(PUB) Morningstar FundInvestor

12

Emerging Markets Take a Thrashing Market Overview | Flynn Murphy

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

01-31-14

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

-2.6 -2.6 12.9 19.2 6.3 -3.5 -3.5 12.1 17.9 6.1 -3.6 -3.6 12.0 17.5 6.0 -2.2 -2.2 12.4 21.3 7.8 -2.8 -2.8 12.6 21.2 8.1 -2.8 -2.8 13.0 21.3 8.3 -2.1 -2.1 14.4 22.8 7.4 -3.4 -3.4 13.5 21.9 7.9 -3.8 -3.8 13.2 21.8 8.2 -2.6 -2.6 8.4 15.0 5.9 -0.6 -0.6 5.4 9.9 4.5 -1.7 -1.7 7.9 13.1 5.3 -3.3 -3.3 9.6 19.2 6.2 -3.6 -3.6 10.7 18.5 2.5 -1.5 -1.5 5.6 16.9 6.8 5.0 5.0 26.3 22.2 10.6 -4.1 -4.1 -3.0 10.4 8.2 9.8 9.8 -22.7 -2.4 2.9 3.4 3.4 8.8 21.4 7.6 -0.5 -0.5 11.0 23.0 6.9 1.2 1.2 11.6 13.3 9.4 -3.5 -3.5 13.9 19.2 6.8 -2.1 -2.1 14.1 23.2 9.9 -2.8 -2.8 14.7 22.3 8.3 -4.7 -4.7 1.9 13.2 6.6 -6.3 -6.3 -3.0 14.6 8.9 -3.6 -3.6 6.3 17.1 6.9 -4.5 -4.5 4.7 13.4 5.8 -4.8 -4.8 5.0 15.0 6.3 -4.0 -4.0 4.7 13.0 5.7 -3.0 -3.0 8.4 20.2 9.7 -2.1 -2.1 6.9 18.3 7.7 -3.4 -3.4 8.3 16.2 6.6 -4.0 -4.0 5.9 13.8 6.3 -3.7 -3.7 9.3 16.3 6.4 -6.6 -6.6 -5.8 12.1 7.4 -3.9 -3.9 7.1 15.1 6.7 -9.6 -9.6 -13.1 6.9 10.1 -4.5 -4.5 3.8 11.6 5.6 0.5 0.5 7.5 15.0 6.7 1.6 1.6 3.2 5.2 4.0 1.3 1.3 4.0 6.7 4.1 2.2 2.2 5.9 6.1 3.7

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

Tumult in emerging markets, a disappointing December jobs report, and the Federal Reserve’s announcement that it would further taper its asset purchases all weighed on markets in January. The S & P 500 lost 3 . 5% during January. Small caps fared slightly better, though the Russell 2000 still lost 2 . 8% by month-end. Long-struggling equity precious-metals funds finally posted solid gains amid the turmoil. USAA Precious Metals and Minerals USAGX gained 9 . 9% in January, and First Eagle Gold FEGIX followed with a 9 . 8% return. Both funds benefited from a large stake in gold-miner Goldcorp GG , which gained 15 . 1% in January. Health-care stocks also made gains during the month, driven higher by the biotechnology industry’s continued run. The average health-care Morningstar Category fund rose 5 . 0% , while Fidelity Select Biotechnology FBIOX returned 13 . 1% . Foreign developed markets suffered less than emerging markets in January. The MSCI EAFE Index declined by 4% compared with a 6 . 5% loss for the MSCI Emerging Markets Index. The India-equity and China-region categories both lost more than 5% in January. Europe-stock funds offered some shelter, losing 3 . 6% in January. Morningstar Medalist funds Mutual European TEMIX and T. Rowe Price Euro- pean Stock PRESX played defense in January by losing 1 . 2% and 2 . 6% , respectively. Municipal bonds beat out taxable bonds in January. The intermediate-term muni-bond category gained 1 . 6% by month-end, compared with a 1 . 3% return for the taxable intermediate-term bond category. Amer- ican Funds Tax-Exempt Bond AFTEX landed near the top of the muni category, returning 2 . 1% . After a dismal 2013 , long government-bond funds were the best-performing bond-fund category for the month, with a 6 . 2% gain. œ Contact Flynn Murphy at flynn.murphy@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 0.1 0.1 2.6 6.1 4.3 BarCap US Agg Bond TR USD 1.5 1.5 3.7 4.9 4.6 BofAML US HY Master II TR 0.7 0.7 8.5 17.5 8.4 BarCap Municipal TR USD 2.0 2.0 5.8 5.5 4.4