Although the firm has seen personnel changes, it's still an adequate parent. Manning & Napier's investment team has seen a lot of change, but it remains a decent steward of investors' capital. The firm merits an Average Parent rating.
There was a wave of personnel turnover among the investment team after Callodine Group acquired the firm at a substantial premium to the firm's stock price in late 2022. The three top decision-makers on its flagship multi-asset strategies left by early 2024, along with several analysts. This was the third spate of turnover in roughly a decade, and yet long-tenured capable investors still predominate on the now-smaller (but adequately staffed) team. The group has also retained its distinct asset-allocation and stock selection processes, and its once-small fixed-income team has expanded amid success with a number of its strategies.
Callodine's ownership could ultimately be a stabilizing force. Its founder James Morrow, a former Fidelity fund manager, was quite familiar with the firm he acquired owing to his roots in upstate New York, Manning & Napier's home base. Meanwhile, Manning & Napier CEO Marc Mayer has remained in charge through the transition, and employees share a stake in the firm. The firm's product lineup has seen little churn, and in 2024 it closed the high-yield strategy to new investors before it grew unwieldy, a prudent move to protect investors. That said, the firm is grappling with significant outflows, which has led to less-competitive fees, and talent retention remains a key issue to watch.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Manning & Napier Advisors Inc. (Branding Name ID: BN000009CX), is covered by Morningstar Manager Research.
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