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.

The Manning & Napier Short-Term Government Fixed Income Composite is a weighted average of discretionary separately managed accounts with a Short-Term Government Fixed Income objective. Accounts in this composite must have a market value greater than $100,000 and tenure of at least one month under our management. The investment objective of accounts in this composite is to minimize capital risk by purchasing fixed income securities with short average maturities. Generally, Short-Term Government Fixed Income accounts invest in securities with a maximum maturity of five years 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.