3 / 5 Stars
Zacks Investment Research
Standard & Poor's
3 / 5 Stars
U.S. News evaluated 200 Conservative Allocation Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
Note: Profile written for different share class.
The fund has returned 9.77 percent over the past year, 7.36 percent over the past three years, 5.63 percent over the past five years, and 5.31 percent over the past decade.
|Trailing Returns||Updated 05.31.2013|
|Year to date||3.8%|
|3 Years (Annualized)||7.4%|
|5 Years (Annualized)||5.6%|
|10 Years (Annualized)||5.3%|
Patrick Cunningham, managing director at Manning & Napier Advisors, says this fund's strategy is simple: Don't lose money. The fund is the most risk-averse of the firm's four balanced funds—which invest in a mix of stocks and bonds—that Manning & Napier manages. All of the company's balanced funds are managed with an active asset allocation strategy—meaning the allocation ratio in stocks and bonds will fluctuate, depending on the markets. The fund's weighting in stocks can range from as low as 5 percent to as high as 35 percent. "When markets were very expensive like they were at the end of 2000, we'll be at the low end of our allocation," Cunningham says. "When markets are very cheap—when they go through a significant correction—we'll beat the high end of our range." Currently, management has invested about a quarter of the portfolio's total assets in stocks. Generally, the fund will fall behind somewhat during huge market rallies, but it tends to hold up well during meltdowns like investors saw it 2008—when the fund only lost about 5 percent. Consequently, the fund only gained 10 percent in 2009, when its average peer saw gains closer to 20 percent.
The investment seeks to provide preservation of capital, and its secondary objectives are to provide income and long-term growth of capital. The fund invests primarily in fixed income securities, including U.S. Treasury securities, pass-through securities, and corporate bonds. It invests primarily in investment grade securities, but may also invest to a limited extent in non-investment grade securities (junk bonds). The fund may also invest in U.S. and foreign stocks, including those in emerging markets, and American Depository Receipts (ADRs).
Fees are High compared to funds in the same category.
Manning & Napier Pro Blend Conservative Term Series has an expense ratio of 1.19 percent.
Risk is Low compared to funds in the same category according to Morningstar.