The Multi-Manager Global Real Estate Fund underperformed during the quarter with a return of 4.15%, compared with the benchmark return of 5.70%. Stock selection was the primary driver of underperformance, particularly in North America. In the United States, the Fund’s focus on larger-cap, higher-quality companies represented a drag on performance, as the smaller-cap segment of the market outperformed. The Fund also underperformed in the Asian region.

Two of the Fund’s three sub-advisers underperformed during the quarter. Cohen & Steers was the best performer during the quarter, outperforming by over 70 basis points (0.70%). However, both European Investors and CBRE struggled during the quarter, driven by stock selection in North America and Asia.

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.

• Invest at least 80% of net assets in global real estate equities, primarily in real estate investment trusts (REITs).
• 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.