(PUB) Investing 2016

12

Small Caps Rally as Fed Pauses Market Overview | Andrew Daniels

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

09-30-16

1Mo

YTD

3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

0.6

3.4 6.0 7.8 4.9 7.9

9.2 8.8 7.7 6.4 6.7 7.3 5.1 5.6 5.7 5.6 4.1 5.4 6.8 5.3 6.2

15.0 14.7 14.0 13.9 14.3 14.9 14.4 14.5 14.6 11.3 14.2 11.5 20.2 -10.3 14.6 16.2 10.6 16.4 16.5 15.8 1.6 10.2 6.7 9.2

7.5 6.3 5.4 7.4 6.8 6.9 7.6 6.6 6.4 4.8 4.5 5.2 4.8 1.5 2.5 1.0 0.5 5.5 9.3 6.5 7.2 9.1 7.1 4.0 3.5 2.5 1.7 3.1 0.7 5.1 3.1 4.6 4.5 4.0 1.8 1.5 6.2 3.5 4.5 4.2 4.4 4.6 7.6 4.7 2.5

-0.1 -0.2

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

0.1 0.1 0.2 1.1 0.6 0.5 0.4 0.3 0.2

Stocks didn’t move much in September. The S & P 500 ended flat, while the Russell 2000 Index rose 1 . 1% . Strong economic data wasn’t enough to push the Federal Reserve to raise short-term interest rates at its Sept. 21 policy meeting. The Fed’s decision helped dividend-heavy utilities be a top-performing sector for the month. Regulated utilities such as AES AES and CenterPoint Energy CNP rose more than 3% . Franklin Utilities FKUTX , with a Morningstar Analyst Rating of Gold, rose 1 . 3% . The technology sector posted a solid gain of 2 . 5% in September. Computer hardware players Western Digital WDC and 3D Systems DDD , as well as online social-media firm Twitter TWTR , rose more than 19% . Fidelity Select Technology FSPTX climbed 3 . 3% . After months of anticipation, the Organization of the Petroleum Exporting Countries announced plans to curb oil production in upcoming months to end the supply glut. OPEC ’s decision pushed Brent crude prices and energy stocks—which had been down for the month—into positive territory. Midstream player Spectra Energy SE and drillers Rowan Companies RDC and Nabors Industries NBR rose more than 20% . Financials struggled in September after being the top-performing sector in August. Banks were led lower by Wells Fargo ’s WFC 13% decline amid the fallout from a scandal in its retail banking business. Consumer defensive stocks fell 1 . 5% during the month, as consumer packaged-goods firms Campbell Soup CPB and General Mills GIS fell about 10% . Developed international markets also posted gains in September: The MSCI EAFE Index rose 1 . 2% . Belgian, Austrian, and Norwegian stocks all gained more than 4% , while Israeli and Danish stocks fell more than 3% . Emerging-markets stocks gained 1 . 3% for the month, led by South Africa’s 6% gain and Russia’s 4% gain. K

10.2

Small Growth Small Blend Small Value

7.4

10.1 12.3

Allocation--70% to 85% Equity Allocation--30% to 50% Equity Allocation--50% to 70% Equity

6.6 6.8 6.4

Communications

0.8

10.1

Financial

-1.0 -0.7

1.6 8.2

Global Real Estate

Health

2.0 2.3 4.4

-5.0 20.2 92.6

12.3 -4.9

11.2

Natural Resources

Equity Precious Metals

4.6

Real Estate Technology

-1.7

9.5

12.7 13.2

2.8 0.9

10.8 14.7

Utilities

8.2

S&P 500

0.0

7.8

11.2

S&P MidCap 400

-0.6

12.4 11.5

9.4 6.7

Russell 2000

1.1

Diversified Pacific/Asia Diversified Emerging Mkts

2.6 1.5 0.9 1.3 1.6 1.2 2.6 2.3 0.9 0.5 1.3 1.2 0.9

9.0

4.4

8.9 3.7 8.6 7.1 8.6 6.3

14.3 -1.0

-0.4 0.4 0.5 2.0 3.8 2.2 4.7 -0.7

Europe Stock

Foreign Large Blend Foreign Large Growth Foreign Large Value

2.9 3.7 2.9 3.6 6.3 5.8

Foreign Small/Mid Growth Foreign Small/Mid Value

10.7

8.7

World Stock

10.8

MSCI World

5.6

5.8

11.6

MSCI Emerging Markets

16.0

-0.6

3.0 7.4 7.5

MSCI EAFE MSCI Europe

1.7 0.0

0.5

-0.6

MSCI Latin America

-0.9

30.1 -10.3

-6.6

-0.4

MSCI Pacific

2.0

5.3

2.3

7.3

High Yield Bond

0.6 0.7 0.1

11.5

3.8 1.3 3.7 6.0 2.1 4.0 5.3 5.5

7.0 1.2 3.4 4.9 2.4 3.0 8.2 4.5

Inflation-Protected Bond Intermediate-Term Bond

6.4 6.0 4.2 8.2

Muni National Long

-0.5

World Bond

0.2

BarCap US Agg Bond TR USD BofAML US HY Master II TR BarCap Municipal TR USD

0.1 0.6

5.7

15.3

-0.5

4.0