The Wall Street Journal - 22.08.2019

B10| Thursday, August 22, 2019 ** THE WALL STREET JOURNAL.**

NetYTD Fund NAV Chg %Ret American Century Inv Ultra 48.59 +0.45 20.2 American Funds Cl A AmcpA p 31.74 +0.24 14.4 AMutlA p 41.73 +0.31 12.3 BalA p 27.44 +0.11 11.4 BondA p 13.34 -0.02 7.8 CapIBA p 60.86 +0.32 9.8 CapWGrA 47.92 +0.42 13.2 EupacA p 51.17 +0.48 13.6 FdInvA p 58.47 +0.51 13.5 GwthA p 49.61 +0.41 16.0 HI TrA p 10.00 +0.03 8.4 ICAA p 37.81 +0.30 12.8 IncoA p 22.51 +0.16 10.7 N PerA p 44.18 +0.42 17.3 NEcoA p 44.96 +0.29 15.8 NwWrldA 66.04 +0.59 15.1 SmCpA p 55.85 +0.59 19.1 TxExA p 13.45 ... 7.2 WshA p 45.62 +0.35 14.3 Baird Funds

NetYTD Fund NAV Chg %Ret AggBdInst 11.31 -0.01 9.1 CorBdInst 11.64 ... 9.5 BlackRock Funds HiYldBd Inst 7.62 ... 10.7 BlackRock Funds A GlblAlloc p 18.55 ... 9.0 BlackRock Funds III iShS&P500IdxK348.13+2.88 18.2 BlackRock Funds Inst EqtyDivd 19.25 +0.14 14.1 GlblAlloc 18.67 ... 9.2 MultiAstIncome10.80 ... 10.1 StratIncOpptyIns9.92 ... 5.6 Bridge Builder Trust CoreBond 10.55 -0.02 7.9 CorePlusBond10.40 -0.02 7.6 Intl Eq 10.91 +0.08 9.5 Del Invest Instl Value 21.15 +0.16 9.0 Dimensional Fds 5GlbFxdInc10.96 -0.01 3.9 DFARlEst 40.54 +0.14 25.1

NetYTD Fund NAV Chg %Ret EmgMktVa 26.05 +0.21 -2.8 EmMktCorEq19.51 +0.17 2.1 IntlCoreEq 12.31 +0.09 7.0 IntSmCo 17.02 +0.11 7.4 IntSmVa 17.12 +0.07 3.6 LgCo 22.61 +0.18 18.2 TAUSCoreEq218.46 +0.15 15.7 US CoreEq123.75 +0.20 16.5 US CoreEq221.74 +0.18 15.4 US Small 32.31 +0.25 9.2 US SmCpVal30.75 +0.23 3.0 US TgdVal 20.92 +0.15 6.2 USLgVa 35.05 +0.26 10.2 Dodge & Cox Balanced 98.28 +0.42 9.3 GblStock 11.87 +0.07 7.6 Income 14.16 ... 8.5 Intl Stk 39.10 +0.27 5.9 Stock 181.84+1.25 10.0 DoubleLine Funds CoreFxdIncmI11.19 -0.01 7.6

Wednesday, August 21, 2019

Mutual Funds Fund NAV Chg %RetNetYTDFund NAV Chg %RetNetYTDFund NAV Chg %RetNetYTDFund NAV Chg %RetNetYTDFund NAV Chg %RetNetYTDFund NAV Chg %RetNetYTDFund NAV Chg %RetNetYTD

Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. e -Ex-distribution. f -Previous day’s quotation. g -Footnotes x and s apply. j -Footnotes e and s apply. k -Recalculated by Lipper, using updated data. p -Distribution costs apply, 12b-1. r -Redemption charge may apply. s -Stock split or dividend. t -Footnotes p and r apply. v -Footnotes x and e apply. x -Ex-dividend. z -Footnote x, e and s apply. NA -Not available due to incomplete price, performance or cost data. NE -Not released by Lipper; data under review. NN -Fund not tracked. NS -Fund didn’t exist at start of period.

TotRetBdI 10.81 -0.01 6.0 Edgewood Growth Instituti EdgewoodGrInst35.53 +0.36 23.4 Fidelity 500IdxInstPrem101.90+0.84 18.2 ExtMktIdxInstPre61.24 +0.50 17.1 IntlIdxInstPrem39.61 +0.25 9.2 MidCpInxInstPrem22.22 +0.18 19.7 SAIUSLgCpIndxFd15.81 +0.13 18.2 SmCpIdxInstPrem19.41 +0.15 13.0 TMktIdxInstPrem82.94 +0.68 18.0 USBdIdxInstPrem12.02 -0.02 8.5 Fidelity Advisor I NwInsghtI 32.41 +0.26 20.1 Fidelity Freedom FF2020 15.78 +0.05 10.5 FF2025 13.75 +0.05 11.1 FF2030 16.97 +0.09 12.0 Freedom2020 K15.77 +0.06 10.6 Freedom2025 K13.73 +0.05 11.1 Freedom2030 K16.95 +0.08 12.1 Freedom2035 K14.05 +0.09 12.6 Freedom2040 K9.76 +0.07 12.6 Fidelity Invest Balanc 23.50 +0.11 14.8 BluCh 101.34+1.14 20.6 Contra 13.09 +0.12 19.9 ContraK 13.10 +0.12 20.0 CpInc r 9.98 +0.04 13.3 GroCo 19.78 +0.25 23.5 GrowCoK 19.80 +0.25 23.5 InvGrBd 11.62 -0.02 9.0 LowP r 46.77 +0.30 7.8 Magin 10.92 +0.09 23.1

OTC 12.28 +0.12 23.4 Puritn 22.17 +0.12 14.0 SrsEmrgMkt18.17 +0.15 10.7 SrsGroCoRetail17.53 +0.22 24.1 SrsIntlGrw 16.16 +0.18 20.6 SrsIntlVal 9.11 +0.06 5.9 TotalBond 10.95 -0.01 9.1 Fidelity SAI TotalBd 10.71 -0.01 8.9 First Eagle Funds GlbA 57.09 +0.24 12.2 FPA Funds FPACres 32.26 +0.10 11.3 Franklin A1 CA TF A1 p 7.75 ... 9.4 IncomeA1 p 2.27 +0.01 9.9 FrankTemp/Frank Adv IncomeAdv 2.25 +0.01 10.0 FrankTemp/Franklin A Growth A p109.01+0.93 21.1 RisDv A p 66.77 +0.56 21.3 FrankTemp/Franklin C Income C t 2.30 +0.01 9.4 FrankTemp/Temp Adv GlBondAdv p10.81 +0.05 ... Guggenheim Funds Tru TotRtnBdFdClInst27.56 -0.03 5.5 Harbor Funds CapApInst 74.66 +0.84 20.5 Harding Loevner IntlEq NA ... NA Invesco Funds A EqIncA 10.12 +0.03 11.8 Invesco Funds Y

DevMktY 41.23 +0.16 9.7 JPMorgan I Class EqInc 17.99 +0.12 14.7 JPMorgan R Class CoreBond 12.07 -0.02 8.9 CorePlusBd 8.57 -0.01 9.0 Lord Abbett A ShtDurIncmA p4.22 ... 4.4 Lord Abbett F ShtDurIncm 4.22 ... 4.4 Lord Abbett I ShtDurInc p 4.22 ... 4.5 Metropolitan West TotRetBd 11.11 ... 8.8 TotRetBdI 11.10 -0.01 8.9 TRBdPlan 10.45 -0.01 8.9 MFS Funds Class I ValueI 41.55 +0.21 18.4 MFS Funds Instl IntlEq 25.88 +0.27 15.6 Nuveen Cl I HYMunBd 18.09 -0.01 10.7 Oakmark Funds Invest EqtyInc r 29.82 +0.13 10.9 Oakmark 76.15 +0.42 11.5 OakmrkInt 21.57 +0.20 5.4 Old Westbury Fds LrgCpStr 14.62 +0.11 15.6 Parnassus Fds ParnEqFd 47.31 +0.34 21.8 PGIM Funds Cl Z TotalReturnBond15.02 ... 10.4 PIMCO Fds Instl AllAsset 11.48 +0.02 6.0 ShortT 9.78 ... 1.9

TotRt 10.52 -0.02 8.3 PIMCO Funds A IncomeFd NA ... NA PIMCO Funds I2 Income NA ... NA PIMCO Funds Instl IncomeFd NA ... NA Price Funds BlChip 116.01+1.02 20.8 EqInc 30.68 +0.22 13.6 EqIndex 78.09 +0.65 18.1 Growth 68.85 +0.57 20.6 HelSci 76.84 +0.70 14.7 InstlCapG 42.03 +0.38 17.7 IntlStk 17.05 +0.15 13.9 MidCap 94.79 +0.65 24.1 N Inc 9.76 -0.01 8.7 NHoriz 63.71 +0.82 32.2 OverS SF r 9.96 +0.07 7.1 R2020 21.94 +0.08 12.3 R2025 17.46 +0.08 13.2 R2030 25.41 +0.13 13.9 R2035 18.62 +0.11 14.5 R2040 26.48 +0.17 15.0 Value 35.94 +0.25 17.6 PRIMECAP Odyssey Fds AggGrowth r43.56 +0.36 13.7 Growth r 38.04 +0.28 9.5 Stock r 32.25 +0.30 12.1 Schwab Funds 1000 Inv r 66.08 +0.55 18.5 S&P Sel 45.27 +0.37 18.2 TSM Sel r 51.43 +0.43 18.0 TIAA/CREF Funds

BdIdxInst 11.22 -0.01 8.4 VANGUARD ADMIRAL 500Adml 270.62+2.23 18.2 BalAdml 37.32 +0.17 14.4 CAITAdml 12.20 -0.01 6.8 CapOpAdml r148.00+1.06 12.1 EMAdmr 33.53 +0.23 6.5 EqIncAdml 74.15 +0.55 13.1 ExplrAdml 93.72 +0.93 20.5 ExtndAdml88.22 +0.73 17.2 GNMAAdml10.54 -0.01 4.8 GrwthAdml85.73 +0.85 24.7 HlthCareAdml r82.12 +0.60 6.8 HYCorAdml r5.86 +0.02 11.8 InfProAd 26.31 -0.05 8.0 IntlGrAdml 90.26 +0.80 13.9 ITBondAdml11.96 -0.02 10.5 ITIGradeAdml10.10 -0.01 9.8 LTGradeAdml11.37 -0.02 21.9 MidCpAdml204.66+1.78 20.5 MuHYAdml11.88 -0.01 8.9 MuIntAdml14.62 ... 7.0 MuLTAdml 12.08 -0.01 8.5 MuLtdAdml11.13 -0.01 3.8 MuShtAdml15.88 ... 2.1 PrmcpAdml r136.31+1.22 12.7 RealEstatAdml129.74+0.54 24.8 SmCapAdml73.26 +0.57 16.6 SmGthAdml65.42 +0.62 23.9 STBondAdml10.61 -0.01 4.4 STIGradeAdml10.75 -0.01 4.9 TotBdAdml11.15 -0.02 8.7 TotIntBdIdxAdm23.55 -0.02 9.3 TotIntlAdmIdx r27.04 +0.20 8.2 TotStAdml 72.61 +0.60 18.0

TxMCapAdml151.22+1.26 18.8 TxMIn r 12.82 +0.10 8.8 USGroAdml106.84+1.18 22.9 ValAdml 42.25 +0.28 12.2 WdsrllAdml62.45 +0.52 14.4 WellsIAdml65.59 +0.10 12.5 WelltnAdml72.06 +0.33 14.0 WndsrAdml68.74 +0.52 13.2 VANGUARD FDS DivdGro 30.08 +0.21 24.0 INSTTRF202023.41 +0.08 11.3 INSTTRF202523.74 +0.10 12.1 INSTTRF203023.90 +0.11 12.5 INSTTRF203524.05 +0.13 12.9 INSTTRF204024.21 +0.16 13.3 INSTTRF204524.29 +0.17 13.5 INSTTRF205024.33 +0.17 13.5 IntlVal 34.27 +0.27 6.8 LifeCon 20.50 +0.05 11.0 LifeGro 33.61 +0.21 13.0 LifeMod 27.48 +0.11 12.0 PrmcpCor 26.40 +0.23 12.8 STAR 26.70 +0.14 13.4 TgtRe2015 15.29 +0.04 10.3 TgtRe2020 31.87 +0.11 11.3 TgtRe2025 19.07 +0.08 12.1 TgtRe2030 34.68 +0.17 12.5 TgtRe2035 21.24 +0.12 12.9 TgtRe2040 36.58 +0.23 13.2 TgtRe2045 22.92 +0.16 13.4 TgtRe2050 36.89 +0.26 13.4 TgtRet205540.04 +0.28 13.4 TgtRetInc 13.83 +0.02 9.5 TotIntBdIxInv11.78 -0.01 9.3

WellsI 27.07 +0.04 12.4 Welltn 41.73 +0.19 13.9 WndsrII 35.20 +0.30 14.3 VANGUARD INDEX FDS ExtndIstPl217.70+1.80 17.2 MdCpVlAdml56.23 +0.43 15.2 SmValAdml53.58 +0.33 10.5 TotBd2 11.11 -0.02 8.6 TotIntl 16.16 +0.12 8.1 TotSt 72.58 +0.61 17.9 VANGUARD INSTL FDS BalInst 37.32 +0.16 14.4 DevMktsIndInst12.84 +0.10 8.9 DevMktsInxInst20.06 +0.15 8.8 ExtndInst 88.21 +0.73 17.2 GrwthInst 85.74 +0.85 24.8 InPrSeIn 10.72 -0.02 8.0 InstIdx 265.53+2.18 18.2 InstPlus 265.55+2.18 18.2 InstTStPlus63.09 +0.52 18.0 MidCpInst 45.21 +0.39 20.5 MidCpIstPl222.98+1.94 20.5 SmCapInst 73.26 +0.57 16.6 STIGradeInst10.75 -0.01 5.0 STIPSIxins 24.84 -0.02 3.7 TotBdInst 11.15 -0.02 8.7 TotBdInst211.11 -0.02 8.6 TotBdInstPl11.15 -0.02 8.7 TotIntBdIdxInst35.34 -0.03 9.3 TotIntlInstIdx r108.12+0.80 8.1 TotItlInstPlId r108.15+0.80 8.2 TotStInst 72.62 +0.60 18.0 ValueInst 42.25 +0.28 12.2 Western Asset CorePlusBdI12.09 +0.01 10.4

Data provided by

market volatility, along with slow underwriting and merger advisory business, amid global trade concerns and economic uncertainty. “Geopolitical risks and trade tensions are having an impact on both business and market sentiment world-wide,” said Chief Executive Dave McKay, during a call with analysts. RBC’s credit-loss provision climbed 27% from a year earlier to C$425 million. Net interest income—or the interest that banks take in from loans versus the interest they pay out on deposits—was C$5.05 billion, up 9.8%. Noninterest income, which comes from catego- ries like insurance premiums and investment management, was C$6.5 billion, up 1%. The bank expects interest margins to fall in the coming year, assuming the outlook for more rate cuts in Canada and the U.S. remains unchanged, said Rod Bolger, the chief financial officer. The Bank of Canada, the country’s central bank, is ex-

pected to keep interest rates steady, but it has faced more pressure to lower rates after the U.S. Federal Reserve recently cut rates by a quarter of a percentage point. Lower rates can hurt bank profitability by reducing what they earn in interest on some loans. To counter the expected drop, the bank will cut ex- penses, particularly in the treasury services group, Mr. Bolger said. Total revenue, or net interest income and noninterest income combined, was C$11.54 billion. Analysts were expecting C$11.16 billion. The bank’s capital ratio climbed to 11.9% in the third quarter from 11.8% in the sec- ond quarter. Mr. McKay said the bank would conserve capital in light of global economic uncertainty and avoid acquisi- tions. He said prices for other banks in the U.S. are still relatively high and the bank is con- tent for now to grow its exist- ing business. The bank, which spent C$197

million on share buybacks during the quarter, will continue to return money to shareholders with further repurchases, Mr. McKay said. RBC raised its quarterly dividend by 3% to C$1.05 a share. Separately, the bank said Wednesday that the head of RBC Capital Markets and RBC Investor & Treasury Services, Doug McGregor, 63 years old, is retiring at the end of January. RBC Capital Markets’ global head of investment banking, Derek Neldner, 46, will take over as group head of capital markets in November. A bank spokeswoman said the capital-markets business more than doubled between 2008 and 2018 during Mr. McGregor’s tenure. RBC has been aggressively trying to raise its U.S. capital-markets presence in recent years. It ranks 11th in terms of investment banking revenue in the U.S. this year, behind Deutsche Bank AG, Wells Fargo & Co. and Credit Suisse Group AG, according to Dealogic.

TORONTO— Royal Bank of Canada ’s profit increased in its fiscal third quarter as net interest income rose by almost 10%. Canada’s largest bank by market capitalization reported net income of $3.26 billion Ca- nadian dollars (US$2.45 billion) in the three months ended July 31, up from roughly C$3.1 billion in the year-prior quarter. Earnings were C$2.22 a share, up from C$2.10. The bank said it had earnings of C$2.26 a share on an adjusted basis, up from C$2.14. The bank’s personal and commercial banking, wealth management and insurance businesses grew, but income from capital markets and treasury investor services fell 6% and 24%, respectively. RBC followed the recent lead of larger firms like JPMorgan Chase & Co., Goldman Sachs Group and Morgan Stanley in saying investment banking re- sults were pressured by low

BYVIPALMONGA ANDALLISONPRANG

Consumers Drive RBC Profit Rise

Bankbondshaveperformedwellthisyeardueinparttoaslowdown innewdebtsales,evenasbankshareshaveslumpedrecently.

U.S.bondissuanceby investment-grade financialinstitutions*

Sources: Bloomberg Barclays (yields); FactSet (index performance); Dealogic (bond issuance) * As of Tuesday

ExtrayieldoverU.S.Treasurys*

Indexperformance

$450

0

50

100

150

200

250

300

350

400

billion

2012 ’13 ’14 ’15 ’16 ’17 ’18 ’19

Financialbonds

Industrialbonds

KBWNasdaq BankIndex

S&P500 10

–25

–20

–15

–10

–5

0

5

%

2018 ’19

1.6

0.8

1.0

1.2

1.4

percentage points

2018 ’19

moves as a first step to re- vamp the technical aspects of proxy voting that the commission may consider in the coming months, such as height- ened requirements for shareholders who wish to float governance changes on corporate ballots. While Republican commis- sioners also disputed that Wednesday’s moves imposed any new requirements on proxy advisers or investment advisers that rely on their recommendations, officials said they may soon propose additional rules on the proxy advisers, though they were vague on what that could en- tail. Proxy advisers analyze corporate proxies, make voting recommendations and offer software that lets investors cast votes at hundreds or even thousands of companies effi- ciently, according to policies set by the investors. A “no” recommendation from an adviser can make the difference in close votes over executive compensation or director elections, which are among the issues often pushed by activist hedge funds in con- tentious corporate elections. ISS in particular has been criticized by corporations, Re- publican lawmakers and oth- ers for selling corporate-governance consulting services to some of the same companies for which it offers voting recommendations. The company has said it maintains a strict separation between the two arms of its business and discloses con- flicts when asked. SEC staff said Wednesday’s moves are meant to clarify that proxy advisers must thor- oughly disclose potential con- flicts. Broadly speaking, proxy advisers already comply with

Continued from page B1

continue to shrink. Bank shares have broadly declined in recent weeks. Citi- group, for example, has lost 11% this month, while JPMor- gan has fallen 7.2%. Their bonds have fared bet- ter. The spread on Citigroup’s 3.980% notes due in 2030 was recently 1.18 percentage points, up just 0.04 percentage

point from the end of last month, according to Market- Axess. The spread on JPMorgan’s 3.702% notes due in 2030 has similarly climbed by 0.08 percentage point to 1.08 percentage points. The “banking sector in gen- eral is on a broader upward credit trajectory,” said Jona-

than Duensing, director of investment grade corporates at Amundi Pioneer. Even though bank bonds have outperformed this year, Mr. Duensing said he contin- ues to prefer them to nonfi- nancial company debt, given his view that some other sec- tors would be more at risk in a slowdown.

The relatively strong performance of bank bonds is sending an encouraging signal at a time when financial stocks are under pressure from recession fears. The KBW Nasdaq Bank In- dex of large U.S. commercial lenders has slid 10% so far this month, as investors have reg- istered concern about slowing economic growth and falling interest rates, which could pressure banks’ profit margins. The S&P 500, by compar- ison, has fallen 1.9% Although the extra yield, or spread, that investors demand to hold bank bonds over U.S. Treasurys has also increased, it hasn’t climbed as much as those on bonds backed by industrial companies. In fact, the average spread on bank bonds recently fell to 84% of the spread on investment-grade industrial-sector bonds, the lowest level since

BYSAMGOLDFARB

BANKING & FINANCE

February 2016, according to Bloomberg Barclays data. Investors and analysts say bank debt has retained its ap- peal largely because of postcrisis regulations that have forced banks to hold more loss-absorbing capital and strengthen their balance sheets. In contrast to where it stood during the last recession, the banking sector is now seen as among the least vulnerable to a crisis if the economy were to slow sharply. That scenario makes investors confident that their bonds will be repaid at maturity. Adding to the demand for bank bonds this year: Finan- cial institutions have sold relatively few new bonds compared with previous years when they were under greater pressure to issue debt to meet certain regulatory requirements, investors and analysts say. Through Monday, financial institutions had issued $300 billion of bonds, down 21% from the year-earlier period, according to Dealogic. Even the negative impact of lower bank profits could ulti- mately be mitigated for debt

investors, some analysts say. If the economy slows and long-term interest rates stay near historic lows, the Federal Reserve may be less inclined to allow banks to return a hefty share of their profits to shareholders in the form of dividends and stock buybacks, said Jesse Rosenthal, head of U.S. financials at the research firm CreditSights. The Fed is expected to make its next de- termination in June. There is, in that way, “a kind of natural offset for cred- itors,” Mr. Rosenthal said. Major banks, so far, have continued to report healthy earnings. In the three months ended June 30, robust con- sumer business drove profits higher at JPMorgan Chase & Co., Wells Fargo & Co., and Citigroup Inc. Goldman Sachs Group Inc. was the only large U.S. bank to report lower profit than it did a year earlier. Even so, net interest margins—the spread between what banks earn on loans compared with what they pay out for deposits—have nar- rowed, as long-term U.S. Trea- sury yields have declined. And many fear those margins could

Demand for Bank

Bonds Allays Fears

Sector’s stock down, but debt buoyed by postcrisis measures and fewer issuances

Canada’s largest bank by market capitalization said earnings weatheredglobal economic uncertainty that has discouraged investment.

MARK BLINCH/REUTERS

their responsibilities under the new guidance, staff also said. Elad Roisman, a Republican commissioner who is leading the SEC’s overhaul, said mom- and-pop investors are the ulti- mate beneficiaries of Wednes- day’s guidance. “These Main Street investors who invest their money in funds are the ones who will benefit from—or bear the cost of—these advisers’ voting de- cisions,” he said. “It is our job as regulators to help ensure that such advisers vote proxies in a manner consistent with their fiduciary obligations and that the proxy voting advice upon which they rely is com- plete and based on accurate information.” Wednesday’s measures come amid an offensive by public companies and their trade groups, including the U.S. Chamber of Commerce and the National Association of Manufacturers, against the proxy-advisory industry.

The groups have purchased advertisements targeting proxy advisers, sponsored a Washington think-tank event and testified at multiple Sen- ate committee hearings on the issue. Corporations say the advisory firms—which make recommendations to shareholders on how to vote on corporate governance issues—have too much sway over corporate de- cision-making. Companies argue that they spend too much time and money fighting proposals they think would be detrimental to their overall performance. Jay Timmons, president and chief executive of the Na- tional Association of Manufac- turers, praised the commission for “concrete steps that will help protect the savings of Main Street investors.”

SEC Moves

To Boost

Disclosures

Officials said they may soon propose additional rules on the proxy advisers.

The Wall Street Journal - 22.08.2019

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