We are an independent investment management firm that provides a broad range
of investment solutions through separately managed accounts, mutual funds and
collective investment trust funds. Founded in 1970, we offer equity and fixed
income portfolios as well as a range of blended asset portfolios, such as life
cycle funds, that use a mix of stocks and bonds. As illustrated in the chart
below, since 1999, we have achieved strong growth in discretionary assets
under management, or AUM. From December 31, 1999 through September 30, 2011,
our AUM has increased from $6.9 billion to $38.8 billion, representing a
compound annual growth rate of 15.8% during a period that included two
significant bear markets. Our growth in AUM resulted in an increase in
our revenues from $50.2 million for the year ended December 31, 1999 to
$255.5 million for the year ended December 31, 2010.
We employ a disciplined investment process that seeks to avoid areas of
speculation and invest in what we view as under-valued market segments,
under the principle that today’s market prices drive future potential
investment returns. Initially, this approach helped us build a strong
client base of high net worth individuals and middle market institutions,
and we maintain these relationships in many targeted geographic regions.
This foundation allowed us to expand our business to serve the needs of
larger institutions, investment consultants and other intermediaries, which
has been a strong driver of recent growth.
We have focused on building an internal organization of specialists to provide
additional consultative services beyond investment management, which we
believe helps us build close relationships with our clients through multiple
service touch points and a solutions-oriented approach. Taken together with
strong long-term investment performance across portfolios, our consultative,
total-solutions approach has allowed us to achieve a significantly
lower-than-industry average annual separate account cancellation rate
through difficult market environments. According to Cerulli Associates,
the average annual industry redemption rate, or cancellation rate, for
separate accounts was 23.3% for the period 2002 through 2010 and 24.9%
over the last five years ending December 31, 2010, as compared to our average
annual cancellation rates of 3.9% and 3.6%, respectively, during such periods.
We have experienced net positive cash flows in both our separate accounts and
our mutual funds for each of the last four years and thus far in 2011 through
October 31, 2011.
Our research process is analyst- and team-driven. Our mutual funds have earned
a number of industry accolades, including a finalist ranking for Morningstar’s
international manager of the decade and multiple Lipper awards, and two S&P
Capital Silver Awards for the year ended August 31, 2011. As of September
30, 2011, 10 of the 20 funds eligible for Morningstar ratings, representing
approximately 71% of our total mutual fund AUM, are rated four or five stars
by Morningstar. From January 1, 2000 through September 30, 2011, a period of
time that included two significant bear markets, many of our mutual funds and
similarly managed separate account portfolios experienced strong cumulative
returns well in excess of the returns earned by broad equity market
We offer our investment management capabilities primarily through direct
sales to high net worth individuals and institutions, as well as through
third-party intermediaries, including national brokerage firm advisors,
independent financial advisors, and institutional investment
We were incorporated on June 22, 2011 under the laws of the State of Delaware.
Our principal executive office is located at 290 Woodcliff Drive, Fairport, New
York 14450, and our telephone number at that office is (585) 325-6880. The
website address of our operating company is www.manning-napier.com.