Multi-Manager Mid Cap
as of June 30, 2014
Fund Commentary
During the second quarter, U.S. mid-cap stocks as measured by the Russell Midcap® Index returned 4.97%. As Treasury yields continued to decline, utilities and telecommunications services were the top-performing sectors in the Index after energy. Real estate investment trusts (REITs) continued to benefit from the same trend in yields, while banks were one of the weakest industries for the quarter. The Russell Midcap® Value Index led domestic equity markets for the second quarter in a row, outperforming the Russell Midcap® Growth Index by 1.25%.

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 Fund’s sub-advisers underperformed during the quarter to varying degrees. Geneva Capital’s 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.
Investor Profile

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.

Philosophy
  • 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.
 
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Not FDIC insured | May lose value | No bank guarantee

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