The Multi-Manager Global Real Estate Fund finished slightly behind the benchmark during the quarter, returning 6.71%, compared with the benchmark return of 6.90%. The Fund benefited from underweight exposure to emerging markets, although stock selection within emerging markets detracted. Stock selection within the Pacific ex-Japan region also subtracted from results.
Among sub-advisers, CBRE added value due to their lack of emerging markets exposure and strong results in the European market. The EII portfolio struggled within the Asian market during the quarter.
If you're a long-term investor looking to diversify your investments by pursuing the growth potential of global real estate, 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 real estate equities involves special risks linked to the real estate market, including declines in the value of real estate, changes in the value of the underlying property, and defaults by borrowers. Foreign investing entails the risk that returns may be reduced by currency fluctuations.