A Redefined Approach to Value Investing

 

The video above was originally published in March 2019. Down market capture discussed represents the percent of market return captured by the investment manager’s return relative to the benchmark during negative periods. See below for the most recent performance.

We re-define “value portfolio” in this strategy by using a systematic, but flexible approach. This allows us to actively find areas of the market that are offering superior dividends and valuations, which has historically driven favorable risk-adjusted returns and meaningful downside risk management.

Investment Objective

To provide competitive returns consistent with the broad equity market while also providing a level of capital protection during market downturns.

Investment Strategy

This fund is designed to offer a diversified portfolio of dividend-paying U.S. equity securities. Using a systematic process with a focus on mid- to large-capitalization U.S. companies, securities are selected based on factors such as free cash flow generation and earnings power, minimum dividend yield, dividend sustainability, and financial health.

May be Appropriate for Investors

  • Seeking to add diversification to their retirement portfolio by investing in high-quality, dividend-yielding securities
  • Seeking exposure to U.S. companies with meaningful growth potential due to high free cash flow yields and earnings power

Daily Price

$13.40

Daily $ Change

-$0.02

Daily % Change

-0.15%

as of 11/13/2019

CUSIP

302028774

Inception Date

06/06/2017

This fund is only available for use within certain qualified employee benefit plans.

Important Documents

Annual Report
Applications & Forms

Performance

As of 10/31/2019

YTD

17.07%

1 Year

11.27%

3 Year

13.83%

5 Year

10.41%

10 Year

---

Inception
(10/01/2011)

14.41%

Market Cycle

---

Performance through the inception date of the Disciplined Value CIT Class U units is not the past performance of the Disciplined Value CIT Fund and is based on historical performance data for the Manning & Napier Disciplined Value – U.S. Composite, which is a weighted average of discretionary separately managed accounts, and may include proprietary mutual fund accounts, that are managed by Manning & Napier Advisors, LLC with a Disciplined Value – U.S. objective. Returns are net of the Class U expenses. Performance data quoted represents past performance and does not guarantee future results. Performance for periods greater than one year is annualized. Your investment may fluctuate in value and there is a potential for loss as well as profit.

Expense Ratio

Gross 0.35%
Net 0.25%*

*Reflects the Trustee's contractual agreement to limit fees and voluntary agreement to reimburse certain expenses.

Top Ten Investments

As of 10/31/2019

JP MORGAN CHASE & CO 3.74%
WAL MART STORES 3.71%
JOHNSON & JOHNSON 3.34%
HOME DEPOT INC 3.29%
INTEL CORP 3.17%
MERCK & CO INC 3.05%
WELLS FARGO COMPANY 2.99%
PFIZER INC 2.85%
CISCO SYSTEMS INC 2.51%
BANK OF AMERICA CORP 2.40%

This investment list is unaudited and excludes cash.

Sector Allocation

As of 10/31/2019

Communication Services 0.26%
Consumer Discretionary 5.54%
Consumer Staples 13.14%
Energy 5.95%
Financials 17.32%
Health Care 19.59%
Industrials 21.50%
Information Technology 14.12%
Materials 2.58%

The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (S&P) and is licensed for use by Manning & Napier when referencing GICS sectors. Nether MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification nor shall any such party have any liability therefrom.

October Fund Holdings

As of 10/31/2019

CUSIP Security Description Country Ticker Shares/Par Market Value (USD)
00287Y109 ABBVIE INC US ABBV 7,959 $633,138.45
020002101 ALLSTATE CORPORATION US ALL 1,872 $199,218.24
031162100 AMGEN INC US AMGN 3,332 $710,549.00
038222105 APPLIED MATERIALS INC US AMAT 5,136 $278,679.36
039483102 ARCHER-DANIELS-MIDLAND CO US ADM 3,617 $152,058.68
054937107 BB&T CORP US BBT 4,097 $217,345.85
05722G100 BAKER HUGHES CO US BKR 6,478 $138,629.20
060505104 BANK OF AMERICA CORP US BAC 26,345 $823,808.15
086516101 BEST BUY INC US BBY 2,595 $186,398.85
097023105 BOEING CO US BA 2,410 $819,183.10
110122108 BRISTOL MYERS SQUIBB CO US BMY 8,994 $515,985.78
11135F101 BROADCOM INC US AVGO 1,739 $509,266.15
12541W209 C.H. ROBINSON WORLDWIDE INC US CHRW 1,664 $125,864.96
126650100 CVS HEALTH CORP US CVS 7,263 $482,190.57
149123101 CATERPILLAR INC US CAT 3,019 $416,018.20
166764100 CHEVRON CORP US CVX 6,016 $698,698.24
17275R102 CISCO SYSTEMS INC US CSCO 18,124 $861,071.24
172967424 CITIGROUP INC US C 7,582 $544,842.52
194162103 COLGATE-PALMOLIVE CO US CL 5,566 $381,827.60
205887102 CONAGRA BRAND INC. US CAG 4,038 $109,227.90
231021106 CUMMINS INC US CMI 1,360 $234,572.80
260557103 DOW INC US DOW 3,941 $198,981.09
277432100 EASTMAN CHEM CO US EMN 1,619 $123,108.76
291011104 EMERSON ELEC CO US EMR 4,563 $320,094.45
311900104 FASTENAL CO US FAST 5,275 $189,583.50
316773100 FIFTH THIRD BANCORP US FITB 6,244 $181,575.52
364760108 GAP INC US GPS 4,415 $71,787.90
369550108 GENERAL DYNAMICS CORP US GD 1,410 $249,288.00
370334104 GENERAL MLS INC US GIS 4,889 $248,654.54
372460105 GENUINE PARTS CO US GPC 1,662 $170,487.96
375558103 GILEAD SCIENCES INC US GILD 7,883 $502,225.93
406216101 HALLIBURTON CO US HAL 5,834 $112,304.50
416515104 HARTFORD FINL SVCS US HIG 2,517 $143,670.36
427866108 HERSHEY CO/THE US HSY 1,694 $248,797.78
437076102 HOME DEPOT INC US HD 4,817 $1,129,971.86
438516106 HONEYWELL INTERNATIONAL INC US HON 3,607 $623,037.11
452308109 ILLINOIS TOOL WKS INC US ITW 2,071 $349,129.18
458140100 INTEL CORP US INTC 19,243 $1,087,806.79
459200101 INTERNATIONAL BUSINESS MACH CORP US IBM 4,718 $630,938.14
460146103 INTERNATIONAL PAPER CO US IP 2,901 $126,715.68
46625H100 JP MORGAN CHASE & CO US JPM 10,255 $1,281,054.60
478160104 JOHNSON & JOHNSON US JNJ 8,682 $1,146,371.28
482480100 KLA-TENCOR CORPORATION US KLAC 1,498 $253,221.92
487836108 KELLOGG CO US K 2,782 $176,740.46
493267108 KEYCORP US KEY 8,423 $151,361.31
494368103 KIMBERLY CLARK CORP US KMB 2,473 $328,612.24
500255104 KOHLS CORP US KSS 1,873 $96,009.98
501044101 KROGER CO US KR 5,196 $128,029.44
512807108 LAM RESEARCH CORP US LRCX 876 $237,431.04
539830109 LOCKHEED MARTIN CORP US LMT 1,502 $565,773.36
56585A102 MARATHON PETROLEUM CORP US MPC 5,071 $324,290.45
57772K101 MAXIM INTEGRATED PRODUCTS US MXIM 2,493 $146,239.38
58933Y105 MERCK & CO INC US MRK 12,068 $1,045,812.88
60871R209 MOLSON COORS BREWING CO -B US TAP 2,029 $106,968.88
609207105 MONDELEZ INTERNATIONAL INC US MDLZ 8,102 $424,949.90
64110D104 NETAPP INC US NTAP 1,785 $99,745.80
670346105 NUCOR CORP US NUE 3,160 $170,166.00
674599105 OCCIDENTAL PETROLEUM CORP US OXY 4,312 $174,636.00
717081103 PFIZER INC US PFE 25,489 $978,012.93
718546104 PHILLIPS 66 US PSX 2,465 $287,961.30
74834L100 QUEST DIAGNOSTICS INC US DGX 1,268 $128,385.00
7591EP100 REGIONS FINANCIAL CORP. US RF 7,490 $120,589.00
773903109 ROCKWELL AUTOMATION INC US ROK 832 $143,095.68
832696405 JM SMUCKER CO/THE-NEW COM WI US SJM 1,197 $126,498.96
857949BL0 SS INT BEARING FD .022% 01/02/15 US 479,839.64 $479,839.64
867914103 SUNTRUST BANKS INC US STI 3,186 $217,731.24
871829107 SYSCO CORP US SYY 3,768 $300,950.16
882508104 TEXAS INSTRUMENTS INC US TXN 5,057 $596,675.43
88579Y101 3M CO US MMM 3,406 $561,955.94
89417E109 TRAVELLERS COS INC US TRV 1,482 $194,230.92
902494103 TYSON FOODS INC -CL A US TSN 2,193 $181,558.47
902973304 U.S. BANCORP US USB 9,178 $523,329.56
907818108 UNION PAC CORP US UNP 3,668 $606,907.28
911312106 UNITED PARCEL SERVICE US UPS 5,482 $631,361.94
913017109 UNITED TECHNOLOGIES CORP US UTX 4,375 $628,162.50
918204108 VF CORP US VFC 2,995 $246,458.55
91913Y100 VALERO ENERGY US VLO 3,119 $302,480.62
92553P201 VIACOM INC CL B US VIAB 4,204 $90,638.24
931142103 WAL MART STORES US WMT 10,859 $1,273,326.34
931427108 WALGREENS BOOTS ALLIANCE INC US WBA 5,812 $318,381.36
94106L109 WASTE MANAGEMENT INC US WM 2,928 $328,550.88
949746101 WELLS FARGO COMPANY US WFC 19,875 $1,026,146.25
958102105 WESTERN DIGITAL CORP US WDC 2,770 $143,070.50
G29183103 EATON CORP PLC US ETN 3,452 $300,703.72
G51502105 JOHNSON CONTROLS INTERNATIONAL US JCI 6,435 $278,828.55
G5960L103 MEDTRONIC INC IE MDT 5,278 $574,774.20
H1467J104 CHUBB LTD CH CB 2,071 $315,661.82
N53745100 LYONDELLBASELL INDU-CL A US LYB 2,976 $266,947.20

Investments will change over time.

A Word About Risk

All investments involve risks, including possible loss of principal. As with any stock fund, the value of your investment will fluctuate in response to stock market movements. Investing in the Fund will also involve a number of other risks, including issuer-specific risk and mid-cap risk. The Fund invests primarily in dividend-paying equity securities, with a focus on mid- to large- cap companies. There is no assurance or guarantee that such companies will declare, continue to pay, or increase dividends. Stocks of mid-cap companies tend to be more volatile than those of large-cap companies, as midcap companies tend to be more susceptible to adverse business or economic events than larger, more established companies. In addition, because the Advisor manages the Fund using a disciplined screening process, the Fund is subject to the additional risk that the investment approach may not be successful. Further, the Advisor does not intend to make frequent changes to the Fund’s portfolio in response to market movements.

About The Fund Manager

Manning & Napier Advisors, LLC (Manning & Napier) provides investment advisory services to Exeter Trust Company, Trustee of the Manning & Napier Collective Investment Trust Funds. Manning & Napier is headquartered in Rochester, NY and has more than 45 years of experience managing investment objectives. The Firm’s active management approach focuses on participating in rising markets and, as important, helping to reduce the risk of large losses in sustained bear market periods. A team of investment analysts and professionals make all investment decisions in an effort to provide investors with strong risk-adjusted returns.

A Redefined Approach to Value Investing

 

The video above was originally published in March 2019. Down market capture discussed represents the percent of market return captured by the investment manager’s return relative to the benchmark during negative periods. See below for the most recent performance.

We re-define “value portfolio” in this strategy by using a systematic, but flexible approach. This allows us to actively find areas of the market that are offering superior dividends and valuations, which has historically driven favorable risk-adjusted returns and meaningful downside risk management.

Daily Price

$13.40

Daily $ Change

-$0.02

Daily % Change

-0.15%

as of 11/13/2019

CUSIP

302028774

Inception Date

06/06/2017

This fund is only available for use within certain qualified employee benefit plans.

Important Documents

Annual Report
Fact Sheet
Applications & Forms

Investment Objective

To provide competitive returns consistent with the broad equity market while also providing a level of capital protection during market downturns.

Investment Strategy

This fund is designed to offer a diversified portfolio of dividend-paying U.S. equity securities. Using a systematic process with a focus on mid- to large-capitalization U.S. companies, securities are selected based on factors such as free cash flow generation and earnings power, minimum dividend yield, dividend sustainability, and financial health.

May be Appropriate for Investors

  • Seeking to add diversification to their retirement portfolio by investing in high-quality, dividend-yielding securities
  • Seeking exposure to U.S. companies with meaningful growth potential due to high free cash flow yields and earnings power

Performance

As of 10/31/2019

YTD

17.07%

1 Year

11.27%

3 Year

13.83%

5 Year

10.41%

10 Year

---

Inception
(10/01/2011)

14.41%

Market Cycle

---

Performance through the inception date of the Disciplined Value CIT Class U units is not the past performance of the Disciplined Value CIT Fund and is based on historical performance data for the Manning & Napier Disciplined Value – U.S. Composite, which is a weighted average of discretionary separately managed accounts, and may include proprietary mutual fund accounts, that are managed by Manning & Napier Advisors, LLC with a Disciplined Value – U.S. objective. Returns are net of the Class U expenses. Performance data quoted represents past performance and does not guarantee future results. Performance for periods greater than one year is annualized. Your investment may fluctuate in value and there is a potential for loss as well as profit.

Expense Ratio

Gross 0.35%
Net 0.25%*

*Reflects the Trustee's contractual agreement to limit fees and voluntary agreement to reimburse certain expenses.

Top Ten Investments

As of 10/31/2019

JP MORGAN CHASE & CO 3.74%
WAL MART STORES 3.71%
JOHNSON & JOHNSON 3.34%
HOME DEPOT INC 3.29%
INTEL CORP 3.17%
MERCK & CO INC 3.05%
WELLS FARGO COMPANY 2.99%
PFIZER INC 2.85%
CISCO SYSTEMS INC 2.51%
BANK OF AMERICA CORP 2.40%

This investment list is unaudited and excludes cash.

Sector Allocation

As of 10/31/2019

Communication Services
0.26%
Consumer Discretionary
5.54%
Consumer Staples
13.14%
Energy
5.95%
Financials
17.32%
Health Care
19.59%
Industrials
21.50%
Information Technology
14.12%
Materials
2.58%

The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (S&P) and is licensed for use by Manning & Napier when referencing GICS sectors. Nether MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification nor shall any such party have any liability therefrom.

October Fund Holdings

As of 10/31/2019

CUSIP Security Description Country Ticker Shares/Par Market Value (USD)
00287Y109 ABBVIE INC US ABBV 7,959 $633,138.45
020002101 ALLSTATE CORPORATION US ALL 1,872 $199,218.24
031162100 AMGEN INC US AMGN 3,332 $710,549.00
038222105 APPLIED MATERIALS INC US AMAT 5,136 $278,679.36
039483102 ARCHER-DANIELS-MIDLAND CO US ADM 3,617 $152,058.68
054937107 BB&T CORP US BBT 4,097 $217,345.85
05722G100 BAKER HUGHES CO US BKR 6,478 $138,629.20
060505104 BANK OF AMERICA CORP US BAC 26,345 $823,808.15
086516101 BEST BUY INC US BBY 2,595 $186,398.85
097023105 BOEING CO US BA 2,410 $819,183.10
110122108 BRISTOL MYERS SQUIBB CO US BMY 8,994 $515,985.78
11135F101 BROADCOM INC US AVGO 1,739 $509,266.15
12541W209 C.H. ROBINSON WORLDWIDE INC US CHRW 1,664 $125,864.96
126650100 CVS HEALTH CORP US CVS 7,263 $482,190.57
149123101 CATERPILLAR INC US CAT 3,019 $416,018.20
166764100 CHEVRON CORP US CVX 6,016 $698,698.24
17275R102 CISCO SYSTEMS INC US CSCO 18,124 $861,071.24
172967424 CITIGROUP INC US C 7,582 $544,842.52
194162103 COLGATE-PALMOLIVE CO US CL 5,566 $381,827.60
205887102 CONAGRA BRAND INC. US CAG 4,038 $109,227.90
231021106 CUMMINS INC US CMI 1,360 $234,572.80
260557103 DOW INC US DOW 3,941 $198,981.09
277432100 EASTMAN CHEM CO US EMN 1,619 $123,108.76
291011104 EMERSON ELEC CO US EMR 4,563 $320,094.45
311900104 FASTENAL CO US FAST 5,275 $189,583.50
316773100 FIFTH THIRD BANCORP US FITB 6,244 $181,575.52
364760108 GAP INC US GPS 4,415 $71,787.90
369550108 GENERAL DYNAMICS CORP US GD 1,410 $249,288.00
370334104 GENERAL MLS INC US GIS 4,889 $248,654.54
372460105 GENUINE PARTS CO US GPC 1,662 $170,487.96
375558103 GILEAD SCIENCES INC US GILD 7,883 $502,225.93
406216101 HALLIBURTON CO US HAL 5,834 $112,304.50
416515104 HARTFORD FINL SVCS US HIG 2,517 $143,670.36
427866108 HERSHEY CO/THE US HSY 1,694 $248,797.78
437076102 HOME DEPOT INC US HD 4,817 $1,129,971.86
438516106 HONEYWELL INTERNATIONAL INC US HON 3,607 $623,037.11
452308109 ILLINOIS TOOL WKS INC US ITW 2,071 $349,129.18
458140100 INTEL CORP US INTC 19,243 $1,087,806.79
459200101 INTERNATIONAL BUSINESS MACH CORP US IBM 4,718 $630,938.14
460146103 INTERNATIONAL PAPER CO US IP 2,901 $126,715.68
46625H100 JP MORGAN CHASE & CO US JPM 10,255 $1,281,054.60
478160104 JOHNSON & JOHNSON US JNJ 8,682 $1,146,371.28
482480100 KLA-TENCOR CORPORATION US KLAC 1,498 $253,221.92
487836108 KELLOGG CO US K 2,782 $176,740.46
493267108 KEYCORP US KEY 8,423 $151,361.31
494368103 KIMBERLY CLARK CORP US KMB 2,473 $328,612.24
500255104 KOHLS CORP US KSS 1,873 $96,009.98
501044101 KROGER CO US KR 5,196 $128,029.44
512807108 LAM RESEARCH CORP US LRCX 876 $237,431.04
539830109 LOCKHEED MARTIN CORP US LMT 1,502 $565,773.36
56585A102 MARATHON PETROLEUM CORP US MPC 5,071 $324,290.45
57772K101 MAXIM INTEGRATED PRODUCTS US MXIM 2,493 $146,239.38
58933Y105 MERCK & CO INC US MRK 12,068 $1,045,812.88
60871R209 MOLSON COORS BREWING CO -B US TAP 2,029 $106,968.88
609207105 MONDELEZ INTERNATIONAL INC US MDLZ 8,102 $424,949.90
64110D104 NETAPP INC US NTAP 1,785 $99,745.80
670346105 NUCOR CORP US NUE 3,160 $170,166.00
674599105 OCCIDENTAL PETROLEUM CORP US OXY 4,312 $174,636.00
717081103 PFIZER INC US PFE 25,489 $978,012.93
718546104 PHILLIPS 66 US PSX 2,465 $287,961.30
74834L100 QUEST DIAGNOSTICS INC US DGX 1,268 $128,385.00
7591EP100 REGIONS FINANCIAL CORP. US RF 7,490 $120,589.00
773903109 ROCKWELL AUTOMATION INC US ROK 832 $143,095.68
832696405 JM SMUCKER CO/THE-NEW COM WI US SJM 1,197 $126,498.96
857949BL0 SS INT BEARING FD .022% 01/02/15 US 479,839.64 $479,839.64
867914103 SUNTRUST BANKS INC US STI 3,186 $217,731.24
871829107 SYSCO CORP US SYY 3,768 $300,950.16
882508104 TEXAS INSTRUMENTS INC US TXN 5,057 $596,675.43
88579Y101 3M CO US MMM 3,406 $561,955.94
89417E109 TRAVELLERS COS INC US TRV 1,482 $194,230.92
902494103 TYSON FOODS INC -CL A US TSN 2,193 $181,558.47
902973304 U.S. BANCORP US USB 9,178 $523,329.56
907818108 UNION PAC CORP US UNP 3,668 $606,907.28
911312106 UNITED PARCEL SERVICE US UPS 5,482 $631,361.94
913017109 UNITED TECHNOLOGIES CORP US UTX 4,375 $628,162.50
918204108 VF CORP US VFC 2,995 $246,458.55
91913Y100 VALERO ENERGY US VLO 3,119 $302,480.62
92553P201 VIACOM INC CL B US VIAB 4,204 $90,638.24
931142103 WAL MART STORES US WMT 10,859 $1,273,326.34
931427108 WALGREENS BOOTS ALLIANCE INC US WBA 5,812 $318,381.36
94106L109 WASTE MANAGEMENT INC US WM 2,928 $328,550.88
949746101 WELLS FARGO COMPANY US WFC 19,875 $1,026,146.25
958102105 WESTERN DIGITAL CORP US WDC 2,770 $143,070.50
G29183103 EATON CORP PLC US ETN 3,452 $300,703.72
G51502105 JOHNSON CONTROLS INTERNATIONAL US JCI 6,435 $278,828.55
G5960L103 MEDTRONIC INC IE MDT 5,278 $574,774.20
H1467J104 CHUBB LTD CH CB 2,071 $315,661.82
N53745100 LYONDELLBASELL INDU-CL A US LYB 2,976 $266,947.20

Investments will change over time.

A Word About Risk

All investments involve risks, including possible loss of principal. As with any stock fund, the value of your investment will fluctuate in response to stock market movements. Investing in the Fund will also involve a number of other risks, including issuer-specific risk and mid-cap risk. The Fund invests primarily in dividend-paying equity securities, with a focus on mid- to large- cap companies. There is no assurance or guarantee that such companies will declare, continue to pay, or increase dividends. Stocks of mid-cap companies tend to be more volatile than those of large-cap companies, as midcap companies tend to be more susceptible to adverse business or economic events than larger, more established companies. In addition, because the Advisor manages the Fund using a disciplined screening process, the Fund is subject to the additional risk that the investment approach may not be successful. Further, the Advisor does not intend to make frequent changes to the Fund’s portfolio in response to market movements.

About The Fund Manager

Manning & Napier Advisors, LLC (Manning & Napier) provides investment advisory services to Exeter Trust Company, Trustee of the Manning & Napier Collective Investment Trust Funds. Manning & Napier is headquartered in Rochester, NY and has more than 45 years of experience managing investment objectives. The Firm’s active management approach focuses on participating in rising markets and, as important, helping to reduce the risk of large losses in sustained bear market periods. A team of investment analysts and professionals make all investment decisions in an effort to provide investors with strong risk-adjusted returns.


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