(PUB) Morningstar FundInvestor

12

Fed Tapering Concerns Chill U.S. and Emerging Markets Market Overview | Kailin Liu

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

08-31-13

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

-1.6 15.6 17.1 6.4 6.1 -2.8 15.7 16.5 6.2 6.3 -3.2 16.8 16.6 6.1 6.5 -1.6 18.2 18.0 7.2 7.7 -2.9 18.0 18.0 7.7 8.4 -2.9 18.8 18.1 8.2 8.8 -1.1 22.5 20.7 8.3 7.7 -3.2 19.0 19.4 7.8 8.4 -3.6 18.3 18.9 8.4 8.8 -2.1 9.3 11.6 5.1 6.2 -1.5 1.9 6.7 5.0 4.7 -1.9 7.1 10.3 5.3 5.7 -2.1 9.6 12.4 5.0 7.5 -3.7 18.1 14.0 3.6 3.1 -4.1 -2.8 9.7 3.4 8.3 -1.9 29.7 25.3 12.1 9.9 0.6 -0.1 5.1 -3.7 9.5 7.9 -35.0 -16.9 -3.2 6.0 -6.4 -1.3 11.6 4.6 8.7 -0.5 16.3 15.6 8.5 6.8 -4.1 10.0 12.7 4.5 10.0 -2.9 16.2 18.4 7.3 7.1 -3.8 17.1 19.7 9.4 10.1 -3.2 20.0 20.5 8.0 8.8 -2.6 1.2 6.1 2.7 7.8 -2.9 -9.2 0.7 0.8 10.9 -1.3 8.8 9.7 1.7 8.1 -2.0 5.4 8.3 1.2 6.9 -1.9 4.5 8.8 2.2 7.4 -1.8 6.7 8.0 1.1 6.8 -1.3 11.1 12.4 6.0 11.1 -1.0 9.1 10.2 4.0 8.6 -2.1 10.2 11.7 4.2 7.3 -1.3 8.2 9.3 1.6 7.6 -2.1 11.7 13.3 4.1 7.1 -1.9 -11.9 -1.4 -0.6 9.5 -1.3 8.3 10.0 1.2 7.9 -3.3 -19.8 -8.4 -5.1 13.3 -1.4 8.0 8.3 2.8 6.9 -0.7 2.6 8.8 8.7 7.2 -1.4 -7.5 2.9 3.3 4.4 -0.7 -2.6 3.1 5.3 4.3 -2.0 -6.9 2.1 4.0 3.7

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

Fears about Federal Reserve tapering and weak retail numbers pushed the markets steadily down in August. The S & P 500 slid 2 . 9% for the month. Small-cap stocks were not immune to market conditions, as the Russell 2000 Index lost 3 . 2% . Almost all stock sectors dropped during the month, but precious-metals, commodities, and natural- resources stocks actually made some gains. The equity precious-metals, commodities broad-basket, and natural-resources fund categories gained 7 . 9% , 3 . 1% , and 0 . 6% , respectively, in August. PIMCO Commodity Real Return Strategy PCRDX under- performed the average commodities broad-basket fund with a 1 . 8% rise for the month. Developed foreign markets dipped a bit, and emerg- ing markets were clobbered. The MSCI EAFE Index only shed a modest 1 . 2% for the month, while the MSCI Emerging Markets Index dropped 1 . 7% . Euro- pean stocks performed relatively well this month; the Europe-stock category lost 1 . 3% on average. Mutual European TEMIX fared slightly better with a 0 . 7% downtick. Emerging markets with current account deficits proved to be quite vulnerable to signs of Fed tapering as it could mean an end to cheap financing. Virtus Emerging Markets Opportunities HEMZX outperformed many peers with a 8 . 2% loss. The Indian stock market had a particularly rough month as concerns grew over its currency’s strength. Taxable bonds slightly underperformed municipal bonds this month. The intermediate-term bond cate- gory lost 0 . 7% on average, compared with a 0 . 5% dip for intermediate-term government-bond funds. Short-term bonds did better than long-term bonds. The short-term bond category lost only 0 . 2% on average, compared with the long-term bond catego- ry’s 1 . 4% drop. PIMCO Total Return PTTRX lost 1 . 1% for the month. 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 -1.3 -5.1 2.3 4.5 5.0 BarCap US Agg Bond TR USD -0.5 -2.8 2.6 4.9 4.8 BofAML US HY Master II TR -0.6 2.8 9.6 11.2 8.9 BarCap Municipal TR USD -1.4 -4.9 2.5 4.5 4.5