(PUB) Investing 2015

12

A Difficult September Market Overview | Robert Goldsborough

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

09-30-15

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

-3.2 -2.9 12.5 12.6 7.0 -3.0 -6.5 11.3 11.7 6.0 -3.3 -8.4 10.3 10.8 5.3 -4.4 -4.2 12.0 11.7 7.1 -4.2 -6.9 11.7 11.2 6.4 -4.1 -7.7 12.0 11.3 6.5 -5.6 -5.2 11.2 12.1 7.0 -4.3 -7.7 10.4 10.9 6.1 -4.0 -8.8 10.1 10.2 5.9 -2.9 -5.9 7.2 7.8 4.7 -1.4 -3.2 3.3 4.9 4.1 -2.1 -4.4 6.4 7.3 5.1 -4.5 -4.5 6.2 7.2 4.0 -2.9 -4.1 12.4 9.7 2.1 0.7 -3.9 5.7 6.8 3.8 -8.9 -0.2 22.7 20.7 11.4 -8.9 -21.9 -8.9 -3.2 0.2 -3.5 -22.8 -32.4 -22.1 -3.2 2.3 -4.1 8.6 11.2 6.2 -2.3 -4.0 12.9 11.2 7.8 -1.4 -10.2 7.3 8.9 6.1 -2.5 -5.3 12.4 13.2 6.7 -3.2 -4.7 13.1 12.9 8.3 -4.9 -7.8 11.1 11.8 6.6 -3.2 -4.5 5.5 3.6 4.1 -2.6 -14.4 -4.1 -3.4 3.8 -3.3 -1.0 7.9 5.8 4.6 -4.2 -5.0 4.6 3.3 2.9 -3.2 -3.4 5.4 4.4 3.9 -4.5 -5.7 4.3 2.9 2.0 -2.9 1.3 8.3 7.3 6.0 -3.2 -1.2 7.4 4.8 3.9 -3.4 -5.5 7.9 7.4 4.9 -3.7 -6.0 8.6 8.3 4.7 -3.1 -15.9 -5.6 -4.2 3.4 -4.4 -4.2 5.8 4.0 2.9 -4.7 -5.2 6.0 4.3 3.3 -7.9 -30.5 -19.8 -15.4 -1.0 -5.8 -5.5 4.8 3.5 2.3 -2.4 -2.2 2.9 5.2 5.9 -0.8 -1.7 -2.5 1.5 3.1 0.3 0.3 1.6 3.1 4.3 0.7 1.3 2.7 4.2 4.1

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

Stocks suffered another punishing month in September as investors were spooked by continued slowing in economic growth in China and fears of the same in other emerging markets. Strong U.S. economic reports—including a healthy consumer and a decision by the Federal Reserve to hold off on an interest- rate hike for now—weren’t enough to overcome fears of global economic weakness spilling into the United States. In addition, several U.S. sectors that have led past rallies—including the health-care sector— suffered particular pain in September. Energy prices experienced another tough month in September, with the Brent Crude oil spot price falling 10% to $48 a barrel. As a result, energy funds slid 7 . 7% for the month. Weak commodity prices also weighed on basic-materials funds, which fell 7 . 8% . A variety of factors pressured health-care stocks in September, which fell 6 . 6% amid pressure from politicians’ comments about drug pricing— including calling for a subpoena of Valeant Pharma- ceuticals VRX —and broader concerns about slowing growth in China and other regions outside the United States. Biotechnology stocks were hammered the most by lawmakers’ invective. The MSCI EAFE Index declined more than 4% as German stocks were pressured by the VW emissions scandal and British stocks fell, owing to concerns over whether mining firms Glencore GLEN and Anglo American AAL can survive with metal prices remaining in their slump. The U.S. bond market was up slightly in September as investors migrated to riskless investments. The Bar- clays US Aggregate Bond Index was up slightly for the month. Long-dated government bonds did particu- larly well, as the Barclays U.S. 20 +Year Treasury Bond Index gained more than 1% amid falling bond yields. 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 -0.5 -3.6 -0.9 1.2 3.8 BarCap US Agg Bond TR USD 0.8 1.0 1.6 3.0 4.4 BofAML US HY Master II TR -2.6 -2.5 3.5 5.9 7.1 BarCap Municipal TR USD 0.7 1.8 2.9 4.1 4.6