dimensional Fund Advisors 1,982 4,277 18,753 26,250 251 1.81 189 1.63 11 OppenheimerFunds (330) (731) 4,923 8,392 210 1.52 176 1.52 12 BlackRock 892 304 8,167 13,755 209 1.51 172 1.49 13 Dodge & Cox 1,636 2,688 10,395 8,898 175 1.26 135 1.17 14 MFS 684 1,647 10,210 13,369 171 1.23 136 1.17 15 Columbia (1,025) (1,182) (5,938) (9,494) 168 1.21 155 1.33 16 Invesco (128) (243) (543) (1,423) 151 1.09 130 1.12 17 John Hancock 537 1,137 7,788 10,128 117 0.84 92 0.80 18 Principal Funds 151 588 3,867 4,366 111 0.80 92 0.79 19 Lord Abbett (53) (155) 1,253 1,384 109 0.79 99 0.85 20 Wells Fargo Advantage (324) (803) (1,342) (1,735) 104 0.75 94 0.81 21 Goldman Sachs 1,083 2,209 14,488 21,473 103 0.75 73 0.63 22 Janus (658) (1,320) (5,315) (8,731) 102 0.74 94 0.81 23 American Century Investments (1,295) (1,412) (3,713) (6,514) 100 0.72 92 0.79 24 Hartford Mutual Funds (512) (1,069) (4,146) (6,647) 97 0.70 89 0.77 25 PowerShares (322) 974 (158) 6,508 95 0.69 72 0.62 2014 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: 2014-09-17 Page 5 of 6 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 08-31-2014 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 08-2014 Mkt Sh % 08-2013 Mkt Sh % 26 Voya (733) (1,438) (4,523) (6,446) 93 0.67 85 0.73 27 Harbor 24 141 925 691 88 0.64 76 0.65 28 Oakmark 1,164 1,812 9,050 14,427 85 0.61 60 0.52 29 MainStay (1,134) (2,245) 1,430 7,436 85 0.61 68 0.58 30 Legg Mason (8) 496 2,762 2,451 84 0.61 70 0.61 31 SEI 218 702 2,632 2,557 83 0.60 70 0.61 32 TIAA-CREF Mutual Funds 843 834 4,761 6,509 79 0.57 61 0.53 33 First Eagle 419 725 2,906 4,592 78 0.56 65 0.56 34 GMO (482) (140) 1,395 (2,535) 77 0.56 70 0.60 35 Eaton Vance (440) (1,411) (4,695) (5,551) 77 0.55 75 0.64 36 Ivy Funds (718) (1,674) 2,416 6,076 75 0.55 61 0.52 37 Putnam 286 737 4,998 7,280 75 0.54 58 0.50 38 Prudential Investments 109 322 2,076 1,742 72 0.52 61 0.53 39 Dreyfus (124) (231) 354 (1,886) 64 0.47 58 0.50 40 Artisan (333) (329) 1,880 4,123 62 0.45 50 0.43 41 Federated 472 874 1,989 1,345 62 0.45 54 0.47 42 AllianceBernstein 621 682 3,554 3,318 61 0.44 52 0.45 43 Thornburg (1,194) (1,946) (5,968) (5,905) 59 0.43 59 0.51 44 Nuveen 509 605 3,501 2,950 59 0.42 50 0.43 45 Natixis Funds 388 1,293 4,411 5,200 57 0.41 46 0.40 46 USAA 176 329 1,350 1,296 55 0.40 48 0.41 47 Northern Funds (425) (354) 726 1,791 52 0.37 45 0.39 48 Deutsche Asset & Wealth Mngt (35) (78) (767) (2,711) 50 0.36 46 0.40 49 Delaware Investments 342 570 1,149 808 43 0.31 37 0.32 50 Neuberger Berman (171) (86) 1,400 2,070 42 0.31 35 0.30 Top 10 24,273 43,917 166,657 238,683 8,076 58.32 6,717 57.92 Top 50 24,384 46,736 246,306 344,044 11,816 85.33 9,876 85.15 Other 8,223 14,901 86,506 125,953 2,031 14.67 1,672 14.41 All 32,607 61,637 332,812 469,997 13,847 100.00 11,548 99.56 2014 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: 2014-09-17 Page 6 of 6 Fund Flows Monthly Market Summary: US Open-end & ETF ex MM ex FoF Including merged and liquidated funds Effective Date 08-31-2014 Asset Classes Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 08-2014 Mkt Sh % 08-2013 Mkt Sh % US Equity (4,114) (5,975) 3,482 75,747 5,785 41.78 4,695 40.48 Sector Equity 4,125 1,638 38,958 60,835 710 5.12 529 4.56 International Equity 14,507 26,675 118,719 201,273 2,363 17.07 1,847 15.93 Allocation 2,875 6,115 34,800 50,352 1,174 8.48 972 8.38 Taxable Bond 8,557 19,726 99,181 73,042 2,943 21.26 2,726 23.50 Municipal Bond 3,553 5,220 17,626 (8,406) 561 4.05 531 4.57 Alternative 2,523 5,959 22,463 35,822 205 1.48 169 1.45 Commodities 580 2,319 (442) (16,838) 106 0.76 130 1.12 All Long Term 32,607 61,676 334,787 471,827 13,847 100.00 11,599 100.00 Morningstar Ratings Name Estimated Net Flow ($mil) Total Net Assets ($bil) 1-Mo QTD YTD 1-Yr 08-2014 Mkt Sh % 08-2013 Mkt Sh % QQQQQ 27,182 54,506 172,591 223,080 2,021 14.60 1,532 13.21 QQQQ 4,866 17,289 106,784 184,358 5,772 41.68 4,778 41.19 QQQ (5,283) (21,445) (20,631) (38,364) 4,129 29.82 3,596 31.00 QQ (8,930) (12,879) (33,277) (59,232) 1,105 7.98 1,043 8.99 Q (754) (2,141) (2,545) (4,944) 196 1.41 180 1.55 Not Rated 15,526 26,346 111,865 166,930 624 4.51 470 4.06 Total 32,607 61,676 334,787 471,827 13,847 100.00 11,599 100.00 2014 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