October 2013 Data through Sept. 30 U.S. Open-End Funds Also inside: Extended tables... 5 Morningstar Direct SM U.S. Open-End Asset Flows Update Investors Continue to Rotate to Shorter-Duration Bond Funds by Michael Rawson, CFA Long-term mutual funds received a tepid $2.5 billion inflow in September as municipal-bond funds remained in net redemptions for the seventh straight month. Taxable-bond funds saw their fourth straight month of outflows, although the pace of selling slowed relative to June's record outflow. U.S. equity funds saw their largest monthly outflow for the year to date, but the $3.3 billion outflow was small compared with the $9.1 billion average monthly outflow in 2012. International-equity flows were a bright spot. For the year to date, international-equity mutual funds have brought in $103 billion. While alternative mutual funds had the fastest growth relative to assets, the growth is largely driven by just one fund. For the quarter, money market funds brought in $92.3 billion compared with $11.1 for long-term mutual funds and $53.2 billion for exchange-traded funds. Estimated Net Flows $Mil* September 2013 QTD 1 Year Assets $Bil Organic Growth Rate % US Equity (3,263) 5,574 (16,847) 4,161 (0.08) Sector Equity 1,361 5,276 16,509 329 0.43 International Equity 7,282 23,755 99,208 1,586 0.48 Allocation 3,206 12,386 36,172 995 0.33 Taxable Bond (2,917) (19,892) 108,458 2,487 (0.12) Municipal Bond (6,543) (28,685) (31,619) 521 (1.26) Alternative 3,208 11,715 34,619 122 2.65 Commodities 146 949 3,102 50 0.29 All Long Term 2,480 11,078 249,602 10,250 0.03 Money Market 43,327 92,295 125,239 2,468 1.66 *Includes liquidated and merged funds. Source: Morningstar Direct Asset Flows Note: The figures in this report were compiled on Oct. 9, 2013, 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. Calamos and Schwab/Laudus 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 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. 2013 Morningstar, Inc. All rights reserved.
Investors pulled $12.2 billion from intermediate-term bond funds. The 10-year Treasury rate marched higher throughout most of the third quarter before falling slightly following the Fed's surprise decision to delay the removal of stimulus, ending September at 2.62%. That is up from 2.48% at the end of the June, a month in which rates spiked and investors pulled a record $24.4 billion from the intermediate-term bond category. Gold-rated PIMCO Total Return PTTRX suffered its fifth month of significant outflows, shedding $5.4 billion. For the year to date, $28.1 billion has left the fund through outflows, a stark contrast to 2012, when it brought in $18 billion. The fund made up ground last month, returning 1.77%, which brings its year-to-date return to negative 1.89%, even with the Barclays Aggregate Bond Index. Assets in the fund have fallen to $250 billion from $293 billion at the end of April. Even strong relative returns have not been enough to stem outflows for funds in the category. Neutral-rated DoubleLine Total Return DBLTX has eked out a 0.29% gain for the year to date through month-end, enough to put the fund in the top fifth percentile of the category. Yet the fund received its sharpest outflows ever last month: $2.1 billion left the fund and assets have fallen to $35.1 billion from $40.7 billion at the end of April. Estimated Flows by Morningstar Category Estimated Net Flow $Mil September 2013 QTD 1 Year Assets $Bil Leading Bank Loan 5,353 21,116 57,464 127 Nontraditional Bond 4,620 16,579 50,403 112 High Yield Bond 3,136 4,625 (7,657) 253 Short-Term Bond 2,755 6,145 28,698 259 Foreign Large Blend 2,395 11,064 39,555 596 Lagging Intermediate-Term Bond (12,213) (45,325) (34,799) 977 Large Growth (3,087) (7,881) (36,942) 1,049 Intermediate Government (2,871) (11,964) (28,302) 104 Muni National Interm (1,939) (7,498) (4,644) 120 Inflation-Protected Bond (1,926) (6,781) (15,682) 93 Source: Morningstar Direct Asset Flows While investors have shunned the intermediate-term bond category, they have embraced bank-loan and nontraditional bond funds. Both categories are viewed as having some defensive characteristics should rates rise. The bank-loan category has an average return of 3.77% for the year to date, while the nontraditional bond fund category has lost 0.62%. It remains to be seen whether these funds will continue to deliver. Bronze-rated Oppenheimer Senior Floating Rate Fund OOSIX led all bank-loan funds, bringing in $1.3 billion last month. It is the largest fund in the category. Loomis Sayles Senior Floating Rate and Fixed Income LSFAX brought in $131 million and has quickly grown to $1.3 billion since its launch two years ago. In the nontraditional bond category, Neutral-rated Goldman Sachs Strategic Income Fund GSZIX brought in $1.9 billion, while Scout Unconstrained Bond Fund SUBFX brought in $247 million. Bronze-rated PIMCO Unconstrained Bond Fund PFIUX, which has led the category in flows for the year to date, had a $385 million outflow. For the year to date, the institutional share class of the fund has lost 1.46%. Investors returned to high-yield bond funds last month, as $3.1 billion went into the category, erasing last month's outflow. Bronze-rated BlackRock High Yield Bond Portfolio BHYIX received $567 million, yet the second-largest fund in the category, Bronze-rated PIMCO High Yield PHIYX, had an outflow of $587 million. 2013 Morningstar, Inc. All rights reserved.
Since March, municipal-bond funds have lost $48 billion to outflows. That surpasses the $44 billion outflow in the period from November 2010 through August 2011. For the year to date, the municipal national intermediate category has had a return of negative 2.55%. The largest municipal bond fund, Silver-rated Vanguard Intermediate-Term Tax- Exempt VWITX saw a $525 million outflow in September, while JPMorgan Intermediate Tax Free Bond Fund JITIX lost $449 million to outflows. Equity Investors Look Overseas Despite posting better returns since rates began to rise in May, large-growth funds have suffered heavier outflows than large-value funds. Silver-rated Fidelity Contrafund FCNTX had outflows of $608 million, Bronze-rated T. Rowe Price Growth Stock Fund PRGFX had outflows of $434 million, and Neutral-rated Invesco American Franchise VAFAX had outflows of $177 million. Delaware U.S. Growth DEUIX bucked the trend with a $462 million inflow. While flows to U.S. equity funds remain lackluster, international-equity funds are receiving strong flows, leading all category groups for the month and year to date. The foreign large-blend, world-stock and diversified emerging-markets categories each have had strong flows, although flows to diversified emerging markets are off of their rapid pace from earlier in the year. Gold-rated Oakmark International OAKIX led all international-equity funds with a $1.4 billion inflow for the month. The fund closed to new investors on Oct. 4. The decision to close the fund comes after the fund has grown to $24.2 billion in assets from $9.5 billion a year ago. The fund's 40.79% return over the past year places it in the top 1 percentile of the category. Flows to international funds have been fairly balanced between active and passive. Combing mutual fund and ETF flows, actively managed funds have had inflows of $76.4 billion compared with $62.0 for passive. Within the U.S. equity category, active has seen outflows of $16.5 billion compared with $100.1 billion of inflows for passive. Within the alternative category group, Bronze-rated MainStay Marketfield MFLDX brought in $1.7 billion for the month and $10.2 billion for the year to date. The long-short equity fund has returned 13.17% annualized over the past three years through month-end, compared with 16.27% for the S&P 500, but it has accomplished this with less volatility, boosting its Sharpe ratio to 1.96 compared with 1.28 for the S&P 500 and placing the fund in the top 10% of the category. Assets are up nearly fivefold from just a year ago. Top- and Bottom-Flowing Funds in September Excludes money markets and funds of funds. Estimated Net Flow $Mil Assets $Bil Top-Flowing Funds Sept QTD 1 Year Sept Vanguard Institutional Index 3,629 3,431 7,137 146,919 Goldman Sachs Strategic Income 1,930 4,176 7,329 9,647 MainStay Marketfield 1,715 4,505 11,525 15,654 JPMorgan Strategic Income Opps 1,581 4,154 8,122 21,845 Vanguard Total Bond Market II Index 1,525 3,932 6,602 66,748 Bottom-Flowing Funds PIMCO Total Return (5,428) (20,626) (22,185) 250,051 Vanguard Five Hundred Index (3,140) (2,881) (3,115) 131,694 DoubleLine Total Return Bond (2,131) (3,841) 1,647 35,059 Old Westbury Global Opportunities (1,103) (1,065) (1,809) 5,823 Vanguard GNMA (1,028) (4,936) (9,895) 29,160 Source: Morningstar Direct Asset Flows. 2013 Morningstar, Inc. All rights reserved.
Selling at PIMCO Has Become Broad-Based At the provider level, Vanguard raked in the most flows last month, followed by Goldman Sachs and Dimensional Fund Advisors. Heavy outflows beset PIMCO, Janus, and American Century. Up until June, PIMCO had been able to offset outflows from the firm's flagship PIMCO Total Return fund with inflows into other funds. Year to date, PIMCO Total Return has shed $28.1 billion, yet the firm overall has only shed only $3.5 billion, including ETFs, but excluding money market funds and funds of funds. Since June, PIMCO Total Return lost $30.2 billion to outflows, but the firm overall lost $38.2 billion. The other funds that had been picking up the slack but have had weaker flows more recently include Bronze-rated PIMCO Unconstrained Bond Fund, Silver-rated PIMCO Income Fund PIMIX, and PIMCO Stocksplus AR Short Strategy Fund PSTIX. Outflows have increased at Gold-rated PIMCO Real Return Fund PRRIX and Silver-rated PIMCO Investment Grade Corporate Bond Fund PIGIX. Neutral-rated PIMCO Floating Income Fund PFIIX and Bronze-rated PIMCO High Yield both saw large outflows last month despite being in popular categories. Two PIMCO funds of funds that had seen strong inflows of the past few years have faced outflows in recent months. Gold-rated PIMCO All Asset Fund PAAIX and Silver-rated PIMCO All Asset All Authority Fund PAUIX shed $338 million and $719 million, respectively. Top-10 U.S. Open-End Fund Families Ranked by assets, excluding money markets and funds of funds. Estimated Net Flow $Mil Assets Fund Family September QTD 1 Year September $Bil Market Share Vanguard 3,247 6,454 64,367 1,799 17.55 Fidelity Investments (1,549) (2,281) 3,165 1,090 10.63 American Funds (2,164) (5,703) (30,862) 1,034 10.09 PIMCO (6,451) (24,850) 11,946 539 5.26 T. Rowe Price (1,107) (2,342) 3,375 385 3.76 Franklin Templeton Investment Funds (360) (2,499) 8,726 362 3.53 JPMorgan 962 6,269 22,240 208 2.03 Dimensional Fund Advisors 1,650 5,552 18,942 200 1.95 OppenheimerFunds 1,094 3,850 16,101 184 1.79 BlackRock 1,177 3,154 6,685 178 1.74 Source: Morningstar Direct Asset Flows. 2013 Morningstar, Inc. All rights reserved.
Morningstar Direct SM Publishing Date: 2013-10-09 Page 1 of 6 Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo QTD YTD 1-Yr 09-2013 Mkt Sh % 09-2012 Mkt Sh % 1-Mo YTD 1 Large Blend 598 4,362 16,271 6,450 1,330 12.97 1,130 12.47 3.44 19.76 2 Large Growth (3,087) (7,881) (20,090) (36,942) 1,049 10.23 901 9.94 5.04 21.41 3 Intermediate-Term Bond (12,213) (45,325) (61,652) (34,799) 977 9.53 1,031 11.38 0.97 (1.70) 4 Large Value (658) 2,573 6,358 5,082 728 7.10 601 6.64 2.75 19.98 5 Foreign Large Blend 2,395 11,064 42,015 39,555 596 5.82 481 5.30 6.87 12.61 6 Moderate Allocation 915 5,145 10,315 5,695 461 4.50 404 4.45 2.84 10.46 7 World Stock 1,851 2,581 14,272 9,779 322 3.14 275 3.04 5.36 16.41 8 World Allocation 292 3,441 12,577 12,195 300 2.93 260 2.87 3.05 4.69 9 Diversified Emerging Mkts 1,112 5,068 31,320 35,696 263 2.57 222 2.45 6.56 (2.95) 10 Short-Term Bond 2,755 6,145 20,570 28,698 259 2.52 230 2.54 0.45 0.00 11 Mid-Cap Growth (525) (1,785) (2,975) (8,018) 257 2.50 217 2.39 5.25 24.63 12 High Yield Bond 3,136 4,625 (4,435) (7,657) 253 2.47 247 2.72 0.98 3.62 13 Mid-Cap Blend 377 2,748 8,964 6,308 229 2.24 173 1.91 4.62 23.27 14 Conservative Allocation 1,412 2,882 13,867 16,877 189 1.85 163 1.79 2.00 3.98 15 Small Blend 218 1,806 5,756 4,413 178 1.73 140 1.54 5.88 25.76 16 World Bond (1,479) (2,819) 21,720 25,377 178 1.73 155 1.71 1.84 (3.18) 17 Small Growth (75) 1,201 2,559 (694) 171 1.67 135 1.49 6.32 30.35 18 Multisector Bond 285 (456) 7,940 15,364 169 1.65 149 1.64 1.22 0.13 19 Foreign Large Growth (36) 242 4,609 4,239 154 1.50 129 1.42 6.80 11.90 20 Bank Loan 5,353 21,116 51,510 57,464 127 1.24 66 0.73 0.23 3.77 21 Mid-Cap Value (197) 1,716 6,664 5,276 127 1.24 105 1.16 4.18 23.97 22 Foreign Large Value 899 2,332 5,410 4,448 123 1.20 105 1.16 7.00 14.21 23 Muni National Interm (1,939) (7,498) (7,878) (4,644) 120 1.17 128 1.42 1.81 (2.55) 24 Nontraditional Bond 4,620 16,579 44,943 50,403 112 1.09 62 0.68 0.36 (0.62) 25 Intermediate Government (2,871) (11,964) (27,486) (28,302) 104 1.02 137 1.51 1.04 (2.21) 26 Muni National Short (12) 550 1,928 2,968 101 0.98 98 1.08 0.51 (0.39) 27 Small Value 85 834 2,806 1,278 93 0.91 71 0.79 5.32 24.68 28 Inflation-Protected Bond (1,926) (6,781) (16,494) (15,682) 93 0.90 116 1.28 1.31 (6.28) 29 Muni National Long (1,690) (7,071) (10,465) (9,455) 88 0.86 100 1.11 2.35 (4.70) 30 Real Estate (43) (701) 4,584 4,146 74 0.73 68 0.75 3.34 1.91 31 Emerging Markets Bond (1,404) (3,134) 1,845 6,538 72 0.70 70 0.77 3.12 (7.27) 32 Health 560 2,180 6,237 5,680 70 0.69 49 0.54 5.68 36.67 33 High Yield Muni (16) (4,241) (7,591) (6,711) 59 0.58 70 0.77 2.32 (6.06) 34 Ultrashort Bond 1,739 5,094 9,410 12,369 58 0.57 45 0.50 0.13 0.23 35 Commodities Broad Basket 150 938 4,533 3,091 50 0.48 56 0.61 (2.06) (8.17)
Morningstar Direct SM Publishing Date: 2013-10-09 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 09-2013 Mkt Sh % 09-2012 Mkt Sh % 1-Mo YTD 36 Long-Term Bond 496 474 2,805 5,247 43 0.42 40 0.44 0.57 (3.64) 37 Long/Short Equity 2,370 6,518 14,390 16,056 42 0.41 24 0.26 2.29 9.72 38 Equity Energy 646 2,051 5,351 4,835 36 0.36 28 0.31 3.25 17.59 39 Short Government (1,205) (2,844) (5,505) (5,881) 36 0.35 42 0.47 0.34 (0.87) 40 Muni California Long (586) (2,287) (3,327) (3,343) 35 0.34 40 0.44 2.56 (4.11) 41 Global Real Estate 140 541 3,158 3,733 34 0.33 28 0.31 6.00 3.11 42 Technology 254 766 999 146 33 0.32 27 0.30 6.01 22.96 43 Foreign Small/Mid Growth 376 953 2,490 2,903 29 0.28 22 0.24 7.34 19.06 44 Natural Res (198) (343) (983) (1,634) 29 0.28 29 0.32 4.07 4.00 45 Muni New York Long (383) (1,749) (2,974) (2,992) 26 0.25 30 0.34 2.24 (5.35) 46 Multialternative 514 3,621 7,284 8,404 25 0.24 16 0.18 0.96 1.49 47 Muni Single State Long (623) (2,244) (3,093) (2,808) 22 0.22 28 0.31 2.21 (5.42) 48 Pacific/Asia ex-japan Stk (28) (67) 1,070 1,377 22 0.21 19 0.21 5.66 (1.13) 49 Market Neutral 227 895 3,734 2,988 21 0.21 20 0.22 0.58 1.50 50 Foreign Small/Mid Value 72 339 859 770 18 0.17 13 0.14 7.78 17.64 51 Utilities (75) (102) (184) (646) 17 0.17 19 0.21 2.84 13.38 52 Aggressive Allocation 186 481 768 892 16 0.16 13 0.15 3.78 13.42 53 Europe Stock 798 1,817 1,455 1,473 16 0.15 11 0.12 6.16 16.63 54 Foreign Small/Mid Blend 92 424 1,495 1,505 14 0.14 10 0.11 7.03 18.03 55 Muni Single State Interm (266) (920) (1,325) (1,270) 13 0.13 15 0.17 1.86 (3.05) 56 Convertibles 309 950 969 (189) 13 0.13 12 0.14 3.69 15.49 57 Equity Precious Metals (69) 305 (1,554) (2,094) 12 0.12 28 0.31 (8.84) (40.63) 58 Muni Single State Short (311) (479) (441) (317) 12 0.11 12 0.14 0.83 (1.37) 59 Muni California Intermediate (97) (298) 45 268 11 0.11 12 0.13 2.01 (1.82) 60 Multicurrency (70) (749) (56) (248) 11 0.11 12 0.13 1.14 (2.38) 61 Diversified Pacific/Asia (11) 29 1,648 1,900 11 0.11 7 0.08 7.14 8.47 62 Managed Futures 239 1,044 2,004 1,915 10 0.10 9 0.10 (0.38) (3.89) 63 Muni Pennsylvania (164) (612) (864) (876) 9 0.09 11 0.12 2.05 (4.61) 64 Bear Market (128) 65 3,821 5,233 9 0.09 5 0.06 (7.34) (25.73) 65 Financial (101) 407 714 796 7 0.07 5 0.06 3.74 22.07 66 Muni New Jersey (96) (420) (661) (652) 7 0.07 8 0.09 2.15 (5.07) 67 Muni Massachusetts (102) (468) (747) (698) 7 0.06 8 0.09 2.10 (5.05) 68 China Region (55) (12) (355) (486) 7 0.06 6 0.07 4.96 3.90 69 Long Government (203) (601) (1,268) (681) 6 0.06 8 0.09 0.84 (10.12) 70 Miscellaneous Region (100) (306) (1,162) (1,508) 5 0.05 6 0.07 6.56 6.33
Morningstar Direct SM Publishing Date: 2013-10-09 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 09-2013 Mkt Sh % 09-2012 Mkt Sh % 1-Mo YTD 71 Muni Ohio (122) (438) (568) (496) 5 0.05 6 0.06 2.16 (4.01) 72 Muni Minnesota (79) (294) (299) (213) 4 0.04 5 0.05 2.03 (3.43) 73 Communications 48 (12) 6 (71) 4 0.04 3 0.04 5.06 15.84 74 Consumer Cyclical 38 71 693 840 4 0.04 3 0.03 5.59 25.86 75 Latin America Stock (57) (256) (1,041) (1,403) 4 0.04 6 0.06 8.85 (10.48) 76 Industrials 204 208 606 647 4 0.04 2 0.02 6.41 26.87 77 Muni New York Intermediate (59) (216) (282) (379) 3 0.03 4 0.04 1.81 (2.47) 78 Japan Stock 14 (367) (696) (781) 3 0.03 3 0.03 9.14 24.88 79 Consumer Defensive (50) (120) (65) 67 3 0.03 2 0.03 2.84 18.36 80 Target Date 2016-2020 23 9 33 200 3 0.03 2 0.03 3.00 7.14 81 Target Date 2026-2030 24 31 157 263 3 0.03 2 0.02 3.72 10.52 82 Trading-Leveraged Equity 156 491 169 197 2 0.02 2 0.02 8.59 28.49 83 Target Date 2021-2025 6 (175) (94) 46 2 0.02 2 0.02 3.50 9.67 84 Target Date 2036-2040 19 37 122 207 2 0.02 1 0.02 4.19 12.72 85 Target Date 2031-2035 9 (140) (12) 76 1 0.01 1 0.01 4.16 12.80 86 Target Date 2046-2050 13 25 62 112 1 0.01 1 0.01 4.35 13.42 87 Retirement Income (5) (82) (196) (204) 1 0.01 1 0.01 2.12 4.51 88 Target Date 2011-2015 (4) (94) (88) 27 1 0.01 1 0.01 2.69 5.86 89 Target Date 2000-2010 (4) (38) (130) (121) 1 0.01 1 0.01 2.41 4.99 90 India Equity (41) (87) (215) (259) 1 0.01 1 0.01 10.47 (21.06) 91 Target Date 2041-2045 10 (93) (3) 47 1 0.01 0 0.01 4.44 14.11 92 Trading-Inverse Debt (54) (405) 55 (149) 1 0.01 1 0.01 (2.10) 2.80 93 Trading-Leveraged Debt (40) 239 184 224 0 0.00 0 0.00 1.00 (13.27) 94 Miscellaneous Sector 8 25 57 66 0 0.00 0 0.00 6.60 24.61 95 Target Date 2051+ 2 7 41 49 0 0.00 0 0.00 4.56 14.91 96 Trading-Miscellaneous (8) (11) (2) (8) 0 0.00 0 0.00 (0.84) (3.13) 97 Trading-Inverse Commodities (2) (2) 15 6 0 0.00 0 0.00 1.77 7.93 98 Trading-Inverse Equity 3 7 10 9 0 0.00 0 0.00 (9.65) (12.61) 99 Commodities Precious Metals (4) 11 11 11 0 0.00 (4.89) 100 Trading-Leveraged Commodities 0 0 (3) (8) 0 0.00 0 0.00 2.60 5.14 Top 10 (6,039) (12,827) 71,957 71,409 6,285 61.32 5,535 61.08 All 2,480 11,078 229,007 249,602 10,250 100.00 9,062 100.00
Morningstar Direct SM Publishing Date: 2013-10-09 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 09-2013 Mkt Sh % 09-2012 Mkt Sh % 1 Vanguard 3,247 6,454 54,002 64,367 1,799 17.55 1,533 16.92 2 Fidelity Investments (1,549) (2,281) 5,685 3,165 1,090 10.63 947 10.45 3 American Funds (2,164) (5,703) (13,745) (30,862) 1,034 10.09 916 10.11 4 PIMCO (6,451) (24,850) (8,227) 11,946 539 5.26 539 5.95 5 T. Rowe Price (1,107) (2,342) 4,015 3,375 385 3.76 327 3.61 6 Franklin Templeton Investment Funds (360) (2,499) 7,473 8,726 362 3.53 377 4.16 7 JPMorgan 962 6,269 16,566 22,240 208 2.03 171 1.89 8 Dimensional Fund Advisors 1,650 5,552 16,750 18,942 200 1.95 156 1.72 9 OppenheimerFunds 1,094 3,850 13,887 16,101 184 1.79 157 1.73 10 BlackRock 1,177 3,154 6,827 6,685 178 1.74 157 1.73 11 Columbia (1,059) (3,774) (9,715) (13,923) 159 1.55 154 1.69 12 MFS 622 3,519 15,500 18,614 142 1.38 107 1.18 13 Dodge & Cox (831) (349) (825) (3,709) 141 1.37 120 1.32 14 Invesco 56 (18) 1,881 1,619 136 1.33 118 1.30 15 Lord Abbett 200 614 5,753 8,879 101 0.99 85 0.94 16 Wells Fargo Advantage 30 (636) (1,232) (2,960) 97 0.95 92 1.02 17 Janus (1,282) (4,843) (9,828) (12,095) 97 0.94 93 1.03 18 John Hancock 908 2,383 8,958 9,827 96 0.94 76 0.84 19 Principal Funds 98 1,037 5,846 7,761 95 0.93 77 0.85 20 American Century Investments (1,414) (2,527) (3,775) (4,033) 93 0.91 89 0.98 21 Hartford Mutual Funds (399) (1,387) (7,651) (9,996) 90 0.88 85 0.94 22 Harbor (93) (811) 1,561 1,698 80 0.78 67 0.74 23 Eaton Vance 151 1,383 8,432 8,850 76 0.75 64 0.70 24 Goldman Sachs 2,040 4,200 9,710 10,150 76 0.74 60 0.66 25 Legg Mason 61 (122) (217) (9) 73 0.71 66 0.73 26 MainStay 1,615 4,182 9,982 10,773 71 0.69 52 0.57 27 GMO (1,112) (1) 879 2,073 70 0.68 61 0.67 28 ING Retirement Funds (578) (1,453) (3,636) (4,588) 69 0.67 64 0.71 29 First Eagle 426 1,144 4,875 5,639 67 0.65 56 0.62 30 Oakmark 1,376 4,620 9,614 9,802 64 0.63 42 0.47 31 TIAA-CREF Mutual Funds 265 1,463 4,947 8,326 64 0.62 47 0.52 32 Ivy Funds 671 1,672 4,543 4,197 64 0.62 51 0.57 33 Prudential Investments (112) (2) 3,353 5,126 63 0.62 52 0.57 34 Thornburg 545 668 1,848 1,513 62 0.60 54 0.60 35 Putnam 633 1,623 2,103 1,247 60 0.59 52 0.57
Morningstar Direct SM Publishing Date: 2013-10-09 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 09-2013 Mkt Sh % 09-2012 Mkt Sh % 36 Dreyfus (833) (179) 1,170 1,504 59 0.58 52 0.58 37 Federated (248) (1,465) (3,583) (3,757) 55 0.54 56 0.61 38 AllianceBernstein (139) (273) (466) (1,064) 52 0.51 50 0.56 39 Nuveen (240) (1,459) (289) 877 51 0.49 49 0.54 40 USAA (19) (137) 867 1,060 49 0.48 45 0.50 41 Natixis Funds 99 376 1,011 1,358 48 0.47 45 0.49 42 DWS Investments (473) (1,083) (2,271) (2,392) 47 0.46 47 0.52 43 Northern Funds 217 270 1,681 2,464 47 0.46 41 0.45 44 DoubleLine (1,708) (3,485) (1,843) 2,139 39 0.38 37 0.41 45 Russell (98) (260) 483 279 38 0.38 35 0.38 46 Delaware Investments 242 (561) (239) 69 38 0.37 36 0.39 47 Neuberger Berman 245 584 2,800 2,857 37 0.36 29 0.32 48 Pioneer Investments 206 (520) (476) (1,506) 35 0.34 33 0.37 49 Managers Funds 312 1,735 4,088 3,958 35 0.34 27 0.29 50 SEI 241 675 1,981 2,991 35 0.34 29 0.32 Top 10 (3,502) (12,395) 103,233 124,685 5,979 58.33 5,280 58.26 Top 50 (2,880) (5,594) 171,053 200,302 8,851 86.35 7,772 85.76 Other 5,360 16,966 57,398 50,685 1,399 13.65 1,192 13.15 All 2,480 11,371 228,452 250,988 10,250 100.00 8,964 98.91 Asset Classes Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1-Mo QTD YTD 1-Yr 09-2013 Mkt Sh % 09-2012 Mkt Sh % US Equity (3,263) 5,574 26,313 (16,847) 4,161 40.59 3,473 38.32 Sector Equity 1,361 5,276 19,621 16,509 329 3.20 291 3.21 International Equity 7,282 23,755 103,175 99,208 1,586 15.48 1,317 14.53 Allocation 3,206 12,386 38,390 36,172 995 9.71 865 9.55 Taxable Bond (2,917) (19,892) 43,902 108,458 2,487 24.26 2,397 26.45 Municipal Bond (6,543) (28,685) (38,542) (31,619) 521 5.08 574 6.34 Alternative 3,208 11,715 31,605 34,619 122 1.19 88 0.98 Commodities 146 949 4,544 3,102 50 0.48 56 0.61 All Long Term 2,480 11,078 229,007 249,602 10,250 100.00 9,062 100.00
Morningstar Direct SM Publishing Date: 2013-10-09 Page 6 of 6 Morningstar Ratings Name Estimated Net Flow ($mil) Total Net Assets ($bil) 1-Mo QTD YTD 1-Yr 09-2013 Mkt Sh % 09-2012 Mkt Sh % QQQQQ 10,628 26,226 146,129 190,970 1,693 16.52 1,390 15.34 QQQQ 1,085 3,525 72,713 81,570 4,208 41.06 3,646 40.23 QQQ (10,076) (19,819) (17,901) (48,563) 3,073 29.98 2,826 31.18 QQ (7,604) (22,910) (59,249) (85,573) 773 7.54 803 8.86 Q (2,297) (6,751) (25,627) (34,276) 181 1.77 204 2.25 Not Rated 10,745 30,808 112,943 145,474 322 3.14 194 2.14 Total 2,480 11,078 229,007 249,602 10,250 100.00 9,062 100.00