(PUB) Investing 2015

12

China Spurs a Sell-Off Market Overview | Robert Goldsborough

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

08-31-15

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

-6.4 0.2 14.6 15.7 7.4 -6.1 -3.5 13.3 14.3 6.4 -6.0 -5.3 12.5 13.3 5.7 -6.2 0.3 14.4 15.2 7.8 -5.1 -2.9 14.1 14.4 6.9 -4.9 -3.8 14.4 14.5 7.0 -7.0 0.5 14.4 16.2 7.8 -5.3 -3.6 13.1 14.4 6.7 -4.3 -5.0 12.6 13.4 6.4 -5.4 -3.0 9.0 10.1 5.2 -2.7 -1.8 4.2 6.0 4.4 -4.2 -2.4 7.8 9.0 5.4 -4.7 0.0 9.2 10.2 4.6 -5.6 -1.3 14.7 11.9 2.4 -5.7 -4.5 6.4 8.4 3.8 -8.3 9.6 28.2 25.3 12.5 -4.9 -14.3 -5.0 0.4 1.8 2.7 -20.0 -28.9 -20.3 -1.4 -5.8 -6.2 7.2 11.6 5.9 -6.3 -1.9 14.3 14.5 8.4 -4.7 -8.9 8.7 10.3 6.6 -6.1 -2.9 14.2 15.8 7.1 -5.6 -1.5 15.1 16.1 8.7 -6.3 -3.0 14.2 15.6 7.1 -7.7 -1.3 8.0 6.2 5.1 -8.7 -12.0 -1.7 -0.9 4.9 -6.1 2.5 10.3 8.6 5.1 -7.1 -0.8 7.2 6.2 3.8 -7.1 -0.1 7.7 7.2 4.6 -6.8 -1.2 7.0 5.9 2.8 -4.9 4.3 10.9 10.4 6.6 -4.9 1.9 10.1 7.8 4.6 -6.4 -2.2 10.3 10.2 5.5 -6.6 -2.4 10.9 11.1 5.4 -8.8 -13.2 -3.0 -1.4 4.5 -7.4 0.2 8.3 7.0 3.7 -7.1 -0.6 8.8 7.5 4.1 -10.7 -24.6 -16.6 -12.3 1.3 -7.8 0.3 8.0 6.3 3.8 -1.7 0.2 4.2 6.4 6.1 -1.0 -0.9 -2.0 1.9 3.1 -0.4 0.1 1.7 3.2 4.2 0.2 0.6 2.7 4.1 4.0

Mid-Cap Growth Mid-Cap Blend Mid-Cap Value

A mini panic in China caused stocks to crater in August. Despite a modest end-of-month recovery, the S & P 500 still slid 6% for the month. Most believe that the rout was fueled by investor angst over the devaluation of China’s currency and broader concerns about slowing growth in that nation. Other factors also weighing on investor sentiment included weaker commodity prices and further instability in Greece. For much of August, energy prices were down, but they staged an impressive rally in the month’s final days. For the entire month, the Brent Crude oil spot price actually rose slightly. For the month, energy funds were down 4% . The biggest decliners were health-care funds, which slid 8% , and finan- cials funds, which fell 6 . 6% . Emerging-markets stocks were pummeled the most in August, with the MSCI Emerging Markets Index declining 9% . Although Greek stocks, which make up a small fraction of the index ( 0 . 27% ), were hit the hardest—declining a whopping 35% —the pain was broad-based. China and Brazil fell 15% and 11% , respectively. DFA Emerging Markets Value DFEVX , a broad-based emerging-markets fund with a Morningstar Analyst Rating of Silver, fell 9% in August. Meanwhile, U.S. bond prices were basically flat for the month, as longer-duration bond yields rose slightly and shorter-duration bond yields were a mixed bag. The Barclays US Aggregate Bond Index was down slightly for the month, while the Barclays U.S. 20 + Year Treasury Bond Index was flat. K Contact Robert at robert.goldsborough@morningstar.com

Small Growth Small Blend Small Value

Aggressive Allocation Conservative Allocation Moderate Allocation

Communications

Financial

Global Real Estate

Health

Natural Resources

Equity Precious Metals

Real Estate Technology

Utilities

S&P 500

S&P MidCap 400

Russell 2000

Diversified Pacific/Asia Diversified Emerging Mkts

Europe Stock

Foreign Large Blend Foreign Large Growth Foreign Large Value

Foreign Small/Mid Growth Foreign Small/Mid Value

World Stock

MSCI World

MSCI Emerging Markets

MSCI EAFE MSCI Europe

MSCI Latin America

MSCI Pacific

High Yield Bond

Inflation-Protected Bond Intermediate-Term Bond

Muni National Long

World Bond -0.9 -3.1 -0.4 1.8 3.7 BarCap US Agg Bond TR USD -0.3 0.2 1.4 2.8 4.2 BofAML US HY Master II TR -1.8 0.1 4.9 7.1 7.3 BarCap Municipal TR USD 0.2 1.0 2.8 4.0 4.5