(PUB) Investing 2016

12

Stocks and Oil Prices Rally Market Overview | Andrew Daniels

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

05-31-16

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

2.2 -0.5 10.5 10.0 7.4 1.5 2.4 9.0 9.8 6.4 1.1 4.0 7.6 9.0 5.5 2.2 0.8 8.1 7.8 6.8 1.4 3.5 7.4 8.0 6.5 1.6 5.7 7.8 8.5 6.6 2.5 -0.6 6.6 6.9 6.5 1.6 3.4 6.2 7.2 5.9

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

U.S. stocks continued to advance in May. The S&P 500 rose 1.8% and the Russell 2000 Index rose 2.2% despite the increasing likelihood that the Federal Reserve will raise short-term interest rates as early as the June policy meeting. Economic data continue to show signs of strength, and the Consumer Price Index— which measures the rate of inflation—is increasing. Thus, all eyes will be on the Fed’s mid-June meetings. On the flip side, overseas markets didn’t fare well in May. The MSCI EAFE Index fell 0.9% and is in the red for the year. In Europe, Austrian and Portuguese stocks fell 6.4% and 2.9%, respectively. In Asia, Singaporean stocks fell 4.4% and Japanese stocks fell 1.0%. Longleaf Partners International LLINX, with a Morningstar Analyst Rating of Neutral, fell 1.9%, while Silver-rated FMI International FMIJX rose 1.4%. Emerging-markets stocks fell 3.7%, driven by Brazil’s 13.7% loss, Turkey’s 13.3% loss, and South Africa’s 9.2% loss. Bronze-rated DFA Emerging Markets Value DFEVX fell 6.5%. Brent crude prices briefly hit $50 per barrel in May for the first time since November 2015. Brent crude ended the month at $49.69, up 3% from its price at the end of April and up 78% from its January low. Energy stocks, however, fell slightly in May—Neutral-rated Vanguard Energy VGENX fell 1.4%. The top-performing sector in May was technology, after being the worst-performing sector in April. Tech con- tributors include semiconductor firms NVIDIA NVDA and Applied Materials AMAT—both rose more than 19%. After falling sharply in April, Apple AAPL and Alphabet GOOG both rebounded more than 6% in May. The financials sector also posted solid returns in the quarter, as insurance firms Chubb CB and Markel MKL rose at least 6% and banking firms SunTrust STI and Comerica CMA rose at least 5%. K Contact Andrew Daniels at andrew.daniels@morningstar.com

Small Growth Small Blend Small Value

0.9 5.2 5.9 7.4 5.8 Allocation--70% to 85% Equity 0.8 2.4 5.3 5.7 4.7 Allocation--30% to 50% Equity 0.4 3.3 3.3 4.3 4.5 Allocation--50% to 70% Equity 0.7 2.7 5.1 5.8 5.2 Communications 1.0 5.9 7.9 6.4 5.1 Financial 1.6 -0.3 6.3 8.0 1.7 Global Real Estate -0.3 3.6 4.5 5.3 3.3 Health 3.0 -7.9 15.2 15.6 11.4 Natural Resources -2.8 11.9 -5.7 -5.7 -0.4 Equity Precious Metals -10.7 59.6 -5.0 -15.6 -2.0 Real Estate 2.0 4.3 9.2 9.2 6.3 Technology 4.8 0.1 13.1 9.1 8.4 Utilities 1.4 13.1 8.7 8.7 7.2 S&P 500 1.8 3.6 11.1 11.7 7.4 S&P MidCap 400 2.3 7.5 9.7 10.0 8.5 Russell 2000 2.3 2.3 6.9 7.9 6.3

Diversified Pacific/Asia Diversified Emerging Mkts

0.6 0.0 2.7 3.1 3.1 -2.4 2.5 -4.6 -4.2 2.8 0.2 -0.8 2.9 2.8 2.9 -0.1 -0.5 1.6 1.3 1.7 0.6 -0.3 2.9 2.6 3.0 -0.7 0.0 1.0 0.8 0.8 1.5 0.1 5.4 5.0 4.7 1.5 0.1 5.4 5.0 4.7 0.1 2.1 4.1 2.7 2.9 0.6 1.8 6.5 6.5 4.5 -3.7 2.9 -4.9 -5.4 2.5 -0.1 -0.6 2.0 1.9 1.7 -0.6 -0.7 1.8 1.6 2.0 -11.1 11.4 -16.5 -14.6 -1.1 -1.4 -1.6 2.2 3.3 1.8 0.6 5.7 1.8 4.2 5.9 -0.7 3.3 -0.5 1.3 3.5 0.0 3.2 2.3 3.2 4.6 0.4 2.8 3.8 5.5 4.4

Europe Stock

Foreign Large Blend Foreign Large Growth Foreign Large Value

Foreign Small/Mid Growth Foreign Small/Mid Growth Foreign Small/Mid Value

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 -1.2 4.3 0.5 1.4 4.1 BarCap US Agg Bond TR USD 0.0 3.3 2.9 3.2 4.8 BofAML US HY Master II TR 0.7 8.1 2.9 5.3 7.3 BarCap Municipal TR USD 0.3 2.7 4.0 5.1 4.9