Following a strong 2013, the Multi-Manager Small Cap Fund trailed the benchmark during the first quarter with a return of 0.26%, compared with the Russell 2000® Index return of 1.12%. Stock selection added to relative results within the consumer discretionary sector, while positions in health care and energy detracted from returns.
Sub-adviser performance was mixed during the quarter. Cardinal Capital was the best performer, gaining over 3% based on exceptional stock selection. Growth sub-adviser Riverbridge delivered the weakest results, driven by underperformance in the technology and consumer staples sectors. Despite the relatively weak quarter,
12-month performance for the sub-advisers and the Fund remains ahead of the benchmark.
If you're a long-term investor looking to diversify your investments by pursuing the growth potential of small-company stocks, then this Fund may be right for you. It is intended for investors who are aware that small-company stocks are generally riskier than large-company stocks due to greater volatility and less liquidity.
- Invest in small-cap stocks through a variety of external small-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.