as of December 31, 2013
Fund Commentary
The S&P MidCap 400® Index returned 8.33% for the fourth quarter of 2013. The Fund returned 8.29%, closely tracking its benchmark. U.S. mid-cap equities underperformed large-cap equities as measured by the S&P 500® Index return of 10.51% for the period.

Industrials, which returned 11.16%, represented the top-performing sector in the Index. This was followed by notable performances from the consumer discretionary and materials sectors, which returned 10.52% and 9.49%, respectively. The bottom performer was telecommunications services, which returned -3.72%.

U.S. equities ended the year with another strong quarter, partly driven by positive market reactions to monetary and fiscal policy activity in Washington. The Federal Reserve provided assurance of continued monetary stimulus, boosting U.S. equities at the end of the third quarter and into the start of the fourth quarter. This positive performance was sustained through October despite a fiscal stalemate and a government shutdown. A temporary budget deal was reached late in October, and a longer-term agreement was reached in December, reducing fiscal uncertainty. Janet Yellen was nominated as the next Fed Chair, and her testimony before Congress assured markets that policy would remain appropriately accommodative. Markets initially reacted positively to the Fed announcement that a tapering of asset purchases would begin in January, as the move was seen to be less dramatic than many had anticipated while demonstrating confidence in the strength of the economic recovery.
Investor Profile

If you're a moderate risk investor seeking competitive long-term investment returns through a broadly diversified portfolio, this Fund may be appropriate for you. It offers a high degree of relative predictability in an uncertain stock market by seeking investment results, before expenses, approximating the aggregate price and dividend performance of the securities included in the S&P MidCap 400 Index.

Philosophy
  • Passively managed, the Fund seeks to duplicate the investment composition and overall performance of the stocks included in the S&P MidCap 400 Index.
  • Invest at least 80% of its net assets in equity securities in the Index, in weightings that approximate the relative composition of the Index.
  • Use proprietary quantitative techniques designed to minimize trading costs.
 
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Not FDIC insured | May lose value | No bank guarantee

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