The Multi-Manager International Equity Fund returned -11.75% versus the benchmark return of -12.45%. The Fund delivered positive stock selection in the U.K. Relative performance was also strong in the materials sector, and the Fund's underweight to European financials added relative value. Sub-advisers, Tradewinds and William Blair, were the best relative performers, as they both outperformed the benchmark by over 300 basis points (3.0%).

During the quarter, the markets displayed heightened investor caution. Following robust returns in 2009, the MSCI ACWI Ex-U.S. Index has declined 11.06% year-to-date. Markets have become far more discriminating, making a sound investment process ever more critical. Over the first six months of this year, the Fund outperformed its benchmark by over 180 basis points (1.80%), demonstrating the benefit of diversification during difficult markets.

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-U.S. Index.
• Select complementary managers from a broad universe of investment managers.
• Blend managers into a single fund in an effort to provide the best combination of risk and return.