Itx.MN.SMAFundTitle

Equity-Oriented   

Itx.MN.SMAFundDetail

Investment Objective

To achieve a high level of long-term capital growth comparable with that of the stock market.

Investment Team

The portfolio is managed by a team of research professionals who average years with the firm. Known as the Global Core Team, these portfolio managers are responsible for scoring bottom-up stock recommendations based on strategy fit and valuation measures as well as incorporating the firm’s market and economic overviews into oversight of total portfolio positioning. Research from bottom-up equity analysts and fixed income analysts contributes to managing the portfolio in line with overall investment objectives. The Global Core Team is led by our Director of Investments who oversees all research disciplines at Manning & Napier across asset classes.

Investment Process

Active Asset Allocation

Manning & Napier uses an active asset allocation process because we recognize that no single asset mix is likely to be appropriate in all market environments. Equity selection is the primary driver of the portfolio’s asset allocation and the Global Core Team determines day-to-day equity exposure. The level of fixed income allocation results from the bottom-up stock selections made by the Global Core Team. An active approach to asset allocation allows us the flexibility to take advantage of opportunities that arise in the marketplace, and adjust the portfolio to fundamental changes in the economic environment. We have more than 40 years of experience managing risk through this active approach.

Equity Investment Process

The same proprietary bottom-up driven equity investment process has been used to build diversified portfolios of individual securities for more than four decades. Manning & Napier’s equity analysts first search the global investment universe using both bottom-up (company-specific) and top-down (macro) research to reduce the initial universe to a workable list of potential portfolio candidates. Next, companies are screened using bottom-up analysis to generate a formal list of portfolio candidates based on three selection strategies - Strategic Profile, Hurdle Rate, and Bankable Deal. If a company is a strategy fit, strict pricing disciplines are used to establish buy and sell targets based on fair market value. After that, the security is submitted to a peer review process where a minimum of two analysts have a financial stake in each stock that is recommended for the portfolio. Once the two analysts decide to formally recommend the security, it is presented to the Global Core Team, which determines whether to accept the security recommendation, put it on the “firedrill” list, or reject it. Equity holdings are continuously monitored for events that may require adjustments.

Fixed Income Investment Process

Our active approach to fixed income investing is based on the Fixed Income Group’s consistent application of a multi-step process with an objectives-driven emphasis on actively managing risk. First an economic overview is established which is used to determine duration and yield curve positioning. Security-specific analysis is then conducted based on what sectors are deemed to be most attractive given current market conditions. Purchased securities are continuously monitored and additional purchases or sales are evaluated based on security selection criteria and relative value. The Fixed Income Group includes research professionals, of whom are analysts that average years with the Firm.


Composition

Equity Range

70% - 100% Equities

The portfolio will be fully or near fully invested in equities.


Annualized Performance 1
(as of 09/30/2016)

One Year (10/01/2015 - 09/30/2016) 13.97%
Five Year (10/01/2011 - 09/30/2016) 11.52%
Ten Year (10/01/2006 - 09/30/2016) 5.38%
US Stock Market Cycle (04/01/2000 - 09/30/2016) 6.59%
Inception (01/01/1993 - 09/30/2016) 9.83%


1

The Manning & Napier Equity-Oriented Composite is a weighted average of discretionary separately managed accounts, and may include proprietary mutual fund and collective investment trust fund accounts with an Equity-Oriented objective. Accounts in this composite must have a market value greater than $500,000 and tenure of at least one year under our management. Equity-Oriented is a blended investment objective that invests in equities, primarily U.S. with some non-U.S., and fixed income securities. The investment objective of accounts in this composite is to seek growth via participation in stocks with some latitude for asset allocation when stocks are clearly overvalued. Equity exposure for accounts in this composite typically ranges from 70% to 100% with situational adjustments within this range at our discretion. Net-of-fee returns are calculated based off of the effective fees of the accounts in the composite. They are after brokerage commissions, reinvested income, and advisory fees, but if applicable, before custodian costs and the fees of the investor’s Personal Financial Advisor. Also, accounts subject to solicitation fees may incur as much as 0.15% in additional expenses. Fees will vary with size and circumstances and these fee differentials would impact returns accordingly. Fees used for calculations are firmwide rates prior to 2001 and specific to this composite for 2001 onward. Past performance does not guarantee future results. Prior to 01/01/2009, proprietary mutual fund and collective investment trust fund accounts with an Equity-Oriented objective were excluded from the composite. This composite includes separately managed accounts that may have a portion of their assets invested in proprietary asset class mutual funds, which may be declined or may not be permitted through the selection of some custodial programs. All data are subject to revision.

Related Documents

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