A Redefined Approach to Value Investing

 

Published August 2016

We redefine “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

The Series 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 free cash flow generation and earnings power, minimum dividend yield, dividend sustainability, and financial health.

May be Appropriate for Investors

  • Seeking a portfolio of high-quality, dividend yielding securities
  • Seeking exposure to companies with meaningful growth potential due to high free cash flow yields and earning power

Daily Price

$7.33

Daily $ Change

$0.10

Daily % Change

1.36%

as of 02/15/2019

Ticker

MDFSX

CUSIP

56382P476

Inception Date

03/01/2012

Investment Minimum

$2,000.00

Investment minimum may be waived for certain qualified retirement plans, participants in an automatic investment program, and discretionary investment accounts of the Advisor.

Important Documents

Summary Prospectus
Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
Fact Sheet
Applications & Forms

Performance

As of 01/31/2019

YTD

6.31%

1 Year

-4.06%

3 Year

14.21%

5 Year

10.32%

10 Year

12.79%

Inception
(11/07/2008)

11.84%

Market Cycle

---

Inception performance is based on the Disciplined Value Series Class I inception of 11/07/2008. For periods through 03/01/2012 (the inception date of the Class S shares), performance for the Class S shares is hypothetical and is based on the historical performance of the Class I shares adjusted for the Class S shares’ charges and expenses. Performance data quoted represents past performance and does not guarantee future results. Performance for periods greater than one year is annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than that quoted.

Expense Ratio

Gross 0.82%*

*Includes a shareholder servicing fee of 0.25%.

Top Ten Investments

As of 01/31/2019

JOHNSON & JOHNSON 4.31%
WAL MART STORES 3.82%
JP MORGAN CHASE & CO 3.71%
PFIZER INC 3.47%
INTEL CORP 3.02%
CISCO SYSTEMS INC 3.02%
WELLS FARGO COMPANY 3.01%
BOEING CO 2.80%
MERCK & CO INC 2.75%
HOME DEPOT INC 2.70%

Top Ten Investments list is unaudited and excludes cash.

Sector Allocation

As of 01/31/2019

Communication Services 2.10%
Consumer Discretionary 9.82%
Consumer Staples 16.51%
Energy 1.96%
Financials 9.65%
Health Care 20.97%
Industrials 21.12%
Information Technology 15.64%
Materials 2.23%

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. The “Other” category contains securities such as ETFs and others that cannot otherwise be classified.

January Fund Holdings

As of 01/31/2019

CUSIP Security Description Country Ticker Shares/Par Market Value (USD)
00287Y109 ABBVIE INC US ABBV 51,811 $4,159,905.19
031162100 AMGEN INC US AMGN 24,465 $4,577,646.15
053015103 AUTOMATIC DATA PROCESSING US ADP 19,143 $2,676,957.12
086516101 BEST BUY INC US BBY 15,580 $922,959.20
097023105 BOEING CO US BA 14,606 $5,632,365.72
110122108 BRISTOL MYERS SQUIBB CO US BMY 45,064 $2,224,809.68
11135F101 BROADCOM INC US AVGO 10,628 $2,850,961.00
12541W209 C.H. ROBINSON WORLDWIDE INC US CHRW 9,011 $781,884.47
126650100 CVS HEALTH CORP US CVS 45,815 $3,003,173.25
134429109 CAMPBELL SOUP CO US CPB 20,014 $709,096.02
149123101 CATERPILLAR INC US CAT 16,516 $2,199,270.56
17275R102 CISCO SYSTEMS INC US CSCO 128,458 $6,074,778.82
189054109 CLOROX COMPANY US CLX 8,653 $1,283,932.14
194162103 COLGATE-PALMOLIVE CO US CL 34,920 $2,258,625.60
20030N101 COMCAST CORP-CL A US CMCSA 98,950 $3,618,601.50
205887102 CONAGRA BRAND INC. US CAG 26,954 $583,284.56
219350105 CORNING INC US GLW 47,652 $1,584,905.52
231021106 CUMMINS INC US CMI 8,380 $1,232,781.80
262006208 DREYFUS GVT CSH MANAGEMENT US 3,954,763.16 $3,954,763.16
277432100 EASTMAN CHEM CO US EMN 8,808 $710,100.96
291011104 EMERSON ELEC CO US EMR 29,521 $1,932,739.87
311900104 FASTENAL CO US FAST 18,088 $1,093,600.48
316773100 FIFTH THIRD BANCORP US FITB 37,888 $1,016,156.16
364760108 GAP INC US GPS 28,399 $722,470.56
370334104 GENERAL MLS INC US GIS 30,388 $1,350,442.72
372460105 GENUINE PARTS CO US GPC 9,976 $995,804.32
375558103 GILEAD SCIENCES INC US GILD 42,892 $3,002,868.92
418056107 HASBRO INC US HAS 8,314 $752,915.84
427866108 HERSHEY CO/THE US HSY 12,152 $1,289,327.20
437076102 HOME DEPOT INC US HD 29,615 $5,435,240.95
438516106 HONEYWELL INTERNATIONAL INC US HON 25,085 $3,602,958.55
440452100 HORMEL FOODS CORP US HRL 23,302 $986,140.64
452308109 ILLINOIS TOOL WKS INC US ITW 10,526 $1,445,325.06
458140100 INTEL CORP US INTC 129,079 $6,082,202.48
459200101 INTERNATIONAL BUSINESS MACH CORP US IBM 27,329 $3,673,564.18
46625H100 JP MORGAN CHASE & CO US JPM 72,229 $7,475,701.50
478160104 JOHNSON & JOHNSON US JNJ 65,265 $8,685,466.20
482480100 KLA-TENCOR CORPORATION US KLAC 9,169 $977,140.33
487836108 KELLOGG CO US K 14,889 $878,599.89
493267108 KEYCORP US KEY 44,776 $737,460.72
494368103 KIMBERLY CLARK CORP US KMB 18,560 $2,067,212.80
500255104 KOHLS CORP US KSS 11,422 $784,577.18
500754106 KRAFT HEINZ CO/THE US KHC 36,460 $1,752,267.60
532457108 ELI LILLY & CO US LLY 29,111 $3,489,244.46
539830109 LOCKHEED MARTIN CORP US LMT 9,431 $2,732,066.39
55616P104 MACY'S INC US M 28,158 $740,555.40
56585A102 MARATHON PETROLEUM CORP US MPC 36,552 $2,421,935.52
57772K101 MAXIM INTEGRATED PRODUCTS US MXIM 14,247 $773,184.69
580135101 MCDONALDS CORP US MCD 23,380 $4,179,876.40
58933Y105 MERCK & CO INC US MRK 74,518 $5,546,374.74
60871R209 MOLSON COORS BREWING CO -B US TAP 10,210 $680,088.10
609207105 MONDELEZ INTERNATIONAL INC US MDLZ 43,709 $2,021,978.34
620076307 MOTOROLA SOLUTIONS INC US MSI 10,100 $1,180,791.00
651229106 NEWELL BRANDS INC US NWL 26,777 $567,940.17
655844108 NORFOLK SOUTHN CORP US NSC 9,573 $1,605,775.02
670346105 NUCOR CORP US NUE 18,578 $1,137,716.72
695156109 PACKAGING CORP OF AMERICA US PKG 6,155 $580,539.60
704326107 PAYCHEX INC US PAYX 19,739 $1,397,521.20
713448108 PEPSICO INC US PEP 43,378 $4,887,399.26
717081103 PFIZER INC US PFE 164,682 $6,990,750.90
74834L100 QUEST DIAGNOSTICS INC US DGX 6,568 $573,714.80
832696405 JM SMUCKER CO/THE-NEW COM WI US SJM 7,904 $828,971.52
867914103 SUNTRUST BANKS INC US STI 17,202 $1,022,142.84
871829107 SYSCO CORP US SYY 25,804 $1,647,585.40
876030107 TAPESTRY INC US TPR 13,345 $516,584.95
87612E106 TARGET CORP US TGT 24,240 $1,769,520.00
882508104 TEXAS INSTRUMENTS INC US TXN 33,961 $3,419,193.48
88579Y101 3M CO US MMM 18,875 $3,780,662.50
902973304 U.S. BANCORP US USB 60,825 $3,111,807.00
907818108 UNION PAC CORP US UNP 25,138 $3,998,701.66
911312106 UNITED PARCEL SERVICE US UPS 32,003 $3,373,116.20
913017109 UNITED TECHNOLOGIES CORP US UTX 27,957 $3,300,882.99
918204108 VF CORP US VFC 20,697 $1,742,066.49
91913Y100 VALERO ENERGY US VLO 17,449 $1,532,371.18
92553P201 VIACOM INC CL B US VIAB 20,859 $613,671.78
931142103 WAL MART STORES US WMT 80,377 $7,702,527.91
931427108 WALGREENS BOOTS ALLIANCE INC US WBA 32,360 $2,338,333.60
94106L109 WASTE MANAGEMENT INC US WM 19,233 $1,840,021.11
949746101 WELLS FARGO COMPANY US WFC 124,137 $6,071,540.67
958102105 WESTERN DIGITAL CORP US WDC 18,245 $820,842.55
96145D105 WESTROCK CO US WRK 12,485 $508,264.35
963320106 WHIRLPOOL CORP US WHR 4,948 $658,133.48
G29183103 EATON CORP PLC US ETN 21,882 $1,668,502.50
G47791101 INGERSOLL-RAND PLC IE IR 11,399 $1,140,355.96
G51502105 JOHNSON CONTROLS INTERNATIONAL US JCI 34,755 $1,173,676.35
N53745100 LYONDELLBASELL INDU-CL A US LYB 17,869 $1,554,066.93

Investments will change over time.

Distributions

  • Disciplined Value Series Class S Distribution History
  • 2019 Distribution Calendar
  • Fourth Quarter 2018 Distributions
  • Third Quarter 2018 Distributions
  • Second Quarter 2018 Distributions
  • First Quarter 2018 Distributions
  • Tax Letter

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 Series will also involve a number of other risks, including issuer-specific risk and mid-cap risk. The Series 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 Series using a disciplined screening process, the Series 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 Series’ portfolio in response to market movements.

A Redefined Approach to Value Investing

 

Published August 2016

We redefine “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

$7.33

Daily $ Change

$0.10

Daily % Change

1.36%

as of 02/15/2019

Ticker

MDFSX

CUSIP

56382P476

Inception Date

03/01/2012

Investment Minimum

$2,000.00

Investment minimum may be waived for certain qualified retirement plans, participants in an automatic investment program, and discretionary investment accounts of the Advisor.

Important Documents

Summary Prospectus
Prospectus
Statement of Additional Information
Annual Report
Semi-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

The Series 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 free cash flow generation and earnings power, minimum dividend yield, dividend sustainability, and financial health.

May be Appropriate for Investors

  • Seeking a portfolio of high-quality, dividend yielding securities
  • Seeking exposure to companies with meaningful growth potential due to high free cash flow yields and earning power

Performance

As of 01/31/2019

YTD

6.31%

1 Year

-4.06%

3 Year

14.21%

5 Year

10.32%

10 Year

12.79%

Inception
(11/07/2008)

11.84%

Market Cycle

---

Inception performance is based on the Disciplined Value Series Class I inception of 11/07/2008. For periods through 03/01/2012 (the inception date of the Class S shares), performance for the Class S shares is hypothetical and is based on the historical performance of the Class I shares adjusted for the Class S shares’ charges and expenses. Performance data quoted represents past performance and does not guarantee future results. Performance for periods greater than one year is annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than that quoted.

Expense Ratio

Gross 0.82%*

*Includes a shareholder servicing fee of 0.25%.

Top Ten Investments

As of 01/31/2019

JOHNSON & JOHNSON 4.31%
WAL MART STORES 3.82%
JP MORGAN CHASE & CO 3.71%
PFIZER INC 3.47%
INTEL CORP 3.02%
CISCO SYSTEMS INC 3.02%
WELLS FARGO COMPANY 3.01%
BOEING CO 2.80%
MERCK & CO INC 2.75%
HOME DEPOT INC 2.70%

Top Ten Investments list is unaudited and excludes cash.

Sector Allocation

As of 01/31/2019

Communication Services
2.10%
Consumer Discretionary
9.82%
Consumer Staples
16.51%
Energy
1.96%
Financials
9.65%
Health Care
20.97%
Industrials
21.12%
Information Technology
15.64%
Materials
2.23%

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. The “Other” category contains securities such as ETFs and others that cannot otherwise be classified.

January Fund Holdings

As of 01/31/2019

CUSIP Security Description Country Ticker Shares/Par Market Value (USD)
00287Y109 ABBVIE INC US ABBV 51,811 $4,159,905.19
031162100 AMGEN INC US AMGN 24,465 $4,577,646.15
053015103 AUTOMATIC DATA PROCESSING US ADP 19,143 $2,676,957.12
086516101 BEST BUY INC US BBY 15,580 $922,959.20
097023105 BOEING CO US BA 14,606 $5,632,365.72
110122108 BRISTOL MYERS SQUIBB CO US BMY 45,064 $2,224,809.68
11135F101 BROADCOM INC US AVGO 10,628 $2,850,961.00
12541W209 C.H. ROBINSON WORLDWIDE INC US CHRW 9,011 $781,884.47
126650100 CVS HEALTH CORP US CVS 45,815 $3,003,173.25
134429109 CAMPBELL SOUP CO US CPB 20,014 $709,096.02
149123101 CATERPILLAR INC US CAT 16,516 $2,199,270.56
17275R102 CISCO SYSTEMS INC US CSCO 128,458 $6,074,778.82
189054109 CLOROX COMPANY US CLX 8,653 $1,283,932.14
194162103 COLGATE-PALMOLIVE CO US CL 34,920 $2,258,625.60
20030N101 COMCAST CORP-CL A US CMCSA 98,950 $3,618,601.50
205887102 CONAGRA BRAND INC. US CAG 26,954 $583,284.56
219350105 CORNING INC US GLW 47,652 $1,584,905.52
231021106 CUMMINS INC US CMI 8,380 $1,232,781.80
262006208 DREYFUS GVT CSH MANAGEMENT US 3,954,763.16 $3,954,763.16
277432100 EASTMAN CHEM CO US EMN 8,808 $710,100.96
291011104 EMERSON ELEC CO US EMR 29,521 $1,932,739.87
311900104 FASTENAL CO US FAST 18,088 $1,093,600.48
316773100 FIFTH THIRD BANCORP US FITB 37,888 $1,016,156.16
364760108 GAP INC US GPS 28,399 $722,470.56
370334104 GENERAL MLS INC US GIS 30,388 $1,350,442.72
372460105 GENUINE PARTS CO US GPC 9,976 $995,804.32
375558103 GILEAD SCIENCES INC US GILD 42,892 $3,002,868.92
418056107 HASBRO INC US HAS 8,314 $752,915.84
427866108 HERSHEY CO/THE US HSY 12,152 $1,289,327.20
437076102 HOME DEPOT INC US HD 29,615 $5,435,240.95
438516106 HONEYWELL INTERNATIONAL INC US HON 25,085 $3,602,958.55
440452100 HORMEL FOODS CORP US HRL 23,302 $986,140.64
452308109 ILLINOIS TOOL WKS INC US ITW 10,526 $1,445,325.06
458140100 INTEL CORP US INTC 129,079 $6,082,202.48
459200101 INTERNATIONAL BUSINESS MACH CORP US IBM 27,329 $3,673,564.18
46625H100 JP MORGAN CHASE & CO US JPM 72,229 $7,475,701.50
478160104 JOHNSON & JOHNSON US JNJ 65,265 $8,685,466.20
482480100 KLA-TENCOR CORPORATION US KLAC 9,169 $977,140.33
487836108 KELLOGG CO US K 14,889 $878,599.89
493267108 KEYCORP US KEY 44,776 $737,460.72
494368103 KIMBERLY CLARK CORP US KMB 18,560 $2,067,212.80
500255104 KOHLS CORP US KSS 11,422 $784,577.18
500754106 KRAFT HEINZ CO/THE US KHC 36,460 $1,752,267.60
532457108 ELI LILLY & CO US LLY 29,111 $3,489,244.46
539830109 LOCKHEED MARTIN CORP US LMT 9,431 $2,732,066.39
55616P104 MACY'S INC US M 28,158 $740,555.40
56585A102 MARATHON PETROLEUM CORP US MPC 36,552 $2,421,935.52
57772K101 MAXIM INTEGRATED PRODUCTS US MXIM 14,247 $773,184.69
580135101 MCDONALDS CORP US MCD 23,380 $4,179,876.40
58933Y105 MERCK & CO INC US MRK 74,518 $5,546,374.74
60871R209 MOLSON COORS BREWING CO -B US TAP 10,210 $680,088.10
609207105 MONDELEZ INTERNATIONAL INC US MDLZ 43,709 $2,021,978.34
620076307 MOTOROLA SOLUTIONS INC US MSI 10,100 $1,180,791.00
651229106 NEWELL BRANDS INC US NWL 26,777 $567,940.17
655844108 NORFOLK SOUTHN CORP US NSC 9,573 $1,605,775.02
670346105 NUCOR CORP US NUE 18,578 $1,137,716.72
695156109 PACKAGING CORP OF AMERICA US PKG 6,155 $580,539.60
704326107 PAYCHEX INC US PAYX 19,739 $1,397,521.20
713448108 PEPSICO INC US PEP 43,378 $4,887,399.26
717081103 PFIZER INC US PFE 164,682 $6,990,750.90
74834L100 QUEST DIAGNOSTICS INC US DGX 6,568 $573,714.80
832696405 JM SMUCKER CO/THE-NEW COM WI US SJM 7,904 $828,971.52
867914103 SUNTRUST BANKS INC US STI 17,202 $1,022,142.84
871829107 SYSCO CORP US SYY 25,804 $1,647,585.40
876030107 TAPESTRY INC US TPR 13,345 $516,584.95
87612E106 TARGET CORP US TGT 24,240 $1,769,520.00
882508104 TEXAS INSTRUMENTS INC US TXN 33,961 $3,419,193.48
88579Y101 3M CO US MMM 18,875 $3,780,662.50
902973304 U.S. BANCORP US USB 60,825 $3,111,807.00
907818108 UNION PAC CORP US UNP 25,138 $3,998,701.66
911312106 UNITED PARCEL SERVICE US UPS 32,003 $3,373,116.20
913017109 UNITED TECHNOLOGIES CORP US UTX 27,957 $3,300,882.99
918204108 VF CORP US VFC 20,697 $1,742,066.49
91913Y100 VALERO ENERGY US VLO 17,449 $1,532,371.18
92553P201 VIACOM INC CL B US VIAB 20,859 $613,671.78
931142103 WAL MART STORES US WMT 80,377 $7,702,527.91
931427108 WALGREENS BOOTS ALLIANCE INC US WBA 32,360 $2,338,333.60
94106L109 WASTE MANAGEMENT INC US WM 19,233 $1,840,021.11
949746101 WELLS FARGO COMPANY US WFC 124,137 $6,071,540.67
958102105 WESTERN DIGITAL CORP US WDC 18,245 $820,842.55
96145D105 WESTROCK CO US WRK 12,485 $508,264.35
963320106 WHIRLPOOL CORP US WHR 4,948 $658,133.48
G29183103 EATON CORP PLC US ETN 21,882 $1,668,502.50
G47791101 INGERSOLL-RAND PLC IE IR 11,399 $1,140,355.96
G51502105 JOHNSON CONTROLS INTERNATIONAL US JCI 34,755 $1,173,676.35
N53745100 LYONDELLBASELL INDU-CL A US LYB 17,869 $1,554,066.93

Investments will change over time.

Distributions

  • Disciplined Value Series Class S Distribution History
  • 2019 Distribution Calendar
  • Fourth Quarter 2018 Distributions
  • Third Quarter 2018 Distributions
  • Second Quarter 2018 Distributions
  • First Quarter 2018 Distributions
  • Tax Letter

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 Series will also involve a number of other risks, including issuer-specific risk and mid-cap risk. The Series 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 Series using a disciplined screening process, the Series 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 Series’ portfolio in response to market movements.


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