(PUB) Morningstar FundInvestor

12

An All-Time High for the S&P 500 Market Overview | Leo Acheson

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

08-31-14

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

4.2 7.4 18.6 16.1 8.7 3.7 8.5 19.1 15.4 7.9 3.6 8.7 19.2 15.0 7.6 4.8 5.2 17.4 17.0 9.9 4.3 7.2 19.1 17.1 9.5 4.2 8.7 20.3 17.2 9.5 4.6 -0.5 17.3 17.5 9.7 4.4 2.5 18.5 16.7 9.2 4.3 3.6 18.8 16.3 9.2 2.8 6.7 13.7 12.1 7.1 1.6 5.4 7.6 8.1 5.5 2.4 6.4 11.9 11.0 6.7 0.4 2.0 12.9 12.9 7.4 3.1 4.0 19.2 10.9 3.5 1.4 12.6 11.9 12.1 7.1 6.4 17.2 29.1 21.5 12.6 2.0 9.5 4.8 9.4 10.2 1.7 26.7 -22.3 -4.4 5.3 2.8 19.7 13.6 17.9 8.4 4.5 10.0 18.1 16.2 10.6 4.4 14.9 14.9 13.8 10.3 4.0 9.8 20.5 16.8 8.3 5.1 7.9 19.8 18.8 11.1 4.8 1.7 19.0 17.0 9.4 0.8 5.7 9.1 8.5 7.8 2.5 9.0 4.2 7.5 11.2 0.4 -0.8 12.5 9.6 8.5 0.7 2.0 10.0 8.1 6.9 1.2 1.6 9.7 9.4 7.4 0.4 2.8 10.5 7.6 6.4 1.0 2.4 12.2 13.9 10.4 0.4 3.4 11.3 10.2 8.3 2.5 5.8 14.0 12.3 8.1 0.2 1.9 11.2 8.1 6.7 2.2 6.8 15.5 12.3 7.6 2.8 8.7 3.7 6.9 11.6 0.7 1.4 12.8 8.9 8.1 7.8 14.5 -3.3 2.1 12.3 -0.4 3.0 9.1 7.6 6.4 1.3 4.8 9.5 10.9 7.3 0.3 5.1 1.5 4.6 4.4 1.0 4.8 3.7 5.3 4.6 1.5 8.6 5.4 5.6 4.2

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

After giving up ground in July, U.S. stocks bounced back nicely, reaching new all-time highs in August as the S & P 500 passed 2 , 000 for the first time. Economic news was generally positive, as housing data improved and the Purchasing Managers’ Index, an indication of health in the manufacturing sector, reached its highest level in more than four years. Most companies reporting second-quarter earnings beat estimates, too. Domestic equities performed well across the market- cap spectrum, with large-, mid-, and small-cap stocks all gaining roughly 4% or more. Growth out- performed value, as growth-heavy sectors like biotech and specialty retail rallied. T. Rowe Price Health Sciences PRHSX , which holds about a third of its assets in biotech names, prospered. The telecom and energy sectors, which are made up mostly of value stocks, underperformed the broad market. The MSCI Emerging Markets Index rose more than 2% , outperforming foreign-developed stocks for the fourth straight month. Latin America stocks led the way, with the MSCI Brazil Index gaining more than 11% . Vanguard Emerging Markets Stock Index VEMAX , which holds roughly 11% of its portfolio in Brazil, was the best-performing international fund in the 500 . Meanwhile, the MSCI Japan Index lost more than 2% , partly because the yen depreciated. Most bond sectors were up in August, with long- duration bonds leading the pack as yields fell. The 10 -year Treasury yield tumbled to year-to-date lows, finishing the month at 2 . 35% . The Barclays U.S. Government Long Index returned nearly 4% , while high-yield and investment-grade corporate-bond indexes gained roughly 1 . 5% . Treasury Inflation- Protected Securities and foreign-bond benchmarks posted small gains during the month. œ

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 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 0.7 5.1 2.8 5.0 5.1 BarCap US Agg Bond TR USD 1.1 4.7 2.8 4.2 4.5 BofAML US HY Master II TR 1.5 5.8 10.4 12.2 8.6 BarCap Municipal TR USD 1.2 7.5 4.9 5.4 4.8