Disciplined Value – Unrestricted

A Redefined Approach to Value Investing

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.

 

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.

Download the product spotlight to learn more about our time-tested, rules-based strategy

Investment Objective

To provide competitive returns consistent with the broad equity markets while also providing a level of capital protection during sustained market downturns. The investment minimum for the portfolio is $250,000.

Investment Team

The portfolio is managed by a team of five research professionals whose three key members average 13 years with the firm.

Performance

As of 06/30/2019

YTD

12.45%

1 Year

9.44%

3 Year

12.07%

5 Year

8.8%

10 Year

12.7%

Inception
(11/01/2003)

10.64%

Market Cycle

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Composition

High-quality, high dividend-yielding securities. Focus is on mid-to-large cap companies.

95% - 100% Equities

Investment Process

Using a systematic investment process with a focus on mid-to-large capitalization companies, securities are selected annually based on free cash flow generation and earnings power, minimum dividend yield, dividend sustainability, and financial health. Holdings will predominantly consist of U.S. securities; however, non-U.S. developed and emerging market securities may be held.

The Manning & Napier Disciplined Value - Unrestricted (formerly known as Disciplined Value) Composite is a weighted average of discretionary separately managed accounts, and may include proprietary mutual fund accounts with a Disciplined Value - Unrestricted objective. Accounts in this composite must have a market value greater than $250,000 and tenure of at least one month under our management. This composite includes accounts invested primarily in the U.S. with some non-U.S. equities. The composite consists of diversified portfolios of mid-to-large capitalization stocks based on attractive free cash flow yields and attractive dividend yields. The proprietary criteria used include screens based on dividend yields, free cash flow yields, bankruptcy risk estimates, and market capitalization. At such time, we may use our discretion to attempt to minimize commission costs and realized capital gains. Prior to 01/01/2009, proprietary mutual fund accounts with a Disciplined Value - Unrestricted objective were excluded from the composite. Prior to April 2017, accounts with a market value below $1 million were not included in this composite. 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. Past performance does not guarantee future results. All returns were earned in USD and are stated here in USD. All data are subject to revision. Performance for periods greater than one year is annualized.

A Redefined Approach to Value Investing

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.

 

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.

Download the product spotlight to learn more about our time-tested, rules-based strategy

Investment Objective

To provide competitive returns consistent with the broad equity markets while also providing a level of capital protection during sustained market downturns. The investment minimum for the portfolio is $250,000.

Investment Team

The portfolio is managed by a team of five research professionals whose three key members average 13 years with the firm.

Composition

High-quality, high dividend-yielding securities. Focus is on mid-to-large cap companies.

95% - 100% Equities

Performance

As of 06/30/2019

YTD

12.45%

1 Year

9.44%

3 Year

12.07%

5 Year

8.8%

10 Year

12.7%

Inception
(11/01/2003)

10.64%

Market Cycle

---

Investment Process

Using a systematic investment process with a focus on mid-to-large capitalization companies, securities are selected annually based on free cash flow generation and earnings power, minimum dividend yield, dividend sustainability, and financial health. Holdings will predominantly consist of U.S. securities; however, non-U.S. developed and emerging market securities may be held.

The Manning & Napier Disciplined Value - Unrestricted (formerly known as Disciplined Value) Composite is a weighted average of discretionary separately managed accounts, and may include proprietary mutual fund accounts with a Disciplined Value - Unrestricted objective. Accounts in this composite must have a market value greater than $250,000 and tenure of at least one month under our management. This composite includes accounts invested primarily in the U.S. with some non-U.S. equities. The composite consists of diversified portfolios of mid-to-large capitalization stocks based on attractive free cash flow yields and attractive dividend yields. The proprietary criteria used include screens based on dividend yields, free cash flow yields, bankruptcy risk estimates, and market capitalization. At such time, we may use our discretion to attempt to minimize commission costs and realized capital gains. Prior to 01/01/2009, proprietary mutual fund accounts with a Disciplined Value - Unrestricted objective were excluded from the composite. Prior to April 2017, accounts with a market value below $1 million were not included in this composite. 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. Past performance does not guarantee future results. All returns were earned in USD and are stated here in USD. All data are subject to revision. Performance for periods greater than one year is annualized.


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