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

$12.34

Daily $ Change

$0.03

Daily % Change

0.24%

as of 09/22/2020

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 08/31/2020

YTD

-7.75%

1 Year

3.16%

3 Year

7.59%

5 Year

10.57%

10 Year

---

Inception
(10/01/2011)

12.70%

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 0.28%
Net 0.25%*

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

Top Ten Investments

As of 08/31/2020

HOME DEPOT INC 3.80%
JOHNSON & JOHNSON 3.79%
WAL MART STORES 3.47%
JP MORGAN CHASE & CO 3.09%
MERCK & CO INC 2.75%
PFIZER INC 2.61%
INTEL CORP 2.58%
CISCO SYSTEMS INC 2.38%
BANK OF AMERICA CORP 2.37%
ABBVIE INC 2.11%

This investment list is unaudited and excludes cash.

Sector Allocation

As of 08/31/2020

Communication Services 1.94%
Consumer Discretionary 6.08%
Consumer Staples 13.77%
Energy 2.77%
Financials 14.82%
Health Care 18.50%
Industrials 21.52%
Information Technology 17.25%
Materials 3.35%

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.

August Fund Holdings

As of 08/31/2020

CUSIP Security Description Country Ticker Shares/Par Market Value (USD)
00287Y109 ABBVIE INC US ABBV 15,563 $1,490,468.51
020002101 ALLSTATE CORPORATION US ALL 4,794 $445,842.00
032654105 ANALOG DEVICES INC US ADI 4,214 $492,532.32
039483102 ARCHER-DANIELS-MIDLAND CO US ADM 9,312 $416,805.12
053015103 AUTOMATIC DATA PROCESSING US ADP 4,056 $564,149.04
05722G100 BAKER HUGHES CO US BKR 20,172 $288,056.16
060505104 BANK OF AMERICA CORP US BAC 64,914 $1,670,886.36
086516101 BEST BUY INC US BBY 4,622 $512,626.02
110122108 BRISTOL MYERS SQUIBB CO US BMY 22,112 $1,375,366.40
12541W209 C.H. ROBINSON WORLDWIDE INC US CHRW 3,434 $337,562.20
149123101 CATERPILLAR INC US CAT 7,083 $1,007,981.73
172062101 CINCINNATI FINANCIAL CORP US CINF 2,668 $211,865.88
17275R102 CISCO SYSTEMS INC US CSCO 39,878 $1,683,649.16
172967424 CITIGROUP INC US C 20,248 $1,035,077.76
194162103 COLGATE-PALMOLIVE CO US CL 11,583 $918,068.58
20030N101 COMCAST CORP-CL A US CMCSA 30,516 $1,367,421.96
205887102 CONAGRA BRAND INC. US CAG 10,343 $396,757.48
20825C104 CONOCOPHILLIPS US COP 12,974 $491,584.86
21036P108 CONSTELLATION BRANDS INC-A US STZ 2,374 $437,955.52
231021106 CUMMINS INC US CMI 2,472 $512,322.00
260003108 DOVER CORP US DOV 2,112 $231,982.08
26875P101 EOG RESOURCES INC US EOG 8,050 $364,987.00
291011104 EMERSON ELEC CO US EMR 10,188 $707,760.36
311900104 FASTENAL CO US FAST 11,073 $541,026.78
316773100 FIFTH THIRD BANCORP US FITB 12,558 $259,448.28
369550108 GENERAL DYNAMICS CORP US GD 3,969 $592,770.15
370334104 GENERAL MLS INC US GIS 9,963 $637,133.85
372460105 GENUINE PARTS CO US GPC 3,492 $329,784.48
375558103 GILEAD SCIENCES INC US GILD 14,674 $979,489.50
384802104 WW GRAINGER INC US GWW 844 $308,422.92
416515104 HARTFORD FINL SVCS US HIG 6,994 $282,907.30
427866108 HERSHEY CO/THE US HSY 3,663 $544,468.32
437076102 HOME DEPOT INC US HD 9,403 $2,680,231.12
438516106 HONEYWELL INTERNATIONAL INC US HON 8,040 $1,331,022.00
440452100 HORMEL FOODS CORP US HRL 7,111 $362,518.78
452308109 ILLINOIS TOOL WKS INC US ITW 4,402 $869,615.10
458140100 INTEL CORP US INTC 35,759 $1,821,921.05
459200101 INTERNATIONAL BUSINESS MACH CORP US IBM 10,025 $1,236,182.75
459506101 INTERNATIONAL FLVRS & FRAGRANCES US IFF 1,783 $220,717.57
46625H100 JP MORGAN CHASE & CO US JPM 21,788 $2,182,939.72
478160104 JOHNSON & JOHNSON US JNJ 17,443 $2,675,930.63
482480100 KLA-TENCOR CORPORATION US KLAC 2,758 $565,776.12
494368103 KIMBERLY CLARK CORP US KMB 5,018 $791,639.68
501044101 KROGER CO US KR 14,558 $519,429.44
532457108 ELI LILLY & CO US LLY 7,193 $1,067,369.27
539830109 LOCKHEED MARTIN CORP US LMT 3,042 $1,187,170.92
56585A102 MARATHON PETROLEUM CORP US MPC 12,212 $433,037.52
58933Y105 MERCK & CO INC US MRK 22,749 $1,939,807.23
609207105 MONDELEZ INTERNATIONAL INC US MDLZ 18,471 $1,079,075.82
64110D104 NETAPP INC US NTAP 5,037 $238,703.43
655844108 NORFOLK SOUTHN CORP US NSC 2,559 $543,864.27
670346105 NUCOR CORP US NUE 7,184 $326,584.64
68389X105 ORACLE CORP US ORCL 21,274 $1,217,298.28
693475105 PNC FINANCIAL SERVICES GROUP US PNC 4,272 $475,046.40
693506107 PPG INDUSTRIES INC US PPG 3,227 $388,530.80
701094104 PARKER HANNIFIN CORP US PH 1,947 $401,101.47
717081103 PFIZER INC US PFE 48,844 $1,845,814.76
747525103 QUALCOMM INC US QCOM 8,414 $1,002,107.40
74834L100 QUEST DIAGNOSTICS INC US DGX 2,811 $312,695.64
75513E101 RAYTHEON TECHNOLOGIES CORP US RTX 15,330 $935,130.00
7591EP100 REGIONS FINANCIAL CORP. US RF 18,615 $215,189.40
773903109 ROCKWELL AUTOMATION INC US ROK 2,037 $469,589.61
83088M102 SKYWORKS SOLUTIONS INC US SWKS 2,489 $360,531.65
832696405 JM SMUCKER CO/THE-NEW COM WI US SJM 2,685 $322,683.30
854502101 STANLEY WORKS/THE US SWK 2,320 $374,216.00
857949BL0 SS INT BEARING FD .022% 01/02/15 US 690,369.75 $690,369.75
871829107 SYSCO CORP US SYY 7,698 $462,957.72
882508104 TEXAS INSTRUMENTS INC US TXN 10,113 $1,437,562.95
88579Y101 3M CO US MMM 7,194 $1,172,765.88
89417E109 TRAVELLERS COS INC US TRV 3,873 $449,422.92
89832Q109 TRUIST FINANCIAL CORP US TFC 18,171 $705,216.51
902494103 TYSON FOODS INC -CL A US TSN 6,045 $379,626.00
902973304 U.S. BANCORP US USB 20,608 $750,131.20
907818108 UNION PAC CORP US UNP 7,124 $1,370,942.56
918204108 VF CORP US VFC 7,002 $460,381.50
91913Y100 VALERO ENERGY US VLO 7,225 $379,962.75
931142103 WAL MART STORES US WMT 17,664 $2,452,646.40
94106L109 WASTE MANAGEMENT INC US WM 6,576 $749,664.00
949746101 WELLS FARGO COMPANY US WFC 44,019 $1,063,058.85
983919101 XILINX INC US XLNX 3,492 $363,726.72
G1151C101 ACCENTURE PLC - CL A IE ACN 4,978 $1,194,371.54
G29183103 EATON CORP PLC US ETN 6,676 $681,619.60
G51502105 JOHNSON CONTROLS INTERNATIONAL US JCI 12,937 $526,924.01
G5494J103 LINDE PLC GB LIN 3,895 $972,737.30
G5960L103 MEDTRONIC INC IE MDT 12,783 $1,373,789.01
G8994E103 TRANE TECHNOLOGIES IE TT 2,879 $340,844.81
H1467J104 CHUBB LTD CH CB 5,725 $715,625.00
H2906T109 GARMIN LTD CH GRMN 3,012 $312,073.32
N53745100 LYONDELLBASELL INDU-CL A US LYB 6,963 $455,937.24

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

$12.34

Daily $ Change

$0.03

Daily % Change

0.24%

as of 09/22/2020

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 08/31/2020

YTD

-7.75%

1 Year

3.16%

3 Year

7.59%

5 Year

10.57%

10 Year

---

Inception
(10/01/2011)

12.70%

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 0.28%
Net 0.25%*

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

Top Ten Investments

As of 08/31/2020

HOME DEPOT INC 3.80%
JOHNSON & JOHNSON 3.79%
WAL MART STORES 3.47%
JP MORGAN CHASE & CO 3.09%
MERCK & CO INC 2.75%
PFIZER INC 2.61%
INTEL CORP 2.58%
CISCO SYSTEMS INC 2.38%
BANK OF AMERICA CORP 2.37%
ABBVIE INC 2.11%

This investment list is unaudited and excludes cash.

Sector Allocation

As of 08/31/2020

Communication Services
1.94%
Consumer Discretionary
6.08%
Consumer Staples
13.77%
Energy
2.77%
Financials
14.82%
Health Care
18.50%
Industrials
21.52%
Information Technology
17.25%
Materials
3.35%

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.

August Fund Holdings

As of 08/31/2020

CUSIP Security Description Country Ticker Shares/Par Market Value (USD)
00287Y109 ABBVIE INC US ABBV 15,563 $1,490,468.51
020002101 ALLSTATE CORPORATION US ALL 4,794 $445,842.00
032654105 ANALOG DEVICES INC US ADI 4,214 $492,532.32
039483102 ARCHER-DANIELS-MIDLAND CO US ADM 9,312 $416,805.12
053015103 AUTOMATIC DATA PROCESSING US ADP 4,056 $564,149.04
05722G100 BAKER HUGHES CO US BKR 20,172 $288,056.16
060505104 BANK OF AMERICA CORP US BAC 64,914 $1,670,886.36
086516101 BEST BUY INC US BBY 4,622 $512,626.02
110122108 BRISTOL MYERS SQUIBB CO US BMY 22,112 $1,375,366.40
12541W209 C.H. ROBINSON WORLDWIDE INC US CHRW 3,434 $337,562.20
149123101 CATERPILLAR INC US CAT 7,083 $1,007,981.73
172062101 CINCINNATI FINANCIAL CORP US CINF 2,668 $211,865.88
17275R102 CISCO SYSTEMS INC US CSCO 39,878 $1,683,649.16
172967424 CITIGROUP INC US C 20,248 $1,035,077.76
194162103 COLGATE-PALMOLIVE CO US CL 11,583 $918,068.58
20030N101 COMCAST CORP-CL A US CMCSA 30,516 $1,367,421.96
205887102 CONAGRA BRAND INC. US CAG 10,343 $396,757.48
20825C104 CONOCOPHILLIPS US COP 12,974 $491,584.86
21036P108 CONSTELLATION BRANDS INC-A US STZ 2,374 $437,955.52
231021106 CUMMINS INC US CMI 2,472 $512,322.00
260003108 DOVER CORP US DOV 2,112 $231,982.08
26875P101 EOG RESOURCES INC US EOG 8,050 $364,987.00
291011104 EMERSON ELEC CO US EMR 10,188 $707,760.36
311900104 FASTENAL CO US FAST 11,073 $541,026.78
316773100 FIFTH THIRD BANCORP US FITB 12,558 $259,448.28
369550108 GENERAL DYNAMICS CORP US GD 3,969 $592,770.15
370334104 GENERAL MLS INC US GIS 9,963 $637,133.85
372460105 GENUINE PARTS CO US GPC 3,492 $329,784.48
375558103 GILEAD SCIENCES INC US GILD 14,674 $979,489.50
384802104 WW GRAINGER INC US GWW 844 $308,422.92
416515104 HARTFORD FINL SVCS US HIG 6,994 $282,907.30
427866108 HERSHEY CO/THE US HSY 3,663 $544,468.32
437076102 HOME DEPOT INC US HD 9,403 $2,680,231.12
438516106 HONEYWELL INTERNATIONAL INC US HON 8,040 $1,331,022.00
440452100 HORMEL FOODS CORP US HRL 7,111 $362,518.78
452308109 ILLINOIS TOOL WKS INC US ITW 4,402 $869,615.10
458140100 INTEL CORP US INTC 35,759 $1,821,921.05
459200101 INTERNATIONAL BUSINESS MACH CORP US IBM 10,025 $1,236,182.75
459506101 INTERNATIONAL FLVRS & FRAGRANCES US IFF 1,783 $220,717.57
46625H100 JP MORGAN CHASE & CO US JPM 21,788 $2,182,939.72
478160104 JOHNSON & JOHNSON US JNJ 17,443 $2,675,930.63
482480100 KLA-TENCOR CORPORATION US KLAC 2,758 $565,776.12
494368103 KIMBERLY CLARK CORP US KMB 5,018 $791,639.68
501044101 KROGER CO US KR 14,558 $519,429.44
532457108 ELI LILLY & CO US LLY 7,193 $1,067,369.27
539830109 LOCKHEED MARTIN CORP US LMT 3,042 $1,187,170.92
56585A102 MARATHON PETROLEUM CORP US MPC 12,212 $433,037.52
58933Y105 MERCK & CO INC US MRK 22,749 $1,939,807.23
609207105 MONDELEZ INTERNATIONAL INC US MDLZ 18,471 $1,079,075.82
64110D104 NETAPP INC US NTAP 5,037 $238,703.43
655844108 NORFOLK SOUTHN CORP US NSC 2,559 $543,864.27
670346105 NUCOR CORP US NUE 7,184 $326,584.64
68389X105 ORACLE CORP US ORCL 21,274 $1,217,298.28
693475105 PNC FINANCIAL SERVICES GROUP US PNC 4,272 $475,046.40
693506107 PPG INDUSTRIES INC US PPG 3,227 $388,530.80
701094104 PARKER HANNIFIN CORP US PH 1,947 $401,101.47
717081103 PFIZER INC US PFE 48,844 $1,845,814.76
747525103 QUALCOMM INC US QCOM 8,414 $1,002,107.40
74834L100 QUEST DIAGNOSTICS INC US DGX 2,811 $312,695.64
75513E101 RAYTHEON TECHNOLOGIES CORP US RTX 15,330 $935,130.00
7591EP100 REGIONS FINANCIAL CORP. US RF 18,615 $215,189.40
773903109 ROCKWELL AUTOMATION INC US ROK 2,037 $469,589.61
83088M102 SKYWORKS SOLUTIONS INC US SWKS 2,489 $360,531.65
832696405 JM SMUCKER CO/THE-NEW COM WI US SJM 2,685 $322,683.30
854502101 STANLEY WORKS/THE US SWK 2,320 $374,216.00
857949BL0 SS INT BEARING FD .022% 01/02/15 US 690,369.75 $690,369.75
871829107 SYSCO CORP US SYY 7,698 $462,957.72
882508104 TEXAS INSTRUMENTS INC US TXN 10,113 $1,437,562.95
88579Y101 3M CO US MMM 7,194 $1,172,765.88
89417E109 TRAVELLERS COS INC US TRV 3,873 $449,422.92
89832Q109 TRUIST FINANCIAL CORP US TFC 18,171 $705,216.51
902494103 TYSON FOODS INC -CL A US TSN 6,045 $379,626.00
902973304 U.S. BANCORP US USB 20,608 $750,131.20
907818108 UNION PAC CORP US UNP 7,124 $1,370,942.56
918204108 VF CORP US VFC 7,002 $460,381.50
91913Y100 VALERO ENERGY US VLO 7,225 $379,962.75
931142103 WAL MART STORES US WMT 17,664 $2,452,646.40
94106L109 WASTE MANAGEMENT INC US WM 6,576 $749,664.00
949746101 WELLS FARGO COMPANY US WFC 44,019 $1,063,058.85
983919101 XILINX INC US XLNX 3,492 $363,726.72
G1151C101 ACCENTURE PLC - CL A IE ACN 4,978 $1,194,371.54
G29183103 EATON CORP PLC US ETN 6,676 $681,619.60
G51502105 JOHNSON CONTROLS INTERNATIONAL US JCI 12,937 $526,924.01
G5494J103 LINDE PLC GB LIN 3,895 $972,737.30
G5960L103 MEDTRONIC INC IE MDT 12,783 $1,373,789.01
G8994E103 TRANE TECHNOLOGIES IE TT 2,879 $340,844.81
H1467J104 CHUBB LTD CH CB 5,725 $715,625.00
H2906T109 GARMIN LTD CH GRMN 3,012 $312,073.32
N53745100 LYONDELLBASELL INDU-CL A US LYB 6,963 $455,937.24

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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