Morningstar Advisor Catalog 2008 - 7

Reduction of Risk Over Time Range of Returns 1926–2007 Small-Company Stocks 150% Large-Company Stocks Government Bonds Treasury Bills Sector Performance 2005–2007 2005 ice Serv 2006 ice Serv 2007 ice Serv < 20 125 7.2% 15.0% –4.4% 10 0 100 ring ring ufac tu ufac tu ufac tu Market Return Market Return ring 6.5% Man 15.7% 20.0% 16.9% Information Man 5.9% Market Return –10 Man 75 11.2% –1.8% Information 22.8% 10.5% Information –20 < % Return 50 25 12.5% 10.4% 5.5% 3.7% Compound Annual Return h r t u y j i o p a k s d f g Information Sector Software Hardware Telecommunications Media Service Sector Healthcare Services Consumer Services Business Services Financial Services Manufacturing Sector Consumer Goods Industrial Materials Energy Utilities Return% –2.7 2.5 –2.4 –11.0 h r t u y j i o p a k s d f g Information Sector Software Hardware Telecommunications Media Service Sector Healthcare Services Consumer Services Business Services Financial Services Manufacturing Sector Consumer Goods Industrial Materials Energy Utilities Return% 17.6 9.1 35.6 22.1 h r t u y j i o p a k s d f g Information Sector Software Hardware Telecommunications Media Service Sector Healthcare Services Consumer Services Business Services Financial Services Manufacturing Sector Consumer Goods Industrial Materials Energy Utilities Return% 15.8 16.9 11.2 –12.9 0 8.2 1.9 15.9 6.8 7.9 11.0 13.4 21.5 9.6 –5.2 13.7 –15.9 –25 –50 2.1 2.9 34.4 14.8 17.5 17.6 23.1 24.8 11.3 20.5 37.2 18.2 1-Year Holding Periods 5-Year 20-Year 1-Year 5-Year 20-Year 1-Year 5-Year 20-Year 1-Year 5-Year 20-Year Past performance is no guarantee of future results. This data is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. This data is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. Reduction of Risk over Time Sector Performance Risk of Stock Market Loss Over Time 1926–2007 One-year returns 50% Periods with gain Periods with loss 40% 28% 0 72% Growth Versus Value Stocks One-year growth and value trends 1969–2007 Performance Differential Large Growth Large Value 30 20 5-year annualized returns 50% 13% 10 0 Each bar represents the average return for the preceding 5-year time period. 87% 12-Month Rolling Returns 75% 15-year annualized returns 50% 50 25 0 –25 100% 0 Each bar represents the average return for the preceding 15-year time period. –50 1926 1936 1946 1956 1966 1976 1986 1996 2006 Jan–Dec 1969 Jan–Dec 1974 Jan–Dec 1979 Jan–Dec 1984 Jan–Dec 1989 Jan–Dec 1994 Jan–Dec 1999 Jan–Dec 2004 Past performance is no guarantee of future results. This data is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Performance differential measures the outperformance of each asset class over one another using 12-month rolling returns. Each 12-month rolling return represents the annualized return for the preceding 12 months. This data is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. Risk of Stock Market Loss over Time Growth versus Value Stocks Morningstar Market Barometer 2003–2007 2003 Value Large Cap International Opportunities 1970–2007 2005 2006 2007 30% 2004 Core Growth Returns as of December 2007 U.S. Stocks International Stocks 26.3 24.7 30.6 14.1 14.0 0.2 7.0 3.8 3.4 25.8 15.5 5.7 –0.4 8.6 12.3 22.1% 20 Mid Cap 35.9 38.7 40.0 24.3 19.1 15.5 11.5 10.1 16.3 18.8 14.7 9.6 –5.5 2.0 19.7 10 11.6% 5.5% 0 12.8% 9.0% 5.9% 11.8% 7.8% 13.0% 12.6% 11.1% 11.6% Small Cap 48.9 24.0 23.6 13.5 5.1 6.3 5.8 20.0 21.2 10.0 –8.1 –5.4 11.1 1 year 5 years 10 years 20 years 30 years 38 years % Return Growth of $10,000 650,000 $640,277 $540,533 Morningstar US Market Index Daily Values 5,000 Total Annual Returns: +30.7% +12.4% +6.5% +15.7% +5.9% 490,000 330,000 3,500 170,000 2,000 Jan Dec Jan Dec Jan Dec Jan Dec Jan Dec $10,000 1970 1975 1980 1985 1990 1995 2000 2005 This data is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Market Barometer International Opportunities 7
Morningstar Advisor Catalog 2008

Table of Contents for the Digital Edition of Morningstar Advisor Catalog 2008
