Multi-Manager Large Cap
as of December 31, 2013
Fund Commentary
During the fourth quarter of 2013, an array of strong economic releases led to the Federal Reserve's tapering decision, announced on December 18. Tapering commences in January 2014 and amounts to a $10 billion reduction in Fed asset purchases, equally split between Treasuries and mortgage-backed securities. The U.S. stock market rallied following the announcement, based on renewed hope for a sustainable economic recovery. The strong quarter closed an exceptional year for the benchmark, with the Russell 1000® Index gaining 33.11% for 2013.

The Multi-Manager Large Cap Fund finished the quarter behind the Index, returning 9.64% compared with the benchmark return of 10.23%. The Fund benefited from strong relative results in the financials and consumer staples sectors. Performance within energy and technology issues represented a drag on returns. The Fund's overall positioning has changed very little, with a continued overweight to consumer stocks, health care and technology. For the full year, the Fund returned 32.04% versus the Russell 1000® Index return of 33.11%.

During the quarter, we made one sub-adviser change within the Fund. NWQ Investment Management was replaced by Huber Capital Management, LLC. Huber Capital manages a concentrated, traditional value portfolio that we expect to provide strong upside in value-driven markets. They also complement the lower-risk portfolio of Delaware Investments. Huber Capital began managing assets in the Fund in early October. Since their introduction, Huber has performed ahead of the benchmark.
Investor Profile

If you're a long-term investor looking to diversify your investments by pursuing the growth potential of large-company stocks, then this Fund may be right for you.

  • Invest in large-cap stocks through a variety of external large-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.
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Not FDIC insured | May lose value | No bank guarantee

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