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Emerging Markets Equity Index

as of 9/30/17

Fund Commentary

In the third quarter of 2017, the MSCI Emerging Markets Index returned 7.89%. Emerging markets outperformed developed markets as represented by the MSCI World Index, which returned 4.97%. The Fund returned 8.04% for the period.

The top-performing sectors during the quarter were real estate and energy, returning 20.80% and 13.36%, respectively. Industrials and consumer staples were the bottom-performing sectors with returns of 1.70% and 2.74%, respectively. The top-performing countries were Brazil and Russia, returning 23.12% and 18.54%. Pakistan and Greece were the bottom-performing countries, with returns of -16.27% and -12.10%.

Emerging markets continued to rally based on an upswing in global growth, and continued to be supported by developments in the United States. The U.S. dollar demonstrated weakness as it has for all of 2017, providing a tailwind for emerging markets. China, the largest of the emerging market economies, posted double-digit returns as concerns regarding North Korea were largely ignored and investors focused on growth. Brazil and Russia posted the highest returns for the quarter as the energy sector rebounded from its position as one of the bottom-performing sectors for the second quarter.

Not FDIC insured | May lose value | No bank guarantee

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