The Multi-Manager Emerging Markets Equity Fund outperformed during the quarter with a return of -1.46%, compared with the benchmark return of -1.62%. Stock selection drove the Fund’s relative outperformance, with particular strength in the materials and financial sectors. Relative performance was weaker in the consumer and energy segments. The Fund is positioned with an underweight to China and Latin America, and an overweight to the Middle East.

Sub-adviser performance was within expectations during the quarter. Pzena continued to perform exceptionally well during the quarter, driven by strong results in the materials and consumer sectors. Axiom also delivered strong results, adding value in financials. Trilogy underperformed during the quarter, with holdings in China and Brazil declining.

If you're a long-term investor looking to diversify your investments by pursuing the growth potential of emerging and frontier market equities, 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.

Investing in emerging markets entails extra risk. The securities markets of emerging countries are less liquid, more volatility, and less regulated than the markets of more developed countries. This risk is magnified in frontier countries since they generally have smaller economies or less developed capital markets than traditional emerging markets.

• Invest at least 80% of net assets in equity securities of emerging and frontier markets — emerging and frontier markets are defined as markets in MSCI Emerging Markets Index and MSCI Frontier Markets 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.