Active managers as a group underperformed the benchmark during the quarter, with the Russell Midcap Index ranking in the top quartile of the Morningstar Mid Cap Blend Universe. Amid a difficult environment for active management, the Multi-Manager Mid Cap Fund returned 2.58%, compared with the Russell Midcap Index return of 4.97%. Stock selection drove relative underperformance during the quarter, as industrials, information technology and financials were areas of particular underperformance.
All of the Funds sub-advisers underperformed during the quarter to varying degrees. Geneva Capitals high quality growth strategy continued to post disappointing results during the quarter, particularly within the consumer and healthcare sectors. Following a strong first quarter, LSV also underperformed, with much of the underperformance concentrated in the industrials and technology areas.
If you're a long-term investor looking to diversify your investments by pursuing the growth potential of mid-sized company stocks, then this Fund may be right for you. It is intended for investors who are aware that mid-sized company stocks are generally riskier than large-company stocks due to greater volatility and less liquidity.
- Invest in mid-cap stocks through a variety of external mid-cap managers who have distinct investment styles and strategies.
- 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.