Multi-Manager Large Cap
as of March 31, 2014
Fund Commentary
In the first quarter, increased geopolitical risk from the Russia/Ukraine conflict and a more hawkish-than-expected stance from U.S. Federal Reserve Chair Janet Yellen contributed to volatility in the U.S. equity market, which nevertheless finished with a positive return. For the period, the Russell 1000® Index gained 2.05%, and the Russell 1000® Value Index outperformed the Russell 1000® Growth Index. Defensive sectors, such as health care and utilities, outperformed cyclical areas during the quarter. Banks were a top-performing industry, due to the market’s renewed expectations for rising rates. The consumer sectors lagged, with retailers continuing to struggle as low, weather-induced store traffic hindered profit margins.

The Multi-Manager Large Cap Fund underperformed during the quarter with a return of 0.97% compared with the Russell 1000® return of 2.05%. The narrowness of the market gains during the quarter represented a challenge for the Fund and its sub-advisers. The utilities sector, which represents only 2.5% of the benchmark, returned over 18% during the quarter and had an outsized impact on overall benchmark results. In fact, only three benchmark sectors outperformed the broad market. These narrowly driven gains represented a headwind to the Fund’s more diversified approach.

All four of the sub-advisers underperformed during the quarter to varying degrees. West End’s concentrated sector exposures were out of favor during the three-month period. Underperformance by both Huber and Jennison was driven by stock selection in consumer staples and technology, respectively. Delaware delivered the strongest results during the quarter, returning 2.93%.
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.

Philosophy
  • 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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