Multi-Manager Global Listed Infrastructure
as of March 31, 2014
Fund Commentary
Global infrastructure securities outperformed the broader equity market during the period. The S&P Global Infrastructure Index generated a return of 7.02% during the first quarter. Europe continues to benefit from healthy investor demand and capital inflows, and once again led the performance of infrastructure issues. Results in the Americas and Asia Pacific regions outgained the broad equity market as well. Sectors with large exposures to Europe performed strongly in the quarter, including toll roads and airports. Ports lagged due to overcapacity issues in China and Brazil, and on concern over slowing global trade.

The Multi-Manager Global Listed Infrastructure Fund finished slightly behind the benchmark during the quarter, with a return of 6.33% compared with the benchmark return of 7.02%. The Fund benefited from its exposure to select water utilities. From a regional perspective, selection in North America and the emerging markets was relatively weak, while the Fund performed well within the U.K.

Sub-adviser Lazard outperformed during the quarter, benefiting from their significant allocation to Europe as well as from strong security selection among water companies. Lazard also benefited from a lack of exposure to ports. Sub-adviser Brookfield underperformed during the quarter, with a return of 4.83%. Relative positive contributions from the United Kingdom were not enough to offset weakness demonstrated in Continental Europe and North America. Across sectors issue selection was generally positive, led by contributions from the oil and gas storage and transportation, construction and engineering and railroads industry groups. The sub-adviser’s underweight allocations to the market-leading electric utilities and highways industry groups served as a headwind to quarterly performance.
Investor Profile

If you're a long-term investor looking to diversify your investments by pursuing the income and growth potential of globally listed infrastructure securities, then this Fund may be right for you. It is intended for investors who are aware that foreign markets may involve additional risks, such as social and political instability, reduced market liquidity and currency volatility.

Philosophy
  • Invest at least 80% of net assets in securities of infrastructure companies listed on a domestic or foreign exchange, normally investing at least 40% (and up to 100%) in infrastructure companies tied to foreign countries, including emerging and frontier markets.
  • Select complementary managers from a broad universe of investment managers.
  • Blend managers into a single fund in an effort to provide an attractive combination of risk/return.
 
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** commenced investment operations on September 18, 2012.