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FundInvestor

Research and recommendations for the serious fund investor

June 2012
SM

Volume Number

20 10

An Update on the Morningstar Analyst Rating


Its been half a year since we launched our Morningstar Analyst Ratings. Its a good time to take a look at where things stand so you can have some perspective. Its too early to judge performance, of course, but we can see how the ratings are breaking down. The analyst ratings are deep fundamental dives on a funds prospects. We examine funds based on five pillars: People, Price, Performance, Parent, and Process. We then rate each fund Gold, Silver, Bronze, Neutral, or Negative. So far we have rated more than 800 funds on our way to rating 1,500. We have 500 funds in FundInvestor, so youre not seeing all of the funds that we rate but mostly the best and biggest of that group. Thus, the portion rated in the FundInvestor 500 naturally skews higher than the full list of our rated funds. In addition, its worth keeping in mind that the 1,500 we will rate are worth covering either because they are compelling investments or simply big funds from a list of nearly 7,000 total funds. We dont have a set curve for ratings, but if we were to rate all of the funds in the United States, youd see a higher percentage of Neutral and Negative. As of the end of May, here is the breakdown: Gold 169, Silver 190, Bronze 203, Neutral 212, and Negative 54. As we rate the rest of our coverage list, Id expect Neutral will grow the fastest. It is already the largest bucket, and it will likely take up

quite a lot of our ratings. The reason is that many funds dont really stand out either because they have short track records or long but mediocre records. You may have wondered why there are no Negativerated funds in FundInvestor, but rest assured we are giving Negative ratings. Its just that I choose better funds for the 500 list. I do include some of the largest funds, which doesnt necessarily mean theyre among the best, so it is always possible one will get a Negative rating. In fact, we had rated Fidelity Magellan FMAGX a Negative before we launched the ratings last fall, but we changed it to Neutral when manager Jeffrey Feingold replaced Harry Lange. Although the ratings are subjective, theyre not about our gut feelings. We gather a lot of data in doing our analysis. Besides obvious things such as expense ratios and total returns, we look at index overlap, R-squared, tracking error, and returns relative to a benchmark on a yearly basis to understand how indexlike a fund is. To understand whether a funds asset base is bloated, we look at assets, days trading volume in top holdings, changes in total stocks, and concentration in the top 10 holdings. To understand a funds risk levels, we look at performance on a risk-adjusted basis and at portfolio-level risks. For instance, to understand a bond portfolio, we home in on yield relative to category and benchmark, credit breakdowns, and weighting by issuer. The subjective part comes in bringing that data together and in assessing a funds management, analysts, and strategy. Still, the average figures for each grade level validate the qualitative process quantitatively. When looking at expense ratios, Morningstar Ratings for funds (star ratings), manager
Continued on Page 2

Russel Kinnel, Director of Fund Research and Editor Fund Report Laudus Growth Investors U.S. Large Cap Growth 4

Morningstar Research 8 Target-Date Funds Put to the Test The Contrarian Are Investors Right to Sell These Funds? Red Flags Old Dogs, New Tricks Market Overview Leaders & Laggards Manager Changes and News FundInvestor Focused 10 Tracking Morningstar Analyst Ratings Income Strategist FundInvestor 500 FundInvestor 500 Spotlight 10

11

12 13 14 16 18

20 22 23

Follow Russ on Twitter @RussKinnel

An Update on the Morningstar Analyst Rating Continued From Cover

tenure, and investor returns figures for each group, you can see a stair step down. For Gold funds, the average expense ratio is 0.61%, the average star rating is 3.86, the longest manager tenure is an average of 12.7 years, and the average investor return ranking is 31 (1best and 100worst.) For Silver, the average expense ratio is 0.84%, average star rating is 3.6, longest manager tenure is an average of 11.1, and average investor return rank is 31. Those figures decline down to Negative-rated funds, which have an average fee of 0.98%, average star rating of 2.2, longest manager tenure average of 5.7, and average investor return rank of 72.2. To see what our ratings are saying about fund companies, I calculated a GPA for the 10 biggest fund companies. I assigned a 4 for Gold, a 3.5 for Silver, a 3 for Bronze, a 2 for Neutral, and a 1 for Negative. We still have nearly 700 funds to go, so these figures may well change depending on how good the remaining funds we rate are. Here is how it broke down. Honor roll: Vanguard 3.6, American 3.4, PIMCO 3.4, T. Rowe Price 3.4, and JP Morgan 3.0. And the rest: Fidelity 2.9, Franklin Templeton 2.8, BlackRock 2.6, Columbia 2.3, and Oppenheimer 2.3. To get a 3.4 or better for a large number of funds, a company has to have a lot of strong suits rather than just one, though its interesting that Vanguard and T. Rowe Price are closer to being strong across the board than American, which has weak bond funds, and PIMCO, which is only just building up a presence in equities. On the lower end, Columbia and Oppenheimer need to improve on a lot of fronts. Columbia landed three equity funds in the Negative bin, while Oppenheimer has three bond funds, a commodity fund, and a stock fund in Negative. Outside of the top 10, American Century received 2.6 as its funds lean toward the middle. It received no Gold ratings and only one Negative. MFS rated a 3.2

because the firm has steadily improved the quality of its research.
Updating Ratings Youll also be seeing more changes to existing ratings, as we continue to update and monitor changes at funds. We aim to review a rating quickly after a significant event such as a manager change. However, we will also keep looking for more-subtle shifts or details we hadnt uncovered before.

For example, we took Vanguard International Explorer VINEX down a notch in May because performance continued to deteriorate and the manager given 10% of the portfolio doesnt have a long track record. Neither signals a disaster, but it illustrates how we will continue to evaluate funds after weve rated them.
Updating Performance of Our Ratings Ill continue to update performance of our ratings on Page 18 and on mfi.morningstar.com. For now, Im just showing how the Gold ratings (formerly Fund Analyst Picks) have done because thats where our track record is the longest. The other ratings levels have only been around for a few months, but over time well provide more information about how each level is doing.

In the meantime, lets see how our ratings have done over the past 10 years. As you can see from the graphs, the average Gold (or Analyst Pick) fund has outperformed most of the benchmarks, with the exception of municipal bonds, where some of our lower-risk muni funds have lagged the benchmark. In our defense, you cant buy a muni index mutual fund. Versus muni peer groups, our performance has been excellent, as the batting averages on Page 18 illustrate. We hope to build on our pick success with our morecomplete Morningstar Analyst Ratings. Already we have rated more than twice as many funds as we had under our Picks and Pans system. In addition, the Analyst Ratings will let you track funds that fall somewhere between our top and bottom rungs.
Contact Russel Kinnel at russel_kinnel@morningstar.com

Morningstar FundInvestor

June 2012

10-Year Growth of 10K:


U.S. Diversified Equity vs. S&P 500

p Gold
17,000 15,000 13,000 11,000 9,000 7,000

p Benchmark

2002 2003

2004

2005

2006

2007

2008

2009

2010

2011

10-Year Growth of 10K:


Foreign vs. MSCI EAFE

p Gold p Benchmark
29,000 25,000 21,000 17,000 13,000 9,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

10-Year Growth of 10K:


Taxable Bond vs. Barclays Agg

p Gold p Benchmark
18,500 17,000 15,500 14,000 12,500 11,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

10-Year Growth of 10K:


Muni National Long vs. Barclays Muni

p Gold
18,500 17,000 15,500 14,000 12,500 11,000

p Benchmark

2002 2003

2004

2005

2006

2007

2008

2009

2010

2011

Data through May 31, 2012.

Morningstar Global Fund Report | Print Date: June 01, 2012 | FINRA Members: For internal use or client reporting purposes only.

Page 1 of 7

Laudus Growth Investors US Large Cap Gr LGILX


Morningstar Category Category Index Total Assets Inception Date Domicile Currency

Morningstar Analyst Rating

10/14/97 USA USD

US OE Large Growth Style Map


Giant Large Mid Small Micro

Russell 1000 Growth TR USD

1,083 Mil USD


2005 2006 2007

QQQQQ

Morningstar Rating

2002

2003

2004

2008

2009

2010

2011

2012

Performance 05/31/12
Growth of 10,000 Annualized USD Fund Category Index Value USD 17,458 12,455 13,847 Ret % 5.50 2.13 3.18

20K 15K 10K

Full Manager Change Partial Manager Change Bear Market Morningstar Rating
QQQQQ QQQQ QQQ QQ Q

5K

Deep Value

Core Value

Core

Core High Growth Growth

Regional Exposure

56 -28.61 -0.96 -0.72


Americas Europe & Africa Asia & Australia

( * & & ( & * & ( & _


34 29.71 1.05 -0.04 15 11.98 4.18 5.68 7 14.36 7.65 9.10 66 5.50 -1.56 -3.58 24 18.25 4.90 6.44 27 -37.74 2.93 0.69 8 49.58 13.90 12.37 57 14.46 -1.07 -2.25 21 1.19 3.65 -1.46

Quartile Rank in Category Percentile Rank in Category Total Return USD +/- Category +/- Index

9.41 % 2.94 2.24

96.9%

0.0%

3.1%

7 7 7 7 7 7 7 7 7 7 0
41 35 24 0.80 28 46 26 0.80 29 45 26 0.80 26 51 22 0.80 26 48 26 0.80 27 50 23 0.80 30 39 31 0.80 24 47 29 0.80 10 59 31 0.78 19 49 32 0.78 % % % %

Process
Equity Style Box Asset Allocation Stock Bond Cash Other

People Lawrence Kemp Total Named Managers 01/02 1

Super Sector

x Defensive w Sensitive m Cyclical

Price Expense Ratio

A hidden gem.

Analyst View Russel Kinnel Director of Fund Research


Morningstar Analyst Rating Morningstar Pillars Process | Page 2-3 Performance | Page 4 People | Page 5 Parent | Page 6 Price | Page 7

Positive Positive Positive Negative Positive

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis.

Analyst Rating Spectrum

May 03, 2012 | This is one of the better focusedgrowth funds you're likely to find. Lawrence Kemp and his seven-analyst, New York-based team at subadvisor UBS have built a strategy that has successfully avoided the pitfalls seen at most focused-growth funds. By blending in three stock types, they haven't suffered the brutal droughts that plague so many focused-growth funds. Kemp groups stocks into three types: classic-growth stocks to be bought on temporary weakness, elite "hyper growth phase" companies worth paying up for (such as Apple AAPL), and cyclical growth such as oil. He also pays attention to price momentum in an attempt to have at least some stocks that are rallying. The fund hasn't had a calendar year in large growth's bottom quartile, and it even managed top-third performances in 2007 and 2008 despite the fact that it always stays fully invested in equities. Thus, you have a fund with topdecile returns over the trailing three-, five-, and 10-year periods. In fact, the fund has produced

top-quartile returns in 78% of the rolling threeyear periods over the past decade. Just as surprising as that record is the fact that few individual investors have found the fund, which has $1 billion in assets. The team is actually running $10 billion in this strategy, however, as institutional investors have warmed up to the team faster than individuals. Kemp and his team have executed the strategy quite well and that owes in part to the experience of the team. Six of the seven analysts have more than 10 years' experience. The team has consistently added value through stock selection since taking over this fund in 2002. Sealing this fund's appeal is its reasonable expense ratio of 0.78%. That's well below the average large-growth fund. We wouldn't suggest that this fund will always avoid downturns, but its ability to do so is certainly encouraging. We rate it Bronze, in part, because we have had the fund under coverage for less than a year and we want to get to know management better.

2012 Morningstar, Inc. All rights reserved. The information, data, analyses, and opinions contained herein (1) include the confidential and proprietary information of Morningstar, Inc., (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, Inc., (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Morningstar, Inc. shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstars current expectations about future events; therefore involves unknown risks and uncertain-ties that may cause Morningstars expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees nor should they be viewed as an assessment of a funds or the funds underlying securities creditworthiness.

Morningstar FundInvestor

June 2012

Morningstar Global Fund Report | Print Date: June 01, 2012 | FINRA Members: For internal use or client reporting purposes only.

Page 2 of 7

Laudus Growth Investors US Large Cap Gr LGILX Process: Approach


Focused--not myopic.
Morningstar Category Category Index

Morningstar Analyst Rating

Index Proxy

US OE Large Growth

Russell 1000 Growth TR USD iShares Russell 1000 Growth Index

Process Pillar

Positive

May 03, 2012 | This fund follows a disciplined focused-growth strategy. Management aims to tone down the extremes of a concentrated strategy by using three stock types: classic growth, elite growth, and cyclical growth. The upshot is that the fund is more diversified and consistent than most foEquity Style Box 12/31/11
Fund Category Average Index Proxy Centroid: Weighted average of equity holdings Zone: 75% of funds equity holdings
Giant Large Mid Small Micro

cused-growth funds. Lawrence Kemp and team will shift weightings in each bucket depending on what appears more attractive. They do have some hard-and-fast parameters, though. They limit their top name to 8% of assets, and they won't deviate from the Russell 1000 Growth benchmark's sector weightings by more than 15 percentage points. In addition, they sell any stock that falls below a market-cap limit of $2.5 billion and keep names under $5 billion to a minimum. Finally, foreign equities are capped at 20%, and
Asset Allocation 12/31/11
Current Allocation 3-Year Average

they have not yet come close to that. The result is rather pure large-growth exposure. The team blends growth and value strategies, but the overall tilt is always to growth. They are more valuation-sensitive with classic-growth and cyclical-growth names, but elite-growth names are allowed a little more room to run. They will, however, trim positions as they approach fair value. On the growth side, though, they like stocks with positive price momentum and, of course, strong growth rates.

Assets %

Fund 3-Yr Avg

Category

Proxy

U.S. Equities Non-U.S. Equities Bonds Cash Other Regional Exposure 12/31/11
Market Type Equity % Fund 3-Yr Avg Category Proxy

92.8 4.3 0.0 2.9 0.0

94.7 3.5 0.0 1.8

89.9 7.4 0.2 2.3 0.2

99.4 0.5 0.0 0.1 0.0

Deep Core Core Value Value

Core High Growth Growth

Sector Delta 12/31/11 98.0 2.0 98.7 1.3 99.9 0.1


ens

Style Box Factors 12/31/11


Market Cap Fund 3-Yr Avg Category Proxy

Developed Emerging
Top 5 Countries Equity %

95.6 4.4

Fund Index Proxy Larger sector concentrations versus the index move the investment to the corner of the triangle corresponding to that equity Super Sector.

Sen siti ve

Giant/Large Mid Small/Micro

80.7 19.2 0.0

85.7 14.3 0.0 31.7

77.5 19.8 2.7 40.4

78.0 20.8 1.2 39.9


Proxy

Fund 3-Yr Avg Category

Proxy

Avg Market Cap Bil USD 30.3


Value Measures

Fund 3-Yr Avg Category

Price/Prospect. Earnings 17.6 Price/Book 3.4 Price/Sales 2.2 Price/Cash Flow 11.5 Dividend Yield 1.1
Growth Measures

18.4 3.0 2.2 10.9 1.3

14.4 3.0 1.9 10.2 1.5

14.9 3.5 1.6 9.8 1.9


Proxy

United States China Argentina Canada Ireland

95.6 3.1 1.3 0.0 0.0

96.0 1.9 0.3 0.7 0.0

92.4 0.8 0.1 1.3 0.2

99.5 0.0 0.0 0.1 0.1

Def

ive

Cyclical

Equity Sector Breakdown 12/31/11


Sectors Fund 3-Yr Avg Category Proxy

Economic Moat 12/31/11


Moat Rating Fund 3-Yr Avg Category Proxy

Fund 3-Yr Avg Category

Long-Term Earnings % Historical Earnings % Sales % Cash Flow % Book-Value %

16.3 22.3 14.4 12.2 15.0

14.4 17.1 11.7 12.0 13.9

17.9 66.6 41.1 60.6 43.9

12.4 13.6 5.6 8.4 11.4

Wide Moat Narrow Moat No Moat Coverage Ratio Key Ratios 12/31/11

30.8 57.8 11.4 96.0

40.1 51.0 8.9 95.2

47.7 40.3 12.0 92.4

49.1 41.0 10.0 94.8

x Defensive s Consumer Defensive d Healthcare f Utilities

19.0 9.9 9.2 0.0

20.0 6.3 13.7 0.0 49.6 2.6 6.9 12.1 28.0 30.4 3.4 15.9 11.1 0.0

19.4 6.7 12.4 0.3 51.1 1.5 9.3 11.3 29.0 29.5 3.5 18.4 7.3 0.3

23.6 13.4 10.1 0.1 54.6 3.0 10.7 14.6 26.2 21.8 4.7 12.3 3.1 1.7

48.6 w Sensitive i Communication Serv. 2.6 8.5 o Energy 6.7 p Industrials 30.9 a Technology m Cyclical r Basic Materials t Consumer Cyclical y Financial Services u Real Estate 32.4 6.1 20.0 6.2 0.0

Fund 3-Yr Avg Category

Proxy

Net Margin % ROA % Debt/Total Capital % ROE %

15.3 12.1 25.1 23.4

15.0 10.6 26.3 21.9

16.3 12.1 26.6 24.9

15.0 12.3 34.5 30.1

2012 Morningstar, Inc. All rights reserved. The information, data, analyses, and opinions contained herein (1) include the confidential and proprietary information of Morningstar, Inc., (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, Inc., (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Morningstar, Inc. shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstars current expectations about future events; therefore involves unknown risks and uncertain-ties that may cause Morningstars expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees nor should they be viewed as an assessment of a funds or the funds underlying securities creditworthiness.

Morningstar Global Fund Report | Print Date: June 01, 2012 | FINRA Members: For internal use or client reporting purposes only.

Page 3 of 7

Laudus Growth Investors US Large Cap Gr LGILX Process: Portfolio


Morningstar Category Category Index

Morningstar Analyst Rating

Index Proxy

US OE Large Growth

Russell 1000 Growth TR USD iShares Russell 1000 Growth Index

Process Pillar

Positive

May 03, 2012 | Lawrence Kemp and company have been shifting more to the elite-growth bin at the expense of classic growth--hence the big weightings in the Apples AAPL and Googles GOOG of the world. It was a timely shift as Apple and Amazon.com AMZN have been surging. The move is also apparent from the fact that a full
Similarity to Index Proxy 05/30/12
Index Proxy Overlap
Proxy Fund Number of Equity Holdings

three fourths of the portfolio now resides in large growth. The sector weightings also show the fund near its peak in technology but light in basic materials and health care. The other bins are not empty, though. Classic-growth names CVS Caremark CVS and McDonald's MCD are in the top 10. In addition, a smattering of cyclical names such as Concho Resources CXO and Schlumberger SLB can be found in the portfolio. Although none of those are brand-new to the portfolio, all were made large positions in the fourth quarter.

The fund does have relatively new positions, too. It added NetApp NTAP because the managers believe Wall Street has underestimated its ability to withstand competitive threats. They added the cyclical Cabot CBT, which got cheap because of depressed natural gas prices. Kemp and team add and trim position sizes as they slip further from and grow closer to their fair value estimate. Thus, turnover tends to be high--typically in the neighborhood of 100%-even though many of the names have been in the portfolio for years.

Largest Common Holdings

Fund % Proxy %

Largest Distinct Holdings

Fund %

Fund Index Proxy

46 588

Fund Overlap With Index Proxy Circle size represents number of holdings.

Holdings Overlap 41 Asset Overlap 23.5%

Apple, Inc. Google, Inc. A McDonald's Corporation Qualcomm, Inc. Schlumberger NV

6.71 4.31 2.97 2.73 1.47

7.82 2.16 1.36 1.40 1.27

CVS Caremark Corp Ssc Goverment Mm Gvxx Baidu, Inc. ADR CME Group, Inc. A Mercadolibre, Inc.

3.16 2.86 2.18 2.03 1.26

Portfolio Holdings 12/31/11


Current Portfolio Date

12/31/11

Previous Portfolio Date

09/30/11

Equity Holdings

46

Bond Holdings

Assets in Top 10 Holdings

37%

Turnover Ratio (Reported)

96%

Top 10 Holdings

Country

Assets % Assets % Proxy % 12/31/11 09/30/11 12/31/11

First Bought

Days Morningstar Economic Trading Rating for Stocks Moat

Sector

1-Yr Total Ret %

T Apple, Inc. T Google, Inc. A T Visa, Inc. T Amazon.com Inc T Estee Lauder Cos Inc A T CVS Caremark Corp T Express Scripts T Las Vegas Sands Corp T Priceline.com, Inc. T McDonald's Corporation
Change since last portfolio: T Increase New Holdings Largest Purchases Y Decrease % Assets

USA USA USA USA USA USA USA USA USA USA
R New Sector

6.71 4.31 4.02 3.67 3.19 3.16 3.07 3.05 2.97 2.97

7.53 3.88 3.20 4.77 2.63 2.51 2.63 3.26 2.55 3.37

7.82 2.16 0.29 1.11 0.18 0.62 0.27 0.46 1.36

03/05 09/04 06/11 03/08 06/11 12/10 12/08 09/10 09/09 12/08

<1 <1 <1 <1 <1 <1 <1 <1 <1 <1

QQQQ QQQQ QQQ QQQQ Q QQQ QQQQ QQQQ QQQ QQQQ

Narrow Wide Wide Wide Narrow Narrow Wide Narrow None Wide

a Technology a Technology y Financial Services t Consumer Cyclical s Consumer Defensive s Consumer Defensive d Healthcare t Consumer Cyclical t Consumer Cyclical t Consumer Cyclical

66.10 9.80 43.12 8.25 6.67 17.64 -12.37 11.77 21.41 12.89

Eliminated Holdings Largest Sales

% Assets

Sector

Largest Position Changes

Current %

Prior %

Ssc Goverment Mm Gvxx EOG Resources NetApp, Inc. Dollar General Corporation Monsanto Company

2.86 1.60 1.58 1.22 0.76

o a s r

Precision Castparts Corp. Freeport-McMoRan Copper & Gold B Focus Media Holding, Ltd. ADR

2.49 0.74 0.71

p r t

R Ssc Goverment Mm Gvxx R EOG Resources R NetApp, Inc. R Dollar General Corporation Y Precision Castparts Corp.

2.86 1.60 1.58 1.22 0.00

0.00 0.00 0.00 0.00 2.49

2012 Morningstar, Inc. All rights reserved. The information, data, analyses, and opinions contained herein (1) include the confidential and proprietary information of Morningstar, Inc., (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, Inc., (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Morningstar, Inc. shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstars current expectations about future events; therefore involves unknown risks and uncertain-ties that may cause Morningstars expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees nor should they be viewed as an assessment of a funds or the funds underlying securities creditworthiness.

Morningstar FundInvestor

June 2012

Morningstar Global Fund Report | Print Date: June 01, 2012 | FINRA Members: For internal use or client reporting purposes only.

Page 4 of 7

Laudus Growth Investors US Large Cap Gr LGILX Performance


A strong decade.
Growth Index through March 31, 2012. Its trailing 10-year returns land in the top 5% of large growth. Moreover, it's not a matter of just one or two good years. The fund's three-year returns have been in the top quartile in 78% of the rolling periods over the past 10 years while it spent no time in the bottom quartile over the rolling three-year periods. Another striking aspect is that the fund held up nicely in the 2008 bear market. It lost 38% that year, which was better than its peers and benchmark. It, however, was middling in the
2002 2003 2004 2005 2006 2007 2008 2009
Morningstar Category

Morningstar Analyst Rating

Category Index

US OE Large Growth

Russell 1000 Growth TR USD

Performance Pillar

Positive

May 03, 2012 | This fund has produced a brilliant 10 years worth of results under current management. Laudus (aka Schwab) hired the UBS team led by Lawrence Kemp in January 2002, and the results have been impressive. The fund's cumulative return since then is 97% compared with 53% for the Russell 1000
Morningstar Rating and Risk 05/31/12
Period Load-Adj Morningstar Morningstar Morningstar Return % Ret vs Cat Risk vs Cat Rating

snapback year of 2009. Many focused funds with moderate risk profiles produced similar results by carrying big cash stakes, but this fund stays fully invested. While results have been stellar, it wouldn't be realistic to expect any focused fund to be free from bouts of poor performance as a few top stocks could easily hold the fund back just as they have driven it to strong performance in the past.

2010

2011

2012
80 60 40 20 0 -20

History 05/31/12
12-Month Rolling Return % Fund Full Manager Change Partial Manager Change

3 Years 5 Years 10 Years Overall Rating

17.61 4.91 7.18

3-Year Return and Risk Analysis 05/31/12


Total Return % 21 19 17 15 13 Fund Category Index

-40

( * & & ( & * & ( & _


56 34 15 7 -28.61 29.71 11.98 14.36 -0.96 1.05 4.18 7.65 -0.72 -0.04 5.68 9.10 0.00 0.00 0.00 0.09 66 24 27 8 57 5.50 18.25 -37.74 49.58 14.46 -1.56 4.90 2.93 13.90 -1.07 -3.58 6.44 0.69 12.37 -2.25 0.19 0.13 0.00 0.56 0.10 21 1.19 3.65 -1.46 0.00 9.41 % 2.94 2.24 0.00 %

Quartile Rank in Cat Percentile Rank in Cat Total Return USD +/- Category +/- Index Income Return

15 16 17 Standard Deviation

18

19

20

21

Trailing Returns (Annualized) 05/31/12


Total Investor Ret % Ret % Category Index % Rank in Cat Cat Ret % Index Ret %

3-Year Performance Attribution 04/30/12


Attribution % 10 5 0 -5 -10 Fund Category Median Range (90% of Category)

Return/Risk Analysis 05/31/12


Fund

Standard Deviation Sharpe Ratio R-Squared Beta Alpha Maximum Drawdown

17.98 0.99 90.95 1.07 1.62

17.94 0.81 93.49 1.08 -1.79

16.47 1.03

1 Year 1.65 3 Years 17.61 5 Years 4.91 10 Years 7.18 Tenure 01/02 5.76 Inception 10/97 4.36

-3.18 13.95 0.25 4.03 2.37 2.88

1.49 16.89 2.01 4.72 3.38 3.10

Sector

Country

Stock

Fee

Total

Rolling-Returns Summary 05/31/12


Fund Category Index

Factor

Fund Category Percentile Median 95th

5th

79% 11 10 0

Max Drawdown (%) Peak Date Valley Date Max Drawdown (Months)

-45.34 11/07 02/09 16.00

-47.99 11/07 02/09 16.00

36-Month Rolling Periods 107 Observations, 8 Years The shading and percentages correspond to how often the funds returns landed in each category quartile.

Sector Allocation Country Allocation Stock Selection Fee Total Attribution

-0.72 3.76 -0.96 1.51

-1.17 -0.91 0.85

-3.53 -6.57 1.37

0.75 5.63 0.20

Performance Attribution Index Proxy: iShares Russell 1000 Growth Index

2012 Morningstar, Inc. All rights reserved. The information, data, analyses, and opinions contained herein (1) include the confidential and proprietary information of Morningstar, Inc., (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, Inc., (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Morningstar, Inc. shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstars current expectations about future events; therefore involves unknown risks and uncertain-ties that may cause Morningstars expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees nor should they be viewed as an assessment of a funds or the funds underlying securities creditworthiness.

Target-Date Funds Put to the Test


Morningstar Research | Josh Charlson

In 2011, target-date funds produced their worst absolute and relative returns since 2008 as measured against the Morningstar target-date category average returns. Those results were, of course, mild compared with the wreckage of the financial crisis. The worst-performing category, Target Date 2050 +, produced a 4.1% loss, compared with a 39% loss in 2008. The 201115 category finished slightly in the red, with a 0.27% loss versus a 27.7% loss in 2008. Still, 2011 was a tough year for most mutual funds. Most categories turned in absolute losses in 2011. Moreover, every target-date category average trailed two major broad U.S. benchmarks, the S&P 500 Index (2.11%) and the Barclays US Aggregate Bond Index (7.8%). Target-date categories also trailed the Morningstar moderate-allocation category (1.7%), a decent proxy for balanced funds. Target-date funds difficulties can be traced largely to investors behavior last year. Amid questions of economic stability in the United States and Europe, investors sought safety in government bonds and well-capitalized large-cap stocks, boosting indexes like the S& P 500 and Barclays Aggregate at the expense of riskier market segments. A glance at the returns of benchmark indexes shows how this played out: Moves into small-cap, non-U.S., or emergingmarkets stocks produced progressively greater losses. Thus, broad diversificationone of the highly promoted features of target-date funds and a key to strong returns in 2009 and 2010 proved to be detrimental in 2011. Target-date series with exposure to most anything beyond the basic asset classes lagged relative to benchmarks or less-adventuresome peers. In addition, active managers had great difficulty keeping up with indexes in 2011, and most target-date series remain actively managed.

Comparing Risk-Adjusted Returns Another way to evaluate performance is by comparing risk-adjusted returns. In its ratings of target-date series, Morningstar primarily evaluates series performance through Morningstar Risk-Adjusted Return, a return measure that penalizes funds for months of downside volatility. MRAR and other risk-adjusted return measures provide a more meaningful view of performance than straight total returns because they incorporate the effects of volatility.

In calculating its Performance score for the Morningstar Target-Date Series Ratings, Morningstar considers how much the MRAR for funds in a series deviates from peer averages, using a weighted average of three-year, five-year, and, if applicable, 10 -year figures. When evaluating these time periods, consider some caveats: 2008 has effectively dropped off of series three-year return histories while remaining on the record for five-year histories. As such, target-date series that lack a five-year history may have better Performance scores than might otherwise be expected. Of the 29 funds dated 2015, for example, 13 have only three-year histories to include. The bar graph on the facing page details how each 2015 funds weighted MRAR differs from the category MRAR. The 2015 funds are particularly relevant to the series broader risk profile because these shareholders are closest to retirement. Among 2015 funds, so-called to strategies, which generally feature lower equity allocations that terminate at retirement, produce most of the top MRARs. This is the case even though several of these series feature only three-year records that exclude 2008. Among the top-ranking to series are those from Russell, Allianz, American Century, and JP Morgan. Impressively, though, some series that feature more-aggressive glide paths, in particular T. Rowe Price, show favorable MRAR metrics. The bottom of the list tends to be populated by series with more-aggressive glide paths or asset mixes, as well as underperforming underlying holdings.

Morningstar FundInvestor

June 2012

Morningstar Risk-Adjusted Return Deviation From Fund Category


2015 Funds

Hartford Target Retirement 2015 R4 Russell LifePoints 2015 Strategy R1 Franklin Templeton 2015 Retire Trgt A American Century LIVESTRONG 2015 Instl Allianz Glbl Inv Solutions 2015 Inst JPMorgan SmartRetirement 2015 Instl BlackRock Lifecycle Prepared 2015 Inv A T. Rowe Price Retirement 2015 Fidelity Advisor Freedom 2015 I Vanguard Target Retirement 2015 Inv Principal LifeTime 2015 Instl GuideStone Funds MyDestination 2015 GS4 Fidelity Freedom 2015 American Funds Trgt Date Ret 2015 A JHancock2 Lifecycle 2015 1 Vantagepoint Milestone 2015 TIAA-CREF Lifecycle 2015 Instl Schwab Target 2015 Putnam RetirementReady 2015 Y Legg Mason Target Retirement 2015 I ING Solution 2015 Port I Wells Fargo Advantage DJ Target 2015 I DWS LifeCompass 2015 S AllianceBern 2015 Retirement Strat I Goldman Sachs Retirement Str 2015 Instl Columbia Retirement Plus 2015 Z Nationwide Destination 2015 Instl Svc ING Index Solution 2015 Port S Oppenheimer Transition 2015 A 4 3 2 1
Data as of Dec. 31, 2011. Source: Morningstar, Inc.

Among the 2040 funds, the range of equity allocations are more closely bunched, but the trends are similar. The two highest MRAR figures belong to Invesco and PIMCO, both series with unusual strategies that emphasize much greater allocations to commodities (among other differences). Other winners have more-conservative glide paths and asset mixes, although T. Rowe Price again appears among the top series. Those with the worst deviations from the average are largely similar to the names that appear in the group of 2015 funds, including Goldman Sachs, AllianceBernstein, and DWS. Poor underlying fund performance alongside aggressive positioning has made for unfavorable combinations in these cases.
Choose With Care The risk/return profiles of target-date series can vary dramatically from one target-date provider to another, and within funds of the same series. Investors should pay close attention to risk-adjusted return to better understand how their target-date series may behave in the future. At the same time, keep in mind the unusual nature of the financial markets over the past few years. While more-conservative target-date series have on average outperformed during this period, that pattern may not continue over longer, more-normalized periods. Select a target-date series whose philosophy and risk profile best matches your own risk preferences.
Contact Josh Charlson at josh.charlson@morningstar.com

10

Funds Under Fire: Keep Them or Dump Them?


The Contrarian | Russel Kinnel

Our Contrarian Approach I go against the grain to find overlooked funds that may be ready to rally.

Investors continue to be wary of U.S.-equity funds four years after the last bear market began. Overall, the asset class continues to be in net redemptions. And even outside U.S. equities, funds with a couple of weak years of returns are being redeemed. Looking at the funds with the heaviest year-to-date redemptions among the Morningstar FundInvestor 500, I see some where investors are wise to bail out and others where they may regret selling. From the list of the 15 most-redeemed funds, Ive selected three to hold and three to sell.
Good Funds Worth a Look Davis New York Venture NYVTX Its understandable that this fund would be redeemed as its five-year returns are crummy. A fondness for financials and a lack of Apple AAPL shares have made for a significant slump. However, the longterm results tell a different story. Chris Davis and Ken Feinberg have produced strong returns over the 10 - and 15 -year periods, and they havent changed their stripes. They still run a Warren Buffett strategy supported by deep research as they seek companies with good management and the ability to reinvest capital at a high rate of return. This fund and near-clone Selected American SLADX likely have better days ahead.

Fidelity Dividend Growth FDGFX Investors often underrate manager changes, and thats quite clearly the case here. Larry Rakers took the helm in 2008, and the fund has beaten the S& P 500 by a cumulative 40.6% to 29.8% in that time. Moreover, Rakers produced brilliant results at Fidelity Balanced FBALX before that. The fact that the fund struggled before he took over isnt really meaningful. Rakers eclectic style is very different from his predecessors mega-cap quality strategy. Rakers takes a value approach, but he tries to get Fidelity analysts best ideas into his wideranging portfolio. This is one of the best Fidelity fundsonly many investors havent figured it out yet. Funds to Avoid Fidelity Magellan FMAGX This funds manager change is less encouraging than Fidelity Dividend Growths. First, Jeff Feingolds record at his previous fund was good but not as good as Rakers. Second, hes moved up to a much larger fund, and we dont yet have a lot to go on in terms of strategy or returns since he took over in September 2011. Maybe hell have the right combination to turn Fidelity Magellan around, but its too early to get on board. Columbia Value & Restructuring UMBIX I dont know if David Williams retirement or the funds dismal 10.8% loss in 2011 has spurred redemptions, but its probably the right thing to do anyway. Williams built a brilliant record largely on his own with little help from analysts or comanagers. Guy Pope and J. Nicholas Smith were named comanagers in 2009, but they became lead managers only this April. Thus, the fund really has a clean slate, and management must prove itself. Fidelity Diversified International FDIVX This fund has suffered from asset bloat. Its strong return years are far in the past. The only positive is that it has been redeemed for a few years now and may be approaching a more manageable level. If this $23 billion fund were to shed a few billion more, it might be worth a look again.

Funds Under Fire


Fund Name YTD Flows USD Fund Size USD Manager Tenure Years (Longest) Morningstar Expense Analyst Rating Ratio %

Davis NY Venture A NYVTX Fidelity Diversified Intl FDIVX Fidelity Magellan FMAGX Columbia Val & Restrct UMBIX Fidelity Div Growth FDGFX Selected Arnerican Shrs SLADX
Data through April 2012.

-2,777,230,207 -2,544,580,539 -1,895,724,629 -1,660,755,362 -1,252,061,932 -377,841,450

22,232,642,388 20,549,097,921 14,535,177,656 3,019,901,557 7,459,287,168 5,686,123,017

16.67 11.17 0.75 3.33 3.75 17.50

0.89 0.90 0.60 0.94 0.93 0.61

Morningstar FundInvestor

June 2012

11

Old Dogs, New Tricks


Red Flags | Flynn Murphy

What is Red Flags? Red Flags is designed to alert you to funds hidden risks. Such risks can take many forms, including asset bloat, the departure of a solid manager, or a focus on an overhyped asset class. Not every fund featured in Red Flags is a sell, and in fact, some are good long-term holdings. But investors should be prepared for a potentially bumpier ride in the near future.

One of the trickier types of manager changes is one in which the new manager is experienced but is trying to run a different strategy for the first time. Success in one area doesnt always translate to another. If you own a fund in that situation, give it a long, hard look before you decide to hold on. When successful managers struggle in new territory, the consequences can include fund liquidation. Oppenheimer Champion Income OPCHX presents a cautionary tale. After the fund suffered a catastrophic 79% loss in 2008, Oppenheimer replaced its managers with the veteran team running Bronze-rated Oppenheimer Senior Floating Rate OOSAX. Led by Joseph Welsh, the new team took a purer approach to high-yield investing, buying only below-investmentgrade corporate bondsparticularly B and CCC rated issues. Welsh and his team of eight analysts specifically avoided stakes in mortgage-backed securities, which had plagued their predecessors. Welsh and company continued to produce strong results at their bank-loan charge, which sported a higher-quality portfolio. But Champion Incomes distinct high-yield profile proved its own challenge, as different factors can affect the performance of below-investmentgrade bonds. During the three years under Welsh and company through April 2012, Champion Income lagged 87% of its high-yield category peers and acted with more volatility, measured by standard deviation. On May 21, Oppenheimer signaled an end for Champion Income, announcing the lagging funds assets would be merged into multisector bond-fund Oppenheimer Global Strategic Income OPSIX. At Fidelity, its not uncommon to see portfolio managers running smaller, more narrowly focused industry funds get promoted to run diversified funds. For example, in January, Fidelity named Daniel Kelley, portfolio manager of the $220 million Fidelity Select Construction & Housing FSHOX,

to manage the $1.2 billion large-cap growth Fidelity Trend FTRNX. Its unlikely Kelley will make extensive changes to the portfolio, but he will employ a distinct approach from his predecessor. The funds sector weightings will remain in line with the Russell 1000 Growth Indexs, but Kelley will employ a valuation-conscious approach, adding high-quality stocks with solid balance sheets. Though Kelleys record at his previous fund is impressive, his lack of experience outside that narrow investment universe led us to assign a Negative rating to the fund. In January, Fidelity Select Banking FSRBX manager Vincent Montemaggiore was installed at the helm of Fidelity Overseas FOSFX, a diversified international fund. Breaking from his predecessors growth-at-a-reasonable-price approach, Montemaggiore will use quantitative screens focused on valuation and return on invested capital. He is working to make the fund less concentrated, too, bringing the top 10 holdings down to 18% of assets in March from 36% of assets in December. In April, Chris Lee, the portfolio manager of the $200 million Fidelity Select Consumer Finance FSLVX, was promoted to lead the $1.8 billion Fidelity Growth Strategies FDEGX. Its an open question how Lee and Montemaggiore do at these funds, but its probably not worth sticking around. Aster Investment Management faced a different challenge when founder Rick Aster died in February. Aster was lead manager at Meridian Growth MERDX since the funds inception. James England, portfolio manager of Meridian Value MVALX, was brought in to lead Meridian Growth. To assist England, Aster Investment Management rehired Larry Cordisco, who had helped run Meridian Value before leaving the firm in late 2011. The firm also retained William Tao, who had worked with Aster on Meridian Growth for nearly five years. Thus, there is an experienced team but one on unfamiliar ground with a growth fund. We rate the fund Neutral because of ongoing management contract negotiations and partly because of the uncertainty about managements ability to run a growth strategy.
Contact Flynn Murphy at flynn.murphy@morningstar.com

12

Europes Woes Weigh on Markets


Market Overview | Kailin Liu

Benchmark Performance
Total Return % Through 05-31-12
A N N U A L I Z E D

1Mo

YTD

3Yr

5Yr

10Yr

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

-7.4 -6.7 -6.7 -7.5 -7.3 -6.8 -7.8 -7.2 -6.9 -6.0 -2.6 -4.4 -6.5 -7.5 -6.7 -3.6 -12.2 -9.7 -4.3 -9.1 -2.8 -6.0 -6.5 -6.6

6.5 4.0 2.7 5.4 3.5 3.8 3.9 2.9 2.6 2.7 2.6 3.2 0.1 7.0 7.8 9.1 -7.8 -15.9 8.8 6.7 0.4 5.2 5.9 3.4

13.7 12.6 12.0 16.1 15.1 15.5 16.8 15.8 16.2 10.5 9.2 10.3 10.3 6.6 13.1 15.9 3.5 2.4 27.5 15.7 13.2 14.9 18.9 16.5

-0.2 -1.9 -3.5 -0.1 -1.3 -1.5 -0.6 -1.6 -1.4 -1.0 2.4 0.3 -4.7 -10.1 -6.9 3.7 -3.7 4.0 -1.7 2.1 -0.7 -0.9 1.7 -0.7

3.3 3.3 3.1 5.1 5.5 5.5 4.9 5.5 6.0 4.2 4.1 4.1 5.3 -0.2 7.8 6.3 8.1 11.3 9.4 5.2 7.4 4.1 7.2 5.9

Unsettling eurozone news about the Greek and Spanish crises and mixed U.S. economic indicators slowly dragged the markets down in May. The S& P 500 slipped 6% by month-end. Large caps fared slightly better than small caps, as the Russell 2000 lost 6.6% in the same period. The natural-resources fund category, which invests heavily in basic-materials stocks, lost 12.22% for the month. T. Rowe Price New Era PRNEX lost 13.3% in the month. Yet avoidance of basic-materials stocks did not protect diversified funds from other minefields in the market. Among mid-cap blend funds, Ariel Appreciation CAAPX and Westport Select Cap WPSRX had no assets in basic materials and still landed in the bottom quintile of their categories for the month. Meanwhile, both developed and emerging markets continued to suffer in May. The MSCI EAFE Index lost 11.4% for the month, while the MSCI Emerging Markets Index shed 11.4%. The markets in Europe, Latin America, Japan, and China were all hit hard. The Europe, Latin America, Japan, and China-region fund categories lost between 10% and 13% in May. The Latin America stock-fund category fared the worst of all fund categories with a 12.65% loss. A flight to quality spurred a Treasury rally. The muninational intermediate category gained 0.61% on average; intermediate-term bond funds were flat. PIMCO Total Return PTTRX gained 0.85%. Long government funds performed the best of all fund categories again in May with an average gain of 8.43%. Vanguard Long-Term Treasury VUSUX gained 7.8%.
Contact Kailin Liu at kailin.liu@morningstar.com

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 Latin American Stock World Stock MSCI EAFE MSCI World MSCI Emerging Markets MSCI Europe MSCI Latin America MSCI Pacific

-9.2 -10.6 -12.3 -10.6 -10.4 -11.0 -9.9 -11.3 0.0 -8.7 -11.5 -8.6 -11.7 -12.3 -13.5 -10.1

2.0 0.5 -1.4 -1.4 0.7 -4.2 3.5 0.6 0.0 1.1 -3.8 0.8 -1.1 -5.1 -5.8 -1.3

5.5 7.3 4.4 4.0 6.9 2.3 10.8 8.0 0.0 8.6 3.4 9.0 5.4 2.9 3.7 4.5

-4.0 -2.0 -7.9 -6.9 -4.9 -8.0 -4.2 -6.6 0.0 -3.8 -7.3 -4.1 -2.2 -8.4 -1.5 -5.1

5.7 11.1 4.6 3.5 4.4 3.7 8.5 6.3 0.0 4.4 4.0 4.0 10.1 3.9 14.9 4.2

High-Yield Bond Intermediate-Term Bond Muni National Long World Bond BarCap US Agg Bond TR USD BofAML US HY Master II TR BarCap Municipal TR USD

-1.5 0.5 1.0 -1.6 0.9 -1.2 0.8

4.7 3.1 5.1 1.6 2.3 4.9 3.8

14.6 8.5 8.0 7.0 7.1 16.6 7.3

4.8 5.5 4.9 5.7 6.7 7.4 5.9

7.1 4.9 4.6 6.4 5.7 8.8 5.4

Morningstar FundInvestor

June 2012

13

Bridgeway Index Fund and First Eagle Overseas Hold Up Well


Leaders & Laggards | Kailin Liu

such as AthenaHealth ATHN and Carters CRI have gained over 50% in the past 12 months. Laggards Longleaf Partners LLPFX This fund lost 12.45% in the trailing 12 months, compared with a 4.64% average loss for the category. Managers Mason Hawkins and Staley Cates have employed their deep-value, extremely concentrated, and low-turnover approach for over 20 years here. One bad stock pick in such a concentrated portfolio can wreak havoc on returns, as top holding Chesapeake Energys CHK whopping 49% loss has here. The stock has been hit by revelations about controversial CEO Aubrey McClendons leadership. Although Longleaf has been generally supportive of McClendon, it has pushed for a number of changes including a move to separate the CEO and chairman roles.
Third Avenue Value TAVFX This world-stock fund lost 19.43% in the past 12 months, landing in the bottom quintile of its category. A handful of Hong Kong real estate firms, such as Henderson Land Development HLDCY, dragged down fund performance as their stock prices tumbled. Manager Ian Lapey has trimmed the funds huge weighting in these firms in an effort to reduce risk. Turner Midcap Growth TMGFX This fund lost 15.27% in the trailing 12 months, below 95% of its category peers. Manager Chris McHugh, like other Turner managers, picks high-momentum stocks and is willing to pay up for them. However, McHugh keeps the portfolio in mid-cap holdings and typically doesnt stray much from the funds benchmark sector allocations. However, in the past 12 months, the fund has been overweight relative to peers in the technology sector, and to make matters worse, the picks havent worked out. For instance, Acme Packet APKT and SanDisk SND took double-digit tumbles during their tenure in the portfolio.

Ten Best-Performing Funds


Fund Name YTD Cat Rank %

Ariel Discovery Investor Artisan Growth Opportunit Artisan International Inv Artisan Mid Cap Inv Fairholme Fidelity Capital Apprecia GoodHaven PIMCO Investment Grade Co Touchstone Sands Capital Tweedy, Browne Global Val

1 1 1 1 1 1 1 1 1 1

Leaders Bridgeway Blue Chip 35 Index BRLIX This fund gained 3.25% in the trailing 12-month period, beating out 98% of its peer group. The fund tracks a custom index of the 35 largest U.S. companies by market cap, with a limit of four companies per sector. The portfolios market cap is several times larger than the category average, and this has helped the fund tremendously as mega-cap stocks handily outperformed those of more modest size. Blue-chip holdings like Apple AAPL, Visa V, and Microsoft MSFT turned in double-digit returns.
First Eagle Overseas SGOVX This fund lost 9.72% in the past 12 months, but this pales in comparison to its category average loss of 19.12%. The funds management team buys companies of any size that are cheap relative to the value of their underlying assets and are strong players in their industries. The fund also holds more bonds, gold, and cash than its typical peer. This defensive tilt protected the fund from the non-U.S. markets fall in the past 12 months. In addition, the managers enjoyed a few successful Japanese stock picks, like Japanese bicycle-part manufacturer Shimano SHM. Janus Venture JAVTX This fund lost 1.7% in the past 12 months, landing squarely in the top decile of its category. Managers Chad Meade and Brian Schaub look for small-cap funds with healthy growth potential but emphasize quality in the form of sustainable competitive advantages and business models that do not depend on economic conditions to generate cash. They also follow a disciplined valuation process. Meade and Schaub also use this process to evaluate which stocks offer the most reward with the least risk and invest more in those holdings. Several holdings

33

Ten Worst-Performing Funds


Fund Name YTD Cat Rank %

CGM Focus CGM Realty FPA Capital Longleaf Partners Interna Queens Road Small Cap Val Schneider Value Thornburg Value A Westport Select Cap R Fidelity Municipal Income Litman Gregory Masters Eq

99 99 99 99 99 99 99 99 98 98

14

Fund Manager Changes


Leuthold Asset Allocation LAALX Impact: Negative 05-05-12 Leuthold fund manager Andrew Engel died, the firm announced recently. Engel sat on the firms assetallocation committee, worked on the firms major trend index, and helped run Leuthold Core Investment LCORX and Leuthold Asset Allocation LAALX. Both of those funds had solid records during Engels tenure. Engels death comes nine months after Steve Leuthold, the firms founder, stepped back from his comanager roles at the funds. Veteran comanagers remain at both of Engels funds. | Our Take: Because a number of managers guided the funds, we are not changing our rating. Oakmark Select OAKLX Impact: Negative 07-30-12

Fund News
Vanguard Shuts High-Yield Fund Vanguard shut its High-Yield Corporate VWEHX to new investors because inflows have surged. Vanguard said it has seen $2 billion in inflows the past six months.

Comanager Henry Berghoef plans to retire at the end of July. Berghoef has assisted lead manager Bill Nygren, who will continue to run the fund, since 2000. He also served as director of U.S. research for Oakmarks parent company, Harris Associates, from 2003 through 2011. The firm plans to name Berghoefs successor by May 2013. | Our Take: We are keeping the fund rated Gold because Nygren has a strong record as lead manager. Parnassus Equity Income PRBLX Impact: Neutral 05-01-12

Benjamin Allen was named comanager of Parnassus Equity Income PRBLX on May 1. Allen has been director of research at the firm, so its fair to say hes had a hand in its past success. Parnassus says Allen and Todd Ahlsten will split coverage of the holdings but Ahlsten will retain final say over the portfolio. | Our Take: The change wont likely lead to a dramatic change, but well be monitoring the fund to see what impact it has. We have started the fund with a Bronze rating. T. Rowe Price Global Stock PRGSX T. Rowe Price Global Technology PRGTX Impact: Neutral 10-01-12

While issuance of high-yield securities remains strong (the first quarter of 2012 saw the highest amount on record), we remain sensitive to the potential liquidity challenges that can arise in the market, Vanguard said in a statement. Because of this potential, weve determined that limiting cash flow into the fund is in the best interest of its existing investors. This move will help the funds advisor, Wellington Management Company, continue to execute its high-quality approach to highyield investing. So, is this a sign of a top in high yield? Maybe, but it didnt signal disaster the last time. Vanguard previously closed the fund in June 2003. The fund lost about 5% of its value within six weeks thereafter, but the high-yield market rebounded pretty quickly so that the fund recouped those losses by the end of November. After that, the fund produced tepid but positive calendar-year returns of 8.5%, 2.8%, 8.2%, and 2%. Then came the 21.3% loss in 2008 and a strong rebound the following two years. The last time around, the fund was reopened about six months after closing.
Vanguard Cutting FeesAgain Vanguard also announced a number of small fee cuts at its funds. Vanguard Dividend Growths VDIGX expense ratio dropped from 0.34%, and the abovementioned High-Yield Corporates Investor share class cut expenses by 2 basis points, though the Admiral share class did not change.

Impact: Negative 10-01-12

Rob Gensler is going to retire at year-end and hand the reins of T. Rowe Price Global Stock PRGSX to David Eiswert on Oct. 1, 2012. Eiswert had run T. Rowe Price Global Technology and will turn that fund over to Joshua Spencer on June 1, 2012. | Our Take: This seems like a clear negative for the Global Tech fund as Spencer is a tech analyst without a fund track record. For Global Stock, it looks like a mixed bag. Eiswert has a strong four-year track record at the tech fund, but Gensler had a strong sector-fund record when he took over Global, and his tenure there has been disappointing. Gensler was much more of a trader and shortterm investor than most of his T. Rowe peers, so it will be interesting to see how Eiswert adapts to running a diversified fund. Vanguard Primecap VPMCX Impact: Negative 04-11-12

Primecap comanager Howard Schow died at the age of 84. Schow was a comanager on the three funds Primecap ran for Vanguard and three funds run under the Primecap Odyssey label. The assets that Schow managed will be distributed among the remaining members of the team who are highly experienced investors with excellent track records. | Our Take: Take a look at the record of Vanguard Primecap VPMCX and Vanguard Capital Opportunity VHCOX and youll see he made a lot of money for a lot of people. He didnt just do it by selecting good stocks, though. He was one of the leaders who built Primecap into a firm that attracted outstanding investors who wanted to make a career at the firm. This is probably the hardest thing to do in the investment world. On the practical side, this news doesnt change our thesis on the funds as Primecap has a deep team of managers and analysts supporting its funds. We will maintain the funds current ratings of Gold.

In addition, Vanguard has removed redemption fees at 33 funds because the firm decided the fees were

Morningstar FundInvestor

June 2012

15

not needed to discourage market-timers. A 2% redemption fee was removed from actively managed funds like Vanguard International Explorer VINEX and from index offerings like Vanguard Total World Stock VTWSX. A 1% redemption fee was removed from several sector funds, including Gold-rated Vanguard Energy VGENX and Silverrated Vanguard REIT Index VGSIX. Not all Vanguard funds dropped these types of fees, though. Vanguard FTSE All-World ex-US Small Cap Index VFSVX still charges purchase and redemption fees to offset the costs of investing in some illiquid foreign markets.
Correction In John Rekenthalers Morningstar Research article in the April issue, we had the allocation categorys investor returns and total returns flipped. The correct figures follow: p Aggressive Allocation: equal-weighted 10 -year return2.85%, asset-weighted return3.14% p Moderate Allocation: equal-weighted 10 -year return3.12%, asset-weighted return4.2% p Conservative Allocation: equal-weighted 10 -year return3.67%, asset-weighted return4.7%. At mfi.morningstar.com, we have replaced the PDF of this issue with one that has the correct figures. Leuthold Manager Engel Dies Leuthold Fund manager Andrew Engel died, the firm announced recently. Engel sat on the firms assetallocation committee, worked on the firms major trend index, and helped run Leuthold Core Investment LCORX and Leuthold Asset Allocation LAALX. Both of those funds had solid records during Engels tenure. Engels death comes nine months after Steve Leuthold, the firms founder, stepped back from his comanager roles at the funds. Veteran comanagers remain at both of Engels funds. Former Seligman Manager in InsiderTrading Case The amount of profits involved was rather small and the manager pretty obscure, but its still discouraging to see a fund manager caught up in an insider-trading scandal.

The SEC announced that former Seligman Communications and Information comanager Reema Shah pleaded guilty to securities fraud charges in the case and is barred permanently from the securities industry. The SEC says that Shah and a Yahoo executive swapped insider tips and that the Seligman fund she comanaged and others at the firm netted a $389,000 profit from trading based on insider information on Yahoo.
Artisan Goes Global (Again) Artisan Growth Opportunities ARTRX is getting a name and mandate change. The fund, which was launched in 2008, will be rebranded Artisan Global Opportunities to reflect its increasing international exposure. (Foreign stocks now account for 34% of assets, up from 11% in early 2009.) The name change also follows a broader trend at the firm. Artisan has launched two other global funds the past five years. New York Direct-Sold 529 Plan Drops Fees New Yorks direct-sold 529 plan just became the cheapest of any nationally available plan. New York announced all of the plans investment options dropped each of their total expense ratios to 0.17% from the previous price of 0.25%. Vanguard serves as the plans investment manager, and with the fees now at 0.17%, the plans expenses are roughly in line with those charged by the Gold-rated Vanguard Target Retirement Series of mutual funds. The 529 plan investment options have typically been more expensive than their mutual fund counterparts, such as target-date funds. The fee cuts were part of a new, seven-year contract agreement between Vanguard, Upromise Investments (the plans program manager), and the state of New York. The plan has over $11 billion in assets and is the largest direct-sold plan in the nation.

New York has a second advisor-sold 529 plan that has also undergone some changes. Last year, the state announced that JP Morgan Asset Management would take over as investment manager, replacing Columbia Management. On May 7, 2012, the assets in the plan officially transitioned to JP Morgan.

16

Jensens Evolving Pursuit of Growth


The FundInvestor Focused 10 | Greg Carlson

Jensen Quality Growth JENSX still lives up to its name, even though its peers have caught up to it on some fronts. The management team continues to fish from a fairly small pondcompanies that have generated returns on equity of at least 15% for each of the previous 10 years. From there, it seeks out firms with solid growth prospects that are trading at large discounts to their estimates of future cash flows.

bought in 2011s sharp stock market decline in the third quarter. That industry is dominated by Labcorp and Quest Diagnostics DGX. They thrive on scale, which leads to better access to hospitals and doctors offices and lower coststhe latter is vitally important in todays health-care environment, given declining Medicare reimbursements and reform legislation. Thus, Labcorp has a history of gobbling up smaller competitors and has taken on some leverage at times in order to pursue this strategy. While the funds managers generally prefer companies that generate organic growth, the advantages of scale in the testing industry combined with Labcorps strong track record as an acquisitor helped the stock clear the high hurdle to get into the concentrated portfolio of less than 30 holdings. Eric Schoenstein, Jensens director of research and a comanager of the fund since 2004, says Labcorp has been smart about its acquisitions, making sure that its targets are on the same testing platform as Labcorp to ensure a smooth transition. According to Schoenstein, management has also done a fine job of cutting costs after acquisitions, and the firm has effectively wielded the pricing power it has garnered from its size. He acknowledges the risk if the firm makes a poor purchase or two, but the management teams track record inspires confidence. And although the firm has lately taken on more debt, its still in solid financial shape according to Morningstars equity analysts. Finally, although the stock has risen significantly from its low in 2011s third quarter, its reasonably priced at 15 times earnings and 11 times its projected 2012 profits.
Shedding Slow Movers On the flip side, the fund has sold a couple of morestaid, highly defensive firms over the past year, including restaurant supplier Sysco SYY. That companys balance sheet is considered to be more solid than Labcorps, and it still meets the 15% ROE requirement, but the Jensen managers became disenchanted with its growth prospects. The company needs to see volume growth, according to Schoenstein, in order to enjoy the efficiencies afforded by its leading position within the restaurant

However, that pond has grown a bit and management responded by being even choosier. Corporate balance sheets have become quite strong and the economy has improved, so the universe of quality companies has grown larger. Indeed, the Jensen teams annual screening to create its pool of superior ROE generators has yielded a growing number of names in each of the past three years after a bearmarket decline. Thus, more funds own more companies that score well on at least some measures of quality. In addition, quality was the star of 2011, so some quality names are trading at higher prices than they had in years before. In response, Jensen has gotten even choosier about valuations. Recent purchases havent been quite as defensive and rock-solid financially as previous ones, and they have more room to grow in the margins departmentalthough they still qualify as high-quality fare. Indeed, 19 of the funds 29 holdings at the end of March 2012 were judged to have wide economic moats by Morningstars equity analysts, a rating given to just 10% of the companies that they cover. This means the analysts believe the firms have competitive advantages that are sustainable over long periods and should earn high returns on invested capital. One recent example of the funds more valuationsensitive buys is medical-testing firm Laboratory Corporation of America (Labcorp) LH, first

Morningstar FundInvestor

June 2012

17

The FundInvestor Focused 10


Fund Name Category Manager Name (Tenure) 5-Yr Total 5-Yr Cat Return % Rank % # of Stock Holdings Turn- Expense over % Ratio Top Three Holdings

Brown Capital Mgmt BCSIX Clipper CFIMX Fairholme FAIRX FMI Large Cap FMIHX FPA Crescent FPACX Jensen Quality Growth JENSX Longleaf Partners LLPFX Oakmark Select OAKLX Sequoia SEQUX
Data through May 31, 2012.

Small Growth Large Blend Large Value Large Blend Large Growth Large Blend Large Blend Large Blend

Management Team (19.92) Davis; Feinberg (6.42) Berkowitz (12.50) Management Team (10.50) Management Team (19.42) Hawkins; Cates (25.17) Frels; Henneman (12.50) Nygren; Berghoef (15.58) Goldfarb; Poppe (14.00)

7.66 -4.35 -0.80 1.63 3.25 1.14 -4.64 1.71 -1.17 4.06

1 89 15 4 5 35 90 4 34 1

42 26 13 28 43 29 24 46 20 37

21.00 15.00 43.95 28.00 32.00 7.00 23.55 2.78 16.00 3.00

1.29 0.75 1.02 0.97 1.25 0.92 0.91 0.72 1.07 1.03

Gen-Probe, Tyler Tech, Abaxis American Express, Oaktree, Costco AIG, AIA, Sears 3M, Sysco, Wal-Mart CVS Caremark, Aon, Wal-Mart P&G, Pepsi, Omnicom Chesapeake, Loews, DIRECTV Valspar, Pentair, 3M Discovery, TE Connectivity, Liberty Valeant Pharma, Berkshire Hathaway, TJX

Mod Allocation Romick (19.00)

Mairs & Power Growth MPGFX Large Blend

We shine the spotlight on 10 funds from the FundInvestor 500 that follow a focused, low-turnover strategy.

industry. It saw little volume growth in late 2010 and 2011, he says, and food cost inflation has instead been the companys main driver of growth. The managers didnt like that balance and sold the stock in 2011s third quarter, even though it had been a decent performer that year. Some of the firms recent buys are in strong financial shape but have nevertheless taken on debt because current interest rates are so low. One example is medical-products maker Becton Dickinson BDX, which was purchased in the first quarter of 2011. The management team believes its shares are currently cheap, so it has borrowed money to buy back stock. That might be a pretty risky strategy in other situations, but, given how cheap money is, the firms competitive advantages, and its modest valuation (12 times 2012 earnings), it appears to be a prudent bet.
Still Sturdy Its character has changed a bit lately, but its still a sturdy and very attractive long-term holding. True, in 2011s choppy market, it didnt hold up as well as one might expectit finished that year with a 1% loss, just 1.4 percentage points ahead of the large-growth category norm and 3.2 behind the S& P 500. (The fund usually shines in such markets.) But Schoenstein points out that when the market turned down in 2011, investors focused purely on slow-growing megacaps rather than what the firm deems quality growth companies. (The fund has never fixated on the

markets behemoths; its average market capitalization is often well below the group norm.) In 2012, it has performed like its old self. It trails its typical peer for the year to date through May 21, but its held up quite well as the market has retreated in the second quarter after a rally. Its long-term record is still impressive on a risk-adjusted basis. It has outpaced more than 80% of peers (and beaten the S& P 500 by an annualized 1.6 percentage points) over the trailing 15 years and suffered much less volatility.
A Shifting Management Team Like the portfolio, the management team has also slowly evolved. Two of the three managers who were either on the fund when it launched in late 1992 or joined a few months later (Robert Zagunis) have retired. And the next most-tenured manager, Bob Millen, retired in early 2011. The most experienced current manager other than Zagunis is Schoenstein, with an eight-year tenure. Robert McIvers been a manager for seven years, Kurt Havnaer for five, and Allen Bond and Kevin Walkush were promoted to manager positions a year ago.

Management has hired people well in advance of retirements, sometimes simply adding the right person even when departures were not imminent. Thus, were confident the original managers long-standing strategy and the firms distinctive culture have been preserved.
Contact Greg Carlson at greg_carlson@morningstar.com

18

Emerging-Markets Funds for the Cautious or Aggressive Investor


Tracking Morningstar Analyst Ratings | Russel Kinnel

debt rather than equities. By bond fund standards its high risk, but its clearly high reward, too.
Matthews Asian Growth & Income MACSX suffered a max drawdown of 38.1%, which is terrific by emerging-markets standards. The fund is about 80% stock; the rest is in convertible bonds, corporate bonds, government bonds, and preferred stocks. Even the equities it buys tend to be a tad less risky as management favors dividend-payers. Also of note: Matthews Asia Dividend MAPIX, which we havent rated but suffered a max drawdown of just 35%.

What Are Morningstar Analyst Ratings? Our ratings are chosen for longterm success. Analysts assess a funds competitive advantages by analyzing people, process, parent, performance, and price. They do rigorous analysis and then submit their ratings to a committee that vets their work for thoroughness and consistency.

Emerging markets are an intriguing challenge for managers and fund investors alike. Today these markets offer more than a way to add some zip to your portfolio. They also offer a way to escape the debt-burdened economies and the brunt of a possible Greek exit from the euro. Thus, they may deserve a bigger part of your portfolio. As emerging markets have gotten more sophisticated, a greater variety of strategies and approaches are now available in mutual fund form. There are bond funds in local-currency debt as well as the longer-standing dollar-denominated debt. There also are a significant amount of convertibles and dividend-paying stocks, and funds that invest in those securities, too. You now have almost as much variety in emergingmarkets funds as you do among offerings that focus on the developed world, and that can help you to round out your portfolio without driving up risk too far. You can choose a more aggressive fund but make it a small part of your portfolio, or you can have a bigger weighting in a lower-risk fund. You can even have some of both in order to further diversify your holdings. With that in mind, Ive pulled the Silver- and Goldrated emerging-markets funds in the Morningstar 500 and ranked them by their biggest loss over any time period. We call it the maximum drawdown which essentially tells you the worst loss you could have suffered if youd bought at the top and sold at the bottom.
Lower Risk PIMCO Emerging Markets Local Bond PELBX had a worst loss of 25%. The appeal of this Gold-rated fund is clear. You diversify away from the dollar and euro and do so in a tamer format because you own

Silver-rated Fidelity New Markets Income FNMIX invests mostly in dollar-denominated bonds, but it has still done a good job on risk. Manager John Carlsons max drawdown was 39.6% because he follows a cautious strategy of investing in the safest bets and trimming areas vulnerable to short-term problems.
Higher Risk Vanguard Emerging Markets Index VEMAX is Silver-rated for its low cost and quite broad exposure to emerging-markets stocks. However, like all index funds it is fully invested and that exposes it to shortterm pain. Hence this funds max drawdown of 62.65%. The funds diversification helps trim losses a bit, but when emerging-markets equities sell off its often en masse and this fund pays the price. Even so, the fund has produced strong returns over the long haul.

Silver-rated Matthews India Investor MINDX shed 69.1% at worst. Matthews does a good job of stock-picking and even avoids some of the higher-risk stocks. Yet theres only so far you can go with a single-country emerging-markets fund. Clearly, this is a fund you limit to 5% or less of your portfolio. Matthews Pacific Tiger MAPTX is a brilliant play on Asia given Matthews depth and experience there. But take note of its 69.2% max drawdown. Again, long-term returns here are awesome, but if you plan on investing in this one for less than 10 years, youre in the wrong fund.

Morningstar FundInvestor

June 2012

19

Tracking Gold-Rated Funds


Asset Group
Trailing 10 Years Batting Average

% Picks in Top Quartile

Trailing 5 Years Batting Average

% Picks in Top Quartile

Trailing 3 Years Batting Average

% Picks in Top Quartile

Balanced International Stock Municipal Bond Taxable Bond U.S. Stock


Data through May 31, 2012.

90.82 69.77 92.89 84.03 66.88

54.3% 44.4% 71.4% 65.3% 38.6%

86.08 64.05 89.62 89.44 64.61

44.8% 20.0% 65.0% 57.9% 27.9%

87.16 58.61 43.52 62.98 61.25

50.0% 29.8% 22.2% 45.7% 40.6%

Silver or Gold Emerging-Markets Funds


Fidelity New Markets Income FNMIX | QQQQ |
32000

Matthews Asian Growth & Inc Investor MACSX | QQQQQ |

Growth of $10,000 (06-2002 to 05-2012)

p Fund Return (%)

200.45

42000

Growth of $10,000 (06-2002 to 05-2012) 31,500

p Fund Return (%)

196.88
179.46

24000 24,000 16000 8000 0

p Category Return (%) Process

152.55 31500

p Category Return (%) Process Performance People Parent Price 04 05 06 07 08 09 10 11

16,000 8,000 03 04 05 06 07 08 09 10 11

Performance People Parent Price

Positive 21000 21,000 Positive Positive 10500 10,500 Neutral Positive


0

Positive Positive Positive Positive Positive

03

Matthews India Investor MINDX | QQQQ |


30000

Matthews Pacific Tiger Investor MAPTX | QQQQ |

Growth of $10,000 (11-2005 to 05-2012)

p Fund Return (%) p Category Return (%) Process

68.03

44000

Growth of $10,000 (06-2002 to 05-2012) 33,000

p Fund Return (%)

250.53
179.46

22500 22,500 15000 7500 0

27.50 33000

p Category Return (%) Process Performance People Parent Price 04 05 06 07 08 09 10 11

15,000 7,500 06 07 08 09 10 11 12

Performance People Parent Price

Positive 22000 22,000 Positive Positive 11000 11,000 Positive Positive


0

Positive Positive Positive Positive Positive

03

PIMCO Emerging Local Bond Instl PELBX | QQ |


18000

Vanguard Emerging Mkts Stock Idx Adm VEMAX | QQQQ |

Growth of $10,000 (01-2007 to 05-2012)

p Fund Return (%) p Category Return (%) Process

51.08

22000

Growth of $10,000 (07-2006 to 05-2012) 16,500

p Fund Return (%) p Category Return (%) Process Performance People Parent Price

36.16
27.15

13500 13,500 9000 4500 0

33.67 16500

9,000 4,500 07 08 09 10 11 12

Performance People Parent Price

Positive 11000 11,000 Neutral Positive 5500 5,500 Neutral Positive


0

Positive Neutral Neutral Positive Positive

07

08

09

10

11

12

Return Data through May 31, 2012.

20

Vanguards Managed Payout Funds


Income Strategist | Dan Culloton

Vanguards Managed Payout Funds may not be the perfect income-producing solutions, but they can be good ones. The three fundsVanguard Managed Payout Growth Focus VPGFX, Growth & Distribution Focus VPGDX, and Distribution Focus VPDFX launched into the maw of 2008s vicious bear market. Losses quickly forced them to reduce their monthly payments and tap shareholders principal to fund payouts. That unpleasant debut kept investors away. Since then, however, the funds results and payouts have recovered, lending credence to Vanguards claim that the endowmentlike offerings and their distribution methods were built to last. These funds try to turn savings into income streams that wont dry up. Theyre among the cheapest of a subset of monthly payment funds launched in recent years. Vanguards funds distinguish themselves by trying to invest like miniendowments to support their disbursements without depleting principal. Rather than piling into higher-yielding securities and letting shareholders live off the distributions, these use Vanguard funds (and some derivatives for commodities exposure) to implement an active asset-allocation strategy that aims to make shareholders money last while fueling monthly payouts. Growth Focus targets 3% of a hypothetical three-year account value, Growth & Distribution 5%, and Distribution 7%. As funds of funds they use highly rated funds, such as Vanguard Total Stock Market Index VTSAX, Vanguard Total Bond Market Index VBTLX, Vanguard Total International Stock Index VTIAX, and REIT indexes, to get asset-class exposure. The investment committee tweaks the funds allocations based on the managers long-term outlook but does not try to time the market. Overall, the committee, led by firm CIO Gus Sauter, has been slightly

contrarian and opportunistic. For example, it added corporate-bond exposure via Vanguard Intermediate-Term Investment-Grade VFICX during the financial crisis and held on for three years. More recently, the relatively more bond-oriented Distribution Focus fund has avoided Treasury InflationProtected Securities because their real yields dont look promising. Instead of owning Vanguard InflationProtected Securities, the Distribution Focus fund has about twice as much as its benchmark suggests in Vanguard Market Neutral VMNIX, which tries to generate returns that beat the three-month U.S. Treasury bill with low correlations with other markets. The funds monthly payouts may catch the eye of investors eager to live off their nest eggs. But note the dollar amounts of the funds distributions will fluctuate year to year with performance, and the fund can use capital gains, income, and return of capital to fund payouts. The funds payout rule tries to control principal erosion and simplify the task of adjusting withdrawal rates to market conditions by tying monthly payment size to performance. These funds wont magically transform a small balance into an income stream you can live off indefinitely. A minimum $25,000 investment in the Growth & Distribution fund, for instance, currently generates payments of less than $100 per month according to Vanguards online calculator. The funds work best for those who already have amassed significant savings. Note that these funds arent annuities. They can lose money, and their payments can vary from year to year based on their trailing three-year results. The funds also have different risk profiles. Growth Focus is the most aggressive and offers the best chance to generate inflation-beating payment growth, but also the smallest payout rate and most volatility. Growth & Distribution is the middle-of-the-road fund, and Distribution Focus offers the highest payout rate but smallest odds of beating inflation. So far, each of the funds has been more volatile than rival payout offerings, but theyve beaten their internal benchmarks since inception and have accrued more gains to fund their payments. There are no guarantees here, but they can be useful tools.
Contact Dan Culloton at daniel.culloton@morningstar.com

Morningstar FundInvestor

June 2012

21

Bond-Market Snapshot
Treasury Yield Curve (%)
Yield to maturity of current bills, notes, and bonds 6.00 5.00 4.00 3.00 2.00 1.00 Maturity 1 mo 3 6 1 yr 2 3 5 7 10 20 30

p Current (05-31-12)

p One Year Ago (05-31-11)

Interest-Rate Review

Fear spurred a flight to safety in May amid signs of a deteriorating financial situation in the eurozone and weak economic data at home and abroad. Long Treasuries were the markets biggest winners, gaining 7.4% for the month as the yield on the long bond dropped half a percent to end the month below 2.7%. Intermediate Treasuries came in second place, inching up 2.8% as the 10-year dipped below 1.6% for the first time ever. Treasury Inflation-Protected Securities also benefitted from the flight to quality, gaining 1.7%. Most muni indexes posted modest gains, with long munis adding the most at 1.4%. Meanwhile, the more credit-sensitive areas of the market lagged. The high-yield corporate indexes lost roughly 1.3%, while the commercial mortgage-backed securities sector gave back 0.2%.

Treasury and Municipal-Bond Yields


p Vanguard Interm-Term Tax-Exempt p Vanguard Interm-Term U.S. Treasury
7.00 6.50 5.00 4.50 3.00 1.50 0.00 Attractive 98 99 00 01 02 03 04 05 06 07 08 09 10 11 -1.83 04-30-12 Last Month (04-30-12) A Year Ago (05-31-11) -1.07 -1.24
Municipal-Bond Spread Snapshot

Unattractive 1.73

May 31, 2012 High Low Average

-1.09
1.73 -1.83 0.26

High-Yield and Treasury-Bond Yields


p Vanguard High-Yield Corporate p Vanguard Interm-Term U.S. Treasury
15.00 12.00 9.00 6.00 3.00 0 Unattractive 2.01 98 99 00 01 02 03 04 05 06 07 08 09 10 11 04-30-12
High-Yield Bond Spread Snapshot

Attractive 10.71

May 31, 2012 High Low Average Last Month (04-30-12) A Year Ago (05-31-11)

5.02
10.71 2.01 4.11 4.74 4.02

Data as of May 31, 2012. Yield Spread: The difference between yields on differing debt instruments, calculated by deducting the yield of one instrument from another. The higher the yield spread, the greater the difference between the yields offered by each instrument. For municipal bonds, a smaller spread is attractive because munis typically pay smaller yields than Treasuries. For high-yield bonds, a wider spread is more attractive because junk bonds typically pay higher yields than Treasuries.

22

How Do You Like Your Fund Reports?


Changes to the 500 | Russel Kinnel

Westwood LargeCap Value Institutional Goes Out To make room, Im dropping Westwood LargeCap Value Institutional WHGLX. The fund has a small asset base, and it is now difficult for individual investors to access. Moreover, longtime lead manager Susan Byrne has stepped down from the fund.

What is Morningstar FundInvestor 500? The Morningstar FundInvestor 500 features the industrys best and most notable funds. Use the list to get new investment ideas and track the funds you already own. FundInvestor subscribers have access to one-page monthly reports on all 500 funds on mfi.morningstar.com. Just type in the name or ticker of the fund in the search box.

Weve been running four pages of our global fund reports in each issue on Pages 4 8 for a few months now. Id like your feedback. Do you like the depth of having four pages on one fund, or would you rather have four one-page reports (like the one on the facing page) so that you can cover more funds each month? You can gain access to all 500 one-page reports on our website (mfi.morningstar.com) each month, but I know that some readers like to do all their research on paper rather than the Internet. Please let me know which you prefer. You can send me an email at russel_kinnel@morningstar.com with the words Fund Report in the subject. Or you can send me a letter to this address: Morningstar Inc., 22 W. Washington, Chicago, IL 60602.
Columbia Dividend Income Joins 500 Im adding Columbia Dividend Income GSFTX to the Morningstar 500. The fund has been a strong performer employing a rather straightforward dividend strategy. The Silver-rated fund aims for stocks with growing dividends and strong free cash flow. The funds strong long-term performance owes a lot to outperformance in down years such as 2008. It tends to lag in big rallies.

Summary of Changes
Add Drop

Columbia Dividend Income


Analyst Rating Upgraded

Westwood LgCap Val Institutional


From To

Columbia Acorn International Z


Analyst Rating Downgraded

From

To

Vanguard International Explr Inv

New Morningstar Analyst Ratings


Fund Rating

Allianz RCM Technology Instl American Funds Tax-Exempt Bond A Artisan Small Cap Investor ASTON/Fairpointe Mid Cap N Bridgeway Blue Chip 35 Index Bridgeway Ultra-Small Company Market Buffalo Small Cap Fidelity Stock Selector Sm Cp Laudus Growth Investors US Large Cap Gr Leuthold Asset Allocation Retail MainStay MAP I Matthews India Investor Neuberger Berman Large Cap Value Inv Rainier Small/Mid Cap Equity T. Rowe Price Media & Telecommunications T. Rowe Price New Era Touchstone Sands Capital Select Growth Z Wells Fargo Advantage S/T Muni Bd Inv

The fund has four comanagers; two have been with the fund for a long time, and two are recent additions. Scott Davis became a comanager in 2001, and Dick Dahlberg, an MFS veteran, has been on the fund since 2003. Mike Barclay and Putnam veteran David King were named comanagers in 2011. For more, see the facing page.

Morningstar FundInvestor

June 2012

23

24

Historical Performance
Morningstar Rating vs. Category 5Best Total Return % 05-31-12 YTD 1 Yr Total Return % Category Rank

Historical Risk
Standard Yield DeviaANNUALIZED 1Best, 100Worst 3 Yr 5 Yr 10 Yr YTD 1 Yr 3 Yr 5 Yr 10 Yr % tion Risk Relative to Category

Morningstar 500
Domestic Equity
Large Growth Amana Trust Growth AMAGX American Century Growth Inv TWCGX American Century Ultra Inv TWCUX American Funds AMCAP A AMCPX American Funds Growth Fund of Amer A AGTHX American Funds New Economy A ANEFX ASTON/Montag & Caldwell Growth N MCGFX Brandywine Blue BLUEX Calamos Growth A CVGRX CGM Focus CGMFX Chase Growth N CHASX Fidelity FFIDX Fidelity Blue Chip Growth FBGRX Fidelity Contrafund FCNTX Fidelity Export & Multinational FEXPX Fidelity Growth Company FDGRX Fidelity Growth Discovery FDSVX Fidelity Independence FDFFX Fidelity Magellan FMAGX Fidelity New Millennium FMILX Harbor Capital Appreciation Instl HACAX Janus Growth & Income T JAGIX Janus Research T JAMRX Janus T JANSX Janus Twenty T JAVLX Jensen Quality Growth J JENSX Laudus Growth Investors US Large Cap Gr LGILX Legg Mason ClearBridge Aggressive Gr A SHRAX Litman Gregory Masters Equity Instl MSEFX Litman Gregory Masters Focused Opp Instl MSFOX LKCM Equity Instl LKEQX Madison Mosaic Investors Y MINVX Marsico Focus MFOCX Marsico Growth MGRIX Morgan Stanley Focus Growth A AMOAX PRIMECAP Odyssey Growth POGRX PRIMECAP Odyssey Stock POSKX RS Capital Appreciation A RCAPX T. Rowe Price Blue Chip Growth TRBCX T. Rowe Price Growth & Income PRGIX T. Rowe Price Growth Stock PRGFX T. Rowe Price New America Growth PRWAX Touchstone Sands Capital Select Growth Z PTSGX USAA Aggressive Growth USAUX Vanguard Capital Opportunity Inv VHCOX Vanguard FTSE Social Index Inv VFTSX Vanguard Growth Equity Inv VGEQX Vanguard Growth Index Adm VIGAX Russell 1000 Growth Index S&P 500 Index
Legend Red # Lowest return in group Green # Highest return in group Italic # Extended performance Morningstar Analyst Rating

(R)

QQQQQ QQQQ QQQQ QQQ QQQ ] QQQ ] QQQQ QQ QQ Q QQQQ QQQ QQQQ ] QQQQQ QQQ QQQQQ QQQQ QQ Q QQQQ QQQQ [ QQ QQQQ QQ QQQQ QQQ QQQQQ ] QQQ QQ QQQ [ QQQQ QQQ QQQ QQQ QQQ QQQ ] QQQQ QQ QQQQ QQQ QQQQ QQQQ QQQQQ QQQ ] QQQQ Q QQQ QQQQ

6.5 -3.3 4.5 7.5 6.3 5.5 6.5 -2.8 -0.5 -0.8 -1.5 -4.8

13.7 12.7 15.6 15.9 14.3 10.9 12.6 11.8 9.2 12.8 -0.3 11.4 12.3 17.6 15.7 11.9 19.0 17.7 14.2 8.4 16.8 15.1 10.0 15.1 11.8 9.5 13.2 17.6 17.0 13.1 15.6 15.0 12.3 14.9 15.5 19.2 14.5 13.9 11.7 17.0 13.3 17.1 14.7 23.8 13.1 10.8 14.1 16.6 17.1

-0.2 2.4 2.8 2.1 0.7 -1.1 0.1 2.8 -5.4 -1.0 -5.4 0.6 -0.9 3.0 2.4 -1.6 4.1 1.3 -0.3 -4.1 2.4 2.9 -2.4 0.8 -0.8 2.0 1.1 4.9 -0.5 -3.4 -1.5 1.7 -0.4 1.1 0.2 2.6 0.9 0.4 -1.0 1.8 -0.7 1.4 3.1 6.6 -0.5 -0.1 -3.5 0.1 2.2

3.3 8.8 4.8 3.0 4.7 5.1 5.7 3.7 3.0 5.1 5.5 3.8 4.0 4.1 7.5 5.2 7.8 4.8 4.4 1.4 6.3 4.8 3.2 5.6 2.9 7.6 3.4 7.2 4.7 3.1 5.2 2.7 4.3 4.2 4.5 2.8 5.1 3.6 5.7 6.0 7.6 3.3 7.3 2.2 3.8 4.8 4.7 4.1

79 37 54 68 52 19 74 75 82 99 13 51 31 20 62 5 24 15 48 80 12 66 62 29 3 88 10 54 98 79 81 89 23 20 45 87 94 94 5 77 3 84 1 59 94 81 13 34

51 28 31 38 66 70 10 90 97 99 13 63 54 11 60 28 32 93 95 45 15 66 69 56 26 69 13 53 96 24 30 37 13 18 84 86 59 48 5 54 8 60 1 61 94 54 12 11

65 23 21 42 86 65 76 96 63 100 80 69 10 22 75 6 9 43 97 15 31 93 31 75 95 58 10 13 60 23 32 70 34 25 6 39 49 76 13 56 12 37 2 59 87 45 17 12

17 13 20 41 71 52 12 98 69 99 45 68 10 17 80 6 33 57 97 17 12 88 40 66 23

1 28 73 30 22 14 57 73 22 17 54 48 44 3 21 1 27 38 97 9 28 70 15 76 2

0.0 0.5 0.0 0.4 0.7 0.5 0.5 0.0 0.0 0.0 0.0 0.7 0.1 0.1 0.9 0.1 0.2 0.3 0.7 0.4 0.1 1.0 0.6 0.4 0.1 1.1 0.0 0.0 0.0 0.5 0.6 0.9 0.0 0.0 0.0 0.4 1.2 0.1 0.1 1.2 0.0 0.2 0.0 0.0 0.5

17.9 (93) 14.67 17.01 17.84 16.64 16.66 17.60 13.70 19.06 19.43 26.31 14.87 16.89 19.47 14.92 16.97 18.86 18.89 23.39 19.30 17.62 17.71 18.24 17.73 16.98 19.69 14.92 17.98 20.30 18.50 16.37 16.26 14.79 18.84 18.80 19.92 18.73 15.55 16.95 18.35 15.79 18.51 17.25 18.96 18.94 19.74 (96) (96) (95) (98) (97) (93) (96) (91) (88) (82) (91) (97) (94) (93) (97) (92) (95) (90) (95) (94) (91) (94) (95) (94) (91) (93) (91) (88) (92) (91) (97) (96) (94) (94) (81) (90) (97) (95) (94) (99) (94) (97) (87) (95) (93)

Low Avg Avg -Avg -Avg Avg Low +Avg +Avg High Low -Avg +Avg Low -Avg +Avg +Avg High +Avg Avg Avg Avg Avg -Avg +Avg Low Avg High +Avg -Avg -Avg Low +Avg +Avg High +Avg Low -Avg +Avg -Avg +Avg Avg +Avg +Avg +Avg Avg -Avg Avg

8.5 -5.1 5.0 2.4 5.0 -9.6 4.0 -12.3 0.5 -19.8 9.0 6.5 7.8 8.4 5.8 1.6 -4.3 -3.3 2.1 -4.0

10.2 -0.5 8.1 -0.9 8.7 -10.1 6.7 -10.7 4.4 -2.2 9.1 5.5 5.8 7.8 11.5 1.0 -4.8 -5.1 -3.5 -0.3

3.4 -5.0 9.4 1.7 6.3 -3.1 1.1 -11.7 4.5 -0.1 4.2 3.1 8.2 8.4 6.9 3.5 2.4 2.3 10.2 4.7 -0.8 -1.4 1.6 0.6 -8.0 -8.6 -3.9 -2.4 4.2 -3.2

35 66 3 4 59 31 94 72 79 27 58 36 49 15 38 47 68 25 65 33 9 1 61 55 95 51 20 22 81 40 44 36 80 22 58 15 12 2 68 4 89 51 27

10.9 3.0 3.8 -4.0 13.8 8.0 6.0 -4.1 2.3 -10.6 4.3 9.1 7.6 -3.3 1.8 2.0

1.2 17.11 (97) 0.4 16.47 (96) 1.2 17.00 (97)

7.2 1.5 5.2 -0.4 E New this month


][ Increase/decrease in rating NR No Morningstar Rating; fund less than three years old.

16.9 2.0 14.9 -0.9

Current Portfolio Style


Current Equity Price/ Price/ Style Earn Book Box Ratio Ratio Average Market Cap Top Three Sectors ($Mil) (% of Stock)

Costs
Recent Composition Total # of Turn- (% of Assets) Sales Hold- over Charge Expense ings % Cash Stock Bond Other Foreign % Ratio %

Operations
Total Assets ($Mil)

25

NAV ($)

Portfolio Manager (Tenure Years)

AMAGX TWCGX TWCUX AMCPX AGTHX ANEFX MCGFX BLUEX CVGRX CGMFX CHASX FFIDX FBGRX FCNTX FEXPX FDGRX FDSVX FDFFX FMAGX FMILX HACAX JAGIX JAMRX JANSX JAVLX JENSX LGILX SHRAX MSEFX MSFOX LKEQX MINVX MFOCX MGRIX AMOAX POGRX POSKX RCAPX TRBCX PRGIX PRGFX PRWAX PTSGX USAUX VHCOX VFTSX VGEQX VIGAX 7 7 7 7 7 7 7 7 7 1 7 7 7 7 7 7 7 7 7 4 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 4 7 7

14.9 15.4 16.3 16.4 15.1 14.8 14.7 16.8 15.1 18.0 10.2 16.5 14.2 16.4 17.0 14.5 17.7 18.4 14.3 14.2 14.5 20.0 14.8 16.1 17.1 16.8 16.2 17.6 15.2 14.2 13.9 15.7 14.5 17.3 17.2 23.0 17.3 14.7 15.7 18.5 14.5 19.6 17.1 22.0 15.9 15.6 14.1 17.9 16.2 14.3

2.8 3.0 3.4 3.2 2.3 2.3 1.9 3.5 2.4 3.2 1.3 3.9 2.3 3.0 2.9 2.5 3.4 3.4 2.7 2.2 2.0 3.6 2.5 2.7 3.2 3.2 3.7 3.4 2.2 1.7 1.6 2.4 2.2 3.6 3.7 2.6 2.8 2.6 2.1 3.3 2.3 3.6 2.7 4.6 3.1 2.3 1.9 3.2 3.4 1.9

33,361 a 27 32,693 49,676 48,586 27,158 40,671 19,865 66,988 30,233 26,184 19,542 36,093 43,253 35,404 43,257 38,088 26,031 24,006 18,250 36,740 14,006 41,663 36,096 29,594 33,631 49,402 33,857 30,262 18,883 14,382 52,829 22,980 45,455 50,955 46,323 37,577 13,062 31,280 40,324 46,280 40,593 42,517 18,191 44,712 40,994 17,093 a a a a a a s a a p a a a a a a a t a d a t a a t p a d y y a y t t a d d y a d a a a a a 40 31 32 22 21 25 24 35 41 23 24 22 33 28 24 34 34 26 23 17 32 22 28 28 29 29 31 35 24 33 19 21 27 33 43 40 28 23 28 14 32 30 36 38 35

t 16 d t t d t d t t t y t d t t d t t a t a t a t t a d t o a a p s a a p a a a t p t p t t d 16 15 15 20 15 16 20 28 12 21 21 14 21 22 15 17 16 22 15 16 26 15 21 21 28 22 20 18 18 17 15 17 21 20 17 27 22 19 25 14 23 23 25 14 30

p 13 p s d p d t a o d t d t s y s d p d y y d y p d d a s a p s d p y p t p p p p y p d d p p 13 12 12 12 13 16 19 13 11 20 13 13 12 13 15 15 15 11 14 15 12 14 13 12 16 21 10 15 15 15 15 16 13 15 15 9 14 19 16 14 16 16 13 12 14

74 125 83 223 424

75 5 79 13 31 34

3 8 0 0 12 5

96 92 99 99 88 92

0 0 0 0 0 0 0 0 0 0 -5 0 0 0 0 0 0 0 0 0 1 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 1 1 0 3 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 0 2 1 0 0 0 0 0 0

7 18 2 7 4 16 32 2 6 16 13 2 11 9 12 10 9 12 12 7 9 12 9 18 16 17 0 4 10 13 21 1 7 3 8 20 9 13 7 3 4 5 5 3 3 13 NL Clsd NL 5.75 5.75 5.75 NL NL 4.75 NL NL NL NL NL NL Clsd NL NL NL NL NL NL NL NL Clsd NL NL 5.75 NL NL NL NL NL NL 5.25 NL NL 4.75 NL NL NL NL NL NL Clsd

1.23 1.14 0.98 0.99 0.73 0.68 0.85 1.06 1.09 1.26 1.05 1.24 0.58 0.92 0.81 0.83 0.84 0.62 0.70 0.53 0.99 0.66 0.90 0.87 0.89 0.93 0.92 0.78 1.28 1.26 1.34 0.80 0.99 1.33 1.33 0.96 0.66 0.66 1.25 0.77 0.71 0.70 0.81 1.42 1.02 0.48

1,595

Kaiser/Salam (18.3/4.4) LeGard/Woodhams (13.2/14.7) Lee/Li (3.5/3.5) Management Team Management Team Management Team Ronald Canakaris (17.6) Management Team Management Team G. Heebner (14.8) Management Team John D. Avery (10.3) Sonu Kalra (2.9) William Danoff (21.7) Heather Carrillo (2.3) Steven Wymer (15.4) Jason Weiner (5.3) Robert Bertelson (5.6) Jeffrey S. Feingold (0.7) John Roth (5.9) Spiros Segalas (22.1) Marc Pinto (4.6) James Goff (6.3) Coleman/Wilson (4.6/1.1) Ron Sachs (4.4) Management Team Lawrence Kemp (10.4) Bauman/Freeman (3.1/28.6) Management Team Management Team Management Team Halford/Sekelsky (2.1/22.4) Management Team Management Team Management Team Management Team Management Team Management Team Larry Puglia (18.9) Thomas Huber (5.3) Robert Bartolo (4.6) Joseph Milano (9.9) Frank Sands, Jr. (11.8) Management Team Management Team Christine Franquin (0.5) Brewis/McCarragher (4.2/3.4) Gerard OReilly (17.4)

25.32 2,144 26.40 8,522 24.37 5,955 19.86 24,818 30.59 126,214 25.79 24.04 24.14 48.24 25.78 18.70 33.17 45.72 73.10 21.88 89.16 14.77 23.53 67.08 30.14 40.27 31.35 29.73 29.44 56.94 27.33 13.61 116.78 12.56 10.42 15.99 16.90 19.05 20.78 35.96 15.46 14.62 21.79 42.59 20.80 35.31 33.02 11.60 34.11 30.18 7,694 3,610 931 7,785 1,442 147 5,020 14,303 79,493 1,936 40,623 1,034 3,392 14,535 1,904 14,909 3,670 3,486 8,413 8,578 3,716 1,083 4,918 281 56 120 34 993 705 1,497 1,954 1,235 63 14,280 1,184 29,648 3,388 2,434 841 7,059 534 731 23,224

195 45 37 63 38 234 100 85 22 496 41 82 138 88 310 132 402 55 125 109 297 169 162 258 225 74 81 110 80 37 30 48 57 88 20 81 36 34 54 36 117 104 27 138 103 126 139 29 133 124 345 89 401 36 72 93 99 69 53 65 88 90 56 7 96 6 71 33 20 36 82 67 32 13 24 47 44 9 30 32 19 63 9 11 44 23

7 87 7 93 4 96 5 95 0 105 2 98 2 98 0 100 5 95 4 96 1 99 2 98 0 100 1 99 6 93 2 0 1 5 1 98 95 98 95 99

1 99 3 97 0 100 0 100 0 100 4 5 5 3 2 4 10 7 0 1 1 7 2 2 2 96 95 95 96 97 96 90 93 99 99 98 92 98 98 98

35,146 d 23 37,986 a 29 45,987 a 30 40,421.1


Sectors

y 23 t 22 t 15

a 16 d 12 p 13

0 100 6 94 0 100

1 NL 6 NL 1 NL

0.29 7.73 0.52 11.77 0.10 34.11

Equity Style Box


Val Blnd Grth Lrg Mid Sm

Bold # Cheapest Quintile

h Cyclical r t y u
Basic Materials Consumer Cyclical Financial Services Real Estate

j Sensitive i o p a
Communication Svs Energy Industrials Technology

k Defensive s Consumer Def d Healthcare f Utilities

26

Historical Performance
Morningstar Rating vs. Category 5Best Total Return % 05-31-12 YTD 1 Yr Total Return % Category Rank

Historical Risk
Standard Yield DeviaANNUALIZED 1Best, 100Worst 3 Yr 5 Yr 10 Yr YTD 1 Yr 3 Yr 5 Yr 10 Yr % tion Risk Relative to Category

Morningstar 500
Domestic Equity
Large Growth (contd) Vanguard Morgan Growth Inv VMRGX Vanguard PRIMECAP Core Inv VPCCX Vanguard PRIMECAP Inv VPMCX Large Blend Amana Trust Income AMANX American Funds Fundamental Investors A ANCFX American Funds Invmt Co of America A AIVSX Ameristock AMSTX BBH Core Select N BBTEX Bridgeway Blue Chip 35 Index BRLIX Clipper CFIMX Davis NY Venture A NYVTX Domini Social Equity Inv DSEFX Dreyfus Appreciation DGAGX Fidelity Capital Appreciation FDCAX Fidelity Dividend Growth FDGFX Fidelity Spartan 500 Index Inv FUSEX Fidelity Spartan Total Market Index Inv FSTMX First Eagle US Value A FEVAX FMI Large Cap FMIHX Gabelli Asset AAA GABAX Janus Contrarian T JSVAX Legg Mason Cap Mgmt Value A LGVAX Litman Gregory Masters Value Instl MSVFX Longleaf Partners LLPFX MainStay MAP I MUBFX Mairs & Power Growth Inv MPGFX Manning & Napier Equity EXEYX Muhlenkamp MUHLX Oakmark I OAKMX Oakmark Select I OAKLX Parnassus Equity Income - Inv PRBLX Royce Special Equity Multi-Cap Service RSEMX Schwab S&P 500 Index SWPPX Schwab Total Stock Market Index SWTSX Selected American Shares D SLADX Sequoia SEQUX T. Rowe Price Dividend Growth PRDGX T. Rowe Price Spectrum Growth PRSGX Thornburg Value A TVAFX Torray TORYX Vanguard 500 Index Admiral VFIAX Vanguard Capital Value Inv VCVLX Vanguard Dividend Growth Inv VDIGX Vanguard Growth & Income Inv VQNPX Vanguard Tax-Managed Capital App Adm VTCLX Vanguard Tax-Managed Growth & Inc Adm VTGLX Vanguard Total Stock Mkt Idx Adm VTSAX Weitz Value WVALX Russell 1000 Value Index S&P 500 Index
Legend Red # Lowest return in group Green # Highest return in group Italic # Extended performance Morningstar Analyst Rating

(R)

QQQQ QQQQ QQQQ ] QQQQQ QQQQ QQQ QQQ QQQQQ QQQQ QQ ] QQQ QQQ QQQQQ ] QQQQQ QQ QQQQ QQQQ QQQQ QQQQQ QQQQQ QQ [Q QQ [Q QQQQ QQQQQ QQQ [Q QQQQ QQQ QQQQQ NR QQQQ QQQQ QQ QQQQQ QQQQ QQQQ [Q ] QQQ QQQQ QQ QQQQQ QQQ QQQQ QQQQ QQQQ QQQ

6.5 -3.3 7.8 1.6 2.3 0.8 3.4 4.1 1.9 5.6 5.0 2.2 3.5 6.7 1.8 -2.6 -7.1 -7.1 -4.4 -6.0 -3.1 -3.2 1.7 3.3 -4.4 -7.2 -1.7 0.3

13.7 15.7 13.1 12.5 12.6 11.1 11.8 11.1 12.6 16.4 13.7 15.1 10.7 15.3 14.8 17.3 14.2 14.9 15.5 11.5 13.3 15.8 7.3 10.7 11.4 13.0 12.3 16.2 10.3 8.0 16.7 17.1 13.4 14.8 15.5 11.3 17.4 13.4 13.7 4.6 13.7 14.9 13.4 14.0 14.4 15.0 14.9 15.6 17.3

-0.2 0.1 1.2 1.1 -1.9 2.1 -1.2 -1.6 -1.8 4.7 0.2 -4.4 -3.3 -1.0 0.7 0.4 -1.3 -1.0 -0.6 3.6 1.6 0.5 -6.0 -9.9 -5.7 -4.6 -1.7 1.7 -1.7 -7.4 1.0 -1.2 3.2 -0.9 -0.4 -2.7 4.1 0.1 -0.9 -5.5 -3.1 -0.9 -3.9 2.2 -2.2 -0.7 -1.0 -0.5 -2.9

3.3 5.1 6.3 3.3 8.4 5.8 4.0 1.9 6.2 3.8 0.7 4.0 3.3 3.7 6.4 2.9 4.1 4.8 7.3 7.1 6.5 6.1 -0.2 2.6 3.3 5.5 5.9 4.9 1.6 4.4 3.9 6.6 4.1 4.9 4.2 5.8 4.5 5.5 2.5 1.9 4.1 4.4 5.4 3.4 4.7 4.1 4.9 3.3 4.2 4.1

30 97 94 92 64 53 84 13 32 81 64 6 85 1 34 25 23 90 43 80 2 58 97 94 75 2 85 81 14 25 64 55 27 24 62 21 53 49 99 90 25 45 82 15 23 26 23 18

49 81 81 58 68 47 48 4 2 58 78 32 10 2 89 15 34 16 37 71 85 54 92 94 70 3 88 82 18 45 19 3 15 31 72 1 16 70 99 48 15 98 2 9 30 15 34 2

22 60 67 74 63 74 53 5 38 13 79 11 17 4 32 16 9 67 45 8 97 80 70 48 56 5 84 95 5 4 44 16 9 71 4 42 37 99 38 14 43 34 27 13 15 9 4

51 34 37 3 34 50 54 1 12 90 81 29 8 10 38 28 21 1 4 9 95 99 94 91 50 4 52 98 7 35 2 26 18 72 1 13 26 93 77 26 87 2 63 23 28 19 75

23 9 1 5 32 89 3 39 96 30 62 47 3 73 29 13 2 2 3 3 98 82 62 6 4 11 92 20 36 2 28 11 24 4 19 6 83 89 27 20 59 16 27 12 62

17.9 (93)

Avg -Avg -Avg Low Avg -Avg -Avg Low -Avg -Avg -Avg Avg Low High High Avg Avg Low -Avg +Avg +Avg +Avg Avg High Avg Avg +Avg -Avg +Avg High Low -Avg Avg -Avg Low -Avg +Avg High Low Avg High Low Avg Avg Avg Avg -Avg

0.5 18.37 (95) 1.2 16.76 (97) 1.1 17.14 (97) 1.5 1.7 2.1 1.2 0.5 2.0 1.4 0.6 0.6 1.8 0.2 0.5 1.9 1.8 0.8 1.1 0.4 0.0 0.8 0.6 0.5 1.4 1.3 0.2 0.1 0.8 0.2 1.2 0.6 1.9 1.8 0.7 0.0 1.5 1.0 0.0 1.1 2.0 1.0 2.0 1.8 1.6 1.9 1.9 0.2 17.0 (97) 13.49 16.86 15.73 15.86 13.10 15.02 14.81 16.19 16.59 14.08 18.94 21.45 16.04 16.72 11.32 14.90 16.93 18.99 18.08 16.58 19.17 16.94 16.23 17.71 15.31 17.45 18.94 14.11 15.99 16.56 16.17 11.99 15.08 18.35 20.58 13.54 16.04 24.09 12.81 16.20 16.64 16.03 16.81 14.54 (95) (98) (99) (95) (95) (98) (92) (97) (96) (94) (86) (96) (100) (100) (96) (94) (96) (87) (95) (89) (87) (99) (92) (96) (91) (97) (93) (93) () (100) (100) (98) (83) (99) (98) (90) (93) (100) (95) (94) (99) (100) (100) (100) (93)

4.0 -4.5

13.2 3.6 5.0 -10.2 5.1 -0.5 5.2 -1.8 1.1 -0.5 4.7 -2.1 2.3 -6.4 8.2 -9.1 3.8 -3.8 -1.0 -11.2 0.4 -12.5 2.6 -6.3 8.8 2.4 1.8 -9.8 2.3 -8.2 5.6 5.2 3.4 4.0 5.1 5.2 3.6 5.3 4.1 4.5 -0.6 -2.9 -0.7 2.4 -0.5 -1.6 -6.5 6.1 -0.5 -6.2

-3.0 -22.2 1.1 -3.2 5.1 -0.4 4.7 -16.7 2.1 2.6 5.5 5.2 5.1 5.2 5.4 0.4 -1.5 -0.5 -1.8 4.1

3.5 -3.9 5.2 -0.4 E New this month


][ Increase/decrease in rating NR No Morningstar Rating; fund less than three years old.

13.7 -3.6 14.9 -0.9

Current Portfolio Style


Current Equity Price/ Price/ Style Earn Book Box Ratio Ratio Average Market Cap Top Three Sectors ($Mil) (% of Stock)

Costs
Recent Composition Total # of Turn- (% of Assets) Sales Hold- over Charge Expense ings % Cash Stock Bond Other Foreign % Ratio %

Operations
Total Assets ($Mil)

27

NAV ($)

Portfolio Manager (Tenure Years)

VMRGX 7 VPCCX 7 VPMCX 7 AMANX ANCFX AIVSX AMSTX BBTEX BRLIX CFIMX NYVTX DSEFX DGAGX FDCAX FDGFX FUSEX FSTMX FEVAX FMIHX GABAX JSVAX LGVAX MSVFX LLPFX MUBFX MPGFX EXEYX MUHLX OAKMX OAKLX PRBLX RSEMX SWPPX SWTSX SLADX SEQUX PRDGX PRSGX TVAFX TORYX VFIAX VCVLX VDIGX VQNPX VTCLX VTGLX VTSAX WVALX 4 7 4 1 4 4 4 7 4 4 7 7 4 4 4 4 4 7 4 4 1 4 4 7 4 4 4 7 4 4 4 7 7 4 7 1 1 4 5 4 4 4 4 4 7

14.9 16.7 14.9 14.9 12.3 13.8 14.0 12.5 11.8 14.3 13.1 13.9 13.1 12.5 12.8 14.0 13.5 13.6 13.9 13.7 13.8 14.5 12.7 12.2 12.1 12.7 12.5 14.9 16.7 12.1 13.0 13.4 17.0 14.0 12.8 13.1 14.4 16.3 14.4 13.3 12.3 12.4 13.8 12.8 13.6 13.3 14.0 13.8 14.1 15.3 14.3

2.8 3.3 2.6 2.5 1.9 2.8 2.2 2.0 1.5 2.2

33,361 a 27 29,094 a 36 34,691 a 28 40,382 a 34 38,130 a 17 37,283 39,215 70,054 48,377 57,931 p a a a s 28 17 18 30 24

t 16 t 16 d 25 d 27 y 14 d p p y y y s s d o a p y y a p s o y t t a d t d y a d a y p s p p t a a y a s y y y y y 17 15 16 24 23 18 18 15 12 21 18 13 13 13 19 19 20 24 17 12 16 14 18 15 19 22 21 19 24 13 13 17 22 16 16 20 17 14 15 18 15 13 14 13 17

p 13 p 13 p 17 p 16 p 12 s o o t d s o o y a p y p p p y t t d i a o r y a a y p p p y o d t y d d p t d s p p p s 17 12 15 12 16 13 8 12 12 14

323 136 119 66 287 277 33 31 37 28 91 140 55

75 55 9 8 66 3 28 28 90 17 19 15 8 87 3

3 2 3 2 2

96 97 97 98 93

0 0 0 0 2 0 0 1 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 -3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 1 0 0 0 0 2 3 0 0 0 1 0 0 0 0 1 0 0 7 0 0 0 2 0 4 0 0 0 -1 0 0 0 0 1 1 0 0 0 1 3 0 0 3 3 0 0 0 0 0

7 5 NL 16 Clsd 13 Clsd 9 19 20 10 6 16 0 14 18 7 15 3 17 2 2 4 12 18 19 4 22 11 13 0 1 1 7 4 5 0 0 0 19 17 3 30 13 0 0 14 6 0 0 0 1 8 NL 5.75 5.75 NL NL NL NL 4.75 NL NL NL NL NL NL 5.00 NL NL NL 5.75 NL NL NL NL NL NL NL NL NL NL NL NL NL Clsd NL NL 4.50 NL NL Clsd NL NL NL NL NL NL

1.23

1,595 8,690 4,510 27,671 2,495 1,270 51,543 58,791 180 1,475 267 996 21,491 707 4,382 5,453 7,459 28,121 11,070 2,584 5,087 2,779 2,662 2,153 80 7,492 1,784 2,120 1,679 435 5,674 2,760 4,269 63 12,403 2,008 5,539 5,716 2,478 3,309

Management Team Management Team Management Team Kaiser/Salam (22.4/4.4) Management Team Management Team Gerber/Ngim (16.8/12.4) Management Team Management Team Davis/Feinberg (6.4/6.4) Davis/Feinberg (16.7/14.1) Donald Tunnell (3.1) Management Team J. Shiel (6.6) Lawrence Rakers (3.7) Management Team Management Team Management Team Management Team Management Team Daniel Kozlowski (0.9) Gay/Peters (6.2/1.6) Management Team Cates/Hawkins (18.2/25.2) Management Team Frels/Henneman (12.5/6.4) Management Team Ronald Muhlenkamp (23.6) Grant/Nygren (12.2/12.2) Berghoef/Nygren (12.2/15.6) Ahlsten/Allen (11.1/0.1) Charles Dreifus (1.4) Management Team Hong/Mano (0.3/13.0) Davis/Feinberg (17.5/14.1) Goldfarb/Poppe (13.9/6.1) Thomas Huber (12.2) Charles Shriver (1.1) Browne/Maran (6.3/6.3) Torray/Fialco (21.5/4.1) Michael Buek (20.4) Higgins/Palmer (4.0/2.5) Donald Kilbride (6.3) Management Team Michael Buek (17.8) Michael Perre (5.9) Gerard OReilly (17.4) Management Team

0.41 18.83 0.51 13.70 0.45 63.15 1.11 1.20 0.63 0.61 0.91 1.00 0.15 0.75 0.89 1.23 0.97 0.90 0.93 0.10 0.10 1.18 0.97 1.37 0.78 1.01 1.36 0.91 0.89 0.72 1.05 1.25 1.04 1.07 0.94 1.39 0.09 0.09 0.61 1.00 0.68 0.80 1.28 1.17 0.05 0.58 0.31 0.32 0.12 0.12 0.05 1.20 31.77 36.49 28.09 35.82 15.73 7.79 63.90 33.62 31.65 41.08 27.88 27.15 46.61 37.89 16.84 15.97 48.69 13.32 39.11 11.56 26.76 31.63 77.03 17.70 52.34 44.03 29.42 27.17 11.07 20.57 23.79 40.84 153.15 24.22 17.61

11 88 5 94 5 91 0 100 9 91 0 100 2 97 2 97 1 99 4 96 11 1 1 2 19 89 98 99 98 72

2.0 134,356 a 24 1.4 33,691 y 57 1.6 37,049 y 31 2.1 29,538 a 22 2.6 112,044 s 30 2.6 1.7 2.1 2.0 1.8 2.3 2.0 2.3 1.9 1.4 1.5 1.7 2.4 2.0 1.8 1.9 1.8 2.7 2.8 1.9 1.9 1.7 2.3 2.4 1.9 1.1 2.1 2.1 1.4 2.6 2.1 2.1 2.1 2.0 2.3 1.9 19,993 14,347 55,143 30,857 21,772 36,957 13,014 14,342 69,922 21,072 19,035 48,373 13,344 18,179 25,801 45,805 25,858 17,411 24,009 50,806 28,648 38,425 21,123 34,489 24,927 14,118 40,932 55,677 10,826 60,323 53,209 39,722 55,696 31,099 43,401 t a a a y s p a a y y y p a y t t s t a a y t y a y y a y p a a a a a 34 21 19 18 22 19 25 25 24 19 28 19 38 26 22 24 33 22 29 18 18 33 23 17 17 22 23 19 19 19 20 18 19 19 22

11 74 182 12 547 67 12 508 5 12 3,285 17 11 84 19 18 17 18 16 12 13 13 13 12 17 20 15 18 21 12 30 28 526 8 40 130 48 47 46 19 28 201 47 70 52 57 21 45 39 503 24 44 3 54 43 18 16 63 5 3 1 11 3 10 13

6 94 0 100 0 100 0 98 0 100 10 86 3 97 2 98 0 100 5 98 5 6 3 8 1 1 4 26 1 3 95 94 97 92 97 98 96 74 99 96

13 2,282 11 91 21 39 13 120 15 12 16 16 12 14 15

48 64 34 13 516 4 136 149 50 13

0 97 6 94 0 100 0 97 0 97 3 97 0 100 0 100 0 100 21 79

28.41 2,642 31.13 325 121.21 103,173 9.66 647 15.75 9,939 27.94 4,022 65.58 4,398 58.95 2,877 32.79 181,287 31.74 898

11 824 120 12 629 2 12 503 6 12 3,302 5 15 33 31

40,421.1
Sectors Bold # Cheapest Quintile

Equity Style Box


Val Blnd Grth Lrg Mid Sm

h Cyclical r t y u
Basic Materials Consumer Cyclical Financial Services Real Estate

j Sensitive i o p a
Communication Svs Energy Industrials Technology

k Defensive s Consumer Def d Healthcare f Utilities

28

Historical Performance
Morningstar Rating vs. Category 5Best Total Return % 05-31-12 YTD 1 Yr Total Return % Category Rank

Historical Risk
Standard Yield DeviaANNUALIZED 1Best, 100Worst 3 Yr 5 Yr 10 Yr YTD 1 Yr 3 Yr 5 Yr 10 Yr % tion Risk Relative to Category

Morningstar 500
Domestic Equity
Large Blend (contd) Yacktman YACKX Yacktman Focused YAFFX Large Value Allianz NFJ Large Cap Value D PNBDX American Beacon Lg Cap Value Inv AAGPX American Century Equity Income Inv TWEIX American Century Value Inv TWVLX American Funds American Mutual A AMRMX American Funds Washington Mutual A AWSHX Ariel Focus Investor ARFFX Artisan Value Fund Investor Shares ARTLX Auxier Focus Inv AUXFX EColumbia Dividend Income Z GSFTX Columbia Value & Restructuring Z UMBIX Diamond Hill Large Cap A DHLAX Dodge & Cox Stock DODGX Fairholme FAIRX Fidelity Equity Dividend Income FEQTX Fidelity Equity-Income FEQIX GoodHaven GOODX Homestead Value HOVLX Invesco Van Kampen Comstock A ACSTX Invesco Van Kampen Growth and Income A ACGIX Lord Abbett Affiliated A LAFFX MainStay ICAP Equity I ICAEX MainStay ICAP Select Equity I ICSLX Mutual Beacon A TEBIX Mutual Shares A TESIX Neuberger Berman Large Cap Value Inv NPRTX Perkins Large Cap Value T JPLTX Sound Shore SSHFX T. Rowe Price Equity Income PRFDX T. Rowe Price Value TRVLX TCW Dividend Focused N TGIGX Vanguard Equity-Income Inv VEIPX Vanguard High Dividend Yield Index Inv VHDYX Vanguard US Value Inv VUVLX Vanguard Value Index Adm VVIAX Vanguard Windsor II Investor VWNFX Vanguard Windsor Investor VWNDX Wasatch Large Cap Value Investor FMIEX Mid-Cap Growth Akre Focus Retail AKREX Artisan Mid Cap Inv ARTMX Baron Asset Retail BARAX Baron Growth Retail BGRFX Brandywine BRWIX Buffalo Mid Cap BUFMX Russell 1000 Value Index Russell MidCap Growth Index
Legend Red # Lowest return in group Green # Highest return in group Italic # Extended performance Morningstar Analyst Rating

(R)

QQQQQ QQQQQ QQ QQQQ ] QQQQQ QQQQ QQQQ ] QQQQ QQQ [ QQQ ] QQQQQ ] QQQQQ QQ QQQQ QQQ [ QQQ ] QQQ QQ NR ] QQQQ QQQ QQQ Q QQQQ QQQQ QQ QQQ Q WWW QQQ [ QQQ QQQ QQQ QQQQQ QQQQ QQQ QQQ QQQQ [ QQ QQQQ NR QQQQ QQQ ] QQQQ Q QQQ

4.0 -4.5 2.4 2.0 1.6 4.5 1.6 2.4 3.3 -0.2 -0.2 -4.3 -4.2 -1.0 -3.1 0.7

12.6 16.8 15.9 12.0 11.4 12.9 11.5 12.4 14.0 14.6 10.8 14.3 11.7 14.3 11.6 12.1 12.4 6.7 12.0 11.8 13.9 14.0 12.4 9.2 13.0 12.4 10.4 10.8 9.4 10.7 9.4 13.9 13.7 15.1 16.6 16.3 13.9 13.2 14.1 12.8 9.1 16.1 20.7 15.3 17.1 7.0 15.6

-1.9

3.3

78 84 77 9 79 60 35 58 93 50 81 36 56 87 17 1 15 32 1 43 24 36 49 74 76 68 72 89 62 5 22 43 7 55 48 17 41 11 9 88 23 1 55 70 67 65

13 13 38 37 16 25 9 8 90 20 24 3 95 36 78 98 55 76 1 53 52 47 88 48 58 70 68 98 48 73 27 65 51 3 2 23 36 18 61 81 1 10 34 23 99 46

4 7 58 34 57 42 19 14 70 17 53 16 55 45 43 99 49 52 20 19 42 89 32 42 78 71 88 73 87 20 23 10 4 5 20 29 18 36 90 8 66 40 99 59

1 1 86 51 6 31 9

1 1 70 19 5 24 15

17.0 (97)

Low Low -Avg Avg Low -Avg Low Low +Avg -Avg Low Low High -Avg +Avg High +Avg +Avg +Avg Avg Avg +Avg Avg Avg -Avg Low High +Avg Avg +Avg +Avg -Avg -Avg Avg Avg Avg +Avg Avg Avg -Avg -Avg +Avg Avg

7.4 9.9 8.4 10.5 -3.5 -5.7 -3.5 0.5 -2.1 0.1 -1.2 -3.5 -1.5 1.4 0.9 -4.0 -0.9 -5.0 -0.8 -4.0 -4.6 -2.5 -2.5 -2.1 -4.6 -1.8 -1.7 -4.6 -3.8 -5.6 -3.0 -2.0 -2.4 -3.6 0.3 -0.6 -3.3 -3.4 -2.6 -4.1 -1.6 -0.1 4.7 -0.8 1.1 -7.1 1.4 3.1 2.9 4.6 5.6 4.4 4.7 3.9 5.7 5.2 5.2 6.1 4.1 7.6 3.0 2.8 4.7 3.9 4.2 2.3 4.0 5.5 3.7 3.8 3.5 3.8 4.2 4.3 4.1 5.2 3.0 4.2 4.5 3.4 5.8 5.1 7.9 5.8 6.9 1.5 7.1 4.2 7.0

1.0 12.85 (90) 0.6 12.11 (89) 1.8 2.1 2.6 1.7 2.5 2.4 0.6 0.8 1.0 2.5 1.3 1.1 1.8 0.0 2.2 2.4 0.1 1.6 1.4 1.4 1.4 1.8 2.0 2.6 2.2 0.5 1.1 1.1 2.1 1.4 1.4 2.8 2.8 2.1 2.7 16.7 (96) 15.54 17.42 10.89 14.67 12.78 13.90 18.88 15.19 11.50 13.34 22.55 15.47 18.58 23.24 18.18 18.28 17.73 17.35 17.29 19.08 16.63 16.59 14.33 14.03 21.60 18.08 16.73 18.34 19.02 13.86 14.02 16.71 16.01 (97) (98) (94) (97) (97) (96) (94) (93) (95) (97) (92) (96) (98) (71) (96) (97) () (97) (98) (97) (98) (97) (97) (93) (94) (96) () (95) (97) (98) (98) (95) (94) (98) (98)

2.7 -5.5

2.4 0.9 0.1 -10.5 2.7 -1.8 1.4 -2.8 3.2 2.7 2.5 -13.2 1.1 -4.1 4.1 -8.3 15.3 -15.5 4.1 -5.7 3.4 6.4 3.0 3.7 3.2 -8.1 5.8 -5.5 -5.5 -5.1

18 40 51 21 2 5 4 9 59 16 76 15 60 9 3 33 1 70

70 74 37 15 36 40 31 29 70 25 24 72 56 85 43 29 35 86 35 6 48 43 53 44 31 27

2.7 -10.3 1.7 -5.2 1.7 -6.1 2.1 -7.4 1.9 -7.3 0.7 -16.3 2.3 -5.2 5.0 -7.8 3.8 -3.3 3.0 -6.8 4.9 2.5 2.8 4.0 3.1 4.4 4.6 0.9 -5.4 2.6 3.6 -2.7 -4.1 -1.4 -6.4 -8.9

52 33 7 9 14 48 68 49 31 39 62 22 21 56 4

2.2 16.53 (99) 1.6 18.72 (98) 1.5 16.59 (98) 0.1 0.0 0.0 0.0 0.0 19.5 (88) 19.49 18.11 17.15 21.47 () (83) (91) (85) (84)

5.4 -7.9 7.3 12.8 10.8 -1.7 5.3 -5.5 4.3 -3.9 4.5 -19.8 4.7 -7.3

5 15 68 50 45 34 99 98 42 29

0.0 19.87 (90)

3.5 -3.9 6.1 -6.3 E New this month


][ Increase/decrease in rating NR No Morningstar Rating; fund less than three years old.

13.7 -3.6 18.5 1.2

Current Portfolio Style


Current Equity Price/ Price/ Style Earn Book Box Ratio Ratio Average Market Cap Top Three Sectors ($Mil) (% of Stock)

Costs
Recent Composition Total # of Turn- (% of Assets) Sales Hold- over Charge Expense ings % Cash Stock Bond Other Foreign % Ratio %

Operations
Total Assets ($Mil)

29

NAV ($)

Portfolio Manager (Tenure Years)

YACKX YAFFX PNBDX AAGPX TWEIX TWVLX AMRMX AWSHX ARFFX ARTLX AUXFX GSFTX UMBIX DHLAX DODGX FAIRX FEQTX FEQIX GOODX HOVLX ACSTX ACGIX LAFFX ICAEX ICSLX TEBIX TESIX NPRTX JPLTX SSHFX PRFDX TRVLX TGIGX VEIPX VHDYX VUVLX VVIAX 4 4 1 1 1 1 1 4 1 4 4 1 1 1 4 1 1 1 1 1 1 1 1 1 1 4 4 1 1 1 1 1 1 1 1 1 1

12.3 13.6 13.8 11.4 10.8 11.3 13.5 12.4 13.8 13.1 11.9 11.8 11.5 13.5 11.3 12.7 12.5 14.1 13.3 12.1 12.2 12.0 11.6 12.9 12.4 12.2 12.2 12.7 12.7 12.0 12.7 12.1 12.5 12.2 12.3 12.7 13.0 11.8 12.2 12.2 12.1 11.8 16.9 18.1 23.8 22.9 20.5 15.7 20.1

1.9 2.3 2.4 1.6 1.5 1.4 1.8 1.5 2.3 2.3 1.7 1.5 2.0 2.5 1.7 1.8 1.4 0.3 2.2 1.7 1.5 1.9 1.4 1.7 1.6 1.6 1.6 1.5 1.4 1.3 1.6 1.5 1.7 1.6 1.7 2.1 2.2 1.6 1.5 1.7 1.6 1.6 2.7 2.0 3.9 3.4 2.5 2.6 2.6

38,130 a 17 54,008 s 36 55,565 s 42 38,845 y 19 45,043 53,341 36,775 35,250 43,095 70,895 36,981 33,579 30,866 58,187 21,610 49,907 46,479 25,357 61,603 47,531 12,374 31,382 52,972 48,764 54,853 67,726 80,221 25,622 26,814 53,344 35,946 33,582 33,852 33,727 29,991 60,706 59,964 28,344 46,120 y y y y p p y a s d p d y y s y y p y y y y y s s y y y y y y s s y y 19 27 20 24 22 21 29 30 35 14 22 19 21 77 15 20 34 27 23 23 24 23 19 18 21 33 22 27 21 23 17 17 19 23 22

y 14 t 17 t 16 d 13 o a p d d o a y d y o y a t a d a d d s o d a y d d d d p d t p p d o 16 12 14 16 13 14 19 27 22 14 21 19 19 14 14 15 26 22 14 13 14 15 17 17 17 13 19 17 14 16 15 14 14 12 14

p 12 d 17 d 16 o 13 d o s o t d d o y s r o d u p s p a o d d a o d y o o a o o a o o o d 14 11 14 12 12 13 15 15 12 12 13 16 19 5 14 13 22 17 12 12 13 14 14 16 15 13 11 16 13 11 14 13 13 12 13

51 50

66 3 2 80

2 12 16 3 1 2 1 5 9 2 3 8 24 3 0 3 0 4 1 2 3 2 3 7 3 5 4 12 7 7 11 2 4 1

93 87 84 95 99 97 73 95 86 96 97 92 68 96 98 97 99 95 99 93 67 98 97 93 97 95 96 81 87 93 89 98 95 97

2 0 0 0 0 0 4 0 3 0 0 0 7 0 0 0 0 1 0 1 3 0 0 0 0 0 0 5 5 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 1 1 1 0 0 22 0 2 2 0 0 0 1 2 0 1 0 0 4 27 0 0 0 0 0 0 2 1 0 0 0 1 2 0 2 0 0 0 0 0 0 0 4 0 0 1 0 0

9 1 NL 1 NL 7 2 12 4 11 4 7 0 8 9 6 16 0 16 14 9 15 4 4 14 8 2 8 6 31 23 -1 9 13 5 7 5 5 0 1 1 NL NL Clsd NL 5.75 5.75 NL NL NL NL NL 5.00 NL NL NL NL NL NL 5.50 5.50 5.75 NL NL 5.75 5.75 Clsd NL NL NL NL NL NL NL NL NL

1.11

2,495 7,289 5,901 1,643 751 7,571 9,147 2,021 21,552 55,100 30 666 232 5,430 2,928 1,350 36,797 6,725 4,501 8,334 150 544 7,711 6,064 6,239 920 3,518 3,951 14,076 1,628 126 1,463 23,737 12,801 575 7,884 4,591 504 15,688 34,588 11,699 1,407 889 955 5,510 2,437 6,222 1,057 651

Management Team Management Team Management Team Management Team Management Team Management Team Management Team Management Team Bobrinskoy/Fidler (6.9/6.9) Management Team J. Jeffrey Auxier (12.9) Management Team Pope/Smith (3.3/3.3) Management Team Management Team Bruce Berkowitz (12.4) Scott Offen (0.6) Management Team Pitkowsky/Trauner (1.2/1.2) Management Team Management Team Management Team Daniel Frascarelli (2.9) Senser/Wenzel (17.4/17.4) Senser/Wenzel (14.4/14.4) Correa/Hormozi (5.3/2.5) Management Team Eli Salzmann (0.5) Perkins/Preloger (3.4/3.4) Management Team Brian Rogers (26.6) Mark Finn (2.4) Diane Jaffee (10.6) Management Team Michael Perre (5.6) Management Team Gerard OReilly (17.4) Management Team Management Team Shive/Shinnick (15.7/3.5) Charles T. Akre, Jr. (2.8) Management Team Andrew Peck (8.9) Ronald Baron (17.4) Management Team Management Team

0.80 17.93 1.25 19.15 1.17 1.11 13.94 0.95 18.44 0.96 7.36 1.01 5.78 0.62 26.56 0.63 1.25 1.09 1.25 0.79 0.94 1.12 0.52 1.01 0.67 0.67 1.10 0.70 0.84 0.83 0.84 0.90 0.90 1.14 1.16 0.85 1.05 0.94 0.68 0.85 1.17 0.31 0.25 0.29 0.10 28.93 9.83 10.26 15.83 13.97 45.48 15.12 105.28 26.70 18.03 42.46 21.51 31.62 15.72 19.11 10.79 36.24 34.43 11.85 20.18 24.52 12.84 31.00 23.82 23.21 10.70 22.29 18.29 10.61 20.97

61 19 181 90 106 115 130 62 216 23 160 29 34 176 92 51 48 76 26 139 298 33 44 76 75 122 41 31 152 197 86 111 40 129 127 55 164 440 179 416 269 169 74 25 40 78 20 20 9 16 16 44 82 80 12 6 10 23 16 74 71 51 29 41 43 61 15 53 38 29 16 60 23 23 49 26 95

1 99 3 95 0 100 1 99 0 100 2 3 3 2 22 4 1 0 2 4 98 97 97 97 74 96 98 98 98 96

VWNFX 1 VWNDX 1 FMIEX 1 AKREX ARTMX BARAX BGRFX BRWIX 7 8 8 8 8

51,221 y 20 27,985 y 20 29,863 y 18 5,923 a 21 14,083 8,442 6,880 3,001 8,582 y a t p a 46 35 24 23 28

d 14 d 16 o 16 p 19 t t p t p 30 19 24 16 27

s 13 a 13 d 14 t 17 i d a a t 8 16 13 14 22

7 NL 15 NL 6 NL 7 1 7 3 7 2 NL Clsd NL NL NL

0.35 26.91 0.39 13.36 1.10 13.25 1.32 1.45 1.24 1.33 1.32 1.09 14.43 36.48 48.10 53.21 23.31

29 25 73 63 64 24 104 14 76 234 47 31

BUFMX 8

5,196 t 25

a 22

p 18

3 NL

1.02 16.33

Equity Style Box


Val Blnd Grth Lrg Mid Sm

Sectors

Bold # Cheapest Quintile

h Cyclical r t y u
Basic Materials Consumer Cyclical Financial Services Real Estate

j Sensitive i o p a
Communication Svs Energy Industrials Technology

k Defensive s Consumer Def d Healthcare f Utilities

30

Historical Performance
Morningstar Rating vs. Category 5Best Total Return % 05-31-12 YTD 1 Yr Total Return % Category Rank

Historical Risk
Standard Yield DeviaANNUALIZED 1Best, 100Worst 3 Yr 5 Yr 10 Yr YTD 1 Yr 3 Yr 5 Yr 10 Yr % tion Risk Relative to Category

Morningstar 500
Domestic Equity
Mid-Cap Growth (contd) Champlain Mid Cap Adv CIPMX Columbia Acorn Select Z ACTWX Columbia Acorn Z ACRNX FAM Value Inv FAMVX Fidelity Mid-Cap Stock FMCSX FPA Perennial FPPFX Janus Enterprise T JAENX Meridian Growth MERDX Meridian Value MVALX Neuberger Berman Genesis Inv NBGNX Nicholas NICSX PRIMECAP Odyssey Aggressive Growth POAGX Rainier Small/Mid Cap Equity RIMSX Royce Premier Invmt RYPRX T. Rowe Price Mid-Cap Growth RPMGX Turner Midcap Growth Investor TMGFX Vanguard Mid Cap Growth Inv VMGRX Wasatch Heritage Growth WAHGX Westport R WPFRX Westport Select Cap R WPSRX Mid-Cap Blend Ariel Appreciation Investor CAAPX Ariel Investor ARGFX ASTON/Fairpointe Mid Cap N CHTTX Fidelity Leveraged Company Stock FLVCX Fidelity Low-Priced Stock FLPSX Fidelity Small Cap Stock FSLCX Fidelity Spartan Extended Mkt Index Inv FSEMX First Eagle Fund of America Y FEAFX Longleaf Partners Small-Cap LLSCX Osterweis OSTFX Royce Value Svc RYVFX RS Value A RSVAX Vanguard Extended Market Idx Adm VEXAX Vanguard Mid Cap Index Adm VIMAX Vanguard Strategic Equity Inv VSEQX Weitz Hickory WEHIX Weitz Partners Value WPVLX Westwood SMidCap Institutional WHGMX Mid-Cap Value American Century Mid Cap Value Inv ACMVX Appleseed APPLX Artisan Mid Cap Value Investor ARTQX Delafield Fund DEFIX Fidelity Value FDVLX FPA Capital FPPTX Franklin Balance Sheet Investment A FRBSX Russell MidCap Growth Index S&P MidCap 400 Index Russell MidCap Value Index
Legend Red # Lowest return in group Green # Highest return in group Italic # Extended performance Morningstar Analyst Rating

(R)

QQQ QQ QQQQ QQQ QQ QQQ QQQQ QQQQQ QQQ QQQQ QQQQ QQQQ [ QQ QQQQ QQQQQ QQQ QQQQ QQQQ QQQQQ QQQ QQ Q [ QQQ QQQ QQQQ QQ QQQQ QQQQQ QQQQ QQQQ QQQQ QQQ QQQQ QQQQ QQQ QQQ QQQ QQQQ QQQQQ QQQQ QQQQ QQQQ QQ [ QQQ Q

5.4 -7.9 4.8 -5.1 8.0 -10.1 6.6 -6.2 5.6 -2.9 4.9 -6.2 1.3 5.7 6.2 5.8 1.2 3.1 6.2 4.7 1.3 5.3 -8.3 -4.3 -0.8 -1.7 -4.3 -2.0 -6.0 -7.6 -9.0 -5.4

16.1 15.7 14.6 18.1 14.0 18.2 15.0 17.6 20.1 13.6 16.2 17.5 20.7 17.1 15.4 18.4 16.3 18.6 16.9 16.0 12.5 15.1 18.3 18.5 17.4 15.9 15.8 13.4 18.2 14.4 19.9 9.9 11.0 11.2 18.1 18.4 17.9 20.9 17.3 15.5 15.5 16.5 10.1 15.1 18.0 15.7 14.4 12.8

-0.1 -2.7 1.0 -0.5 -0.8 1.3 2.5 5.0 -0.3 3.3

5.1 7.2 8.8 4.6 5.4 6.5 8.3 8.3 6.0 8.7

63 13 32 49 62 91 48 37 45 91 82 37 64 90 55 81 26 83 76 99 57 63 89 2 57 59 21 36 25 60 97 89 25 43 34 12 19 87 62 91 93 14 29 99 96

31 68 40 18 40 53 25 8 10 25 12 37 49 61 33 95 13 26 11 94 77 88 70 76 12 98 36 13 21 41 96 86 41 37 16 3 2 65 11 47 16 46 73 96 81

58 72 26 78 25 69 35 10 81 51 36 7 39 64 22 50 21 43 55 90 9 6 23 41 45 74 11 63 3 93 87 86 12 7 15 2 24 49 35 95 58 19 49 67 82

0.0 1.8 0.3 0.0 0.2 0.0 0.0 0.2 0.4 1.7 0.4 0.0 0.0 0.3 0.0 0.0 0.2 0.1 0.0 0.0 0.4 0.2 0.2 1.1 0.7 0.0 1.2 0.0 0.0 0.0 0.2 0.0 1.1 1.3 1.0

19.5 (88) 15.43 22.68 20.42 15.07 20.98 20.21 17.22 18.04 18.11 16.50 16.29 20.66 21.81 19.99 18.31 22.02 18.42 16.68 17.17 21.11 23.92 26.24 22.64 24.22 17.11 25.35 20.25 15.46 19.30 13.26 21.66 20.34 20.62 19.14 20.57 (92) (89) (91) (90) (90) (85) (91) (89) (94) (85) (94) (84) (90) (87) (92) (87) (89) (86) (90) (76) (94) (90) (84) (91) (96) (88) (92) (85) (79) (89) (83) (91) (91) (94) (92)

Low High Avg Low +Avg Avg -Avg -Avg -Avg Low Low +Avg High Avg -Avg High -Avg Low -Avg +Avg High High +Avg High -Avg High +Avg -Avg Avg Low +Avg Avg +Avg Avg +Avg -Avg -Avg Avg Low Low Low High +Avg +Avg Avg

85 26 46 4 63 74 67 59 42 27 4 60 18 41 8 7 47 5

2.4 5.1 3.3 -2.9 6.8 3.3 10.2 3.5 8.3 0.0 2.3 1.5 3.7 -1.0 -1.3 5.7 6.7 8.1 5.1 5.5

28 64 17 87 37 18 1 15 7 59 52 31 37 41 12 12 69 65 36 76 4 74 19 45 18 6 31 40 48 85 22 33 70 34 41 2 79 91 7 1 7 38 9 15 6 34 4 5 10 20 36 56 77

3.3 -15.3 7.0 -2.1 2.9 -4.5 3.9 -1.8 -2.1 -14.7 3.5 -9.2 3.5 2.6 -0.3 8.3 3.6 -12.0 -15.8 -11.5 -12.0 -5.5

19.9 (90)

-0.4 4.4 -3.3 3.6 2.0 7.8 -3.1 14.0 0.8 8.0 -0.9 0.8 1.7 -0.2 -0.7 -1.0 -4.2 0.5 -0.2 -2.9 -0.4 -0.7 2.3 -1.5 1.1 3.8 2.0 2.2 -3.7 1.2 -5.2 5.9 7.5 7.0 8.0 6.1 9.9 9.0 7.5 6.7 6.0 5.3 4.4 5.5 9.9 8.6 5.3 7.4 4.9 7.0 7.2 7.3

3.3 -20.3 5.7 -7.3 4.9 -5.7 5.5 -6.4 3.2 -7.6 -3.1 -18.5 -0.4 -15.0 5.5 -7.6 4.6 -7.4 5.0 -6.1 6.2 -2.2 5.7 0.0 0.0 -10.8 3.8 -8.2 3.1 -3.8 0.7 -8.7 0.5 -5.0 6.0 -8.7 4.7 -10.1 -3.2 -13.0 -0.4 -11.1 6.1 -6.3 5.9 -6.1 4.0 -6.4

0.0 17.08 (81) 0.0 16.34 (87) 0.4 18.91 (88) 1.3 1.0 0.6 0.0 0.9 19.2 (92) 14.94 13.65 16.06 23.28 21.51 (94) (73) (94) (91) (93)

11 2 4 1 4 1 88 69 10 95 13 77

0.0 20.63 (83) 0.6 19.67 (92)

18.5 1.2 18.9 1.7 18.6 -1.4

E New this month


][ Increase/decrease in rating NR No Morningstar Rating; fund less than three years old.

Current Portfolio Style


Current Equity Price/ Price/ Style Earn Book Box Ratio Ratio Average Market Cap Top Three Sectors ($Mil) (% of Stock)

Costs
Recent Composition Total # of Turn- (% of Assets) Sales Hold- over Charge Expense ings % Cash Stock Bond Other Foreign % Ratio %

Operations
Total Assets ($Mil)

31

NAV ($)

Portfolio Manager (Tenure Years)

CIPMX ACTWX ACRNX FAMVX FMCSX FPPFX JAENX MERDX MVALX NBGNX NICSX POAGX RIMSX RYPRX RPMGX TMGFX VMGRX WAHGX WPFRX WPSRX CAAPX ARGFX CHTTX FLVCX FLPSX FSLCX FSEMX FEAFX LLSCX OSTFX RYVFX RSVAX VEXAX VIMAX VSEQX 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 5 5 2 5 2 2 9 9 5 5 4 5 2 9 5 5

16.9 15.4 15.1 18.8 17.0 18.5 16.4 20.1 19.7 17.2 18.0 16.2 24.8 16.6 15.8 19.7 18.9 19.3 19.5 16.5 13.9 13.8 13.0 14.2 14.1 10.9 10.1 14.5 15.5 12.5 20.7 15.2 12.5 14.0 16.4 15.9 13.2 17.5 15.8 14.0 12.4 14.1 12.9 12.5 13.4 13.1 11.3 11.9

2.7 2.2 1.5 2.3 1.9 2.1 2.5 3.5 3.1 2.2 2.7 2.3 2.9 2.4 2.0 2.7 2.8 3.0 3.3 2.7 2.2 1.8 1.8 1.8 2.0 1.4 1.2 1.7 1.8 2.3 1.7 1.8 1.5 1.8 1.8 2.0 2.0 1.7 1.9 1.7 1.4 1.5 1.4 1.6 1.7 1.4 1.4 0.9

5,923 a 21 5,267 3,538 3,061 6,734 4,042 3,723 7,537 5,577 5,303 2,524 9,450 3,347 3,814 2,425 6,136 8,063 6,573 6,605 9,427 3,465 8,797 3,224 4,571 8,671 3,698 1,834 2,497 10,855 2,666 11,291 2,478 6,431 2,447 6,524 3,604 a p p y a t a t p p p d p p p a a p p a y t a t t a p d t d y y p t p 20 30 21 30 16 30 30 22 43 21 27 43 21 27 26 29 28 32 25 23 29 24 27 21 27 23 16 30 47 22 20 23 17 16 16

p 19 s y a t t p p a a o t a t a a t p a a s t p t r a p t r y o r o t a t 19 15 21 23 15 30 27 22 13 15 19 30 18 16 24 17 21 25 22 16 29 19 24 16 18 17 15 21 16 18 19 17 16 15 15

t 17 p t t p d a d p t t d p a r d p t t o t d y d p d t a t r t t r a p a 17 14 15 20 12 19 19 17 13 13 19 11 15 14 15 16 17 12 11 15 12 16 16 15 13

95

97

0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 2 0 0 0 0 0 0 0 1 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 -2 0 1 1 1 0 0 0 0 0 0 1 2 18 0 0 0 0 0

7 4 17 12 3 8 10 12 5 4 6 6 7 7 14 7 5 3 9 3 1 0 0 1 13 34 7 2 6 5 19 17 6 2 2 2 NL NL NL NL NL 5.25 NL NL NL NL NL NL Clsd Clsd Clsd NL NL NL NL NL NL NL NL NL NL NL NL Clsd Clsd NL NL 4.75 NL NL NL

1.32 1.30 0.97 0.76 1.22 0.59 1.00 0.93 0.81 1.09 1.05 0.75 0.68 1.24 1.09 0.80 1.18 0.53 0.95 1.25 1.36 1.22 1.15 1.04 1.14 0.84 0.83 1.12 0.10 1.43 0.92 0.99 1.44 1.28 0.10 0.10 0.30

11.41 25.52 29.39 47.67 27.96 36.82 61.28 44.21 29.70 33.47 44.94 17.06 33.35 18.76 55.51 33.35 20.15 12.25 24.17 22.13 40.07 44.10 29.50 27.19 37.03 17.08 37.04 24.93 26.61 26.45 10.60 22.95 41.50 93.24 19.25

889 325 1,069 16,210 728 6,232 255 2,518 2,372 656 11,101 1,694 1,221 2,153 6,477 18,856 673 2,051 106 479 526 945 1,179 1,284 2,645 3,572 32,493 2,933 6,277 1,420 3,033 956 1,403 1,265 16,801 23,891 3,073 309 653 368 857 2,120 198 8,159 1,293 6,056 1,289 1,474

Management Team Andrews/Chalupnik (8.2/1.1) McQuaid/Mohn (16.4/8.4) Fox/Putnam (12.1/25.4) John Roth (1.3) Ende/Geist (16.7/15.8) Brian Demain (4.6) Management Team England/OConnor (10.4/7.4) Management Team Nicholas/Nicholas (42.9/1.1) Management Team Management Team Management Team Brian Berghuis (19.9) Christopher McHugh (15.7) Management Team Bowen/Snow (8.0/8.0) Edmund Nicklin, Jr. (14.4) Knuth/Nicklin, Jr. (14.4/14.4) Fidler/Rogers, Jr. (2.6/9.7) Management Team Management Team Thomas Soviero (8.9) Management Team Lionel Harris (0.5) Management Team Levy/Cohen (25.2/22.4) Cates/Hawkins (17.4/22.4) Management Team Management Team Management Team Donald Butler (14.4) Donald Butler (14.1) Management Team Weitz/Weitz (0.4/9.4) Hinton/Weitz (5.8/29.0) Management Team Management Team Management Team Management Team Delafield/Sellecchia (18.6/18.6) Management Team Management Team Management Team

77 33 58 21 369 18 41 8 216 131 38 76 56 52 148 5 15 26 38 12

2 98 0 98 0 100 10 90 2 97 6 4 3 1 5 94 96 97 99 94

52 21 91 11 118 111 80 18 139 31 89 104 126 127 45 35 49 9 33 2 38 38 43 156 940 68 26 29 11 18 15 47 11 68 37 31 35 40 14 22 73 38 31 62 76 71 68 32 38 95 15 10

6 94 4 96 0 100 8 92 5 94 0 100 6 94 9 91 8 92 1 99 5 1 2 5 3 3 2 1 11 4 7 94 99 98 95 96 96 98 99 91 96 89

5,311 p 18

t 15

a 14

16 171 15 3,073 21 36 14 23 13 42 18 66 15 32 14 3,047 14 449 15 393 34 36 65 120 37 57 68 291 26 82

2 97 15 85 0 100 0 100 1 99 26 21 4 4 0 11 6 15 3 32 4 74 79 96 95 98 71 94 85 97 68 96

WEHIX 6 WPVLX 4 WHGMX 2 ACMVX APPLX ARTQX DEFIX FDVLX FPPTX FRBSX 2 2 2 2 2 5 2

2,537 t 36 14,170 t 19 3,264 y 20 6,661 y 19 8,201 5,546 6,571 2,993 7,634 y s p p y 22 24 26 33 22

i 15 a 18 t 17 p 15 p t a r t 14 18 22 27 13

r 11 y 15 p 16 t 13 f y y a f 11 16 21 20 12

0 NL 3 NL 4 Clsd 5 5 31 4 2 13 NL NL Clsd NL NL

1.27 40.94 1.20 22.24 0.96 12.91 1.26 1.01 1.24 1.20 1.23 0.59 12.05 11.83 19.79 28.54 66.43

4,589 o 42 3,222 y 34

a 31 p 18

p 10 f 12

9 Clsd 7 5.75

0.84 40.26 0.94 38.72

Equity Style Box


Val Blnd Grth Lrg Mid Sm

Sectors

Bold # Cheapest Quintile

h Cyclical r t y u
Basic Materials Consumer Cyclical Financial Services Real Estate

j Sensitive i o p a
Communication Svs Energy Industrials Technology

k Defensive s Consumer Def d Healthcare f Utilities

32

Historical Performance
Morningstar Rating vs. Category 5Best Total Return % 05-31-12 YTD 1 Yr Total Return % Category Rank

Historical Risk
Standard Yield DeviaANNUALIZED 1Best, 100Worst 3 Yr 5 Yr 10 Yr YTD 1 Yr 3 Yr 5 Yr 10 Yr % tion Risk Relative to Category

Morningstar 500
Domestic Equity
Mid-Cap Value (contd) Perkins Mid Cap Value T JMCVX Schneider Value SCMLX T. Rowe Price Mid-Cap Value TRMCX Vanguard Selected Value Inv VASVX Small Growth Artisan Small Cap Investor ARTSX ASTON/TAMRO Small Cap N ATASX Baron Small Cap Retail BSCFX Brown Capital Mgmt Small Co Inv BCSIX Buffalo Small Cap BUFSX Century Small Cap Select Inv CSMVX Champlain Small Company Adv CIPSX Columbia Acorn USA Z AUSAX Janus Triton T JATTX Janus Venture T JAVTX Kalmar Growth-with-Value Small Cap KGSCX Litman Gregory Masters Smlr Coms Instl MSSFX LKCM Small Cap Equity Instl LKSCX Loomis Sayles Small Cap Growth Retail LCGRX Managers Micro-Cap Service MMCFX Royce Value Plus Svc RYVPX T. Rowe Price New Horizons PRNHX Turner Small Cap Growth TSCEX Vanguard Explorer Inv VEXPX Vanguard Small Cap Growth Index Admiral VSGAX Wasatch Core Growth WGROX Wasatch Small Cap Growth WAAEX Wasatch Ultra Growth WAMCX William Blair Small Cap Growth N WBSNX Small Blend Artisan Small Cap Value Investor ARTVX ASTON/River Road Small Cap Value N ARSVX Bogle Small Cap Growth Inv BOGLX Bridgeway Ultra-Small Company Market BRSIX DFA US Micro Cap I DFSCX DFA US Small Cap I DFSTX Dreyfus Opportunistic Small Cap DSCVX Fidelity Small Cap Discovery FSCRX Fidelity Stock Selector Sm Cp FDSCX Royce Pennsylvania Mutual Invmt PENNX Royce Special Equity Invmt RYSEX Royce Total Return Invmt RYTRX Stratton Small-Cap Value STSCX T. Rowe Price Small-Cap Stock OTCFX T. Rowe Price Small-Cap Value PRSVX Third Avenue Small Cap Value Instl TASCX Vanguard Explorer Value Investor VEVFX Vanguard Small Cap Index Adm VSMAX Russell MidCap Value Index Russell 2000 Growth Index
Legend Red # Lowest return in group Green # Highest return in group Italic # Extended performance Morningstar Analyst Rating

(R)

QQQQ Q QQQQ QQQQ ] QQQQ QQQQ QQQQ QQQQ ] QQQQ QQQQ ] QQQQQ ] QQQQ QQQQQ QQQQ QQQQ QQQ [ QQQQ ] QQQQQ QQQ [ QQQ QQQQQ QQQ QQQ WWWW QQQ QQQQQ QQQ QQ QQQQ ] QQQ [ QQ QQQ QQQ QQQ QQQ QQQQQ QQ QQQ QQQQ QQQQ QQQQ QQQQQ QQQQ ] QQQ NR ] QQQQ

3.8 -8.2 0.9 -8.4 -2.0 -22.1 3.3 -8.8 2.6 -5.5 3.9 -10.0 6.9 5.7 5.6 4.8 9.5 6.3 4.1 7.5 5.9 8.1 6.4 4.4 2.3 2.9 5.0 -1.5 -7.6 -7.5 -8.3 -2.1 -6.4 -2.7 -7.9 -2.4 -1.7 -3.7 -7.7 -7.3 -8.3 -6.7

15.5

-1.5

5.5 7.4 7.2 6.6 4.9 5.7 8.0 6.7 7.3 7.1 7.0 6.9 7.9 6.9 7.5 6.8 5.4 9.4 9.5 6.8 5.7 7.9 4.5 6.8 4.0 6.4 5.5 8.5 5.6 7.4 6.7 7.0 7.6 7.8 4.3 7.4 7.7 6.5 8.2 7.6 8.2 5.3 7.1 7.3 5.9

87 99 58 71 12 25 26 35 2 20 44 8 24 5 19 39 74 64 31 53 4 68 37 37 35 5 53 26 94 69 12 6 53 29 8 7 59 73 33 82 77 4 32 59 34 19

40 98 47 21 5 26 26 32 6 19 7 29 6 5 10 28 24 32 21 78 1 80 31 32 4 2 47 48 85 5 81 37 36 38 91 6 66 80 2 30 39 7 7 50 25 35

92 100 71 47 5 51 58 28 84 16 42 35 10 4 6 25 10 9 67 93 1 59 39 24 16 10 17 92 86 96 11 85 20 10 31 5 21 66 84 72 65 5 31 94 14

17 98 22 26 31 26 36 1 34 41 1 52 1 26

15 19 32 49 5 24 12 17 17 19 6

0.8 0.5 1.0 1.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 0.7 0.7 0.0 0.0 0.0 0.2 0.4 1.0 0.0 0.0 0.7

19.2 (92) 15.42 24.52 17.72 17.24 18.73 21.11 18.85 20.37 21.74 21.01 16.33 22.81 17.27 18.82 20.88 20.96 20.46 19.31 22.20 21.66 19.24 23.78 20.99 16.80 17.92 17.89 22.94 20.13 16.14 24.00 22.36 22.01 22.27 27.65 21.40 22.41 20.58 16.29 16.82 18.86 21.18 19.93 (94) (86) (94) (96) (75) (84) (86) (74) (82) (79) (86) (89) (88) (81) (83) (88) (82) (83) (82) (84) (89) (84) (90) () (82) (83) (78) (83) (88) (83) (86) (82) (83) (86) (84) (82) (87) (89) (86) (92) (89) (89) (86)

Low High -Avg -Avg Low Avg -Avg -Avg Avg Avg Low +Avg Low -Avg Avg Avg Avg -Avg Avg Avg -Avg +Avg Avg Low Low Low +Avg -Avg Low High +Avg +Avg +Avg High Avg +Avg -Avg Low Low -Avg Avg -Avg Low Avg

10.8 0.6 5.7 -12.5 14.1 -0.1 15.8 -0.4 16.8 21.7 17.1 16.8 19.4 13.5 20.5 17.8 18.5 21.0 22.3 21.6 19.7 21.0 21.1 16.1 11.0 26.2 16.8 18.1 19.9 20.5 20.9 20.4 11.1 15.8 13.4 10.9 19.1 13.5 18.0 19.2 17.0 22.0 17.9 15.0 13.6 14.7 15.1 21.9 16.9 11.7 18.6 -0.6 1.3 1.7 1.0 7.7 1.1 0.7 4.8 0.1 7.0 1.7 2.7 -0.8 1.2 3.3 1.2 -3.4 5.8 0.5 -0.1 1.9 0.7 4.0 -0.2 -3.0 -1.6 0.8 -2.5 -3.3 -3.4 -1.2 0.6 4.4 5.7 -2.7 -0.2 3.9 -0.1 -0.6 3.3 1.3 -3.1 0.7

21.5 (83)

15 20 67 31 10 10 21 32 58 92 1 44 56 24 40 5 58 89 2 2 22 47 6 79 20 84 30

3.5 -13.4 8.9 2.9 2.7 -13.8 4.5 -8.2 4.6 -8.3 4.7 -1.3 8.2 -0.5 3.5 -10.1 5.7 -10.2 2.9 -9.2 -0.3 -11.6 2.0 -3.3 4.8 -10.8 6.1 -7.7 3.0 -7.6 3.9 -7.8 5.3 -14.8 5.7 -3.6 2.7 -9.6 1.8 -10.6 3.6 -0.8 1.2 -7.0 1.5 -7.9 6.8 -3.6 3.7 -3.8 2.6 3.6 4.4 -8.6 -6.5 -7.5

21.7 (87)

17 8 70 82 52 84 18 48 29 21 3 1 72 33 4 32 38 6 12 22 15 12 81 17 13 34 11 15 10

77 62 20 21

0.3 16.94 (91) 0.8 () 1.3 21.54 (90)

4.0 -6.4 3.5 -9.5

18.6 -1.4 17.4 0.9

E New this month


][ Increase/decrease in rating NR No Morningstar Rating; fund less than three years old.

Current Portfolio Style


Current Equity Price/ Price/ Style Earn Book Box Ratio Ratio Average Market Cap Top Three Sectors ($Mil) (% of Stock)

Costs
Recent Composition Total # of Turn- (% of Assets) Sales Hold- over Charge Expense ings % Cash Stock Bond Other Foreign % Ratio %

Operations
Total Assets ($Mil)

33

NAV ($)

Portfolio Manager (Tenure Years)

JMCVX SCMLX TRMCX VASVX ARTSX ATASX BSCFX BCSIX BUFSX CSMVX CIPSX AUSAX JATTX JAVTX KGSCX MSSFX LKSCX LCGRX MMCFX RYVPX PRNHX TSCEX VEXPX VSGAX WGROX WAAEX WAMCX WBSNX ARTVX ARSVX BOGLX BRSIX DFSCX DFSTX DSCVX FSCRX FDSCX PENNX RYSEX RYTRX STSCX OTCFX PRSVX 2 1 2 2 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 8 9 9 9 9 9 9 9 3 6 6 6 6 6 9 3 6 9 6 6 6 9 6

12.4 13.8 12.1 15.2 12.3 17.8 24.9 19.2 22.5 24.8 22.8 17.5 17.7 19.5 21.0 23.4 21.2 16.2 18.0 23.3 16.0 17.7 25.0 18.0 17.0 18.1 18.0 21.5 13.5 19.0 14.0 14.0 14.2 11.1 14.2 14.6 15.0 16.6 13.7 15.6 15.4 15.0 14.3 15.9 18.8 17.1 12.4 13.9 15.8

1.4 1.6 1.0 1.5 1.3 2.4 3.2 2.1 2.7 3.2 2.9 2.5 1.9 2.2 3.1 3.0 2.4 1.6 2.4 2.7 1.8 2.0 3.3 2.3 2.2 2.5 2.7 3.0 3.1 2.3 1.6 1.4 1.3 1.3 1.3 1.5 1.6 1.8 1.4 1.7 1.8 1.9 1.6 1.8 2.0 1.7 1.0 1.4 1.7

6,661 y 19 10,841 12,752 5,650 7,782 2,374 1,611 2,482 1,271 1,761 1,391 1,639 2,060 2,424 1,385 1,813 1,959 1,559 1,425 455 1,895 2,446 1,773 2,446 1,608 1,910 1,702 1,144 882 1,357 1,109 894 190 521 992 1,476 1,284 1,509 1,718 1,541 2,124 2,202 1,532 1,044 y y y y a p p a a a a a p p a a a a a a a a a a p p a p p t p y a p p p a p t y p a p 19 40 22 27 36 22 26 61 30 29 20 27 25 23 30 26 26 27 28 27 33 28 23 22 35 28 41 27 34 23 18 22 19 20 28 27 20 27 30 25 19 20 25

p 15 d t t p p a t d t t p p a a p p p p p p t p p p t a p a a p y t t a a y p a a p y p y 14 18 13 16 21 19 24 23 18 17 19 21 18 20 25 25 22 18 21 16 20 18 21 21 23 23 14 20 22 21 18 18 18 18 21 20 15 19 28 22 19 18 16

t 13 p r p a d y a p p p y t d d t t t t t r p d d d y t d t t y a d p t t t t t p t t t a 13 11 13 9 14 16 16 6 18 15 15 14 18 18 20 14 17 17 17 16 17 15 17 17 14 20 14 16

157 43 125 68 74 52 102 43 58 65 95 172 94 94

76 66 68 54 25 97 80 47 33 21 24 75 38 20 42 54

4 9 3 8 8 3 3 1 3 3 4

95 91 97 92 92 96 97 99 95 97 96

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0

1 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 1 5 0 -1 0 0 0 0 0 0 0 0 0 0 0 2 0 1 2 1 0 0

5 8 9 6 6 3 3 5 0 3 6 3 5 4 5 4 3 3 8 3 16 7 3 5 2 9 20 21 5 3 2 11 0 0 1 2 3 6 6 0 6 0 2 1 NL NL Clsd NL NL Clsd NL Clsd Clsd NL Clsd NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL Clsd Clsd NL NL NL NL Clsd NL NL NL Clsd NL NL NL NL

1.26 0.99 0.90 0.81 0.45 1.44 1.29 1.29 1.31 1.19 1.01 1.48 1.38 1.00 0.93 0.95 1.44 1.54 0.95 1.25 1.41 1.42 0.81 1.25 0.50 0.10 1.22 1.23 1.42 1.50 1.30 1.20 1.37 1.35 0.75 0.52 0.37 1.16 1.04 0.85 0.90 1.15 1.12 1.20 0.92 0.82

20.38 11.76 22.09 19.07 18.81 19.30 24.22 45.86 27.30 24.58 14.40 29.00 17.19 56.38 16.34 13.48 22.97 16.94 35.06 12.42 33.80 33.05 74.68 28.11 37.87 40.92 21.00 21.27 14.88 12.69 19.57 13.66 13.61 21.31 23.92 21.18 18.51 10.95 20.41 12.80 50.55 33.37 35.75

857 13,682 41 9,114 4,006 525 489 931 4,169 1,277 2,501 390 764 1,526 3,164 1,479 374 66 774 616 105 1,649 9,489 232 8,927 6,471 492 1,614 135 485 663 2,893 276 94 282 3,201 3,917 548 2,658 1,406 5,219 2,615 4,289 747 7,252 7,515 658 119 22,323

Perkins/Kautz (13.8/13.8) Arnold Schneider III (9.7) David Wallack (11.4) Management Team Management Team Holland/Tasho (2.3/11.5) Clifford Greenberg (14.7) Management Team Management Team Thorndike/Callahan (12.5/10.5) Management Team Robert Mohn (15.8) Meade/Schaub (5.9/5.9) Meade/Schaub (1.9/1.9) Draper Jr./Walker (15.2/15.2) Management Team Management Team Burns/Slavik (7.4/7.2) Management Team Skinner III/George (9.4/11.0) Henry Ellenbogen (2.3) Bill McVail (14.1) Management Team Gerard OReilly (7.4) Lambert/Taylor (7.3/11.4) Jeff Cardon (25.5) Management Team Balkin/Brewer (3.9/12.4) Management Team Management Team John C. Bogle Jr. (12.7) Management Team Management Team Management Team Management Team Charles Myers (6.2) Management Team Management Team Charles Dreifus (14.1) Management Team Gerald Van Horn (11.9) Gregory McCrickard (19.8) Preston Athey (20.8) Curtis Jensen (15.2) Management Team Michael Buek (20.4)

1,515 a 24

p 21

t 16

4 96 6 94 0 100 8 92 6 94 6 94 0 100 4 96 5 95 3 97 3 97 6 90 1 99 3 97 0 100 7 6 1 4 4 93 93 94 96 94

84 42 71 125 92 50 105 76 317 85 125 49 239 44 124 119 588 89 957 40 57 92 96 86 27 23 60 97 62

1,310 p 20

a 15

t 15

12 99 47 14 83 42 16 137 303 16 598 42 17 2,068 14 17 2,391 19 81 16 69 14 197 17 526 18 15 13 15 13 63 534 66 332 341 23 91 11 73 20 23 21 16 24 6 34 41 17

5 95 4 96 1 99 0 100 0 100 0 100 0 100 1 99 4 96 3 97 11 89 6 92 0 100 7 92 3 94 21 9 1 77 91 99

TASCX 3 VEVFX 6 VSMAX 6

1,546 p 22 1,762 y 24 1,522 p 18

a 19 p 19 a 16

r 17 68 a 18 183 t 14 1,746

15 NL 2 NL 1 NL

1.15 20.29 0.57 22.00 0.10 34.84

Equity Style Box


Val Blnd Grth Lrg Mid Sm

Sectors

Bold # Cheapest Quintile

h Cyclical r t y u
Basic Materials Consumer Cyclical Financial Services Real Estate

j Sensitive i o p a
Communication Svs Energy Industrials Technology

k Defensive s Consumer Def d Healthcare f Utilities

34

Historical Performance
Morningstar Rating vs. Category 5Best Total Return % 05-31-12 YTD 1 Yr Total Return % Category Rank

Historical Risk
Standard Yield DeviaANNUALIZED 1Best, 100Worst 3 Yr 5 Yr 10 Yr YTD 1 Yr 3 Yr 5 Yr 10 Yr % tion Risk Relative to Category

Morningstar 500
Domestic Equity
Small Blend (contd) Vanguard Tax-Managed Small Cap Adm VTMSX Small Value Allianz NFJ Small Cap Value D PNVDX American Beacon Small Cp Val Inv AVPAX American Century Small Cap Value Inv ASVIX Ariel Discovery Investor ARDFX Diamond Hill Small Cap A DHSCX Fidelity Small Cap Value FCPVX Perkins Small Cap Value T JSCVX Queens Road Small Cap Value QRSVX Royce Opportunity Invmt RYPNX Schneider Small Cap Value SCMVX Skyline Special Equities SKSEX Vanguard Small Cap Value Index Admiral VSIAX Allocation American Funds American Balanced A ABALX American Funds Inc Fund of Amer A AMECX Berwyn Income BERIX Calamos Growth & Income A CVTRX Calamos Market Neutral Income A CVSIX Caldwell & Orkin Market Opportunity COAGX Davis Appreciation & Income A RPFCX Dodge & Cox Balanced DODBX Fairholme Allocation FAAFX Fairholme Focused Income FOCIX Fidelity Balanced FBALX Fidelity Puritan FPURX Fidelity Strategic Real Return FSRRX FPA Crescent FPACX Franklin Income A FKINX Gateway A GATEX Greenspring GRSPX Hussman Strategic Growth HSGFX Hussman Strategic Total Return HSTRX Invesco Van Kampen Equity and Income A ACEIX Janus Balanced T JABAX Leuthold Asset Allocation Retail LAALX Mairs & Power Balanced Inv MAPOX Manning & Napier Pro-Blend Cnsrv Term S EXDAX Manning & Napier Pro-Blend Mod Term S EXBAX Merger MERFX MFS Total Return A MSFRX Oakmark Equity & Income I OAKBX Pax World Balanced Individual Inv PAXWX Russell 2000 Index Russell 2000 Value Index S&P 500 Index BarCap US Agg Bond TR USD
Legend Red # Lowest return in group Green # Highest return in group Italic # Extended performance Morningstar Analyst Rating

(R)

MA MA CA AL NE QQQQ QQQQQ QQQ QQQQ NR QQQ QQQQ QQQQ ] QQQQ QQ Q QQQ WWW QQQ QQQ QQQQQ QQQQ QQQ

2.9 -9.2 3.6 -4.3 2.6 -8.0 -1.1 -7.2 1.6 -9.4 2.8 -8.1 8.7 0.1 1.0 -11.7 5.0 -3.9 1.0 -7.9 -2.9 -9.7 6.8 -11.5 6.3 -16.5 2.3 4.1 4.0 1.5 1.7 1.2 1.8 -5.9 -6.8 1.6 -0.6 0.6 -6.0 1.3

15.8 18.7 16.2 15.4 16.8 16.0 12.1 17.2 13.0 11.3 19.8 14.2 19.0 17.0 7.5 12.5 13.4 11.1 10.9 6.2 -1.8 12.5 11.6 12.5 12.8 11.1 10.4 13.3 5.6 7.0 -2.7 4.8 11.3 9.5 8.5 14.1 7.5 8.7 3.7 9.6 8.9 8.8

-1.6 0.9 -1.4 1.6 -1.3 1.3 -0.5 1.7 3.0 0.9 -0.9 -8.4 -0.8 -1.0 -0.3 1.9 0.6 6.7 1.9 2.0 4.3 -1.2 -1.4 1.1 1.5 3.1 3.3 1.6 0.5 2.2 -1.5 7.1 0.6 4.3 -0.4 3.3 4.5 2.2 2.1 0.7 3.1 -0.8

5.5 7.0 6.0 8.9 6.9 7.1 7.6 7.0 7.5 6.7 6.2 5.5 3.1 5.2 6.0 7.3 6.1 3.8 2.8 5.3 4.8 6.3 5.4 7.7 7.0 3.6 6.2 2.6 5.0 6.2 6.4 5.5 5.6 3.5 4.4 6.8 4.1 5.9 5.8 4.1 5.7

34 94 69 44 1 78 14 76 99 4 9 57 22 19 91 84 83 13 4 70 21 89 46 13 5 80 95 83 50 97 90 94 37 12 87 2 59 58 30 56 83 61

10 38 61 48 2 81 13 47 66 80 99 25 31 8 22 38 37 31 2 96 80 76 87 16 19 66 42 82 15 51 37 8 58 26 66 4 30 85 46 25 59 44

13 71 38 55 91 31 89 96 7 83 11 34 12 6 20 42 3 83 13 26 12 10 20 52 7 44 96 86 96 32 73 92 3 80 66 19 72 83 91

17

24

1.5 0.0 0.8 0.0 0.0 0.2 0.2 0.4 0.0 0.0

21.7 (87) 21.3 (86) 16.48 22.48 20.23 17.13 20.41 16.32 14.98 27.42 31.37 (90) (90) (87) () (88) (83) (89) (83) (86) (82)

Avg Low Avg -Avg Low Avg Low Low High High +Avg Avg Avg -Avg -Avg +Avg Low High High

0.9 20.62 (87)

7 3 57 44 11 39 36 19 5 2 43 15 47 24 99 51 44 48 19 54 2 7 12 4 54 92 63 79 26 9 2 5 12 61 19 37

0.0 22.96 (90) () 10.2 (81) 2.1 10.68 (97) 4.2 10.53 (93) 3.3 6.34 (82) 2.0 13.47 (91) 1.4 5.48 (91) 0.0 5.26 (0) 1.8 17.53 (89) 2.4 14.05 (97) 0.0 () 8.4 () 2.0 10.77 (98) 1.9 11.36 (98) 3.8 7.71 (84) 1.1 9.74 (90) 6.8 10.50 (86) 1.6 5.90 3.5 8.45 0.5 7.69 0.7 3.83 1.9 13.00 (91) (87) (55) (0) (94)

2.1 -3.3

LO QQQ AL [ QQ MA [ QQ MA NR CA NR MA MA CA MA CA LO MA LO CA MA QQQQ QQQQ QQQ QQQQQ QQQ QQQ QQQQ QQ QQQ QQQ

5.9 6.0 1.9 -12.5 3.9 -5.1 1.6 -4.7 3.0 -3.1 4.3 5.4 1.8 0.9 1.7 0.7 0.6 -4.9 0.8 3.5 4.4 0.9 5.9 2.7 2.7 1.0 3.0 2.0 2.3 0.1 -0.2 -1.3 -2.1 -2.5 0.1 -2.9 -3.1 3.0 -3.5 -0.8 -8.1 2.6 1.0 -2.9 -0.5 -0.8 -3.5 -6.4

38 5 29 20 36 5 1 75 4 26 34 15 6 52 78 1 55 32 2 35 5 6 63 10 50 6 45 6 4 16 15 24 52 3 59

Avg Avg Avg -Avg High -Avg Low Avg Low +Avg Avg -Avg Avg -Avg +Avg Low -Avg Avg -Avg

MA QQQQQ AL [ QQQ MA QQQQQ CA QQQQ CA QQQQ NE ] QQQQ MA QQQ MA QQQQ AL [ QQQ

2.0 10.95 (96) 3.2 12.68 (92) 2.8 10.55 (92) 1.7 4.98 (87) 1.5 9.04 (97) 0.5 2.65 (35) 2.5 9.51 (97) 1.3 11.42 (92) 1.3 13.52 (96)

3.4 -8.9 3.3 -8.3 5.2 -0.4 2.3 7.1


Categories

16.5 -0.7 15.5 -2.4 14.9 -0.9 7.1 6.7

E New this month


][ Increase/decrease in rating NR No Morningstar Rating; fund less than three years old.

AL CA LO MA MR NE RI SC

Aggressive Allocation Conservative Allocation Long-Short Moderate Allocation Miscellaneous Sector Market Neutral Retirement Income Communications

SF SH SN SP SR ST SU TA

Financial Health Natural Resources Equity Precious Metals Real Estate Technology Utilities Target-Date 2000-2010

TD TE TG TH TI TJ TK TL

Target Date 2011-2015 Target Date 2016-2020 Target Date 2021-2025 Target Date 2026-2030 Target Date 2031-2035 Target Date 2036-2040 Target Date 2041-2045 Target Date 2050+

Current Portfolio Style


Current Equity Price/ Price/ Style Earn Book Box Ratio Ratio Average Market Cap Top Three Sectors ($Mil) (% of Stock)

Costs
Recent Composition Total # of Turn- (% of Assets) Sales Hold- over Charge Expense ings % Cash Stock Bond Other Foreign % Ratio %

Operations
Total Assets ($Mil)

35

NAV ($)

Portfolio Manager (Tenure Years)

VTMSX 6 PNVDX AVPAX ASVIX ARDFX DHSCX FCPVX JSCVX QRSVX RYPNX SCMVX SKSEX VSIAX ABALX AMECX BERIX CVTRX CVSIX COAGX RPFCX DODBX FAAFX FOCIX FBALX FPURX FSRRX FPACX FKINX GATEX GRSPX HSGFX HSTRX ACEIX JABAX LAALX MAPOX EXDAX EXBAX MERFX MSFRX OAKBX PAXWX 3 3 3 6 3 3 3 3 3 3 6 3 4 1 2 7 4 4 4 1 2 0 7 7 5 4 1 4 2 4 7 1 7 4 4 7 7 7 1 4 7

14.0 16.1 13.1 13.1 13.0 14.8 14.8 11.7 13.4 15.7 12.7 15.2 10.4 12.9 14.2 12.9 13.4 14.2 12.7 15.0 13.6 14.8 14.9 12.5 12.4 13.8 14.0 38.7 12.5 11.7 13.5 12.5 13.4 13.8 12.9 14.6 12.1 13.4 16.3 16.1 16.1 12.4 14.7 13.2

1.6 1.7 1.3 1.6 1.3 1.4 1.1 1.2 1.2 1.4 1.2 1.3 1.0 1.3 1.4 1.8 2.1 2.1 1.6 2.7 2.4 1.8 1.5 1.4 0.4 2.0 2.2 2.0 1.6 1.5 2.1 1.2 2.4 2.1 1.7 2.5 1.8 2.2 2.0 2.0 2.3 1.8 2.3 2.3

1,310 p 20 1,186 a 18 1,232 y 20 2,308 1,489 1,186 374 1,927 1,368 1,637 969 630 800 p y y a p y y p a y 18 25 23 26 25 26 27 22 26 34

a 15 p 18 p 20 r p p t y p d a t t 16 19 19 25 25 16 14 21 25 16

t 15 t 15 t 14 o t a p o t p t p p 15 15 12 21 13 15 11 16 17 13

605

62 40 71

4 5 5 5 2 3 11 0 16 24 6 2

94 95 94 95 97 97 89 98 84 75 94 96

1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25 27 26 28 14 18 0 8 21 10 86 31 29 34 4 49 0 28 0 35 19 36 19 32 68 51 1 36 13 29

-1 0 0 1 0 1 0 0 1 0 1 0 1 0 0 7 1 6 26 37 40 1 34 1 0 1 3 0 51 7 11 -4 18 3 0 11 0 4 0 0 0 -2 1 1 0

4 0 NL 3 4 5 1 0 1 3 2 0 3 8 Clsd NL Clsd NL 5.00 NL Clsd NL NL NL

1.30 1.41

663 2,095 676 6,534 3,019 1,699 5 702 2,557 2,909 64 1,612 56 181 4,579 1,299 53,796 72,043 1,492 4,618 2,419 242 335 11,808 244 276 19,851 18,792 2,380 8,944 63,845 5,648 713 5,285 2,651 9,890 8,693 738 206 1,149 1,113 4,807 5,657 18,164 1,899

Michael Buek (13.2) Management Team Management Team Giele/John (13.9/0.1) Maley/Kuhrt (1.3/1.3) Management Team Charles Myers (4.0) Management Team Steve Scruggs (10.0) Zaino/Hench (14.2/8.1) Arnold Schneider III (13.8) Management Team Michael Buek (14.1) Management Team Management Team Management Team Management Team Management Team Michael B. Orkin (19.8) Davis/Sabol (19.4/6.8) Management Team Bruce Berkowitz (1.4) Bruce Berkowitz (2.4) Management Team Management Team Management Team Steven Romick (19.0) Johnson/Perks (55.3/10.1) Management Team Charles vK. Carlson (25.4) John Hussman (11.9) John Hussman (9.7) Management Team Pinto/Smith (7.1/7.1) Management Team Frels/Kaliebe (19.9/6.4) Management Team Management Team Behren/Shannon (5.4/5.4) Management Team Clyde McGregor (16.6) Christopher Brown (14.2)

0 100

0.12 28.24 1.18 28.23 1.17 18.85 1.24 7.96 1.50 9.79 1.33 23.27 1.13 1.10 1.24 1.16 1.15 14.68 20.57 17.40 11.02 14.62

134 26 543 59 356 120 36 18 67 28 67 94 62 302 68 22 64 38 35 59 45 30 149 47 38 71 55 98

1,104 p 27 1,439 y 22 21,999 a 15 68,875 37,943 7,653 48,338 93,414 14,267 12,847 46,825 7,458 39,534 38,653 6,753 34,779 56,607 58,063 2,959 26,222 19,315 48,720 35,943 14,684 26,942 19,843 19,552 12,458 51,239 19,008 25,568 y p p a a 17 14 25 37 24

y 18 p 15 y 14 p d a d d 15 12 18 11 14

t 18 76 u 15 1,008 p 13 a o y o o t t d p s s t o d y p t o d a p d s s i s s p 14 736 12 1,479 12 90 11 108 13 260 18 17 19 7

3 97 0 100 19 2 5 20 3 6 66 0 4 11 12 3 2 2 34 4 47 71 63 27 45 36 33 58 74 79 2 64 69 13 55 37

3 NL 1 NL 19 9 21 2 16 10 3 7 13 11 2 12 12 2 17 19 1 2 6 13 8 10 23 2 15 21 9 10 12 16 5.75 5.75 NL Clsd Clsd NL 4.75 NL NL NL NL NL NL NL 4.25 5.75 NL NL NL 5.50 NL NL NL NL NL NL 5.75 Clsd NL

1.32 22.49 0.10 28.06 1.43 0.62 0.58 0.65 1.08 1.14 18.85 16.85 12.99 30.94 12.29

f 37 o 18 y 22 y 79 a a u s f a a d r y t a p a a p y d a 22 22 95 26 28 20 30 38 85 23 21 17 28 23 23 20 23 22 26

a 21 p 17 a 19 t 14 y t d d y p y a f s y d y t t o p p o 13 14 3 18 16 13 24 17 12 13 15 16 17 13 13 17 16 20 19

89 493 49 20 332 19 18 42 92

1.19 20.58 0.93 25.94 0.53 69.70 0.75 8.74 0.67 9.98 0.60 18.90 0.59 18.57 0.71 9.28 1.18 27.03 0.63 2.08 0.94 0.91 1.03 0.64 0.81 0.83 1.32 0.79 0.89 1.07 1.33 0.79 0.77 0.95 26.47 22.84 11.82 12.38 8.57 25.43 9.89 65.36 13.10 12.60 15.74 14.30 27.58 22.16

11 1,303 193 12 1,291 154 1 364 35 13 94 32 16 439 36 13 22 16 3 12 15 11 14 11 11 17 15 19 15 257 3 84 58 124 67 43 254 412 22 336 94 239 106 193 9 736 25 678 52 118 643 117 324 48 24 47 38

3 101 7 47 32 64 45 20 6 64 3 6 6 9 4 44 3 15 1 61 71 62 23 44 57 60 70 70

14.3

1.9

40,421.1

Equity Style Box


Val Blnd Grth Lrg Mid Sm

Sectors

Bold # Cheapest Quintile

h Cyclical r t y u
Basic Materials Consumer Cyclical Financial Services Real Estate

j Sensitive i o p a
Communication Svs Energy Industrials Technology

k Defensive s Consumer Def d Healthcare f Utilities

36

Historical Performance
Morningstar Rating vs. Category 5Best Total Return % 05-31-12 YTD 1 Yr Total Return % Category Rank

Historical Risk
Standard Yield DeviaANNUALIZED 1Best, 100Worst 3 Yr 5 Yr 10 Yr YTD 1 Yr 3 Yr 5 Yr 10 Yr % tion Risk Relative to Category

Morningstar 500
Domestic Equity
Allocation (contd) Permanent Portfolio PRPFX T. Rowe Price Balanced RPBAX T. Rowe Price Capital Appreciation PRWCX T. Rowe Price Personal Strat Growth TRSGX T. Rowe Price Personal Strat Income PRSIX T. Rowe Price Retirement 2015 TRRGX Vanguard Balanced Index Adm VBIAX Vanguard LifeStrategy Income Inv VASIX Vanguard STAR Inv VGSTX Vanguard Target Retirement 2025 Inv VTTVX Vanguard Tax-Managed Balanced Adm VTMFX Vanguard Wellesley Income Inv VWINX Vanguard Wellington Inv VWELX U.S. Specialty Funds Allianz RCM Technology Instl DRGTX BlackRock Energy & Resources Inv A SSGRX CGM Realty CGMRX Davis Financial A RPFGX Fidelity Real Estate Investment FRESX Fidelity Select Energy FSENX Fidelity Select Health Care FSPHX Fidelity Select Technology FSPTX Franklin Utilities A FKUTX Harbor Commodity Real Return ST Instl HACMX Hartford Healthcare A HGHAX Janus Global Life Sciences T JAGLX JPMorgan US Real Estate A SUSIX Oppenheimer Gold & Special Minerals A OPGSX PIMCO Commodity Real Ret Strat D PCRDX T. Rowe Price Financial Services PRISX T. Rowe Price Global Technology PRGTX T. Rowe Price Health Sciences PRHSX T. Rowe Price Media & Telecommunications PRMTX T. Rowe Price New Era PRNEX T. Rowe Price Real Estate TRREX T. Rowe Price Science & Tech PRSCX Third Avenue Real Estate Value Instl TAREX Vanguard Energy Inv VGENX Vanguard Health Care Inv VGHCX Vanguard Precious Metals and Mining Inv VGPMX Vanguard REIT Index Adm VGSLX S&P 500 Index BarCap US Agg Bond TR USD Dow Jones Moderate Portfolio Index S&P 500 Index
Legend Red # Lowest return in group Green # Highest return in group Italic # Extended performance Morningstar Analyst Rating

(R)

CA MA MA AL CA TD MA CA MA TG CA CA MA

QQQQQ QQQQ QQQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQQ QQQQQ

2.1 -3.3 0.2 -4.2 3.5 -1.8 5.1 4.0 3.3 3.5 4.2 2.5 3.4 2.9 4.3 3.1 3.2 1.2 -4.9 -0.9 -2.8 2.3 2.5 -1.8 -3.5 3.9 6.5 0.6

7.5 10.9 11.5 13.7 13.0 10.3 11.9 12.6 8.2 11.1 11.5 10.6 12.9 11.6 17.0 3.4 26.9 10.7 31.8 5.5 19.4 20.8 16.5 8.3 15.8 16.6 28.2 5.1 8.8 8.4 20.4 24.0 23.9 3.4 29.1 14.3 12.6 4.2 14.0 4.6 29.2

-0.3 3.1 7.2 10.2 1.6 5.5 3.0 -0.1 3.4 1.3 2.9 3.8 1.7 0.3 3.2 5.8 2.7 7.6 5.7 6.0 5.6 5.0 5.6 5.2 6.6 6.3

97 35 6 12 27 25 16 63 41 58 8 41 49 80 96 99 43 13 42 40 16 14 17 33 24 50 77 23 33 26 20 7 46 10 96 4 66 86 75 25

93 38 10 25 61 58 5 10 38 24 3 2 13 84 90 99 20 21 53 35 45 2 25 44 25 76 81 41 41 30 19 5 63 40 82 46 37 36 93 30

23 28 4 7 34 4 11 73 37 21 26 8 26 32 63 74 10 6 17 29 7 9 13 53 43 43 3 11 31 9 1 3 54 22 60 74 47 69 11 19

1 26

1 15

10.2 (81) 0.9 11.17 (66) 2.2 12.02 (99) 1.5 11.35 (93) 1.5 16.25 (98) 2.5 9.59 (99) 2.1 12.43 (99) 2.2 9.70 (97) 2.5 3.95 (79) 2.5 11.40 (99) 2.3 12.81 (99) 2.4 8.04 (93) 3.5 5.85 (75) 3.0 10.43 (96) 0.0 2.2 0.9 1.6 0.8 0.8 0.0 0.0 3.3 1.5 0.0 0.0 1.9 2.1 28.2 1.0 0.0 0.0 0.5 1.0 2.1 0.0 0.0 2.0 1.6 19.42 34.25 24.75 16.62 22.80 27.47 14.32 21.97 9.72 18.68 15.48 13.95 20.91 31.86 18.98 21.84 22.81 16.35 18.99 25.31 21.86 21.96 19.40 24.23 10.95 (78) (64) (76) (94) (67) (74) (75) (85) (35) (94) (65) (76) (67) (23) (93) (86) (87) (70) (89) (81) (66) (85) (88) (79) (69)

High +Avg Avg +Avg +Avg High -Avg Low Avg Avg Avg -Avg -Avg -Avg +Avg High -Avg +Avg Avg Avg +Avg Low Avg Avg Avg Avg +Avg Avg Avg +Avg Avg Avg Avg +Avg +Avg -Avg -Avg Low +Avg Avg

6 1 26 9 30 10 26 7 13 19 24 19 34 2 9 35 59 5 28 47 44 36 13 3 71 35 78 61 7 45 5 12 1 59 48 62 38 8 59 95 22 35 12 25 7 5 11 4 1 22 40 41 47 33 34 45 56 47 22 37 6 11 1 62 25 69 72 19 41 71 36

ST QQQQ EE QQQ SR QQQQ SF ] QQQQ SR QQQ EE QQQ SH QQQ ST QQQ SU QQQQ BB ] QQQQQ SH SH SR SP BB QQQ QQQ QQ QQQ QQQQQ

5.0 -15.2 -18.1 -35.3 6.9 -4.1 7.1 -5.8 9.3 4.0 -9.0 -23.8 8.1 -0.1 9.2 -7.2 2.6 11.2 -4.8 -18.1 10.3 -0.9 11.1 3.0 8.4 1.6 -17.5 -35.4 -5.0 -18.4 8.7 -8.7 8.4 -5.5 15.7 6.2 9.8 -1.0 -8.9 -26.3 9.8 3.2 0.7 -13.5 11.8 -8.1 -9.7 -21.0 3.7 -0.2 -17.3 -36.4 8.7 3.5 5.2 -0.4 2.3 7.1 2.3 -2.7 5.2 -0.4

3.8 9.0 -4.2 13.0 3.1 17.1 -5.1 2.8 -0.7 10.0 -3.6 4.4 5.0 2.9 9.2 6.6 7.2 8.7

2.2 6.7 4.6 6.1 -1.9 9.6 4.0 13.7 -0.1 -7.7 1.7 6.6 9.6 8.4 10.9 5.3 15.1 -4.0 8.2 -0.7 10.7 2.2 4.9 -5.7 7.4 -1.2 12.0 3.0 7.1 -5.1 10.7 0.1 10.1 4.1 5.7 6.5 4.1

SF QQQ ST [ QQQQ SH QQQQQ SC QQQQQ SN QQQ SR QQQ ST QQQ GR QQQ EE QQQQQ SH [ QQQ SP SR QQQ QQQ

2.2 31.31 (60) 3.4 21.06 (70)

14.9 -0.9 7.1 6.7 10.7 2.0 14.9 -0.9


SH SN SP SR ST SU TA TD

Categories

E New this month


][ Increase/decrease in rating NR No Morningstar Rating; fund less than three years old.

BB CA EE GR LO MA SC SF

Commodities Broad Basket Conservative Allocation Equity Energy Global Real Estate Long-Short Moderate Allocation Communications Financial

Health Natural Resources Equity Precious Metals Real Estate Technology Utilities Target-Date 2000-2010 Target Date 2011-2015

TE TG TH TI TJ TK TL RI

Target Date 2016-2020 Target Date 2021-2025 Target Date 2026-2030 Target Date 2031-2035 Target Date 2036-2040 Target Date 2041-2045 Target Date 2050+ Retirement Income

Current Portfolio Style


Current Equity Price/ Price/ Style Earn Book Box Ratio Ratio Average Market Cap Top Three Sectors ($Mil) (% of Stock)

Costs
Recent Composition Total # of Turn- (% of Assets) Sales Hold- over Charge Expense ings % Cash Stock Bond Other Foreign % Ratio %

Operations
Total Assets ($Mil)

37

NAV ($)

Portfolio Manager (Tenure Years)

PRPFX RPBAX PRWCX TRSGX PRSIX TRRGX VBIAX VASIX VGSTX VTTVX VTMFX VWINX

4 4 4 7 7 7 4 4 7 4 4 1

12.9 13.8 13.2 13.8 13.2 13.2 13.1 14.1 11.8 12.2 11.8 14.2 12.9 12.6 15.6 17.1 34.9 13.1 46.5 10.4 15.5 18.3 14.6 14.5 15.9 40.9 7.0 12.6 19.7 19.1 19.1 9.9 49.1 19.0 15.9 10.8 13.5 11.1 42.6 14.3

1.8 1.9 1.8 2.2 1.9 1.9 1.9 2.0 1.7 1.8 1.7 2.0 2.2 1.8 3.0 1.3 2.2 1.3 2.3 1.5 2.3 3.0 1.5 2.2 2.9 2.1 1.5 1.2 2.6 3.1 2.5 1.7 2.4 2.2 0.8 1.5 2.1 1.2 2.1 1.9

21,999 a 15 18,366 u 22 37,038 y 16 36,902 28,801 28,658 26,566 31,164 23,997 29,033 24,044 36,721 62,199 d y y a a a a a a s 19 17 17 16 19 14 20 14 18 19

y 14 o 18 a 15 p a a y y y y y y p 17 16 16 14 13 14 14 14 13 14

p 13 149 r 18 162 9 t 14 1,326 58 a t t p p p d p p d 14 215 15 1,273 15 1,374 13 19 12 9,054 12 4 14 12 12 4 12 1,388 13 1,077 968 81 49 56 15 67 43 24 23 12 48 38

19 21 3 19 2 15 5 3 5 3 2 2 2 1

47 31 64 60 84 44 63 59 20 60 71 48 35 64

25 22 32 16 13 39 31 37 74 36 26 50 60 33 0 0 0 0 0 0 0 0 2 73

7 25 1 5 1 1 1 1 1 1 1 0 3 2 0 2 0 0 0 0 0 0 0 14 3 1 0 1 1 5 3 1 2 0 1 3 0 0 2 1 0

19 7 NL 23 NL 7 30 27 26 3 13 26 23 0 14 NL NL NL NL NL NL NL NL NL NL

1.43 0.71 46.16 0.63 19.52 0.71 0.77 0.51 0.65 0.10 0.13 0.34 0.18 0.12 0.25 21.67 22.99 16.21 11.98 22.58 14.42 19.36 12.63 21.32 23.46

1,299 16,920 3,286 12,674 1,156 1,026 6,902 15,874 2,589 13,994 17,625 892 29,255 59,270 927 901 1,506 483 3,385 1,856 2,140 2,153 4,037 318 398 772 1,366 2,440 19,297 316 690 4,154 2,241 4,703 3,589 3,050 1,522 10,892 21,474 3,105 23,987

Michael Cuggino (9.1) Charles Shriver (1.1) David Giroux (5.9) Charles Shriver (1.1) Charles Shriver (1.1) Jerome Clark (8.3) Davis/Perre (7.1/11.4) Management Team Duane Kelly (2.9) Duane Kelly (8.6) Kobs/Perre (3.9/12.4) Keogh/Reckmeyer III (3.9/4.4) Bousa/Keogh (11.4/8.4) Chen/Price, Jr. (16.5/16.5) Rice, III/Walsh, III (6.4/6.4) G. Heebner (18.1) Kenneth Feinberg (15.1) Steve Buller (14.4) John Dowd (5.9) Edward Yoon (3.7) Charlie Chai (5.4) Kohli/Schmicker (13.4/2.4) Mihir Worah (3.8) Management Team Andrew Acker (5.1) Management Team Shanquan Li (14.9) Mihir Worah (4.4) Eric Veiel (1.6) Joshua Spencer (0.0) Kris Jenner (12.4) Daniel Martino (2.7) Timothy Parker (1.9) David Lee (14.6) Kennard Allen (3.4) Winer/Wolf (13.7/1.7) Management Team Hynes/Owens (4.0/28.1) French/Vaight (16.0/4.4) Gerard OReilly (16.1)

VWELX 1 DRGTX SSGRX CGMRX RPFGX FRESX FSENX FSPHX FSPTX FKUTX HACMX HGHAX JAGLX SUSIX OPGSX PCRDX PRISX PRGTX PRHSX PRMTX PRNEX TRREX PRSCX TAREX VGENX VGHCX 7 8 8 4 5 1 7 7 1 0 7 8 5 8 0 1 7 8 7 4 5 7 2 4 4

73,177 y 17 47,239 2,921 8,292 25,618 10,390 27,351 9,972 24,155 12,725 10,536 10,001 11,532 4,847 12,283 15,200 6,869 36,881 16,146 8,662 19,795 5,598 43,538 27,729 a 84 o 77 u 96 y 87 u100 o 95 d 88 a 89 f 89 d 95 d 98 u 98 r100 y a d i o u a u o d 91 89 90 42 59 96 86 85 95 95

d 15 t 7 r 22 r 4 u 5 r 4 a 6 p 4 o 7 s 3 a 1 t 2 t t a a r t t t r a 4 5 6 34 25 4 9 15 4 2

a 14 y p s p s t i a s u p p t p i p s 5 1 3 1 3 2 3 2 1 2 3 1 22 9 2 1 2

13 NL 10 30 0 19 0 17 16 14 6 14 20 18 1 86 38 3 27 18 18 35 0 15 62 43 20 NL 5.25 NL 4.75 NL NL NL NL 4.25 NL 5.50 NL 5.25 5.75 NL NL NL NL NL NL NL NL NL NL NL

0.27 32.12 1.25 1.27 0.88 0.91 0.85 0.82 0.80 0.81 0.76 0.94 1.49 0.97 1.17 1.07 1.24 0.98 0.98 0.82 0.83 0.67 0.78 0.90 1.15 0.34 0.35 46.33 26.40 28.60 28.24 30.13 44.84 128.70 94.46 13.60 6.56 18.65 27.66 17.43 28.63 6.06 12.90 9.70 37.73 51.51 38.32 20.05 25.78 22.70 53.26 133.34

111 171 155 111 21 69 27 12 48 25 77 90 102 130 292 196 57 5 581 89 44 74 54 30 67 67 37 177 78 40 120 110 213 23 59 41 105 26 39 73 52 146 88 49 115 5 77 32 24 8 22 10

11 89 0 98 0 100 10 90 1 99 0 100 1 99 8 92 1 97 13 0 2 1 1 0 -32 3 2 6 5 2 7 4 7 4 5 1 1

95 0 99 0 99 0 99 0 0 131 92 95 94 93 98 92 93 92 96 93 98 99 0 0 0 0 0 0 0 1 0 0 0 0

VGPMX 8 VGSLX 5

3,101 r 96 7,763 u100 40,421.1

p 4

88 NL 0 NL

0.29 15.55 0.10 88.61

14.3
Equity Style Box
Val Blnd Grth Lrg Mid Sm

1.9

40,421.1
Sectors Bold # Cheapest Quintile

h Cyclical r t y u
Basic Materials Consumer Cyclical Financial Services Real Estate

j Sensitive i o p a
Communication Svs Energy Industrials Technology

k Defensive s Consumer Def d Healthcare f Utilities

38

Historical Performance
Morningstar Rating vs. Category 5Best Total Return % 05-31-12 YTD 1 Yr Total Return % Category Rank

Historical Risk
Standard Yield DeviaANNUALIZED 1Best, 100Worst 3 Yr 5 Yr 10 Yr YTD 1 Yr 3 Yr 5 Yr 10 Yr % tion Risk Relative to Category

Morningstar 500
International Equity
Foreign Stock American Beacon Intl Equity Inv AAIPX American Century Intl Discovery Inv TWEGX American Funds EuroPacific Gr A AEPGX American Funds Intl Gr And Inc A IGAAX Artio International Equity A BJBIX Artio International Equity II A JETAX Artisan International Inv ARTIX Artisan International Small Cap Investor ARTJX Artisan International Value Investor ARTKX Causeway International Value Inv CIVVX Columbia Acorn International Z ACINX Dodge & Cox International Stock DODFX Fidelity Diversified International FDIVX Fidelity International Discovery FIGRX Fidelity International Small Cap FISMX Fidelity Spartan International Index Inv FSIIX First Eagle Overseas A SGOVX Harbor International Growth Inv HIIGX Harbor International Instl HAINX Harding Loevner International Eq Inv HLMNX Janus Overseas T JAOSX Litman Gregory Masters Intl Instl MSILX Longleaf Partners International LLINX MainStay ICAP International I ICEUX Manning & Napier World Opportunities A EXWAX Marsico International Opportunities MIOFX Neuberger Berman International Inv NBISX Oakmark International I OAKIX Oakmark International Small Cap I OAKEX Oppenheimer International Growth A OIGAX Scout International UMBWX T. Rowe Price International Discovery PRIDX T. Rowe Price International Stock Fd PRITX T. Rowe Price Intl Gr & Inc TRIGX TCW International Small Cap I TGICX Third Avenue International Value Instl TAVIX Thornburg International Value A TGVAX Tweedy, Browne Global Value TBGVX USAA International USIFX Vanguard Developed Markets Index Admiral VDMAX Vanguard FTSE All-Wld ex-US Idx Admiral VFWAX Vanguard International Explorer Inv VINEX Vanguard International Growth Inv VWIGX Vanguard International Value Inv VTRIX Vanguard Tax-Managed Intl Adm VTMGX Vanguard Total Intl Stock Index Admiral VTIAX William Blair International Growth N WBIGX World Stock American Funds Capital World G/I A CWGIX American Funds New Perspective A ANWPX MSCI EAFE Index
Legend Red # Lowest return in group Green # Highest return in group Italic # Extended performance Morningstar Analyst Rating

(R)

FV FR FB QQQ QQ QQQQ

0.0 -19.0 -3.5 -22.3 -1.4 -22.6 0.3 -18.3 -2.4 -0.1 -0.4 4.9 8.8 0.0 -0.1 4.3 -2.8 0.5 0.3 1.9 -3.3 -0.7 0.8 1.4 -0.3 -2.8 -3.1 -8.1 -3.0 -0.9 0.2 0.2 -1.3 1.5 0.9 0.7 7.1 0.7 -2.8 2.9 -0.4 -0.5 2.5 -0.1 -3.2 -2.5 1.1 0.1 -2.7 -3.3 -2.2 3.0 -16.4 -25.7 -24.6 -9.9 -13.5 -12.9 -19.6 -14.6 -22.4 -17.6 -18.5 -18.8 -20.4 -9.7 -16.5 -16.8 -15.6 -32.7 -24.6 -29.0 -18.8 -24.3 -17.4 -18.7 -19.8 -16.8 -14.5 -16.6 -13.1 -16.7 -20.2 -24.2 -20.9 -19.6 -6.6 -16.7 -20.5 -20.7 -22.6 -18.8 -20.1 -20.7 -20.7 -14.2

6.8 3.1 6.8 4.9 6.0 -0.7 -0.4 8.6 11.2 10.8 6.4 11.6 5.3 4.3 4.5 9.8 3.3 8.8 3.7 8.2 9.2 -1.7 3.4 -1.0 3.8 4.1 3.5 8.2 8.0 12.1 9.2 7.5 12.1 8.4 5.4 3.3 5.3 12.1 7.4 3.3 4.4 7.3 7.1 2.6 3.2 4.2 8.8 8.6 7.5 10.4 3.4

-5.9 -7.1 -7.3 -3.2

5.8 4.0 7.1 6.4

40 95 19 63 27 34 1 6 27 7 42 73 16 21 72 82 75 39 8 69 94 77 99 34 41 59 22 47 42 34 41 9 43 31 67 71 71 1 66 79 65 54 62 29 82 61 11 45 16

51 91 28 11 96 93 1 32 3 16 34 85 22 31 73 52 9 46 15 42 97 93 99 12 92 59 33 46 26 29 49 31 49 25 98 48 81 1 49 55 59 86 74 23 58 58 24 52 23

36 98 33 17 97 96 5 55 2 9 51 26 42 38 70 59 49 90 6 22 100 57 97 22 46 91 5 7 17 23 52 45 37 12 94 72 1 55 58 40 74 57 49 61 45 32 69 32

27 89 9

36 65 8

20.3 (92)

Avg High -Avg Low Avg Avg High Avg Low High -Avg +Avg Avg +Avg Avg Avg Low Avg High -Avg High +Avg +Avg Avg High Avg -Avg +Avg +Avg Avg Avg Avg +Avg Avg Low -Avg Low +Avg

3.6 21.64 (98) 0.0 24.34 (87) 1.7 19.84 (96) 3.5 1.8 1.6 1.4 0.4 0.1 3.3 2.9 2.7 1.9 1.5 1.0 3.5 1.9 0.0 2.5 0.5 0.0 0.2 1.9 2.2 3.5 0.0 1.0 0.8 0.1 0.8 1.5 1.0 1.5 3.0 0.9 1.9 1.3 1.8 17.69 20.80 20.78 21.83 20.31 17.56 22.76 18.76 21.99 20.30 20.93 19.76 20.49 12.32 20.72 22.48 19.05 26.42 21.07 20.97 20.25 22.68 21.01 18.44 21.08 20.99 19.73 20.29 19.03 21.12 21.47 17.89 18.62 12.18 (96) (91) (91) (91) (83) (95) (96) (90) (97) (96) (96) (92) (99) (88) (91) (95) (93) (78) (95) (92) (96) (94) (90) (92) (93) (90) (95) (95) (90) (93) (98) () (90) (95) (88)

FB ] QQQQ FB QQQ FB QQ FB QQQQ FR QQQQ FB QQQQQ FV ] QQQQ FR QQQQ FB [ QQQ FB QQQ FB FR FB FQ FG QQQQ QQQ QQQ QQQQ QQ

-9.7 4.5 -8.3 -3.6 4.8 -2.0 12.1 -0.7 -5.7 5.0 -1.4 10.2 -6.1 6.5 -6.5 5.2 -6.1 5.4 -3.7 -7.2 4.1 1.3 10.5 -5.5 2.9 -2.8 -1.2 -6.0 -5.4 -9.1 -5.9 -4.8 -5.9 -6.2 -3.9 8.2 5.6 7.9 5.1 1.4 5.7 5.9 5.0 6.7 5.9

90 28 79 13 24 24 10 1 9 11 40 46 19 18 7 19

40 17 52 63 41 3 20 73 92 5 10 80 29 86 12 21 77 42 15 32 27 18 31 44 26 13 37 1 2 44 7 20 91 12 11 55 6 12 39 23 17 12 62 18 12 15 9

FB [ QQQQ FG QQQQQ FG QQ FB QQQQ FB [ Q FV QQQQ FB QQQQ FG QQQ FB QQQQ FB [ QQQQ FQ FG FG FR FG QQQ QQQ QQQQ QQQQ QQQ

-4.6 8.3 -3.0 6.4 -2.4 6.8 -2.3 10.9 -3.7 4.4 -7.0 -5.3 -3.3 -1.8 -3.2 -7.2 -5.4 -6.3 -4.1 -6.7 -7.1 -5.9 -5.4 -3.8 -2.6 -0.3 -7.3 5.1 7.5 6.9 5.8 6.0 4.0 7.8 5.5 4.8 4.2 5.3 5.6 4.4 7.0 6.6 4.0

FV ] QQQQ FR NR FA ] QQQQ FG QQQ FV QQQQQ FG QQQQ FB WWW FB WWW FQ QQQ FG [ QQQ FV ] QQQQ FB QQQ FB WWWW FG QQQ [ QQQ QQQQ

32 33 63 42 29 68 50 51 45 23 60 36 70 34 12 24 37 18 42 15 24

1.4 20.95 (97) () () 2.6 20.96 (93) 2.0 21.96 (94) 3.3 21.38 (97) 3.6 20.59 (99) 3.2 () 0.0 19.23 (91) 18.7 (87) 2.9 18.10 (95) 1.0 17.63 (93)

Avg +Avg Avg Avg -Avg -Avg -Avg

1.1 -12.9 1.7 -12.6 4.4 -9.1 -3.8 -20.5

Categories

E New this month


][ Increase/decrease in rating NR No Morningstar Rating; fund less than three years old.

FA FB FG FQ FR

ForeignSmall/Mid Value ForeignLarge Blend ForeignLarge Growth Foreign Small/Mid Blend ForeignSmall/Mid Growth

FV SC SF SH SN

ForeignLarge Value Communications Financial Health Natural Resources

SP SR SU ST

Equity Precious Metals Real Estate Utilities Technology

Current Portfolio Style


Current Equity Price/ Style Cash Box Flow Average Market Cap ($Mil) Regional Exposure (% of Stock) UK/W. North Latin Asia exEurope Amer Amer Japan Japan Other Total # of Holdings Turnover % Recent Composition (% of Assets) Cash Stock Bond Other

Costs

Operations

39

Sales Total Charge Expense Assets % Ratio% NAV($) ($Mil) Portfolio Manager (Tenure Years)

AAIPX 4 TWEGX 8 AEPGX 7 IGAAX BJBIX JETAX ARTIX ARTJX ARTKX CIVVX ACINX DODFX FDIVX FIGRX FISMX FSIIX SGOVX HIIGX HAINX HLMNX JAOSX MSILX LLINX ICEUX EXWAX MIOFX NBISX OAKIX OAKEX OIGAX UMBWX PRIDX PRITX TRIGX TGICX TAVIX TGVAX TBGVX USIFX VDMAX VFWAX VINEX VWIGX VTRIX VTMGX VTIAX WBIGX 4 7 7 7 8 4 4 8 4 7 7 8 4 4 7 7 7 4 7 1 1 7 7 4 4 5 7 7 8 7 1 9 2 7 4 7 4 4 5 7 1 4 4 7 CWGIX 4 ANWPX 7

5.3 4.0 8.0 3.8 5.6 6.0 6.1 5.2 9.8 4.9 4.4 8.5 2.7 3.5 3.1 7.5 3.4 6.6 6.8 5.6 5.0 2.3 2.4 7.0 2.8 4.9 6.7 3.7 1.4 6.4 7.6 6.4 6.5 3.9 2.3 6.9 3.5 3.3 5.9 5.1 3.4 3.8 5.2 2.9 4.0 3.4 3.8 5.3 6.4 3.9 6.5

15,311 30,062 4,628 32,150 31,378 22,907 26,194 32,638 2,203 12,652 23,459 2,421 30,338 27,025 17,943 1,449 29,042 7,137 26,410 46,752 29,565 13,965 18,107 8,816 45,600 13,640 25,590 10,284 23,260 1,620 10,589 32,308 1,667 21,347 22,754 798 4,576 45,375 22,628 34,593 29,654 25,797 1,446 30,288 36,522 30,205 18,605 15,006 22,695 41,171 43,408

52 74 58 50 55 46 49 54 59 69 74 31 57 57 56 47 62 34 54 70 50 20 60 56 69 69 55 65 72 54 80 57 48 47 62 18 34 57 74 66 63 43 55 53 50 63 43 52 28 42 34

7 2 7 4 6 6 6 8 0 18 0 10 7 10 6 3 0 3 10 0 8 19 5 13 0 13 11 9 2 0 2 10 3 10 1 28 26 10 10 2 0 8 1 4 3 0 9 4 49 35 47

3 0 1 4 4 1 0 1 4 0 0 4 6 3 2 0 0 5 8 4 7 15 6 13 2 4 6 1 0 0 2 6 4 6 1 8 2 5 5 2 0 6 1 8 5 0 5 7 3 2 3

18 13 12 10 8 13 13 13 4 11 16 18 14 16 17 29 21 41 12 10 14 8 12 5 20 7 12 14 21 28 8 13 15 10 20 24 8 11 7 14 22 14 20 9 21 22 16 11 6 2 5

17 11 20 27 23 21 19 24 32 2 10 30 7 13 15 18 15 15 14 16 16 39 15 12 9 7 14 10 5 15 8 11 27 25 15 23 24 13 4 15 14 25 23 24 16 13 23 21 11 16 7

53 33 167 24 31 41 51 70 45 31 39 32 16 45 75 47 9 12 112 12 15 32 127 49 62 52 103 45 45 46 19 13 49 43 26 86 24 21 9 25 5 6 43 43 39 5 3 103 65 27 24

2 6 0 8 3 4 4 3 2 10 1 0 0 3 2 1 3 15 4 4 0 1 0 5 5 4 3 3 3 3 3 6 7 4 4 2 8 0 10 1 0 0 5 4 4 0 1 2 2 5 5

79 92 96 89 93 92 95 97 98 88 99 99 99 96 98 98 97 74 96 95 95 99 99 91 95 96 97 97 97 97 97 94 92 96 96 97 89 96 90 99 98 97 94 95 86 99 96 98 95 91 93

1 0 0 0 1 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2 0

1 2 3 2 3 3 1 0 0 0 0 1 1 0 0 2 0 11 0 1 5 0 1 4 0 0 0 1 0 0 0 0 1 0 0 2 2 4 -1 0 2 3 1 0 9 1 4 0 1 1 2

NL NL 5.75 5.75 Clsd NL NL Clsd Clsd NL NL NL NL NL NL NL 5.00 NL NL NL NL NL NL NL NL NL Clsd NL NL 5.75 NL NL NL NL NL NL 4.50 NL NL NL NL NL NL NL NL NL NL 5.75 5.75

1.43 1.07 1.42 0.84 0.89 1.29 1.28 1.22 1.50 1.18 1.23 0.95 0.64 0.87 0.92 1.23 0.11 1.14 1.23 0.77 1.25 0.93 1.11 1.37 0.95 1.09 1.56 1.45 1.06 1.38 1.32 0.94 1.23 0.85 0.87 1.44 1.40 1.25 1.38 1.21 0.12 0.18 0.42 0.47 0.39 0.12 0.18 1.45 1.42 0.79 0.77

1,047

0 173 2 126 6 418 3 157 13 248 12 159 0 81 1 51 0 46 0 63 7 239 10 97 2 248 4 3 1 2 1 198 360 971 164 68

13.42 1,210 Management Team 8.78 594 Brady/Kopinski (18.2/15.1) 35.27 100,436 Management Team 26.68 22.09 9.47 20.80 18.26 5,138 2,910 2,161 6,891 677 Management Team Pell/Younes (17.2/17.2) Pell/Younes (7.1/7.1) Management Team Yockey/Hamker (10.5/0.3)

25.08 4,014 Samra/OKeefe (9.7/5.6) 10.72 1,402 Management Team 35.80 5,513 Egan/Mendes (9.1/9.1) 28.41 34,242 Management Team 25.64 20,672 William Bower (11.2) 27.68 17.85 28.76 20.21 10.51 7,520 738 5,904 9,888 1,211 William Kennedy (7.6) Management Team Management Team Management Team Gendelman/Malhotra (8.3/1.3)

0 103 6 59 0 66 3 69 0 26 0 41 0 84 1 64 1 107 0 56 3 1 4 4 2 66 127 102 225 129

53.16 30,683 Management Team 13.32 1,549 Management Team 30.55 8,413 Brent Lynn (11.4) 12.19 1,268 Management Team 10.94 1,266 Management Team 25.54 6.57 11.32 15.06 16.34 12.17 25.92 28.17 39.94 12.37 900 5,767 125 225 7,335 1,343 5,527 7,005 2,610 8,295 Senser/Wenzel (14.4/14.4) Management Team Gendelman/Malhotra (11.9/1.6) Benjamin Segal (8.4) Herro/Taylor (19.7/3.4) Herro/Manelli (16.6/1.1) Dunphy/Evans (0.2/16.2) Management Team Justin Thomson (13.4) Robert Smith (4.7)

1 122 0 62 6 50 4 95 0 104 2 83 1 944 5 2,323 1 339 3 194 4 250 1 898 5 6,422 5 214 2 3 437 3 276

11.20 4,963 Jonathan Matthews (1.9) 7.15 28 Rohit Sah (1.3) 14.02 1,046 Fine/Wadhwaney (0.4/10.4) 23.91 25,006 Management Team 22.40 4,481 Management Team 21.59 1,550 Ling/Smith (2.7/9.9) 23.66 1,466 Donald Butler (1.5) 23.93 10,033 Ryan Ludt (3.8) 12.96 1,730 Dobbs/Thomas (12.4/2.0) 16.36 15,593 Management Team 25.91 5,801 Management Team 9.46 8,995 Donald Butler (3.9) 21.35 30,829 Michael Perre (3.8) 19.24 3,142 W. Greig (15.9) 1,265 32.54 70,713 Management Team 27.31 43,508 Management Team

Equity Style Box


Val Blnd Grth Lrg Mid Sm

Bold # Cheapest Quintile

40

Historical Performance
Morningstar Rating vs. Category 5Best Total Return % 05-31-12 YTD 1 Yr Total Return % Category Rank

Historical Risk
Standard Yield DeviaANNUALIZED 1Best, 100Worst 3 Yr 5 Yr 10 Yr YTD 1 Yr 3 Yr 5 Yr 10 Yr % tion Risk Relative to Category

Morningstar 500
International Equity
World Stock (contd) American Funds SMALLCAP World A SMCWX Artisan Global Value Investor ARTGX Artisan Growth Opportunities Inv ARTRX Dodge & Cox Global Stock DODWX Fidelity Worldwide FWWFX FPA Paramount FPRAX Janus Global Research T JARFX Janus Global Select T JORNX Janus Worldwide T JAWWX Marsico Global MGLBX Mutual Global Discovery A TEDIX Mutual Quest A TEQIX Oakmark Global I OAKGX Oakmark Global Select I OAKWX Old Westbury Global Small & Mid Cap OWSMX Oppenheimer Global A OPPAX Oppenheimer Global Opportunities A OPGIX Perkins Global Value T JGVAX PIMCO EqS Pathfinder D PTHDX Polaris Global Value PGVFX T. Rowe Price Global Stock PRGSX Third Avenue Value Instl TAVFX Tweedy, Browne Value TWEBX Tweedy, Browne Worldwide Hi Div Yld Val TBHDX Vanguard Global Equity Inv VHGEX Regional Stock Matthews Asia Dividend Investor MAPIX Matthews Asian Growth & Inc Investor MACSX Matthews China Investor MCHFX Matthews India Investor MINDX Matthews Pacific Tiger Investor MAPTX Mutual European A TEMIX T. Rowe Price New Asia PRASX Vanguard European Stock Index Adm VEUSX Diversified Emerg. Mkts. American Funds New World A NEWFX Lazard Emerging Markets Equity Open LZOEX Oppenheimer Developing Markets A ODMAX T. Rowe Price Emerging Markets Stock PRMSX Vanguard Emerging Mkts Stock Idx Adm VEMAX World Allocation American Funds Capital Inc Bldr A CAIBX BlackRock Global Allocation Inv A MDLOX First Eagle Global A SGENX IVA Worldwide A IVWAX PIMCO All Asset All Authority D PAUDX PIMCO All Asset D PASDX PIMCO Global Multi-Asset D PGMDX MSCI EAFE Index MSCI World Index MSCI Europe Index MSCI Emerging Markets Index
Legend Red # Lowest return in group Green # Highest return in group Italic # Extended performance Morningstar Analyst Rating

(R)

DP PJ CH EI PJ ES PJ ES

QQQQ QQQQQ QQQQQ QQQ QQQQ QQQQ QQQQ [ QQ QQ [ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQQ QQQ QQQQ QQQQ NR QQQ QQ ] QQ QQQQ QQQQ QQQ QQQQQ QQQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQ ] QQQQ QQQQ QQQQQ QQ QQQQ QQQ QQQ [ QQQQ QQQ ] QQQQQ QQQQQ QQQ

1.1 8.0 1.5 13.1 0.8 3.0

-12.9 -11.6 -3.9 -4.1 -16.4 -10.7

8.6 14.4 14.8 18.6 9.7 10.8 15.0 12.4 6.5 6.2 14.7 6.8 7.6 8.6 11.7 12.0 9.3 10.9 10.4 12.9 7.7 3.6 11.3 10.1 10.1 13.3 9.6 6.6 5.3 11.9 5.3 13.8 3.1 7.3 8.4 9.4 11.8 8.2 7.3 7.7 9.9 6.6 10.9 8.5 8.7 10.3 8.0 3.4 9.0 2.9 5.4

-3.8 -1.9 -1.8 1.1 0.0 -3.3 -6.2 -1.3 -1.2 -3.3 -0.4 2.3 -3.4 0.0 -1.8 -5.8 -6.1 -6.5 -0.3 -5.4

4.4 7.7 5.6 6.4 5.9 0.7 7.1 5.8 7.1 5.1 8.5 4.0 5.6 4.3 3.9 3.2 5.6

5 48 1 55 27 49 15 96 62 2 68 54 57 22 34 67 38 63 72 23 39 20 49 91 32 30 35 85 41 54 55 28 75 25 30 21 46 61 37 58 74 91 14 22 64

40 6 6 76 32 15 29 95 79 20 24 14 67 33 52 76 65 8 36 39 58 89 10 17 55 2 7 42 59 23 14 15 64 15 27 22 46 53 15 58 38 66 6 12 51

9 8 2 39 29 6 16 81 82 8 77 68 56 21 19 45 28 32 13 67 93 26 35 35 1 37 15 1 26 35 22 66 28 17 8 33 53 23 88 10 52 47 17 67

29 5 26 39 5 27 10 44 34 83 98 22 14 22 35 43 13 14 2 45 10 27 77 50 2 65 42

0.3 0.0 0.0 1.9 0.4 0.0 0.1 1.1 0.8 0.0 1.7 2.8 0.0 0.0 0.7 2.0 0.6 2.8 0.5 1.0 0.7 2.2 1.3 2.0 2.2 2.5 2.9 1.2 0.5 0.5

18.7 19.32 15.88 19.55 20.89 18.75 20.05 18.76 22.81 19.54 20.42 12.60 11.64 19.88 20.58 18.19 19.76 21.20 10.95 20.10 21.06 22.02 13.01 13.80 18.98 14.14 13.02 21.92 25.77 19.99

(87) (85) (89) (80) (94) (90) (69) (91) (82) (89) (81) (91) (88) (91) (85) (87) (94) (75) (86) () (88) (88) (77) (87) (93) (93) (77) (76) (60) (45) (66)

Avg -Avg +Avg +Avg Avg +Avg Avg High Avg +Avg Low Low Avg +Avg Avg Avg +Avg Low +Avg +Avg +Avg Low Low Avg Low Low -Avg Avg -Avg Low -Avg Avg Low Avg -Avg Avg Avg -Avg Avg Avg -Avg Low Low -Avg

1.5 -7.6 4.5 -10.0 -4.5 -23.8 0.2 -17.1 10.7 -8.6 -0.1 -9.3 0.9 -7.3 0.6 -14.7 3.7 -10.8 2.5 -12.7 0.0 2.2 0.2 -0.4 3.5 -16.5 -14.2 -4.9 -11.2 -11.6

2.1 -13.3 4.0 -19.9 1.4 -5.3 -2.6 -8.0 2.6 -13.0 4.2 -7.8 4.5 -8.7 -0.6 -22.0 5.9 -28.4 1.2 -13.0 -1.4 -15.3 5.5 -10.3 -4.2 -23.8 0.5 -20.2 2.0 1.6 2.3 0.4 -0.4 1.8 0.8 0.1 -2.5 3.3 2.5 0.6 -3.8 0.8 -5.1 -1.1 -15.3 -17.0 -16.2 -19.9 -20.9 -2.3 -7.6 -5.2 -9.3 0.9 -0.9 -6.9 -20.5 -11.0 -24.1 -22.4

81 60 87 65 11 76 73 40 1 20 42 7 19 1 9 13 11 6 44 24 12 3 58 22 32 1 59 65 10 1 40 37

6.4 3.4 11.5 4.2 13.8 -1.4 4.2 13.4 -4.1 6.5 4.3 14.2 -8.1 4.2 -2.0 11.1 -0.3 0.6 3.3 -2.3 -0.2 -0.6 10.5 14.4 16.5 11.9 12.3 5.5

3.9 15.04 (89) 0.9 20.34 (66) 4.8 23.62 (97) 1.6 2.8 1.9 0.4 2.4 4.2 1.9 1.2 0.8 8.3 22.9 (78) 18.52 22.74 21.53 23.40 23.56 10.65 11.70 12.50 10.81 8.45 (87) (79) (80) (76) (79) (89) (96) (96) (92) (41)

0.8 -7.4

12.6 (89)

-0.3 6.2 2.2 7.9 3.2 10.6 6.5 4.9

64 41 27 20 19 2 1 6

7.0 7.89 (68) 4.6 10.42 (91)

-7.3 4.0 -4.1 4.0 -8.4 3.9 -2.2 10.1


FA FB FG FR ForeignSmall/Mid Value ForeignLarge Blend ForeignLarge Growth ForeignSmall/Mid Growth FV JS LS PJ ForeignLarge Value Japan Stock Latin America Stock Pacific/Asia ex-Japan Stock

Categories

E New this month


][ Increase/decrease in rating NR No Morningstar Rating; fund less than three years old.

CH DP EI ES

China Region Diversified Pacific/Asia Stock India Equity Europe Stock

Current Portfolio Style


Current Equity Price/ Style Cash Box Flow Average Market Cap ($Mil) Regional Exposure (% of Stock) UK/W. North Latin Asia exEurope Amer Amer Japan Japan Other Total # of Holdings Turnover % Recent Composition (% of Assets) Cash Stock Bond Other

Costs

Operations

41

Sales Total Charge Expense Assets % Ratio% NAV($) ($Mil) Portfolio Manager (Tenure Years)

SMCWX ARTGX ARTRX DODWX FWWFX FPRAX JARFX JORNX JAWWX MGLBX TEDIX TEQIX OAKGX OAKWX OWSMX OPPAX OPGIX JGVAX PTHDX PGVFX PRGSX TAVFX TWEBX TBHDX VHGEX MAPIX MACSX MCHFX MINDX MAPTX TEMIX PRASX VEUSX NEWFX LZOEX ODMAX PRMSX VEMAX CAIBX MDLOX SGENX IVWAX PAUDX

8 4 7 1 7 8 7 7 7 7 4 4 4 4 5 7 8 1 4 2 7 1 4 1 1 4 4 7 7 7 1 4 4 7 4 7 7 4 1 4 4 1 0

6.4 8.3 6.1 11.7 3.3 5.0 11.3 9.3 4.3 3.5 9.5 6.4 6.5 1.9 1.5 5.4 3.9 7.6 5.9 7.6 5.0 6.5 9.3 6.8 5.9 3.8 6.9 5.5 4.5 10.8 7.9 5.1 9.2 3.1 5.0 6.0 5.0 10.8 6.2 4.9 6.1 6.4 5.5 6.8 5.0 4.8

22,695 1,932 31,178 25,712 38,420 20,007 3,634 19,718 7,467 21,978 35,548 32,859 28,595 15,910 35,152 1,964 27,256 5,223 18,880 19,732 5,245 31,982 11,184 46,827 44,985 17,348 6,021 9,246 11,143 3,336 10,516 21,170 11,813 38,581 16,114 16,034 14,496 15,933 19,113 19,997 24,615 35,011 34,105 16,746 13,955 19,947 17,564 17,314

28 22 36 15 35 28 13 21 16 23 22 38 28 25 28 26 39 32 29 50 36 17 6 47 67 19 3 4 0 0 0 99 2 98 4 24 1 13 5 0 24 31 14 19 27 46 49 24

49 45 59 64 45 54 86 63 48 54 56 55 69 51 54 34 39 56 48 40 44 66 29 48 27 49 0 0 0 0 0 1 0 1 2 8 0 0 0 0 52 49 58 48 44 42 38 14

3 3 0 8 5 1 0 2 4 5 4 0 0 0 0 4 8 2 3 1 0 4 0 1 1 1 0 0 0 0 0 0 0 0 22 10 27 25 23 23 4 1 4 4 0 2 2 12

6 2 4 2 6 8 0 7 9 7 3 0 0 23 17 12 9 9 16 2 9 1 5 2 0 8 23 10 0 0 0 0 0 0 0 4 0 0 0 0 5 0 11 23 19 2 2 3

11 24 0 10 3 7 1 7 21 12 15 6 0 2 0 21 5 2 4 4 7 10 60 2 6 19 74 87 100 100 100 0 98 1 52 40 42 44 57 59 13 16 10 5 9 6 7 35

2 4 638 0 44 1 49 6 103 2 304 0 39 1 139 2 45 0 98 0 40 1 184 2 165 0 41 0 21 4 6,165 0 96 0 72 0 92 2 127 4 81 2 75 0 48 0 53 0 52 4 970 0 0 0 0 0 62 71 61 45 72

65 39 32 76 19 203 10 78 138 88 93 34 107 29 49 37 13 41 51 35 12 71 6 10 6 44 16 17 8 4 11 33 68 6 81 25 23 34 19 10 98 47 31 12 51 55 56 94

2 5 9 4 0 2 6 2 0 1 8 7 12 2 4 3 0 4 15 7 0 6 4 11 17 6 0 1 0 0 0 12 4 0 3 3 3 4 4 1 14 4 10 17 13 -68 -31 -6

95 91 90 95 98 98 94 97 100 99 92 88 66 98 96 96 100 96 85 84 100 93 95 90 83 90 100 81 100 97 100 86 96 97 90 81 97 96 96 98 50

1 0 1 0 0 0 0 0 0 0 0 4 18 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 12 0 0 0 0 24

1 4 0 1 2 0 0 1 0 0 0 1 4 0 0 0 0 0 0 9 0 1 0 0 0 4 0 18 0 3 0 2 1 3 4 4 0 0 0 1 7 4 11 8 4 33 24 13

5.75 NL NL NL NL 5.25 NL NL NL NL 5.75 5.75 NL NL NL 5.75 5.75 NL NL NL NL NL NL NL NL NL NL NL NL NL 5.75 NL NL 5.75 Clsd 5.75 NL NL 5.75 5.25 5.00 Clsd NL NL NL

1.42 1.09 1.50 1.40 0.66 1.05 0.93 1.10 0.95 0.96 1.48 1.31 1.10 1.16 1.24 1.11 1.16 1.20 1.09 1.27 1.36 0.87 1.15 1.40 1.37 0.54 1.10 1.12 1.13 1.18 1.11 1.41 0.96 0.14 1.61 1.02 1.42 1.30 1.26 0.20 1.41 0.61 1.06 1.13 1.29 1.51 1.29 1.64

1,265 35.82 20,043 Management Team 10.29 163 OKeefe/Samra (4.5/4.5) 12.84 177 Management Team 7.74 1,915 Management Team 17.86 1,015 Kennedy/DuFour (6.4/4.7) 18.56 14.09 9.22 39.90 10.72 265 305 2,687 2,039 50 Ende/Geist (12.2/12.2) James Goff (7.3) John Eisinger (4.4) George Maris (1.2) Gendelman/Marsico (4.9/4.9)

27.11 18,524 Management Team 16.27 5,086 Luh/Tumulty (1.4/8.5) 19.98 1,942 McGregor/Taylor (8.6/6.7) 10.80 486 Herro/Nygren (5.7/5.7) 13.80 4,602 Management Team 54.02 27.41 11.72 9.63 13.17 16.20 41.75 18.16 8.96 16.32 12.94 15.74 21.39 14.39 20.57 18.33 14.68 49.46 47.02 17.48 29.98 28.61 31.55 49.63 18.30 45.18 14.98 10.18 7,569 2,387 119 2,072 148 571 2,568 440 491 3,546 2,097 2,425 1,637 544 2,792 Rajeev Bhaman (7.8) Frank Jennings (16.7) Gregory Kolb (7.1) Gudefin/Lahr (2.1/2.1) Bernard Horn, Jr. (14.0) Robert Gensler (7.2) Ian Lapey (2.9) Management Team Management Team Management Team Madsen/Zhang (5.6/1.2) Horrocks/Lowe (3.1/0.5) Gao/Zhang (13.4/2.1) Shroff/Asnani (5.9/1.6) Management Team

0 86 0 94 0 462 20 14 29 17 14 18 3 492 98 121 115 892

1,743 Brugere-Trelat/Dudley (7.4/5.3) 4,231 Anh Lu (3.1) 5,650 Gerard OReilly (3.8) 1,312 19,310 13,616 22,224 6,570 57,121 77,154 51,019 32,635 8,855 18,753 Management Team Management Team Justin Leverenz (5.1) Gonzalo Pangaro (3.7) Michael Perre (3.8) Management Team Management Team Management Team de Lardemelle/de Vaulx (3.7/3.7) Robert Arnott (8.6)

2,144

3 1,378 3 847 2 181 1 176 2 43 3 41 11 260

72 21 62 17 75 0 70 13 -3 138 2 105 30 63

PASDX 0 PGMDX 4

11.65 27,311 Robert Arnott (9.9) 10.75 5,416 Management Team

Equity Style Box


Val Blnd Grth Lrg Mid Sm

Bold # Cheapest Quintile

42

Historical Performance
Morningstar Rating vs. Category 5Best Total Return % 05-31-12 YTD 1 Yr Total Return % Category Rank

Historical Risk
Standard Yield DeviaANNUALIZED 1Best, 100Worst 3 Yr 5 Yr 10 Yr YTD 1 Yr 3 Yr 5 Yr 10 Yr % tion Risk Relative to Category

Morningstar 500
Bond Funds
High-Quality Bond American Century Ginnie Mae Inv BGNMX Artio Total Return Bond A BJBGX Baird Aggregate Bond Inst BAGIX Dodge & Cox Income DODIX DoubleLine Total Return Bond I DBLTX Fidelity GNMA Fund FGMNX Fidelity Government Income FGOVX Fidelity Intermediate Bond FTHRX Fidelity Intermediate Government Inc FSTGX Fidelity Investment Grade Bond FBNDX Fidelity Mortgage Secs FMSFX Fidelity Total Bond FTBFX FPA New Income FPNIX Harbor Bond Instl HABDX Harbor Real Return Instl HARRX Managers Bond MGFIX Managers PIMCO Bond MBDFX Metropolitan West Total Return Bond M MWTRX Payden GNMA PYGNX PIMCO Fundamental Advtg Ttl Ret Strat D PFSDX PIMCO Investment Grade Corp Bd Instl PIGIX PIMCO Low Duration D PLDDX PIMCO Real Return D PRRDX PIMCO Short-Term D PSHDX EPIMCO Total Return Instl PTTRX Spartan U.S. Bond Index Investor FBIDX T. Rowe Price Corporate Income PRPIX T. Rowe Price GNMA PRGMX T. Rowe Price New Income PRCIX T. Rowe Price Short-Term Bond PRWBX TCW Total Return Bond I TGLMX USAA Income USAIX Vanguard GNMA Inv VFIIX Vanguard Inflation-Protected Secs Inv VIPSX Vanguard Interm-Term Bond Index Adm VBILX Vanguard Interm-Term Invmt-Grade Inv VFICX Vanguard Interm-Term Treasury Inv VFITX Vanguard Long-Term Investment-Grade Inv VWESX Vanguard Long-Term Treasury Inv VUSTX Vanguard Short-Term Bond Index Adm VBIRX Vanguard Short-Term Federal Inv VSGBX Vanguard Short-Term Investment-Grade Inv VFSTX Vanguard Short-Term Treasury Inv VFISX Vanguard Total Bond Market Index Adm VBTLX Western Asset Core Bond I WATFX BarCap US Agg Bond TR USD
Legend Red # Lowest return in group Green # Highest return in group Italic # Extended performance Morningstar Analyst Rating

(R)

GI CI CI CI CI GI GI CI GI CI [ QQQ QQQQ QQQQ QQQQ NR QQQQ QQQQ QQQ QQQ QQQ

3.0 1.2 2.0 3.7 3.8 4.2 1.8 2.0 2.4 1.3 3.3

9.0 5.5 5.9 7.6 5.0 8.5 6.2 7.3 5.2 4.8 7.6

7.8 5.9 8.3 9.4 8.4 6.7 5.6 8.4 4.3 9.7 7.4 9.9 2.6 7.7 10.3 13.0 8.4 11.5 6.8 7.3

5.8 6.6 6.9 6.4 6.8 7.3 6.8 5.7 5.8 5.8 5.1 7.0 3.5 8.2 8.7 7.3 8.3 8.2 7.2

4.9 5.1 6.8 6.0 5.9 5.6 5.5 5.1 4.7 5.4 4.7 3.6 6.5 7.0 6.6 6.9 5.8 8.3 4.1 7.4 2.7 7.0 5.5 6.5 5.1 5.8 3.7 7.1 5.9 5.6 7.2 6.9 6.3 6.2 8.1 9.1 4.0 3.8 4.0 3.5 5.6 6.1 5.7

82 88 28 26 16 42 28 77 78 43 81 48 83 13 9 9 15 9 19 32 1 7 6 16 4 81 75 61 72 58 4 50 69 18 24 17 23 51 70 78 42 33 67 77 31

51 51 9 75 4 35 14 70 72 9 58 23 55 83 51 80 65 42 17 99 6 36 34 31 44 21 61 64 48 51 43 32 46 5 1 10 5 24 43 23 31 36 49 17 34

36 56 34 53 20 46 52 92 30 73 28 81 67 15 5 54 12 18 74 4 25 7 43 45 81 77 34 67 66 21 29 25 30 22 13 20 41 74 61 36 26 58 79 3

20 31 46 33 11 16 65 55 64 79 28 50 7 10

31 7 23 24 10 14 61 52 45 77 39 11

3.4 3.8 4.1 4.0 7.5 2.9 1.6 2.7 1.3 3.1 3.1 3.4 3.9 2.1 2.1 4.2 3.4 4.2 3.6 8.1 4.5 2.6 2.5 1.0 3.9 2.7 4.1 4.1 3.3 2.2 6.6 3.7 3.1 3.6 3.4

4.6 (47) 2.24 2.94 2.90 2.86 2.40 3.05 2.95 2.65 2.79 2.09 2.88 0.65 3.30 4.66 5.26 3.19 3.41 2.14 5.29 5.05 2.36 4.96 1.10 3.57 2.78 5.05 1.97 2.65 1.35 3.53 2.83 2.26 4.76 4.56 (70) (70) (86) (29) () (80) (88) (81) (88) (84) (78) (61) (39) (39) (44) (22) (47) (45) (73) (10) (31) (15) (45) (4) (41) (99) (48) (65) (80) (40) (47) (63) (73) (44) (96)

-Avg Avg Avg Avg Avg +Avg Avg Avg Avg Low Avg Low Avg Avg High Avg +Avg -Avg High High +Avg +Avg +Avg +Avg -Avg -Avg Low -Avg -Avg +Avg Avg Avg +Avg High High High +Avg Avg Avg Avg Avg Avg Avg +Avg

CI QQ CI QQQQ CS QQ CI [ QQQQ IP QQQQ CI CI CI GI CI CI CS IP UB CI QQQQ QQQQQ QQQQQ QQQQQ [ QQ QQQQQ QQQQ QQQQ QQQQ QQQQQ

2.3 5.7 3.1 6.9 0.9 1.5 4.4 4.5 5.5 11.9 4.6 4.3 4.6 2.2 3.6 4.7 5.4 6.2 7.0 0.0

21 4 6 10 7 6 11 5 1 9 5 10 2 55 49 31 29 32 2 24 15 28 5 16 4 40 75 19 25 26 40 35 34 1 21 24 18 5 42 65 30 28 36 4 24 9 47 6 13 1 59 57 22 17 22 29 39 18

6.3 7.8 2.8 2.0 5.8 12.4 1.7 0.9 5.3 6.1 2.3 4.9 1.5 2.6 1.5 7.0 7.9 5.2 6.0 1.6

13.2 10.2 5.2 5.3 11.0 8.8 2.2 2.7 8.8 9.1 6.9 12.1 5.9 7.7 3.3 10.4 9.8 6.3 9.8 10.3 6.1 6.8 6.4 6.9 4.0 9.1 7.1 6.9 8.2 8.6

CI QQQ CL QQ GI [ QQQ CI QQQQ CS QQQ CI CI GI IP CI CI GI CL GL CS QQQQQ QQQQ [ QQQQ QQQ QQQQQ QQQQ QQQQQ QQQ QQQQ QQQQ

5.3 6.1 3.1 6.5 1.5 5.8 4.6 13.2 3.9 10.5 4.2 7.5 2.1 8.7 6.1 17.8 6.1 31.6 1.0 2.4 0.8 2.0 0.3 2.4 3.6 1.4 2.2 2.1 1.5 7.1 6.4 7.5

11.3 7.5 6.7 7.9 15.9 9.7 14.2 12.0 3.6 4.7 2.7 5.2 2.0 7.0 13.3 7.1 4.4 4.3 3.9 6.7 6.7 6.4

4.0 4.37 (64) 1.6 4.38 (86) 4.8 8.34 (58) 2.6 12.79 (52) 1.8 1.68 (78) 0.8 2.6 0.6 3.0 3.1 1.45 1.96 1.39 2.85 4.02 (80) (33) (73) (99) (37)

GS QQQQ CS QQQQ GS ] QQQQ CI QQQ CI QQQQ

Categories

E New this month


][ Increase/decrease in rating NR No Morningstar Rating; fund less than three years old.

CI Intermediate-Term Bond CL Long-Term Bond CS Short-Term Bond

GI Intermediate Government Bond GL Long Government Bond GS Short Government Bond

IP Inflation-Protected Bond UB Ultrashort Bond

Current Portfolio Style


Current Bond Avg Style Duration Box Years Cat Avg Avg Credit Quality Breakdown Duration Credit (% of Bonds) Years Quality High Mid Low Other Turnover % Recent Composition (% of Assets) Cash Stock Bond Other

Costs
Sales Charge Expense % Ratio%

Operations
Total Assets ($Mil)

43

NAV($)

Portfolio Manager (Tenure Years)

BGNMX BJBGX BAGIX DODIX DBLTX FGMNX FGOVX FTHRX FSTGX FBNDX FMSFX FTBFX FPNIX HABDX HARRX MGFIX MBDFX MWTRX PYGNX PFSDX PIGIX PLDDX PRRDX PSHDX PTTRX FBIDX PRPIX PRGMX PRCIX PRWBX TGLMX USAIX VFIIX VIPSX VBILX VFICX VFITX VWESX VUSTX VBIRX VSGBX VFSTX VFISX VBTLX WATFX 4 5 5 5 3 1 4 5 4 5 1 5 1 8 8 8 5 6 0 0 0 0 0 0 0 4 8 4 5 2 6 5 4 7 8 5 4 8 7 1 1 2 1 4 4

5.5 4.2 4.7 5.0 3.9 2.7 3.1 4.6 3.9 3.7 4.9 2.7 4.7 1.5 6.6 7.0 5.4 5.0 4.1 5.7 7.0 3.5 7.1 0.8 7.0 4.8 6.7 4.0 4.8 1.8 3.5 3.9 4.0 8.4 6.4 5.4 5.3 13.0 15.0 2.7 2.3 2.4 2.3 5.1 4.5

5.5 3.6 4.8 4.8 4.8 4.8 3.6 3.6 4.8 3.6 4.8 4.8 4.8 1.9 4.8 5.9 4.8 4.8 4.8 3.6 4.8 4.8 1.9 5.9 0.6 4.8 4.8 9.2 3.6 4.8 1.9 4.8 4.8 3.6 5.9 4.8 4.8 3.6 9.2 16.0 1.9 2.0 1.9 2.0 4.8 4.8

A AAA A BBB BBB BB AAA AAA A AAA A AA BBB AA BBB A BBB A BB AA BBB AAA A A BB A AA AAA A A AAA BBB AAA AA AAA A AAA AA AA

78 100 71 56 46 62 100 100 68 100 75 96 70 95 67 87 20 82 64 83 10 100 68 61 65 49 99 100 61 35 100 26 100 81 100 46 100 79 76

18 0 26 37 41 2 0 0 31 0 23 2 19 2 25 10 69 14 16 17 80 0 27 38 2 46 0 0 39 63 0 71 0 19 0 50 0 21 25

3 0 3 7 10 30 0 0 1 0 3 1 11 2 7 4 10 2 20 0 10 0 5 1 33 4 0 0 0 1 0 0 0 0 0 2 0 0 4

1 0 0 0 3 5 0 0 0 0 0 1 1 1 0 0 1 2 0 0 0 0 0 0 0 0 1 0 0 2 0 4 0 0 0 2 0 0 -4

283 130 219 46 27 15 367 466 102 258 275 490 168 117 666 340 17 495 157 23 629 124 437 129 307 584 106 57 226 111 72 141 19 189 28 61 49 273 29 229 67 411 47 302 73 556

10 5 13 6 6 21 5 7 6 4 8 2 10 11 -36 15 16 -30 8 -40 -6 -72 -28 -13 27 -58 8 1 4 14 20 4 7 6 0 1 2 7 1 8 2 12 10 7 6 20

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 -28 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0

79 94 87 93 92 78 95 93 93 96 90 98 85 89 133 85 80 130 91 138 122 155 121 113 71 158 92 99 96 86 80 96 87 94 100 99 98 90 99 92 98 87 90 90 92 79

3 1 0 1 1 1 0 0 1 0 3 0 5 0 2 1 3 1 0 2 13 17 7 0 3 1 0 0 0 0 0 0 6 0 0 0 0 3 0 0 0 1 0 3 2 1

NL NL NL NL NL NL NL NL NL NL NL NL 3.50 NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL NL

0.84 0.53 0.69 0.30 0.43 0.49 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.60 0.53 0.60 0.99 0.58 0.63 0.50 1.29 0.50 0.75 0.85 0.75 0.46 0.27 0.64 0.61 0.59 0.54 0.44 0.61 0.21 0.20 0.11 0.20 0.20 0.22 0.20 0.11 0.20 0.20 0.20 0.10 0.52

11.25 13.82 10.87 13.67 11.19 11.92 10.91 11.02 11.06 7.88 11.29 11.12 10.66 12.66 11.30 26.71 10.85 10.66 10.81 4.06

1,597 1,919 2,099 1,633 25,145 25,399 10,334 5,408 4,170 1,143 5,024 884 14,332 4,657 7,533 509 2,286 1,336 20,395 961 1,183

Management Team Pell/Quigley (13.9/10.8) Management Team Management Team Gundlach/Barach (2.2/2.2) Irving/Castagliuolo (7.6/2.5) Castagliuolo/Irving (2.5/4.1) Galusza/ONeil (2.9/13.9) Castagliuolo/Irving (2.5/4.2) Jeffrey Moore (7.5) Irving/Castagliuolo (4.2/2.5) ONeil/Conti (7.5/4.8) Atteberry/Rodriguez (7.6/27.9) William Gross (24.5) Mihir Worah (4.4) Daniel Fuss (17.4) William Gross (18.3) Management Team Ballantine/Greenberg (12.8/12.8) William Gross (4.3) Mark Kiesel (9.5) William Gross (25.1) Mihir Worah (4.4) Jerome Schneider (1.4) William Gross (25.1) Hollingsworth/Bembenek (3.3/0.3) David Tiberii (8.7) Andrew McCormick (4.2) Daniel Shackleford (9.5) Edward Wiese (17.4) Management Team Margaret Weinblatt (12.4) Michael Garrett (2.0) Gemma Wright-Casparius (0.8) Joshua Barrickman (4.1) Gregory Nassour (4.0) David Glocke (11.0) Lucius Hill, III (4.3) David Glocke (11.0) Gregory Davis (7.3) Ronald Reardon (7.4) Gregory Nassour (4.0) David Glocke (12.0) Davis/Volpert (4.1/19.5) Management Team

10.81 7,692 10.47 21,331 12.37 23,789 9.81 10,909 11.28 260,947 11.92 9.95 10.12 9.80 4.84 9.88 13.31 11.07 14.72 12.02 10.19 11.80 10.67 13.81 10.64 10.85 10.74 10.78 11.12 12.14 7,080 607 1,748 17,969 6,677 5,866 4,178 39,246 42,814 15,442 17,394 6,492 12,048 3,847 21,728 5,756 39,423 6,401 97,771 2,973

Fixed Income Style Box


Ltd Mod Ext High Mid Low

PIMCO Composition Figures PIMCO funds typically have large positions in futures and other derivatives that require that they hold an offsetting amount in bonds and cash. As a result, the composition figures for PIMCO funds can be confusing. We are working with PIMCO to get figures that better reflect the funds true exposure levels.

Bold # Cheapest Quintile

44

Historical Performance
Morningstar Rating vs. Category 5Best Total Return % 05-31-12 YTD 1 Yr Total Return % Category Rank

Historical Risk
Standard Yield DeviaANNUALIZED 1Best, 100Worst 3 Yr 5 Yr 10 Yr YTD 1 Yr 3 Yr 5 Yr 10 Yr % tion Risk Relative to Category

Morningstar 500
Bond Funds
High-Quality Bond (contd) Western Asset Core Plus Bond I WACPX High-Yield Bond American Funds American Hi Inc Tr A AHITX Eaton Vance Income Fund of Boston A EVIBX Fidelity Capital & Income FAGIX Fidelity High Income SPHIX Janus High-Yield T JAHYX Metropolitan West High Yield Bond M MWHYX PIMCO High Yield D PHYDX T. Rowe Price High-Yield PRHYX Vanguard High-Yield Corporate Inv VWEHX Specialty Bond American Funds Capital World Bond A CWBFX Calamos Convertible A CCVIX Eaton Vance Floating Rate A EVBLX Fidelity Floating Rate High Income FFRHX Fidelity New Markets Income FNMIX Fidelity Strategic Income FSICX Loomis Sayles Bond Retail LSBRX Loomis Sayles Global Bond Retail LSGLX PIMCO Emerging Local Bond Instl PELBX PIMCO Foreign Bond (Unhedged) D PFBDX PIMCO Foreign Bond (USD-Hedged) D PFODX PIMCO Unconstrained Bond D PUBDX T. Rowe Price International Bond RPIBX T. Rowe Price Spectrum Income RPSIX Templeton Global Bond A TPINX Vanguard Convertible Securities Inv VCVSX Municipal Bond National American Century IntermTrm Tx-Fr Bd Inv TWTIX American Funds Tax-Exempt Bond A AFTEX Baird Intermediate Muni Bd Inst BMBIX Fidelity Intermediate Municipal Income FLTMX Fidelity Municipal Income FHIGX Fidelity Municipal Income 2015 FMLCX Fidelity Short-Intermediate Muni Income FSTFX Fidelity Tax-Free Bond FTABX Franklin Federal Tax-Free Income A FKTIX Franklin High Yield Tax-Free Inc A FRHIX T. Rowe Price Tax-Free High-Yield PRFHX T. Rowe Price Tax-Free Income Inv PRTAX T. Rowe Price Tax-Free Shrt-Interm PRFSX USAA Tax Exempt Intermediate-Term USATX Vanguard High-Yield Tax-Exempt VWAHX Vanguard Interm-Term Tx-Ex Inv VWITX Vanguard Long-Term Tax-Exempt VWLTX Vanguard Ltd-Term Tx-Ex VMLTX Vanguard Short-Term Tx-Ex VWSTX Wells Fargo Advantage S/T Muni Bd Inv STSMX BofAML US HY Master II TR BarCap Municipal TR USD
Legend Red # Lowest return in group Green # Highest return in group Italic # Extended performance Morningstar Analyst Rating

(R)

IB CV BL BL EB CI QQQQQ QQQ QQQ QQQQ QQQQ QQQQ QQQQ QQQ QQQQ QQQ QQQ QQQ QQQ QQQ QQQQ

3.0 3.9 4.7

9.0 6.6 2.0

7.8 13.0 14.6 15.4 16.3 18.3 15.2 14.6 13.2 15.4 15.2 14.1 9.3 6.8 6.9 10.7 7.4 14.3 11.5 13.8 8.8 10.5 11.7 10.5 5.6 5.0 9.9 7.0 11.6 7.1 6.3 7.7 5.1 5.8 7.7 3.5 7.6 8.1 10.8 11.8 7.6 3.8 7.8 8.8 6.3 7.4 3.2 1.5 3.8 19.8 7.4

5.8 7.5 4.8

4.9 7.0 7.1

24 65 45 12 40 35 88 70 39 59 31 95 61 95 14 65 29 30 74 79 4 17 86 68 67 20 47 7 95 50 78 98 34 66 49 78 47 53 31 18 3 37 72 52 82 32

29 78 24 93 40 42 91 46 55 3 38 70 39 66 1 40 81 56 64 22 3 10 85 43 97 43 50 10 85 62 69 97 25 56 40 62 38 50 25 18 3 38 63 43 81 48

5 35 16 3 39 54 82 35 39 68 41 93 44 92 18 58 16 28 67 6 16 60 80 79 37 45 48 13 82 64 53 28 56 44 53 33 58 23 13 4 48 65 43 86 24

15 70 32 15 10 17

5 30 14 1 7 49

3.2

4.6 (47) 4.06 (33) 8.4 (0) (0) (0) (1) (0) (0) (1) (0) (0) (0)

+Avg Avg -Avg High +Avg Avg Avg Avg Avg -Avg Avg -Avg Avg Low -Avg Avg High Avg +Avg High -Avg -Avg +Avg Avg High Avg Avg +Avg -Avg Low Low Avg -Avg Avg Avg Avg -Avg Avg Avg High Avg Avg Avg -Avg -Avg

4.3 0.7 4.7 3.8 5.8 -2.6 4.8 3.0 5.0 2.9 3.7 4.2 4.9 4.4 -1.3 2.7 2.2 5.6

5.0 8.0 6.1 8.6 6.8 10.8 6.9 8.9 6.7 7.6 7.2 5.9 6.4 6.2 3.6 7.6 8.2 7.0 6.0

7.8 8.62 7.5 7.63 6.4 11.80 6.7 8.80 7.1 8.15 7.4 6.6 7.5 6.8 8.01 8.50 8.70 7.26

7 41 47 24 23 31 72 56 22 28 3 5 23 66 49 18 10

2.8 -0.4 2.2 1.5 -1.5 -10.2 3.4 2.6 2.3 2.1 4.6 8.9 3.3 4.3 2.3 1.7 0.7 3.5 4.6 0.4 3.2 1.1 3.7 4.2 3.1 0.6 0.5 -5.0 3.6 8.5 3.9 -2.2 2.9 -5.9 -8.8 9.6

(9.3)

5.5 7.6 1.7 4.7 3.0 3.8 3.8 4.4 8.7 11.6 7.4 6.2 6.3 7.1 9.4 8.5 9.6 7.7

3.2 6.35 (17) 1.4 11.23 (88) 4.1 5.20 (2) 3.5 4.50 (4) 5.4 7.50 (5) 4.7 5.67 (6) 5.7 7.89 (1) 4.1 7.63 (12) 5.1 12.36 (1) 4.6 9.44 (34) 3.5 2.1 2.5 4.2 6.4 2.9 3.7 2.6 3.1 3.7 1.2 2.0 3.7 4.1 4.7 4.6 3.9 2.0 3.9 4.0 3.3 3.9 2.0 1.1 2.0 3.90 (44) 2.47 (18) 9.20 (13) 5.54 (2) 9.69 (0) 4.5 (81) 4.02 4.66 3.54 3.03 4.38 1.69 4.46 5.02 6.39 6.02 4.75 1.72 4.21 5.21 4.15 4.85 1.54 0.56 1.02 (98) (98) (80) (97) (99) () (79) (99) (95) (86) (78) (96) (84) (98) (94) (97) (98) (73) (57) (62)

MU QQQQ MU QQQQ IB QQQQ EB [ QQ IB QQQQQ IB QQQQ NT QQQ IB QQQ MU QQQ IB [ QQQQ CV MI MI MI MI ML MI MS ML ML HM HM ML MS MI MI MI ML MS MS MS QQQQ QQQ QQQ QQQQ QQQQ QQQQ NR QQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQQ QQQQQ QQQQ QQQQ QQQ QQ QQQQ

17 11 38 6 39 18 48 3 24 58 55 16 9 32 54 15 43 21 16 12 23 5 24 28 13 31 38 27 34 29 76 30 64 38 59 1 3 36 23 16 26 13 29 3 18 4 15 23 26 14 6 35 30 33 72 19

7.5 6.0 5.5 7.1 5.7 6.9 8.0 10.3 3.2 3.9 5.4 5.0 5.9 5.2 5.6 4.1 5.9 5.5 5.3 4.6 5.5 4.3 5.5 5.4 5.5 5.4 3.7 2.5 3.7 7.8 5.6 7.4 4.1 4.7 4.8 5.0 4.8 5.4 3.4 5.6 5.3 5.7 5.4 5.2 3.4 5.0 5.3 4.7 5.1 3.2 2.4 3.6 8.9 5.4

3.9 12.86 (91)

2.8 8.3 4.9 11.6 1.6 6.3 2.8 7.7 4.4 11.2 1.4 3.4 1.3 3.7 4.6 11.6 5.0 12.4 6.6 14.5 7.5 4.8 1.3 3.8 5.1 15.7 11.8 3.7 10.1 12.6

3.1 8.9 4.5 11.4 1.0 3.0 0.5 1.3 1.3 2.8 6.2 5.2 2.9 11.4

Categories

E New this month


][ Increase/decrease in rating NR No Morningstar Rating; fund less than three years old.

BL CI CV EB

Bank Loan Intermediate-Term Bond Convertibles Bond Emerging Market Bond

HM IB MI ML

High-Yield Muni World Bond Muni National, Intermediate Muni National, Long

MS Muni National, Short MU Multisector Bond

Current Portfolio Style


Current Bond Avg Style Duration Box Years Cat Avg Avg Credit Quality Breakdown Duration Credit (% of Bonds) Years Quality High Mid Low Other Turnover % Recent Composition (% of Assets) Cash Stock Bond Other

Costs
Sales Charge Expense % Ratio%

Operations
Total Assets ($Mil)

45

NAV($)

Portfolio Manager (Tenure Years)

WACPX 4 AHITX EVIBX FAGIX SPHIX JAHYX MWHYX PHYDX PRHYX VWEHX CWBFX CCVIX EVBLX FFRHX FNMIX FSICX LSBRX LSGLX PELBX PFBDX PFODX PUBDX RPIBX RPSIX TPINX VCVSX TWTIX AFTEX BMBIX FLTMX FHIGX FMLCX FSTFX FTABX FKTIX FRHIX PRFHX PRTAX PRFSX USATX VWAHX VWITX VWLTX VMLTX VWSTX STSMX 3 3 0 0 6 3 0 6 6 5 3 3 0 0 9 6 5 0 0 0 0 8 6 2 6 5 8 4 5 8 2 1 7 0 0 9 5 2 5 8 5 8 1 1 2

5.5 4.7 3.9 3.2 3.2 4.1 2.3 3.2 3.9 4.6 4.8 2.9 0.1 5.6 5.5 5.6 4.4 7.2 7.2 2.9 6.2 4.6 1.5 4.5 5.9 5.9 7.3 5.1 5.0 7.3 2.8 2.9 7.5 6.8 5.4 2.8 4.6 6.4 5.3 6.3 2.4 1.1 1.2

5.5 4.8 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 5.3 2.9 0.5 0.5 5.7 4.3 4.3 5.3 5.7 5.3 5.3 1.3 5.3 4.3 5.3 2.9 5.9 5.3 5.3 5.3 5.3 7.3 5.3 2.4 7.3 7.3 8.6 8.6 7.3 2.4 5.3 5.3 5.3 7.3 2.4 2.4 2.4

A AAA B B B B B B B B B BBB BB B BB BB BB BB BBB A BB BBB B A A A AA A A A AA AA A BBB BB A A A BBB A A AA AA A

78 76 3 10 0 12 9 0 11 4 2 62 14 0 12 9 43 27 61 69 41 21 0 47 64 51 94 67 62 58 69 68 59 23 12 43 60 36 44 69 63 79 82 56

18 27 5 8 4 2 1 4 6 2 7 31 45 2 4 52 8 41 30 26 18 67 10 40 34 41 6 31 37 39 30 31 39 57 53 51 38 58 48 30 34 21 18 36

3 10 90 80 95 76 89 92 83 93 90 6 26 91 77 31 45 24 9 5 27 11 35 5 1 2 0 0 0 0 0 0 2 11 16 2 1 1 3 1 1 0 0 2

1 -13 3 3 1 9 2 4 0 1 2 1 15 7 6 8 3 8 0 0 14 0 55 9 1 5 0 1 1 2 1 0 1 10 19 4 1 5 4 1 1 0 1 6

283 734 89 51 70 65 55 92 54 50 75 26 95 66 56 54 132 229 22 84 22 486 355 1,001 36 15 26 90 34 14 12 8 14 11 0 22 8 14 9 13 16 23 13 19 15 19 14 28 75

10 15 6 9 10 7 7 6 9 5 4 4 9 0 6 10 7 5 10 5 -34 -17 -10 110 13 7 48 1 6 3 4 2 10 2 3 16 1 0 0 0 1 7 1 3 5 2 7 14 9

0 1 1 1 0 9 1 0 0 0 1 0 0 16 0 0 0 0 6 0 0 0 0 0 0 14 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

79 83 88 83 86 81 90 90 85 89 91 92 86 11 85 90 93 94 71 94 125 104 99 -3 85 78 50 14 94 97 95 98 90 98 97 84 95 100 100 100 99 93 99 97 95 98 93 86 91

3 1 4 7 4 2 3 3 6 5 4 4 5 73 8 0 0 1 14 1 9 13 11 -7 2 1 2 85 0 0 1 0 0 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 -1

NL 3.75 4.75 NL NL NL NL NL Clsd Clsd 1.20 3.75 Clsd 2.25 NL NL NL NL NL NL NL NL NL NL NL 4.25 NL NL 3.75 NL NL NL NL NL NL 4.25 4.25 NL NL NL NL NL NL NL NL NL NL

0.84 0.45 1.12 0.67 1.02 0.76 0.75 0.88 0.80 0.90 0.74 0.23 0.87 1.07 1.01 0.71 0.86 0.70 0.92 0.97 0.90 0.90 0.90 1.30 0.83 0.69 0.88 0.59 0.90 0.47 0.55 0.30 0.40 0.46 0.39 0.48 0.25 0.62 0.64 0.68 0.53 0.50 0.54 0.20 0.20 0.20 0.20 0.20 0.63

11.39 10.78 5.75 8.96 8.84 8.91 9.89 9.13 6.61 5.78 20.80 16.82 9.25 9.73 16.19 10.97 14.20 16.49 10.03 10.87 10.85 11.31 9.68 12.50 12.31 12.20 11.63 12.93 12.01 10.61 13.40 10.24 10.87 11.56 12.58 10.75 11.57 10.44 5.70 13.60 11.09 14.27 11.65 11.18 15.93 10.01

1,597 9,416 1,321 18,617 3,657 10,257 5,599 2,182 2,173 16,776 9,389 16,966 12,864 2,094 7,438 10,103 5,236 9,534 20,669 2,324 11,992 4,950 5,085 13,849 5,193 6,309 61,002 1,615 1,815 3,415 9,326 1,184 4,780 6,424 54 4,284 2,335 11,476 8,815 2,121 2,942 1,744 3,194 7,218 35,251 7,881 15,875 11,457 4,634

Management Team Management Team Huggins/Weilheimer (12.4/16.4) Mark Notkin (8.9) Fred Hoff (12.0) Smith/Watters (8.5/3.9) Management Team Andrew Jessop (2.4) Mark Vaselkiv (15.9) Michael Hong (4.3) Management Team Management Team Page/Russ (11.3/4.6) Christine McConnell (11.8) John Carlson (17.0) Management Team Management Team Management Team Michael Gomez (5.4) Scott Mather (4.3) Scott Mather (4.3) Chris Dialynas (3.9) Ian Kelson (10.4) Charles Shriver (1.1) Hasenstab/Desai (11.4/1.4) Management Team Management Team Management Team Management Team Management Team Pagliocco/Ramundo (3.3/1.9) Management Team Management Team Management Team Management Team Management Team James Murphy (10.4) Konstantine Mallas (4.4) Charles Hill (14.4) Regina Shafer (9.0) Mathew Kiselak (1.9) Michael Kobs (3.9) Mathew Kiselak (1.9) Marlin Brown (4.3) Pamela Wisehaupt Tynan (15.4) Casetta/Fitterer (4.6/12.3)

1,270

Fixed Income Style Box


Ltd Mod Ext High Mid Low

PIMCO Composition Figures PIMCO funds typically have large positions in futures and other derivatives that require that they hold an offsetting amount in bonds and cash. As a result, the composition figures for PIMCO funds can be confusing. We are working with PIMCO to get figures that better reflect the funds true exposure levels.

Bold # Cheapest Quintile

46

Area code is 800 unless otherwise indicated

Akre Focus Retail 877-862-9556 AKREX 28 Allianz Funds 498-5413 Allianz NFJ Large Cap Value D PNBDX 28 Allianz NFJ Small Cap Value D PNVDX 34 Allianz RCM Technology Instl DRGTX 36 American Beacon 658-5811 American Beacon Intl Equity Inv AAIPX 38 American Beacon Lg Cap Value Inv AAGPX 28 American Beacon Small Cp Val Inv AVPAX 34 American Century Investments 345-2021 American Century Equity Income Inv TWEIX 28 American Century Ginnie Mae Inv BGNMX 42 American Century Growth Inv TWCGX 24 American Century IntermTrm Tx-Fr Bd TWTIX 44 American Century Intl Discovery Inv TWEGX 38 American Century Mid Cap Value Inv ACMVX 30 American Century Small Cap Value Inv ASVIX 34 American Century Ultra Inv TWCUX 24 American Century Value Inv TWVLX 28 American Funds 421-4225 American Funds AMCAP A AMCPX 24 American Funds American Balanced A ABALX 34 American Funds American Hi Inc Tr A AHITX 44 American Funds American Mutual A AMRMX 28 American Funds Capital Inc Bldr A CAIBX 40 American Funds Capital World Bond A CWBFX 44 American Funds Capital World G/I A CWGIX 38 American Funds EuroPacific Gr A AEPGX 38 American Funds Fundamental Inv A ANCFX 26 American Funds Growth Fund of Amer AGTHX 24 American Funds Inc Fund of Amer A AMECX 34 American Funds Intl Gr And Inc A IGAAX 38 American Funds Invmt Co of America A AIVSX 26 American Funds New Economy A ANEFX 24 American Funds New Perspective A ANWPX 38 American Funds New World A NEWFX 40 American Funds SMALLCAP World A SMCWX 40 American Funds Tax-Exempt Bond A AFTEX 44 American Funds Washington Mutual AWSHX 28 Ameristock 394-5064 AMSTX 26 Appleseed 470-1029 APPLX 30 Ariel Investments, LLC 292-7435 Ariel Appreciation Investor CAAPX 30 Ariel Discovery Investor ARDFX 34 Ariel Focus Investor ARFFX 28 Ariel Investor ARGFX 30 Artio Global 387-6977 Artio International Equity A BJBIX 38 Artio International Equity II A JETAX 38 Artio Total Return Bond A BJBGX 42 Artisan 344-1770 Artisan Global Value Investor ARTGX 40 Artisan Growth Opportunities Inv ARTRX 40 Artisan International Inv ARTIX 38 Artisan International Small Cap Inv ARTJX 38 Artisan International Value Investor ARTKX 38 Artisan Mid Cap Inv ARTMX 28 Artisan Mid Cap Value Investor ARTQX 30 Artisan Small Cap Investor ARTSX 32 Artisan Small Cap Value Investor ARTVX 32 Artisan Value Fund Investor Shares ARTLX 28 Aston 992-8151 ASTON/Fairpointe Mid Cap N CHTTX 30 ASTON/Montag & Caldwell Growth N MCGFX 24 ASTON/River Road Small Cap Value N ARSVX 32 ASTON/TAMRO Small Cap N ATASX 32 Auxier Focus Inv 877-328-9437 AUXFX 28

BBH Core Select N 625-5759 BBTEX 26 Baird 866-442-2473 Baird Aggregate Bond Inst BAGIX 42 Baird Intermediate Muni Bd Inst BMBIX 44 Baron Capital Group 442-3814 Baron Asset Retail BARAX 28 Baron Growth Retail BGRFX 28 Baron Small Cap Retail BSCFX 32 Berwyn Income 992-6757 BERIX 34 BlackRock 441-7762 BlackRock Energy & Resources Inv A SSGRX 36 BlackRock Global Allocation Inv A MDLOX 40 Bogle Small Cap Growth Inv BOGLX 32 Brandywine 656-3017 Brandywine BRWIX 28 Brandywine Blue BLUEX 24 Bridgeway 661-3550 Bridgeway Blue Chip 35 Index BRLIX 26 Bridgeway Ultra-Small Company Mrkt BRSIX 32 Brown Capital Mgmt Small Co Inv BCSIX 32 Buffalo 492-8332 Buffalo Mid Cap BUFMX 28 Buffalo Small Cap BUFSX 32 CGM 343-5678 CGM Focus CGMFX 24 CGM Realty CGMRX 36 Calamos 582-6959 Calamos Convertible A CCVIX 44 Calamos Growth & Income A CVTRX 34 Calamos Growth A CVGRX 24 Calamos Market Neutral Income A CVSIX 34 Caldwell & Orkin Market Opportunity COAGX 34 Causeway International Value Inv CIVVX 38 Century Small Cap Select Inv 303-1928 CSMVX 32 Champlain Funds 866-773-3238 Champlain Mid Cap Adv CIPMX 30 Champlain Small Company Adv CIPSX 32 Chase Growth N 888-861-7556 CHASX 24 Clipper 432-2504 CFIMX 26 Columbia 345-6611 Columbia Acorn International Z ACINX 38 Columbia Acorn Select Z ACTWX 30 Columbia Acorn USA Z AUSAX 32 Columbia Acorn Z ACRNX 30 Columbia Dividend Income Z GSFTX 28 Columbia Value & Restructuring Z UMBIX 28 Davis Funds 279-0279 Davis Appreciation & Income A RPFCX 34 Davis Financial A RPFGX 36 Davis NY Venture A NYVTX 26 Delafield Fund 697-3863 DEFIX 30 Diamond Hill Funds 888-226-5595 Diamond Hill Large Cap A DHLAX 28 Diamond Hill Small Cap A DHSCX 34 Dimensional Fund Advisors 888-576-1167 DFA US Micro Cap I DFSCX 32 DFA US Small Cap I DFSTX 32 Dodge & Cox 621-3979 Dodge & Cox Balanced DODBX 34 Dodge & Cox Global Stock DODWX 40 Dodge & Cox Income DODIX 42 Dodge & Cox International Stock DODFX 38 Dodge & Cox Stock DODGX 28 Domini Social Equity Inv 582-6757 DSEFX 26 DoubleLine Total Return Bond I DBLTX 42 Dreyfus 373-9387 Dreyfus Appreciation DGAGX 26 Dreyfus Opportunistic Small Cap DSCVX 32 Eaton Vance 262-1122 Eaton Vance Floating Rate A EVBLX 44 Eaton Vance Income Fund of Boston A EVIBX 44 FAM Value Inv 932-3271 FAMVX 30 FMI Large Cap 811-5311 FMIHX 26 FPA 982-4372 FPA Capital FPPTX 30 FPA Crescent FPACX 34 FPA New Income FPNIX 42 FPA Paramount FPRAX 40 FPA Perennial FPPFX 30

Fairholme 866-202-2263 Fairholme FAIRX 28 Fairholme Allocation FAAFX 34 Fairholme Focused Income FOCIX 34 Fidelity Investments 544-6666 Fidelity FFIDX 24 Fidelity Balanced FBALX 34 Fidelity Blue Chip Growth FBGRX 24 Fidelity Capital & Income FAGIX 44 Fidelity Capital Appreciation FDCAX 26 Fidelity Contrafund FCNTX 24 Fidelity Diversified International FDIVX 38 Fidelity Dividend Growth FDGFX 26 Fidelity Equity Dividend Income FEQTX 28 Fidelity Equity-Income FEQIX 28 Fidelity Export & Multinational FEXPX 24 Fidelity Floating Rate High Income FFRHX 44 Fidelity GNMA Fund FGMNX 42 Fidelity Government Income FGOVX 42 Fidelity Growth Company FDGRX 24 Fidelity Growth Discovery FDSVX 24 Fidelity High Income SPHIX 44 Fidelity Independence FDFFX 24 Fidelity Intermediate Bond FTHRX 42 Fidelity Intermediate Government Inc FSTGX 42 Fidelity Intermediate Municipal Income FLTMX 44 Fidelity International Discovery FIGRX 38 Fidelity International Small Cap FISMX 38 Fidelity Investment Grade Bond FBNDX 42 Fidelity Leveraged Company Stock FLVCX 30 Fidelity Low-Priced Stock FLPSX 30 Fidelity Magellan FMAGX 24 Fidelity Mid-Cap Stock FMCSX 30 Fidelity Mortgage Secs FMSFX 42 Fidelity Municipal Income FHIGX 44 Fidelity Municipal Income 2015 FMLCX 44 Fidelity New Markets Income FNMIX 44 Fidelity New Millennium FMILX 24 Fidelity Puritan FPURX 34 Fidelity Real Estate Investment FRESX 36 Fidelity Select Energy FSENX 36 Fidelity Select Health Care FSPHX 36 Fidelity Select Technology FSPTX 36 Fidelity Short-Intermediate Muni Inc FSTFX 44 Fidelity Small Cap Discovery FSCRX 32 Fidelity Small Cap Stock FSLCX 30 Fidelity Small Cap Value FCPVX 34 Fidelity Spartan 500 Index Inv FUSEX 26 Fidelity Spartan Extended Mkt Index FSEMX 30 Fidelity Spartan International Index Inv FSIIX 38 Fidelity Spartan Total Market Index Inv FSTMX 26 Fidelity Stock Selector Sm Cp FDSCX 32 Fidelity Strategic Income FSICX 44 Fidelity Strategic Real Return FSRRX 34 Fidelity Tax-Free Bond FTABX 44 Fidelity Total Bond FTBFX 42 Fidelity Value FDVLX 30 Fidelity Worldwide FWWFX 40 Spartan U.S. Bond Index Investor FBIDX 42 First Eagle 334-2143 First Eagle Fund of America Y FEAFX 30 First Eagle Global A SGENX 40 First Eagle Overseas A SGOVX 38 First Eagle US Value A FEVAX 26 Franklin Templeton Investment Funds 632-2301 Franklin Balance Sheet Investment A FRBSX 30 Franklin Federal Tax-Free Income A FKTIX 44 Franklin High Yield Tax-Free Inc A FRHIX 44 Franklin Income A FKINX 34 Franklin Utilities A FKUTX 36 Mutual Beacon A TEBIX 28 Mutual European A TEMIX 40 Mutual Global Discovery A TEDIX 40 Mutual Quest A TEQIX 40 Mutual Shares A TESIX 28 Templeton Global Bond A TPINX 44

Gabelli Asset AAA 422-3554 GABAX 26 Gateway A 225-5478 GATEX 34 GoodHaven 855-654-6639 GOODX 28 Greenspring 366-3863 GRSPX 34 Harbor 422-1050 Harbor Bond Instl HABDX 42 Harbor Capital Appreciation Instl HACAX 24 Harbor Commodity Real Return Instl HACMX 36 Harbor International Growth Inv HIIGX 38 Harbor International Instl HAINX 38 Harbor Real Return Instl HARRX 42 Harding Loevner International Eq Inv HLMNX 38 Hartford Healthcare A 888-843-7824 HGHAX 36 Homestead Value 258-3030 HOVLX 28 Hussman Investment Trust 487-7626 Hussman Strategic Growth HSGFX 34 Hussman Strategic Total Return HSTRX 34 IVA Worldwide A 866-941-4482 IVWAX 40 Invesco 959-4246 Invesco Van Kampen Comstock A ACSTX 28 Invesco Van Kampen Equity and Income ACEIX 34 Invesco Van Kampen Growth and Inc ACGIX 28 JPMorgan US Real Estate A 480-4111 SUSIX 36 Janus 525-0020 Janus Balanced T JABAX 34 Janus Contrarian T JSVAX 26 Janus Enterprise T JAENX 30 Janus Global Life Sciences T JAGLX 36 Janus Global Research T JARFX 40 Janus Global Select T JORNX 40 Janus Growth & Income T JAGIX 24 Janus High-Yield T JAHYX 44 Janus Overseas T JAOSX 38 Janus Research T JAMRX 24 Janus T JANSX 24 Janus Triton T JATTX 32 Janus Twenty T JAVLX 24 Janus Venture T JAVTX 32 Janus Worldwide T JAWWX 40 Perkins Global Value T JGVAX 40 Perkins Large Cap Value T JPLTX 28 Perkins Mid Cap Value T JMCVX 32 Perkins Small Cap Value T JSCVX 34 Jensen Quality Growth J 992-4144 JENSX 24 Kalmar Growth-with-Value Small Cap KGSCX 32 LKCM 688-5526 LKCM Equity Instl LKEQX 24 LKCM Small Cap Equity Instl LKSCX 32 Laudus Growth Investors US Large Cap Gr LGILX 24 Lazard Emerging Markets Equity Open LZOEX 40 Legg Mason/Western 877-721-1926 Legg Mason Cap Mgmt Value A LGVAX 26 Legg Mason ClearBridge Aggressive Gr SHRAX 24 Western Asset Core Bond I WATFX 42 Western Asset Core Plus Bond I WACPX 44 Leuthold Asset Allocation Retail 273-6886 LAALX 34 Litman Gregory Masters Funds 960-0188 Litman Gregory Masters Equity Instl MSEFX 24 Litman Gregory Masters Foc Opp Instl MSFOX 24 Litman Gregory Masters Intl Instl MSILX 38 Litman Gregory Masters Smlr C Instl MSSFX 32 Litman Gregory Masters Value Instl MSVFX 26 Longleaf Partners 445-9469 Longleaf Partners LLPFX 26 Longleaf Partners International LLINX 38 Longleaf Partners Small-Cap LLSCX 30 Loomis Sayles Funds 633-3330 Loomis Sayles Bond Retail LSBRX 44 Loomis Sayles Global Bond Retail LSGLX 44 Loomis Sayles Small Cap Growth Retail LCGRX 32 Lord Abbett Affiliated A 888-522-2388 LAFFX 28 MFS Total Return A 343-2829 MSFRX 34 Madison Mosaic Investors Y 336-3063 MINVX 24 MainStay 624-6782 MainStay ICAP Equity I ICAEX 28 MainStay ICAP International I ICEUX 38 MainStay ICAP Select Equity I ICSLX 28 MainStay MAP I MUBFX 26

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Mairs & Power 304-7404 Mairs & Power Balanced Inv MAPOX 34 Mairs & Power Growth Inv MPGFX 26 Managers Funds 548-4539 Managers Bond MGFIX 42 Managers Micro-Cap Service MMCFX 32 Managers PIMCO Bond MBDFX 42 Skyline Special Equities SKSEX 34 Manning & Napier 466-3863 Manning & Napier Equity EXEYX 26 Manning & Napier Pro-Blend Cnsrv EXDAX 34 Manning & Napier Pro-Blend Mod Tm EXBAX 34 Manning & Napier World Opp A EXWAX 38 Marsico Investment Fund 888-860-8686 Marsico Focus MFOCX 24 Marsico Global MGLBX 40 Marsico Growth MGRIX 24 Marsico International Opportunities MIOFX 38 Matthews Asia Funds 789-2742 Matthews Asia Dividend Investor MAPIX 40 Matthews Asian Growth & Inc Inv MACSX 40 Matthews China Investor MCHFX 40 Matthews India Investor MINDX 40 Matthews Pacific Tiger Investor MAPTX 40 Merger 343-8959 MERFX 34 Meridian 446-6662 Meridian Growth MERDX 30 Meridian Value MVALX 30 Metropolitan West Funds 241-4671 Metropolitan West High Yield Bd M MWHYX 44 Metropolitan West Total Rn Bond M MWTRX 42 Morgan Stanley Focus Growth A AMOAX 24 Muhlenkamp 860-3863 MUHLX 26 Neuberger Berman 877-9700 Neuberger Berman Genesis Inv NBGNX 30 Neuberger Berman International Inv NBISX 38 Neuberger Berman Large Cap Value Inv NPRTX 28 Nicholas 544-6547 NICSX 30 Oakmark 625-6275 Oakmark Equity & Income I OAKBX 34 Oakmark Global I OAKGX 40 Oakmark Global Select I OAKWX 40 Oakmark I OAKMX 26 Oakmark International I OAKIX 38 Oakmark International Small Cap I OAKEX 38 Oakmark Select I OAKLX 26 Old Westbury Global Small & Mid Cap OWSMX 40 OppenheimerFunds 225-5677 Oppenheimer Developing Markets A ODMAX 40 Oppenheimer Global A OPPAX 40 Oppenheimer Global Opportunities A OPGIX 40 Oppenheimer Gold & Special Minerals OPGSX 36 Oppenheimer International Growth A OIGAX 38 Osterweis 866-236-0050 OSTFX 30 PIMCO 927-4648 PIMCO All Asset All Authority D PAUDX 40 PIMCO All Asset D PASDX 40 PIMCO Commodity Real Ret Strat D PCRDX 36 PIMCO Emerging Local Bond Instl PELBX 44 PIMCO EqS Pathfinder D PTHDX 40 PIMCO Foreign Bond (USD-Hedged) D PFODX 44 PIMCO Foreign Bond (Unhedged) D PFBDX 44 PIMCO Fundamental Advtg Ttl Ret Strat PFSDX 42 PIMCO Global Multi-Asset D PGMDX 40 PIMCO High Yield D PHYDX 44 PIMCO Investment Grade Corp Bd Instl PIGIX 42 PIMCO Low Duration D PLDDX 42 PIMCO Real Return D PRRDX 42 PIMCO Short-Term D PSHDX 42 PIMCO Total Return Instl PTTRX 42 PIMCO Unconstrained Bond D PUBDX 44 PRIMECAP Odyssey Funds 729-2307 PRIMECAP Odyssey Agg Growth POAGX 30 PRIMECAP Odyssey Growth POGRX 24 PRIMECAP Odyssey Stock POSKX 24 Parnassus Equity Income - Inv 999-3505 PRBLX 26 Pax World Balanced Individual Inv PAXWX 34 Payden GNMA 572-9336 PYGNX 42 Permanent Portfolio 531-5142 PRPFX 36 Polaris Global Value 888-263-5594 PGVFX 40

Queens Road Small Cap Value 595-3088 QRSVX 34 RS Funds 766-3863 RS Capital Appreciation A RCAPX 24 RS Value A RSVAX 30 Rainier Small/Mid Cap Equity 248-6314 RIMSX 30 Royce 221-4268 Royce Opportunity Invmt RYPNX 34 Royce Pennsylvania Mutual Invmt PENNX 32 Royce Premier Invmt RYPRX 30 Royce Special Equity Invmt RYSEX 32 Royce Special Equity Multi-Cap Serv RSEMX 26 Royce Total Return Invmt RYTRX 32 Royce Value Plus Svc RYVPX 32 Royce Value Svc RYVFX 30 Saturna 888-732-6262 Amana Trust Growth AMAGX 24 Amana Trust Income AMANX 26 Schneider Funds 888-520-3277 Schneider Small Cap Value SCMVX 34 Schneider Value SCMLX 32 Schwab Funds 407-0256 Schwab S&P 500 Index SWPPX 26 Schwab Total Stock Market Index SWTSX 26 Scout International 996-2862 UMBWX 38 Selected American Shares D 243-1575 SLADX 26 Sequoia 686-6884 SEQUX 26 Sound Shore 551-1980 SSHFX 28 Stratton Small-Cap Value 472-4266 STSCX 32 T. Rowe Price 638-5660 T. Rowe Price Balanced RPBAX 36 T. Rowe Price Blue Chip Growth TRBCX 24 T. Rowe Price Capital Appreciation PRWCX 36 T. Rowe Price Corporate Income PRPIX 42 T. Rowe Price Dividend Growth PRDGX 26 T. Rowe Price Emerging Markets Stock PRMSX 40 T. Rowe Price Equity Income PRFDX 28 T. Rowe Price Financial Services PRISX 36 T. Rowe Price GNMA PRGMX 42 T. Rowe Price Global Stock PRGSX 40 T. Rowe Price Global Technology PRGTX 36 T. Rowe Price Growth & Income PRGIX 24 T. Rowe Price Growth Stock PRGFX 24 T. Rowe Price Health Sciences PRHSX 36 T. Rowe Price High-Yield PRHYX 44 T. Rowe Price International Bond RPIBX 44 T. Rowe Price International Discovery PRIDX 38 T. Rowe Price International Stock Fd PRITX 38 T. Rowe Price Intl Gr & Inc TRIGX 38 T. Rowe Price Media & Telecom PRMTX 36 T. Rowe Price Mid-Cap Growth RPMGX 30 T. Rowe Price Mid-Cap Value TRMCX 32 T. Rowe Price New America Growth PRWAX 24 T. Rowe Price New Asia PRASX 40 T. Rowe Price New Era PRNEX 36 T. Rowe Price New Horizons PRNHX 32 T. Rowe Price New Income PRCIX 42 T. Rowe Price Personal Strat Growth TRSGX 36 T. Rowe Price Personal Strat Income PRSIX 36 T. Rowe Price Real Estate TRREX 36 T. Rowe Price Retirement 2015 TRRGX 36 T. Rowe Price Science & Tech PRSCX 36 T. Rowe Price Short-Term Bond PRWBX 42 T. Rowe Price Small-Cap Stock OTCFX 32 T. Rowe Price Small-Cap Value PRSVX 32 T. Rowe Price Spectrum Growth PRSGX 26 T. Rowe Price Spectrum Income RPSIX 44 T. Rowe Price Tax-Free High-Yield PRFHX 44 T. Rowe Price Tax-Free Income Inv PRTAX 44 T. Rowe Price Tax-Free Shrt-Interm PRFSX 44 T. Rowe Price Value TRVLX 28

TCW 248-4486 TCW Dividend Focused N TGIGX 28 TCW International Small Cap I TGICX 38 TCW Total Return Bond I TGLMX 42 Third Avenue 443-1021 Third Avenue International Value Instl TAVIX 38 Third Avenue Real Estate Value Instl TAREX 36 Third Avenue Small Cap Value Instl TASCX 32 Third Avenue Value Instl TAVFX 40 Thornburg 847-0200 Thornburg International Value A TGVAX 38 Thornburg Value A TVAFX 26 Torray 626-9769 TORYX 26 Touchstone Sands Capital Select Growth PTSGX 24 Turner Investment Partners 224-6312 Turner Midcap Growth Investor TMGFX 30 Turner Small Cap Growth TSCEX 32 Tweedy Browne 432-4789 Tweedy, Browne Global Value TBGVX 38 Tweedy, Browne Value TWEBX 40 Tweedy, Browne Worldwide Hi Div Yld TBHDX 40 USAA 531-8722 USAA Aggressive Growth USAUX 24 USAA Income USAIX 42 USAA International USIFX 38 USAA Tax Exempt Intermediate-Term USATX 44 Vanguard 662-7447 Vanguard 500 Index Admiral VFIAX 26 Vanguard Balanced Index Adm VBIAX 36 Vanguard Capital Opportunity Inv VHCOX 24 Vanguard Capital Value Inv VCVLX 26 Vanguard Convertible Securities Inv VCVSX 44 Vanguard Developed Markets Indx Ad VDMAX 38 Vanguard Dividend Growth Inv VDIGX 26 Vanguard Emerging Mkts Stk Idx Adm VEMAX 40 Vanguard Energy Inv VGENX 36 Vanguard Equity-Income Inv VEIPX 28 Vanguard European Stock Index Adm VEUSX 40 Vanguard Explorer Inv VEXPX 32 Vanguard Explorer Value Investor VEVFX 32 Vanguard Extended Market Idx Adm VEXAX 30 Vanguard FTSE All-Wld ex-US Idx Adm VFWAX 38 Vanguard FTSE Social Index Inv VFTSX 24 Vanguard GNMA Inv VFIIX 42 Vanguard Global Equity Inv VHGEX 40 Vanguard Growth & Income Inv VQNPX 26 Vanguard Growth Equity Inv VGEQX 24 Vanguard Growth Index Adm VIGAX 24

Vanguard Health Care Inv VGHCX 36 Vanguard High Dividend Yield Indx Inv VHDYX 28 Vanguard High-Yield Corporate Inv VWEHX 44 Vanguard High-Yield Tax-Exempt VWAHX 44 Vanguard Inflation-Protected Secs Inv VIPSX 42 Vanguard Interm-Term Bond Index Adm VBILX 42 Vanguard Interm-Term Invmt-Grade Inv VFICX 42 Vanguard Interm-Term Treasury Inv VFITX 42 Vanguard Interm-Term Tx-Ex Inv VWITX 44 Vanguard International Explorer Inv VINEX 38 Vanguard International Growth Inv VWIGX 38 Vanguard International Value Inv VTRIX 38 Vanguard LifeStrategy Income Inv VASIX 36 Vanguard Long-Term Invest-Grd Inv VWESX 42 Vanguard Long-Term Tax-Exempt VWLTX 44 Vanguard Long-Term Treasury Inv VUSTX 42 Vanguard Ltd-Term Tx-Ex VMLTX 44 Vanguard Mid Cap Growth Inv VMGRX 30 Vanguard Mid Cap Index Adm VIMAX 30 Vanguard Morgan Growth Inv VMRGX 26 Vanguard PRIMECAP Core Inv VPCCX 26 Vanguard PRIMECAP Inv VPMCX 26 Vanguard Precious Metals and Min Inv VGPMX 36 Vanguard REIT Index Adm VGSLX 36 Vanguard STAR Inv VGSTX 36 Vanguard Selected Value Inv VASVX 32 Vanguard Short-Term Bond Index Adm VBIRX 42 Vanguard Short-Term Federal Inv VSGBX 42 Vanguard Short-Term Invest-Grd Inv VFSTX 42 Vanguard Short-Term Treasury Inv VFISX 42 Vanguard Short-Term Tx-Ex VWSTX 44 Vanguard Small Cap Growth Index Ad VSGAX 32 Vanguard Small Cap Index Adm VSMAX 32 Vanguard Small Cap Value Index Adm VSIAX 34 Vanguard Strategic Equity Inv VSEQX 30 Vanguard Target Retirement 2025 Inv VTTVX 36 Vanguard Tax-Managed Balanced Adm VTMFX 36 Vanguard Tax-Managed Capital App VTCLX 26 Vanguard Tax-Managed Growth & Inc VTGLX 26 Vanguard Tax-Managed Intl Adm VTMGX 38 Vanguard Tax-Managed Small Cap VTMSX 34 Vanguard Total Bond Market Index Adm VBTLX 42 Vanguard Total Intl Stock Index Admiral VTIAX 38 Vanguard Total Stock Mkt Idx Adm VTSAX 26 Vanguard US Value Inv VUVLX 28 Vanguard Value Index Adm VVIAX 28 Vanguard Wellesley Income Inv VWINX 36 Vanguard Wellington Inv VWELX 36 Vanguard Windsor II Investor VWNFX 28 Vanguard Windsor Investor VWNDX 28 Wasatch 551-1700 Wasatch Core Growth WGROX 32 Wasatch Heritage Growth WAHGX 30 Wasatch Large Cap Value Investor FMIEX 28 Wasatch Small Cap Growth WAAEX 32 Wasatch Ultra Growth WAMCX 32 Weitz 304-9745 Weitz Hickory WEHIX 30 Weitz Partners Value WPVLX 30 Weitz Value WVALX 26 Wells Fargo Advantage S/T Muni Bd Inv STSMX 44 Westport Funds 888-593-7878 Westport R WPFRX 30 Westport Select Cap R WPSRX 30 Westwood SMidCap Institutional WHGMX 30 William Blair 635-2886 William Blair International Growth N WBIGX 38 William Blair Small Cap Growth N WBSNX 32 Yacktman 457-6033 Yacktman YACKX 28 Yacktman Focused YAFFX 28

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Morningstar FundInvestor Volume 20, Number 10


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