Multi-Manager Large Cap
as of June 30, 2014
Fund Commentary
During the second quarter, U.S. large-cap stocks outperformed mid- and small-cap indices. Growth and value stocks delivered similar returns within the larger-cap segment. For the period, energy was the top-performing segment of the domestic equity market, driven in part by continued increases in oil and gas prices. With Treasury yields continuing to decline, the utilities sector was the second-best performer for the quarter, leading all sectors for the year-to-date period. Real estate investment trusts (REITs) also benefited from falling yields, while banks were one of the weakest industries during the quarter. The consumer discretionary sector — apparel retailers in particular — lagged during the three-month period, as earnings in the sector came in below expectations. Large biotechnology and Internet software stocks rebounded after a flat first quarter despite intra-quarter volatility.

The Multi-Manager Large Cap Fund underperformed during the quarter with a return of 4.16%, compared with the Russell 1000® Index return of 5.12%. Stock selection was the primary driver of underperformance, with particular weakness among information technology and consumer discretionary stocks.

Sub-adviser Delaware posted the best performance during the period, benefiting from an underweight position in the financial sector and strong results among energy stocks. Huber Capital detracted from returns, as their holdings within the technology sector underperformed.
Investor Profile

If you're a long-term investor looking to diversify your investments by pursuing the growth potential of large-company stocks, then this Fund may be right for you.

  • Invest in large-cap stocks through a variety of external large-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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