The Multi-Manager Global Real Estate Fund lagged the benchmark during the quarter, returning 3.00% compared with the FTSE® EPRA®/NAREIT® Global Index return of 3.82%. The Funds overweight allocation to Japan hindered returns during the quarter. The Fund performed well within North America. From a sector perspective, the Fund benefited from strong results within the office segment.
The Funds sub-advisers performed similarly during the quarter, each underperforming the benchmark. In the case of CBRE, their overweight allocation to Japan represented a drag on results. EIIs stock selection among diversified REITs also was subtractive.
If you're a long-term investor looking to diversify your investments by pursuing the growth potential of global real estate, 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.
Investing in real estate equities involves special risks linked to the real estate market, including declines in the value of real estate, changes in the value of the underlying property, and defaults by borrowers. Foreign investing entails the risk that returns may be reduced by currency fluctuations.