The Multi-Manager International Equity Fund underperformed for the quarter with a return of 4.03%, compared with the MSCI ACWI® Ex-USA Index return of 5.03%. Stock selection was the primary driver of underperformance, particularly in North America. From a sector perspective, the Fund performed well within health care but lagged among technology and materials stocks.
Among the sub-advisers, each struggled to add value to varying degrees. Northern Crosss significant overweight to Continental Europe represented a drag on returns as this portion of the market underperformed. Value sub-adviser NFJ was the strongest performer during the quarter, benefiting from an overweight to emerging markets and an underweight in Europe.
If you're a long-term investor looking to diversify your investments by pursuing the growth potential of international stocks, 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.
- Invest in companies of any size throughout the world, but primarily in developed markets and generally in securities similar to those in the MSCI ACWI® EX-USA Index.
- 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 and return.