EXDAX & Morningstar’s criticism re management turnover …

hank

EXDAX is on my watchlist. Should a couple small spec bets I made today pay off in coming weeks or months I’d move the proceeds into it - and possibly more. It’s hard to find relatively successful funds with a 20/80 (equity / fixed income) mix as this one carries. In the past I’ve invested with Manning & Napier with good results. But the criticism of the firm’s management (turnover) has me concerned. It sure sounds like a mass upheaval at the firm. Should I be concerned? Anybody have more knowledge of the issues at M&N or threat they pose to their funds’ performance?

Re Morningstar’s neutral rating & subsequent “analysis” …

- They lead by mentioning “a third wave of departures” within a nine year period.

- Then add, “(More recently) Ebrahim Busheri, then-CIO of Manning & Napier and a veteran manager of these portfolios, left Manning & Napier in early 2023. That move kicked off a series of departures, including two other longtime managers of the series, Christian Andreach and Marc Tommasi, in mid-2023 and January 2024, as well as several senior analysts. And the team has cumulatively seen a lot of turnover for a relatively small group; other waves of turnover occurred in 2015-17 and 2019.”

MikeM

Manning & Napier was bought out by Callodine Group LLC in the middle of 2022. I'm only guessing, but possibly the acquistion didn't go well or sit well with Manning & Napier fund annalists and managers. Just a guess.

Manning & Napier was a great but very small boutique bond investment firm in Fairport NY, a very nice suburb of Rochester. It went public about 10 years ago, which may or may not corollate to the other turnover mentioned in your post.

hank

Thanks @MikeM / I don’t think M* mentions the buyout. Explains a lot.

yogibearbull

M* under People for EXDAX says this:

Privately owned for decades, the firm went public in 2011. Following a period of outflows and two waves of personnel turnover, the firm appeared to stabilize in 2020 when cofounder Bill Manning sold his ownership stake back to the firm. But in October 2022, Callodine Group--a hands-off asset manager founded in 2018 by former Fidelity fund manager James Morrow--acquired the firm at a 41% premium and returned it to private ownership. In the wake of this news, Ebrahim Busheri, who served as head of investments, announced his departure and a couple of analysts left. Still, this acquisition means the firm won’t face public-markets ire, and Morrow, who has roots and resources in upstate New York, sees himself as a long-term holder of the firm.

hank

Thanks @yogibearbull. Encouraging to hear. I’ll have to do some additional research before buying if / when. I guess the ETF craze popularity has really thrown a wrench into the workings of smaller OEF providers. (larger ones as well)

FD1000

Why look at EXDAX when ICMUX performance for 1-3-5 years is so much better with a lower SD.
ICMUX doubled EXDAX for 1 year and more than doubled for 5 years.