U.S. equity markets rallied in the second quarter, with the S&P 500® Index returning 5.24%. Large-cap stocks underperformed their mid- and small-cap counterparts, with the Russell Midcap® Index gaining 7.70% and the Russell 2000® Index gaining 10.21%. Over the period, the Russell 1000® Index returned 6.02%. Positive results were driven by the more cyclical parts of the market, with industrials and materials leading the way.
The Multi-Manager Large Cap Fund outperformed during the quarter with a return of 6.86%, compared with the Russell 1000® Index return of 6.02%. Stock selection continued to be the primary driver of returns, and performance was notably strong among consumer staples and technology stocks. Sector positioning made a modestly positive contribution during the quarter. The Fund has an overweight allocation to consumer, healthcare and technology stocks, with underweights to financials and industrials.
Sub-adviser results were strong during the period, with three of the four sub-advisers outperforming their style benchmarks. Growth sub-adviser Jennison was the strongest performer, advancing over 12%. The strong market for growth stocks provided a tailwind for Jennisons strategy. In addition, Jennison added value through stock selection among technology and consumer issues. West End ended the quarter flat to the benchmark. Their portfolios significant exposure to consumer staples represented a headwind to results, as more defensive sectors were left behind during the quarter. West End invests with a very long-term view, and it is within expectations that their allocations may be out of step with the market over any
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.