The Strategic Income Conservative Series will invest 15% to 45% of its portfolio in equities, and the more aggressive Strategic Income Moderate Series will invest 44% to 75% of its portfolio in equities. Both aim to beat traditional income-producing securities.
“In today’s market environment, yields on traditional ‘safe,’ income-producing securities like U.S. Treasuries are very low, and negative in some cases on an inflation-adjusted basis,” said Patrick Cunningham, chief executive of Manning & Napier. “Not only does this provide challenges for generating income, but it also exposes investors to potential capital risk. We have developed a strategy that provides greater income potential and helps to mitigate risk through an active security selection and asset-allocation approach.”
The funds will invest in four proprietary funds at Manning & Napier designed to provide investors with both income and appreciation. The Strategic Income funds will be offered with a retail S Class share with an investment minimum of $2,000 and an institutional I Class share with an investment minimum of $1 million.