Investment Objective

Maximize current income and minimize fluctuations in principal value. 

Investment Team

The portfolio is managed by a team of tenured research professionals who are responsible for the active selection of securities within the strategy.

Composition

• U.S. Treasuries
• U.S. Agencies
• U.S. Agency Mortgage-Backed Securities
• General Obligation Municipal Bonds
• Cash Equivalents

Maturity

• Maximum maturity (average life for Government National Mortgage Association (GNMA) pass-through securities) of five years for each investment

0% - 0% Equities

Investment Process

Manning & Napier manages fixed income portfolios using an active approach that is based on the consistent application of a multi-step process where top-down guidelines and bottom-up analysis are used to build a portfolio of individual securities. First, an economic overview is established through top-down analysis of global economic data, monetary policy, and capital market conditions. Then, the portfolio’s duration target is set based on longer-term interest rates and pricing. Yield curve positioning is based on the current yield curve shape as well as the economic and monetary policy outlook. Next, the attractiveness of, and value within, each sector is evaluated to establish sector weightings. Once sector allocations are determined, individual securities are handpicked to fill the targeted sector sleeve using bottom-up, issue-specific analysis; securities that fit the selection criteria and have good relative value are purchased. The economic overview, top-down positioning, and individual securities are continuously reviewed. Additional purchases or sales are evaluated based current conditions, specific security selection criteria, and relative value.