The Multi-Manager Small Cap Fund trailed the benchmark during the quarter, with a return of 1.82%. Overall stock selection was additive to results, however, the Funds underweight allocation to the energy sector represented a drag on relative return as energy far outpaced other sectors of the market.
Among the sub-advisers, Hotchkis & Wiley delivered the strongest results, with particular success in the industrials and healthcare sectors. Quality growth sub-adviser Riverbridge struggled during the quarter, with technology stocks and consumer holdings dragging down returns.
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.