The Multi-Manager Small Cap Fund trailed the benchmark during the quarter, with a return of 8.33% compared with the benchmark return of 8.72%. During the period, stock selection in the financial sector detracted from returns. The Fund also underperformed within the energy segment. Areas of strength included healthcare and consumer stocks. For the full year, the Fund returned 39.59% compared with the benchmark return of 38.82%.
Sub-adviser performance was within expectations for the quarter. The deeper-value portfolio of Hotchkis and Wiley was in favor during the quarter and generated significant outperformance. For the full year, sub-adviser performance was strong, with each sub-adviser adding value relative to their respective benchmarks.
If you're a long-term investor looking to diversify your investments by pursuing the growth potential of small-company stocks, then this Fund may be right for you. It is intended for investors who are aware that small-company stocks are generally riskier than large-company stocks due to greater volatility and less liquidity.
- Invest in small-cap stocks through a variety of external small-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.