(PUB) Investing 2015

12

U.S. Stocks Fall Market Overview | Robert Goldsborough

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

01-31-15

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

-1.8 -1.8 16.4 14.8 7.8 -3.0 -3.0 15.9 14.0 6.9 -3.6 -3.6 15.3 13.3 6.4 -2.0 -2.0 14.9 15.3 8.4 -2.6 -2.6 15.5 14.9 7.9 -2.7 -2.7 16.5 14.9 8.1 -3.0 -3.0 14.4 15.9 8.1 -3.6 -3.6 13.9 14.5 7.5 -4.3 -4.3 13.4 13.5 7.2 -1.3 -1.3 11.2 10.5 5.9 0.2 0.2 6.1 7.0 4.9 -0.8 -0.8 10.0 9.6 6.0 -0.9 -0.9 12.4 11.7 5.1 -6.0 -6.0 14.9 9.2 2.0 3.7 3.7 12.9 12.0 5.9 3.0 3.0 29.7 22.1 13.1 -3.2 -3.2 -3.8 2.2 5.5 13.7 13.7 -24.7 -9.7 2.7 5.7 5.7 15.0 18.8 9.0 -2.6 -2.6 15.5 14.7 8.9 0.2 0.2 14.7 13.2 9.1 -2.9 -2.9 17.4 15.6 7.6 -1.1 -1.1 17.0 17.0 9.9 -3.3 -3.3 15.3 15.7 7.9 1.8 1.8 8.7 6.8 6.1 0.3 0.3 1.5 3.0 7.6 0.6 0.6 10.8 7.6 5.9 0.5 0.5 8.2 6.2 4.7 0.7 0.7 8.9 7.3 5.4 0.2 0.2 7.5 5.3 3.7 0.3 0.3 11.2 10.5 7.6 -0.6 -0.6 9.3 7.2 5.4 -1.0 -1.0 11.7 10.2 6.3 0.6 0.6 9.0 6.4 4.4 -1.8 -1.8 12.9 10.7 6.1 -0.7 -0.7 -0.5 2.3 7.6 0.0 0.0 10.2 6.6 4.8 -6.3 -6.3 -14.2 -7.4 5.8 1.5 1.5 7.9 6.3 4.5 0.3 0.3 6.4 7.7 6.4 2.6 2.6 0.0 3.5 3.8 1.8 1.8 3.5 4.8 4.5 1.8 1.8 4.5 5.6 4.3

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

January was a tough month for U.S. stock markets, as the continued slide in oil prices and a series of disappointing corporate earnings reports were to blame. Gross domestic product growth for the fourth quarter was 2 . 6% , which was well below expec- tations. Crude oil ended the month at $48 a barrel. Utilities companies had a strong month, with the category posting a 4 . 5% gain. The health-care sector also outperformed nicely, returning 3 . 3% , and Gold-rated Vanguard Health Care VGHAX did better still, returning 3 . 7% . Not surprisingly, the energy sector brought up the rear, declining more than 5 . 5% . Foreign stocks were a mixed bag in January. The MSCI EAFE Index gained 2 . 2% for the month. Japanese stocks did even better, returning 4 . 3% . That spelled good news for Matthews Asia Dividend Investor MAPIX , which devotes more than a fourth of its portfolio to Japanese com- panies and returned 3 . 4% . Emerging markets had a solid month, with the MSCI Emerging Markets Index gaining 2 . 1% in the month. India stocks had a terrific month, with Matthews India Investor MINDX returning 9 . 5% on the heels of a 64% return in 2014 that was fueled by investors’ optimism in India’s new government. Chinese stocks put a poor 2014 in the rear-view mirror, returning 2 . 9% in January. Matthews China MCHFX topped its category, returning 3 . 9% . The U.S. bond market rallied, as the yield on the benchmark 10 -year Treasury note slid in January to 1 . 7% , reaching its lowest level since May 2013 . Municipal bonds participated in the rally, with the intermediate-term muni category gaining 1 . 38% . K

Small Growth Small Blend Small Value

Aggressive Allocation Conservative Allocation Moderate Allocation

Communications

Financial

Global Real Estate

Health

Natural Resources

Equity Precious Metals

Real Estate Technology

Utilities

S&P 500

S&P MidCap 400

Russell 2000

Diversified Pacific/Asia Diversified Emerging Mkts

Europe Stock

Foreign Large Blend Foreign Large Growth Foreign Large Value

Foreign Small/Mid Growth Foreign Small/Mid Value

World Stock

MSCI EAFE MSCI World

MSCI Emerging Markets

MSCI Europe

MSCI Latin America

MSCI Pacific

High Yield Bond

Inflation-Protected Bond Intermediate-Term Bond

Muni National Long

World Bond 0.3 0.3 1.9 3.5 4.1 BarCap US Agg Bond TR USD 2.1 2.1 3.0 4.4 4.7 BofAML US HY Master II TR 0.7 0.7 7.6 8.7 7.7 BarCap Municipal TR USD 1.8 1.8 4.1 5.4 4.8