Multi-Manager International Equity
as of March 31, 2014
Fund Commentary
Non-U.S. equity markets rose during the first quarter as the MSCI ACWI® ex-USA Index posted a 0.51% return. The Europe ex-U.K. region returned 3.5% on stronger-than-expected corporate earnings, improving economic conditions and a continued cleansing of the European financial system. Peripheral European markets generated some of the largest gains, with Ireland and Italy both returning over 14%. Meanwhile, the U.K. fell 0.8% despite a recovering housing market and rising consumer spending. Emerging markets again lagged developed markets, with the MSCI Emerging Markets Index returning -0.4%. Declines in Russia and China were the primary drivers of emerging market weakness during the quarter.

The Multi-Manager International Equity Fund finished the quarter behind the benchmark with a return of -0.18%. The Fund’s sector and regional allocation benefited returns, while stock selection detracted. Selection within North America and Asia ex-Japan represented the most significant drag on returns.

Northern Cross, which benefited from a significant overweight to Europe and little exposure to Japan, was the only sub-adviser to outperform during the quarter. In contrast, Altrinsic’s significant overweight to Japan hurt returns, as did stock selection in Japan and Continental Europe. Overall, the Fund continues to be overweight Europe and underweight Japan, Developed Asia and Emerging Markets.
Investor Profile

If you're a long-term investor looking to diversify your investments by pursuing the growth potential of international stocks, then this Fund may be right for you. It is intended for investors who are aware that foreign markets may involve additional risks, such as social and political instability, reduced market liquidity, and currency volatility.

  • Invest in companies of any size throughout the world, but primarily in developed markets and generally in securities similar to those in the MSCI ACWI® EX-USA Index.
  • 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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