Manning & Napier (MN) Investor Update summary

Market and economic review

• Domestic markets experienced significant volatility but ended up slightly positive year-to-date, with the S&P 500 and bonds both up around 3% as of mid-year.

• April's sharp downturn, triggered by aggressive tariff announcements, was followed by a recovery as market fears eased and asset prices rebounded.

• International equities outperformed U.S. markets, benefiting from lower valuations and different economic cycles, with global markets up over 10% year-to-date.

Policy and macroeconomic developments

• Tariff policy remains a source of uncertainty, with a 10% broad-based tariff likely to persist and ongoing negotiations expected to prolong volatility.

• The scheduled sunsetting of the Tax Cuts and Jobs Act is being addressed by new legislation, likely extending favorable individual tax rates and providing more time for tax planning strategies.

• Concerns about rising government debt and deficits may limit future fiscal stimulus options, but no immediate crisis is expected; relative attractiveness of U.S. assets remains.

Investment strategy and portfolio positioning

• Emphasis on stability over speculation, with portfolios balanced between equities and fixed income, and a focus on diversification across geographies and asset classes.

• Volatility in April was used to invest in companies with strong pricing power, particularly in the luxury goods sector, and those with resilient supply chains.

• Ongoing evaluation of opportunities in international markets and selective exposure to sectors like healthcare, where regulatory changes may create value.