What are Manning And Napier's Business Segments?
We manage a variety of equity, fixed income, alternative and blended asset strategies,
using primarily traditional asset classes such as stocks and bonds. These strategies
may include a mix of the different vehicles we offer, including separate accounts,
mutual funds, and collective investment trusts. Our goal is to help our clients
meet their investment objectives by providing competitive positive returns over
full stock market cycles, including both bull and bear market environments. Three
key elements of our investment process help to keep us focused on that goal:
Team-Based Research. Our analysts and economists work together to understand market
opportunities from both a broad, macro level and a more detailed industry and
company level. This combination of both "top-down" and "bottom-up"
research allows us to identify trends, themes and company specific investment
opportunities across the globe, and has been a key factor in our success. The
use of a team rather than an individual to manage strategies means we emphasize
repeatable processes over personalities.
A Focus on Absolute Returns. Whether investing in a country, industry or individual
company, we hold a strong belief that price matters. We are focused on helping
our clients avoid permanent loss of capital over their time horizon, which is
different than day-to-day volatility, which could in fact present opportunities.
We believe that active management has consistently been the most appropriate and
relevant investment strategy to achieve these goals across changing market environments.
To that end, we believe we have aligned the incentives of our analysts with the
goals of our clients by structuring our analyst compensation system such that
returns that are both negative and below benchmarks produce a negative bonus the
analyst has to offset before earning a positive bonus. The analysts earn their
largest bonus, which could be multiples of their salary and the largest part of
their total compensation, when they earn returns that are both positive and above
benchmarks for our clients. We believe this focus on price has provided capital
preservation in many valuation-based bear markets during our history, and reduces
the risk of permanent, downside price fluctuation from our buy price.
Flexibility to be Benchmark Agnostic. The flexibility to invest across sectors,
countries and asset classes allows us to focus on companies we view as having
greater upside potential than downside risk, and allows us to have a broad enough
opportunity set to freely navigate away from areas of excess or speculation without
limiting the number of investment opportunities. While this approach may often
result in our strategies having meaningfully different allocations and exposures
when compared to market benchmarks, we believe this type of differentiation is
necessary to manage risk in many environments.
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