(PUB) Investing 2016

12

Stocks Fall in October Market Overview | Andrew Daniels

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

11-30-16

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

-2.5 0.9 7.0 12.0 7.0 -1.9 4.0 6.6 11.9 5.8 -1.5 6.2 5.8 11.3 4.9 -3.9 1.0 4.1 10.2 6.6 -2.6 5.1 4.6 11.0 6.1 -2.3 7.8 5.2 11.7 6.2 -5.2 2.0 2.6 10.2 6.5 -3.8 5.9 3.1 10.5 5.7

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

U.S. stocks fell across the board in October as the third- quarter earnings season kicked off. The S & P 500 fell 1 . 8% , and the Russell 2000 fell 4 . 8% for the month. U.S. gross domestic product rose 2 . 9% in the third quarter, the fastest growth rate in two years, despite slowing growth in consumer spending. The data raises the likelihood that the Fed will raise rates this year. The anticipated rate increase led dividend-heavy real estate to be one of the worst-performing sectors in the Russell 3000 Index in October, losing 5 . 5% . Boston Properties BXP , Simon Property Group SPG , and Tanger Factory Outlet Centers SKT all fell more than 9% . T. Rowe Price Real Estate TRREX and Van- guard REIT Index VGSLX fell more than 5% . Commu- nication services stocks fell 4% last month, led lower by Charter Communications CHTR and InterDigital IDCC . Healthcare stocks also posted poor results in October, dropping 7% . Several biotech stocks such as Puma Biotechnology PBYI , Alnylam Pharmaceuticals ALNY , and Sarepta Therapeutics SRPT fell more than 35% during the month. Financials was one of the only sectors to end October in positive territory, rising 2% . Financials were lifted by banks such as KeyCorp KEY , SVB Financial SIVB , and Comerica CMA —all rose double-digits. The technology sector, despite dropping 0 . 6% , was a rela- tively solid performer in October. Alphabet GOOG — Google’s parent company—and Microsoft MSFT rose 5% after releasing quarterly earnings results that handily beat analyst expectations. Developed international markets also posted losses in October: The MSCI EAFE Index fell 2 . 1% . Austrian, Italian, and Spanish stocks rose more than 3% ; Kiwi, Israeli, and British stocks fell more than 5% . Emerging- markets stocks posted small gains of 0 . 2% for the month, as Brazilian, Egyptian, and Chilean stocks rose more than 7% . K

Small Growth Small Blend Small Value

-3.2 8.7 3.5 10.8 5.6 Allocation—70% to 85% Equity -1.8 4.7 3.8 7.9 4.3 Allocation—30% to 50% Equity -1.1 5.6 3.0 5.3 4.2 Allocation—50% to 70% Equity -1.5 4.8 3.9 7.4 4.8 Communications -2.0 7.8 4.3 9.6 4.1 Financial 1.1 2.7 4.3 11.8 1.4 Global Real Estate -5.3 2.4 3.5 7.9 1.4 Health -8.9 -13.4 8.4 16.6 9.8 Natural Resources -2.7 17.1 -6.8 -2.1 0.1 Equity Precious Metals -7.5 78.2 2.0 -13.0 -0.9 Real Estate -5.0 4.1 9.5 10.4 4.3 Technology -1.8 8.8 11.7 13.2 8.8 Utilities -0.8 13.8 6.5 9.1 5.9 S&P 500 -1.8 5.9 8.8 13.5 6.7 S&P MidCap 400 -2.7 9.4 7.1 12.9 8.4 Russell 2000 -4.6 6.4 4.2 11.6 6.0

Diversified Pacific/Asia Diversified Emerging Mkts

-1.8 7.1 2.8 7.0 3.8 -0.5 13.8 -1.9 1.3 2.9 -3.7 -4.7 -2.1 5.6 1.7 -2.2 0.7 -1.3 4.7 1.1 -3.4 0.1 0.0 5.6 2.4 -1.3 1.6 -2.3 4.1 0.2 -3.6 -0.1 1.5 8.1 4.3 -2.2 3.9 0.3 6.7 2.5 -2.4 3.3 2.7 8.1 4.0 -1.9 3.5 3.8 9.0 3.9 -0.8 16.3 -2.4 0.2 2.7 -2.2 0.5 -1.4 5.2 1.1 -3.3 -3.3 -3.0 4.3 0.7 9.7 42.8 -8.9 -7.8 -0.2 0.2 5.4 1.8 6.2 2.2 0.2 11.7 3.1 5.9 6.0 -0.2 6.1 1.1 0.8 3.4 -0.6 5.3 3.2 3.2 4.4 -1.0 3.1 5.4 4.7 4.0

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 -1.5 6.5 1.1 1.7 4.1 BarCap US Agg Bond TR USD -0.8 4.8 3.5 2.8 4.5 BofAML US HY Master II TR 0.3 15.7 4.5 7.1 7.5 BarCap Municipal TR USD -1.0 2.9 4.9 4.3 4.6