4 / 5 Stars
3 3 4 3 3
Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#155 in Large Blend
U.S. News evaluated 498 Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 18.57 percent over the past year, 9.00 percent over the past three years, 5.08 percent over the past five years, and 9.31 percent over the past decade.
|Trailing Returns||Updated 04.30.2013|
|Year to date||10.4%|
|3 Years (Annualized)||9.0%|
|5 Years (Annualized)||5.1%|
|10 Years (Annualized)||9.3%|
Perhaps the Manning & Napier Tax Managed fund should change its name. It’s not that it isn’t a tax-managed fund (one that keeps a close eye on reducing investors’ tax burdens). It’s that tax-managed funds bring to mind reclusive billionaires who are more interested in keeping their gains away from Uncle Sam than producing hefty gains in the first place. Though tax management is the fund’s titular goal, many investors might pass the fund over without realizing that its long-term returns place it above the vast majority of its large-cap blend peers.
As of May 03, 2013, the fund has assets totaling almost $29.54 million invested in 79 different holdings. Its portfolio consists of mid- and large-cap companies.
Managment uses an entirely bottom-up investing strategy and does not have sector limits, which explains the portfolio’s 17 percent stake in business services companies, about four times the level of peers. It’s not that sector itself is attractive, co-manager Michael Magiera says, it’s that management has found lots of attractive companies that happen to be in that space. Chief among those holdings are staffing companies Manpower and Switzerland’s Adecco. The fund has returned 18.57 percent over the past year and 9.00 percent over the past three years.
Management looks for cyclical companies that flourish during market downturns and boast global competitive advantages. Magiera cites Hess as a company that has retooled effectively during the latest recession. While sitting at a cheap valuation, the company has continued to expand its oilreserves throughout the last few years. Although management is typically more interested in growth than valuation, it occasionally looks for companies that are heavily undervalued. Although these companies make up a much smaller amount of the fund’s total investments, management will occasionally invest in stocks that it believes are selling for at least a 40 percent discount. The fund tends to hold stocks for about two years, but management prefers longer holding periods from which the fund derives its tax-advantage moniker. As of the end of the first quarter, its trailing three-, five-, and 10-year returns all landed it in the top 10 percent of its Morningstar category. The fund has returned 5.08 percent over the past five years and 9.31 percent over the past decade.
The fund sticks primarily to U.S. equity markets, but managers are allowed and willing to look for foreign investments. Management primarily looks for companies with strong growth fundamentals. It views the fund as a buy-and-hold fund with few investment limitations and a goal of reducing investors’ taxes by coordinating losses with gains and holding securities as long as possible to forestall taking taxable gains.
Jeffrey Coons, Jeffrey Herrmann, Marc Tommasi, and Michael Magiera have managed the fund since 1995. Five other co-managers round out the team, which has access to a pool of 40 analysts.
Manning & Napier Tax Managed Fund has an expense ratio of 1.20 percent.
The fund holds many growth stocks, which could hurt it if growth stocks do poorly as an asset class.