Global Investing 2013 Morningstar. All Rights Reserved. 3/1/2013

Global Investing 2013 Morningstar. All Rights Reserved. 3/1/2013

World Stock Market Capitalization Year-end 2012 18.5% 9.6% United States International: Other Europe United Kingdom Japan Other Pacific Canada 52.5% 8.5% 6.0% 4.9% Capitalization calculated at year-end 2012. Total market capitalization is $25.6 trillion. Estimates are not guaranteed. 2013 Morningstar. All Rights Reserved. 3/1/2013

GDP Growth by Region Five-year average annual percentage change 2008 2012 Russia 1.9% Canada 1.1% United Kingdom 0.6% India 6.9% China 9.3% Japan 0.1% United States 0.6% U.A.E. 2.2% Australia 2.4% Brazil 3.3% South Africa 2.1% Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. 2013 Morningstar. All Rights Reserved. 3/1/2013

Global Stock Market Returns Highest and lowest historical annual returns for each region 1970 2012 125% Annual ranges of returns 100 107.5% 75 69.9% 79.8% 50 37.6% 25 9.9% 9.7% 10.3% 9.5% 0 Compound annual return 25 37.0% 43.1% 46.1% 36.2% 50 United States International Europe Pacific Past performance is no guarantee of future results. Each bar shows the range of annual total returns for each region over the period 1970 2012. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Risk Level by Region Annual standard deviation 2003 2012 40% Risk 35 34.5% 33.3% 30 30.2% 25 26.6% 25.2% 20 18.9% 18.3% 15 10 5 0 Asia Pacific Canada Europe U.K. Japan U.S. Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Global Investing 1970 2012 $100 Compound annual return U.S. stocks International stocks International bonds U.S. bonds U.S. inflation 9.9% 9.7 9.3 9.0 4.3 $58.82 $54.38 $45.33 $39.90 10 $6.09 1 0.50 1970 1975 1980 1985 1990 1995 2000 2005 2010 Past performance is no guarantee of future results. Hypothetical value of $1 invested at the beginning of 1970. All values in U.S. dollars. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Growth Through Global Investing Annual returns of top-performing developed global stock markets 2012 Belgium 41% Germany 32% Denmark 32% Singapore 31% United States 16% 2011 Ireland 14% New Zealand 6% United States 2% UK 3% United States 2% 2010 Sweden 35% Denmark 31% Hong Kong 23% Singapore 22% United States 15% 2009 Norway 89% Australia 77% Singapore 74% Sweden 66% United States 26% Past performance is no guarantee of future results. Returns expressed in U.S. dollars. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Comparing U.S. and International Stock Performance Average returns over 10-year holding periods 25% U.S. stocks International stocks 20 15 10 5 0 5 1988 1991 1994 1997 2000 2003 2006 2009 2012 Past performance is no guarantee of future results. Based on data from 1979 2012. Calculated using rolling 10-year average returns. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Domestic Versus Global 1970 2012 Domestic portfolio Global portfolio 13% U.S. stocks U.S. bonds International stocks 40% 47% 60% 40% Return 9.5% Risk 11.0% Return 9.7% Risk 10.8% Past performance is no guarantee of future results. Risk and return are based on annual data over the period 1970 2012. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Key Differences Between Developed and Emerging Markets Developed countries Established and stable economies with strong consumption activities and ample resources. Ex. Australia, Canada, Japan, Germany, U.K., U.S. Emerging countries Countries that are starting to participate globally by implementing reform programs and undergoing economic improvement. Ex. Brazil, China, Mexico, Thailand, Russia, India 2013 Morningstar. All Rights Reserved. 3/1/2013

Regional Performance Growth of $1,000 from 1988 2012 $100k Compound annual return Latin America U.S. Emerging Europe Emerging Asia Emerging Far East Int l developed stocks 19.4% 9.7 9.4 8.4 8.0 5.5 $83,819 10k $10,136 $9,517 $7,562 $6,785 $3,809 1k 700 1988 1992 1996 2000 2004 2008 2012 Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Emerging Market Performance Risk and return 2003 2012 50% 46.0% 46.0% Risk Return 40 36.0% 30 28.8% 24.0% 20 16.1% 15.8% 18.1% 10 0 Emerging Europe Emerging Latin America Emerging Asia Emerging Mideast and Africa Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Undeveloped Opportunities 1993 2012 Returns as of December 2012 20% 18.6% 16.0% 16.9% Emerging markets United States 10 7.1% 8.8% 8.2% 1.7% 0 0.6% 5 1 year 5 year 10 year 20 year Growth of $10k $100k $54,224 $48,519 10 1993 1998 2003 2008 Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Emerging Markets Experience a Wider Range of Returns 1988 2012 150% Return Developed markets Emerging markets 125 * compound annual return 100 75 50 25 11.3% * 9.7% 8.0% 20.9% 7.7% 6.2% 18.1% 0 0.1% 25 50 75 Australia U.S. U.K. Japan Mexico Korea Taiwan Chile Past performance is no guarantee of future results. All values are expressed in U.S. dollars. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Global Market Downturns and Recoveries Periods of turbulence, 1988 2012 Number of downturns Greatest decline Average decline Average decline duration in months Average recovery duration in months* Emerging markets Asia 3 73% 57% 25 64 Europe 5 75% 53% 15 27 Far East 3 76% 58% 25 67 Latin America 7 61% 37% 5 19 Developed markets International stocks 3 56% 45% 21 32 Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. *Calculations do not include recovery from the 2007 2009 downturn, as the recovery duration is still unknown for all regions except the U.S. 2013 Morningstar. All Rights Reserved. 3/1/2013

Correlations by Region 2003 2012 Emerging Developed Asia Europe Far East Latin America U.S. stocks International stocks Emerging Asia 1.00 Europe 0.79 1.00 Far East 1.00 0.79 1.00 Latin America 0.83 0.86 0.82 1.00 Developed U.S. stocks 0.77 0.74 0.77 0.77 1.00 International stocks 0.85 0.85 0.84 0.84 0.90 1.00 Past performance is no guarantee of future results. Correlation ranges from 1 to 1, with 1 indicating that the returns move perfectly opposite to one another, 0 indicating no relationship, and 1 indicating that the asset classes react exactly the same. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Emerging Markets Can Improve Developed Portfolios 1988 2012 20% Return Developed portfolios Developed portfolios with emerging-market stocks Emergingmarket stocks 16 Small stocks 12 Bonds Large stocks 8 Int l developed stocks 4 Cash 0 0% Risk 5 10 15 20 25 30 35 40 Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

Global Winners and Losers 1998 2012 Highest returns 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 28.6% 66.4 21.5 3.7 24.8 56.3 26.0 34.5 32.6 39.8 25.9 79.0 19.2 28.2 18.6 20.3 27.3 15.7 0.8 17.8 39.2 20.7 14.0 26.9 11.6 10.3 32.5 15.1 9.2 18.0 20.2 26.0 1.3 2.4 14.2 28.8 14.6 11.9 15.8 10.8 9.7 26.5 11.8 6.9 17.9 13.1 21.0 9.1 3.0 6.0 28.7 11.8 7.8 10.5 9.9 37.0 25.9 10.1 2.1 16.0 14.3 5.3 14.0 11.9 15.7 18.7 10.9 4.9 6.8 6.5 43.1 4.2 8.2 11.7 3.5 25.3 9.0 30.6 21.2 22.1 1.4 8.5 7.3 1.2 5.5 53.2 14.9 5.8 18.2 3.3 Lowest returns U.S. stocks U.S. bonds International stocks International bonds Emerging-market stocks Emerging-market bonds Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013

The Case for Emerging-Market Bonds 2003 2012 Returns 20% U.S. stocks Long-term government bonds High-yield bonds Emerging-market bonds 10 0 Last 1 year Last 3 years Last 5 years Last 10 years Rolling 12-month standard deviation 9% 6 3 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 2013 Morningstar. All Rights Reserved. 3/1/2013