The Multi-Manager Global Real Estate Fund outperformed during the quarter, with a return of 0.21% compared with the benchmark return of -1.25%. Stock selection was strong across the Fund, with particular strength in the Americas. The Fund also benefited from its underweight allocation to emerging markets.
For the full year, the Fund finished ahead of the benchmark, returning 1.87% compared with the FTSE® EPRA®/NAREIT® Global Index return of 1.57%. Both of the Fund's sub-advisers outperformed for the quarter and the year.
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.