(PUB) Morningstar FundInvestor

12

Stocks Pick Up in May Market Overview | Katie Reichart

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

05-31-14

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

3.1 2.2 12.7 16.8 6.9 2.2 4.2 13.0 16.6 7.0 1.7 4.6 13.1 16.6 6.9 1.6 0.0 10.3 17.9 8.1 1.6 3.2 12.1 18.8 8.7 1.8 4.4 13.2 19.5 9.0 0.1 -4.7 9.6 18.5 7.5 0.6 -0.6 11.7 18.9 8.3 0.7 0.6 12.5 19.4 8.6 1.8 3.5 8.8 13.3 6.6 1.3 3.9 5.7 9.1 5.1 1.7 3.7 8.3 11.9 6.0 3.9 1.9 8.8 14.8 7.3 1.2 0.7 12.2 13.9 3.1 3.3 8.8 7.0 14.6 7.8 3.0 6.1 20.8 22.3 10.5 0.5 6.4 -0.7 7.5 8.9 -6.1 8.1 -24.9 -8.4 3.6 2.6 15.3 9.3 21.3 8.9 3.7 2.3 10.6 17.9 7.9 1.3 11.7 12.5 15.3 10.5 2.4 5.0 15.2 18.4 7.8 1.8 3.2 12.9 20.8 10.3 0.8 -2.0 11.7 19.3 8.6 3.3 0.4 3.4 9.2 7.3 3.5 3.3 -1.3 8.3 10.5 0.6 3.7 6.9 12.6 7.7 1.7 2.6 5.6 10.5 6.6 1.8 1.6 5.3 11.4 7.1 1.4 3.8 6.1 10.3 6.4 1.9 2.6 8.4 15.7 10.3 1.3 4.3 7.5 14.5 8.2 2.1 3.6 8.8 13.7 7.4 1.6 3.8 7.3 11.4 7.1 2.0 4.3 10.6 14.5 7.3 3.5 3.4 -1.8 8.4 11.7 0.9 5.6 8.0 12.6 7.7 -0.4 1.3 -10.3 1.3 12.2 3.2 -0.1 6.0 9.3 5.9 0.8 4.0 7.5 12.9 7.2 1.8 4.6 2.7 4.9 4.2 1.1 3.9 3.9 6.3 4.5 1.6 7.0 5.8 5.9 4.4

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

After a sluggish April, the market picked up a bit in May. Many U.S. and foreign stocks posted modest gains, while the Barclays U.S. Aggregate Bond Index also came out ahead. In the United States, large-cap stocks continued to edge small caps.The S & P 500 posted a 2 . 35% gain for the month, while the Russell 2000 Index returned about 0 . 80% . Small-blend funds Berwyn BERWX and Ariel Discovery ARDFX were among the M 500 ’s worst performers for the month and have also ranked near the bottom for the year to date. Despite the precious-metals category’s reasonable gain for the year to date, the funds pulled back during the month. Diversified funds with significant metals and mining exposure, such as Royce Low Priced Stock RYLPX and Franklin Balance Sheet Invest- ment FRBSX , also posted below-average returns for the month. Real estate funds had a strong show- ing in May and have retained their place as one of the top-performing categories for the year to date. On the international front, the MSCI Emerging Markets Index surpassed the developed-markets- focused MSCI EAFE Index by nearly 200 basis points for the month. Janus Overseas JAOSX stood atop the foreign large-blend category thanks to its huge stake in emerging markets (nearly half the fund’s assets). Matthews India MINDX was the M 500 ’s top performer for the month and year to date, with double-digit gains following a loss in 2013 . Emerging-markets bonds were also strong. The category had one of the biggest fixed-income gains in May. Long-term government bonds continued their run. The average fund in the category was up double digits for the year to date, mirroring the broader trend of long-duration bonds surpassing shorter- duration fare. œ Contact Katie Reichart at katie.reichart@morningstar.com

Small Growth Small Blend Small Value

Aggressive Allocation Conservative Allocation Moderate Allocation

Communications

Financials

Global Real Estate

Health

Natural Resources Precious Metals

Real Estate Technology

Utilities

S&P 500

S&P MidCap 400

Russell 2000

Diversified Asia/Pac. Stock Diversified Emerg. Mkts.

Europe Stock

Foreign Large Blend Foreign Large Growth Foreign Large Value

Foreign Small/Mid Growth Foreign Small/Mid Value

World Stock

MSCI EAFE MSCI World

MSCI Emerging Markets

MSCI Europe

MSCI Latin America

MSCI Pacific

High-Yield Bond

Inflation-Protected Bond Intermediate-Term Bond

Muni National Long

World Bond 0.9 4.2 2.7 5.6 4.9 BarCap US Agg Bond TR USD 1.1 3.9 3.6 5.0 5.0 BofAML US HY Master II TR 1.0 4.7 8.6 14.5 9.0 BarCap Municipal TR USD 1.3 5.9 5.4 5.6 5.0