Multi-Manager Global Listed Infrastructure
as of June 30, 2014
Fund Commentary
Global equity markets continued to advance in the second quarter, with the MSCI ACWI® Index returning 5.04%. The listed infrastructure segment outperformed the broader global equity market, with the S&P Global Infrastructure Index gaining 8.42% during the three-month period. Energy pipelines performed well on continued energy infrastructure build-out in North America and investor demand for yield. Energy storage declined during the quarter due to a challenging operating environment in core European markets. Regionally, North American utilities were strong due to robust first-quarter results as well as merger and acquisition activity. Year-to-date, the S&P Global Infrastructure Index returned 16.03%.

The Multi-Manager Global Listed Infrastructure Fund finished the quarter slightly behind the benchmark at 8.36%. Exposure to railroads and construction companies represented a drag on returns during the quarter. From a regional perspective, stock selection in Continental Europe was the primary cause of the underperformance. The portfolio performed well within North America and Asia.

Between the two sub-advisers, Brookfield was the primary contributor to results. Their significant overweight to oil & gas transmission helped performance. However, the Lazard portfolio was underexposed to the strongest areas of the market during the period. Despite positive stock selection, Lazard’s positions in railroads, cable & satellite, and construction companies detracted from results.
Investor Profile

If you're a long-term investor looking to diversify your investments by pursuing the income and growth potential of globally listed infrastructure securities, 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.

Philosophy
  • Invest at least 80% of net assets in securities of infrastructure companies listed on a domestic or foreign exchange, normally investing at least 40% (and up to 100%) in infrastructure companies tied to foreign countries, including emerging and frontier markets.
  • 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/return.
 
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Not FDIC insured | May lose value | No bank guarantee

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** commenced investment operations on September 18, 2012.