Investment Objective

This approach is for those who place dual emphasis on two objectives which must be balanced against each other due to their conflicting nature. The objectives for this option are as follows:

1. To manage against capital risk by reducing year-to-year volatility.
2. To seek capital growth over the medium term when the Investment Manager believes valuation levels in the stock market are favorable and when the Investment Manager believes its specific strategies and pricing techniques can take advantage of market conditions.

Investment Team

The Core Team is responsible for evaluating bottom-up stock recommendations based on strategy fit and valuation measures as well as incorporating the firm’s market & economic views into total portfolio asset allocation decisions. The Fixed Income Group is responsible for the active management of the portfolio’s fixed income segment.

Composition

The portfolio will include a mix of stocks and bonds.

20% - 60% Equities

Investment Process

Active Asset Allocation
Manning & Napier employs an active asset allocation process because we recognize that no single asset mix is likely to be appropriate in all market environments. The firm's Investment Policy Group is responsible for formulating the firm's broad economic and market outlook and issuing guidance on asset allocation within multi-asset class portfolios. This top-down view is complemented by the Core Equities team's bottom-up stock selection which ultimately determines day-to-day equity exposures. An active approach to asset allocation allows us the flexibility to dynamically take advantage of opportunities that arise and adjust the portfolio to the ever-evolving economic environment. We have more than 50 years of experience managing risk through this active approach.

Equity Investment Process
Manning & Napier’s equity analysts search the global investment universe for portfolio candidates that meet criteria for our one of our three proprietary stock selection strategies - Strategic Profile, Hurdle Rate, and Bankable Deal. Companies are evaluated using fundamental analysis to determine strategy fit, and strict pricing disciplines are used to establish buy and sell targets based on fair market value.  When an analyst recommends a stock to the Core Team for inclusion in the portfolio, that portfolio management group determines whether to accept the recommendation, put it on the “firedrill” list, or reject it. Each holding is continuously monitored based on our strategy fit and valuation criteria, and the portfolio's overall risk exposures are regularly evaluated by the team.

Fixed Income Investment Process
Our approach to fixed income investing is based on a multi-step process with an emphasis on actively managing risk. The team establishes an economic overview that is used to determine duration and yield curve positioning. Security-specific analysis is then conducted based on which 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 Manning & Napier Growth with Reduced Volatility Composite is a weighted average of discretionary separately managed accounts, and may include proprietary mutual fund and collective investment trust accounts with a Growth with Reduced Volatility objective. Accounts in this composite must have a market value greater than $500,000 and tenure of at least one month under our management. Growth with Reduced Volatility 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 balance reduction of year-to-year volatility while seeking moderate capital growth. Equity exposure for accounts in this composite typically ranges from 20% to 60% with situational adjustments within this range at our discretion. 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. Prior to 01/01/1986, the composite was based on the Blended Objectives Composite consisting of employee benefit accounts with a blended investment objective, including Growth with Reduced Volatility accounts. Prior to 01/01/2009, proprietary mutual fund and collective investment trust accounts with a Growth with Reduced Volatility objective were excluded from the composite. Fees used for calculations are firmwide rates prior to 2001 and specific to this composite for 2001 onward. Net-of-fee returns shown reflect the deduction of a model advisory fee applied to the Gross-of-fee returns on a monthly basis. The model advisory fee is determined by applying the strategy’s tiered fee schedule to every account included in the composite, and is inclusive of management fees, advisory fees, and custody fees for Manning & Napier’s affiliated trust company, Exeter Trust Company. Actual account level fees will vary with size and circumstances and these fee differentials would impact returns accordingly. Returns shown do not reflect the deduction of fees paid to an investor’s personal financial advisor, solicitations fees, or third-party custodian costs, as applicable. 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.