of 16
8/18/2019 First Quarter Market Report
1/16
Q1Quarterly Market ReviewFirst Quarter 2016
Insert FirmLogo
8/18/2019 First Quarter Market Report
2/16
Quarterly Market ReviewFirst Quarter 2016
Overview:
Market Summary
Worl Sto!k Market "er#orman!e
Worl $sset %lasses
&S Sto!ks
International 'evelo(e Sto!ks
)merging Markets Sto!ks
Sele!t %ountry "er#orman!e
Real )state Investment *rusts +R)I*s,
%ommoitiesFi-e In!ome
.lo/al 'iversi#i!ation
Quarterly *o(i!: Free *rows
*is re(ort #eatures worl !a(ital market (er#orman!e
an a timeline o# events #or te (ast uarter It /egins
wit a glo/al overview3 ten #eatures te returns o#
sto!k an /on asset !lasses in te &S an
international markets
*e re(ort also illustrates te (er#orman!e o# glo/ally
iversi#ie (ort#olios an #eatures a uarterly to(i!
8/18/2019 First Quarter Market Report
3/16
Market Summary
4
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.
Market segment (index representation) as foll ows: US Stock Market (Russell 3000 Index), International e!eloped Stocks (MS"I #orld ex US$ Index %net di!&'), merging Markets (MS"I merging Markets Index %net di!&'),lo*al Real state (S+ lo*al RI- Index), US .ond Market (.arcla/s US $ggregate .ond Index), and lo*al .ond ex US Market ("itigroup #.I ex US$ 130 2ears %edged to US')& -4e S+ data are pro!ided */
Standard + oor5s Index Ser!ices roup& Russell data 6 Russell In!estment roup 77890;, all rig4ts reser!ed& MS"I data 6 MS"I 0;, all rig4ts reser!ed& .arcla/s data pro!ided */ .arcla/s .ank
8/18/2019 First Quarter Market Report
4/16
Worl Sto!k Market "er#orman!e
5rap4 Source: MS"I $"#I Index& MS"I data 6 MS"I 0;, all rig4ts reser!ed&
It is not possi*le to in!est directl/ in an index& erformance does not reflect t4e expenses associated wit4 management of an actual portfolio&Past performance is not a guarantee of future results&
MS%I $ll %ountry Worl Ine- wit sele!te ealines #rom Q1 2016
*ese ealines are not o##ere to e-(lain market returns Instea3 tey serve as a reminer tat investors soul view aily
events #rom a longterm (ers(e!tive an avoi making investment e!isions /ase solely on te news
127
157
167
187
207
227
9an Fe/ Mar
%ina Market 'ro(
Leas to Worries
o# Furter *urmoil;
'ow3 Sre-itA Fears;
&S3 %ina $gree to
San!tion ?ort Boreaon ?u!lear "rogram;
&S )!onomy
Starting 2016 on
Soli Footing;
?et Wort o# &S Couseols
Rose to Re!or D868 *rillion
in Fourt Quarter;
.lo/al %urren!ies
Soar3 'e#ying
%entral >ankers;
S
8/18/2019 First Quarter Market Report
5/16
Worl Sto!k Market "er#orman!e
7
-4ese 4eadlines are not offered to explain market returns& Instead, t4e/ ser!e as a reminder t4at in!estors s4ould !iew dail/ e!ents from a long=term perspecti!e and a!oid making in!estment decisions *ased solel/ on t4e news&
rap4 Source: MS"I $"#I Index& MS"I data 6 MS"I 0;, all rig4ts reser!ed&
It is not possi*le to in!est directl/ in an index& erformance does not reflect t4e expenses associated wit4 management of an actual portfolio&Past performance is not a guarantee of future results&
MS%I $ll %ountry Worl Ine- wit sele!te ealines #rom (ast 12 monts
520E5 0 52125 0 52174 0 52187 0 52216 0 5225F 0 522FF 0 5240F 0 52448 0 5246E 0 524E8 0 5252E 0 52560 0150
160
180
200
Long Term(2000–Q1 2016)
0000
70000
100000
170000
200000270000
Last 12
months
?asa %om(osite3
Sailout )-tension;
Iran3 Worl "owers
Rea! ?u!lear 'eal;
&S Oil
"ri!es Fall to
Si-=ear Low;
&S %onsumer
"ri!es Rise #or Si-t
Straigt Mont;
&S Se!on Quarter
.'" .rows 4E;
IMF 'owngraes
.lo/al )!onomi!
Outlook $gain;
"aris $tta!ks
Leave More tan
100 'ea;
)uro(ean Markets
to Finis 2017 among
WorlAs *o( "er#ormers;
'ow3 Sre-itA Fears;
?et Wort o# &S
Couseols Rose toRe!or D868 *rillion
in Fourt Quarter;
S
8/18/2019 First Quarter Market Report
6/16
Worl $sset %lasses
6
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.
-4e S+ data is pro!ided */ Standard + oor5s Index Ser!ices roup& Russell data 6 Russell In!estment roup 77890;, all rig4ts reser!ed& MS"I data 6 MS"I 0;, all rig4ts reser!ed& ow >ones data (formerl/ ow
>ones #ils4ire) pro!ided */ ow >ones Indexes& .arcla/s data pro!ided */ .arcla/s .ank
8/18/2019 First Quarter Market Report
7/16
10
165
147
0E
05
172
568
Ranke Returns #or te Quarter +,
&S Sto!ks
First Quarter 2016 Ine- Returns
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio &
Market segment (index representation) as follows: Marketwide (Russell 3000 Index),
8/18/2019 First Quarter Market Report
8/16
International 'evelo(e Sto!ks
8
First Quarter 2016 Ine- Returns
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Market segment (index representation) as foll ows:
8/18/2019 First Quarter Market Report
9/16
)merging Markets Sto!ks
E
First Quarter 2016 Ine- Returns
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Market segment (index representation) as follows:
8/18/2019 First Quarter Market Report
10/16
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
44701
746
1016
28
202
2288
2088
150
17E0
1587
1576
1445
125
1276
1126
840
820
42
0E
725
554
517
000000
000
000
Ranke )merging Markets Returns +,
000
000
000
000
000
000
000
000
000
000
016
080
117
151
218
221
264
461
466
587768
87
105
1187
E2E
71
426
2E
274
12E
0
024
00E
000
000
000
000
000
000
000
000
000
000000
000
000
Ranke 'evelo(e Markets Returns +,
Sele!t %ountry "er#orman!e
10
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio &
"ountr/ performance *ased on respecti!e indices in t4e MS"I #orld ex US IMI Index (for de!eloped markets), Russell 3000 Index (for US), and MS"I merging Markets IMI Index& $ll returns in US and net of wit44olding tax
on di!idends& MS"I data 6 MS"I 0;, all rig4ts reser!ed& Russell data 6 Russell In!estment roup 77890;, all rig4ts reser!ed& U$ and @atar 4a!e *een reclassified as emerging markets */ MS"I, effecti!e Ma/ 0A&
%anaa re!ore te igest !ountry (er#orman!e in evelo(e markets3 wile Israel an Italy (oste te lowest returns #or te uarter In
emerging markets3 >raGil an "eru re!ore te igest !ountry returns3 wile %ina an .ree!e re!oring te lowest
First Quarter 2016 Ine- Returns
8/18/2019 First Quarter Market Report
11/16
Real )state Investment *rusts +R)I*s,
11
First Quarter 2016 Ine- Returns
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.Bum*er of RI- stocks and total !alue *ased on t4e two indices& $ll index returns are net of wit44olding tax on di!idends& -otal !alue of RI- stocks represented */ ow >ones US Select RI- Index and t4e S+ lo*al ex
US RI- Index& ow >ones US Select RI- Index used as prox/ for t4e US market, and S+ lo*al ex US RI- Index used as prox/ for t4e #orld ex US market& ow >ones US Select RI- Index data pro!ided */ ow
>ones 6& S+ lo*al ex US RI- Index data pro!ided */ Standard and oor5s Index Ser!ices roup 6 0;&
R)I*s in evelo(e markets (oste very strong
(er#orman!e #or te uarter &S R)I*s out(er#orme
/roa market &S euity ini!es
6050
*otal Jalue o# R)I* Sto!ks
860
712
Ranke Returns +,
8/18/2019 First Quarter Market Report
12/16
8/18/2019 First Quarter Market Report
13/16
1
448
248
444
>on =iels a!ross Issuers +,
Fi-e In!ome
14
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.
& .arcla/s US "orporate .ond Index& & .arcla/s Municipal .ond Index& 2ield cur!e data from Cederal Reser!e& State and local *onds are from t4e .ond .u/er Index, general o*ligation, 0 /ears to maturit/, mixed Dualit/&
$$$=$$ "orporates represent t4e .ank of $merica Merrill
8/18/2019 First Quarter Market Report
14/16
.rowt o# Wealt: *e Relationsi( /etween Risk an Return
Stock/Bond Mix
.lo/al 'iversi#i!ation
15
First Quarter 2016 Ine- Returns
i!ersification does not eliminate t4e risk of market loss& Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect expensesassociated with the management of an actual portfolio & $sset allocations and t4e 4/pot4etical index portfolio returns are for illustrati!e purposes onl/ and do not represent actual performance& lo*al Stocks represented */
MS"I $ll "ountr/ #orld Index (gross di!&) and -reasur/ .ills represented */ US Gne=Mont4 -reasur/ .ills& lo*all/ di!ersified allocations re*alanced m ont4l/, no wit4drawals& ata 6 MS" I 0;, all rig4ts reser!ed& -reasur/
*ills 6 Stocks, .onds, .ills, and Inflation 2ear*ookE, I**otson $ssociates, "4icago (annuall/ updated work */ Roger & I**otson and Rex $& SinDuefield)&
*ese (ort#olios illustrate te (er#orman!e o# i##erent
glo/al sto!k/on mi-es an igligt te /ene#its o#
iversi#i!ation Mi-es wit larger allo!ations to sto!ks
are !onsiere riskier /ut ave iger e-(e!te
returns over time
007
022
044
048
048
Ranke Returns +,
42016
100 Sto!ks
727
7070
277
100 *reasury >ills
8/18/2019 First Quarter Market Report
15/16
“What do you regard as the most difficult period in the financial markets during your 25 years in the investment business?”
I am o#ten aske tis uestion3 usually /y (eo(le wo alreay ave a #ramework an o(inion as a result o# living troug one or several market ownturns
For e-am(le3 many oler avisors an teir !lients regar te 1E4N1E5 /ear market as te tougest (erio in teir investment li#etime Mileage
investors may !onsier te te! /oom an /ust o# te late 1EE0s an early 2000s to /e te /ellweter event #or a generation o# investors wo assume tey
!oul get ri! on one great sto!k (i!k *oay3 Hust a/out everyone remem/ers te 2008N200E glo/al #inan!ial !risis3 aving e-(erien!e te an-iety o#
e!lining investment a!!ounts temselves
or knowing someone wo i
*e market e!line in early 2016 as mu! o# te same #eel as (ast events *imes like tese are never easy #or !lients or avisors3 wo must !on#ront teir!on!ern tat tings Hust migt /e i##erent tis time; Wen in te mist o# a market e!line3 it is natural to sense tat te volatility is lasting longer an is
worse tan anyting /e#ore $s a result3 avisors s(en a lot o# time talking to teir !lients in an e##ort to alleviate elevate !on!erns an #ears
Cow o we #in te wors tat migt el( minimiGe te #ear an an-iety avisorsA !lients #eel a/out teir investment (ort#olios an retirement se!urity $s you
know3 no single wor or story !an ease teir !on!ernsKan !ertainly not overnigt *e more e##e!tive !ourse may /e #or avisors to steaily lea !lients
own a (at #rom worry to !alm troug a !onversational a((roa! tat em(asiGes te im(ortan!e o# sti!king wit teir (lan
LI!I" #$%&'SS T% IS&I#LI'
I a te o((ortunity a #ew weeks ago to s(eak at an avisorAs !lient event in %ali#ornia $s I was riving to te event3 I tougt a/out ow
to make te (resentation !onversational an ensure te !on!e(ts o# (ro!ess an is!i(line resonate wit te auien!e
*e auien!e was a s(ortsoriente !row3
an I a a/out 17 minutes to get a!ross one im(ortant !on!e(t tat migt el( tem navigate te !o((y markets *en I remem/ere an arti!le I rea
a/out worl!lass atletes an teir a((roa! to su!!ess *e autor es!ri/e ow te greatest atletes3 #rom Olym(ians to allstar (ro#essionals3 #o!us on
(ro!ess rater tan out!ome wen !om(eting at te igest level I tougt a/out tis in !onte-t o# my own !ollege atleti! e-(erien!e3 wi!3 altoug not at
te Olym(i! level3 involve te same nee #or !alm an
#o!us uring ig(ressure moments in
a /asket/all game
Imagine yoursel# (laying in a !am(ionsi( /asket/all game =our team is trailing /y one (oint =ou are #oule Hust as te game !lo!k goes to Gero =ou ave
two #ree trows Make /ot an you win Miss tem an you lose
Free *rows
17$dapted from HCree -4rows, $d!isor "ommunit/ column, Marc4 0;& imensional Cund $d!isors
8/18/2019 First Quarter Market Report
16/16