The Multi-Manager Mid Cap Fund underperformed during the quarter, with a return of 1.68% compared with the Russell Midcap® return of 3.53%. Stock selection drove the Funds underperformance during the quarter, with particular weakness in the healthcare and industrials sectors.
Sub-adviser LSVs quantitative portfolio was the strongest performer during the quarter, returning over 5% and matching the strong returns of the Russell Midcap Value Index. The Funds other sub-advisers, Geneva and Systematic, both underperformed meaningfully during the period. Genevas stock selection within the technology sector hindered results, while Systematic was hurt by performance among financials and consumer discretionary holdings.
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.