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12

U.S. Stocks Move Higher Market Overview | Kailin Liu

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

05-31-13

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

2.6 13.1 14.6 4.0 6.5 2.3 14.9 14.9 4.2 6.8 2.4 16.1 15.0 4.1 6.9 3.0 14.5 15.0 4.5 8.4 3.1 16.4 15.3 5.7 9.1 2.9 17.0 15.5 6.2 9.4 4.6 15.9 15.5 6.0 8.6 3.9 16.1 15.2 6.4 9.5 4.1 16.1 14.7 7.2 9.8 0.7 9.3 11.5 3.3 6.7 -1.0 3.6 7.9 4.4 4.8 0.4 7.6 10.4 4.0 6.0 -3.4 7.0 12.9 1.7 8.0 3.6 17.2 11.4 1.1 3.5 -7.3 3.3 14.7 1.4 9.8 2.2 23.1 21.8 11.8 9.8 0.3 0.2 5.0 -6.6 9.9 -3.8 -34.6 -14.2 -7.4 8.4 -5.5 7.0 15.7 4.7 10.4 4.6 11.4 12.4 5.3 7.8 -5.8 9.7 14.8 2.0 9.8 2.3 15.4 16.9 5.4 7.6 2.3 16.7 17.5 7.7 11.1 4.0 16.5 15.7 7.2 9.8 -4.4 6.0 9.0 -0.3 10.3 -2.3 -1.3 5.7 -2.2 13.7 0.7 6.9 11.0 -2.5 8.3 -2.0 5.6 10.1 -2.2 7.6 -1.3 5.3 10.9 -1.1 8.2 -2.0 6.2 9.3 -2.3 7.7 -1.3 10.1 14.4 1.8 12.4 -1.6 7.8 11.4 0.2 9.7 0.4 9.9 12.1 1.3 8.1 -2.4 7.9 11.0 -1.6 8.3 0.0 11.2 13.3 1.5 7.7 -2.9 -4.4 2.9 -3.6 12.3 0.2 7.4 12.1 -2.2 8.1 -7.2 -7.7 -2.4 -7.4 16.2 -7.0 9.1 9.4 -0.2 9.0 -0.5 4.0 10.8 8.2 7.6 0.0 0.0 0.0 0.0 0.0 -3.9 -3.6 5.4 4.4 4.4 -1.3 0.1 5.8 5.4 4.1

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

The markets started off well in May but were spooked by the Federal Reserve’s plan to reduce the stimulus and reports of contracting Chinese growth. The S&P 500 rose more than 4% by May’s third week but dropped a little afterward, ending May with a 2 . 34% total gain. The Russell 2000 followed a similar tra- jectory but did slightly better at 4 . 00% by month-end. Financial-services stocks sparkled as the financials category gained 3 . 57% . Davis Financial RPFGX lagged its category average with 2 . 34% return. Finan- cials exposure (or lack thereof) was not a sure path to great or awful performance, however. While some funds that loaded up on financials did wallop their peers for the month—like Clipper CFIMX , which held almost 60% in financials and gained 3 . 96% —others, like Royce Special Equity Multi-Cap RSEMX and Weitz Value WVALX , posted very respectable returns for the month with less financials exposure than their category averages. Foreign markets finished lower. The MSCI EAFE Index dropped 2 . 31% by month-end. Emerging markets fared slightly worse with a 2 . 52% loss. This month’s drab showing for international indexes owed much to Latin American and Japanese markets’ reactions to reports of slowing Chinese growth. The Japan-stock fund category dropped 7 . 81% , while the Latin America stock fund index lost 7 . 16% . In contrast, Europe stocks funds did better. The Europe-stock fund category gained 0 . 67% . Mutual European TEMIX did excep- tionally well with a 3 . 36% climb. Muni bonds outperformed taxable bonds this month, though both were in the red. The intermediate-term muni-bond category dropped 1 . 65% by month-end, compared with a 1 . 32% fall for taxable intermediate- term bonds. PIMCO Total Return PTTRX landed near the bottom of its category with a 2 . 15% loss. Long government was the worst-performing bond- fund category with a 6 . 80% fall. œ

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 -3.0 -2.5 5.2 4.6 4.8 BarCap US Agg Bond TR USD -1.8 -0.9 4.6 5.5 4.7 BofAML US HY Master II TR -0.5 4.3 11.9 10.6 9.3 BarCap Municipal TR USD -1.2 0.2 5.5 5.7 4.7

Contact Kailin Liu at kailin.liu@morningstar.com