The Multi-Manager Global Real Estate Fund returned -8.75% during the quarter, compared with the benchmark return of -7.99%. The Fund underperformed within Continental Europe, but exceeded benchmark returns in the emerging markets and North America. Sub-adviser Cohen & Steers posted the weakest performance among the Fund's sub-advisers during the quarter, declining more than 9.7%. Security selection drove Cohen & Steers' underperformance, particularly within North America. European Investors had the best relative return, benefiting from favorable relative results in North America and Asia.

The Fund's positioning remains almost unchanged since the end of the first quarter, with continued overweights to North America and the UK. Exposure to the Pacific region excluding Japan has increased, and the Fund is presently overweight there. Emerging markets exposure is low at just over 1% of portfolio assets. The Fund's exposures are well diversified by property type, with an overweight to the office sector.

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.

• Invest at least 80% of net assets in global real estate equities, primarily in real estate investment trusts (REITs).
• 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.