UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-04087
Manning & Napier Fund, Inc.
(Exact name of registrant as specified in charter)
290 Woodcliff Drive, Fairport, NY 14450
(Address of principal executive offices)(Zip Code)
B. Reuben Auspitz 290 Woodcliff Drive, Fairport, NY 14450
(Name and address of agent for service)
Registrants telephone number, including area code: 585-325-6880
Date of fiscal year end: October 31
Date of reporting period: November 1, 2013 through October 31, 2014
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (OMB) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
ITEM 1: REPORTS TO STOCKHOLDERS.
Equity Series
Management Discussion and Analysis
(unaudited)
Dear Shareholders:
The global economy remained on a slow growth path during the past year. Developed economies continued to support economic growth through accommodative monetary policy, and as the year progressed, central banks in areas such as Europe and Japan loosened policy further to combat persistent growth headwinds. Meanwhile, the U.S. economy slowed as it meandered through a very harsh winter, but recovered quickly during the spring and summer months of 2014. The Federal Reserve completed its third quantitative easing program, and market expectations for subsequent adjustment to domestic monetary policy during 2015 helped fuel a meaningful increase in the value of the dollar relative to other global currencies during the period. With the U.S. economy making positive strides, its equity markets generally performed strongly as well. Global markets were broadly weaker, although pockets of strength existed in certain emerging market countries where encouraging political developments and reform momentum helped lift investor sentiment. Looking ahead, we expect the slow global growth environment to remain in place for the foreseeable future.
As always, we appreciate your business.
Sincerely,
Manning & Napier Advisors, LLC
1
Equity Series
Fund Commentary
(unaudited)
Investment Objective
To provide long-term growth of capital by investing primarily in common stocks. The Series is designed to allow the pursuit of opportunities in large, mid, and small size companies within the U.S.
Performance Commentary
U.S. equity markets generally delivered positive absolute returns for the twelve-month period ended October 31, 2014. The S&P 500 Total Return Index gained 17.25% while the Russell 3000® index earned 16.07%. The Equity Series provided positive absolute returns as well; however, the Series returns of 13.23% trailed the broad market on a relative basis. Despite the near-term relative underperformance, the Equity Series continues to provide competitive absolute and relative returns over the current U.S. stock market cycle. The cycle includes a prolonged bear market from April 2000 to February 2009, a recovery, and the current bull market. Since the cycle began, the Equity Series has returned 7.58% annualized, outpacing the Russell 3000® Indexs annualized return of 4.47% and the S&P 500 Total Return Indexs 4.04% annualized return.
The Series underperformance relative to the Russell 3000® Index during the year was driven by stock selection. Sector allocation also detracted from relative returns. Regarding major detractors from relative performance, stock selection in Health Care, Energy, and Industrials challenged relative returns. Relative to the benchmark, the Series overweight allocations to Energy and Consumer Discretionary detracted from relative returns as well.
Offsetting a portion of the relative performance weakness were positive contributions to relative returns from stock selection in Information Technology, Materials, and Consumer Staples. The Series overweight to Information Technology relative to the benchmark also aided relative returns, as did an underweight to Consumer Staples, and a lack of exposure to Telecommunication Services.
In regards to current portfolio positioning, we are focused on finding companies with growth drivers that are not tied to the broad economy. We believe the key to generating attractive returns in the prevailing environment is the ability to identify individual businesses that can innovate and disrupt the competitive environment in which they operate. This involves finding businesses that are generating growth by creating new markets, expanding existing markets, or simply by taking share from their rivals.
Moving forward, we continue to believe that slow growth remains the most likely path for the U.S. economy. While uncertainty among investors regarding the pace of economic expansion and domestic monetary policy heightens the potential for new bouts of volatility, we would view short-term periods of weakness as a buying opportunity given the lack of excess in the market and economy we see today. That being said, a selective approach to investment selection is critical. While equity valuations do not appear to be overly expensive at present, they have moved broadly higher and are now at levels consistent with more moderate future market returns as compared to recent years. To be sure, opportunities at the individual company level still exist, but flexibility and discipline on price are essential in our effort to manage risk and capture return in the current market environment.
Please see the next page for additional performance information as of October 31, 2014.
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than that quoted; investors can obtain the most recent month-end performance at www.manning-napier.com or by calling (800) 466-3863.
The current stock market cycle is 04/01/2000 through current.
All investments involve risks, including possible loss of principal. As with any stock fund, the value of your investment will fluctuate in response to stock market movements. Investing in the Series will also involve a number of other risks, including issuer-specific risk, small-cap/mid-cap risk, and interest rate risk.
2
Equity Series
Performance Update as of October 31, 2014
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||||||||||
ONE YEAR1 |
FIVE YEAR |
TEN YEAR |
SINCE INCEPTION2 |
|||||||||||||
Manning & Napier Fund, Inc. - Equity Series3,4 |
13.23 | % | 13.59 | % | 8.68 | % | 8.08 | % | ||||||||
Russell 3000® Index5 |
16.07 | % | 17.01 | % | 8.55 | % | 5.96 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Equity Series for the ten years ended October 31, 2014 to the Russell 3000® Index.
1 The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2 Performance numbers for the Series and Index are calculated from May 1, 1998, the Collectives inception date (see Note 4 below).
3 The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 1.05%. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 1.07% for the year ended October 31, 2014.
4 Prior to July 10, 2002, all performance figures reflect the performance of the Exeter Trust Company Group Trust for Employee Benefit Plans: All-Equity Collective Investment Trust (the Collective), which was managed by Manning & Napier Advisors, Inc. (predecessor to Manning & Napier Advisors, LLC), an affiliate of the distributor, and reorganized into the Manning & Napier Fund, Inc. Equity Series on July 10, 2002. The Collective was not open to the public generally or registered under the Investment Company Act of 1940 and the fees of the Collective were lower than the Series fees. Therefore, historical performance of the Collective would have been lower if the Collective had been subject to the same fees as the Series.
5 The Russell 3000® Index is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. The Index returns do not reflect any fees or expenses. Index returns provided by Bloomberg.
3
Equity Series
Shareholder Expense Example
(unaudited)
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD* 5/1/14-10/31/14 | ||||
Actual |
$1,000.00 | $1,035.80 | $5.39 | |||
Hypothetical |
||||||
(5% return before expenses) |
$1,000.00 | $1,019.91 | $5.35 |
*Expenses are equal to the Series annualized expense ratio (for the six-month period) of 1.05%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The Series total return would have been lower had certain expenses not been waived during the period.
4
Equity Series
Portfolio Composition as of October 31, 2014
(unaudited)
5
Equity Series
Investment Portfolio - October 31, 2014
SHARES |
VALUE (NOTE 2) |
|||||||
COMMON STOCKS - 95.2% |
||||||||
Consumer Discretionary - 23.6% |
||||||||
Diversified Consumer Services - 1.1% |
||||||||
Apollo Education Group, Inc.* |
482,200 | $ | 13,819,852 | |||||
|
|
|||||||
Hotels, Restaurants & Leisure - 1.8% |
||||||||
Yum! Brands, Inc. |
324,800 | 23,330,384 | ||||||
|
|
|||||||
Household Durables - 1.5% |
||||||||
DR Horton, Inc. |
312,640 | 7,125,066 | ||||||
Lennar Corp. - Class A |
160,090 | 6,896,677 | ||||||
Toll Brothers, Inc.* |
172,610 | 5,514,889 | ||||||
|
|
|||||||
19,536,632 | ||||||||
|
|
|||||||
Internet & Catalog Retail - 5.8% |
||||||||
Amazon.com, Inc.* |
55,690 | 17,011,067 | ||||||
HomeAway, Inc.* |
286,560 | 10,000,944 | ||||||
The Priceline Group, Inc.* |
20,020 | 24,148,324 | ||||||
Shutterfly, Inc.* |
348,210 | 14,565,624 | ||||||
TripAdvisor, Inc.* |
106,730 | 9,462,682 | ||||||
|
|
|||||||
75,188,641 | ||||||||
|
|
|||||||
Media - 13.4% |
||||||||
AMC Networks, Inc. - Class A* |
451,490 | 27,382,869 | ||||||
Gannett Co., Inc. |
614,260 | 19,349,190 | ||||||
Nexstar Broadcasting Group, Inc. - Class A |
157,880 | 7,123,546 | ||||||
Sinclair Broadcast Group, Inc. - Class A |
509,130 | 14,790,227 | ||||||
Starz - Class A* |
479,070 | 14,803,263 | ||||||
Time Warner, Inc. |
147,380 | 11,712,289 | ||||||
Tribune Media Co. - Class A* |
132,920 | 8,905,640 | ||||||
Twenty-First Century Fox, Inc. - Class A |
741,140 | 25,554,507 | ||||||
Viacom, Inc. - Class B |
389,370 | 28,299,412 | ||||||
World Wrestling Entertainment, Inc. - Class A |
1,142,690 | 14,112,221 | ||||||
|
|
|||||||
172,033,164 | ||||||||
|
|
|||||||
Total Consumer Discretionary |
303,908,673 | |||||||
|
|
|||||||
Consumer Staples - 4.1% |
||||||||
Beverages - 1.3% |
||||||||
The Coca-Cola Co. |
409,170 | 17,136,040 | ||||||
|
|
|||||||
Food Products - 1.4% |
||||||||
Ingredion, Inc. |
242,330 | 18,719,993 | ||||||
|
|
|||||||
Household Products - 1.4% |
||||||||
Energizer Holdings, Inc. |
142,700 | 17,502,155 | ||||||
|
|
|||||||
Total Consumer Staples |
53,358,188 | |||||||
|
|
|||||||
Energy - 11.9% |
||||||||
Energy Equipment & Services - 5.6% |
||||||||
Baker Hughes, Inc. |
576,400 | 30,526,144 |
The accompanying notes are an integral part of the financial statements.
6
Equity Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Energy (continued) |
||||||||
Energy Equipment & Services (continued) |
||||||||
Cameron International Corp.* |
484,500 | $ | 28,851,975 | |||||
Weatherford International plc - ADR* |
766,870 | 12,592,005 | ||||||
|
|
|||||||
71,970,124 | ||||||||
|
|
|||||||
Oil, Gas & Consumable Fuels - 6.3% |
||||||||
Apache Corp. |
164,350 | 12,687,820 | ||||||
EOG Resources, Inc. |
197,990 | 18,818,949 | ||||||
Hess Corp. |
277,550 | 23,539,016 | ||||||
Peabody Energy Corp. |
1,434,870 | 14,965,694 | ||||||
Range Resources Corp. |
178,340 | 12,198,456 | ||||||
|
|
|||||||
82,209,935 | ||||||||
|
|
|||||||
Total Energy |
154,180,059 | |||||||
|
|
|||||||
Financials - 5.5% |
||||||||
Banks - 1.1% |
||||||||
Popular, Inc.* |
444,730 | 14,177,992 | ||||||
|
|
|||||||
Consumer Finance - 0.7% |
||||||||
SLM Corp. |
901,340 | 8,607,797 | ||||||
|
|
|||||||
Real Estate Investment Trusts (REITS) - 2.0% |
||||||||
BioMed Realty Trust, Inc. |
121,190 | 2,632,247 | ||||||
Corporate Office Properties Trust |
95,300 | 2,605,502 | ||||||
Plum Creek Timber Co., Inc. |
158,230 | 6,489,012 | ||||||
Weyerhaeuser Co. |
430,910 | 14,590,613 | ||||||
|
|
|||||||
26,317,374 | ||||||||
|
|
|||||||
Real Estate Management & Development - 1.7% |
||||||||
Realogy Holdings Corp.* |
521,900 | 21,403,119 | ||||||
|
|
|||||||
Total Financials |
70,506,282 | |||||||
|
|
|||||||
Health Care - 14.3% |
||||||||
Health Care Equipment & Supplies - 4.1% |
||||||||
Alere, Inc.* |
484,395 | 19,361,268 | ||||||
HeartWare International, Inc.* |
38,810 | 2,993,027 | ||||||
Intuitive Surgical, Inc.* |
26,880 | 13,327,104 | ||||||
Thoratec Corp.* |
118,410 | 3,218,384 | ||||||
Volcano Corp.* |
1,354,150 | 13,703,998 | ||||||
|
|
|||||||
52,603,781 | ||||||||
|
|
|||||||
Health Care Providers & Services - 5.5% |
||||||||
Catamaran Corp.* |
449,730 | 21,438,629 | ||||||
DaVita HealthCare Partners, Inc.* |
370,000 | 28,885,900 | ||||||
Express Scripts Holding Co.* |
275,000 | 21,125,500 | ||||||
|
|
|||||||
71,450,029 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
7
Equity Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Health Care (continued) |
||||||||
Health Care Technology - 3.6% |
||||||||
Cerner Corp.* |
737,790 | $ | 46,731,619 | |||||
|
|
|||||||
Pharmaceuticals - 1.1% |
||||||||
Johnson & Johnson |
128,250 | 13,822,785 | ||||||
|
|
|||||||
Total Health Care |
184,608,214 | |||||||
|
|
|||||||
Industrials - 6.9% |
||||||||
Building Products - 0.6% |
||||||||
Owens Corning |
241,720 | 7,749,543 | ||||||
|
|
|||||||
Industrial Conglomerates - 2.1% |
||||||||
General Electric Co. |
1,072,250 | 27,674,773 | ||||||
|
|
|||||||
Machinery - 2.1% |
||||||||
Joy Global, Inc. |
347,780 | 18,303,661 | ||||||
Xylem, Inc. |
243,200 | 8,842,752 | ||||||
|
|
|||||||
27,146,413 | ||||||||
|
|
|||||||
Trading Companies & Distributors - 2.1% |
||||||||
Fastenal Co. |
616,290 | 27,141,412 | ||||||
|
|
|||||||
Total Industrials |
89,712,141 | |||||||
|
|
|||||||
Information Technology - 21.8% |
||||||||
Communications Equipment - 3.7% |
||||||||
F5 Networks, Inc.* |
122,690 | 15,088,416 | ||||||
Juniper Networks, Inc. |
1,541,020 | 32,469,291 | ||||||
|
|
|||||||
47,557,707 | ||||||||
|
|
|||||||
Electronic Equipment, Instruments & Components - 1.6% |
||||||||
FLIR Systems, Inc. |
615,510 | 20,638,050 | ||||||
|
|
|||||||
Internet Software & Services - 5.2% |
||||||||
eBay, Inc.* |
570,310 | 29,941,275 | ||||||
Facebook, Inc. - Class A* |
77,840 | 5,837,222 | ||||||
Google, Inc. - Class A* |
27,580 | 15,661,855 | ||||||
Google, Inc. - Class C* |
27,580 | 15,419,426 | ||||||
|
|
|||||||
66,859,778 | ||||||||
|
|
|||||||
IT Services - 5.6% |
||||||||
EVERTEC, Inc. |
862,950 | 19,588,965 | ||||||
MasterCard, Inc. - Class A |
230,310 | 19,288,463 | ||||||
VeriFone Systems, Inc.* |
388,890 | 14,490,041 | ||||||
Visa, Inc. - Class A |
81,390 | 19,649,988 | ||||||
|
|
|||||||
73,017,457 | ||||||||
|
|
|||||||
Software - 2.9% |
||||||||
ANSYS, Inc.* |
178,800 | 14,046,528 |
The accompanying notes are an integral part of the financial statements.
8
Equity Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Information Technology (continued) |
||||||||
Software (continued) |
||||||||
Electronic Arts, Inc.* |
558,860 | $ | 22,896,494 | |||||
|
|
|||||||
36,943,022 | ||||||||
|
|
|||||||
Technology Hardware, Storage & Peripherals - 2.8% |
||||||||
EMC Corp. |
1,252,260 | 35,977,430 | ||||||
|
|
|||||||
Total Information Technology |
280,993,444 | |||||||
|
|
|||||||
Materials - 7.1% |
||||||||
Chemicals - 5.4% |
||||||||
Monsanto Co. |
357,150 | 41,086,536 | ||||||
The Mosaic Co. |
582,000 | 25,788,420 | ||||||
Tronox Ltd. - Class A |
137,100 | 3,315,078 | ||||||
|
|
|||||||
70,190,034 | ||||||||
|
|
|||||||
Metals & Mining - 1.7% |
||||||||
Alcoa, Inc. |
1,265,990 | 21,217,992 | ||||||
|
|
|||||||
Total Materials |
91,408,026 | |||||||
|
|
|||||||
TOTAL COMMON STOCKS |
||||||||
(Identified Cost $1,103,949,275) |
1,228,675,027 | |||||||
|
|
|||||||
SHORT-TERM INVESTMENT - 3.5% |
||||||||
Dreyfus Cash Management, Inc. - Institutional Shares1, 0.03% |
||||||||
(Identified Cost $44,870,064) |
44,870,064 | 44,870,064 | ||||||
|
|
|||||||
TOTAL INVESTMENTS - 98.7% |
||||||||
(Identified Cost $1,148,819,339) |
1,273,545,091 | |||||||
OTHER ASSETS, LESS LIABILITIES - 1.3% |
16,789,956 | |||||||
|
|
|||||||
NET ASSETS - 100% |
$ | 1,290,335,047 | ||||||
|
|
ADR - American Depositary Receipt
*Non-income producing security.
1 Rate shown is the current yield as of October 31, 2014.
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard & Poors, a division of The McGraw-Hill Companies, Inc. (S&P), and is licensed for use by Manning & Napier when referencing GICS sectors. Neither MSCI, S&P, nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification, nor shall any such party have any liability therefrom.
The accompanying notes are an integral part of the financial statements.
9
Equity Series
Statement of Assets and Liabilities
October 31, 2014
ASSETS: |
||||
Investments, at value (identified cost $ 1,148,819,339) (Note 2) |
$ | 1,273,545,091 | ||
Receivable for securities sold |
25,333,181 | |||
Receivable for fund shares sold |
1,779,648 | |||
Dividends receivable |
626,132 | |||
|
|
|||
TOTAL ASSETS |
1,301,284,052 | |||
|
|
|||
LIABILITIES: |
||||
Accrued management fees (Note 3) |
1,053,285 | |||
Accrued transfer agent fees (Note 3) |
88,306 | |||
Accrued fund accounting and administration fees (Note 3) |
46,834 | |||
Accrued Chief Compliance Officer service fees (Note 3) |
407 | |||
Payable for securities purchased |
8,245,158 | |||
Payable for fund shares repurchased |
1,348,125 | |||
Other payables and accrued expenses |
166,890 | |||
|
|
|||
TOTAL LIABILITIES |
10,949,005 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 1,290,335,047 | ||
|
|
|||
NET ASSETS CONSIST OF: |
||||
Capital stock |
$ | 610,064 | ||
Additional paid-in-capital |
964,814,944 | |||
Accumulated net realized gain on investments |
200,184,287 | |||
Net unrealized appreciation on investments |
124,725,752 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 1,290,335,047 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class A |
||||
($1,290,335,047/61,006,444 shares) |
$ | 21.15 | ||
|
|
The accompanying notes are an integral part of the financial statements.
10
Equity Series
Statement of Operations
For the Year Ended October 31, 2014
INVESTMENT INCOME: |
||||
Dividends |
$ | 13,425,810 | ||
|
|
|||
EXPENSES: |
||||
Management fees (Note 3) |
12,875,540 | |||
Transfer agent fees (Note 3) |
293,692 | |||
Fund accounting and administration fees (Note 3) |
164,316 | |||
Directors fees (Note 3) |
46,291 | |||
Chief Compliance Officer service fees (Note 3) |
3,161 | |||
Custodian fees |
50,462 | |||
Miscellaneous |
349,800 | |||
|
|
|||
Total Expenses |
13,783,262 | |||
Less reduction of expenses (Note 3) |
(263,945 | ) | ||
|
|
|||
Net Expenses |
13,519,317 | |||
|
|
|||
NET INVESTMENT LOSS |
(93,507 | ) | ||
|
|
|||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||
Net realized gain on investments |
235,731,957 | |||
Net change in unrealized appreciation (depreciation) on investments |
(80,831,677 | ) | ||
|
|
|||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS |
154,900,280 | |||
|
|
|||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 154,806,773 | ||
|
|
The accompanying notes are an integral part of the financial statements.
11
Equity Series
Statements of Changes in Net Assets
FOR THE YEAR ENDED |
FOR THE YEAR ENDED |
|||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$ | (93,507 | ) | $ | 703,157 | |||
Net realized gain on investments |
235,731,957 | 163,586,066 | ||||||
Net change in unrealized appreciation (depreciation) on investments |
(80,831,677 | ) | 162,201,337 | |||||
|
|
|
|
|||||
Net increase from operations |
154,806,773 | 326,490,560 | ||||||
|
|
|
|
|||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||
From net investment income |
(486,768 | ) | (2,246,652 | ) | ||||
From net realized gain on investments |
(164,860,135 | ) | (163,857,384 | ) | ||||
|
|
|
|
|||||
Total distributions to shareholders |
(165,346,903 | ) | (166,104,036 | ) | ||||
|
|
|
|
|||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||
Net increase (decrease) from capital share transactions (Note 5) |
63,355,672 | (341,335,394 | ) | |||||
|
|
|
|
|||||
Net increase (decrease) in net assets |
52,815,542 | (180,948,870 | ) | |||||
NET ASSETS: |
||||||||
Beginning of year |
1,237,519,505 | 1,418,468,375 | ||||||
|
|
|
|
|||||
End of year (including undistributed net investment income of $0 and $29,561, respectively) |
$ | 1,290,335,047 | $ | 1,237,519,505 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
12
Equity Series
Financial Highlights
FOR THE YEARS ENDED | ||||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 21.60 | $ | 19.03 | $ | 18.45 | $ | 17.91 | $ | 15.55 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||
Net investment income (loss)1 |
(0.00 | )2 | 0.01 | 0.01 | 0.04 | 0.03 | ||||||||||||||
Net realized and unrealized gain on investments |
2.51 | 5.14 | 1.26 | 0.55 | 2.35 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
2.51 | 5.15 | 1.27 | 0.59 | 2.38 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.01 | ) | (0.03 | ) | (0.04 | ) | (0.05 | ) | (0.02 | ) | ||||||||||
From net realized gain on investments |
(2.95 | ) | (2.55 | ) | (0.65 | ) | | | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(2.96 | ) | (2.58 | ) | (0.69 | ) | (0.05 | ) | (0.02 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 21.15 | $ | 21.60 | $ | 19.03 | $ | 18.45 | $ | 17.91 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 1,290,335 | $ | 1,237,520 | $ | 1,418,468 | $ | 1,925,038 | $ | 1,579,323 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
13.23 | % | 30.61 | % | 7.37 | % | 3.30 | % | 15.29 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
1.05 | % | 1.05 | % | 1.05 | % | 1.05 | % | 1.05 | % | ||||||||||
Net investment income |
(0.01 | %) | 0.06 | % | 0.06 | % | 0.24 | % | 0.17 | % | ||||||||||
Portfolio turnover |
61 | % | 52 | % | 63 | % | 54 | % | 56 | % | ||||||||||
*The investment advisor did not impose all or a portion of its management and/or other fees, and in some years may have paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
0.02 | % | 0.06 | % | 0.05 | % | 0.02 | % | 0.02 | % |
1Calculated based on average shares outstanding during the years.
2Less than $(0.01).
3Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
The accompanying notes are an integral part of the financial statements.
13
Equity Series
Notes to Financial Statements
1. | Organization |
Equity Series (the Series) is a no-load diversified series of Manning & Napier Fund, Inc. (the Fund). The Fund is organized in Maryland and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The Series investment objective is to provide long-term growth of capital.
The Funds Advisor is Manning & Napier Advisors, LLC (the Advisor). Shares of the Series are offered to investors, clients and employees of the Advisor and its affiliates. The total authorized capital stock of the Fund consists of 15 billion shares of common stock each having a par value of $0.01. As of October 31, 2014, 10.6 billion shares have been designated in total among 42 series, of which 200 million have been designated as Equity Series Class A common stock.
2. | Significant Accounting Policies |
The following is a summary of significant accounting policies followed by the Series. The Series is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946 - Investment Companies, which is part of accounting principles generally accepted in the United States of America (GAAP).
Security Valuation
Portfolio securities, including domestic equities, listed on an exchange other than the NASDAQ Stock Market are valued at the latest quoted sales price of the exchange on which the security is primarily traded. Securities not traded on valuation date or securities not listed on an exchange are valued at the latest quoted bid price provided by the Funds pricing service. Securities listed on the NASDAQ Stock Market are valued in accordance with the NASDAQ Official Closing Price.
Short-term investments that mature in sixty days or less are valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at their net asset value per share on valuation date.
Volume and level of activity in established markets for an asset or liability are evaluated to determine whether recent transactions and quoted prices are determinative of fair value. Where there have been significant decreases in volume and level of activity, further analysis and adjustment may be necessary to estimate fair value. The Series measures fair value in these instances by the use of inputs and valuation techniques which may be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry and/or expectation of future cash flows. As a result of trading in relatively thin markets and/or markets that experience significant volatility, the prices used by the Series to value these securities may differ from the value that would be realized if these securities were sold, and the differences could be material.
Securities for which representative valuations or prices are not available from the Series pricing service may be valued at fair value as determined in good faith by the Advisor under procedures approved by and under the general supervision and responsibility of the Funds Board of Directors (the Board). Due to the inherent uncertainty of valuations of such securities, the fair value may differ significantly from the values that would have been used had a ready market for such securities existed. If trading or events occurring after the close of the principal market in which securities are traded are expected to materially affect the value of those securities, then they may be valued at their fair value, taking this trading or these events into account.
Various inputs are used in determining the value of the Series assets or liabilities carried at fair value. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical assets and liabilities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 includes significant unobservable inputs (including the Series own assumptions in determining the fair value of investments). A financial instruments level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
14
Equity Series
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Valuation (continued)
The following is a summary of the valuation levels used for major security types as of October 31, 2014 in valuing the Series assets or liabilities carried at fair value:
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Equity securities: |
||||||||||||||||
Consumer Discretionary |
$ | 303,908,673 | $ | 303,908,673 | $ | | $ | | ||||||||
Consumer Staples |
53,358,188 | 53,358,188 | | | ||||||||||||
Energy |
154,180,059 | 154,180,059 | | | ||||||||||||
Financials |
70,506,282 | 70,506,282 | | | ||||||||||||
Health Care |
184,608,214 | 184,608,214 | | | ||||||||||||
Industrials |
89,712,141 | 89,712,141 | | | ||||||||||||
Information Technology |
280,993,444 | 280,993,444 | | | ||||||||||||
Materials |
91,408,026 | 91,408,026 | | | ||||||||||||
Mutual Fund |
44,870,064 | 44,870,064 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 1,273,545,091 | $ | 1,273,545,091 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
There were no Level 2 or Level 3 securities held by the Series as of October 31, 2013 or October 31, 2014.
The Funds policy is to recognize transfers in and transfers out of the valuation levels as of the beginning of the reporting period. There were no transfers between Level 1 and Level 2 during the year ended October 31, 2014.
Security Transactions, Investment Income and Expenses
Security transactions are accounted for on trade date. Dividend income is recorded on the ex-dividend date, except that if the ex-dividend date has passed, certain dividends from foreign securities are recorded as soon as the Series is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Interest income, including amortization of premium and accretion of discounts using the effective interest method, is earned from settlement date and accrued daily.
Expenses are recorded on an accrual basis. Most expenses of the Fund can be attributed to a specific series. Expenses which cannot be directly attributed are apportioned among the series in the Fund in such a manner as deemed equitable by the Funds Board, taking into consideration, among other things, the nature and type of expense.
The Series uses the identified cost method for determining realized gain or loss on investments for both financial statement and federal income tax reporting purposes.
Federal Taxes
The Series policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. The Series is not subject to federal income tax or excise tax to the extent that the Series distributes to shareholders each year its taxable income, including any net realized gains on investments, in accordance with requirements of the Internal Revenue Code. Accordingly, no provision for federal income tax or excise tax has been made in the financial statements.
Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is more likely than not to be sustained assuming examination by taxing authorities. At October 31, 2014, the Series has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns.
The Series files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions, as required. No income tax returns are currently under investigation. The statute of limitations on the Series tax returns remains open for the
15
Equity Series
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Federal Taxes (continued)
years ended October 31, 2011 through October 31, 2014. The Series is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Foreign Taxes
Based on the Series understanding of the tax rules and rates related to income, gains and currency purchase/repatriation transactions for foreign jurisdictions in which it invests, the Series will provide for foreign taxes, and where appropriate, deferred foreign tax.
Distributions of Income and Gains
Distributions to shareholders of net investment income and net realized gains are made annually. An additional distribution may be necessary to avoid taxation of the Series. Distributions are recorded on the ex-dividend date.
Indemnifications
The Funds organizational documents provide former and current directors and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
3. | Transactions with Affiliates |
The Fund has an Investment Advisory Agreement (the Agreement) with the Advisor, for which the Series pays a fee, computed daily and payable monthly, at an annual rate of 1.00% of the Series average daily net assets.
Under the Agreement, personnel of the Advisor provide the Series with advice and assistance in the choice of investments and the execution of securities transactions, and otherwise maintain the Series organization. The Advisor also provides the Fund with necessary office space and fund administration and support services. The salaries of all officers of the Fund (except a percentage of the Funds Chief Compliance Officers salary, which is paid by the Fund), and of all Directors who are affiliated persons of the Fund, or of the Advisor, and all personnel of the Fund, or of the Advisor, performing services relating to research, statistical and investment activities, are paid by the Advisor. Each non-affiliated Director receives an annual stipend, which is allocated among all the active series of the Fund. In addition, these Directors also receive a fee per Board meeting attended plus a fee for each committee meeting attended and are reimbursed for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings. The Fund also has an Audit Committee Chair, who receives an additional annual stipend for this role.
The Advisor has contractually agreed, until at least February 29, 2016, to waive its management fee and, if necessary, pay other operating expenses of the Series in order to maintain total direct annual fund operating expenses for the Series at no more than 1.05% of average daily net assets each year. Accordingly, the Advisor waived fees of $263,945 for the year ended October 31, 2014, which is included as a reduction of expenses on the Statement of Operations. The Advisor is not eligible to recoup any expenses that have been waived or reimbursed in prior years.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate of the Advisor, acts as distributor for the Funds shares. The services of Manning & Napier Investor Services, Inc. are provided at no additional cost to the Series.
16
Equity Series
Notes to Financial Statements (continued)
3. | Transactions with Affiliates (continued) |
The Advisor has agreements with BNY Mellon Investment Servicing (U.S.) Inc. (BNY) under which BNY serves as sub-accountant services agent and sub-transfer agent. The Fund pays the Advisor an annual fee related to fund accounting and administration of 0.0175% on the first $3 billion of average daily net assets (excluding Target Series and Strategic Income Series); 0.015% on the next $3 billion of average daily net assets (excluding Target Series and Strategic Income Series); and 0.01% of the average daily net assets in excess of $6 billion (excluding Target Series and Strategic Income Series); plus a base fee of $25,500 per series. Transfer Agent fees are charged to the Fund on a per account basis. Additionally, certain transaction and cusip-based fees and out-of-pocket expenses, including charges for reporting relating to the Funds compliance program, are charged. Effective October 1, 2012, the aforementioned agreements were modified to reduce the annual fee related to fund accounting and administration, as well as transfer agent fees, by 10%, excluding out-of-pocket expenses, until at least October 1, 2015.
Expenses not directly attributable to a series are allocated based on each series relative net assets or number of accounts, depending on the expense.
4. | Purchases and Sales of Securities |
For the year ended October 31, 2014, purchases and sales of securities, other than U.S. Government securities and short-term securities, were $754,770,128 and $894,215,763, respectively. There were no purchases or sales of U.S. Government securities.
5. | Capital Stock Transactions |
Transactions in shares of Equity Series were:
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Sold |
15,707,742 | $ | 325,559,753 | 11,213,678 | $ | 219,442,960 | ||||||||||
Reinvested |
6,888,560 | 130,193,777 | 6,080,929 | 104,105,491 | ||||||||||||
Repurchased |
(18,889,945 | ) | (392,397,858 | ) | (34,538,433 | ) | (664,883,845 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
3,706,357 | $ | 63,355,672 | (17,243,826 | ) | $ | (341,335,394 | ) | ||||||||
|
|
|
|
|
|
|
|
At October 31, 2014, the retirement plan of the Advisor and its affiliates owned 286,079 shares of the Series (0.5% of shares outstanding) valued at $6,050,574.
6. | Financial Instruments |
The Series may trade in instruments including written and purchased options, forward foreign currency exchange contracts and futures contracts and other derivatives in the normal course of investing activities to assist in managing exposure to various market risks. The Series may be subject to various elements of risk, which may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. These risks include: the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index; counterparty credit risk related to over the counter derivative counterparties failure to perform under contract terms; liquidity risk related to the lack of a liquid market for these contracts allowing the fund to close out its position(s); and documentation risk relating to disagreement over contract terms. No such investments were held by the Series as of October 31, 2014.
7. | Foreign Securities |
Investing in securities of foreign companies and foreign governments involves special risks and considerations not typically associated with investing in securities of domestic companies and the U.S. Government. These risks include revaluation of currencies and future adverse political and economic developments. Moreover, securities of foreign companies and foreign
17
Equity Series
Notes to Financial Statements (continued)
7. | Foreign Securities (continued) |
governments and their markets may be less liquid and their prices more volatile than those of comparable domestic companies and the U.S. Government.
8. | Federal Income Tax Information |
The amount and characterization of certain income and capital gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments in the timing of the recognition of net investment income or gains and losses, including losses deferred due to wash sales. The Series may periodically make reclassifications among its capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations, without impacting the Series net asset value. For the fiscal year ended October 31, 2014, amounts were reclassified within the capital accounts to increase Additional Paid in Capital by $23,652,734, increase Undistributed Net Investment Income by $550,714 and reduce Accumulated Net Realized Gain on Investments by $24,203,448. Any such reclassifications are not reflected in the financial highlights.
The tax character of distributions paid were as follows:
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||
Ordinary income |
$ | 42,144,643 | $ | 30,554,514 | ||||
Long-term capital gains |
123,202,260 | 135,549,522 |
At October 31, 2014, the tax basis of components of distributable earnings and the net unrealized appreciation based on identified cost of investments for federal income tax purposes were as follows:
18
Equity Series
Report of Independent Registered Public Accounting Firm
To the Board of Directors of Manning & Napier Fund, Inc. and Shareholders of Equity Series:
In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Equity Series (a series of Manning & Napier Fund, Inc., hereafter referred to as the Series) at October 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Series management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
New York, New York
December 19, 2014
19
Equity Series
Supplemental Tax Information
(unaudited)
All reportings are based on financial information available as of the date of this annual report and, accordingly, are subject to change.
For federal income tax purposes, the Series reports for the current fiscal year $12,273,039 or, if different, the maximum amount allowable under the tax law, as qualified dividend income.
For corporate shareholders, the percentage of investment income (dividend income plus short-term gains, if any) that qualifies for the dividends received deduction for the current fiscal year is 27.06%.
The Series designates $180,179,144 as Long-Term Capital Gain dividends pursuant to Section 852(b) of the Code for the fiscal year ended October 31, 2014.
20
Equity Series
Directors and Officers Information
(unaudited)
The Statement of Additional Information provides additional information about the Funds directors and officers and can be obtained without charge by calling 1-800-466-3863, at www.manningnapieradvisors.com, or on the EDGAR Database on the SEC Internet web site (http:// www.sec.gov). The following chart shows certain information about the Funds officers and directors, including their principal occupations during the last five years. Unless specific dates are provided, the individuals have held the listed positions for longer than five years.
Interested Director/Officer | ||
Name: | B. Reuben Auspitz* | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 67 | |
Current Position(s) Held with Fund: | Principal Executive Officer, President, Chairman & Director | |
Term of Office1 & Length of Time Served: | Indefinite - Director since 1984; Principal Executive Officer since 2002; | |
President since 2004; Vice President 1984-2003. | ||
Principal Occupation(s) During Past 5 Years: | Executive Vice President since 1993; Chief Compliance Officer since 2004; Vice Chairman since June 2010; Co-Executive Director from 2002-2010 - Manning & Napier Advisors, LLC; President, Director - Manning & Napier Investor Services, Inc. | |
Holds or has held one or more of the following titles for various subsidiaries and affiliates: President, Vice President, Director, Chairman, Treasurer, Chief Compliance Officer or Member. | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Independent Directors | ||
Name: | Stephen B. Ashley | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 74 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1996 | |
Principal Occupation(s) During Past 5 Years: | Chairman, Director, President & Chief Executive Officer, The Ashley Group (property management and investment). Director 1995-2008 and Chairman (non-executive) 2004-2008 - Fannie Mae (mortgage) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Fannie Mae (1995-2008) | |
The Ashley Group (1995-2008) | ||
Genesee Corporation (1987-2007) | ||
Name: | Paul A. Brooke | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 68 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 2007 | |
Principal Occupation(s) During Past 5 Years: | Chairman & CEO (2005-2009) - Alsius Corporation (investments); | |
Managing Member, PMSV Holdings LLC (investments) since 1991; | ||
Managing Member, Venbio (investments) since 2010. | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Incyte Corp. (2000-present) | |
ViroPharma, Inc. (2000-present) | ||
HLTH Corp (WebMD) (2000-2010) | ||
Cheyne Capital International (2000-present) | ||
MPM Bio-equities (2000-2009) | ||
GMP Companies (2000-present) | ||
HoustonPharma (2000-2009) | ||
Cytos Biotechnology Ltd. (2012-present) |
21
Equity Series
Directors and Officers Information | ||
(unaudited)
|
||
Independent Directors (continued) | ||
Name: | Peter L. Faber | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 76 | |
Current Position(s) Held with Fund: | Director, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1987 | |
Principal Occupation(s) During Past 5 Years: | Senior Counsel (2006-2012), Partner (1995-2006 & 2013-present) - McDermott, Will & Emery LLP (law firm) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Partnership for New York City, Inc. (non-profit) (1989-2010) | |
New York Collegium (non-profit) (2004-2011) | ||
Boston Early Music Festival (non-profit) | ||
Name: | Harris H. Rusitzky | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 79 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1985 | |
Principal Occupation(s) During Past 5 Years: | President, The Greening Group (business consultants) since 1994; | |
Partner, The Restaurant Group (restaurants) since 2006 | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Chester N. Watson | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 64 | |
Current Position(s) Held with Fund: | Director, Audit Committee Chairman, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 2012 | |
Principal Occupation(s) During Past 5 Years: | General Auditor (2003-2011) - General Motors Company (auto manufacturer) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Officers |
||
Name: | Jeffrey S. Coons, Ph.D., CFA | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 51 | |
Current Position(s) Held with Fund: | Vice President | |
Term of Office1 & Length of Time Served: | Since 2004 | |
Principal Occupation(s) During Past 5 Years: | President since 2010, Co-Director of Research since 2002 - Manning & Napier Advisors, LLC | |
Holds one or more of the following titles for various subsidiaries and affiliates: President, Director, Treasurer or Senior Trust Officer. | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Elizabeth Craig | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 27 | |
Current Position(s) Held with Fund: | Assistant Corporate Secretary | |
Term of Office1 & Length of Time Served: | Since 2011 | |
Principal Occupation(s) During Past 5 Years: | Mutual Fund Compliance Specialist since 2009 - Manning & Napier Advisors, LLC | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
22
Equity Series
Directors and Officers Information | ||
(unaudited) | ||
Officers (continued) | ||
Name: | Christine Glavin | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 48 | |
Current Position(s) Held with Fund: | Principal Financial Officer, Chief Financial Officer | |
Term of Office1 & Length of Time Served: | Principal Financial Officer since 2002; Chief Financial Officer since 2001 | |
Principal Occupation(s) During Past 5 Years: | Director of Fund Reporting since 2011; Fund Reporting Manager (1997-2011) - Manning & Napier Advisors, LLC; Assistant Treasurer since 2008 - Exeter Trust Company | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Jodi L. Hedberg | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 46 | |
Current Position(s) Held with Fund: | Corporate Secretary, Chief Compliance Officer, Anti-Money Laundering Compliance Officer | |
Term of Office1 & Length of Time Served: | Corporate Secretary since 1997; Chief Compliance Officer since 2004; | |
Anti-Money Laundering Compliance Officer | ||
Principal Occupation(s) During Past 5 Years: | Director of Compliance, Manning & Napier Advisors, LLC and affiliates since 1990 (title change in 2005 from Compliance Manager to Director of Compliance); Corporate Secretary, Manning & Napier Investor Services, Inc. since 2006 | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Richard Yates | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 49 | |
Current Position(s) Held with Fund: | Chief Legal Officer | |
Term of Office1 & Length of Time Served: | Chief Legal Officer since 2004 | |
Principal Occupation(s) During Past 5 Years: | Counsel - Manning & Napier Advisors, LLC and affiliates since 2000; | |
Holds one or more of the following titles for various affiliates; Director or Corporate Secretary | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
* Interested Director, within the meaning of the Investment Company Act of 1940 by reason of his position with the Funds investment advisor and distributor. Mr. Auspitz serves as the Executive Vice President and Director, Manning & Napier Advisors, LLC and President and Director, Manning & Napier Investor Services, Inc., the Funds distributor.
1 The term of office of all officers shall be one year and until their respective successors are chosen and qualified, or his or her earlier resignation or removal as provided in the Funds By-Laws.
23
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24
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25
Equity Series
Literature Requests
(unaudited)
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the Securities and Exchange | ||||
Commissions (SEC) web site | http://www.sec.gov |
Proxy Voting Record
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
Quarterly Portfolio Holdings
The Series complete schedule of portfolio holdings for the 1st and 3rd quarters of each fiscal year are provided on Form N-Q, and are available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
The Series Form N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Prospectus and Statement of Additional Information (SAI)
For more information about any of the Manning & Napier Fund, Inc. Series, you may obtain a prospectus and SAI at www.manning-napier.com or by calling (800) 466-3863. Before investing, carefully consider the objectives, risks, charges and expenses of the investment and read the prospectus carefully as it contains this and other information about the investment company. In addition, this information can be found on the SECs web site, http://www.sec.gov.
Additional information available at www.manning-napier.com
1. Fund Holdings - Month-End
2. Fund Holdings - Quarter-End
3. Shareholder Report - Annual
4. Shareholder Report - Semi-Annual
The Fund also offers electronic notification or e-delivery when certain documents are available on-line to be downloaded or reviewed. Direct shareholders can elect to receive electronic notification when shareholder reports, prospectus updates, and/or statements are available. If you do not currently have on-line access to your account, you can establish access by going to www.manning-napier.com, click on Login in the top corner of the page, and follow the prompts to self-enroll. Once enrolled, you can set your electronic notification preferences by clicking on the Account Options tab located within the green toolbar and then select E-Delivery Option. Should you have any questions on either how to establish on-line access or how to update your account settings, please contact Investor Services at 1-800-466-3863.
The Manning & Napier Fund, Inc. is managed by Manning & Napier Advisors, LLC. Manning & Napier Investor Services, Inc., an affiliate of Manning & Napier Advisors, LLC, is the distributor of the Fund shares.
MNEQY-10/14-AR
Tax Managed Series
Management Discussion and Analysis
(unaudited)
Dear Shareholders:
The global economy remained on a slow growth path during the past year. Developed economies continued to support economic growth through accommodative monetary policy, and as the year progressed, central banks in areas such as Europe and Japan loosened policy further to combat persistent growth headwinds. Meanwhile, the U.S. economy slowed as it meandered through a very harsh winter, but recovered quickly during the spring and summer months of 2014. The Federal Reserve completed its third quantitative easing program, and market expectations for subsequent adjustment to domestic monetary policy during 2015 helped fuel a meaningful increase in the value of the dollar relative to other global currencies during the period. With the U.S. economy making positive strides, its equity markets generally performed strongly as well. Global markets were broadly weaker, although pockets of strength existed in certain emerging market countries where encouraging political developments and reform momentum helped lift investor sentiment. Looking ahead, we expect the slow global growth environment to remain in place for the foreseeable future.
As always, we appreciate your business.
Sincerely,
Manning & Napier Advisors, LLC
1
Tax Managed Series
Fund Commentary
(unaudited)
Investment Objective
To maximize long-term growth while attempting to minimize the impact of taxes on the total return earned by shareholders. The Series provides exposure to equity securities and is designed to benefit those investors who are conscious of tax implications in their portfolios.
Performance Commentary
U.S. equity markets delivered positive absolute returns for the twelve-month period ended October 31, 2014. The S&P 500 Total Return Index gained 17.25% while the Russell 3000® Index earned 16.07%. Global equity markets were generally much weaker during the one-year period as the MSCI ACWI ex USA Index (ACWIxUS) returned 0.06%. The Tax Managed Series returned 12.82%, trailing the Russell 3000® Index on a relative basis. Despite the near-term relative underperformance, the Tax Managed Series continues to provide competitive absolute and relative returns over the current U.S. stock market cycle. The cycle includes a prolonged bear market from April 2000 to February 2009, a recovery, and the current bull market. Since the cycle began, the Tax Managed Series has returned 6.87% annualized, outpacing the Russell 3000® Indexs annualized return of 4.47%.
The Series underperformance relative to the Russell 3000® Index during the year was driven by sector allocation. Stock selection also detracted from relative returns. Regarding major detractors from relative performance, stock selection in Health Care, Consumer Staples, Consumer Discretionary, Energy, and Industrials challenged relative returns. The Series overweight to Energy relative to the benchmark detracted from relative returns as well.
Offsetting a portion of the relative performance weakness were positive contributions to relative returns from stock selection in Information Technology and Materials. The Series overweight to Information Technology relative to the benchmark also aided relative returns.
In regards to current portfolio positioning, we are focused on finding companies with growth drivers that are not tied to the broad economy. We believe the key to generating attractive returns in the prevailing environment is the ability to identify individual businesses that can innovate and disrupt the competitive environment in which they operate. This involves finding businesses that are generating growth by creating new markets, expanding existing markets, or simply by taking share from their rivals.
Moving forward, we continue to believe that slow growth remains the most likely path for the U.S. and broader global economies. While uncertainty among investors regarding the pace of economic expansion and central bank monetary policies heightens the potential for new bouts of volatility, we would view short-term periods of weakness as a buying opportunity given the lack of excess in markets and economies we see today. That being said, a selective approach to investment selection is critical. While equity valuations do not appear to be overly expensive at present, they have moved broadly higher and are now at levels consistent with more moderate future market returns as compared to recent years. To be sure, opportunities at the individual company level still exist, but flexibility and discipline on price are essential in our effort to managing risk and capturing return in the current market environment.
Please see the next page for additional performance information as of October 31, 2014.
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than that quoted; investors can obtain the most recent month-end performance at www.manning-napier.com or by calling (800) 466-3863.
The current U.S. stock market cycle is 04/01/2000 through current.
All investments involve risks, including potential loss of principal. As with any stock fund, the value of your investment will fluctuate in response to stock market movements. Investing in the Series will also involve a number of other risks, including issuer-specific risk, foreign investment risk, small-cap/mid-cap risk, and interest rate risk.
2
Tax Managed Series
Performance Update as of October 31, 2014
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||||||||||
ONE YEAR1 |
FIVE YEAR |
TEN YEAR |
SINCE INCEPTION2 |
|||||||||||||
Manning & Napier Fund, Inc. - Tax Managed Series |
||||||||||||||||
Returns Before Taxes3,5 |
12.82 | % | 13.65 | % | 8.78 | % | 9.69 | % | ||||||||
Returns After Taxes on Distributions4,5 |
9.14 | % | 12.72 | % | 7.87 | % | 9.10 | % | ||||||||
Returns After Taxes on Distributions and Sale of Series |
||||||||||||||||
Shares4,5 |
9.73 | % | 10.88 | % | 7.15 | % | 8.32 | % | ||||||||
Russell 3000® Index6 |
16.07 | % | 17.01 | % | 8.55 | % | 8.91 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Tax Managed Series (returns before taxes) for the ten years ended October 31, 2014 to the Russell 3000® Index.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series and Index are calculated from November 1, 1995, the Series inception date.
3Returns before taxes do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 1.20%. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 1.33% for the year ended October 31, 2014.
4Returns after taxes on distributions assume that an investor owned the Series during the entire period and paid taxes on the Series distributions. Returns after taxes on distributions and sale of Series shares assume that an investor paid taxes on the Series distributions and sold all shares at the end of each period. After-tax returns reflect the historical highest individual federal marginal income tax rates and do not reflect state and local taxes. Actual after-tax returns depend on an investors tax situation and may differ from those shown. After-tax returns reflect past tax effects and are not indicative of future tax effects. After-tax returns are not relevant to those investing through 401(k) plans, IRAs or other tax-deferred arrangements.
5The Series performance is historical and may not be indicative of future results.
6The Russell 3000® Index is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. The Index returns do not reflect any fees or expenses. Index returns provided by Bloomberg.
3
Tax Managed Series
Shareholder Expense Example
(unaudited)
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES
PAID DURING PERIOD* 5/1/14-10/31/14 | ||||
Actual |
$1,000.00 | $1,034.40 | $6.15 | |||
Hypothetical |
||||||
(5% return before expenses) |
$1,000.00 | $1,019.16 | $6.11 |
*Expenses are equal to the Series annualized expense ratio (for the six-month period) of 1.20%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The Series total return would have been lower had certain expenses not been waived during the period.
4
Tax Managed Series
Portfolio Composition as of October 31, 2014
(unaudited)
5
Tax Managed Series
Investment Portfolio - October 31, 2014
SHARES | VALUE (NOTE 2) |
|||||||
COMMON STOCKS - 95.0% |
||||||||
Consumer Discretionary - 18.6% |
||||||||
Hotels, Restaurants & Leisure - 1.5% |
||||||||
Yum! Brands, Inc |
7,240 | $ | 520,049 | |||||
|
|
|||||||
Household Durables - 1.3% |
||||||||
DR Horton, Inc |
7,410 | 168,874 | ||||||
Lennar Corp. - Class A |
3,790 | 163,273 | ||||||
Toll Brothers, Inc.* |
3,300 | 105,435 | ||||||
|
|
|||||||
437,582 | ||||||||
|
|
|||||||
Internet & Catalog Retail - 3.6% |
||||||||
Amazon.com, Inc.* |
1,150 | 351,279 | ||||||
HomeAway, Inc.* |
4,200 | 146,580 | ||||||
The Priceline Group, Inc.* |
280 | 337,739 | ||||||
Shutterfly, Inc.* |
4,730 | 197,856 | ||||||
TripAdvisor, Inc.* |
2,260 | 200,372 | ||||||
|
|
|||||||
1,233,826 | ||||||||
|
|
|||||||
Media - 11.7% |
||||||||
AMC Networks, Inc. - Class A* |
9,150 | 554,947 | ||||||
Gannett Co., Inc |
9,140 | 287,910 | ||||||
Liberty Global plc - Class A - ADR (United Kingdom)* |
4,450 | 202,341 | ||||||
Liberty Global plc - Class C - ADR (United Kingdom)* |
4,450 | 197,891 | ||||||
Nexstar Broadcasting Group, Inc. - Class A |
3,290 | 148,445 | ||||||
Sinclair Broadcast Group, Inc. - Class A |
12,150 | 352,957 | ||||||
Starz - Class A* |
9,730 | 300,657 | ||||||
Time Warner, Inc. |
3,540 | 281,324 | ||||||
Tribune Media Co. - Class A* |
3,060 | 205,020 | ||||||
Twenty-First Century Fox, Inc. - Class A |
26,810 | 924,409 | ||||||
Viacom, Inc. - Class B |
7,340 | 533,471 | ||||||
|
|
|||||||
3,989,372 | ||||||||
|
|
|||||||
Textiles, Apparel & Luxury Goods - 0.5% |
||||||||
lululemon athletica, Inc.* |
4,000 | 166,600 | ||||||
|
|
|||||||
Total Consumer Discretionary |
6,347,429 | |||||||
|
|
|||||||
Consumer Staples - 16.2% |
||||||||
Beverages - 7.1% |
||||||||
AMBEV S.A. - ADR (Brazil)* |
67,810 | 452,971 | ||||||
Anheuser-Busch InBev N.V. (Belgium)1 |
5,550 | 615,463 | ||||||
The Coca-Cola Co |
14,990 | 627,781 | ||||||
Diageo plc (United Kingdom)1 |
8,230 | 242,721 | ||||||
SABMiller plc (United Kingdom)1 |
9,000 | 509,064 | ||||||
|
|
|||||||
2,448,000 | ||||||||
|
|
|||||||
Food Products - 5.8% |
||||||||
Danone S.A. (France)1 |
3,930 | 268,546 |
The accompanying notes are an integral part of the financial statements.
6
Tax Managed Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Consumer Staples (continued) |
||||||||
Food Products (continued) |
||||||||
Ingredion, Inc. |
5,120 | $ | 395,520 | |||||
Mead Johnson Nutrition Co. |
3,000 | 297,930 | ||||||
Nestle S.A. (Switzerland)1 |
4,880 | 357,871 | ||||||
Unilever plc - ADR (United Kingdom) |
16,550 | 665,807 | ||||||
|
|
|||||||
1,985,674 | ||||||||
|
|
|||||||
Household Products - 1.1% |
||||||||
Energizer Holdings, Inc |
2,970 | 364,271 | ||||||
|
|
|||||||
Personal Products - 1.0% |
||||||||
Beiersdorf AG (Germany)1 |
4,100 | 332,423 | ||||||
|
|
|||||||
Tobacco - 1.2% |
||||||||
Imperial Tobacco Group plc (United Kingdom)1 |
9,440 | 410,089 | ||||||
|
|
|||||||
Total Consumer Staples |
5,540,457 | |||||||
|
|
|||||||
Energy - 10.2% |
||||||||
Energy Equipment & Services - 5.9% |
||||||||
Baker Hughes, Inc. |
8,730 | 462,341 | ||||||
Cameron International Corp.* |
11,350 | 675,893 | ||||||
Schlumberger Ltd. |
6,090 | 600,839 | ||||||
Weatherford International plc - ADR* |
17,650 | 289,813 | ||||||
|
|
|||||||
2,028,886 | ||||||||
|
|
|||||||
Oil, Gas & Consumable Fuels - 4.3% |
||||||||
Apache Corp. |
3,630 | 280,236 | ||||||
Encana Corp. (Canada) |
7,200 | 134,136 | ||||||
EOG Resources, Inc. |
2,790 | 265,189 | ||||||
Hess Corp |
6,940 | 588,581 | ||||||
Range Resources Corp. |
2,880 | 196,992 | ||||||
|
|
|||||||
1,465,134 | ||||||||
|
|
|||||||
Total Energy |
3,494,020 | |||||||
|
|
|||||||
Financials - 2.4% |
||||||||
Banks - 0.7% |
||||||||
Popular, Inc.* |
7,160 | 228,261 | ||||||
|
|
|||||||
Real Estate Investment Trusts (REITS) - 1.0% |
||||||||
Digital Realty Trust, Inc |
330 | 22,767 | ||||||
Weyerhaeuser Co |
9,700 | 328,442 | ||||||
|
|
|||||||
351,209 | ||||||||
|
|
|||||||
Real Estate Management & Development - 0.7% |
||||||||
Realogy Holdings Corp.* |
6,190 | 253,852 | ||||||
|
|
|||||||
Total Financials |
833,322 | |||||||
|
|
The accompanying notes are an integral part of the financial statements.
7
Tax Managed Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Health Care - 11.4% |
||||||||
Health Care Equipment & Supplies - 1.5% |
||||||||
Intuitive Surgical, Inc.* |
550 | $ | 272,690 | |||||
Teleflex, Inc. |
2,190 | 249,923 | ||||||
|
|
|||||||
522,613 | ||||||||
|
|
|||||||
Health Care Providers & Services - 3.8% |
||||||||
DaVita HealthCare Partners, Inc.* |
7,290 | 569,130 | ||||||
Express Scripts Holding Co.* |
4,160 | 319,571 | ||||||
Fresenius Medical Care AG & Co. KGaA (Germany)1 |
2,830 | 207,715 | ||||||
HCA Holdings, Inc.* |
2,590 | 181,429 | ||||||
|
|
|||||||
1,277,845 | ||||||||
|
|
|||||||
Health Care Technology - 3.0% |
||||||||
Cerner Corp.* |
15,890 | 1,006,473 | ||||||
|
|
|||||||
Life Sciences Tools & Services - 1.0% |
||||||||
QIAGEN N.V. - ADR* |
15,000 | 351,900 | ||||||
|
|
|||||||
Pharmaceuticals - 2.1% |
||||||||
Johnson & Johnson |
2,750 | 296,395 | ||||||
Sanofi - ADR (France) |
9,270 | 428,645 | ||||||
|
|
|||||||
725,040 | ||||||||
|
|
|||||||
Total Health Care |
3,883,871 | |||||||
|
|
|||||||
Industrials - 7.5% |
||||||||
Air Freight & Logistics - 0.2% |
||||||||
C.H. Robinson Worldwide, Inc. |
1,120 | 77,515 | ||||||
|
|
|||||||
Building Products - 0.8% |
||||||||
Owens Corning |
8,710 | 279,242 | ||||||
|
|
|||||||
Industrial Conglomerates - 2.2% |
||||||||
General Electric Co |
28,410 | 733,262 | ||||||
|
|
|||||||
Machinery - 1.7% |
||||||||
Joy Global, Inc |
7,570 | 398,409 | ||||||
Xylem, Inc |
4,900 | 178,164 | ||||||
|
|
|||||||
576,573 | ||||||||
|
|
|||||||
Professional Services - 0.9% |
||||||||
Equifax, Inc. |
4,170 | 315,836 | ||||||
|
|
|||||||
Trading Companies & Distributors - 1.7% |
||||||||
Fastenal Co |
13,110 | 577,364 | ||||||
|
|
|||||||
Total Industrials |
2,559,792 | |||||||
|
|
|||||||
Information Technology - 19.2% |
||||||||
Communications Equipment - 2.5% |
||||||||
F5 Networks, Inc.* |
2,610 | 320,978 | ||||||
Juniper Networks, Inc |
13,430 | 282,970 |
The accompanying notes are an integral part of the financial statements.
8
Tax Managed Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Information Technology (continued) |
||||||||
Communications Equipment (continued) |
||||||||
Palo Alto Networks, Inc.* |
2,300 | $ | 243,110 | |||||
|
|
|||||||
847,058 | ||||||||
|
|
|||||||
Electronic Equipment, Instruments & Components - 0.9% |
||||||||
FLIR Systems, Inc. |
8,850 | 296,741 | ||||||
|
|
|||||||
Internet Software & Services - 4.2% |
||||||||
eBay, Inc.* |
11,740 | 616,350 | ||||||
Facebook, Inc. - Class A* |
1,730 | 129,733 | ||||||
Google, Inc. - Class A* |
340 | 193,076 | ||||||
Google, Inc. - Class C* |
340 | 190,087 | ||||||
LinkedIn Corp. - Class A* |
1,410 | 322,834 | ||||||
|
|
|||||||
1,452,080 | ||||||||
|
|
|||||||
IT Services - 3.9% |
||||||||
Amdocs Ltd. - ADR |
1,920 | 91,277 | ||||||
MasterCard, Inc. - Class A |
4,900 | 410,375 | ||||||
VeriFone Systems, Inc.* |
10,820 | 403,153 | ||||||
Visa, Inc. - Class A |
1,730 | 417,674 | ||||||
|
|
|||||||
1,322,479 | ||||||||
|
|
|||||||
Software - 1.8% |
||||||||
ANSYS, Inc.* |
3,830 | 300,885 | ||||||
Electronic Arts, Inc.* |
7,970 | 326,531 | ||||||
|
|
|||||||
627,416 | ||||||||
|
|
|||||||
Technology Hardware, Storage & Peripherals - 5.9% |
||||||||
Apple, Inc. |
8,680 | 937,440 | ||||||
EMC Corp |
38,230 | 1,098,348 | ||||||
|
|
|||||||
2,035,788 | ||||||||
|
|
|||||||
Total Information Technology |
6,581,562 | |||||||
|
|
|||||||
Materials - 9.5% |
||||||||
Chemicals - 5.7% |
||||||||
Monsanto Co |
7,590 | 873,154 | ||||||
The Mosaic Co. |
12,550 | 556,091 | ||||||
Potash Corp. of Saskatchewan, Inc. (Canada) |
8,480 | 289,762 | ||||||
Tronox Ltd. - Class A |
8,720 | 210,850 | ||||||
|
|
|||||||
1,929,857 | ||||||||
|
|
|||||||
Metals & Mining - 3.8% |
||||||||
Alcoa, Inc. |
78,020 | 1,307,615 | ||||||
|
|
|||||||
Total Materials |
3,237,472 | |||||||
|
|
|||||||
TOTAL COMMON STOCKS |
||||||||
(Identified Cost $25,732,224) |
32,477,925 | |||||||
|
|
The accompanying notes are an integral part of the financial statements.
9
Tax Managed Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
SHORT-TERM INVESTMENT - 5.1% |
||||||||
Dreyfus Cash Management, Inc. - Institutional Shares2, 0.03% |
||||||||
(Identified Cost $ 1,733,349) |
1,733,349 | $ | 1,733,349 | |||||
|
|
|||||||
TOTAL INVESTMENTS - 100.1% |
||||||||
(Identified Cost $ 27,465,573) |
34,211,274 | |||||||
LIABILITIES, LESS OTHER ASSETS - (0.1%) |
(29,242 | ) | ||||||
|
|
|||||||
NET ASSETS - 100% |
$ | 34,182,032 | ||||||
|
|
ADR - American Depositary Receipt
*Non-income producing security.
1A factor from a third party vendor was applied to determine the securitys fair value following the close of local trading.
2Rate shown is the current yield as of October 31, 2014.
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard & Poors, a division of The McGraw-Hill Companies, Inc. (S&P), and is licensed for use by Manning & Napier when referencing GICS sectors. Neither MSCI, S&P, nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification, nor shall any such party have any liability therefrom.
The accompanying notes are an integral part of the financial statements.
10
Tax Managed Series
Statement of Assets and Liabilities
October 31, 2014
ASSETS: |
||||
Investments, at value (identified cost $ 27,465,573) (Note 2) |
$ | 34,211,274 | ||
Dividends receivable |
22,821 | |||
Foreign tax reclaims receivable |
13,441 | |||
Receivable for fund shares sold |
574 | |||
|
|
|||
TOTAL ASSETS |
34,248,110 | |||
|
|
|||
LIABILITIES: |
||||
Accrued management fees (Note 3) |
20,719 | |||
Accrued fund accounting and administration fees (Note 3) |
7,394 | |||
Accrued transfer agent fees (Note 3) |
2,275 | |||
Accrued Chief Compliance Officer service fees (Note 3) |
407 | |||
Audit fees payable |
18,449 | |||
Printing fees payable |
9,119 | |||
Payable for fund shares repurchased |
2,947 | |||
Other payables and accrued expenses |
4,768 | |||
|
|
|||
TOTAL LIABILITIES |
66,078 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 34,182,032 | ||
|
|
|||
NET ASSETS CONSIST OF: |
||||
Capital stock |
$ | 10,344 | ||
Additional paid-in-capital |
21,764,411 | |||
Undistributed net investment income |
32,376 | |||
Accumulated net realized gain on investments |
5,630,064 | |||
Net unrealized appreciation (depreciation) on investments, foreign currency and translation of other assets and liabilities |
6,744,837 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 34,182,032 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class A |
||||
($ 34,182,032/1,034,394 shares) |
$ | 33.05 | ||
|
|
The accompanying notes are an integral part of the financial statements.
11
Tax Managed Series
Statement of Operations
For the Year Ended October 31, 2014
INVESTMENT INCOME: |
||||
Dividends (net of foreign taxes withheld, $15,835) |
$ | 450,764 | ||
|
|
|||
EXPENSES: |
||||
Management fees (Note 3) |
342,849 | |||
Fund accounting and administration fees (Note 3) |
31,464 | |||
Transfer agent fees (Note 3) |
8,598 | |||
Chief Compliance Officer service fees (Note 3) |
3,161 | |||
Directors fees (Note 3) |
1,178 | |||
Audit fees |
23,035 | |||
Custodian fees |
2,705 | |||
Miscellaneous |
43,254 | |||
|
|
|||
Total Expenses |
456,244 | |||
Less reduction of expenses (Note 3) |
(44,826 | ) | ||
|
|
|||
Net Expenses |
411,418 | |||
|
|
|||
NET INVESTMENT INCOME |
39,346 | |||
|
|
|||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: |
||||
Net realized gain on investments |
5,677,095 | |||
|
|
|||
Net change in unrealized appreciation (depreciation) on- Investments |
(1,670,096 | ) | ||
Foreign currency and translation of other assets and liabilities |
(1,262 | ) | ||
|
|
|||
(1,671,358 | ) | |||
|
|
|||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY |
4,005,737 | |||
|
|
|||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 4,045,083 | ||
|
|
The accompanying notes are an integral part of the financial statements.
12
Tax Managed Series
Statements of Changes in Net Assets
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||
OPERATIONS: |
||||||||
Net investment income |
$ | 39,346 | $ | 38,938 | ||||
Net realized gain on investments and foreign currency |
5,677,095 | 4,662,757 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency |
(1,671,358 | ) | 2,768,711 | |||||
|
|
|
|
|||||
Net increase from operations |
4,045,083 | 7,470,406 | ||||||
|
|
|
|
|||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||
From net investment income |
(12,151 | ) | (53,257 | ) | ||||
From net realized gain on investments |
(4,642,767 | ) | (1,176,954 | ) | ||||
|
|
|
|
|||||
Total distributions to shareholders |
(4,654,918 | ) | (1,230,211 | ) | ||||
|
|
|
|
|||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||
Net increase (decrease) from capital share transactions (Note 5) |
1,123,252 | (2,347,220 | ) | |||||
|
|
|
|
|||||
Net increase in net assets |
513,417 | 3,892,975 | ||||||
NET ASSETS: |
||||||||
Beginning of year |
33,668,615 | 29,775,640 | ||||||
|
|
|
|
|||||
End of year (including undistributed net investment income of $32,376 and $5,529, respectively). |
$ | 34,182,032 | $ | 33,668,615 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
13
Tax Managed Series
Financial Highlights
FOR THE YEARS ENDED | ||||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 33.95 | $ | 27.69 | $ | 24.96 | $ | 25.01 | $ | 21.32 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||
Net investment income1 |
0.04 | 0.04 | 0.03 | 0.08 | 0.06 | |||||||||||||||
Net realized and unrealized gain (loss) on investments |
3.73 | 7.52 | 2.77 | (0.06 | ) | 3.67 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
3.77 | 7.56 | 2.80 | 0.02 | 3.73 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.01 | ) | (0.06 | ) | (0.07 | ) | (0.07 | ) | (0.04 | ) | ||||||||||
From net realized gain on investments |
(4.66 | ) | (1.24 | ) | | | | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(4.67 | ) | (1.30 | ) | (0.07 | ) | (0.07 | ) | (0.04 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 33.05 | $ | 33.95 | $ | 27.69 | $ | 24.96 | $ | 25.01 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 34,182 | $ | 33,669 | $ | 29,776 | $ | 47,663 | $ | 45,276 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return2 |
12.82 | % | 28.41 | % | 11.28 | % | 0.08 | % | 17.50 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||
Net investment income |
0.11 | % | 0.13 | % | 0.12 | % | 0.29 | % | 0.28 | % | ||||||||||
Portfolio turnover |
47 | % | 56 | % | 47 | % | 57 | % | 56 | % | ||||||||||
*The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
0.13 | % | 0.15 | % | 0.10 | % | 0.04 | % | 0.14 | % |
1Calculated based on average shares outstanding during the years.
2Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
The accompanying notes are an integral part of the financial statements.
14
Tax Managed Series
Notes to Financial Statements
1. | Organization |
Tax Managed Series (the Series) is a no-load diversified series of Manning & Napier Fund, Inc. (the Fund). The Fund is organized in Maryland and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The Series investment objective is to maximize long-term growth while attempting to minimize the impact of taxes on the total return earned by shareholders.
The Funds Advisor is Manning & Napier Advisors, LLC (the Advisor). Shares of the Series are offered to investors, clients and employees of the Advisor and its affiliates. The total authorized capital stock of the Fund consists of 15 billion shares of common stock each having a par value of $0.01. As of October 31, 2014, 10.6 billion shares have been designated in total among 42 series, of which 87.5 million have been designated as Tax Managed Series Class A common stock.
2. | Significant Accounting Policies |
The following is a summary of significant accounting policies followed by the Series. The Series is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946 - Investment Companies, which is part of accounting principles generally accepted in the United States of America (GAAP).
Security Valuation
Portfolio securities, including domestic equities, foreign equities, warrants and options, listed on an exchange other than the NASDAQ Stock Market are valued at the latest quoted sales price of the exchange on which the security is primarily traded. Securities not traded on valuation date or securities not listed on an exchange are valued at the latest quoted bid price provided by the Funds pricing service. Securities listed on the NASDAQ Stock Market are valued in accordance with the NASDAQ Official Closing Price.
Short-term investments that mature in sixty days or less are valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at their net asset value per share on valuation date.
Volume and level of activity in established markets for an asset or liability are evaluated to determine whether recent transactions and quoted prices are determinative of fair value. Where there have been significant decreases in volume and level of activity, further analysis and adjustment may be necessary to estimate fair value. The Series measures fair value in these instances by the use of inputs and valuation techniques which may be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry and/or expectation of future cash flows. As a result of trading in relatively thin markets and/or markets that experience significant volatility, the prices used by the Series to value these securities may differ from the value that would be realized if these securities were sold, and the differences could be material.
Securities for which representative valuations or prices are not available from the Series pricing service may be valued at fair value as determined in good faith by the Advisor under procedures approved by and under the general supervision and responsibility of the Funds Board of Directors (the Board). Due to the inherent uncertainty of valuations of such securities, the fair value may differ significantly from the values that would have been used had a ready market for such securities existed. If trading or events occurring after the close of the principal market in which securities are traded are expected to materially affect the value of those securities, then they may be valued at their fair value, taking this trading or these events into account. In accordance with the procedures approved by the Board, the values of certain securities trading outside the U.S. were adjusted following the close of local trading using a factor from a third party vendor. The third party vendor uses statistical analyses and quantitative models, which consider among other things subsequent movement and changes in the prices of indices, securities and exchange rates in other markets, to determine the factors which are used to adjust local market prices. The value of securities used for net asset value calculation under these procedures may differ from published prices for the same securities. It is the Funds policy to classify each foreign equity security where a factor from a third party vendor is provided as a Level 2 security.
15
Tax Managed Series
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Valuation (continued)
Various inputs are used in determining the value of the Series assets or liabilities carried at fair value. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical assets and liabilities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 includes significant unobservable inputs (including the Series own assumptions in determining the fair value of investments). A financial instruments level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuation levels used for major security types as of October 31, 2014 in valuing the Series assets or liabilities carried at fair value:
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Equity securities: |
||||||||||||||||
Consumer Discretionary |
$ | 6,347,429 | $ | 6,347,429 | $ | | $ | | ||||||||
Consumer Staples |
5,540,457 | 2,804,280 | 2,736,177 | | ||||||||||||
Energy |
3,494,020 | 3,494,020 | | | ||||||||||||
Financials |
833,322 | 833,322 | | | ||||||||||||
Health Care |
3,883,871 | 3,676,156 | 207,715 | | ||||||||||||
Industrials |
2,559,792 | 2,559,792 | | | ||||||||||||
Information Technology |
6,581,562 | 6,581,562 | | | ||||||||||||
Materials |
3,237,472 | 3,237,472 | | | ||||||||||||
Mutual Fund |
1,733,349 | 1,733,349 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 34,211,274 | $ | 31,267,382 | $ | 2,943,892 | $ | | ||||||||
|
|
|
|
|
|
|
|
Please see the Investment Portfolio for foreign securities where a factor from a third party vendor was applied to determine the securitys fair value following the close of local trading. Such securities are included in Level 2 in the table above.
There were no Level 3 securities held by the Series as of October 31, 2013 or October 31, 2014.
The Funds policy is to recognize transfers in and transfers out of the valuation levels as of the beginning of the reporting period. There were no transfers between Level 1 and Level 2 during the year ended October 31, 2014.
Security Transactions, Investment Income and Expenses
Security transactions are accounted for on trade date. Dividend income is recorded on the ex-dividend date, except that if the ex-dividend date has passed, certain dividends from foreign securities are recorded as soon as the Series is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Interest income, including amortization of premium and accretion of discounts using the effective interest method, is earned from settlement date and accrued daily.
Expenses are recorded on an accrual basis. Most expenses of the Fund can be attributed to a specific series. Expenses which cannot be directly attributed are apportioned among the series in the Fund in such a manner as deemed equitable by the Funds Board, taking into consideration, among other things, the nature and type of expense.
The Series uses the identified cost method for determining realized gain or loss on investments for both financial statement and federal income tax reporting purposes.
Foreign Currency Translation
The books and records of the Series are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the current exchange rates. Purchases and sales of investment securities and income and expenses are translated on the respective dates of such transactions. The Series does not isolate realized and
16
Tax Managed Series
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Foreign Currency Translation (continued)
unrealized gains and losses attributable to changes in the exchange rates from gains and losses that arise from changes in the fair value of investments. Such fluctuations are included with net realized and unrealized gain or loss on investments. Net realized foreign currency gains and losses represent foreign currency gains and losses between trade date and settlement date on securities transactions, gains and losses on disposition of foreign currencies and the difference between the amount of income and foreign withholding taxes recorded on the books of the Series and the amounts actually received or paid.
Federal Taxes
The Series policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. The Series is not subject to federal income tax or excise tax to the extent that the Series distributes to shareholders each year its taxable income, including any net realized gains on investments, in accordance with requirements of the Internal Revenue Code. Accordingly, no provision for federal income tax or excise tax has been made in the financial statements.
Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is more likely than not to be sustained assuming examination by taxing authorities. At October 31, 2014, the Series has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns.
The Series files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions, as required. No income tax returns are currently under investigation. The statute of limitations on the Series tax returns remains open for the years ended October 31, 2011 through October 31, 2014. The Series is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Foreign Taxes
Based on the Series understanding of the tax rules and rates related to income, gains and currency purchase/repatriation transactions for foreign jurisdictions in which it invests, the Series will provide for foreign taxes, and where appropriate, deferred foreign tax.
Distributions of Income and Gains
Distributions to shareholders of net investment income and net realized gains are made annually. An additional distribution may be necessary to avoid taxation of the Series. Distributions are recorded on the ex-dividend date.
Indemnifications
The Funds organizational documents provide former and current directors and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
3. | Transactions with Affiliates |
The Fund has an Investment Advisory Agreement (the Agreement) with the Advisor, for which the Series pays a fee, computed daily and payable monthly, at an annual rate of 1.00% of the Series average daily net assets.
17
Tax Managed Series
Notes to Financial Statements (continued)
3. | Transactions with Affiliates (continued) |
Under the Agreement, personnel of the Advisor provide the Series with advice and assistance in the choice of investments and the execution of securities transactions, and otherwise maintain the Series organization. The Advisor also provides the Fund with necessary office space and fund administration and support services. The salaries of all officers of the Fund (except a percentage of the Funds Chief Compliance Officers salary, which is paid by the Fund), and of all Directors who are affiliated persons of the Fund, or of the Advisor, and all personnel of the Fund, or of the Advisor, performing services relating to research, statistical and investment activities, are paid by the Advisor. Each non-affiliated Director receives an annual stipend, which is allocated among all the active series of the Fund. In addition, these Directors also receive a fee per Board meeting attended plus a fee for each committee meeting attended and are reimbursed for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings. The Fund also has an Audit Committee Chair, who receives an additional annual stipend for this role.
The Advisor has contractually agreed, until at least February 29, 2016, to waive its management fee and, if necessary, pay other operating expenses of the Series in order to maintain total direct annual fund operating expenses for the Series at no more than 1.20% of average daily net assets each year. Accordingly, the Advisor waived fees of $44,826 for the year ended October 31, 2014, which is included as a reduction of expenses on the Statement of Operations. The Advisor is not eligible to recoup any expenses that have been waived or reimbursed in prior years.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate of the Advisor, acts as distributor for the Funds shares. The services of Manning & Napier Investor Services, Inc. are provided at no additional cost to the Series.
The Advisor has agreements with BNY Mellon Investment Servicing (U.S.) Inc. (BNY) under which BNY serves as sub-accountant services agent and sub-transfer agent. The Fund pays the Advisor an annual fee related to fund accounting and administration of 0.0175% on the first $3 billion of average daily net assets (excluding Target Series and Strategic Income Series); 0.015% on the next $3 billion of average daily net assets (excluding Target Series and Strategic Income Series); and 0.01% of the average daily net assets in excess of $6 billion (excluding Target Series and Strategic Income Series); plus a base fee of $25,500 per series. Transfer Agent fees are charged to the Fund on a per account basis. Additionally, certain transaction and cusip-based fees and out-of-pocket expenses, including charges for reporting relating to the Funds compliance program, are charged. Effective October 1, 2012, the aforementioned agreements were modified to reduce the annual fee related to fund accounting and administration, as well as transfer agent fees, by 10%, excluding out-of-pocket expenses, until at least October 1, 2015.
Expenses not directly attributable to a series are allocated based on each series relative net assets or number of accounts, depending on the expense.
4. | Purchases and Sales of Securities |
For the year ended October 31, 2014, purchases and sales of securities, other than U.S. Government securities and short-term securities, were $15,688,842 and $20,087,332, respectively. There were no purchases or sales of U.S. Government securities.
5. | Capital Stock Transactions |
Transactions in shares of Tax Managed Series were:
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Sold |
134,805 | $ | 4,412,182 | 162,031 | $ | 4,917,681 | ||||||||||
Reinvested |
152,482 | 4,482,969 | 42,834 | 1,174,066 | ||||||||||||
Repurchased |
(244,469 | ) | (7,771,899 | ) | (288,508 | ) | (8,438,967 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
42,818 | $ | 1,123,252 | (83,643 | ) | $ | (2,347,220 | ) | ||||||||
|
|
|
|
|
|
|
|
18
Tax Managed Series
Notes to Financial Statements (continued)
5. | Capital Stock Transactions (continued) |
At October 31, 2014, two shareholder accounts owned 405,133 shares of the Series (39.2% of shares outstanding) valued at $13,389,659. Investment activities of these shareholders may have a material effect on the Series.
6. | Financial Instruments |
The Series may trade in instruments including written and purchased options, forward foreign currency exchange contracts and futures contracts and other derivatives in the normal course of investing activities to assist in managing exposure to various market risks. The Series may be subject to various elements of risk, which may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. These risks include: the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index; counterparty credit risk related to over the counter derivative counterparties failure to perform under contract terms; liquidity risk related to the lack of a liquid market for these contracts allowing the fund to close out its position(s); and documentation risk relating to disagreement over contract terms. No such investments were held by the Series as of October 31, 2014.
7. | Foreign Securities |
Investing in securities of foreign companies and foreign governments involves special risks and considerations not typically associated with investing in securities of domestic companies and the U.S. Government. These risks include revaluation of currencies and future adverse political and economic developments. Moreover, securities of foreign companies and foreign governments and their markets may be less liquid and their prices more volatile than those of comparable domestic companies and the U.S. Government.
8. | Federal Income Tax Information |
The amount and characterization of certain income and capital gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments in the timing of the recognition of net investment income or gains and losses, including losses deferred due to wash sales and foreign currency gains and losses. The Series may periodically make reclassifications among its capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations, without impacting the Series net asset value. For the fiscal year ended October 31, 2014, amounts were reclassified within the capital accounts to reduce Undistributed Net Investment Income by $348 and increase Accumulated Net Realized Gain on Investments by $348. Any such reclassifications are not reflected in the financial highlights.
The tax character of distributions paid were as follows:
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||
Ordinary income |
$ | 11,339 | $ | 53,257 | ||||
Long-term capital gains |
4,643,579 | 1,176,954 |
At October 31, 2014, the tax basis of components of distributable earnings and the net unrealized appreciation based on identified cost of investments for federal income tax purposes were as follows:
19
Tax Managed Series
Report of Independent Registered Public Accounting Firm
To the Board of Directors of Manning & Napier Fund, Inc. and Shareholders of Tax Managed Series:
In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Tax Managed Series (a series of Manning & Napier Fund, Inc., hereafter referred to as the Series) at October 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Series management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
New York, New York
December 19, 2014
20
Tax Managed Series
Supplemental Tax Information
(unaudited)
All reportings are based on financial information available as of the date of this annual report and, accordingly, are subject to change.
For federal income tax purposes, the Series reports for the current fiscal year $454,076 or, if different, the maximum amount allowable under the tax law, as qualified dividend income.
For corporate shareholders, the percentage of investment income (dividend income plus short-term gains, if any) that qualifies for the dividends received deduction for the current fiscal year is 100%.
The Series designates $5,961,293 as Long-Term Capital Gain dividends pursuant to Section 852(b) of the Code for the fiscal year ended October 31, 2014.
21
Tax Managed Series
Directors and Officers Information
(unaudited)
The Statement of Additional Information provides additional information about the Funds directors and officers and can be obtained without charge by calling 1-800-466-3863, at www.manningnapieradvisors.com, or on the EDGAR Database on the SEC Internet web site (http:// www.sec.gov). The following chart shows certain information about the Funds officers and directors, including their principal occupations during the last five years. Unless specific dates are provided, the individuals have held the listed positions for longer than five years.
Interested Director/Officer | ||
Name: | B. Reuben Auspitz* | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 67 | |
Current Position(s) Held with Fund: | Principal Executive Officer, President, Chairman & Director | |
Term of Office1 & Length of Time Served: | Indefinite - Director since 1984; Principal Executive Officer since 2002; | |
President since 2004; Vice President 1984-2003. | ||
Principal Occupation(s) During Past 5 Years: | Executive Vice President since 1993; Chief Compliance Officer since 2004; Vice Chairman since June 2010; Co-Executive Director from 2002-2010 - Manning & Napier Advisors, LLC; President, Director - Manning & Napier Investor Services, Inc. | |
Holds or has held one or more of the following titles for various subsidiaries and affiliates: President, Vice President, Director, Chairman, Treasurer, Chief Compliance Officer or Member. | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Independent Directors | ||
Name: | Stephen B. Ashley | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 74 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1996 | |
Principal Occupation(s) During Past 5 Years: | Chairman, Director, President & Chief Executive Officer, The Ashley Group (property management and investment). Director 1995-2008 and Chairman (non-executive) 2004-2008 - Fannie Mae (mortgage) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Fannie Mae (1995-2008) | |
The Ashley Group (1995-2008) | ||
Genesee Corporation (1987-2007) |
Name: | Paul A. Brooke | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 68 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 2007 | |
Principal Occupation(s) During Past 5 Years: | Chairman & CEO (2005-2009) - Alsius Corporation (investments); | |
Managing Member, PMSV Holdings LLC (investments) since 1991; | ||
Managing Member, Venbio (investments) since 2010. | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Incyte Corp. (2000-present) | |
ViroPharma, Inc. (2000-present) | ||
HLTH Corp (WebMD) (2000-2010) | ||
Cheyne Capital International (2000-present) | ||
MPM Bio-equities (2000-2009) | ||
GMP Companies (2000-present) | ||
HoustonPharma (2000-2009) | ||
Cytos Biotechnology Ltd. (2012-present) |
22
Tax Managed Series
Directors and Officers Information
(unaudited)
Independent Directors (continued)
Name: | Peter L. Faber | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 76 | |
Current Position(s) Held with Fund: | Director, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1987 | |
Principal Occupation(s) During Past 5 Years: | Senior Counsel (2006-2012), Partner (1995-2006 & 2013-present) - McDermott, Will & Emery LLP (law firm) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Partnership for New York City, Inc. (non-profit) (1989-2010) | |
New York Collegium (non-profit) (2004-2011) | ||
Boston Early Music Festival (non-profit) |
Name: | Harris H. Rusitzky | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 79 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1985 | |
Principal Occupation(s) During Past 5 Years: | President, The Greening Group (business consultants) since 1994; | |
Partner, The Restaurant Group (restaurants) since 2006 | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Name: | Chester N. Watson | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 64 | |
Current Position(s) Held with Fund: | Director, Audit Committee Chairman, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 2012 | |
Principal Occupation(s) During Past 5 Years: | General Auditor (2003-2011) - General Motors Company (auto manufacturer) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Officers | ||
Name: | Jeffrey S. Coons, Ph.D., CFA | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 51 | |
Current Position(s) Held with Fund: | Vice President | |
Term of Office1 & Length of Time Served: | Since 2004 | |
Principal Occupation(s) During Past 5 Years: | President since 2010, Co-Director of Research since 2002 - Manning & Napier Advisors, LLC | |
Holds one or more of the following titles for various subsidiaries and affiliates: President, Director, Treasurer or Senior Trust Officer. | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Name: | Elizabeth Craig | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 27 | |
Current Position(s) Held with Fund: | Assistant Corporate Secretary | |
Term of Office1 & Length of Time Served: | Since 2011 | |
Principal Occupation(s) During Past 5 Years: | Mutual Fund Compliance Specialist since 2009 - Manning & Napier Advisors, LLC | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
23
Tax Managed Series
Directors and Officers Information
(unaudited)
Officers (continued) | ||
Name: | Christine Glavin | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 48 | |
Current Position(s) Held with Fund: | Principal Financial Officer, Chief Financial Officer | |
Term of Office1 & Length of Time Served: | Principal Financial Officer since 2002; Chief Financial Officer since 2001 | |
Principal Occupation(s) During Past 5 Years: | Director of Fund Reporting since 2011; Fund Reporting Manager (1997-2011)Manning & Napier Advisors, LLC; Assistant Treasurer since 2008Exeter Trust Company | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Name: | Jodi L. Hedberg | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 46 | |
Current Position(s) Held with Fund: | Corporate Secretary, Chief Compliance Officer, Anti-Money Laundering Compliance Officer | |
Term of Office1 & Length of Time Served: | Corporate Secretary since 1997; Chief Compliance Officer since 2004; | |
Anti-Money Laundering Compliance Officer | ||
Principal Occupation(s) During Past 5 Years: | Director of Compliance, Manning & Napier Advisors, LLC and affiliates since 1990 (title change in 2005 from Compliance Manager to Director of Compliance); Corporate Secretary, Manning & Napier Investor Services, Inc. since 2006 | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Name: | Richard Yates | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 49 | |
Current Position(s) Held with Fund: | Chief Legal Officer | |
Term of Office1 & Length of Time Served: | Chief Legal Officer since 2004 | |
Principal Occupation(s) During Past 5 Years: | Counsel - Manning & Napier Advisors, LLC and affiliates since 2000; | |
Holds one or more of the following titles for various affiliates; Director or Corporate Secretary | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
* Interested Director, within the meaning of the Investment Company Act of 1940 by reason of his position with the Funds investment advisor and distributor. Mr. Auspitz serves as the Executive Vice President and Director, Manning & Napier Advisors, LLC and President and Director, Manning & Napier Investor Services, Inc., the Funds distributor.
1 The term of office of all officers shall be one year and until their respective successors are chosen and qualified, or his or her earlier resignation or removal as provided in the Funds By-Laws.
24
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25
Tax Managed Series
Literature Requests
(unaudited)
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the Securities and Exchange | ||||
Commissions (SEC) web site | http://www.sec.gov |
Proxy Voting Record
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
Quarterly Portfolio Holdings
The Series complete schedule of portfolio holdings for the 1st and 3rd quarters of each fiscal year are provided on Form N-Q, and are available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
The Series Form N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Prospectus and Statement of Additional Information (SAI)
For more information about any of the Manning & Napier Fund, Inc. Series, you may obtain a prospectus and SAI at www.manning-napier.com or by calling (800) 466-3863. Before investing, carefully consider the objectives, risks, charges and expenses of the investment and read the prospectus carefully as it contains this and other information about the investment company. In addition, this information can be found on the SECs web site, http://www.sec.gov.
Additional information available at www.manning-napier.com
1. Fund Holdings - Month-End
2. Fund Holdings - Quarter-End
3. Shareholder Report - Annual
4. Shareholder Report - Semi-Annual
The Fund also offers electronic notification or e-delivery when certain documents are available on-line to be downloaded or reviewed. Direct shareholders can elect to receive electronic notification when shareholder reports, prospectus updates, and/or statements are available. If you do not currently have on-line access to your account, you can establish access by going to www.manning-napier.com, click on Login in the top corner of the page, and follow the prompts to self-enroll. Once enrolled, you can set your electronic notification preferences by clicking on the Account Options tab located within the green toolbar and then select E-Delivery Option. Should you have any questions on either how to establish on-line access or how to update your account settings, please contact Investor Services at 1-800-466-3863.
The Manning & Napier Fund, Inc. is managed by Manning & Napier Advisors, LLC. Manning & Napier Investor Services, Inc., an affiliate of Manning & Napier Advisors, LLC, is the distributor of the Fund shares.
MNTAX-10/14-AR
Management Discussion and Analysis
(unaudited)
Dear Shareholders:
The global economy remained on a slow growth path during the past year. Developed economies continued to support economic growth through accommodative monetary policy, and as the year progressed, central banks in areas such as Europe and Japan loosened policy further to combat persistent growth headwinds. Meanwhile, the U.S. economy slowed as it meandered through a very harsh winter, but recovered quickly during the spring and summer months of 2014. The Federal Reserve completed its third quantitative easing program, and market expectations for subsequent adjustment to domestic monetary policy during 2015 helped fuel a meaningful increase in the value of the dollar relative to other global currencies during the period. With the U.S. economy making positive strides, its equity markets generally performed strongly as well. Global markets were broadly weaker, although pockets of strength existed in certain emerging market countries where encouraging political developments and reform momentum helped lift investor sentiment. Looking ahead, we expect the slow global growth environment to remain in place for the foreseeable future.
As always, we appreciate your business.
Sincerely,
Manning & Napier Advisors, LLC
1
Fund Commentary
(unaudited)
Investment Objective
To provide capital growth and manage risk for investors planning to retire (or meet another investment goal) in or around the year indicated in the funds name.
The Target Series include eleven distinct mutual funds, each of which is managed to a designated target date. The investment objective of each Series is strategically allocated to become increasingly conservative as the specified target date approaches. The Target 2050, 2040, 2030, 2020, 2010 and Target Income Series were launched on March 28, 2008, and the Target 2055, 2045, 2035, 2025 and Target 2015 Series were launched on June 25, 2012.
Performance Commentary
U.S. equity markets generally delivered positive absolute returns for the twelve-month period ended October 31, 2014. The S&P 500 Total Return Index gained 17.25%. In contrast, global equity market performance was weaker. The broad MSCI ACWI ex USA Index (ACWIxUS) was largely flat, returning 0.06%. Meanwhile, bond markets as represented by the Barclays U.S. Aggregate Bond Index were positive, returning 4.14%. Each share class of the Target Series provided positive absolute returns, but underperformed its respective blended benchmark on a relative basis during the one year period. The only exception to this was the Target Income Series Class I, which modestly outperformed its blended benchmark.
Among key drivers of each Series underperformance relative to their blended benchmarks during the one year period were overall fixed income selection and equity sector positioning. Additionally, stock selection in Health Care and Consumer Staples challenged relative returns, as did the Series overweight allocations to Energy and Consumer Discretionary sectors relative to the benchmark.
Overall asset allocation positively contributed to relative returns, as each of the Series were more heavily allocated to stocks than their benchmarks during a year in which stocks generally outperformed bonds. This offset a portion of the Series relative underperformance. Stock selection in the Information Technology and Materials sectors also aided relative returns. Relative to their benchmarks, each Series overweight to Information Technology was a notable positive contributor to relative performance as well.
Regarding current portfolio positioning, in the equity portion of each Series we are focused on finding companies with growth drivers that are not tied to the broad economy. We believe the key to generating attractive returns in the prevailing environment is the ability to identify individual businesses that can innovate and disrupt the competitive environment in which they operate. This involves finding businesses that are generating growth by creating new markets, expanding existing markets, or simply by taking share from their rivals.
In fixed income markets, we continue to believe that a more defensive fixed income posture is warranted, which is how we would characterize our current fixed income positioning. Specifically, given current yield levels and the potential for rising interest rates, we are finding a better risk/reward trade-off in shorter-term bonds. Businesses should benefit as economic conditions continue to improve, enhancing the attractiveness of the corporate sector. This sector has been a primary focus area in the Series over the past few years, and we believe it will remain an attractive area going forward.
As conditions in some of the worlds most important economic regions appear to be at different stages in the economic cycle, we believe investors should expect the monetary policies of major central banks which have remained highly accommodative across the board in the developed world for a period of years to diverge at some point in the future. This could lead to new bouts of volatility in financial markets. Given the lack of extremes in the market today, we would view the resurgence of volatility as a buying opportunity, but being selective is critical. Broadly speaking, valuations in the developed world are neutral at best, whereas valuations in select emerging markets are relatively more attractive. Shareholders should expect us to pursue areas of global markets where we see a compelling combination of attractive business fundamentals and long-term appreciation potential. As has been the case for more than 40 years, Manning & Napier remains committed to helping investors achieve their financial goals through an active, flexible approach to investment management.
2
Fund Commentary
(unaudited)
Performance Commentary (continued)
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than that quoted; investors can obtain the most recent month-end performance at www.manning-napier.com or by calling (800) 466-3863.
Each Manning & Napier Fund, Inc. Target Series is invested in one or two of four proprietary lifestyle funds, the Manning & Napier Fund, Inc. Pro-Blend® Series, based on the Target Series becoming increasingly conservative over time. Because the underlying funds invest in both stocks and bonds, the value of your investment will fluctuate in response to stock market movements and changes in interest rates. Investing in target date funds will also involve a number of other risks, including issuer-specific risk, foreign investment risk, and small-cap/mid-cap risk, as the underlying investments change over time. Principal value is not guaranteed at any time, including at the target date (the approximate year when an investor plans to stop contributions and start periodic withdrawals).
There is an inverse relationship between bond prices and interest rates; as interest rates rise, bond prices (and therefore the value of bond funds) fall. Likewise, as interest rates fall, bond prices and the value of bond funds rise. Investments in higher-yielding, lower-rated securities involve additional risks, including a higher risk of default and loss of principal.
3
Performance Update - Target Income Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||||||
ONE YEAR1 |
FIVE YEAR |
SINCE INCEPTION2 |
||||||||||
Manning & Napier Fund, Inc. - Target Income Series - Class K3 |
5.35 | % | 6.80 | % | 5.73 | % | ||||||
Manning & Napier Fund, Inc. - Target Income Series - Class R3 |
5.00 | % | 6.51 | % | 5.45 | % | ||||||
Manning & Napier Fund, Inc. - Target Income Series - Class I3 |
5.59 | % | 7.05 | % | 6.00 | % | ||||||
Barclays U.S. Intermediate Aggregate Bond Index4 |
2.90 | % | 3.62 | % | 4.11 | % | ||||||
Standard & Poors (S&P) Target Date Retirement Income Index5 |
5.48 | % | 7.09 | % | 4.82 | % | ||||||
Income Composite Benchmark6 |
5.52 | % | 6.60 | % | 5.59 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Target Income Series - Class K from its inception2 (3/28/08) to present (10/31/14) to the Barclays U.S. Intermediate Aggregate Bond Index, S&P Target Date Retirement Income Index and the Income Composite Benchmark.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from March 28, 2008, the Series inception date. The Barclays U.S. Intermediate Aggregate Bond Index only publishes month-end numbers; therefore, performance numbers for the Index are calculated from March 31, 2008.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.30% for Class K, 0.55% for Class R and 0.05% for Class I. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 0.42% for Class K, 0.67% for Class R and 0.17% for Class I for the year ended October 31, 2014.
4The Barclays U.S Intermediate Aggregate Bond Index is an unmanaged, market-value weighted index of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities greater than one year but less than ten years. Index returns do not reflect any fees or expenses. Index returns provided by Interactive Data.
5The S&P Target Date Index Series is a series of unmanaged indices that reflect the market consensus for asset allocations for different target date horizons. The asset class exposure for each index is represented by exchange traded funds (ETFs). Asset class weights are established annually and rebalanced monthly. Prior to 02/26/2010, the indices were rebalanced annually. The Index returns shown are the Gross Return series, which provide benchmarks free of underlying ETF expenses by adjusting the Total Return series (which assume the reinvestment of dividends) by an assumed weighted average ETF expense ratio. Index returns provided by Bloomberg. Mid-month performance is not available for the benchmark. Performance shown is from the first of the month following the corresponding Series inception date. S&P Dow Jones Indices LLC, a subsidiary of the McGraw Hill Financial, Inc., is the publisher of various index based data products and services and has licensed certain of its products and services for use by Manning & Napier. Copyright © 2014 by S&P Dow Jones Indices LLC and/or its affiliates. All rights reserved. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none of these parties shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
6The Target Composite Benchmark represents the performance of the target date funds asset classes according to their respective weightings, as adjusted over time to reflect the target date funds increasingly conservative asset allocations. The following indices are used to calculate the Target Composite Benchmarks: Russell 3000® Index (Russell 3000), MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Aggregate Bond Index (BAB) and/or Barclays U.S. Intermediate Aggregate Bond Index (BIAB). Russell 3000 is an
4
Performance Update - Target Income Series
(unaudited)
unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns are net of withholding taxes. They assume daily reinvestment of net dividends thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB and BIAB are both unmanaged, market value-weighted indices of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities. BAB includes maturities of one year or more; BIAB includes maturities of greater than one year but less than ten years. BAB and BIAB returns provided by Interactive Data. Indices returns do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the target date funds asset allocation will vary over time, the composition of the target date portfolio may not match the composition of the comparative Target Composite Benchmark. Effective March 1, 2014, the Series changed the benchmark against which it measures its performance from the Barclays U.S. Intermediate Aggregate Bond Index to the S&P Target Date Retirement Income Index. Series management believes the S&P Target Date Retirement Income Index more accurately reflects the investment strategies of the Series.
5
Performance Update - Target 2010 Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||||||
ONE YEAR1 |
FIVE YEAR |
SINCE INCEPTION2 |
||||||||||
Manning & Napier Fund, Inc. - Target 2010 - Class K3 |
5.56 | % | 7.74 | % | 5.51 | % | ||||||
Manning & Napier Fund, Inc. - Target 2010 - Class R3 |
5.31 | % | 7.48 | % | 5.26 | % | ||||||
Manning & Napier Fund, Inc. - Target 2010 - Class I3 |
5.70 | % | 7.98 | % | 5.76 | % | ||||||
Barclays U.S. Aggregate Bond Index4 |
4.14 | % | 4.22 | % | 4.61 | % | ||||||
S&P Target Date 2010 Index5 |
6.25 | % | 8.28 | % | 5.37 | % | ||||||
2010 Composite Benchmark6 |
6.02 | % | 7.78 | % | 5.63 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Target 2010 Series - Class K from its inception2 (3/28/08) to present (10/31/14) to the Barclays U.S. Aggregate Bond Index, S&P Target Date 2010 Index and the 2010 Composite Benchmark.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from March 28, 2008, the Series inception date. The Barclays U.S. Aggregate Bond Index only publishes month-end numbers; therefore, performance numbers for the Index are calculated from March 31, 2008.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.30% for Class K, 0.55% for Class R and 0.05% for Class I. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 0.50% for Class K, 0.75% for Class R and 0.25% for Class I for the year ended October 31, 2014.
4The Barclays U.S. Aggregate Bond Index is an unmanaged, market-value weighted index of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more. Index returns do not reflect any fees or expenses. Index returns provided by Interactive Data.
5The S&P Target Date Index Series is a series of unmanaged indices that reflect the market consensus for asset allocations for different target date horizons. The asset class exposure for each index is represented by exchange traded funds (ETFs). Asset class weights are established annually and rebalanced monthly. Prior to 02/26/2010, the indices were rebalanced annually. The Index returns shown are the Gross Return series, which provide benchmarks free of underlying ETF expenses by adjusting the Total Return series (which assume the reinvestment of dividends) by an assumed weighted average ETF expense ratio. Index returns provided by Bloomberg. Mid-month performance is not available for the benchmark. Performance shown is from the first of the month following the corresponding Series inception date. S&P Dow Jones Indices LLC, a subsidiary of the McGraw Hill Financial, Inc., is the publisher of various index based data products and services and has licensed certain of its products and services for use by Manning & Napier. Copyright © 2014 by S&P Dow Jones Indices LLC and/or its affiliates. All rights reserved. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none of these parties shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
6The Target Composite Benchmark represents the performance of the target date funds asset classes according to their respective weightings, as adjusted over time to reflect the target date funds increasingly conservative asset allocations. The following indices are used to calculate the Target Composite Benchmarks: Russell 3000® Index (Russell 3000), MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Aggregate Bond Index (BAB) and/or Barclays U.S. Intermediate Aggregate Bond Index (BIAB). Russell 3000 is an
6
Performance Update - Target 2010 Series
(unaudited)
unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns are net of withholding taxes. They assume daily reinvestment of net dividends thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB and BIAB are both unmanaged, market value-weighted indices of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities. BAB includes maturities of one year or more; BIAB includes maturities of greater than one year but less than ten years. BAB and BIAB returns provided by Interactive Data. Indices returns do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the target date funds asset allocation will vary over time, the composition of the target date portfolio may not match the composition of the comparative Target Composite Benchmark. Effective March 1, 2014, the Series changed the benchmark against which it measures its performance from the Barclays U.S. Aggregate Bond Index to the S&P Target Date 2010 Index. Series management believes the S&P Target Date 2010 Index more accurately reflects the investment strategies of the Series.
7
Performance Update - Target 2015 Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||
ONE YEAR1 |
SINCE INCEPTION2 |
|||||||
Manning & Napier Fund, Inc. - Target 2015 - Class K3 |
5.45 | % | 10.58 | % | ||||
Manning & Napier Fund, Inc. - Target 2015 - Class R3 |
5.22 | % | 10.45 | % | ||||
Manning & Napier Fund, Inc. - Target 2015 - Class I3 |
5.67 | % | 10.88 | % | ||||
Barclays U.S. Aggregate Bond Index4 |
4.14 | % | 2.05 | % | ||||
S&P Target Date 2015 Index5 |
7.08 | % | 10.01 | % | ||||
2015 Composite Benchmark6 |
7.41 | % | 8.88 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Target 2015 Series - Class K from its inception2 (6/25/12) to present (10/31/14) to the Barclays U.S. Aggregate Bond Index, S&P Target Date 2015 Index and the 2015 Composite Benchmark.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from June 25, 2012, the Series inception date. The Barclays U.S. Aggregate Bond Index only publishes month-end numbers; therefore, performance numbers for the Index are calculated from June 30, 2012.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.30% for Class K, 0.55% for Class R and 0.05% for Class I. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 1.71% for Class K, 2.02% for Class R and 1.51% for Class I for the year ended October 31, 2014.
4The Barclays U.S. Aggregate Bond Index is an unmanaged, market-value weighted index of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more. Index returns do not reflect any fees or expenses. Index returns provided by Interactive Data.
5The S&P Target Date Index Series is a series of unmanaged indices that reflect the market consensus for asset allocations for different target date horizons. The asset class exposure for each index is represented by exchange traded funds (ETFs). Asset class weights are established annually and rebalanced monthly. Prior to 02/26/2010, the indices were rebalanced annually. The Index returns shown are the Gross Return series, which provide benchmarks free of underlying ETF expenses by adjusting the Total Return series (which assume the reinvestment of dividends) by an assumed weighted average ETF expense ratio. Index returns provided by Bloomberg. Mid-month performance is not available for the benchmark. Performance shown is from the first of the month following the corresponding Series inception date. S&P Dow Jones Indices LLC, a subsidiary of the McGraw Hill Financial, Inc., is the publisher of various index based data products and services and has licensed certain of its products and services for use by Manning & Napier. Copyright © 2014 by S&P Dow Jones Indices LLC and/or its affiliates. All rights reserved. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none of these parties shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
8
Performance Update - Target 2015 Series
(unaudited)
6The Target Composite Benchmark represents the performance of the target date funds asset classes according to their respective weightings, as adjusted over time to reflect the target date funds increasingly conservative asset allocations. The following indices are used to calculate the Target Composite Benchmarks: Russell 3000® Index (Russell 3000), MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Aggregate Bond Index (BAB) and/or Barclays U.S. Intermediate Aggregate Bond Index (BIAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns are net of withholding taxes. They assume daily reinvestment of net dividends thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB and BIAB are both unmanaged, market value-weighted indices of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities. BAB includes maturities of one year or more; BIAB includes maturities of greater than one year but less than ten years. BAB and BIAB returns provided by Interactive Data. Indices returns do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the target date funds asset allocation will vary over time, the composition of the target date portfolio may not match the composition of the comparative Target Composite Benchmark. Effective March 1, 2014, the Series changed the benchmark against which it measures its performance from the Barclays U.S. Aggregate Bond Index to the S&P Target Date 2015 Index. Series management believes the S&P Target Date 2015 Index more accurately reflects the investment strategies of the Series.
9
Performance Update - Target 2020 Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||||||
ONE YEAR1 |
FIVE YEAR |
SINCE INCEPTION2 |
||||||||||
Manning & Napier Fund, Inc. - Target 2020 Series - Class K3 |
6.04 | % | 9.43 | % | 6.10 | % | ||||||
Manning & Napier Fund, Inc. - Target 2020 Series - Class R3 |
5.75 | % | 9.15 | % | 5.80 | % | ||||||
Manning & Napier Fund, Inc. - Target 2020 Series - Class I3 |
6.37 | % | 9.71 | % | 6.37 | % | ||||||
Barclays U.S. Aggregate Bond Index4 |
4.14 | % | 4.22 | % | 4.61 | % | ||||||
S&P Target Date 2020 Index5 |
7.71 | % | 10.32 | % | 6.17 | % | ||||||
2020 Composite Benchmark6 |
7.72 | % | 9.25 | % | 6.03 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Target 2020 Series - Class K from its inception2 (3/28/08) to present (10/31/14) to the Barclays U.S. Aggregate Bond Index, S&P Target Date 2020 Index and the 2020 Composite Benchmark.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from March 28, 2008, the Series inception date. The Barclays U.S. Aggregate Bond Index only publishes month-end numbers; therefore, performance numbers for the Index are calculated from March 31, 2008.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.30% for Class K, 0.55% for Class R and 0.05% for Class I. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 0.33% for Class K, 0.58% for Class R and 0.08% for Class I for the year ended October 31, 2014.
4The Barclays U.S. Aggregate Bond Index is an unmanaged, market-value weighted index of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more. Index returns do not reflect any fees or expenses. Index returns provided by Interactive Data.
5The S&P Target Date Index Series is a series of unmanaged indices that reflect the market consensus for asset allocations for different target date horizons. The asset class exposure for each index is represented by exchange traded funds (ETFs). Asset class weights are established annually and rebalanced monthly. Prior to 02/26/2010, the indices were rebalanced annually. The Index returns shown are the Gross Return series, which provide benchmarks free of underlying ETF expenses by adjusting the Total Return series (which assume the reinvestment of dividends) by an assumed weighted average ETF expense ratio. Index returns provided by Bloomberg. Mid-month performance is not available for the benchmark. Performance shown is from the first of the month following the corresponding Series inception date. S&P Dow Jones Indices LLC, a subsidiary of the McGraw Hill Financial, Inc., is the publisher of various index based data products and services and has licensed certain of its products and services for use by Manning & Napier. Copyright © 2014 by S&P Dow Jones Indices LLC and/or its affiliates. All rights reserved. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none of these parties shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
6The Target Composite Benchmark represents the performance of the target date funds asset classes according to their respective weightings, as adjusted over time to reflect the target date funds increasingly conservative asset allocations. The following indices are used to calculate the Target Composite Benchmarks: Russell 3000® Index (Russell 3000),
10
Performance Update - Target 2020 Series
(unaudited)
MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Aggregate Bond Index (BAB) and/or Barclays U.S. Intermediate Aggregate Bond Index (BIAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns are net of withholding taxes. They assume daily reinvestment of net dividends thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB and BIAB are both unmanaged, market value-weighted indices of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities. BAB includes maturities of one year or more; BIAB includes maturities of greater than one year but less than ten years. BAB and BIAB returns provided by Interactive Data. Indices returns do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the target date funds asset allocation will vary over time, the composition of the target date portfolio may not match the composition of the comparative Target Composite Benchmark. Effective March 1, 2014, the Series changed the benchmark against which it measures its performance from the Barclays U.S. Aggregate Bond Index to the S&P Target Date 2020 Index. Series management believes the S&P Target Date 2020 Index more accurately reflects the investment strategies of the Series.
11
Performance Update - Target 2025 Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||
ONE YEAR1 |
SINCE INCEPTION1,2 |
|||||||
Manning & Napier Fund, Inc. - Target 2025 Series - Class K3 |
7.28 | % | 14.23 | % | ||||
Manning & Napier Fund, Inc. - Target 2025 Series - Class R3 |
6.93 | % | 14.10 | % | ||||
Manning & Napier Fund, Inc. - Target 2025 Series - Class I3 |
7.51 | % | 14.31 | % | ||||
Russell 3000® Index4 |
16.07 | % | 21.09 | % | ||||
Barclays U.S. Aggregate Bond Index5 |
4.14 | % | 2.05 | % | ||||
S&P Target Date 2025 Index6 |
8.12 | % | 12.69 | % | ||||
2025 Composite Benchmark7 |
8.29 | % | 10.88 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Target 2025 Series - Class K from its inception2 (6/25/12) to present (10/31/14) to the Barclays U.S. Aggregate Bond Index, the 2025 Composite Benchmark, S&P Target Date 2025 Index and the Russell 3000® Index.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from June 25, 2012, the Series inception date. The Barclays U.S. Aggregate Bond Index only publishes month-end numbers; therefore, performance numbers for the Index are calculated from June 30, 2012.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.30% for Class K, 0.55% for Class R and 0.05% for Class I. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 0.89% for Class K, 1.17% for Class R and 0.69% for Class I for the year ended October 31, 2014.
4The Russell 3000® Index is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. The Index returns do not reflect any fees or expenses. Index returns provided by Bloomberg.
5The S&P Target Date Index Series is a series of unmanaged indices that reflect the market consensus for asset allocations for different target date horizons. The asset class exposure for each index is represented by exchange traded funds (ETFs). Asset class weights are established annually and rebalanced monthly. Prior to 02/26/2010, the indices were rebalanced annually. The Index returns shown are the Gross Return series, which provide benchmarks free of underlying ETF expenses by adjusting the Total Return series (which assume the reinvestment of dividends) by an assumed weighted average ETF expense ratio. Index returns provided by Bloomberg. Mid-month performance is not available for the benchmark. Performance shown is from the first of the month following the corresponding Series inception date. S&P Dow Jones Indices LLC, a subsidiary of the McGraw Hill Financial, Inc., is the publisher of various index based data products and services and has licensed certain of its products and services for use by Manning & Napier. Copyright © 2014 by S&P Dow Jones Indices LLC and/or its affiliates. All rights reserved. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their
12
Performance Update - Target 2025 Series
(unaudited)
affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none of these parties shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
6The Barclays U.S. Aggregate Bond Index is an unmanaged, market-value weighted index of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more. Index returns do not reflect any fees or expenses. Index returns provided by Interactive Data.
7The Target Composite Benchmark represents the performance of the target date funds asset classes according to their respective weightings, as adjusted over time to reflect the target date funds increasingly conservative asset allocations. The following indices are used to calculate the Target Composite Benchmarks: Russell 3000® Index (Russell 3000), MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Aggregate Bond Index (BAB) and/or Barclays U.S. Intermediate Aggregate Bond Index (BIAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns are net of withholding taxes. They assume daily reinvestment of net dividends thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB and BIAB are both unmanaged, market value-weighted indices of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities. BAB includes maturities of one year or more; BIAB includes maturities of greater than one year but less than ten years. BAB and BIAB returns provided by Interactive Data. Indices returns do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the target date funds asset allocation will vary over time, the composition of the target date portfolio may not match the composition of the comparative Target Composite Benchmark. Effective March 1, 2014, the Series changed the benchmark against which it measures its performance from the Barclays U.S. Aggregate Bond Index to the S&P Target Date 2025 Index. Series management believes the S&P Target Date 2025 Index more accurately reflects the investment strategies of the Series.
13
Performance Update - Target 2030 Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||||||
ONE YEAR1 |
FIVE YEAR |
SINCE INCEPTION2 |
||||||||||
Manning & Napier Fund, Inc. - Target 2030 Series - Class K3 |
7.58 | % | 11.19 | % | 6.77 | % | ||||||
Manning & Napier Fund, Inc. - Target 2030 Series - Class R3 |
7.37 | % | 10.92 | % | 6.54 | % | ||||||
Manning & Napier Fund, Inc. - Target 2030 Series - Class I3 |
7.86 | % | 11.48 | % | 7.07 | % | ||||||
Russell 3000® Index4 |
16.07 | % | 17.01 | % | 9.29 | % | ||||||
Barclays U.S. Aggregate Bond Index5 |
4.14 | % | 4.22 | % | 4.61 | % | ||||||
S&P Target Date 2030 Index6 |
8.56 | % | 11.71 | % | 6.52 | % | ||||||
2030 Composite Benchmark7 |
9.08 | % | 10.93 | % | 6.31 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Target 2030 Series - Class K from its inception2 (3/28/08) to present (10/31/14) to the Russell 3000® Index, the 2030 Composite Benchmark, S&P Target Date 2030 Index and the Barclays U.S. Aggregate Bond Index.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from March 28, 2008, the Series inception date. The Barclays U.S. Aggregate Bond Index only publishes month-end numbers; therefore, performance numbers for the Index are calculated from March 31, 2008.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.30% for Class K, 0.55% for Class R and 0.05% for Class I. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 0.33% for Class K, 0.58% for Class R and 0.08% for Class I for the year ended October 31, 2014.
4The Russell 3000® Index is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. The Index returns do not reflect any fees or expenses. Index returns provided by Bloomberg.
5The S&P Target Date Index Series is a series of unmanaged indices that reflect the market consensus for asset allocations for different target date horizons. The asset class exposure for each index is represented by exchange traded funds (ETFs). Asset class weights are established annually and rebalanced monthly. Prior to 02/26/2010, the indices were rebalanced annually. The Index returns shown are the Gross Return series, which provide benchmarks free of underlying ETF expenses by adjusting the Total Return series (which assume the reinvestment of dividends) by an assumed weighted average ETF expense ratio. Index returns provided by Bloomberg. Mid-month performance is not available for the benchmark. Performance shown is from the first of the month following the corresponding Series inception date. S&P Dow Jones Indices LLC, a subsidiary of the McGraw Hill Financial, Inc., is the publisher of various index based data products and services and has licensed certain of its products and services for use by Manning & Napier.
Copyright © 2014 by S&P Dow Jones Indices LLC and/or its affiliates. All rights reserved. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none of these parties shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
14
Performance Update - Target 2030 Series
(unaudited)
6The Barclays U.S. Aggregate Bond Index is an unmanaged, market-value weighted index of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more. Index returns do not reflect any fees or expenses. Index returns provided by Interactive Data.
7The Target Composite Benchmark represents the performance of the target date funds asset classes according to their respective weightings, as adjusted over time to reflect the target date funds increasingly conservative asset allocations. The following indices are used to calculate the Target Composite Benchmarks: Russell 3000® Index (Russell 3000), MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Aggregate Bond Index (BAB) and/or Barclays U.S. Intermediate Aggregate Bond Index (BIAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns are net of withholding taxes. They assume daily reinvestment of net dividends thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB and BIAB are both unmanaged, market value-weighted indices of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities. BAB includes maturities of one year or more; BIAB includes maturities of greater than one year but less than ten years. BAB and BIAB returns provided by Interactive Data. Indices returns do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the target date funds asset allocation will vary over time, the composition of the target date portfolio may not match the composition of the comparative Target Composite Benchmark. Effective March 1, 2014, the Series changed the benchmark against which it measures its performance from the Barclays U.S. Aggregate Bond Index to the S&P Target Date 2030 Index. Series management believes the S&P Target Date 2030 Index more accurately reflects the investment strategies of the Series.
15
Performance Update - Target 2035 Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||
ONE YEAR1 |
SINCE INCEPTION1,2 |
|||||||
Manning & Napier Fund, Inc. - Target 2035 Series - Class K3 |
8.17 | % | 16.99 | % | ||||
Manning & Napier Fund, Inc. - Target 2035 Series - Class R3 |
7.82 | % | 16.81 | % | ||||
Manning & Napier Fund, Inc. - Target 2035 Series - Class I3 |
8.43 | % | 17.26 | % | ||||
Russell 3000® Index4 |
16.07 | % | 21.09 | % | ||||
Barclays U.S. Aggregate Bond Index5 |
4.14 | % | 2.05 | % | ||||
S&P Target Date 2035 Index6 |
8.96 | % | 14.77 | % | ||||
2035 Composite Benchmark7 |
9.77 | % | 14.13 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Target 2035 Series - Class K from its inception2 (6/25/12) to present (10/31/14) to the Russell 3000® Index, the 2035 Composite Benchmark, S&P Target Date 2035 Index and the Barclays U.S. Aggregate Bond Index.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from June 25, 2012, the Series inception date. The Barclays U.S. Aggregate Bond Index only publishes month-end numbers; therefore, performance numbers for the Index are calculated from June 30, 2012.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.30% for Class K, 0.55% for Class R and 0.05% for Class I. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 1.13% for Class K, 1.43% for Class R and 0.96% for Class I for the year ended October 31, 2014.
4The Russell 3000® Index is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. The Index returns do not reflect any fees or expenses. Index returns provided by Bloomberg.
5The S&P Target Date Index Series is a series of unmanaged indices that reflect the market consensus for asset allocations for different target date horizons. The asset class exposure for each index is represented by exchange traded funds (ETFs). Asset class weights are established annually and rebalanced monthly. Prior to 02/26/2010, the indices were rebalanced annually. The Index returns shown are the Gross Return series, which provide benchmarks free of underlying ETF expenses by adjusting the Total Return series (which assume the reinvestment of dividends) by an assumed weighted average ETF expense ratio. Index returns provided by Bloomberg. Mid-month performance is not available for the benchmark. Performance shown is from the first of the month following the corresponding Series inception date. S&P Dow Jones Indices LLC, a subsidiary of the McGraw Hill Financial, Inc., is the publisher of various index based data products and services and has licensed certain of its products and services for use by Manning & Napier.
Copyright © 2014 by S&P Dow Jones Indices LLC and/or its affiliates. All rights reserved. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their
16
Performance Update - Target 2035 Series
(unaudited)
affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none of these parties shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
6The Barclays U.S. Aggregate Bond Index is an unmanaged, market-value weighted index of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more. Index returns do not reflect any fees or expenses. Index returns provided by Interactive Data.
7The Target Composite Benchmark represents the performance of the target date funds asset classes according to their respective weightings, as adjusted over time to reflect the target date funds increasingly conservative asset allocations. The following indices are used to calculate the Target Composite Benchmarks: Russell 3000® Index (Russell 3000), MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Aggregate Bond Index (BAB) and/or Barclays U.S. Intermediate Aggregate Bond Index (BIAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns are net of withholding taxes. They assume daily reinvestment of net dividends thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB and BIAB are both unmanaged, market value-weighted indices of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities. BAB includes maturities of one year or more; BIAB includes maturities of greater than one year but less than ten years. BAB and BIAB returns provided by Interactive Data. Indices returns do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the target date funds asset allocation will vary over time, the composition of the target date portfolio may not match the composition of the comparative Target Composite Benchmark. Effective March 1, 2014, the Series changed the benchmark against which it measures its performance from the Barclays U.S. Aggregate Bond Index to the S&P Target Date 2035 Index. Series management believes the S&P Target Date 2035 Index more accurately reflects the investment strategies of the Series.
17
Performance Update - Target 2040 Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||||||
ONE YEAR1 |
FIVE YEAR |
SINCE INCEPTION2 |
||||||||||
Manning & Napier Fund, Inc. - Target 2040 - Class K3 |
8.52 | % | 11.72 | % | 7.02 | % | ||||||
Manning & Napier Fund, Inc. - Target 2040 - Class R3 |
8.30 | % | 11.47 | % | 6.79 | % | ||||||
Manning & Napier Fund, Inc. - Target 2040 - Class I3 |
8.73 | % | 12.01 | % | 7.31 | % | ||||||
Russell 3000® Index4 |
16.07 | % | 17.01 | % | 9.29 | % | ||||||
S&P Target Date 2040 Index5 |
9.21 | % | 12.59 | % | 6.71 | % | ||||||
2040 Composite Benchmark6 |
10.20 | % | 12.46 | % | 6.85 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Target 2040 Series - Class K from its inception2 (3/28/08) to present (10/31/14) to the Russell 3000® Index, S&P Target Date 2040 Index and the 2040 Composite Benchmark.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from March 28, 2008, the Series inception date. The Barclays U.S. Aggregate Bond Index, a component of the Target 2040 Composite Benchmark, only publishes month-end numbers; therefore, performance numbers for the Index are calculated from March 31, 2008.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.30% for Class K, 0.55% for Class R and 0.05% for Class I. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 0.36% for Class K, 0.61% for Class R and 0.11% for Class I for the year ended October 31, 2014.
4The Russell 3000® Index is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. The Index returns do not reflect any fees or expenses. Index returns provided by Bloomberg.
5The S&P Target Date Index Series is a series of unmanaged indices that reflect the market consensus for asset allocations for different target date horizons. The asset class exposure for each index is represented by exchange traded funds (ETFs). Asset class weights are established annually and rebalanced monthly. Prior to 02/26/2010, the indices were rebalanced annually. The Index returns shown are the Gross Return series, which provide benchmarks free of underlying ETF expenses by adjusting the Total Return series (which assume the reinvestment of dividends) by an assumed weighted average ETF expense ratio. Index returns provided by Bloomberg. Mid-month performance is not available for the benchmark. Performance shown is from the first of the month following the corresponding Series inception date. S&P Dow Jones Indices LLC, a subsidiary of the McGraw Hill Financial, Inc., is the publisher of various index based data products and services and has licensed certain of its products and services for use by Manning & Napier.
Copyright © 2014 by S&P Dow Jones Indices LLC and/or its affiliates. All rights reserved. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none of these parties shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
18
Performance Update - Target 2040 Series
(unaudited)
6The Target Composite Benchmark represents the performance of the target date funds asset classes according to their respective weightings, as adjusted over time to reflect the target date funds increasingly conservative asset allocations. The following indices are used to calculate the Target Composite Benchmarks: Russell 3000® Index (Russell 3000), MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Aggregate Bond Index (BAB) and/or Barclays U.S. Intermediate Aggregate Bond Index (BIAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns are net of withholding taxes. They assume daily reinvestment of net dividends thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB and BIAB are both unmanaged, market value-weighted indices of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities. BAB includes maturities of one year or more; BIAB includes maturities of greater than one year but less than ten years. BAB and BIAB returns provided by Interactive Data. Indices returns do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the target date funds asset allocation will vary over time, the composition of the target date portfolio may not match the composition of the comparative Target Composite Benchmark. Effective March 1, 2014, the Series changed the benchmark against which it measures its performance from the Russell 3000 to the S&P Target Date 2040 Index. Series management believes the S&P Target Date 2040 Index more accurately reflects the investment strategies of the Series.
19
Performance Update - Target 2045 Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||
ONE YEAR1 |
SINCE INCEPTION1,2 |
|||||||
Manning & Napier Fund, Inc. - Target 2045 - Class K3 |
8.90 | % | 18.88 | % | ||||
Manning & Napier Fund, Inc. - Target 2045 - Class R3 |
8.71 | % | 18.55 | % | ||||
Manning & Napier Fund, Inc. - Target 2045 - Class I3 |
9.15 | % | 19.13 | % | ||||
Russell 3000® Index4 |
16.07 | % | 21.09 | % | ||||
S&P Target Date 2045 Index5 |
9.39 | % | 16.00 | % | ||||
2045 Composite Benchmark6 |
10.55 | % | 15.79 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Target 2045 Series - Class K from its inception2 (6/25/12) to present (10/31/14) to the Russell 3000® Index, S&P Target Date 2045 Index and the 2045 Composite Benchmark.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from June 25, 2012, the Series inception date. The Barclays Capital U.S. Aggregate Bond Index, a component of the Target 2045 Composite Benchmark, only publishes month-end numbers; therefore, performance numbers for the Index are calculated from June 30, 2012.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.30% for Class K, 0.55% for Class R and 0.05% for Class I. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 2.25% for Class K 2.61% for Class R and 2.19% for Class I for the year ended October 31, 2014.
4The Russell 3000® Index is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. The Index returns do not reflect any fees or expenses. Index returns provided by Bloomberg.
5The S&P Target Date Index Series is a series of unmanaged indices that reflect the market consensus for asset allocations for different target date horizons. The asset class exposure for each index is represented by exchange traded funds (ETFs). Asset class weights are established annually and rebalanced monthly. Prior to 02/26/2010, the indices were rebalanced annually. The Index returns shown are the Gross Return series, which provide benchmarks free of underlying ETF expenses by adjusting the Total Return series (which assume the reinvestment of dividends) by an assumed weighted average ETF expense ratio. Index returns provided by Bloomberg. Mid-month performance is not available for the benchmark. Performance shown is from the first of the month following the corresponding Series inception date. S&P Dow Jones Indices LLC, a subsidiary of the McGraw Hill Financial, Inc., is the publisher of various index based data products and services and has licensed certain of its products and services for use by Manning & Napier.
Copyright © 2014 by S&P Dow Jones Indices LLC and/or its affiliates. All rights reserved. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none of these parties shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
20
Performance Update - Target 2045 Series
(unaudited)
6The Target Composite Benchmark represents the performance of the target date funds asset classes according to their respective weightings, as adjusted over time to reflect the target date funds increasingly conservative asset allocations. The following indices are used to calculate the Target Composite Benchmarks: Russell 3000® Index (Russell 3000), MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Aggregate Bond Index (BAB) and/or Barclays U.S. Intermediate Aggregate Bond Index (BIAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns are net of withholding taxes. They assume daily reinvestment of net dividends thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB and BIAB are both unmanaged, market value-weighted indices of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities. BAB includes maturities of one year or more; BIAB includes maturities of greater than one year but less than ten years. BAB and BIAB returns provided by Interactive Data. Indices returns do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the target date funds asset allocation will vary over time, the composition of the target date portfolio may not match the composition of the comparative Target Composite Benchmark. Effective March 1, 2014, the Series changed the benchmark against which it measures its performance from the Russell 3000 to the S&P Target Date 2045 Index. Series management believes the S&P Target Date 2045 Index more accurately reflects the investment strategies of the Series.
21
Performance Update - Target 2050 Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||||||
ONE YEAR1 |
FIVE YEAR |
SINCE INCEPTION2 |
||||||||||
Manning & Napier Fund, Inc. - Target 2050 - Class K3 |
8.72 | % | 12.02 | % | 7.53 | % | ||||||
Manning & Napier Fund, Inc. - Target 2050 - Class R3 |
8.51 | % | 11.75 | % | 7.28 | % | ||||||
Manning & Napier Fund, Inc. - Target 2050 - Class I3 |
9.07 | % | 12.29 | % | 7.82 | % | ||||||
Russell 3000® Index4 |
16.07 | % | 17.01 | % | 9.29 | % | ||||||
S&P Target Date 2050 Index5 |
9.62 | % | 13.02 | % | 6.81 | % | ||||||
2050 Composite Benchmark6 |
10.55 | % | 12.77 | % | 7.07 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Target 2050 Series - Class K from its inception2 (3/28/08) to present (10/31/14) to the Russell 3000® Index, S&P Target Date 2050 Index and the 2050 Composite Benchmark.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from March 28, 2008, the Series inception date. The Barclays U.S. Aggregate Bond Index, a component of the Target 2050 Composite Benchmark, only publishes month-end numbers; therefore, performance numbers for the Index are calculated from March 31, 2008.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.30% for Class K, 0.55% for Class R and 0.05% for Class I. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 0.48% for Class K, 0.73% for Class R and 0.23% for Class I for the year ended October 31, 2014.
4The Russell 3000® Index is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. The Index returns do not reflect any fees or expenses. Index returns provided by Bloomberg.
5The S&P Target Date Index Series is a series of unmanaged indices that reflect the market consensus for asset allocations for different target date horizons. The asset class exposure for each index is represented by exchange traded funds (ETFs). Asset class weights are established annually and rebalanced monthly. Prior to February 26, 2010, the indices were rebalanced annually. Historical returns for the S&P Target Date 2050 Index prior to May 31, 2011 (the index launch date) are identical to the returns of the S&P Target Date 2045 Index, the closest dated target date index as of the launch date. The Index returns shown are the Gross Return series, which provide benchmarks free of underlying ETF expenses by adjusting the Total Return series (which assume the reinvestment of dividends) by an assumed weighted average ETF expense ratio. Index returns provided by Bloomberg. Mid-month performance is not available for the benchmark. Performance shown is from the first of the month following the corresponding Series inception date. S&P Dow Jones Indices LLC, a subsidiary of the McGraw Hill Financial, Inc., is the publisher of various index based data products and services and has licensed certain of its products and services for use by Manning & Napier. Copyright © 2014 by S&P Dow Jones Indices LLC and/or its affiliates. All rights reserved. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to
22
Performance Update - Target 2050 Series
(unaudited)
accurately represent the asset class or market sector that it purports to represent and none of these parties shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
6The Target Composite Benchmark represents the performance of the target date funds asset classes according to their respective weightings, as adjusted over time to reflect the target date funds increasingly conservative asset allocations. The following indices are used to calculate the Target Composite Benchmarks: Russell 3000® Index (Russell 3000), MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Aggregate Bond Index (BAB) and/or Barclays U.S. Intermediate Aggregate Bond Index (BIAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns are net of withholding taxes. They assume daily reinvestment of net dividends thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB and BIAB are both unmanaged, market value-weighted indices of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities. BAB includes maturities of one year or more; BIAB includes maturities of greater than one year but less than ten years. BAB and BIAB returns provided by Interactive Data. Indices returns do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the target date funds asset allocation will vary over time, the composition of the target date portfolio may not match the composition of the comparative Target Composite Benchmark. Effective March 1, 2014, the Series changed the benchmark against which it measures its performance from the Russell 3000 to the S&P Target Date 2050 Index. Series management believes the S&P Target Date 2050 Index more accurately reflects the investment strategies of the Series.
23
Performance Update - Target 2055 Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||
ONE YEAR1 |
SINCE INCEPTION1,2 |
|||||||
Manning & Napier Fund, Inc. - Target 2055 - Class K3 |
8.50 | % | 19.05 | % | ||||
Manning & Napier Fund, Inc. - Target 2055 - Class R3 |
8.21 | % | 18.56 | % | ||||
Manning & Napier Fund, Inc. - Target 2055 - Class I3 |
8.75 | % | 19.57 | % | ||||
Russell 3000® Index4 |
16.07 | % | 21.09 | % | ||||
S&P Target Date 2055 Index5 |
9.76 | % | 16.92 | % | ||||
2055 Composite Benchmark6 |
10.55 | % | 15.79 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Target 2055 Series - Class K from its inception2 (6/25/12) to present (10/31/14) to the Russell 3000® Index, S&P Target Date 2055 Index and the 2055 Composite Benchmark.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from June 25, 2012, the Series inception date. The Barclays Capital U.S. Aggregate Bond Index, a component of the Target 2055 Composite Benchmark, only publishes month-end numbers; therefore, performance numbers for the Index are calculated from June 30, 2012.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.30% for Class K, 0.55% for Class R and 0.05% for Class I. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 5.09% for Class K, 5.94% for Class R and 7.85% for Class I for the year ended October 31, 2014.
4The Russell 3000® Index is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. The Index returns do not reflect any fees or expenses. Index returns provided by Bloomberg.
5The S&P Target Date Index Series is a series of unmanaged indices that reflect the market consensus for asset allocations for different target date horizons. The asset class exposure for each index is represented by exchange traded funds (ETFs). Asset class weights are established annually and rebalanced monthly. Prior to 02/26/2010, the indices were rebalanced annually. The Index returns shown are the Gross Return series, which provide benchmarks free of underlying ETF expenses by adjusting the Total Return series (which assume the reinvestment of dividends) by an assumed weighted average ETF expense ratio. Index returns provided by Bloomberg. Mid-month performance is not available for the benchmark. Performance shown is from the first of the month following the corresponding Series inception date. S&P Dow Jones Indices LLC, a subsidiary of the McGraw Hill Financial, Inc., is the publisher of various index based data products and services and has licensed certain of its products and services for use by Manning & Napier.
Copyright © 2014 by S&P Dow Jones Indices LLC and/or its affiliates. All rights reserved. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their
24
Performance Update - Target 2055 Series
(unaudited)
affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none of these parties shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
6The Target Composite Benchmark represents the performance of the target date funds asset classes according to their respective weightings, as adjusted over time to reflect the target date funds increasingly conservative asset allocations. The following indices are used to calculate the Target Composite Benchmarks: Russell 3000® Index (Russell 3000), MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Aggregate Bond Index (BAB) and/or Barclays U.S. Intermediate Aggregate Bond Index (BIAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns are net of withholding taxes. They assume daily reinvestment of net dividends thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB and BIAB are both unmanaged, market value-weighted indices of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities. BAB includes maturities of one year or more; BIAB includes maturities of greater than one year but less than ten years. BAB and BIAB returns provided by Interactive Data. Indices returns do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the target date funds asset allocation will vary over time, the composition of the target date portfolio may not match the composition of the comparative Target Composite Benchmark. Effective March 1, 2014, the Series changed the benchmark against which it measures its performance from the Russell 3000 to the S&P Target Date 2010 Index. Series management believes the S&P Target Date 2010 Index more accurately reflects the investment strategies of the Series.
25
Shareholder Expense Example
(unaudited)
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/141 |
ANNUALIZED EXPENSE RATIO2 | |||||
Target Income |
||||||||
Actual (Class K) |
$1,000.00 | $1,011.90 | $1.52 | 0.30% | ||||
Hypothetical3 |
$1,000.00 | $1,023.69 | $1.53 | 0.30% | ||||
Actual (Class R) |
$1,000.00 | $1,010.90 | $2.79 | 0.55% | ||||
Hypothetical3 |
$1,000.00 | $1,022.43 | $2.80 | 0.55% | ||||
Actual (Class I) |
$1,000.00 | $1,012.90 | $0.25 | 0.05% | ||||
Hypothetical3 |
$1,000.00 | $1,024.95 | $0.26 | 0.05% | ||||
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/141 |
ANNUALIZED EXPENSE RATIO2 | |||||
Target 2010 |
||||||||
Actual (Class K) |
$1,000.00 | $1,012.10 | $1.52 | 0.30% | ||||
Hypothetical3 |
$1,000.00 | $1,023.69 | $1.53 | 0.30% | ||||
Actual (Class R) |
$1,000.00 | $1,010.80 | $2.79 | 0.55% | ||||
Hypothetical3 |
$1,000.00 | $1,022.43 | $2.80 | 0.55% | ||||
Actual (Class I) |
$1,000.00 | $1,012.20 | $0.25 | 0.05% | ||||
Hypothetical3 |
$1,000.00 | $1,024.95 | $0.26 | 0.05% |
26
Shareholder Expense Example
(unaudited)
BEGINNING ACCOUNT VALUE
|
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/141 |
ANNUALIZED EXPENSE RATIO2 | |||||
Target 2015 |
||||||||
Actual (Class K) |
$1,000.00 | $1,006.90 | $1.52 | 0.30% | ||||
Hypothetical3 |
$1,000.00 | $1,023.69 | $1.53 | 0.30% | ||||
Actual (Class R) |
$1,000.00 | $1,006.10 | $2.78 | 0.55% | ||||
Hypothetical3 |
$1,000.00 | $1,022.43 | $2.80 | 0.55% | ||||
Actual (Class I) |
$1,000.00 | $1,008.60 | $0.25 | 0.05% | ||||
Hypothetical3 |
$1,000.00 | $1,024.95 | $0.26 | 0.05% | ||||
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/141 |
ANNUALIZED EXPENSE RATIO2 | |||||
Target 2020 |
||||||||
Actual (Class K) |
$1,000.00 | $1,008.00 | $1.52 | 0.30% | ||||
Hypothetical3 |
$1,000.00 | $1,023.69 | $1.53 | 0.30% | ||||
Actual (Class R) |
$1,000.00 | $1,006.70 | $2.78 | 0.55% | ||||
Hypothetical3 |
$1,000.00 | $1,022.43 | $2.80 | 0.55% | ||||
Actual (Class I) |
$1,000.00 | $1,010.00 | $0.25 | 0.05% | ||||
Hypothetical3 |
$1,000.00 | $1,024.95 | $0.26 | 0.05% | ||||
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/141 |
ANNUALIZED EXPENSE RATIO2 | |||||
Target 2025 |
||||||||
Actual (Class K) |
$1,000.00 | $1,012.10 | $1.52 | 0.30% | ||||
Hypothetical3 |
$1,000.00 | $1,023.69 | $1.53 | 0.30% | ||||
Actual (Class R) |
$1,000.00 | $1,010.50 | $2.79 | 0.55% | ||||
Hypothetical3 |
$1,000.00 | $1,022.43 | $2.80 | 0.55% | ||||
Actual (Class I) |
$1,000.00 | $1,013.00 | $0.25 | 0.05% | ||||
Hypothetical3 |
$1,000.00 | $1,024.95 | $0.26 | 0.05% |
27
Shareholder Expense Example
(unaudited)
BEGINNING ACCOUNT VALUE
|
ENDING ACCOUNT VALUE
|
EXPENSES PAID DURING PERIOD 5/1/14-10/31/141 |
ANNUALIZED EXPENSE RATIO2 | |||||
Target 2030 |
||||||||
Actual (Class K) |
$1,000.00 | $1,011.60 | $1.52 | 0.30% | ||||
Hypothetical3 |
$1,000.00 | $1,023.69 | $1.53 | 0.30% | ||||
Actual (Class R) |
$1,000.00 | $1,010.40 | $2.79 | 0.55% | ||||
Hypothetical3 |
$1,000.00 | $1,022.43 | $2.80 | 0.55% | ||||
Actual (Class I) |
$1,000.00 | $1,012.60 | $0.25 | 0.05% | ||||
Hypothetical3 |
$1,000.00 | $1,024.95 | $0.26 | 0.05% | ||||
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/141 |
ANNUALIZED EXPENSE RATIO2 | |||||
Target 2035 |
||||||||
Actual (Class K) |
$1,000.00 | $1,013.60 | $1.52 | 0.30% | ||||
Hypothetical3 |
$1,000.00 | $1,023.69 | $1.53 | 0.30% | ||||
Actual (Class R) |
$1,000.00 | $1,012.40 | $2.79 | 0.55% | ||||
Hypothetical3 |
$1,000.00 | $1,022.43 | $2.80 | 0.55% | ||||
Actual (Class I) |
$1,000.00 | $1,015.30 | $0.25 | 0.05% | ||||
Hypothetical3 |
$1,000.00 | $1,024.95 | $0.26 | 0.05% | ||||
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/141 |
ANNUALIZED EXPENSE RATIO2 | |||||
Target 2040 |
||||||||
Actual (Class K) |
$1,000.00 | $1,013.90 | $1.52 | 0.30% | ||||
Hypothetical3 |
$1,000.00 | $1,023.69 | $1.53 | 0.30% | ||||
Actual (Class R) |
$1,000.00 | $1,013.60 | $2.79 | 0.55% | ||||
Hypothetical3 |
$1,000.00 | $1,022.43 | $2.80 | 0.55% | ||||
Actual (Class I) |
$1,000.00 | $1,014.90 | $0.25 | 0.05% | ||||
Hypothetical3 |
$1,000.00 | $1,024.95 | $0.26 | 0.05% |
28
Shareholder Expense Example
(unaudited)
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/141 |
ANNUALIZED EXPENSE RATIO2 | |||||
Target 2045 |
||||||||
Actual (Class K) |
$1,000.00 | $1,015.50 | $1.52 | 0.30% | ||||
Hypothetical3 |
$1,000.00 | $1,023.69 | $1.53 | 0.30% | ||||
Actual (Class R) |
$1,000.00 | $1,015.10 | $2.79 | 0.55% | ||||
Hypothetical3 |
$1,000.00 | $1,022.43 | $2.80 | 0.55% | ||||
Actual (Class I) |
$1,000.00 | $1,017.10 | $0.25 | 0.05% | ||||
Hypothetical3 |
$1,000.00 | $1,024.95 | $0.26 | 0.05% | ||||
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/141 |
ANNUALIZED EXPENSE RATIO2 | |||||
Target 2050 |
||||||||
Actual (Class K) |
$1,000.00 | $1,014.60 | $1.52 | 0.30% | ||||
Hypothetical3 |
$1,000.00 | $1,023.69 | $1.53 | 0.30% | ||||
Actual (Class R) |
$1,000.00 | $1,013.50 | $2.79 | 0.55% | ||||
Hypothetical3 |
$1,000.00 | $1,022.43 | $2.80 | 0.55% | ||||
Actual (Class I) |
$1,000.00 | $1,016.30 | $0.25 | 0.05% | ||||
Hypothetical3 |
$1,000.00 | $1,024.95 | $0.26 | 0.05% | ||||
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/141 |
ANNUALIZED EXPENSE RATIO2 | |||||
Target 2055 |
||||||||
Actual (Class K) |
$1,000.00 | $1,015.60 | $1.52 | 0.30% | ||||
Hypothetical3 |
$1,000.00 | $1,023.69 | $1.53 | 0.30% | ||||
Actual (Class R) |
$1,000.00 | $1,014.20 | $2.79 | 0.55% | ||||
Hypothetical3 |
$1,000.00 | $1,022.43 | $2.80 | 0.55% | ||||
Actual (Class I) |
$1,000.00 | $1,016.80 | $0.25 | 0.05% | ||||
Hypothetical3 |
$1,000.00 | $1,024.95 | $0.26 | 0.05% |
1Expenses are equal to the Class annualized expense ratio (for the six-month period), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses are based on the most recent fiscal half year. The Class total returns would have been lower had certain expenses not been reimbursed during the period.
2Expense ratios of the Class do not include fees and expenses indirectly incurred by the underlying funds. If these expenses were included, the expense ratios would have been higher.
3Assumes 5% annual return before expenses.
29
Portfolio Composition as of October 31, 2014 - Asset Allocation1
(unaudited)
1 Represents portfolio composition of the underlying investment(s) for each Series as a percentage of net assets.
2 A U.S. Treasury Note is an intermediate-term obligation of the U.S. Treasury issued with a maturity period between one and ten years.
30
Portfolio Composition as of October 31, 2014 - Asset Allocation1
(unaudited)
1 Represents portfolio composition of the underlying investment(s) for each Series as a percentage of net assets.
2 A U.S. Treasury Note is an intermediate-term obligation of the U.S. Treasury issued with a maturity period between one and ten years.
31
Investment Portfolios - October 31, 2014
TARGET INCOME SERIES | SHARES | VALUE (NOTE 2) |
||||||||
AFFILIATED INVESTMENT COMPANIES - 100.0% |
||||||||||
Manning & Napier Pro-Blend® Conservative Term Series - Class I |
6,937,476 | $ | 77,491,610 | |||||||
|
|
|||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES |
||||||||||
(Identified Cost $74,284,987) |
77,491,610 | |||||||||
LIABILITIES, LESS OTHER ASSETS - 0.0% |
(34,147 | ) | ||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 77,457,463 | ||||||||
|
|
|||||||||
TARGET 2010 SERIES | SHARES | VALUE (NOTE 2) |
||||||||
AFFILIATED INVESTMENT COMPANIES - 100.1% |
||||||||||
Manning & Napier Pro-Blend® Conservative Term Series - Class I |
3,520,973 | $ | 39,329,266 | |||||||
Manning & Napier Pro-Blend® Moderate Term Series - Class I |
853,998 | 9,735,573 | ||||||||
|
|
|||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES |
||||||||||
(Identified Cost $47,180,505) |
49,064,839 | |||||||||
LIABILITIES, LESS OTHER ASSETS - (0.1%) |
(31,005 | ) | ||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 49,033,834 | ||||||||
|
|
|||||||||
TARGET 2015 SERIES | SHARES | VALUE (NOTE 2) |
||||||||
AFFILIATED INVESTMENT COMPANIES - 100.2% |
||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
42,654 | $ | 481,989 | |||||||
Manning & Napier Pro-Blend® Moderate Term Series - Class I |
799,189 | 9,110,760 | ||||||||
|
|
|||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES |
||||||||||
(Identified Cost $9,423,930) |
9,592,749 | |||||||||
LIABILITIES, LESS OTHER ASSETS - (0.2%) |
(20,920 | ) | ||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 9,571,829 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
32
Investment Portfolios - October 31, 2014
TARGET 2020 SERIES | SHARES | VALUE (NOTE 2) |
||||||||
AFFILIATED INVESTMENT COMPANIES - 100.0% |
||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
6,387,024 | $ | 72,173,371 | |||||||
Manning & Napier Pro-Blend® Moderate Term Series - Class I |
9,429,234 | 107,493,265 | ||||||||
|
|
|||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES |
||||||||||
(Identified Cost $170,360,064) |
179,666,636 | |||||||||
LIABILITIES, LESS OTHER ASSETS - 0.0% |
(65,663 | ) | ||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 179,600,973 | ||||||||
|
|
|||||||||
TARGET 2025 SERIES | SHARES | VALUE (NOTE 2) |
||||||||
AFFILIATED INVESTMENT COMPANIES - 100.1% |
||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
2,048,952 | $ | 23,153,153 | |||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
97,580 | 1,220,730 | ||||||||
|
|
|||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES |
||||||||||
(Identified Cost $23,853,678) |
24,373,883 | |||||||||
LIABILITIES, LESS OTHER ASSETS - (0.1%) |
(27,813 | ) | ||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 24,346,070 | ||||||||
|
|
|||||||||
TARGET 2030 SERIES | SHARES | VALUE (NOTE 2) |
||||||||
AFFILIATED INVESTMENT COMPANIES - 100.0% |
||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
12,244,865 | $ | 138,366,980 | |||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
4,752,389 | 59,452,391 | ||||||||
|
|
|||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES |
||||||||||
(Identified Cost $182,549,987) |
197,819,371 | |||||||||
LIABILITIES, LESS OTHER ASSETS - 0.0% |
(62,121 | ) | ||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 197,757,250 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
33
Investment Portfolios - October 31, 2014
TARGET 2035 SERIES | SHARES | VALUE (NOTE 2) |
||||||||
AFFILIATED INVESTMENT COMPANIES - 100.2% |
||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
707,334 | $ | 7,992,876 | |||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
784,295 | 9,811,536 | ||||||||
|
|
|||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES |
||||||||||
(Identified Cost $17,410,389) |
17,804,412 | |||||||||
LIABILITIES, LESS OTHER ASSETS - (0.2%) |
(27,463 | ) | ||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 17,776,949 | ||||||||
|
|
|||||||||
TARGET 2040 SERIES | SHARES | VALUE (NOTE 2) |
||||||||
AFFILIATED INVESTMENT COMPANIES - 105.0% |
||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
2,357,227 | $ | 26,636,668 | |||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
8,536,631 | 106,793,252 | ||||||||
|
|
|||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES |
||||||||||
(Identified Cost $122,195,233) |
133,429,920 | |||||||||
LIABILITIES, LESS OTHER ASSETS - (5.0%) |
(6,354,046 | ) | ||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 127,075,874 | ||||||||
|
|
|||||||||
TARGET 2045 SERIES | SHARES | VALUE (NOTE 2) |
||||||||
AFFILIATED INVESTMENT COMPANIES - 100.4% |
||||||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
622,639 | $ | 7,789,209 | |||||||
|
|
|||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES |
||||||||||
(Identified Cost $7,637,766) |
7,789,209 | |||||||||
LIABILITIES, LESS OTHER ASSETS - (0.4%) |
(29,117 | ) | ||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 7,760,092 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
34
Investment Portfolios - October 31, 2014
TARGET 2050 SERIES | SHARES | VALUE (NOTE 2) |
||||||||
AFFILIATED INVESTMENT COMPANIES - 100.0% |
||||||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
5,178,017 | $ | 64,776,991 | |||||||
|
|
|||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES |
||||||||||
(Identified Cost $58,462,447) |
64,776,991 | |||||||||
LIABILITIES, LESS OTHER ASSETS - 0.0% |
(29,217 | ) | ||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 64,747,774 | ||||||||
|
|
|||||||||
TARGET 2055 SERIES | SHARES | VALUE (NOTE 2) |
||||||||
AFFILIATED INVESTMENT COMPANIES - 100.6% |
||||||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
254,460 | $ | 3,183,296 | |||||||
|
|
|||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES |
||||||||||
(Identified Cost $3,162,408) |
3,183,296 | |||||||||
LIABILITIES, LESS OTHER ASSETS - (0.6%) |
(18,940 | ) | ||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 3,164,356 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
35
Statements of Assets and Liabilities
October 31, 2014
TARGET INCOME |
TARGET 2010 |
TARGET 2015 |
TARGET 2020 |
TARGET 2025 |
TARGET 2030 |
|||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||
Total investments in Underlying Series: |
||||||||||||||||||||||||
At value* |
$ | 77,491,610 | $ | 49,064,839 | $ | 9,592,749 | $ | 179,666,636 | $ | 24,373,883 | $ | 197,819,371 | ||||||||||||
Receivable from Advisor |
10,776 | 11,093 | 7,591 | 5,613 | 7,848 | 9,267 | ||||||||||||||||||
Receivable for shares of Underlying Series sold |
120,362 | 1,365,348 | | 9,313,830 | | 9,495,026 | ||||||||||||||||||
Receivable for fund shares sold |
9,191 | 16,850 | 1,740 | 76,666 | 14,920 | 190,033 | ||||||||||||||||||
Prepaid expenses |
3,232 | | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL ASSETS |
77,635,171 | 50,458,130 | 9,602,080 | 189,062,745 | 24,396,651 | 207,513,697 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
LIABILITIES: |
||||||||||||||||||||||||
Accrued distribution and service (Rule 12b-1) fees (Note 3) |
16,661 | 8,429 | 1,341 | 33,005 | 3,117 | 37,112 | ||||||||||||||||||
Accrued fund accounting and administration fees (Note 3) |
13,032 | 12,869 | 8,062 | 13,764 | 13,228 | 13,855 | ||||||||||||||||||
Accrued transfer agent fees (Note 3) |
1,851 | 1,625 | 350 | 1,842 | 385 | 3,221 | ||||||||||||||||||
Accrued Chief Compliance Officer service fees (Note 3) |
407 | 407 | 815 | 407 | 815 | 407 | ||||||||||||||||||
Payable for fund shares repurchased |
129,553 | 1,382,145 | 4 | 9,389,368 | 470 | 9,679,572 | ||||||||||||||||||
Audit fees payable |
14,251 | 14,196 | 16,416 | 14,533 | 16,416 | 14,542 | ||||||||||||||||||
Payable for shares of Underlying Series purchased |
| | 1,736 | | 14,450 | | ||||||||||||||||||
Other payables and accrued expenses |
1,953 | 4,625 | 1,527 | 8,853 | 1,700 | 7,738 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL LIABILITIES |
177,708 | 1,424,296 | 30,251 | 9,461,772 | 50,581 | 9,756,447 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL NET ASSETS |
$ | 77,457,463 | $ | 49,033,834 | $ | 9,571,829 | $ | 179,600,973 | $ | 24,346,070 | $ | 197,757,250 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||||||||||
Capital stock |
71,545 | 47,357 | 7,913 | 166,919 | 18,739 | 171,538 | ||||||||||||||||||
Additional paid-in-capital |
69,062,725 | 43,883,905 | 9,077,335 | 155,761,771 | 22,850,398 | 163,077,219 | ||||||||||||||||||
Undistributed net investment income |
84,716 | 56,017 | 7,074 | 154,054 | 18,134 | 138,372 | ||||||||||||||||||
Accumulated net realized gain on Underlying Series |
5,031,854 | 3,162,221 | 310,688 | 14,211,657 | 938,594 | 19,100,737 | ||||||||||||||||||
Net unrealized appreciation on Underlying Series |
3,206,623 | 1,884,334 | 168,819 | 9,306,572 | 520,205 | 15,269,384 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL NET ASSETS |
$ | 77,457,463 | $ | 49,033,834 | $ | 9,571,829 | $ | 179,600,973 | $ | 24,346,070 | $ | 197,757,250 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Class K |
||||||||||||||||||||||||
Net Assets |
$ | 52,442,177 | $ | 31,262,015 | $ | 3,199,537 | $ | 95,364,420 | $ | 7,501,368 | $ | 118,787,900 | ||||||||||||
Shares Outstanding |
4,836,510 | 3,021,465 | 265,000 | 8,858,315 | 576,769 | 10,314,669 | ||||||||||||||||||
Net Asset Value, Offering Price, and Redemption Price per share |
$ | 10.84 | $ | 10.35 | $ | 12.07 | $ | 10.77 | $ | 13.01 | $ | 11.52 | ||||||||||||
Class R |
||||||||||||||||||||||||
Net Assets |
$ | 13,405,592 | $ | 3,093,714 | $ | 1,586,990 | $ | 22,563,970 | $ | 3,798,517 | $ | 20,893,878 | ||||||||||||
Shares Outstanding |
1,251,183 | 302,329 | 131,296 | 2,128,468 | 291,725 | 1,836,901 | ||||||||||||||||||
Net Asset Value, Offering Price, and Redemption Price per share |
$ | 10.71 | $ | 10.23 | $ | 12.09 | $ | 10.60 | $ | 13.02 | $ | 11.37 | ||||||||||||
Class I |
||||||||||||||||||||||||
Net Assets |
$ | 11,609,694 | $ | 14,678,105 | $ | 4,785,302 | $ | 61,672,583 | $ | 13,046,185 | $ | 58,075,472 | ||||||||||||
Shares Outstanding |
1,066,800 | 1,411,950 | 395,038 | 5,705,161 | 1,005,451 | 5,002,222 | ||||||||||||||||||
Net Asset Value, Offering Price, and Redemption Price per share |
$ | 10.88 | $ | 10.40 | $ | 12.11 | $ | 10.81 | $ | 12.98 | $ | 11.61 | ||||||||||||
*At identified cost |
$ | 74,284,987 | $ | 47,180,505 | $ | 9,423,930 | $ | 170,360,064 | $ | 23,853,678 | $ | 182,549,987 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the financial statements.
36
Statements of Assets and Liabilities
October 31, 2014
TARGET 2035 |
TARGET 2040 |
TARGET 2045 |
TARGET 2050 |
TARGET 2055 |
||||||||||||||||
ASSETS: |
||||||||||||||||||||
Total investments in Underlying Series: |
||||||||||||||||||||
At value* |
$ | 17,804,412 | $ | 133,429,920 | $ | 7,789,209 | $ | 64,776,991 | $ | 3,183,296 | ||||||||||
Receivable from Advisor (Note 3) |
7,500 | 10,744 | 6,776 | 13,726 | 8,624 | |||||||||||||||
Receivable for shares of Underlying Series sold |
| | | 954,072 | | |||||||||||||||
Receivable for fund shares sold |
17,934 | 102,281 | 19,699 | 34,457 | 12,391 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL ASSETS |
17,829,846 | 133,542,945 | 7,815,684 | 65,779,246 | 3,204,311 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
LIABILITIES: |
||||||||||||||||||||
Accrued fund accounting and administration fees (Note 3) |
13,293 | 13,377 | 13,395 | 12,916 | 13,428 | |||||||||||||||
Accrued distribution and service (Rule 12b-1) fees (Note 3) |
2,260 | 24,010 | 1,356 | 12,189 | 607 | |||||||||||||||
Accrued transfer agent fees (Note 3) |
372 | 2,131 | 349 | 2,556 | 627 | |||||||||||||||
Accrued Chief Compliance Officer service fees (Note 3) |
815 | 407 | 815 | 407 | 815 | |||||||||||||||
Payable for fund shares repurchased |
| 6,316,341 | 2,555 | 985,091 | | |||||||||||||||
Payable for shares of Underlying Series purchased |
17,934 | 89,627 | 19,662 | | 6,859 | |||||||||||||||
Audit fees payable |
16,416 | 14,374 | 16,416 | 14,205 | 16,416 | |||||||||||||||
Other payables and accrued expenses |
1,807 | 6,804 | 1,044 | 4,108 | 1,203 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL LIABILITIES |
52,897 | 6,467,071 | 55,592 | 1,031,472 | 39,955 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL NET ASSETS |
$ | 17,776,949 | $ | 127,075,874 | $ | 7,760,092 | $ | 64,747,774 | $ | 3,164,356 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||||||
Capital stock |
12,946 | 101,635 | 5,422 | 47,144 | 2,268 | |||||||||||||||
Additional paid-in-capital |
16,618,820 | 99,216,457 | 7,296,090 | 51,421,421 | 3,081,349 | |||||||||||||||
Undistributed net investment income |
9,906 | 58,428 | 1,632 | 18,130 | 1,384 | |||||||||||||||
Accumulated net realized gain on Underlying Series |
741,254 | 16,464,667 | 305,505 | 6,946,535 | 58,467 | |||||||||||||||
Net unrealized appreciation on Underlying Series |
394,023 | 11,234,687 | 151,443 | 6,314,544 | 20,888 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL NET ASSETS |
$ | 17,776,949 | $ | 127,075,874 | $ | 7,760,092 | $ | 64,747,774 | $ | 3,164,356 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Class K |
||||||||||||||||||||
Net Assets |
$ | 5,378,203 | $ | 83,655,030 | $ | 3,041,237 | $ | 47,530,867 | $ | 1,777,453 | ||||||||||
Shares Outstanding |
392,337 | 6,694,495 | 212,369 | 3,462,926 | 127,471 | |||||||||||||||
Net Asset Value, Offering Price, and Redemption Price per share |
$ | 13.71 | $ | 12.50 | $ | 14.32 | $ | 13.73 | $ | 13.94 | ||||||||||
Class R |
||||||||||||||||||||
Net Assets |
$ | 2,911,435 | $ | 10,468,658 | $ | 1,825,263 | $ | 5,140,143 | $ | 515,208 | ||||||||||
Shares Outstanding |
212,150 | 849,224 | 128,113 | 377,882 | 37,248 | |||||||||||||||
Net Asset Value, Offering Price, and Redemption Price per share |
$ | 13.72 | $ | 12.33 | $ | 14.25 | $ | 13.60 | $ | 13.83 | ||||||||||
Class I |
||||||||||||||||||||
Net Assets |
$ | 9,487,311 | $ | 32,952,186 | $ | 2,893,592 | $ | 12,076,764 | $ | 871,695 | ||||||||||
Shares Outstanding |
690,129 | 2,619,731 | 201,679 | 873,640 | 62,035 | |||||||||||||||
Net Asset Value, Offering Price, and Redemption Price per share |
$ | 13.75 | $ | 12.58 | $ | 14.35 | $ | 13.82 | $ | 14.05 | ||||||||||
*At identified cost |
$ | 17,410,389 | $ | 122,195,233 | $ | 7,637,766 | $ | 58,462,447 | $ | 3,162,408 | ||||||||||
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the financial statements.
37
Statements of Operations
For the Year Ended October 31, 2014
TARGET INCOME |
TARGET 2010 |
TARGET 2015 |
TARGET 2020 |
TARGET 2025 |
TARGET 2030 |
|||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||
Income distributions from Underlying Series |
$ | 1,474,478 | $ | 889,259 | $ | 88,457 | $ | 2,612,113 | $ | 214,652 | $ | 2,330,924 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
EXPENSES: |
||||||||||||||||||||||||
Distribution and services (Rule 12b-1) fees (Class K) (Note 3) |
127,038 | 76,671 | 6,525 | 227,876 | 13,316 | 272,645 | ||||||||||||||||||
Distribution and services (Rule 12b-1) fees (Class C) (Note 3) |
3,152 | 2,879 | | 11,006 | 1,502 | 8,980 | ||||||||||||||||||
Distribution and services (Rule 12b-1) fees (Class R) (Note 3) |
67,557 | 24,186 | 7,116 | 156,737 | 14,672 | 151,113 | ||||||||||||||||||
Fund accounting and administration fees (Note 3) |
43,622 | 43,075 | 39,566 | 46,149 | 42,348 | 46,364 | ||||||||||||||||||
Transfer agent fees (Note 3) |
7,837 | 6,866 | 6,520 | 9,130 | 7,038 | 13,204 | ||||||||||||||||||
Chief Compliance Officer service fees (Note 3) |
3,161 | 3,161 | 3,364 | 3,161 | 3,364 | 3,161 | ||||||||||||||||||
Directors fees (Note 3) |
632 | 452 | 118 | 1,033 | 243 | 1,741 | ||||||||||||||||||
Registration and filing fees |
45,553 | 43,321 | 41,801 | 45,534 | 42,634 | 47,617 | ||||||||||||||||||
Audit fees |
16,951 | 16,838 | 18,503 | 17,572 | 18,519 | 17,601 | ||||||||||||||||||
Custodian fees |
1,841 | 3,668 | 2,890 | 3,673 | 2,910 | 3,670 | ||||||||||||||||||
Miscellaneous |
10,623 | 8,353 | 2,698 | 20,265 | 3,249 | 21,741 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Expenses |
327,967 | 229,470 | 129,101 | 542,136 | 149,795 | 587,837 | ||||||||||||||||||
Less reduction of expenses (Note 3) |
(92,364 | ) | (100,691 | ) | (111,599 | ) | (55,016 | ) | (111,347 | ) | (58,298 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Expenses |
235,603 | 128,779 | 17,502 | 487,120 | 38,448 | 529,539 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET INVESTMENT INCOME |
1,238,875 | 760,480 | 70,955 | 2,124,993 | 176,204 | 1,801,385 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
REALIZED AND UNREALIZED GAIN ON UNDERLYING SERIES: |
||||||||||||||||||||||||
Net realized gain on Underlying Series |
2,011,041 | 1,039,033 | 98,110 | 4,495,349 | 174,777 | 5,147,906 | ||||||||||||||||||
Distributions of realized gains from Underlying Series |
3,773,118 | 2,669,735 | 267,474 | 12,138,459 | 943,182 | 18,450,326 | ||||||||||||||||||
Net change in unrealized depreciation on Underlying Series |
(3,131,769 | ) | (1,773,778 | ) | (56,491 | ) | (7,997,262 | ) | (138,919 | ) | (11,533,034 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET REALIZED AND UNREALIZED GAIN ON UNDERLYING SERIES |
2,652,390 | 1,934,990 | 309,093 | 8,636,546 | 979,040 | 12,065,198 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 3,891,265 | $ | 2,695,470 | $ | 380,048 | $ | 10,761,539 | $ | 1,155,244 | $ | 13,866,583 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the financial statements.
38
Statements of Operations
For the Year Ended October 31, 2014
TARGET 2035 |
TARGET 2040 |
TARGET 2045 |
TARGET 2050 |
TARGET 2055 |
||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||
Income distributions from Underlying Series |
$ | 114,215 | $ | 1,041,905 | $ | 33,281 | $ | 407,217 | $ | 14,654 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
EXPENSES: |
||||||||||||||||||||
Distribution and services (Rule 12b-1) fees (Class K) (Note 3) |
9,235 | 197,772 | 5,385 | 107,332 | 3,173 | |||||||||||||||
Distribution and services (Rule 12b-1) fees (Class C) (Note 3) |
144 | 4,095 | 1,392 | 4,267 | 3 | |||||||||||||||
Distribution and services (Rule 12b-1) fees (Class R) (Note 3) |
10,406 | 83,329 | 7,127 | 28,708 | 1,388 | |||||||||||||||
Fund accounting and administration fees (Note 3) |
42,228 | 44,762 | 42,026 | 43,154 | 41,947 | |||||||||||||||
Transfer agent fees (Note 3) |
6,835 | 9,439 | 6,972 | 10,338 | 7,132 | |||||||||||||||
Chief Compliance Officer service fees (Note 3) |
3,364 | 3,161 | 3,364 | 3,161 | 3,365 | |||||||||||||||
Directors fees (Note 3) |
186 | 1,000 | 143 | 1,011 | 145 | |||||||||||||||
Registration and filing fees |
41,735 | 45,624 | 40,913 | 45,182 | 42,379 | |||||||||||||||
Audit fees |
18,509 | 17,235 | 18,497 | 16,869 | 18,492 | |||||||||||||||
Custodian fees |
2,910 | 3,674 | 1,388 | 1,840 | 1,280 | |||||||||||||||
Miscellaneous |
2,968 | 15,225 | 2,677 | 10,912 | 2,401 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Expenses |
138,520 | 425,316 | 129,884 | 272,774 | 121,705 | |||||||||||||||
Less reduction of expenses (Note 3) |
(112,361 | ) | (77,349 | ) | (113,262 | ) | (103,243 | ) | (116,109 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Expenses |
26,159 | 347,967 | 16,622 | 169,531 | 5,596 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NET INVESTMENT INCOME |
88,056 | 693,938 | 16,659 | 237,686 | 9,058 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
REALIZED AND UNREALIZED GAIN ON UNDERLYING SERIES: |
||||||||||||||||||||
Net realized gain (loss) on Underlying Series |
105,919 | 5,287,280 | 64,318 | 1,768,558 | (7,625 | ) | ||||||||||||||
Distributions of realized gains from Underlying Series |
839,412 | 15,114,458 | 329,673 | 7,082,203 | 90,486 | |||||||||||||||
Net change in unrealized depreciation on Underlying Series |
(187,795 | ) | (11,061,373 | ) | (49,287 | ) | (4,458,605 | ) | 531 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NET REALIZED AND UNREALIZED GAIN ON UNDERLYING SERIES |
757,536 | 9,340,365 | 344,704 | 4,392,156 | 83,392 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 845,592 | $ | 10,034,303 | $ | 361,363 | $ | 4,629,842 | $ | 92,450 | ||||||||||
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the financial statements.
39
Statements of Changes in Net Assets
TARGET INCOME YEAR ENDED |
FOR THE YEAR ENDED 10/31/13 |
TARGET 2010 FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
TARGET 2015 FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||
Net investment income |
$ | 1,238,875 | $ | 985,895 | $ | 760,480 | $ | 680,462 | $ | 70,955 | $ | 23,211 | ||||||||||||
Net realized gain on Underlying Series |
2,011,041 | 1,571,377 | 1,039,033 | 801,575 | 98,110 | 37,989 | ||||||||||||||||||
Distributions of realized gains from Underlying Series |
3,773,118 | 1,506,602 | 2,669,735 | 1,309,091 | 267,474 | 84 | ||||||||||||||||||
Net change in unrealized appreciation/(depreciation) on Underlying Series |
(3,131,769 | ) | 605,343 | (1,773,778 | ) | 1,949,056 | (56,491 | ) | 225,276 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase from operations |
3,891,265 | 4,669,217 | 2,695,470 | 4,740,184 | 380,048 | 286,560 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||||||||||||||||||
From net investment income (Class K) |
(1,286,422 | ) | (1,027,970 | ) | (753,747 | ) | (551,988 | ) | (30,155 | ) | (5,261 | ) | ||||||||||||
From net investment income (Class R) |
(327,839 | ) | (70,541 | ) | (110,947 | ) | (80,517 | ) | (23,380 | ) | (1,446 | ) | ||||||||||||
From net investment income (Class C) |
(21,877 | ) | (15,052 | ) | (17,249 | ) | (15,758 | ) | (2 | ) | | |||||||||||||
From net investment income (Class I) |
(323,245 | ) | (170,895 | ) | (414,192 | ) | (276,764 | ) | (68,175 | ) | (13,541 | ) | ||||||||||||
From net realized gain on investments (Class K) |
(1,819,428 | ) | (1,790,580 | ) | (1,089,187 | ) | (893,245 | ) | (7,981 | ) | | |||||||||||||
From net realized gain on investments (Class R) |
(505,007 | ) | (146,039 | ) | (184,407 | ) | (154,363 | ) | (9,202 | ) | | |||||||||||||
From net realized gain on investments (Class C) |
(45,468 | ) | (40,660 | ) | (39,257 | ) | (44,459 | ) | (1 | ) | | |||||||||||||
From net realized gain on investments (Class I) |
(432,506 | ) | (241,175 | ) | (560,834 | ) | (393,718 | ) | (20,916 | ) | | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions to shareholders |
(4,761,792 | ) | (3,502,912 | ) | (3,169,820 | ) | (2,410,812 | ) | (159,812 | ) | (20,248 | ) | ||||||||||||
|
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|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||||||||||||||||||
Net increase (decrease) from capital share transactions (Note 6) |
4,698,848 | 15,365,341 | (2,060,536 | ) | 3,875,933 | 3,697,875 | 5,385,487 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets |
3,828,321 | 16,531,646 | (2,534,886 | ) | 6,205,305 | 3,918,111 | 5,651,799 | |||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||
Beginning of year |
73,629,142 | 57,097,496 | 51,568,720 | 45,363,415 | 5,653,718 | 1,919 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
End of year1 |
$ | 77,457,463 | $ | 73,629,142 | $ | 49,033,834 | $ | 51,568,720 | $ | 9,571,829 | $ | 5,653,718 | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1 Including undistributed net investment income (distributions in excess of net investment income): |
$ | 84,716 | $ | 55,670 | $ | 56,017 | $ | 48,191 | $ | 7,074 | $ | 2,977 |
The accompanying notes are an integral part of the financial statements.
40
Statements of Changes in Net Assets
TARGET 2020 YEAR ENDED |
FOR THE YEAR ENDED |
TARGET 2025 FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
TARGET 2030 YEAR ENDED |
FOR THE YEAR ENDED |
|||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||
Net investment income |
$ | 2,124,993 | $ | 1,869,623 | $ | 176,204 | $ | 44,902 | $ | 1,801,385 | $ | 1,436,230 | ||||||||||||
Net realized gain on Underlying Series |
4,495,349 | 2,390,347 | 174,777 | 36,657 | 5,147,906 | 1,371,264 | ||||||||||||||||||
Distributions of realized gains from Underlying Series |
12,138,459 | 5,325,570 | 943,182 | 2,173 | 18,450,326 | 5,135,966 | ||||||||||||||||||
Net change in unrealized appreciation/(depreciation) on Underlying Series |
(7,997,262 | ) | 12,707,860 | (138,919 | ) | 656,686 | (11,533,034 | ) | 20,531,082 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase from operations |
10,761,539 | 22,293,400 | 1,155,244 | 740,418 | 13,866,583 | 28,474,542 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||||||||||||||||||
From net investment income (Class K) |
(2,003,878 | ) | (1,414,259 | ) | (44,898 | ) | (2,961 | ) | (2,972,409 | ) | (1,072,641 | ) | ||||||||||||
From net investment income (Class R) |
(644,604 | ) | (350,392 | ) | (53,128 | ) | (1,291 | ) | (799,542 | ) | (245,172 | ) | ||||||||||||
From net investment income (Class C) |
(58,853 | ) | (50,975 | ) | (11,088 | ) | (1,380 | ) | (73,376 | ) | (22,710 | ) | ||||||||||||
From net investment income (Class I) |
(1,689,048 | ) | (1,011,041 | ) | (234,992 | ) | (32,739 | ) | (2,002,890 | ) | (739,268 | ) | ||||||||||||
From net realized gain on investments (Class K) |
(3,058,836 | ) | (2,423,692 | ) | (2,858 | ) | | (2,954,941 | ) | (2,382,147 | ) | |||||||||||||
From net realized gain on investments (Class R) |
(1,125,718 | ) | (692,644 | ) | (6,548 | ) | | (877,958 | ) | (659,561 | ) | |||||||||||||
From net realized gain on investments (Class C) |
(135,011 | ) | (144,273 | ) | (1,961 | ) | | (95,570 | ) | (94,494 | ) | |||||||||||||
From net realized gain on investments (Class I) |
(2,449,372 | ) | (1,431,757 | ) | (27,313 | ) | | (1,937,699 | ) | (1,326,395 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions to shareholders |
(11,165,320 | ) | (7,519,033 | ) | (382,786 | ) | (38,371 | ) | (11,714,385 | ) | (6,542,388 | ) | ||||||||||||
|
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|
|
|
|
|
|
|
|||||||||||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||||||||||||||||||
Net increase (decrease) from capital share transactions (Note 6) |
(7,536,690 | ) | 43,056,205 | 11,375,142 | 11,448,349 | 9,224,721 | 37,685,103 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets |
(7,940,471 | ) | 57,830,572 | 12,147,600 | 12,150,396 | 11,376,919 | 59,617,257 | |||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||
Beginning of year |
187,541,444 | 129,710,872 | 12,198,470 | 48,074 | 186,380,331 | 126,763,074 | ||||||||||||||||||
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|
|
|
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|
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|
|
|
|||||||||||||
End of year1 |
$ | 179,600,973 | $ | 187,541,444 | $ | 24,346,070 | $ | 12,198,470 | $ | 197,757,250 | $ | 186,380,331 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1 Including undistributed net investment income (distributions in excess of net investment income): |
$ | 154,054 | $ | 132,217 | $ | 18,134 | $ | 6,866 | $ | 138,372 | $ | 101,598 |
The accompanying notes are an integral part of the financial statements.
41
Statements of Changes in Net Assets
TARGET 2035 FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
TARGET 2040 FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
TARGET 2045 FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||
Net investment income |
$ | 88,056 | $ | 25,297 | $ | 693,938 | $ | 497,575 | $ | 16,659 | $ | 2,536 | ||||||||||||
Net realized gain on Underlying Series |
105,919 | 54,240 | 5,287,280 | 2,253,454 | 64,318 | 12,629 | ||||||||||||||||||
Distributions of realized gains from Underlying Series |
839,412 | 2,191 | 15,114,458 | 2,590,479 | 329,673 | 486 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on Underlying Series |
(187,795 | ) | 582,026 | (11,061,373 | ) | 16,567,825 | (49,287 | ) | 200,938 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase from operations |
845,592 | 663,754 | 10,034,303 | 21,909,333 | 361,363 | 216,589 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||||||||||||||||||
From net investment income (Class K) |
(32,455 | ) | (1,620 | ) | (2,662,847 | ) | (336,191 | ) | (18,145 | ) | (224 | ) | ||||||||||||
From net investment income (Class R) |
(46,705 | ) | (1,871 | ) | (580,648 | ) | (36,913 | ) | (24,268 | ) | (658 | ) | ||||||||||||
From net investment income (Class C) |
(1,555 | ) | (137 | ) | (45,590 | ) | (1,132 | ) | (17,240 | ) | (236 | ) | ||||||||||||
From net investment income (Class I) |
(205,599 | ) | (17,671 | ) | (1,310,168 | ) | (195,310 | ) | (43,848 | ) | (1,504 | ) | ||||||||||||
From net realized gain on investments (Class K) |
(4,760 | ) | | (2,760,808 | ) | (1,220,050 | ) | (1,996 | ) | | ||||||||||||||
From net realized gain on investments (Class R) |
(9,936 | ) | | (651,349 | ) | (262,386 | ) | (3,219 | ) | | ||||||||||||||
From net realized gain on investments (Class C) |
(436 | ) | | (56,111 | ) | (25,039 | ) | (2,543 | ) | | ||||||||||||||
From net realized gain on investments (Class I) |
(41,207 | ) | | (1,308,595 | ) | (483,436 | ) | (5,276 | ) | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions to shareholders |
(342,653 | ) | (21,299 | ) | (9,376,116 | ) | (2,560,457 | ) | (116,535 | ) | (2,622 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||||||||||||||||||
Net increase from capital share transactions (Note 6) |
9,246,251 | 7,367,238 | 7,945,058 | 14,796,016 | 4,228,653 | 3,057,612 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase in net assets |
9,749,190 | 8,009,693 | 8,603,245 | 34,144,892 | 4,473,481 | 3,271,579 | ||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||
Beginning of year |
8,027,759 | 18,066 | 118,472,629 | 84,327,737 | 3,286,611 | 15,032 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
End of year1 |
$ | 17,776,949 | $ | 8,027,759 | $ | 127,075,874 | $ | 118,472,629 | $ | 7,760,092 | $ | 3,286,611 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1 Including undistributed net investment income (distributions in excess of net investment income): |
$ | 9,906 | $ | 4,176 | $ | 58,428 | $ | 27,546 | $ | 1,632 | $ | |
The accompanying notes are an integral part of the financial statements.
42
Statements of Changes in Net Assets
TARGET 2050 FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
TARGET 2055 FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||
OPERATIONS: |
||||||||||||||||
Net investment income (loss) |
$ | 237,686 | $ | 147,114 | $ | 9,058 | $ | (293 | ) | |||||||
Net realized gain (loss) on Underlying Series |
1,768,558 | 469,877 | (7,625 | ) | 22,963 | |||||||||||
Distributions of realized gains from Underlying Series |
7,082,203 | 982,607 | 90,486 | 19 | ||||||||||||
Net change in unrealized appreciation/(depreciation) on Underlying Series |
(4,458,605 | ) | 7,883,077 | 531 | 20,309 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase from operations |
4,629,842 | 9,482,675 | 92,450 | 42,998 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||||||||||
From net investment income (Class K) |
(1,510,958 | ) | (112,230 | ) | (13,246 | ) | | |||||||||
From net investment income (Class R) |
(196,518 | ) | (6,865 | ) | (3,695 | ) | | |||||||||
From net investment income (Class C) |
(49,327 | ) | | (33 | ) | | ||||||||||
From net investment income (Class I) |
(368,776 | ) | (31,572 | ) | (14,949 | ) | | |||||||||
From net realized gain on investments (Class K) |
(1,030,737 | ) | (81,536 | ) | (8,364 | ) | | |||||||||
From net realized gain on investments (Class R) |
(143,563 | ) | (10,793 | ) | (2,577 | ) | | |||||||||
From net realized gain on investments (Class C) |
(39,039 | ) | (3,533 | ) | (32 | ) | | |||||||||
From net realized gain on investments (Class I) |
(238,679 | ) | (13,563 | ) | (11,860 | ) | | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Total distributions to shareholders |
(3,577,597 | ) | (260,092 | ) | (54,756 | ) | | |||||||||
|
|
|
|
|
|
|
|
|||||||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||||||||||
Net increase from capital share transactions (Note 6) |
11,631,104 | 9,544,226 | 2,501,007 | 582,008 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase in net assets |
12,683,349 | 18,766,809 | 2,538,701 | 625,006 | ||||||||||||
NET ASSETS: |
||||||||||||||||
Beginning of year |
52,064,425 | 33,297,616 | 625,655 | 649 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
End of year1 |
$ | 64,747,774 | $ | 52,064,425 | $ | 3,164,356 | $ | 625,655 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
1 Including undistributed net investment income (distributions in excess of net investment income): |
$ | 18,130 | $ | 3,455 | $ | 1,384 | $ | |
The accompanying notes are an integral part of the financial statements.
43
Financial Highlights
TARGET INCOME SERIES CLASS K | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 11.00 | $ | 10.86 | $ | 10.86 | $ | 11.02 | $ | 10.13 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.18 | 0.18 | 0.22 | 0.23 | 0.19 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.37 | 0.63 | 0.48 | 0.06 | 0.92 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.55 | 0.81 | 0.70 | 0.29 | 1.11 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.29 | ) | (0.24 | ) | (0.25 | ) | (0.33 | ) | (0.19 | ) | ||||||||||
From net realized gain on investments |
(0.42 | ) | (0.43 | ) | (0.45 | ) | (0.12 | ) | (0.03 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.71 | ) | (0.67 | ) | (0.70 | ) | (0.45 | ) | (0.22 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 10.84 | $ | 11.00 | $ | 10.86 | $ | 10.86 | $ | 11.02 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 52,442 | $ | 47,676 | $ | 45,926 | $ | 44,682 | $ | 46,886 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
5.35 | % | 7.83 | % | 6.98 | % | 2.77 | % | 11.22 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.30 | %4 | 0.30 | %4 | 0.30 | %5 | 0.30 | %6 | 0.28 | %7,8 | ||||||||||
Net investment income2 |
1.63 | % | 1.69 | % | 2.07 | % | 2.11 | % | 1.83 | % | ||||||||||
Series portfolio turnover9 |
15 | % | 14 | % | 16 | % | 14 | % | 9 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
|
0.12
|
%4
|
|
0.16
|
%4
|
|
0.20
|
%5
|
|
0.22
|
%6
|
|
0.25
|
%7
| ||||||
TARGET INCOME SERIES CLASS R | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 10.89 | $ | 10.76 | $ | 10.77 | $ | 10.93 | $ | 10.08 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.15 | 0.07 | 0.09 | 0.16 | 0.09 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.36 | 0.70 | 0.58 | 0.10 | 0.99 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.51 | 0.77 | 0.67 | 0.26 | 1.08 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.27 | ) | (0.21 | ) | (0.23 | ) | (0.30 | ) | (0.20 | ) | ||||||||||
From net realized gain on investments |
(0.42 | ) | (0.43 | ) | (0.45 | ) | (0.12 | ) | (0.03 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.69 | ) | (0.64 | ) | (0.68 | ) | (0.42 | ) | (0.23 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 10.71 | $ | 10.89 | $ | 10.76 | $ | 10.77 | $ | 10.93 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 13,406 | $ | 13,475 | $ | 3,853 | $ | 553 | $ | 347 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
5.00 | % | 7.52 | % | 6.77 | % | 2.50 | % | 10.97 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.55 | %4 | 0.55 | %4 | 0.55 | %5 | 0.55 | %6 | 0.54 | %7,8 | ||||||||||
Net investment income2 |
1.40 | % | 0.66 | % | 0.84 | % | 1.47 | % | 0.81 | % | ||||||||||
Series portfolio turnover9 |
15 | % | 14 | % | 16 | % | 14 | % | 9 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.12 | %4 | 0.14 | %4 | 0.20 | %5 | 0.22 | %6 | 0.37 | %7 |
1Calculated based on average shares outstanding during the years.
2 Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3 Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
4Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.67%.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.68%.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.69%.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.70%.
8During the year ended October 31, 2010, due to the timing of the renewal of the Series distribution plan under Rule 12b-1, the Series incurred approximately 11 months of distribution expense. The expense ratio would have been higher and the net investment income ratio and total return would have been lower had the Series incurred a full year of distribution expense.
9Reflects activity of the Series and does not include the activity of the Underlying Series.
The accompanying notes are an integral part of the financial statements.
44
Financial Highlights
TARGET INCOME SERIES CLASS I | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 11.04 | $ | 10.90 | $ | 10.89 | $ | 11.05 | $ | 10.17 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.21 | 0.19 | 0.24 | 0.07 | 0.19 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.37 | 0.65 | 0.50 | 0.25 | 0.94 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.58 | 0.84 | 0.74 | 0.32 | 1.13 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.32 | ) | (0.27 | ) | (0.28 | ) | (0.36 | ) | (0.22 | ) | ||||||||||
From net realized gain on investments |
(0.42 | ) | (0.43 | ) | (0.45 | ) | (0.12 | ) | (0.03 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.74 | ) | (0.70 | ) | (0.73 | ) | (0.48 | ) | (0.25 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 10.88 | $ | 11.04 | $ | 10.90 | $ | 10.89 | $ | 11.05 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 11,610 | $ | 11,271 | $ | 6,300 | $ | 4,068 | $ | 298 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
5.59 | % | 8.09 | % | 7.34 | % | 3.00 | % | 11.44 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.05 | %4 | 0.05 | %4 | 0.05 | %5 | 0.05 | %6 | 0.05 | %7 | ||||||||||
Net investment income2 |
1.92 | % | 1.76 | % | 2.30 | % | 0.68 | % | 1.85 | % | ||||||||||
Series portfolio turnover8 |
15 | % | 14 | % | 16 | % | 14 | % | 9 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.12 | %4 | 0.16 | %4 | 0.20 | %5 | 0.23 | %6 | 0.33 | %7 |
1Calculated based on average shares outstanding during the years.
2 Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3 Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
4Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.67%.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.68%.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.69%.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.70%.
8Reflects activity of the Series and does not include the activity of the Underlying Series.
The accompanying notes are an integral part of the financial statements.
45
Financial Highlights
TARGET 2010 SERIES CLASS K | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 10.45 | $ | 10.00 | $ | 10.56 | $ | 10.64 | $ | 9.58 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.15 | 0.14 | 0.18 | 0.20 | 0.12 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.40 | 0.84 | 0.48 | 0.10 | 1.10 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.55 | 0.98 | 0.66 | 0.30 | 1.22 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.26 | ) | (0.20 | ) | (0.25 | ) | (0.18 | ) | (0.14 | ) | ||||||||||
From net realized gain on investments |
(0.39 | ) | (0.33 | ) | (0.97 | ) | (0.20 | ) | (0.02 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.65 | ) | (0.53 | ) | (1.22 | ) | (0.38 | ) | (0.16 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 10.35 | $ | 10.45 | $ | 10.00 | $ | 10.56 | $ | 10.64 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 31,262 | $ | 29,949 | $ | 27,086 | $ | 23,653 | $ | 27,904 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
5.56 | % | 10.20 | % | 7.39 | % | 2.97 | % | 12.85 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.30 | %4 | 0.30 | %4 | 0.30 | %5 | 0.30 | %6 | 0.29 | %7,8 | ||||||||||
Net investment income2 |
1.45 | % | 1.39 | % | 1.85 | % | 1.84 | % | 1.20 | % | ||||||||||
Series portfolio turnover9 |
39 | % | 32 | % | 30 | % | 48 | % | 11 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
|
0.20
|
%4
|
|
0.21
|
%4
|
|
0.27
|
%5
|
|
0.30
|
%6
|
|
0.42
|
%7
| ||||||
TARGET 2010 SERIES CLASS R | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 10.36 | $ | 9.92 | $ | 10.48 | $ | 10.57 | $ | 9.54 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.12 | 0.11 | 0.16 | 0.14 | 0.12 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.37 | 0.83 | 0.48 | 0.13 | 1.07 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.49 | 0.94 | 0.64 | 0.27 | 1.19 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.23 | ) | (0.17 | ) | (0.23 | ) | (0.16 | ) | (0.14 | ) | ||||||||||
From net realized gain on investments |
(0.39 | ) | (0.33 | ) | (0.97 | ) | (0.20 | ) | (0.02 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.62 | ) | (0.50 | ) | (1.20 | ) | (0.36 | ) | (0.16 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 10.23 | $ | 10.36 | $ | 9.92 | $ | 10.48 | $ | 10.57 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 3,094 | $ | 5,246 | $ | 4,793 | $ | 4,885 | $ | 3,655 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
5.00 | % | 9.84 | % | 7.21 | % | 2.67 | % | 12.64 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.55 | %4 | 0.55 | %4 | 0.55 | %5 | 0.55 | %6 | 0.52 | %7,8 | ||||||||||
Net investment income2 |
1.18 | % | 1.11 | % | 1.65 | % | 1.32 | % | 1.16 | % | ||||||||||
Series portfolio turnover9 |
39 | % | 32 | % | 30 | % | 48 | % | 11 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.20 | %4 | 0.21 | %4 | 0.27 | %5 | 0.31 | %6 | 0.41 | %7 |
1Calculated based on average shares outstanding during the years.
2 Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3 Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
4Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.67% for Manning & Napier Pro-Blend® Conservative Term Series - Class I and 0.81% for Manning & Napier Pro-Blend® Moderate Term Series - Class I.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.68% for Manning & Napier Pro-Blend® Conservative Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Moderate Term Series - Class I.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.69% for Manning & Napier Pro-Blend® Conservative Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Moderate Term Series - Class I.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.84%.
8During the year ended October 31, 2010, due to the timing of the renewal of the Series distribution plan under Rule 12b-1, the Series incurred approximately 11 months of distribution expense. The expense ratio would have been higher and the net investment income ratio and total return would have been lower had the Series incurred a full year of distribution expense.
9Reflects activity of the Series and does not include the activity of the Underlying Series.
The accompanying notes are an integral part of the financial statements.
46
Financial Highlights
TARGET 2010 SERIES CLASS I | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 10.50 | $ | 10.04 | $ | 10.60 | $ | 10.68 | $ | 9.62 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.18 | 0.16 | 0.21 | 0.08 | 0.14 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.40 | 0.85 | 0.48 | 0.25 | 1.10 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.58 | 1.01 | 0.69 | 0.33 | 1.24 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.29 | ) | (0.22 | ) | (0.28 | ) | (0.21 | ) | (0.16 | ) | ||||||||||
From net realized gain on investments |
(0.39 | ) | (0.33 | ) | (0.97 | ) | (0.20 | ) | (0.02 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.68 | ) | (0.55 | ) | (1.25 | ) | (0.41 | ) | (0.18 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 10.40 | $ | 10.50 | $ | 10.04 | $ | 10.60 | $ | 10.68 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 14,678 | $ | 15,305 | $ | 12,026 | $ | 9,966 | $ | 1,465 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
5.80 | % | 10.53 | % | 7.67 | % | 3.20 | % | 13.10 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.05 | %4 | 0.05 | %4 | 0.05 | %5 | 0.05 | %6 | 0.05 | %7 | ||||||||||
Net investment income2 |
1.76 | % | 1.57 | % | 2.16 | % | 0.81 | % | 1.44 | % | ||||||||||
Series portfolio turnover8 |
39 | % | 32 | % | 30 | % | 48 | % | 11 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.20 | %4 | 0.21 | %4 | 0.27 | %5 | 0.32 | %6 | 0.43 | %7 |
1Calculated based on average shares outstanding during the years.
2 Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3 Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
4Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.67% for Manning & Napier Pro-Blend® Conservative Term Series - Class I and 0.81% for Manning & Napier Pro-Blend® Moderate Term Series - Class I.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.68% for Manning & Napier Pro-Blend® Conservative Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Moderate Term Series - Class I.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.69% for Manning & Napier Pro-Blend® Conservative Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Moderate Term Series - Class I.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.84%.
8Reflects activity of the Series and does not include the activity of the Underlying Series.
The accompanying notes are an integral part of the financial statements.
47
Financial Highlights
TARGET 2015 SERIES CLASS K | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 11.79 | $ | 10.59 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from investment operations: |
||||||||||||
Net investment income (loss)2,3 |
0.10 | 0.15 | (0.01 | ) | ||||||||
Net realized and unrealized gain on Underlying Series |
0.53 | 1.25 | 0.60 | |||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
0.63 | 1.40 | 0.59 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.26 | ) | (0.20 | ) | | |||||||
From net realized gain on investments |
(0.09 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.35 | ) | (0.20 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 12.07 | $ | 11.79 | $ | 10.59 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 3,200 | $ | 1,019 | $ | 1,498 | 4 | |||||
|
|
|
|
|
|
|||||||
Total return5 |
5.45 | % | 13.45 | % | 5.90 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.30 | %6 | 0.30 | %6 | 0.30 | %7,8 | ||||||
Net investment income (loss)3 |
0.80 | % | 1.34 | % | (0.30 | %)7 | ||||||
Series portfolio turnover9 |
46 | % | 50 | % | | 10 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
|
1.41
|
%6
|
|
6.06
|
%6
|
|
9,646
|
%7,8,11
| ||||
TARGET 2015 SERIES CLASS R | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 11.81 | $ | 10.59 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from investment operations: |
||||||||||||
Net investment income (loss)2,3 |
0.07 | 0.01 | (0.02 | ) | ||||||||
Net realized and unrealized gain on Underlying Series |
0.53 | 1.39 | 0.61 | |||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
0.60 | 1.40 | 0.59 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.23 | ) | (0.18 | ) | | |||||||
From net realized gain on investments |
(0.09 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.32 | ) | (0.18 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 12.09 | $ | 11.81 | $ | 10.59 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 1,587 | $ | 1,015 | $ | 106 | 4 | |||||
|
|
|
|
|
|
|||||||
Total return5 |
5.22 | % | 13.36 | % | 5.90 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.55 | %6 | 0.55 | %6 | 0.55 | %7,8 | ||||||
Net investment income (loss)3 |
0.60 | % | 0.11 | % | (0.55 | %)7 | ||||||
Series portfolio turnover9 |
46 | % | 50 | % | | 10 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
1.47 | %6 | 3.45 | %6 | 10,644 | %7,8,11 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3 Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
4Represents the whole number without rounding to the 000s.
5Represents aggregate total return for the periods indicated. Total return would have been lower had certain expenses not been reimbursed. Periods less than one year are not annualized.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
7Annualized.
8Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
9Reflects activity of the Series and does not include the activity of the Underlying Series.
10Less than 1%.
11The increase to the expense ratios (to average net assets) is largely due to the small net assets in each class.
The accompanying notes are an integral part of the financial statements.
48
Financial Highlights
TARGET 2015 SERIES CLASS I | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 11.83 | $ | 10.61 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income from investment operations: |
||||||||||||
Net investment income2,3 |
0.14 | 0.11 | | 4 | ||||||||
Net realized and unrealized gain on Underlying Series |
0.51 | 1.32 | 0.61 | |||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
0.65 | 1.43 | 0.61 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.28 | ) | (0.21 | ) | | |||||||
From net realized gain on investments |
(0.09 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.37 | ) | (0.21 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 12.11 | $ | 11.83 | $ | 10.61 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 4,785 | $ | 3,619 | $ | 209 | 5 | |||||
|
|
|
|
|
|
|||||||
Total return6 |
5.67 | % | 13.71 | % | 6.10 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.05 | %7 | 0.05 | %7 | 0.05 | %8,9 | ||||||
Net investment income (loss)3 |
1.12 | % | 1.01 | % | (0.05 | %)8 | ||||||
Series portfolio turnover10 |
46 | % | 50 | % | | 11 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
1.46 | %7 | 4.09 | %7 | 9,682 | %8,9,12 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
4Less than $0.01.
5Represents the whole number without rounding to the 000s.
6Represents aggregate total return for the periods indicated. Total return would have been lower had certain expenses not been reimbursed. Periods less than one year are not annualized.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
8Annualized.
9Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
10Reflects activity of the Series and does not include the activity of the Underlying Series.
11Less than 1%.
12The increase to the expense ratios (to average net assets) is largely due to the small net assets in each class.
The accompanying notes are an integral part of the financial statements.
49
Financial Highlights
TARGET 2020 SERIES CLASS K | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 10.79 | $ | 9.89 | $ | 10.12 | $ | 10.33 | $ | 9.16 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.11 | 0.12 | 0.17 | 0.20 | 0.13 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.51 | 1.33 | 0.54 | 0.12 | 1.23 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.62 | 1.45 | 0.71 | 0.32 | 1.36 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.25 | ) | (0.20 | ) | (0.21 | ) | (0.19 | ) | (0.17 | ) | ||||||||||
From net realized gain on investments |
(0.39 | ) | (0.35 | ) | (0.73 | ) | (0.34 | ) | (0.02 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.64 | ) | (0.55 | ) | (0.94 | ) | (0.53 | ) | (0.19 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 10.77 | $ | 10.79 | $ | 9.89 | $ | 10.12 | $ | 10.33 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 95,364 | $ | 82,841 | $ | 67,039 | $ | 56,290 | $ | 64,613 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
6.14 | % | 15.43 | % | 8.08 | % | 3.14 | % | 14.89 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.30 | %4 | 0.30 | %4 | 0.30 | %5 | 0.30 | %6 | 0.29 | %7,8 | ||||||||||
Net investment income2 |
1.06 | % | 1.20 | % | 1.72 | % | 1.97 | % | 1.38 | % | ||||||||||
Series portfolio turnover9 |
37 | % | 19 | % | 24 | % | 49 | % | 20 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
|
0.03
|
%4
|
|
0.05
|
%4
|
|
0.08
|
%5
|
|
0.10
|
%6
|
|
0.17
|
%7
| ||||||
TARGET 2020 SERIES CLASS R | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 10.66 | $ | 9.78 | $ | 10.02 | $ | 10.24 | $ | 9.10 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.09 | 0.09 | 0.14 | 0.15 | 0.12 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.47 | 1.32 | 0.54 | 0.14 | 1.21 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.56 | 1.41 | 0.68 | 0.29 | 1.33 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.23 | ) | (0.18 | ) | (0.19 | ) | (0.17 | ) | (0.17 | ) | ||||||||||
From net realized gain on investments |
(0.39 | ) | (0.35 | ) | (0.73 | ) | (0.34 | ) | (0.02 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.62 | ) | (0.53 | ) | (0.92 | ) | (0.51 | ) | (0.19 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 10.60 | $ | 10.66 | $ | 9.78 | $ | 10.02 | $ | 10.24 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 22,564 | $ | 30,393 | $ | 19,150 | $ | 16,105 | $ | 12,229 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
5.55 | % | 15.07 | % | 7.82 | % | 2.85 | % | 14.72 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.55 | %4 | 0.55 | %4 | 0.55 | %5 | 0.55 | %6 | 0.52 | %7,8 | ||||||||||
Net investment income2 |
0.83 | % | 0.85 | % | 1.47 | % | 1.48 | % | 1.25 | % | ||||||||||
Series portfolio turnover9 |
37 | % | 19 | % | 24 | % | 49 | % | 20 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.03 | %4 | 0.05 | %4 | 0.08 | %5 | 0.10 | %6 | 0.18 | %7 |
1Calculated based on average shares outstanding during the years.
2Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
4Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.83% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.84% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.83% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
8During the year ended October 31, 2010, due to the timing of the renewal of the Series distribution plan under Rule 12b-1, the Series incurred approximately 11 months of distribution expense. The expense ratio would have been higher and the net investment income ratio and total return would have been lower had the Series incurred a full year of distribution expense.
9Reflects activity of the Series and does not include the activity of the Underlying Series.
The accompanying notes are an integral part of the financial statements.
50
Financial Highlights
TARGET 2020 SERIES CLASS I | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 10.83 | $ | 9.93 | $ | 10.16 | $ | 10.37 | $ | 9.19 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.16 | 0.14 | 0.20 | 0.09 | 0.18 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.49 | 1.34 | 0.54 | 0.25 | 1.21 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.65 | 1.48 | 0.74 | 0.34 | 1.39 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.28 | ) | (0.23 | ) | (0.24 | ) | (0.21 | ) | (0.19 | ) | ||||||||||
From net realized gain on investments |
(0.39 | ) | (0.35 | ) | (0.73 | ) | (0.34 | ) | (0.02 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.67 | ) | (0.58 | ) | (0.97 | ) | (0.55 | ) | (0.21 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 10.81 | $ | 10.83 | $ | 9.93 | $ | 10.16 | $ | 10.37 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 61,673 | $ | 70,556 | $ | 39,523 | $ | 25,262 | $ | 3,474 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
6.37 | % | 15.65 | % | 8.36 | % | 3.37 | % | 15.24 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.05 | %4 | 0.05 | %4 | 0.05 | %5 | 0.05 | %6 | 0.05 | %7 | ||||||||||
Net investment income2 |
1.48 | % | 1.34 | % | 2.10 | % | 0.85 | % | 1.89 | % | ||||||||||
Series portfolio turnover8 |
37 | % | 19 | % | 24 | % | 49 | % | 20 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.03 | %4 | 0.05 | %4 | 0.08 | %5 | 0.11 | %6 | 0.19 | %7 |
1Calculated based on average shares outstanding during the years.
2Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
4Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.83% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.84% for Manning & Napier Pro-Blend® Moderate Term Series - Class I and 0.83% for Manning & Napier Pro-Blend® Extended Term Series - Class I.
8Reflects activity of the Series and does not include the activity of the Underlying Series.
The accompanying notes are an integral part of the financial statements.
51
Financial Highlights
TARGET 2025 SERIES CLASS K | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 12.50 | $ | 10.77 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from investment operations: |
||||||||||||
Net investment income (loss)2,3 |
0.09 | 0.09 | (0.01 | ) | ||||||||
Net realized and unrealized gain on Underlying Series |
0.80 | 1.85 | 0.78 | |||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
0.89 | 1.94 | 0.77 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.34 | ) | (0.21 | ) | | |||||||
From net realized gain on investments |
(0.04 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.38 | ) | (0.21 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 13.01 | $ | 12.50 | $ | 10.77 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 7,501 | $ | 710 | $ | 47,648 | 4 | |||||
|
|
|
|
|
|
|||||||
Total return5 |
7.28 | % | 18.32 | % | 7.70 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.30 | %6 | 0.30 | %6 | 0.30 | %7,8 | ||||||
Net investment income (loss)3 |
0.66 | % | 0.80 | % | (0.30 | %)7 | ||||||
Series portfolio turnover9 |
30 | % | 22 | % | | 10 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
|
0.59
|
%6
|
|
10.70
|
%6
|
|
259
|
%7,8,11
| ||||
TARGET 2025 SERIES CLASS R | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 12.53 | $ | 10.75 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from investment operations: |
||||||||||||
Net investment income (loss)2,3 |
0.10 | (0.01 | ) | (0.02 | ) | |||||||
Net realized and unrealized gain on Underlying Series |
0.75 | 1.98 | 0.77 | |||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
0.85 | 1.97 | 0.75 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.32 | ) | (0.19 | ) | | |||||||
From net realized gain on investments |
(0.04 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.36 | ) | (0.19 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 13.02 | $ | 12.53 | $ | 10.75 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 3,799 | $ | 1,540 | $ | 108 | 4 | |||||
|
|
|
|
|
|
|||||||
Total return5 |
6.93 | % | 18.61 | % | 7.50 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.55 | %6 | 0.55 | %6 | 0.55 | %7,8 | ||||||
Net investment income (loss)3 |
0.75 | % | (0.10 | %) | (0.55 | %)7 | ||||||
Series portfolio turnover9 |
30 | % | 22 | % | | 10 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
0.62 | %6 | 1.75 | %6 | 3,129 | %7,8,11 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
4Represents the whole number without rounding to the 000s.
5Represents aggregate total return for the periods indicated. Total return would have been lower had certain expenses not been reimbursed. Periods less than one year are not annualized.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
7Annualized.
8Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.84% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
9Reflects activity of the Series and does not include the activity of the Underlying Series.
10Less than 1%.
11The increase to the expense ratios (to average net assets) is largely due to the small net assets in each class.
The accompanying notes are an integral part of the financial statements.
52
Financial Highlights
TARGET 2025 SERIES CLASS I | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 12.47 | $ | 10.77 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from investment operations: |
||||||||||||
Net investment income2,3 |
0.16 | 0.12 | | 4 | ||||||||
Net realized and unrealized gain on Underlying Series |
0.75 | 1.81 | 0.77 | |||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
0.91 | 1.93 | 0.77 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.36 | ) | (0.23 | ) | | |||||||
From net realized gain on investments |
(0.04 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.40 | ) | (0.23 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 12.98 | $ | 12.47 | $ | 10.77 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 13,046 | $ | 9,373 | $ | 211 | 5 | |||||
|
|
|
|
|
|
|||||||
Total return6 |
7.51 | % | 18.26 | % | 7.70 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.05 | %7 | 0.05 | %7 | 0.05 | %8,9 | ||||||
Net investment income (loss)3 |
1.22 | % | 1.03 | % | (0.05 | %)8 | ||||||
Series portfolio turnover10 |
30 | % | 22 | % | | 11 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
0.64 | %7 | 1.43 | %7 | 1,967 | %8,9,12 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
4Less than $0.01.
5Represents the whole number without rounding to the 000s.
6Represents aggregate total return for the periods indicated. Total return would have been lower had certain expenses not been reimbursed. Periods less than one year are not annualized.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
8Annualized.
9Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.84% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
10Reflects activity of the Series and does not include the activity of the Underlying Series.
11Less than 1%.
12The increase to the expense ratios (to average net assets) is largely due to the small net assets in each class.
The accompanying notes are an integral part of the financial statements.
53
Financial Highlights
TARGET 2030 SERIES CLASS K | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 11.40 | $ | 9.94 | $ | 10.02 | $ | 10.15 | $ | 8.85 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.10 | 0.10 | 0.14 | 0.16 | 0.08 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.73 | 1.86 | 0.66 | 0.16 | 1.36 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.83 | 1.96 | 0.80 | 0.32 | 1.44 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.35 | ) | (0.15 | ) | (0.17 | ) | (0.15 | ) | (0.11 | ) | ||||||||||
From net realized gain on investments |
(0.36 | ) | (0.35 | ) | (0.71 | ) | (0.30 | ) | (0.03 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.71 | ) | (0.50 | ) | (0.88 | ) | (0.45 | ) | (0.14 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 11.52 | $ | 11.40 | $ | 9.94 | $ | 10.02 | $ | 10.15 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year |
$ | 118,788 | $ | 91,676 | $ | 67,510 | $ | 63,436 | $ | 66,235 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
7.67 | % | 20.56 | % | 9.12 | % | 3.15 | % | 16.34 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.30 | %4 | 0.30 | %4 | 0.30 | %5 | 0.30 | %6 | 0.29 | %7,8 | ||||||||||
Net investment income2 |
0.87 | % | 0.90 | % | 1.50 | % | 1.58 | % | 0.87 | % | ||||||||||
Series portfolio turnover9 |
27 | % | 9 | % | 62 | % | 40 | % | 15 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
|
0.03
|
%4
|
|
0.05
|
%4
|
|
0.09
|
%5
|
|
0.11
|
%6
|
|
0.20
|
%7
| ||||||
TARGET 2030 SERIES CLASS R | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 11.31 | $ | 9.87 | $ | 9.96 | $ | 10.09 | $ | 8.83 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.07 | 0.07 | 0.09 | 0.11 | 0.06 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.67 | 1.85 | 0.68 | 0.19 | 1.35 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.74 | 1.92 | 0.77 | 0.30 | 1.41 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.32 | ) | (0.13 | ) | (0.15 | ) | (0.13 | ) | (0.12 | ) | ||||||||||
From net realized gain on investments |
(0.36 | ) | (0.35 | ) | (0.71 | ) | (0.30 | ) | (0.03 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.68 | ) | (0.48 | ) | (0.86 | ) | (0.43 | ) | (0.15 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 11.37 | $ | 11.31 | $ | 9.87 | $ | 9.96 | $ | 10.09 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year |
$ | 20,894 | $ | 28,034 | $ | 18,759 | $ | 9,243 | $ | 7,162 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
6.90 | % | 20.19 | % | 8.84 | % | 2.94 | % | 16.01 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.55 | %4 | 0.55 | %4 | 0.55 | %5 | 0.55 | %6 | 0.54 | %7,8 | ||||||||||
Net investment income2 |
0.62 | % | 0.63 | % | 0.94 | % | 1.11 | % | 0.68 | % | ||||||||||
Series portfolio turnover9 |
27 | % | 9 | % | 62 | % | 40 | % | 15 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.03 | %4 | 0.05 | %4 | 0.09 | %5 | 0.11 | %6 | 0.18 | %7 |
1Calculated based on average shares outstanding during the years.
2Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
4Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.84% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.83% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.84% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.83% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.85% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
8During the year ended October 31, 2010, due to the timing of the renewal of the Series distribution plan under Rule 12b-1, the Series incurred approximately 11 months of distribution expense. The expense ratio would have been higher and the net investment income ratio and total return would have been lower had the Series incurred a full year of distribution expense.
9Reflects activity of the Series and does not include the activity of the Underlying Series.
The accompanying notes are an integral part of the financial statements.
54
Financial Highlights
TARGET 2030 SERIES CLASS I | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 11.48 | $ | 10.01 | $ | 10.09 | $ | 10.21 | $ | 8.90 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.14 | 0.12 | 0.17 | 0.07 | 0.13 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.73 | 1.88 | 0.65 | 0.28 | 1.35 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.87 | 2.00 | 0.82 | 0.35 | 1.48 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.38 | ) | (0.18 | ) | (0.19 | ) | (0.17 | ) | (0.14 | ) | ||||||||||
From net realized gain on investments |
(0.36 | ) | (0.35 | ) | (0.71 | ) | (0.30 | ) | (0.03 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.74 | ) | (0.53 | ) | (0.90 | ) | (0.47 | ) | (0.17 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 11.61 | $ | 11.48 | $ | 10.01 | $ | 10.09 | $ | 10.21 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 58,075 | $ | 63,662 | $ | 37,832 | $ | 20,249 | $ | 2,932 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
7.95 | % | 20.81 | % | 9.36 | % | 3.47 | % | 16.76 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.05 | %4 | 0.05 | %4 | 0.05 | %5 | 0.05 | %6 | 0.05 | %7 | ||||||||||
Net investment income2 |
1.23 | % | 1.14 | % | 1.78 | % | 0.74 | % | 1.34 | % | ||||||||||
Series portfolio turnover8 |
27 | % | 9 | % | 62 | % | 40 | % | 15 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.03 | %4 | 0.05 | %4 | 0.09 | %5 | 0.12 | %6 | 0.22 | %7 |
1Calculated based on average shares outstanding during the years.
2Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
4Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.84% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.83% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.84% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.83% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.85% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
8Reflects activity of the Series and does not include the activity of the Underlying Series.
The accompanying notes are an integral part of the financial statements.
55
Financial Highlights
TARGET 2035 SERIES CLASS K | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 13.22 | $ | 10.92 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from investment operations: |
||||||||||||
Net investment income (loss)2,3 |
0.06 | 0.08 | (0.01 | ) | ||||||||
Net realized and unrealized gain on Underlying Series |
0.99 | 2.35 | 0.93 | 4 | ||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
1.05 | 2.43 | 0.92 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.46 | ) | (0.13 | ) | | |||||||
From net realized gain on investments |
(0.10 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.56 | ) | (0.13 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 13.71 | $ | 13.22 | $ | 10.92 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 5,378 | $ | 465 | $ | 15,034 | 5 | |||||
|
|
|
|
|
|
|||||||
Total return6 |
8.17 | % | 22.42 | % | 9.20 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.30 | %7 | 0.30 | %7 | 0.30 | %8,9 | ||||||
Net investment income (loss)3 |
0.44 | % | 0.66 | % | (0.30 | %)8 | ||||||
Series portfolio turnover10 |
24 | % | 18 | % | | 11 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
|
0.83
|
%7
|
|
9.70
|
%7
|
|
4,581
|
%8,9,12
| ||||
TARGET 2035 SERIES CLASS R | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 13.25 | $ | 10.91 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from investment operations: |
||||||||||||
Net investment income (loss)2,3 |
0.07 | | 13 | (0.02 | ) | |||||||
Net realized and unrealized gain on Underlying Series |
0.93 | 2.44 | 0.93 | 4 | ||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
1.00 | 2.44 | 0.91 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.43 | ) | (0.10 | ) | | |||||||
From net realized gain on investments |
(0.10 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.53 | ) | (0.10 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 13.72 | $ | 13.25 | $ | 10.91 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 2,911 | $ | 1,172 | $ | 109 | 5 | |||||
|
|
|
|
|
|
|||||||
Total return6 |
7.82 | % | 22.50 | % | 9.10 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.55 | %7 | 0.55 | %7 | 0.55 | %8,9 | ||||||
Net investment income (loss)3 |
0.49 | % | 0.17 | % | (0.55 | %)8 | ||||||
Series portfolio turnover10 |
24 | % | 18 | % | | 11 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
0.88 | %7 | 2.38 | %7 | 9,077 | %8,9,12 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
4Amount does not coincide with the amount shown on the Statements of Changes in Net Assets due to the timing of capital stock transactions and when the Series experienced unrealized gains and losses during the period.
5Represents the whole number without rounding to the 000s.
6Represents aggregate total return for the periods indicated. Total return would have been lower had certain expenses not been reimbursed. Periods less than one year are not annualized.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
8Annualized.
9Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.84% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
10Reflects activity of the Series and does not include the activity of the Underlying Series.
11Less than 1%.
12The increase to the expense ratios (to average net assets) is largely due to the small net assets in each class.
13Less than $0.01.
The accompanying notes are an integral part of the financial statements.
56
Financial Highlights
TARGET 2035 SERIES CLASS I | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 13.25 | $ | 10.92 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income from investment operations: |
||||||||||||
Net investment income2,3 |
0.12 | 0.09 | | 4 | ||||||||
Net realized and unrealized gain on Underlying Series |
0.96 | 2.38 | 0.92 | 5 | ||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
1.08 | 2.47 | 0.92 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.48 | ) | (0.14 | ) | | |||||||
From net realized gain on investments |
(0.10 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.58 | ) | (0.14 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 13.75 | $ | 13.25 | $ | 10.92 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 9,487 | $ | 6,322 | $ | 213 | 6 | |||||
|
|
|
|
|
|
|||||||
Total return7 |
8.43 | % | 22.81 | % | 9.20 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.05 | %8 | 0.05 | %8 | 0.05 | %9,10 | ||||||
Net investment income (loss)3 |
0.88 | % | 0.75 | % | (0.05 | %)9 | ||||||
Series portfolio turnover11 |
24 | % | 18 | % | | 12 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
0.91 | %8 | 2.40 | %8 | 7,930 | %9,10,13 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
4Less than $0.01.
5Amount does not coincide with the amount shown on the Statements of Changes in Net Assets due to the timing of capital stock transactions and when the Series experienced unrealized gains and losses during the period.
6Represents the whole number without rounding to the 000s.
7Represents aggregate total return for the periods indicated. Total return would have been lower had certain expenses not been reimbursed. Periods less than one year are not annualized.
8Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
9Annualized.
10Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.84% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
11Reflects activity of the Series and does not include the activity of the Underlying Series.
12Less than 1%.
13The increase to the expense ratios (to average net assets) is largely due to the small net assets in each class.
The accompanying notes are an integral part of the financial statements.
57
Financial Highlights
TARGET 2040 SERIES CLASS K | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 12.47 | $ | 10.29 | $ | 10.10 | $ | 10.20 | $ | 8.79 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.07 | 0.06 | 0.07 | 0.09 | 0.04 | |||||||||||||||
Net realized and unrealized gain (loss) on Underlying Series |
0.94 | 2.43 | 0.74 | (0.02 | ) | 1.46 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
1.01 | 2.49 | 0.81 | 0.07 | 1.50 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.48 | ) | (0.07 | ) | (0.08 | ) | (0.08 | ) | (0.06 | ) | ||||||||||
From net realized gain on investments |
(0.50 | ) | (0.24 | ) | (0.54 | ) | (0.09 | ) | (0.03 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.98 | ) | (0.31 | ) | (0.62 | ) | (0.17 | ) | (0.09 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 12.50 | $ | 12.47 | $ | 10.29 | $ | 10.10 | $ | 10.20 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year |
$ | 83,655 | $ | 67,576 | $ | 51,273 | $ | 39,853 | $ | 42,417 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return4 |
8.61 | % | 24.81 | % | 8.97 | % | 0.70 | % | 17.10 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.30 | %5 | 0.30 | %5 | 0.30 | %6 | 0.30 | %7 | 0.29 | %8,9 | ||||||||||
Net investment income2 |
0.54 | % | 0.49 | % | 0.70 | % | 0.88 | % | 0.43 | % | ||||||||||
Series portfolio turnover10 |
22 | % | 13 | % | 24 | % | 19 | % | 4 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
|
0.06
|
%5
|
|
0.09
|
%5
|
|
0.14
|
%6
|
|
0.17
|
%7
|
|
0.32
|
%8
| ||||||
TARGET 2040 SERIES CLASS R | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 12.39 | $ | 10.22 | $ | 10.04 | $ | 10.14 | $ | 8.76 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.03 | 0.02 | 0.05 | 0.05 | 0.04 | |||||||||||||||
Net realized and unrealized gain (loss) on Underlying Series |
0.86 | 2.42 | 0.73 | | 3 | 1.43 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.89 | 2.44 | 0.78 | 0.05 | 1.47 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.45 | ) | (0.03 | ) | (0.06 | ) | (0.06 | ) | (0.06 | ) | ||||||||||
From net realized gain on investments |
(0.50 | ) | (0.24 | ) | (0.54 | ) | (0.09 | ) | (0.03 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.95 | ) | (0.27 | ) | (0.60 | ) | (0.15 | ) | (0.09 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 12.33 | $ | 12.39 | $ | 10.22 | $ | 10.04 | $ | 10.14 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 10,469 | $ | 15,993 | $ | 11,827 | $ | 11,475 | $ | 8,168 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return4 |
7.60 | % | 24.50 | % | 8.67 | % | 0.50 | % | 16.85 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.55 | %5 | 0.55 | %5 | 0.55 | %6 | 0.55 | %7 | 0.52 | %8,9 | ||||||||||
Net investment income2 |
0.23 | % | 0.20 | % | 0.54 | % | 0.52 | % | 0.40 | % | ||||||||||
Series portfolio turnover10 |
22 | % | 13 | % | 24 | % | 19 | % | 4 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.06 | %5 | 0.09 | %5 | 0.14 | %6 | 0.17 | %7 | 0.31 | %8 |
1Calculated based on average shares outstanding during the years.
2Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3Less than $0.01.
4Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.84% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.84%.
8Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.85%.
9During the year ended October 31, 2010, due to the timing of the renewal of the Series distribution plan under Rule 12b-1, the Series incurred approximately 11 months of distribution expense. The expense ratio would have been higher and the net investment income ratio and total return would have been lower had the Series incurred a full year of distribution expense.
10Reflects activity of the Series and does not include the activity of the Underlying Series.
The accompanying notes are an integral part of the financial statements.
58
Financial Highlights
TARGET 2040 SERIES CLASS I | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 12.55 | $ | 10.35 | $ | 10.16 | $ | 10.26 | $ | 8.83 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.10 | 0.08 | 0.10 | 0.04 | 0.08 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
0.94 | 2.45 | 0.74 | 0.06 | 1.46 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
1.04 | 2.53 | 0.84 | 0.10 | 1.54 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.51 | ) | (0.09 | ) | (0.11 | ) | (0.11 | ) | (0.08 | ) | ||||||||||
From net realized gain on investments |
(0.50 | ) | (0.24 | ) | (0.54 | ) | (0.09 | ) | (0.03 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(1.01 | ) | (0.33 | ) | (0.65 | ) | (0.20 | ) | (0.11 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 12.58 | $ | 12.55 | $ | 10.35 | $ | 10.16 | $ | 10.26 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year |
$ | 32,952 | $ | 33,545 | $ | 20,194 | $ | 11,298 | $ | 1,066 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
8.81 | % | 25.16 | % | 9.23 | % | 0.93 | % | 17.52 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.05 | %4 | 0.05 | %4 | 0.05 | %5 | 0.05 | %6 | 0.05 | %7 | ||||||||||
Net investment income2 |
0.79 | % | 0.71 | % | 0.99 | % | 0.35 | % | 0.84 | % | ||||||||||
Series portfolio turnover8 |
22 | % | 13 | % | 24 | % | 19 | % | 4 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.06 | %4 | 0.09 | %4 | 0.14 | %5 | 0.18 | %6 | 0.36 | %7 |
1Calculated based on average shares outstanding during the years.
2Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
4Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.81% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.82% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratios of the Underlying Series were 0.82% for Manning & Napier Pro-Blend® Extended Term Series - Class I and 0.84% for Manning & Napier Pro-Blend® Maximum Term Series - Class I.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.84%.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.85%.
8Reflects activity of the Series and does not include the activity of the Underlying Series.
The accompanying notes are an integral part of the financial statements.
59
Financial Highlights
TARGET 2045 SERIES CLASS K | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 13.73 | $ | 11.01 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from investment operations: |
||||||||||||
Net investment income (loss)2,3 |
0.03 | 0.03 | (0.01 | ) | ||||||||
Net realized and unrealized gain on Underlying Series |
1.15 | 2.74 | 1.02 | 4 | ||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
1.18 | 2.77 | 1.01 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.52 | ) | (0.05 | ) | | |||||||
From net realized gain on investments |
(0.07 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.59 | ) | (0.05 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 14.32 | $ | 13.73 | $ | 11.01 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 3,041 | $ | 234 | $ | 3,320 | 5 | |||||
|
|
|
|
|
|
|||||||
Total return6 |
8.90 | % | 25.23 | % | 10.10 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.30 | %7 | 0.30 | %7 | 0.30 | %8,9 | ||||||
Net investment income (loss)3 |
0.23 | % | 0.26 | % | (0.30 | %)8 | ||||||
Series portfolio turnover10 |
48 | % | 20 | % | | 11 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
|
1.95
|
%7
|
|
17.80
|
%7
|
|
3,204
|
%8,9,12
| ||||
TARGET 2045 SERIES CLASS R | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 13.66 | $ | 10.99 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from investment operations: |
||||||||||||
Net investment income (loss)2,3 |
0.02 | 0.01 | (0.02 | ) | ||||||||
Net realized and unrealized gain on Underlying Series |
1.13 | 2.71 | 1.01 | 4 | ||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
1.15 | 2.72 | 0.99 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.49 | ) | (0.05 | ) | | |||||||
From net realized gain on investments |
(0.07 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.56 | ) | (0.05 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 14.25 | $ | 13.66 | $ | 10.99 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 1,825 | $ | 618 | $ | 110 | 5 | |||||
|
|
|
|
|
|
|||||||
Total return6 |
8.71 | % | 24.87 | % | 9.90 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.55 | %7 | 0.55 | %7 | 0.55 | %8,9 | ||||||
Net investment income (loss)3 |
0.12 | % | 0.11 | % | (0.55 | %)8 | ||||||
Series portfolio turnover10 |
48 | % | 20 | % | | 11 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
2.06 | %7 | 9.07 | %7 | 8,326 | %8,9,12 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3 Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
4Amount does not coincide with the amount shown on the Statements of Changes in Net Assets due to the timing of capital stock transactions and when the Series experienced unrealized gains and losses during the period.
5Represents the whole number without rounding to the 000s.
6Represents aggregate total return for the periods indicated. Total return would have been lower had certain expenses not been reimbursed. Periods less than one year are not annualized.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.82%.
8Annualized.
9Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.84%.
10Reflects activity of the Series and does not include the activity of the Underlying Series.
11Less than 1%.
12The increase to the expense ratios (to average net assets) is largely due to the small net assets in each class.
The accompanying notes are an integral part of the financial statements.
60
Financial Highlights
TARGET 2045 SERIES CLASS I | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 13.75 | $ | 11.01 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income from investment operations: |
||||||||||||
Net investment income2,3 |
0.08 | 0.06 | | 4 | ||||||||
Net realized and unrealized gain on Underlying Series |
1.14 | 2.74 | 1.01 | 5 | ||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
1.22 | 2.80 | 1.01 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.55 | ) | (0.06 | ) | | |||||||
From net realized gain on investments |
(0.07 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.62 | ) | (0.06 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 14.35 | $ | 13.75 | $ | 11.01 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 2,894 | $ | 1,983 | $ | 214 | 6 | |||||
|
|
|
|
|
|
|||||||
Total return7 |
9.15 | % | 25.58 | % | 10.10 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.05 | %8 | 0.05 | %8 | 0.05 | %9,10 | ||||||
Net investment income (loss)3 |
0.57 | % | 0.46 | % | (0.05 | %)9 | ||||||
Series portfolio turnover11 |
48 | % | 20 | % | | 12 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
2.14 | %8 | 6.82 | %8 | 7,036 | %9,10,13 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
4Less than $0.01.
5Amount does not coincide with the amount shown on the Statements of Changes in Net Assets due to the timing of capital stock transactions and when the Series experienced unrealized gains and losses during the period.
6Represents the whole number without rounding to the 000s.
7Represents aggregate total return for the periods indicated. Total return would have been lower had certain expenses not been reimbursed. Periods less than one year are not annualized.
8Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.82%.
9Annualized.
10Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.84%.
11Reflects activity of the Series and does not include the activity of the Underlying Series.
12Less than 1%.
13The increase to the expense ratios (to average net assets) is largely due to the small net assets in each class.
The accompanying notes are an integral part of the financial statements.
61
Financial Highlights
TARGET 2050 SERIES CLASS K | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 13.52 | $ | 10.81 | $ | 10.20 | $ | 10.22 | $ | 8.85 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.05 | 0.05 | 0.07 | 0.09 | 0.03 | |||||||||||||||
Net realized and unrealized gain (loss) on Underlying Series |
1.07 | 2.74 | 0.81 | (0.01 | ) | 1.48 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
1.12 | 2.79 | 0.88 | 0.08 | 1.51 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.54 | ) | (0.05 | ) | (0.08 | ) | (0.08 | ) | (0.06 | ) | ||||||||||
From net realized gain on investments |
(0.37 | ) | (0.03 | ) | (0.19 | ) | (0.02 | ) | (0.08 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.91 | ) | (0.08 | ) | (0.27 | ) | (0.10 | ) | (0.14 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 13.73 | $ | 13.52 | $ | 10.81 | $ | 10.20 | $ | 10.22 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 47,531 | $ | 36,591 | $ | 24,759 | $ | 18,293 | $ | 15,242 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
8.80 | % | 25.99 | % | 9.07 | % | 0.76 | % | 17.16 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.30 | %4 | 0.30 | %4 | 0.30 | %5 | 0.30 | %5 | 0.30 | %6,7 | ||||||||||
Net investment income2 |
0.40 | % | 0.37 | % | 0.69 | % | 0.82 | % | 0.28 | % | ||||||||||
Series portfolio turnover8 |
13 | % | 5 | % | 5 | % | 10 | % | 3 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
|
0.18
|
%4
|
|
0.26
|
%4
|
|
0.43
|
%5
|
|
0.54
|
%5
|
|
1.07
|
%6
| ||||||
TARGET 2050 SERIES CLASS R | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 13.43 | $ | 10.74 | $ | 10.14 | $ | 10.16 | $ | 8.82 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.01 | 0.01 | 0.05 | 0.06 | 0.03 | |||||||||||||||
Net realized and unrealized gain (loss) on Underlying Series |
1.04 | 2.73 | 0.80 | | 9 | 1.44 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
1.05 | 2.74 | 0.85 | 0.06 | 1.47 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.51 | ) | (0.02 | ) | (0.06 | ) | (0.06 | ) | (0.05 | ) | ||||||||||
From net realized gain on investments |
(0.37 | ) | (0.03 | ) | (0.19 | ) | (0.02 | ) | (0.08 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.88 | ) | (0.05 | ) | (0.25 | ) | (0.08 | ) | (0.13 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 13.60 | $ | 13.43 | $ | 10.74 | $ | 10.14 | $ | 10.16 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 5,140 | $ | 5,022 | $ | 3,448 | $ | 2,686 | $ | 2,154 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
8.28 | % | 25.69 | % | 8.75 | % | 0.56 | % | 16.85 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.55 | %4 | 0.55 | %4 | 0.55 | %5 | 0.55 | %5 | 0.53 | %6,7 | ||||||||||
Net investment income2 |
0.10 | % | 0.11 | % | 0.45 | % | 0.55 | % | 0.27 | % | ||||||||||
Series portfolio turnover8 |
13 | % | 5 | % | 5 | % | 10 | % | 3 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.18 | %4 | 0.26 | %4 | 0.43 | %5 | 0.54 | %5 | 1.44 | %6 |
1Calculated based on average shares outstanding during the years.
2Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
4Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.82%.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.84%.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.85%.
7During the year ended October 31, 2010, due to the timing of the renewal of the Series distribution plan under Rule 12b-1, the Series incurred approximately 11 months of distribution expense. The expense ratio would have been higher and the net investment income ratio and total return would have been lower had the Series incurred a full year of distribution expense.
8Reflects activity of the Series and does not include the activity of the Underlying Series.
9Less than $0.01.
The accompanying notes are an integral part of the financial statements.
62
Financial Highlights
TARGET 2050 SERIES CLASS I | FOR THE YEARS ENDED | |||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 13.60 | $ | 10.88 | $ | 10.26 | $ | 10.28 | $ | 8.90 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1,2 |
0.08 | 0.07 | 0.09 | 0.03 | 0.07 | |||||||||||||||
Net realized and unrealized gain on Underlying Series |
1.08 | 2.76 | 0.83 | 0.08 | 1.47 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
1.16 | 2.83 | 0.92 | 0.11 | 1.54 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.57 | ) | (0.08 | ) | (0.11 | ) | (0.11 | ) | (0.08 | ) | ||||||||||
From net realized gain on investments |
(0.37 | ) | (0.03 | ) | (0.19 | ) | (0.02 | ) | (0.08 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.94 | ) | (0.11 | ) | (0.30 | ) | (0.13 | ) | (0.16 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 13.82 | $ | 13.60 | $ | 10.88 | $ | 10.26 | $ | 10.28 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 12,077 | $ | 9,042 | $ | 4,016 | $ | 2,121 | $ | 129 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
9.07 | % | 26.21 | % | 9.39 | % | 0.98 | % | 17.40 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.05 | %4 | 0.05 | %4 | 0.05 | %5 | 0.05 | %5 | 0.05 | %6 | ||||||||||
Net investment income2 |
0.62 | % | 0.57 | % | 0.89 | % | 0.25 | % | 0.76 | % | ||||||||||
Series portfolio turnover7 |
13 | % | 5 | % | 5 | % | 10 | % | 3 | % | ||||||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||||||||||
0.18 | %4 | 0.26 | %4 | 0.43 | %5 | 0.57 | %5 | 1.90 | %6 |
1Calculated based on average shares outstanding during the years.
2Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
3Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed.
4Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.82%.
5Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.84%.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.85%.
7Reflects activity of the Series and does not include the activity of the Underlying Series.
The accompanying notes are an integral part of the financial statements.
63
Financial Highlights
TARGET 2055 SERIES CLASS K | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 13.85 | $ | 11.04 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from investment operations: |
||||||||||||
Net investment income (loss)2,3 |
0.06 | (0.02 | ) | (0.01 | ) | |||||||
Net realized and unrealized gain on Underlying Series |
1.05 | 2.86 | 1.05 | |||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
1.11 | 2.84 | 1.04 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.55 | ) | (0.03 | ) | | |||||||
From net realized gain on investments |
(0.47 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(1.02 | ) | (0.03 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 13.94 | $ | 13.85 | $ | 11.04 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 1,777 | $ | 208 | $ | 214 | 4 | |||||
|
|
|
|
|
|
|||||||
Total return5 |
8.50 | % | 25.79 | % | 10.40 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.30 | %6 | 0.30 | %6 | 0.30 | %7,8 | ||||||
Net investment income (loss)3 |
0.43 | % | (0.17 | %) | (0.30 | %)7 | ||||||
Series portfolio turnover9 |
63 | % | 605 | % | | 10 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
|
4.79
|
%6
|
|
62.25
|
%6
|
|
19,197
|
%7,8,11
| ||||
TARGET 2055 SERIES CLASS R | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 13.77 | $ | 11.03 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from investment operations: |
||||||||||||
Net investment loss2,3 |
0.03 | (0.01 | ) | (0.02 | ) | |||||||
Net realized and unrealized gain on Underlying Series |
1.04 | 2.77 | 1.05 | |||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
1.07 | 2.76 | 1.03 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.54 | ) | (0.02 | ) | | |||||||
From net realized gain on investments |
(0.47 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(1.01 | ) | (0.02 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 13.83 | $ | 13.77 | $ | 11.03 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 515 | $ | 51 | $ | 110 | 4 | |||||
|
|
|
|
|
|
|||||||
Total return5 |
8.21 | % | 25.01 | % | 10.30 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.55 | %6 | 0.55 | %6 | 0.55 | %7,8 | ||||||
Net investment loss3 |
0.24 | % | (0.07 | %) | (0.55 | %)7 | ||||||
Series portfolio turnover9 |
63 | % | 605 | % | | 10 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average net assets) would have been increased by the following amounts: | ||||||||||||
5.39 | %6 | 129.56 | %6 | 19,015 | %7,8,11 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
4Represents the whole number without rounding to the 000s.
5Represents aggregate total return for the periods indicated. Total return would have been lower had certain expenses not been reimbursed. Periods less than one year are not annualized.
6Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.82%.
7Annualized.
8Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.84%.
9Reflects activity of the Series and does not include the activity of the Underlying Series.
10The Series had no portfolio turnover for the period.
11The increase to the expense ratios (to average net assets) is largely due to the small net assets in each class.
The accompanying notes are an integral part of the financial statements.
64
Financial Highlights
TARGET 2055 SERIES CLASS I | FOR THE YEARS ENDED | FOR THE PERIOD | ||||||||||
10/31/14 | 10/31/13 | 6/25/121 TO 10/31/12 | ||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 13.94 | $ | 11.05 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income from investment operations: |
||||||||||||
Net investment income2,3 |
0.08 | | 4 | | 4 | |||||||
Net realized and unrealized gain (loss) on Underlying Series |
1.07 | 2.94 | 1.05 | |||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
1.15 | 2.94 | 1.05 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.57 | ) | (0.05 | ) | | |||||||
From net realized gain on investments |
(0.47 | ) | | | ||||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(1.04 | ) | (0.05 | ) | | |||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 14.05 | 13.94 | 11.05 | ||||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 872 | $ | 366 | $ | 215 | 5 | |||||
|
|
|
|
|
|
|||||||
Total return6 |
8.75 | % | 26.67 | % | 10.50 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses* |
0.05 | %7 | 0.05 | %7 | 0.05 | %8,9 | ||||||
Net investment income (loss)3 |
0.57 | % | (0.03 | %) | (0.05 | %)8 | ||||||
Series portfolio turnover10 |
63 | % | 605 | % | | 11 | ||||||
*The investment advisor paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratios (to average the expense ratios (to average net assets) would have been increased by the following amount: | ||||||||||||
7.80 | %7 | 8.21 | %7 | 19,201 | %8,9,12 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3 Net investment income is affected by the timing of distributions from the Underlying Series in which the Series invest. The ratios do not include net investment income of the Underlying Series in which the Series invests.
4Less than $0.01.
5Represents the whole number without rounding to the 000s.
6 Represents aggregate total return for the periods indicated. Total return would have been lower had certain expenses not been reimbursed. Periods less than one year are not annualized.
7Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.82%. 8Annualized.
9Expense ratios do not include expenses of the Underlying Series in which the Series invests. The expense ratio of the Underlying Series was 0.84%.
10Reflects activity of the Series and does not include the activity of the Underlying Series.
11The Series had no portfolio turnover for the period.
12The increase to the expense ratios (to average net assets) is largely due to the small net assets in each class.
The accompanying notes are an integral part of the financial statements.
65
Notes to Financial Statements
1. | Organization |
Target Income Series, Target 2010 Series, Target 2015 Series, Target 2020 Series, Target 2025 Series, Target 2030 Series, Target 2035 Series, Target 2040 Series, Target 2045 Series, Target 2050 Series and Target 2055 Series (each the Series) are no-load diversified series of Manning & Napier Fund, Inc. (the Fund). The Fund is organized in Maryland and is registered under the Investment Company Act of 1940 (the 1940 Act), as amended, as an open-end management investment company.
Each Series seeks to achieve its investment objectives by investing in a combination of other Manning & Napier mutual funds (the Underlying Series) according to a target asset allocation strategy. The Series are designed to provide single investment portfolios that adjust over time to meet the changing risk and return objectives of investors over their expected investment horizon. As the target retirement date approaches, the Series portfolios become more conservative with a larger fixed-income investment component. The financial statements of the Underlying Series should be read in conjunction with the Series financial statements.
Each Series is authorized to issue three classes of shares (Class K, R and I). Each class of shares is substantially the same, except that class-specific distribution and shareholder servicing expenses are borne by the specific class of shares to which they relate. Class C Shares of the Target Series were liquidated by February 21, 2014.
The Funds Advisor is Manning & Napier Advisors, LLC (the Advisor). Shares of each Series are offered to investors and employees of the Advisor and its affiliates. The total authorized capital stock of the Fund consists of 15 billion shares of common stock each having a par value of $0.01. As of October 31, 2014, 10.6 billion shares have been designated in total among 42 series, 40 million have been designated in each of the Series for Class K and R common stock and 100 million have been designated in each of the Series for Class I common stock.
2. | Significant Accounting Policies |
The following is a summary of significant accounting policies followed by the Series. Each Series is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946 - Investment Companies, which is part of accounting principles generally accepted in the United States of America (GAAP).
Security Valuation
Investments in the Underlying Series are valued at their net asset value per share on valuation date. In the absence of the availability of a net asset value per share on the Underlying Series, security valuations may be determined in good faith by the Advisor under procedures approved by and under the general supervision and responsibility of the Funds Board of Directors (the Board).
Volume and level of activity in established markets for an asset or liability are evaluated to determine whether recent transactions and quoted prices are determinative of fair value. Where there have been significant decreases in volume and level of activity, further analysis and adjustment may be necessary to estimate fair value. The Series measure fair value in these instances by the use of inputs and valuation techniques which may be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry and/or expectation of future cash flows. As a result of trading in relatively thin markets and/or markets that experience significant volatility, the prices used by the Series to value these securities may differ from the value that would be realized if these securities were sold, and the differences could be material.
Securities for which representative valuations or prices are not available from the Series pricing service may be valued at fair value as determined in good faith by the Advisor under procedures approved by and under the general supervision and responsibility of the Board. Due to the inherent uncertainty of valuations of such securities, the fair value may differ significantly from the values that would have been used had a ready market for such securities existed. If trading or events occurring after the close of the principal market in which securities are traded are expected to materially affect the value of those securities, then they may be valued at their fair value, taking this trading or these events into account.
66
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Valuation (continued)
Various inputs are used in determining the value of the Series assets or liabilities carried at fair value. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical assets and liabilities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 includes significant unobservable inputs (including the Series own assumptions in determining the fair value of investments). A financial instruments level within the fair value hierarchy is based on the lowest level on any input both individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuation levels used for major security types as of October 31, 2014 in valuing the Series assets or liabilities carried at fair value:
TARGET INCOME SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Mutual fund |
$ | 77,491,610 | $ | 77,491,610 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 77,491,610 | $ | 77,491,610 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
TARGET 2010 SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Mutual funds |
$ | 49,064,839 | $ | 49,064,839 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 49,064,839 | $ | 49,064,839 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
TARGET 2015 SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Mutual funds |
$ | 9,592,749 | $ | 9,592,749 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 9,592,749 | $ | 9,592,749 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
TARGET 2020 SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Mutual funds |
$ | 179,666,636 | $ | 179,666,636 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 179,666,636 | $ | 179,666,636 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
TARGET 2025 SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Mutual funds |
$ | 24,373,883 | $ | 24,373,883 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 24,373,883 | $ | 24,373,883 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
TARGET 2030 SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Mutual funds |
$ | 197,819,371 | $ | 197,819,371 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 197,819,371 | $ | 197,819,371 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
67
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Valuation (continued)
TARGET 2035 SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Mutual funds |
$ | 17,804,412 | $ | 17,804,412 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 17,804,412 | $ | 17,804,412 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
TARGET 2040 SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Mutual funds |
$ | 133,429,920 | $ | 133,429,920 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 133,429,920 | $ | 133,429,920 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
TARGET 2045 SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Mutual fund |
$ | 7,789,209 | $ | 7,789,209 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 7,789,209 | $ | 7,789,209 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
TARGET 2050 SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Mutual fund |
$ | 64,776,991 | $ | 64,776,991 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 64,776,991 | $ | 64,776,991 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
TARGET 2055 SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Mutual fund |
$ | 3,183,296 | $ | 3,183,296 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 3,183,296 | $ | 3,183,296 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
There were no Level 2 or Level 3 securities held by any of the Series as of October 31, 2013 or October 31, 2014.
The Funds policy is to recognize transfers in and transfers out of the valuation levels as of the beginning of the reporting period. There were no transfers between Level 1 and Level 2 during the year ended October 31, 2014.
Security Transactions, Investment Income and Expenses
Security transactions are accounted for on trade date. Dividend income is recorded on the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Income and capital gains distributions from the Underlying Series, if any, are recorded on the ex-dividend date.
Expenses are recorded on an accrual basis. Most expenses of the Fund can be attributed to a specific series. Expenses which cannot be directly attributed are apportioned among the series in the Fund in such a manner as deemed equitable by the Funds Board, taking into consideration, among other things, the nature and type of expense. Expenses included in the accompanying statements of operations do not include any expense of the Underlying Series.
Income, expenses (other than class specific expenses), and realized and unrealized gains and losses are prorated among the classes based on the relative net assets of each class. Class specific expenses are directly charged to that Class.
68
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Transactions, Investment Income and Expenses (continued)
The Series use the identified cost method for determining realized gain or loss on investments for both financial statement and federal income tax reporting purposes.
Federal Taxes
Each Series policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. The Series are not subject to federal income tax or excise tax to the extent that each Series distributes to shareholders each year its taxable income, including any net realized gains on investments, in accordance with requirements of the Internal Revenue Code. Accordingly, no provision for federal income tax or excise tax has been made in the financial statements.
Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is more likely than not to be sustained assuming examination by taxing authorities. At October 31, 2014, the Series have recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns.
The Series file income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions, as required. No income tax returns are currently under investigation. The statute of limitations on Target Income Series, Target 2010 Series, Target 2020 Series, Target 2030 Series, Target 2040 Series, and Target 2050 Series tax returns remains open for the years ended October 31, 2011 through October 31, 2014. The statute of limitations on Target 2015 Series, Target 2025 Series, Target 2035 Series, Target 2045 Series, and Target 2055 Series remains open for the years ended October 31, 2013 and October 31, 2014. The Series is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Foreign Taxes
Based on the Series understanding of the tax rules and rates related to income, gains and currency purchase/ repatriation transactions for foreign jurisdictions in which they invest, the Series will provide for foreign taxes, and where appropriate, deferred foreign tax.
Distributions of Income and Gains
Distributions to shareholders of net investment income are made semi-annually. Distributions of net realized gains are made annually. An additional distribution may be necessary to avoid taxation of a Series. Distributions are recorded on the ex-dividend date.
Indemnifications
The Funds organizational documents provide former and current directors and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
69
Notes to Financial Statements (continued)
3. | Transactions with Affiliates |
The Fund has an Investment Advisory Agreement (the Agreement) with the Advisor, for which the Advisor does not receive an advisory fee for the services it performs for the Series. However, the Advisor is entitled to receive an advisory fee from each of the Underlying Series in which the Series invest.
Under the Agreement, personnel of the Advisor provide the Series with advice and assistance in the choice of investments and the execution of securities transactions, and otherwise maintain the Series organization. The Advisor also provides the Fund with necessary office space and fund administration and support services. The salaries of all officers of the Fund (except a percentage of the Funds Chief Compliance Officers salary, which is paid by the Fund), and of all Directors who are affiliated persons of the Fund, or of the Advisor, and all personnel of the Fund, or of the Advisor, performing services relating to research, statistical and investment activities, are paid by the Advisor. Each non-affiliated Director receives an annual stipend, which is allocated among all the active series of the Fund. In addition, these Directors also receive a fee per Board meeting attended plus a fee for each committee meeting attended and are reimbursed for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings. The Fund also has an Audit Committee Chair, who receives an additional annual stipend for this role.
The Advisor has contractually agreed, until at least February 28, 2020 for Target Income Series, Target 2010 Series, Target 2020 Series, Target 2030 Series, Target 2040 Series, Target 2050 Series and until at least February 28, 2023 for Target 2015 Series, Target 2025 Series, Target 2035 Series, Target 2045 Series, and Target 2055 Series, to limit each class total direct annual fund operating expenses for the Series at no more than 0.05% for each class, exclusive of distribution and service fees, of average daily net assets each year. The Advisors agreement to limit each class operating expenses is limited to direct operating expenses and, therefore, does not apply to the indirect expenses incurred by the Series through their investments in the Underlying Series. For the year ended October 31, 2014, the Advisor reimbursed expenses of $92,364 for Target Income Series, $100,691 for Target 2010 Series, $111,599 for Target 2015 Series, $55,016 for Target 2020 Series, $111,347 for Target 2025 Series, $58,298 for Target 2030 Series, $112,361 for Target 2035 Series, $77,349 for Target 2040 Series, $113,262 for Target 2045 Series, $103,243 for Target 2050 Series, and $116,109 for Target 2055 Series, which is included as a reduction of expenses on the Statements of Operations. The Advisor is not eligible to recoup any expenses that have been reimbursed in prior years.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate of the Advisor, acts as distributor for the Funds shares. Each Series compensates the distributor for distributing and servicing the Series Class K, Class R and Class C* shares pursuant to a distribution plan adopted under Rule 12b-1 of the 1940 Act, regardless of expenses actually incurred. Under the agreement, each Series pays distribution and services fees to the distributor at an annual rate of 0.25% of average daily net assets attributable to Class K shares, 0.50% of average daily net assets attributable to Class R shares, and 1.00% of average daily net assets attributable to Class C* shares. There are no distribution and services fees on the Class I shares of each Series. The fees are accrued daily and paid monthly.
*Class C Shares of the Target Series were liquidated by February 21, 2014.
The Advisor has agreements with BNY Mellon Investment Servicing (U.S.) Inc. (BNY) under which BNY serves as sub-accountant services agent and sub-transfer agent. The fee rates for these Series are as follows: An annual fee related to fund accounting and administration of 0.0025% of the average daily net assets with an annual base fee of $40,500 per Target Series. Transfer Agent fees are charged to the Fund on a per account basis. Additionally, certain cusip-based and out-of-pocket expenses are charged. Effective October 1, 2012, the aforementioned agreements were modified to reduce the annual fee related to fund accounting and administration, as well as transfer agent fees by 10%, excluding out-of-pocket expenses, until at least October 1, 2015.
Expenses not directly attributable to a series are allocated based on each series relative net assets or number of accounts, depending on the expense.
70
Notes to Financial Statements (continued)
4. | Purchases and Sales of Securities |
For the year ended October 31, 2014, purchases and sales of Underlying Series were as follows:
SERIES | PURCHASES | SALES | ||||||
Target Income Series |
$ | 16,199,354 | $ | 11,244,211 | ||||
Target 2010 Series |
$ | 19,587,833 | $ | 21,382,183 | ||||
Target 2015 Series |
$ | 7,437,640 | $ | 3,539,275 | ||||
Target 2020 Series |
$ | 67,091,319 | $ | 71,519,400 | ||||
Target 2025 Series |
$ | 17,556,403 | $ | 5,417,844 | ||||
Target 2030 Series |
$ | 70,151,178 | $ | 52,380,232 | ||||
Target 2035 Series |
$ | 12,894,857 | $ | 3,035,996 | ||||
Target 2040 Series |
$ | 48,307,007 | $ | 27,614,368 | ||||
Target 2045 Series |
$ | 7,057,256 | $ | 2,568,075 | ||||
Target 2050 Series |
$ | 22,945,682 | $ | 7,566,175 | ||||
Target 2055 Series |
$ | 3,821,016 | $ | 1,253,846 |
5. | Investments in Affiliated Issuers |
A summary of the Series transactions in the shares of affiliated issuers during the year ended October 31, 2014 is set forth below:
TARGET INCOME SERIES |
VALUE AT 10/31/13 |
PURCHASE COST |
SALES PROCEEDS |
VALUE AT 10/31/14 |
SHARES HELD 10/31/14 |
DIVIDEND INCOME |
DISTRIBUTIONS NET REALIZED |
|||||||||||||||||||||
Manning & Napier Pro-Blend® Conservative Term Series - Class I |
$ | 73,657,195 | $ | 16,199,354 | $ | 11,244,211 | $ | 77,491,610 | 6,937,476 | $ | 1,474,478 | $ | 5,784,159 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 73,657,195 | $ | 16,199,354 | $ | 11,244,211 | $ | 77,491,610 | $ | 1,474,478 | $ | 5,784,159 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2010 SERIES |
VALUE AT 10/31/13 |
PURCHASE COST |
SALES PROCEEDS |
VALUE AT 10/31/14 |
SHARES HELD 10/31/14 |
DIVIDEND INCOME |
DISTRIBUTIONS NET REALIZED |
|||||||||||||||||||||
Manning & Napier Pro-Blend® Moderate Term Series - Class I |
$ | 21,200,889 | $ | 2,509,289 | $ | 13,319,189 | $ | 9,735,573 | 853,998 | $ | 217,567 | $ | 1,783,078 | |||||||||||||||
Manning & Napier Pro-Blend® Conservative Term Series - Class I |
30,393,045 | 17,078,544 | 8,062,994 | 39,329,266 | 3,520,973 | 671,692 | 1,925,690 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 51,593,934 | $ | 19,587,833 | $ | 21,382,183 | $ | 49,064,839 | $ | 889,259 | $ | 3,708,768 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
71
Notes to Financial Statements (continued)
5. | Investments in Affiliated Issuers (continued) |
TARGET 2015 SERIES |
VALUE AT 10/31/13 |
PURCHASE COST |
SALES PROCEEDS |
VALUE AT 10/31/14 |
SHARES HELD 10/31/14 |
DIVIDEND INCOME |
DISTRIBUTIONS NET REALIZED |
|||||||||||||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
$ | 572,158 | $ | 396,100 | $ | 470,711 | $ | 481,989 | 42,654 | $ | 6,684 | $ | 127,728 | |||||||||||||||
Manning & Napier Pro-Blend® Moderate Term Series - Class I |
5,080,607 | 7,041,540 | 3,068,564 | 9,110,760 | 799,189 | 81,773 | 237,856 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 5,652,765 | $ | 7,437,640 | $ | 3,539,275 | $ | 9,592,749 | $ | 88,457 | $ | 365,584 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2020 SERIES |
VALUE AT 10/31/13 |
PURCHASE COST |
SALES PROCEEDS |
VALUE AT 10/31/14 |
SHARES HELD 10/31/14 |
DIVIDEND INCOME |
DISTRIBUTIONS NET REALIZED |
|||||||||||||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
$ | 95,344,109 | $ | 20,894,360 | $ | 40,959,727 | $ | 72,173,371 | 6,387,024 | $ | 1,247,248 | $ | 9,452,783 | |||||||||||||||
Manning & Napier Pro-Blend® Moderate Term Series - Class I |
92,252,520 | 46,196,959 | 30,559,673 | 107,493,265 | 9,429,234 | 1,364,865 | 7,181,025 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 187,596,629 | $ | 67,091,319 | $ | 71,519,400 | $ | 179,666,636 | $ | 2,612,113 | $ | 16,633,808 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2025 SERIES |
VALUE AT 10/31/13 |
PURCHASE COST |
SALES PROCEEDS |
VALUE AT 10/31/14 |
SHARES HELD 10/31/14 |
DIVIDEND INCOME |
DISTRIBUTIONS NET REALIZED |
|||||||||||||||||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
$ | 1,256,012 | $ | 950,647 | $ | 909,052 | $ | 1,220,730 | 97,580 | $ | 7,601 | $ | 160,852 | |||||||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
10,943,454 | 16,605,756 | 4,508,792 | 23,153,153 | 2,048,952 | 207,051 | 957,107 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 12,199,466 | $ | 17,556,403 | $ | 5,417,844 | $ | 24,373,883 | $ | 214,652 | $ | 1,117,959 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2030 SERIES |
VALUE AT 10/31/13 |
PURCHASE COST |
SALES PROCEEDS |
VALUE AT 10/31/14 |
SHARES HELD 10/31/14 |
DIVIDEND INCOME |
DISTRIBUTIONS NET REALIZED |
|||||||||||||||||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
$ | 67,860,577 | $ | 19,113,236 | $ | 23,113,987 | $ | 59,452,391 | 4,752,389 | $ | 450,123 | $ | 13,033,843 | |||||||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
118,572,976 | 51,037,942 | 29,266,245 | 138,366,980 | 12,244,865 | 1,880,801 | 10,564,389 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 186,433,553 | $ | 70,151,178 | $ | 52,380,232 | $ | 197,819,371 | $ | 2,330,924 | $ | 23,598,232 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
72
Notes to Financial Statements (continued)
5. | Investments in Affiliated Issuers (continued) |
TARGET 2035 SERIES |
VALUE AT 10/31/13 |
PURCHASE COST |
SALES PROCEEDS |
VALUE AT 10/31/14 |
SHARES HELD 10/31/14 |
DIVIDEND INCOME |
DISTRIBUTIONS NET REALIZED |
|||||||||||||||||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
$ | 4,886,795 | $ | 6,950,620 | $ | 1,893,378 | $ | 9,811,536 | 784,295 | $ | 46,825 | $ | 681,351 | |||||||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
3,140,632 | 5,944,237 | 1,142,618 | 7,992,876 | 707,334 | 67,390 | 263,980 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 8,027,427 | $ | 12,894,857 | $ | 3,035,996 | $ | 17,804,412 | $ | 114,215 | $ | 945,331 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2040 SERIES |
VALUE AT 10/31/13 |
PURCHASE COST |
SALES PROCEEDS |
VALUE AT 10/31/14 |
SHARES HELD 10/31/14 |
DIVIDEND INCOME |
DISTRIBUTIONS NET REALIZED |
|||||||||||||||||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
$ | 101,695,349 | $ | 34,380,589 | $ | 23,493,052 | $ | 106,793,252 | 8,536,631 | $ | 733,753 | $ | 18,650,986 | |||||||||||||||
Manning & Napier Pro-Blend® Extended Term Series - Class I |
16,816,025 | 13,926,418 | 4,121,316 | 26,636,668 | 2,357,227 | 308,152 | 1,750,752 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 118,511,374 | $ | 48,307,007 | $ | 27,614,368 | $ | 133,429,920 | $ | 1,041,905 | $ | 20,401,738 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2045 SERIES |
VALUE AT 10/31/13 |
PURCHASE COST |
SALES PROCEEDS |
VALUE AT 10/31/14 |
SHARES HELD 10/31/14 |
DIVIDEND INCOME |
DISTRIBUTIONS NET REALIZED |
|||||||||||||||||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
$ | 3,284,997 | $ | 7,057,256 | $ | 2,568,075 | $ | 7,789,209 | 622,639 | $ | 33,281 | $ | 393,991 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 3,284,997 | $ | 7,057,256 | $ | 2,568,075 | $ | 7,789,209 | $ | 33,281 | $ | 393,991 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2050 SERIES |
VALUE AT 10/31/13 |
PURCHASE COST |
SALES PROCEEDS |
VALUE AT 10/31/14 |
SHARES HELD 10/31/14 |
DIVIDEND INCOME |
DISTRIBUTIONS NET REALIZED |
|||||||||||||||||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
$ | 52,087,531 | $ | 22,945,682 | $ | 7,566,175 | $ | 64,776,991 | 5,178,017 | $ | 407,217 | $ | 8,850,761 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 52,087,531 | $ | 22,945,682 | $ | 7,566,175 | $ | 64,776,991 | $ | 407,217 | $ | 8,850,761 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2055 SERIES |
VALUE AT 10/31/13 |
PURCHASE COST |
SALES PROCEEDS |
VALUE AT 10/31/14 |
SHARES HELD 10/31/14 |
DIVIDEND INCOME |
DISTRIBUTIONS NET REALIZED GAIN |
|||||||||||||||||||||
Manning & Napier Pro-Blend® Maximum Term Series - Class I |
$ | 623,221 | $ | 3,821,016 | $ | 1,253,846 | $ | 3,183,296 | 254,460 | $ | 14,654 | $ | 82,861 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 623,221 | $ | 3,821,016 | $ | 1,253,846 | $ | 3,183,296 | $ | 14,654 | $ | 82,861 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
73
Notes to Financial Statements (continued)
6. | Capital Stock Transactions |
Transactions in Class K, Class R, Class C and Class I shares:
TARGET INCOME SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS K | CLASS K | CLASS R | CLASS R | |||||||||||||||||||||||||||||
SHARES | AMOUNTS | SHARES | AMOUNTS | SHARES | AMOUNTS | SHARES | AMOUNTS | |||||||||||||||||||||||||
Sold |
594,916 | $ | 6,346,724 | 275,973 | $ | 2,962,645 | 197,021 | $ | 2,073,981 | 1,305,419 | $ | 13,899,918 | ||||||||||||||||||||
Reinvested |
298,064 | 3,099,837 | 271,776 | 2,818,029 | 80,398 | 826,443 | 20,695 | 212,438 | ||||||||||||||||||||||||
Repurchased |
(389,501 | ) | (4,186,913 | ) | (442,240 | ) | (4,728,456 | ) | (264,088 | ) | (2,799,033 | ) | (446,449 | ) | (4,732,077 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
503,479 | $ | 5,259,648 | 105,509 | $ | 1,052,218 | 13,331 | $ | 101,391 | 879,665 | $ | 9,380,279 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET INCOME SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS C SHARES |
AMOUNTS | CLASS C SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
310 | $ | 3,268 | 24,581 | $ | 258,787 | 538,207 | $ | 5,835,286 | 548,440 | $ | 5,913,760 | ||||||||||||||||||||
Reinvested |
6,196 | 63,073 | 4,999 | 50,907 | 66,226 | 690,717 | 38,442 | 399,622 | ||||||||||||||||||||||||
Repurchased |
(118,399 | ) | (1,223,624 | ) | (13,353 | ) | (139,817 | ) | (558,452 | ) | (6,030,911 | ) | (144,102 | ) | (1,550,415 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
(111,893 | ) | $ | (1,157,283 | ) | 16,227 | $ | 169,877 | 45,981 | $ | 495,092 | 442,780 | $ | 4,762,967 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2010 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS K SHARES |
AMOUNTS | CLASS K SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
318,771 | $ | 3,275,052 | 400,637 | $ | 4,037,953 | 69,137 | $ | 704,913 | 172,991 | $ | 1,736,410 | ||||||||||||||||||||
Reinvested |
185,196 | 1,836,931 | 149,101 | 1,444,030 | 30,052 | 295,220 | 24,438 | 234,880 | ||||||||||||||||||||||||
Repurchased |
(347,452 | ) | (3,572,782 | ) | (392,987 | ) | (3,976,373 | ) | (303,003 | ) | (3,109,350 | ) | (174,629 | ) | (1,738,951 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
156,515 | $ | 1,539,201 | 156,751 | $ | 1,505,610 | (203,814 | ) | $ | (2,109,217 | ) | 22,800 | $ | 232,339 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2010 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS C SHARES |
AMOUNTS | CLASS C SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
2,612 | $ | 26,652 | 4,953 | $ | 49,956 | 409,762 | $ | 4,205,814 | 455,500 | $ | 4,581,081 | ||||||||||||||||||||
Reinvested |
4,749 | 46,536 | 5,752 | 55,165 | 97,156 | 967,752 | 68,555 | 666,976 | ||||||||||||||||||||||||
Repurchased |
(110,710 | ) | (1,102,000 | ) | (54,877 | ) | (553,564 | ) | (552,748 | ) | (5,635,274 | ) | (263,774 | ) | (2,661,630 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
(103,349 | ) | $ | (1,028,812 | ) | (44,172 | ) | $ | (448,443 | ) | (45,830 | ) | $ | (461,708 | ) | 260,281 | $ | 2,586,427 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2015 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS K SHARES |
AMOUNTS | CLASS K SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
272,455 | $ | 3,220,613 | 114,017 | $ | 1,286,604 | 79,960 | $ | 959,149 | 131,921 | $ | 1,498,704 | ||||||||||||||||||||
Reinvested |
3,246 | 38,136 | 480 | 5,262 | 2,807 | 32,583 | 132 | 1,446 | ||||||||||||||||||||||||
Repurchased |
(97,164 | ) | (1,148,035 | ) | (28,176 | ) | (327,397 | ) | (37,416 | ) | (454,556 | ) | (46,118 | ) | (526,200 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
178,537 | $ | 2,110,714 | 86,321 | $ | 964,469 | 45,351 | $ | 537,176 | 85,935 | $ | 973,950 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74
Notes to Financial Statements (continued)
6. | Capital Stock Transactions (continued) |
TARGET 2015 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS C SHARES |
AMOUNTS | CLASS C SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
| | | $ | | 249,113 | $ | 2,960,038 | 349,222 | $ | 3,945,663 | |||||||||||||||||||||
Reinvested |
| 1 | 3 | | 1 | 1 | 7,624 | 89,090 | 1,234 | 13,541 | ||||||||||||||||||||||
Repurchased |
(10 | ) | (122 | ) | | | (167,732 | ) | (1,999,024 | ) | (44,443 | ) | (512,137 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
(10 | ) | $ | (119 | ) | | $ | 1 | 89,005 | $ | 1,050,104 | 306,013 | $ | 3,447,067 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2020 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS K SHARES |
AMOUNTS | CLASS K SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
1,798,069 | $ | 19,200,184 | 1,405,724 | $ | 14,370,325 | 866,122 | $ | 9,205,721 | 1,202,140 | $ | 12,226,053 | ||||||||||||||||||||
Reinvested |
490,851 | 5,042,352 | 398,096 | 3,830,833 | 174,536 | 1,768,517 | 109,586 | 1,042,954 | ||||||||||||||||||||||||
Repurchased |
(1,111,332 | ) | (11,902,836 | ) | (899,576 | ) | (9,246,294 | ) | (1,764,377 | ) | (18,770,783 | ) | (417,909 | ) | (4,227,501 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
1,177,588 | $ | 12,339,700 | 904,244 | $ | 8,954,864 | (723,719 | ) | $ | (7,796,545 | ) | 893,817 | $ | 9,041,506 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2020 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS C SHARES |
AMOUNTS | CLASS C SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
7,546 | $ | 78,385 | 55,317 | $ | 554,860 | 1,670,826 | $ | 17,839,002 | 3,002,712 | $ | 30,556,802 | ||||||||||||||||||||
Reinvested |
17,278 | 174,511 | 20,476 | 194,315 | 392,551 | 4,043,714 | 248,507 | 2,402,674 | ||||||||||||||||||||||||
Repurchased |
(377,845 | ) | (3,906,268 | ) | (132,868 | ) | (1,341,276 | ) | (2,875,004 | ) | (30,309,189 | ) | (715,315 | ) | (7,307,540 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
(353,021 | ) | $ | (3,653,372 | ) | (57,075 | ) | $ | (592,101 | ) | (811,627 | ) | $ | (8,426,473 | ) | 2,535,904 | $ | 25,651,936 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2025 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS K SHARES |
AMOUNTS | CLASS K SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
622,495 | $ | 7,855,821 | 86,095 | $ | 1,001,080 | 199,173 | $ | 2,563,183 | 132,975 | $ | 1,594,879 | ||||||||||||||||||||
Reinvested |
3,736 | 47,738 | 262 | 2,961 | 4,793 | 59,676 | 113 | 1,291 | ||||||||||||||||||||||||
Repurchased |
(106,271 | ) | (1,352,858 | ) | (33,972 | ) | (396,436 | ) | (35,183 | ) | (458,590 | ) | (10,156 | ) | (121,088 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
519,960 | $ | 6,550,701 | 52,385 | $ | 607,605 | 168,783 | $ | 2,164,269 | 122,932 | $ | 1,475,082 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2025 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS C SHARES |
AMOUNTS | CLASS C SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
249 | $ | 3,080 | 45,989 | $ | 542,371 | 546,701 | $ | 6,960,557 | 813,258 | $ | 9,550,394 | ||||||||||||||||||||
Reinvested |
1,064 | 13,049 | 121 | 1,380 | 21,225 | 262,305 | 2,879 | 32,739 | ||||||||||||||||||||||||
Repurchased |
(47,430 | ) | (583,342 | ) | (3 | ) | (33 | ) | (314,359 | ) | (3,995,477 | ) | (64,273 | ) | (761,189 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
(46,117 | ) | $ | (567,213 | ) | 46,107 | $ | 543,718 | 253,567 | $ | 3,227,385 | 751,864 | $ | 8,821,944 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75
Notes to Financial Statements (continued)
6. | Capital Stock Transactions (continued) |
TARGET 2030 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS K SHARES |
AMOUNTS | CLASS K SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
2,709,470 | $ | 30,826,158 | 1,759,864 | $ | 18,712,838 | 703,724 | $ | 7,936,872 | 736,656 | $ | 7,838,165 | ||||||||||||||||||||
Reinvested |
541,087 | 5,886,045 | 352,032 | 3,447,739 | 155,634 | 1,677,028 | 93,139 | 904,490 | ||||||||||||||||||||||||
Repurchased |
(980,255 | ) | (11,210,450 | ) | (858,954 | ) | (9,123,330 | ) | (1,500,947 | ) | (17,167,486 | ) | (252,154 | ) | (2,617,357 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
2,270,302 | $ | 25,501,753 | 1,252,942 | $ | 13,037,247 | (641,589 | ) | $ | (7,553,586 | ) | 577,641 | $ | 6,125,298 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2030 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS C SHARES |
AMOUNTS | CLASS C SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
1,640 | $ | 17,936 | 34,805 | $ | 362,635 | 1,524,584 | $ | 17,468,968 | 2,015,816 | $ | 21,404,933 | ||||||||||||||||||||
Reinvested |
15,259 | 163,266 | 12,077 | 116,662 | 358,433 | 3,925,732 | 208,959 | 2,063,738 | ||||||||||||||||||||||||
Repurchased |
(284,534 | ) | (3,123,773 | ) | (50,469 | ) | (522,406 | ) | (2,425,197 | ) | (27,175,575 | ) | (459,084 | ) | (4,903,004 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
(267,635 | ) | $ | (2,942,571 | ) | (3,587 | ) | $ | (43,109 | ) | (542,180 | ) | $ | (5,780,875 | ) | 1,765,691 | $ | 18,565,667 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2035 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS K SHARES |
AMOUNTS | CLASS K SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
427,866 | $ | 5,666,101 | 53,291 | $ | 653,380 | 143,162 | $ | 1,964,601 | 94,539 | $ | 1,177,996 | ||||||||||||||||||||
Reinvested |
2,814 | 37,215 | 137 | 1,620 | 4,353 | 56,641 | 156 | 1,871 | ||||||||||||||||||||||||
Repurchased |
(73,524 | ) | (978,828 | ) | (19,624 | ) | (249,247 | ) | (23,835 | ) | (324,572 | ) | (6,235 | ) | (79,378 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
357,156 | $ | 4,724,488 | 33,804 | $ | 405,753 | 123,680 | $ | 1,696,670 | 88,460 | $ | 1,100,489 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2035 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS C SHARES |
AMOUNTS | CLASS C SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
1,915 | $ | 25,330 | 4,959 | $ | 60,539 | 358,146 | $ | 4,832,377 | 515,417 | $ | 6,290,834 | ||||||||||||||||||||
Reinvested |
155 | 1,991 | 12 | 137 | 18,998 | 246,760 | 1,483 | 17,671 | ||||||||||||||||||||||||
Repurchased |
(7,289 | ) | (94,894 | ) | | 1 | | (164,131 | ) | (2,186,471 | ) | (39,803 | ) | (508,185 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
(5,219 | ) | $ | (67,573 | ) | 4,971 | $ | 60,676 | 213,013 | $ | 2,892,666 | 477,097 | $ | 5,800,320 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2040 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS K SHARES |
AMOUNTS | CLASS K SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
1,663,928 | $ | 20,388,860 | 872,659 | $ | 9,913,864 | 341,962 | $ | 4,218,529 | 355,107 | $ | 4,050,027 | ||||||||||||||||||||
Reinvested |
461,132 | 5,408,209 | 149,568 | 1,552,151 | 105,481 | 1,227,456 | 29,038 | 298,983 | ||||||||||||||||||||||||
Repurchased |
(848,925 | ) | (10,505,295 | ) | (585,655 | ) | (6,630,381 | ) | (888,702 | ) | (11,026,033 | ) | (250,580 | ) | (2,722,816 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
1,276,135 | $ | 15,291,774 | 436,572 | $ | 4,835,634 | (441,259 | ) | $ | (5,580,048 | ) | 133,565 | $ | 1,626,194 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
76
Notes to Financial Statements (continued)
6. | Capital Stock Transactions (continued) |
TARGET 2040 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS C SHARES |
AMOUNTS | CLASS C SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
3,859 | $ | 45,288 | 16,194 | $ | 181,040 | 1,035,519 | $ | 12,900,186 | 1,011,850 | $ | 11,639,779 | ||||||||||||||||||||
Reinvested |
7,196 | 82,541 | 2,322 | 23,642 | 221,903 | 2,616,468 | 64,845 | 678,591 | ||||||||||||||||||||||||
Repurchased |
(122,322 | ) | (1,430,739 | ) | (9,575 | ) | (111,719 | ) | (1,311,468 | ) | (15,980,412 | ) | (353,794 | ) | (4,077,145 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
(111,267 | ) | $ | (1,302,910 | ) | 8,941 | $ | 92,963 | (54,046 | ) | $ | (463,758 | ) | 722,901 | $ | 8,241,225 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2045 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS K SHARES |
AMOUNTS | CLASS K SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
251,163 | $ | 3,461,043 | 17,022 | $ | 213,340 | 135,581 | $ | 1,917,245 | 52,367 | $ | 664,963 | ||||||||||||||||||||
Reinvested |
1,483 | 20,141 | 18 | 224 | 2,053 | 27,487 | 54 | 659 | ||||||||||||||||||||||||
Repurchased |
(57,306 | ) | (800,928 | ) | (313 | ) | (4,052 | ) | (54,743 | ) | (783,372 | ) | (7,209 | ) | (93,880 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
195,340 | $ | 2,680,256 | 16,727 | $ | 209,512 | 82,891 | $ | 1,161,360 | 45,212 | $ | 571,742 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2045 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS C SHARES |
AMOUNTS | CLASS C SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
5,053 | $ | 69,054 | 32,028 | $ | 409,071 | 164,103 | $ | 2,300,673 | 158,160 | $ | 2,046,100 | ||||||||||||||||||||
Reinvested |
1,485 | 19,783 | 20 | 236 | 3,643 | 49,123 | 123 | 1,504 | ||||||||||||||||||||||||
Repurchased |
(39,612 | ) | (530,880 | ) | (8 | ) | (103 | ) | (110,339 | ) | (1,520,716 | ) | (14,030 | ) | (180,450 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
(33,074 | ) | $ | (442,043 | ) | 32,040 | $ | 409,204 | 57,407 | $ | 829,080 | 144,253 | $ | 1,867,154 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2050 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS K SHARES |
AMOUNTS | CLASS K SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
787,621 | $ | 10,725,330 | 574,428 | $ | 7,085,087 | 194,818 | $ | 2,642,156 | 116,873 | $ | 1,417,312 | ||||||||||||||||||||
Reinvested |
197,269 | 2,536,504 | 17,275 | 193,602 | 26,639 | 339,988 | 1,598 | 17,657 | ||||||||||||||||||||||||
Repurchased |
(229,237 | ) | (3,114,414 | ) | (175,005 | ) | (2,163,413 | ) | (217,531 | ) | (2,973,315 | ) | (65,481 | ) | (770,223 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
755,653 | $ | 10,147,420 | 416,698 | $ | 5,115,276 | 3,926 | $ | 8,829 | 52,990 | $ | 664,746 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2050 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS C SHARES |
AMOUNTS | CLASS C SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
2,086 | $ | 26,692 | 15,097 | $ | 181,691 | 457,101 | $ | 6,219,219 | 386,147 | $ | 4,825,339 | ||||||||||||||||||||
Reinvested |
6,212 | 78,026 | 307 | 3,357 | 46,716 | 605,112 | 3,958 | 45,064 | ||||||||||||||||||||||||
Repurchased |
(114,967 | ) | (1,479,794 | ) | (10,090 | ) | (120,703 | ) | (294,896 | ) | (3,974,400 | ) | (94,611 | ) | (1,170,544 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
(106,669 | ) | $ | (1,375,076 | ) | 5,314 | $ | 64,345 | 208,921 | $ | 2,849,931 | 295,494 | $ | 3,699,859 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77
Notes to Financial Statements (continued)
6. | Capital Stock Transactions (continued) |
TARGET 2055 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS K SHARES |
AMOUNTS | CLASS K SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | CLASS R SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
193,900 | $ | 2,669,309 | 15,016 | $ | 196,533 | 44,218 | $ | 617,792 | 3,977 | $ | 50,368 | ||||||||||||||||||||
Reinvested |
1,621 | 21,518 | | 1 | 1 | 477 | 6,272 | | | |||||||||||||||||||||||
Repurchased |
(83,064 | ) | (1,155,364 | ) | (22 | ) | (275 | ) | (11,124 | ) | (150,506 | ) | (310 | ) | (3,983 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
112,457 | $ | 1,535,463 | 14,994 | $ | 196,259 | 33,571 | $ | 473,558 | 3,667 | $ | 46,385 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TARGET 2055 SERIES: |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||||||||||||||||
CLASS C SHARES |
AMOUNTS | CLASS C SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | CLASS I SHARES |
AMOUNTS | |||||||||||||||||||||||||
Sold |
57 | $ | 773 | 103 | $ | 1,324 | 52,372 | $ | 725,482 | 350,429 | $ | 4,364,757 | ||||||||||||||||||||
Reinvested |
5 | 65 | | | 2,029 | 26,809 | | 1 | 1 | |||||||||||||||||||||||
Repurchased |
(110 | ) | (1,441 | ) | (65 | ) | (854 | ) | (18,639 | ) | (259,702 | ) | (324,175 | ) | (4,025,864 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
(48 | ) | $ | (603 | ) | 38 | $ | 470 | 35,762 | $ | 492,589 | 26,254 | $ | 338,894 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Less than 1 share.
The following table represents instances at October 31, 2014, where a shareholder account owned greater than 10% of a Series:
SERIES | NUMBER OF ACCOUNTS OVER 10% |
SHARES OWNED |
PERCENTAGE OF SERIES SHARES OUTSTANDING |
VALUE | ||||||||||||
Target Income Series |
2 | 4,905,955 | 68.6 | % | $ | 53,043,749 | ||||||||||
Target 2010 Series |
3 | 2,915,443 | 61.6 | % | $ | 30,194,304 | ||||||||||
Target 2015 Series |
2 | 252,028 | 31.8 | % | $ | 3,048,650 | ||||||||||
Target 2020 Series |
3 | 7,798,634 | 46.7 | % | $ | 84,024,096 | ||||||||||
Target 2025 Series |
3 | 978,863 | 52.2 | % | $ | 12,713,897 | ||||||||||
Target 2030 Series |
3 | 8,926,035 | 52.0 | % | $ | 102,922,987 | ||||||||||
Target 2035 Series |
2 | 653,945 | 50.5 | % | $ | 8,982,073 | ||||||||||
Target 2040 Series |
3 | 5,637,103 | 55.5 | % | $ | 70,500,278 | ||||||||||
Target 2045 Series |
2 | 248,809 | 45.9 | % | $ | 3,566,088 | ||||||||||
Target 2050 Series |
1 | 2,677,452 | 56.8 | % | $ | 36,734,638 | ||||||||||
Target 2055 Series |
3 | 79,353 | 35.0 | % | $ | 1,106,246 |
Investment activities of these shareholders may have a material effect on the Series.
7. | Financial Instruments |
The Underlying Series may trade in instruments including written and purchased options, forward foreign currency exchange contracts and futures contracts and other derivatives in the normal course of investing activities to assist in managing exposure to various market risks. The Underlying Series may be subject to various elements of risk which may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. These risks include: the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index; counterparty credit risk related to over the counter derivative counterparties failure to perform under contract terms; liquidity risk related to the lack of a liquid market for these contracts allowing the fund to close out its position(s); and documentation risk relating to disagreement over contract terms. No such investments were directly held by the Series as of October 31, 2014.
78
Notes to Financial Statements (continued)
8. | Federal Income Tax Information |
The amount and characterization of certain income and capital gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Each Series may periodically make reclassifications among its capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations, without impacting the Series net asset value. For the fiscal year ended October 31, 2014, $749,554, $543,481, $54,854, $2,293,227, $179,170, $4,083,606, $203,988, $3,936,197,$88,474, and $24,249 was reclassified within the Target Income Series, Target 2010 Series, Target 2015 Series, Target 2020 Series, Target 2025 Series, Target 2030 Series, Target 2035 Series, Target 2040 Series, Target 2045 Series, and Target 2055 Series capital accounts, respectively, from Accumulated Net Realized Gain on Investments to Undistributed Net Investment Income. Amounts were reclassified within the capital accounts to increase Additional Paid in Capital by $1, increase Undistributed Net Investment Income by $1,902,568, and reduce Accumulated Net Realized Gain on Investments by $1,902,569 for Target 2050 Series. The reclassifications relate primarily to distributions from investments in the Underlying Series. Any such reclassifications are not reflected in the financial highlights.
The tax character of distributions were as follows:
TARGET INCOME SERIES |
TARGET SERIES |
TARGET 2015 SERIES |
TARGET SERIES |
TARGET 2025 SERIES |
TARGET SERIES |
|||||||||||||||||||
Ordinary income (2014) |
$ | 1,959,383 | $ | 1,296,135 | $ | 159,729 | $ | 4,396,383 | $ | 380,884 | $ | 6,847,796 | ||||||||||||
Ordinary income (2013) |
$ | 1,284,458 | $ | 927,301 | $ | 20,248 | $ | 2,826,667 | $ | 38,371 | $ | 2,079,791 | ||||||||||||
Long-term capital gain (2014) |
$ | 2,802,409 | $ | 1,873,685 | $ | 83 | $ | 6,768,937 | $ | 1,902 | $ | 4,866,589 | ||||||||||||
Long-term capital gain (2013) |
$ | 2,218,454 | $ | 1,483,511 | $ | | $ | 4,692,366 | $ | | $ | 4,462,597 |
TARGET 2035 SERIES |
TARGET SERIES |
TARGET 2045 SERIES |
TARGET SERIES |
TARGET 2055 SERIES |
||||||||||||||||
Ordinary income (2014) |
$ | 340,596 | $ | 4,664,257 | $ | 116,039 | $ | 2,125,579 | $ | 54,737 | ||||||||||
Ordinary income (2013) |
$ | 21,299 | $ | 607,172 | $ | 2,622 | $ | 150,667 | $ | | ||||||||||
Long-term capital gain (2014) |
$ | 2,057 | $ | 4,711,859 | $ | 496 | $ | 1,452,018 | $ | 19 | ||||||||||
Long-term capital gain (2013) |
$ | | $ | 1,953,285 | $ | | $ | 109,425 | $ | |
At October 31, 2014, the identified cost of investments for federal income tax purposes, the resulting gross unrealized appreciation and depreciation, and the net unrealized appreciation and depreciation were as follows:
TARGET INCOME SERIES |
TARGET 2010 SERIES |
TARGET SERIES |
TARGET 2020 SERIES |
TARGET 2025 SERIES |
TARGET 2030 SERIES |
|||||||||||||||||||
Cost for federal income tax purposes |
$ | 74,287,126 | $ | 47,194,531 | $ | 9,427,625 | $ | 170,746,592 | $ | 23,870,174 | $ | 183,166,588 | ||||||||||||
Unrealized appreciation |
$ | 3,206,623 | $ | 1,884,334 | $ | 168,819 | $ | 9,306,572 | $ | 520,205 | $ | 15,269,384 | ||||||||||||
Unrealized depreciation |
(2,139 | ) | (14,026 | ) | (3,695 | ) | (386,528 | ) | (16,496 | ) | (616,601 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net unrealized appreciation |
$ | 3,204,484 | $ | 1,870,308 | $ | 165,124 | $ | 8,920,044 | $ | 503,709 | $ | 14,652,783 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Undistributed ordinary income |
84,716 | 56,017 | 95,493 | 154,054 | 127,778 | 138,372 | ||||||||||||||||||
Undistributed long-term capital gains |
5,033,993 | 3,176,247 | 225,964 | 14,598,185 | 845,446 | 19,717,338 |
79
Notes to Financial Statements (continued)
8. | Federal Income Tax Information (continued) |
TARGET 2035 SERIES |
TARGET 2040 SERIES |
TARGET 2045 SERIES |
TARGET 2050 SERIES |
TARGET SERIES |
||||||||||||||||
Cost for federal income tax purposes |
$ | 17,422,893 | $ | 122,195,233 | $ | 7,680,498 | $ | 58,462,752 | $ | 3,195,409 | ||||||||||
Unrealized appreciation |
$ | 394,023 | $ | 11,234,687 | $ | 151,443 | $ | 6,314,544 | $ | 20,888 | ||||||||||
Unrealized depreciation |
(12,504 | ) | | (42,732 | ) | (305 | ) | (33,001 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net unrealized appreciation (depreciation) |
$ | 381,519 | $ | 11,234,687 | $ | 108,711 | $ | 6,314,239 | $ | (12,113 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Undistributed ordinary income |
97,158 | 58,428 | 108,680 | 18,130 | 25,527 | |||||||||||||||
Undistributed long-term capital gains |
666,506 | 16,464,667 | 241,189 | 6,947,174 | 67,325 |
At October 31, 2014, Target 2050 Series had a capital loss carryover of $334, which is subject to limitations under Section 382-384 of the Internal Revenue Code, and is available to the extent allowed by tax law to offset future net capital gains, if any, which will expire on October 31, 2017.
Target 2050 Series utilized $675 in capital loss carryovers in the current year.
80
Report of Independent Registered Public Accounting Firm
To the Board of Directors of Manning & Napier Fund, Inc. and Shareholders of Target Income Series, Target 2010 Series, Target 2015 Series, Target 2020 Series, Target 2025 Series, Target 2030 Series, Target 2035 Series, Target 2040 Series, Target 2045 Series, Target 2050 Series and Target 2055 Series:
In our opinion, the accompanying statements of assets and liabilities, including the investment portfolios, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Target Income Series, Target 2010 Series, Target 2015 Series, Target 2020 Series, Target 2025 Series, Target 2030 Series, Target 2035 Series, Target 2040 Series, Target 2045 Series, Target 2050 Series and Target 2055 Series (hereafter collectively referred to as the Series) at October 31, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Series management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
New York, New York
December 19, 2014
81
Supplemental Tax Information
(unaudited)
All reportings are based on financial information available as of the date of this annual report and, accordingly, are subject to change.
For federal income tax purposes, each of the Series reports for the current fiscal year the amount disclosed below or, if different, the maximum amount allowable under the tax law, as qualified dividend income (QDI).
Series | QDI | |||
Target Income Series |
$ | 559,344 | ||
Target 2010 Series |
374,489 | |||
Target 2015 Series |
41,154 | |||
Target 2020 Series |
1,508,588 | |||
Target 2025 Series |
128,467 | |||
Target 2030 Series |
2,010,971 | |||
Target 2035 Series |
97,159 | |||
Target 2040 Series |
1,476,057 | |||
Target 2045 Series |
35,589 | |||
Target 2050 Series |
675,150 | |||
Target 2055 Series |
11,371 |
For corporate shareholders, the percentage of investment income (dividend income plus short-term gain, if any) that qualifies for the dividends received deduction (DRD) for the current fiscal year is as follows:
6.39 Series | DRD% | |||
Target Income Series |
18.41 | % | ||
Target 2010 Series |
17.58 | % | ||
Target 2015 Series |
9.55 | % | ||
Target 2020 Series |
18.94 | % | ||
Target 2025 Series |
15.64 | % | ||
Target 2030 Series |
19.07 | % | ||
Target 2035 Series |
13.15 | % | ||
Target 2040 Series |
17.68 | % | ||
Target 2045 Series |
8.87 | % | ||
Target 2050 Series |
17.29 | % | ||
Target 2055 Series |
6.39 | % |
The Series designate Long-Term Capital Gain dividends pursuant to Section 852(b)(3) of the Code for the fiscal year ended October 31, 2013 as follows:
Series | ||||
Target Income Series |
$ | 5,034,605 | ||
Target 2010 Series |
3,176,285 | |||
Target 2015 Series |
225,978 | |||
Target 2020 Series |
14,599,077 | |||
Target 2025 Series |
845,520 | |||
Target 2030 Series |
19,717,434 | |||
Target 2035 Series |
666,552 | |||
Target 2040 Series |
16,465,269 | |||
Target 2045 Series |
241,199 | |||
Target 2050 Series |
6,947,518 | |||
Target 2055 Series |
67,325 |
82
Directors and Officers Information
(unaudited)
The Statement of Additional Information provides additional information about the Funds directors and officers and can be obtained without charge by calling 1-800-466-3863, at www.manningnapieradvisors.com, or on the EDGAR Database on the SEC Internet web site (http:// www.sec.gov). The following chart shows certain information about the Funds officers and directors, including their principal occupations during the last five years. Unless specific dates are provided, the individuals have held the listed positions for longer than five years.
Interested Director/Officer
Name: | B. Reuben Auspitz* | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 67 | |
Current Position(s) Held with Fund: | Principal Executive Officer, President, Chairman & Director | |
Term of Office1 & Length of Time Served: | Indefinite - Director since 1984; Principal Executive Officer since 2002; President since 2004; Vice President 1984-2003. | |
Principal Occupation(s) During Past 5 Years: | Executive Vice President since 1993; Chief Compliance Officer since 2004; Vice Chairman since June 2010; Co-Executive Director from 2002-2010 - Manning & Napier Advisors, LLC; President, Director - Manning & Napier Investor Services, Inc. | |
Holds or has held one or more of the following titles for various subsidiaries and affiliates: President, Vice President, Director, Chairman, Treasurer, Chief Compliance Officer or Member. | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex:
|
N/A | |
Independent Directors | ||
Name: | Stephen B. Ashley | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 74 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1996 | |
Principal Occupation(s) During Past 5 Years: | Chairman, Director, President & Chief Executive Officer, The Ashley Group (property management and investment). Director 1995-2008 and Chairman (non-executive) 2004-2008 - Fannie Mae (mortgage) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Fannie Mae (1995-2008) | |
The Ashley Group (1995-2008) | ||
Genesee Corporation (1987-2007)
| ||
Name: | Paul A. Brooke | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 68 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 2007 | |
Principal Occupation(s) During Past 5 Years: | Chairman & CEO (2005-2009) - Alsius Corporation (investments); Managing Member, PMSV Holdings LLC (investments) since 1991; Managing Member, Venbio (investments) since 2010. | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Incyte Corp. (2000-present) ViroPharma, Inc. (2000-present) HLTH Corp (WebMD) (2000-2010) Cheyne Capital International (2000-present) MPM Bio-equities (2000-2009) GMP Companies (2000-present) HoustonPharma (2000-2009) Cytos Biotechnology Ltd. (2012-present)
|
83
Directors and Officers Information
(unaudited)
Independent Directors (continued)
Name: | Peter L. Faber | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 76 | |
Current Position(s) Held with Fund: | Director, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1987 | |
Principal Occupation(s) During Past 5 Years: | Senior Counsel (2006-2012), Partner (1995-2006 & 2013-present) - McDermott, Will & Emery LLP (law firm) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Partnership for New York City, Inc. (non-profit) (1989-2010) | |
New York Collegium (non-profit) (2004-2011) | ||
Boston Early Music Festival (non-profit) | ||
Name: | Harris H. Rusitzky | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 79 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1985 | |
Principal Occupation(s) During Past 5 Years: | President, The Greening Group (business consultants) since 1994; | |
Partner, The Restaurant Group (restaurants) since 2006 | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Chester N. Watson | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 64 | |
Current Position(s) Held with Fund: | Director, Audit Committee Chairman, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 2012 | |
Principal Occupation(s) During Past 5 Years: | General Auditor (2003-2011) - General Motors Company (auto manufacturer) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Officers | ||
Name: | Jeffrey S. Coons, Ph.D., CFA | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 51 | |
Current Position(s) Held with Fund: | Vice President | |
Term of Office1 & Length of Time Served: | Since 2004 | |
Principal Occupation(s) During Past 5 Years: | President since 2010, Co-Director of Research since 2002 - Manning & Napier Advisors, LLC | |
Holds one or more of the following titles for various subsidiaries and affiliates: President, Director, Treasurer or Senior Trust Officer. | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Elizabeth Craig | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 27 | |
Current Position(s) Held with Fund: | Assistant Corporate Secretary | |
Term of Office1 & Length of Time Served: | Since 2011 | |
Principal Occupation(s) During Past 5 Years: | Mutual Fund Compliance Specialist since 2009 - Manning & Napier Advisors, LLC | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A
|
84
Directors and Officers Information
(unaudited)
Officers (continued)
Name: | Christine Glavin | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 48 | |
Current Position(s) Held with Fund: | Principal Financial Officer, Chief Financial Officer | |
Term of Office1 & Length of Time Served: | Principal Financial Officer since 2002; Chief Financial Officer since 2001 | |
Principal Occupation(s) During Past 5 Years: | Director of Fund Reporting since 2011; Fund Reporting Manager (1997-2011) - Manning & Napier Advisors, LLC; Assistant Treasurer since 2008 - Exeter Trust Company | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Jodi L. Hedberg | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 46 | |
Current Position(s) Held with Fund: | Corporate Secretary, Chief Compliance Officer, Anti-Money Laundering Compliance Officer | |
Term of Office1 & Length of Time Served: | Corporate Secretary since 1997; Chief Compliance Officer since 2004; Anti-Money Laundering Compliance Officer | |
Principal Occupation(s) During Past 5 Years: | Director of Compliance, Manning & Napier Advisors, LLC and affiliates since 1990 (title change in 2005 from Compliance Manager to Director of Compliance); Corporate Secretary, Manning & Napier Investor Services, Inc. since 2006 | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Richard Yates | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 49 | |
Current Position(s) Held with Fund: | Chief Legal Officer | |
Term of Office1 & Length of Time Served: | Chief Legal Officer since 2004 | |
Principal Occupation(s) During Past 5 Years: | Counsel - Manning & Napier Advisors, LLC and affiliates since 2000; Holds one or more of the following titles for various affiliates; Director or Corporate Secretary | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A
|
*Interested Director, within the meaning of the Investment Company Act of 1940 by reason of his position with the Funds investment advisor and distributor. Mr. Auspitz serves as the Executive Vice President and Director, Manning & Napier Advisors, LLC and President and Director, Manning & Napier Investor Services, Inc., the Funds distributor.
1The term of office of all officers shall be one year and until their respective successors are chosen and qualified, or his or her earlier resignation or removal as provided in the Funds By-Laws.
85
Literature Requests
(unaudited)
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the Securities and Exchange | ||||
Commissions (SEC) web site | http://www.sec.gov |
Proxy Voting Record
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
Quarterly Portfolio Holdings
The Series complete schedule of portfolio holdings for the 1st and 3rd quarters of each fiscal year are provided on Form N-Q, and are available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
The Series Form N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Prospectus and Statement of Additional Information (SAI)
For more information about any of the Manning & Napier Fund, Inc. Series, you may obtain a prospectus and SAI at www.manning-napier.com or by calling (800) 466-3863. Before investing, carefully consider the objectives, risks, charges and expenses of the investment and read the prospectus carefully as it contains this and other information about the investment company. In addition, this information can be found on the SECs web site, http://www.sec.gov.
Additional information available at www.manning-napier.com
1. Fund Holdings - Month-End
2. Fund Holdings - Quarter-End
3. Shareholder Report - Annual
4. Shareholder Report - Semi-Annual
The Fund also offers electronic notification or e-delivery when certain documents are available on-line to be downloaded or reviewed. Direct shareholders can elect to receive electronic notification when shareholder reports, prospectus updates, and/or statements are available. If you do not currently have on-line access to your account, you can establish access by going to www.manning-napier.com, click on Login in the top corner of the page, and follow the prompts to self-enroll. Once enrolled, you can set your electronic notification preferences by clicking on the Account Options tab located within the green toolbar and then select E-Delivery Option. Should you have any questions on either how to establish on-line access or how to update your account settings, please contact Investor Services at 1-800-466-3863.
The Manning & Napier Fund, Inc. is managed by Manning & Napier Advisors, LLC. Manning & Napier Investor Services, Inc., an affiliate of Manning & Napier Advisors, LLC, is the distributor of the Fund shares.
MNTGT-10/14-AR
Dividend Focus Series
Management Discussion and Analysis
(unaudited)
Dear Shareholders:
The global economy remained on a slow growth path during the past year. Developed economies continued to support economic growth through accommodative monetary policy, and as the year progressed, central banks in areas such as Europe and Japan loosened policy further to combat persistent growth headwinds. Meanwhile, the U.S. economy slowed as it meandered through a very harsh winter, but recovered quickly during the spring and summer months of 2014. The Federal Reserve completed its third quantitative easing program, and market expectations for subsequent adjustment to domestic monetary policy during 2015 helped fuel a meaningful increase in the value of the dollar relative to other global currencies during the period. With the U.S. economy making positive strides, its equity markets generally performed strongly as well. Global markets were broadly weaker, although pockets of strength existed in certain emerging market countries where encouraging political developments and reform momentum helped lift investor sentiment. Looking ahead, we expect the slow global growth environment to remain in place for the foreseeable future.
As always, we appreciate your business.
Sincerely,
Manning & Napier Advisors, LLC
1
Dividend Focus Series
Fund Commentary
(unaudited)
Investment | Objective |
Through a quantitative investment approach, the Series seeks to provide competitive returns consistent with the broad equity market while also providing a level of capital protection during market downturns. The Series is designed to offer a diversified portfolio of dividend-paying equity securities. Stocks are selected based on attractive free cash flow yield, dividend yield competitive to that of the broad equity market, low probability of experiencing financial distress, and likely ability to maintain their dividend.
Performance | Commentary |
U.S. equity markets generally delivered positive absolute returns for the twelve-month period ended October 31, 2014. The Russell 3000® Index returned 16.07%. Growth stocks slightly outperformed value stocks during the period as the Russell 1000® Growth index returned 17.11% while the Russell 1000® Value Index returned 16.46%. The Dividend Focus Series Class S provided positive absolute returns of 13.12%; however, the Series performance trailed the broad market and the Russell 1000® Value Index on a relative basis.
The Series underperformance relative to the Russell 1000® Value Index during the year was driven by stock selection. In contrast, sector allocation contributed positively to relative returns. Regarding major detractors from relative performance, stock selection in Health Care and Consumer Staples challenged relative returns. Relative to the benchmark, the Series underweight to Financials and overweight to Consumer Staples detracted from relative returns as well.
Offsetting a portion of the relative performance weakness were positive contributions to relative returns from the Series overweight allocations to Information Technology and Health Care relative to the benchmark. Stock selection in Information Technology and Telecommunication Services also aided relative returns.
Within the Series, we will continue to focus on identifying and investing in companies that meet our strict criteria, both from a fundamental point of view and regarding price. In doing so, we will pursue opportunities that we believe will help to generate stable income with the potential for capital appreciation. Our approach will continue to emphasize risk management as a critical component in managing the Series. Despite todays challenging slow economic growth environment, we believe that this approach can help generate the absolute returns needed to achieve shareholders long-term investment goals.
Please see the next page for additional performance information as of October 31, 2014.
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than that quoted; investors can obtain the most recent month-end performance at www.manning-napier.com or by calling (800) 466-3863.
All investments involve risks, including possible loss of principal. As with any stock fund, the value of your investment will fluctuate in response to stock market movements. Investing in the Series will also involve a number of other risks, including issuer-specific risk, foreign investment risk, and mid-cap risk. In addition, because the Advisor manages the Series with a quantitative approach, the Series is subject to the additional risk that the investment approach may not be successful. Further, the Advisor does not intend to make frequent changes to the Series portfolio in response to market movements.
2
Dividend Focus Series
Performance Update as of October 31, 2014
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 | ||||||
ONE YEAR1 |
FIVE YEAR |
SINCE INCEPTION2 | ||||
Manning & Napier Fund, Inc. - Dividend Focus Series - Class I3 |
13.44% | 13.87% | 14.24% | |||
Manning & Napier Fund, Inc. - Dividend Focus Series - Class S3,4 |
13.12% | 13.56% | 13.95% | |||
Russell 1000® Value Index5 |
16.46% | 16.49% | 15.25% | |||
Standard & Poors (S&P) 500 Total Return Index6 |
17.25% | 16.68% | 16.30% |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Dividend Focus Series - Class I from its inception2 (November 7, 2008) to present (October 31, 2014) to the Russell 1000® Value Index and the S&P 500 Total Return Index.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series and Index are calculated from November 7, 2008, the Series Class I inception date.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this annualized net expense ratio was 0.79% for Class S and 0.54% for Class I. The annualized gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 0.79% for Class S and 0.54% for Class I for the year ended October 31, 2014.
4For periods through March 1, 2012 (the inception date of the Class S shares), performance for the Class S shares is hypothetical and is based on the historical performance of the Class I shares adjusted for the Class S shares charges and expenses.
5The Russell 1000® Value Index is an unmanaged, market capitalization-weighted index consisting of those Russell 1000® companies with lower price-to-book ratios and lower forecasted growth values. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. The Index returns do not reflect any fees or expenses. Index returns provided by Bloomberg.
6The S&P 500 Total Return Index is an unmanaged, capitalization-weighted measure of 500 widely held common stocks listed on the New York Stock Exchange, American Stock Exchange, and the Over-the-Counter market. The Index returns assume daily reinvestment of dividends and do not reflect any fees or expenses. Index returns provided by Bloomberg.
3
Dividend Focus Series
Shareholder Expense Example
(unaudited)
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD* 5/1/14-10/31/14 |
ANNUALIZED EXPENSE RATIO | |||||
Class S |
||||||||
Actual |
$1,000.00 | $1,042.80 | $4.02 | 0.78% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,021.27 | $3.97 | 0.78% | ||||
Class I |
||||||||
Actual |
$1,000.00 | $1,044.10 | $2.73 | 0.53% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,022.53 | $2.70 | 0.53% |
*Expenses are equal to each Class annualized expense ratio (for the six-month period), multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period. Expenses are based on the most recent fiscal half year; therefore, the expense ratios stated above may differ from the expense ratios stated in the financial highlights, which are based on one-year data.
4
Dividend Focus Series
5
Dividend Focus Series
Investment Portfolio - October 31, 2014
SHARES |
VALUE (NOTE 2) |
|||||||
COMMON STOCKS - 97.8% |
||||||||
Consumer Discretionary - 7.7% |
||||||||
Automobiles - 1.5% |
||||||||
Toyota Motor Corp. - ADR (Japan) |
25,744 | $ | 3,124,034 | |||||
|
|
|||||||
Distributors - 0.3% |
||||||||
Genuine Parts Co. |
6,667 | 647,232 | ||||||
|
|
|||||||
Hotels, Restaurants & Leisure - 1.6% |
||||||||
McDonalds Corp. |
34,050 | 3,191,507 | ||||||
|
|
|||||||
Leisure Products - 0.3% |
||||||||
Mattel, Inc. |
16,303 | 506,534 | ||||||
|
|
|||||||
Media - 0.9% |
||||||||
Thomson Reuters Corp. |
29,872 | 1,111,836 | ||||||
WPP plc - ADR (United Kingdom) |
7,758 | 757,103 | ||||||
|
|
|||||||
1,868,939 | ||||||||
|
|
|||||||
Multiline Retail - 0.4% |
||||||||
Kohls Corp. |
7,523 | 407,897 | ||||||
Nordstrom, Inc. |
6,896 | 500,718 | ||||||
|
|
|||||||
908,615 | ||||||||
|
|
|||||||
Specialty Retail - 2.7% |
||||||||
The Gap, Inc. |
14,313 | 542,320 | ||||||
The Home Depot, Inc. |
43,412 | 4,233,538 | ||||||
L Brands, Inc. |
11,823 | 852,675 | ||||||
|
|
|||||||
5,628,533 | ||||||||
|
|
|||||||
Total Consumer Discretionary |
15,875,394 | |||||||
|
|
|||||||
Consumer Staples - 22.3% |
||||||||
Beverages - 6.8% |
||||||||
The Coca-Cola Co. |
144,681 | 6,059,240 | ||||||
Coca-Cola Enterprises, Inc. |
9,251 | 401,031 | ||||||
Coca-Cola FEMSA S.A.B. de C.V. - ADR (Mexico) |
6,012 | 636,070 | ||||||
Diageo plc - ADR (United Kingdom) |
15,365 | 1,812,609 | ||||||
Dr. Pepper Snapple Group, Inc. |
7,486 | 518,405 | ||||||
PepsiCo, Inc. |
47,329 | 4,551,630 | ||||||
|
|
|||||||
13,978,985 | ||||||||
|
|
|||||||
Food & Staples Retailing - 3.7% |
||||||||
Sysco Corp. |
22,491 | 866,803 | ||||||
Wal-Mart Stores, Inc. |
89,432 | 6,820,979 | ||||||
|
|
|||||||
7,687,782 | ||||||||
|
|
|||||||
Food Products - 3.8% |
||||||||
Archer-Daniels-Midland Co. |
22,888 | 1,075,736 | ||||||
ConAgra Foods, Inc. |
17,774 | 610,537 | ||||||
General Mills, Inc. |
22,406 | 1,164,216 |
The accompanying notes are an integral part of the financial statements.
6
Dividend Focus Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Consumer Staples (continued) |
||||||||
Food Products (continued) |
||||||||
The J.M. Smucker Co. |
4,975 | $ | 517,400 | |||||
Kellogg Co. |
13,388 | 856,296 | ||||||
Kraft Foods Group, Inc. |
15,522 | 874,665 | ||||||
Unilever plc - ADR (United Kingdom) |
67,208 | 2,703,778 | ||||||
|
|
|||||||
7,802,628 | ||||||||
|
|
|||||||
Household Products - 5.0% |
||||||||
The Clorox Co. |
4,752 | 472,824 | ||||||
Colgate-Palmolive Co. |
27,068 | 1,810,308 | ||||||
Kimberly-Clark Corp. |
12,413 | 1,418,433 | ||||||
The Procter & Gamble Co. |
74,414 | 6,494,110 | ||||||
|
|
|||||||
10,195,675 | ||||||||
|
|
|||||||
Tobacco - 3.0% |
||||||||
Lorillard, Inc. |
15,361 | 944,701 | ||||||
Philip Morris International, Inc. |
46,071 | 4,100,780 | ||||||
Reynolds American, Inc. |
17,011 | 1,070,162 | ||||||
|
|
|||||||
6,115,643 | ||||||||
|
|
|||||||
Total Consumer Staples |
45,780,713 | |||||||
|
|
|||||||
Energy - 11.5% |
||||||||
Energy Equipment & Services - 0.2% |
||||||||
Transocean Ltd. |
11,846 | 353,366 | ||||||
|
|
|||||||
Oil, Gas & Consumable Fuels - 11.3% |
||||||||
CNOOC Ltd. - ADR (China) |
9,273 | 1,450,019 | ||||||
ConocoPhillips |
44,132 | 3,184,124 | ||||||
Exxon Mobil Corp. |
78,895 | 7,629,935 | ||||||
Marathon Oil Corp. |
26,055 | 922,347 | ||||||
Occidental Petroleum Corp. |
22,143 | 1,969,177 | ||||||
Royal Dutch Shell plc - Class A - ADR (Netherlands) |
74,634 | 5,357,975 | ||||||
Statoil ASA - ADR (Norway) |
94,224 | 2,162,441 | ||||||
Ultrapar Participacoes SA - ADR (Brazil) |
22,347 | 484,930 | ||||||
|
|
|||||||
23,160,948 | ||||||||
|
|
|||||||
Total Energy |
23,514,314 | |||||||
|
|
|||||||
Financials - 0.5% |
||||||||
Insurance - 0.5% |
||||||||
Marsh & McLennan Companies, Inc. |
20,069 | 1,091,151 | ||||||
|
|
|||||||
Health Care - 19.3% |
||||||||
Health Care Equipment & Supplies - 0.6% |
||||||||
Baxter International, Inc. |
17,915 | 1,256,558 | ||||||
|
|
|||||||
Pharmaceuticals - 18.7% |
||||||||
AbbVie, Inc. |
42,139 | 2,674,141 |
The accompanying notes are an integral part of the financial statements.
7
Dividend Focus Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Health Care (continued) |
||||||||
Pharmaceuticals (continued) |
||||||||
Eli Lilly & Co. |
33,770 | $ | 2,239,964 | |||||
GlaxoSmithKline plc - ADR (United Kingdom) |
76,848 | 3,495,815 | ||||||
Johnson & Johnson |
68,974 | 7,434,018 | ||||||
Merck & Co., Inc. |
93,031 | 5,390,216 | ||||||
Novartis AG - ADR (Switzerland) |
67,240 | 6,232,476 | ||||||
Pfizer, Inc. |
204,182 | 6,115,251 | ||||||
Sanofi - ADR (France) |
70,053 | 3,239,251 | ||||||
Teva Pharmaceutical Industries Ltd. - ADR (Israel) |
25,669 | 1,449,528 | ||||||
|
|
|||||||
38,270,660 | ||||||||
|
|
|||||||
Total Health Care |
39,527,218 | |||||||
|
|
|||||||
Industrials - 13.4% |
||||||||
Aerospace & Defense - 3.5% |
||||||||
The Boeing Co. |
20,781 | 2,595,755 | ||||||
General Dynamics Corp. |
11,632 | 1,625,688 | ||||||
Lockheed Martin Corp. |
9,098 | 1,733,806 | ||||||
Raytheon Co. |
11,624 | 1,207,501 | ||||||
|
|
|||||||
7,162,750 | ||||||||
|
|
|||||||
Air Freight & Logistics - 0.9% |
||||||||
United Parcel Service, Inc. - Class B |
16,735 | 1,755,669 | ||||||
|
|
|||||||
Commercial Services & Supplies - 0.4% |
||||||||
Waste Management, Inc. |
18,080 | 883,931 | ||||||
|
|
|||||||
Electrical Equipment - 1.9% |
||||||||
ABB Ltd. (Asea Brown Boveri) - ADR (Switzerland) |
74,718 | 1,639,313 | ||||||
Eaton Corp. plc |
12,631 | 863,834 | ||||||
Emerson Electric Co. |
23,203 | 1,486,384 | ||||||
|
|
|||||||
3,989,531 | ||||||||
|
|
|||||||
Industrial Conglomerates - 3.8% |
||||||||
3M Co. |
21,680 | 3,333,734 | ||||||
Koninklijke Philips N.V. - NY Shares (Netherlands) |
40,177 | 1,122,545 | ||||||
Siemens AG - ADR (Germany) |
29,625 | 3,339,923 | ||||||
|
|
|||||||
7,796,202 | ||||||||
|
|
|||||||
Machinery - 2.3% |
||||||||
Caterpillar, Inc. |
16,514 | 1,674,685 | ||||||
Deere & Co. |
12,074 | 1,032,810 | ||||||
Illinois Tool Works, Inc. |
14,784 | 1,346,083 | ||||||
Stanley Black & Decker, Inc. |
6,893 | 645,460 | ||||||
|
|
|||||||
4,699,038 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
8
Dividend Focus Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Industrials (continued) |
||||||||
Road & Rail - 0.6% |
||||||||
CSX Corp. |
32,811 | $ | 1,169,056 | |||||
|
|
|||||||
Total Industrials |
27,456,177 | |||||||
|
|
|||||||
Information Technology - 17.8% |
||||||||
Communications Equipment - 2.1% |
||||||||
Cisco Systems, Inc. |
121,412 | 2,970,952 | ||||||
Telefonaktiebolaget LM Ericsson - ADR (Sweden) |
123,393 | 1,460,973 | ||||||
|
|
|||||||
4,431,925 | ||||||||
|
|
|||||||
IT Services - 2.1% |
||||||||
Accenture plc - Class A |
20,199 | 1,638,543 | ||||||
Automatic Data Processing, Inc. |
18,570 | 1,518,655 | ||||||
Paychex, Inc. |
11,752 | 551,639 | ||||||
Xerox Corp. |
43,114 | 572,554 | ||||||
|
|
|||||||
4,281,391 | ||||||||
|
|
|||||||
Semiconductors & Semiconductor Equipment - 3.5% |
||||||||
Intel Corp. |
148,861 | 5,062,763 | ||||||
KLA-Tencor Corp. |
6,135 | 485,585 | ||||||
Texas Instruments, Inc. |
32,482 | 1,613,056 | ||||||
|
|
|||||||
7,161,404 | ||||||||
|
|
|||||||
Software - 5.0% |
||||||||
CA, Inc. |
15,293 | 444,414 | ||||||
CDK Global, Inc.* |
5,580 | 187,488 | ||||||
Microsoft Corp. |
191,578 | 8,994,587 | ||||||
Symantec Corp. |
23,597 | 585,677 | ||||||
|
|
|||||||
10,212,166 | ||||||||
|
|
|||||||
Technology Hardware, Storage & Peripherals - 5.1% |
||||||||
Apple, Inc. |
77,669 | 8,388,252 | ||||||
Canon, Inc. - ADR (Japan) |
45,180 | 1,401,484 | ||||||
Seagate Technology plc |
9,996 | 628,049 | ||||||
|
|
|||||||
10,417,785 | ||||||||
|
|
|||||||
Total Information Technology |
36,504,671 | |||||||
|
|
|||||||
Materials - 1.9% |
||||||||
Chemicals - 1.3% |
||||||||
The Dow Chemical Co. |
27,279 | 1,347,583 | ||||||
LyondellBasell Industries N.V. - Class A - ADR |
14,133 | 1,295,007 | ||||||
|
|
|||||||
2,642,590 | ||||||||
|
|
|||||||
Metals & Mining - 0.2% |
||||||||
Teck Resources Ltd. - Class B (Canada) |
28,224 | 445,375 | ||||||
|
|
The accompanying notes are an integral part of the financial statements.
9
Dividend Focus Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Materials (continued) |
||||||||
Paper & Forest Products - 0.4% |
||||||||
International Paper Co. |
16,193 | $ | 819,690 | |||||
|
|
|||||||
Total Materials |
3,907,655 | |||||||
|
|
|||||||
Telecommunication Services - 3.4% |
||||||||
Diversified Telecommunication Services - 2.0% |
||||||||
Telekomunikasi Indonesia Persero Tbk PT - ADR (Indonesia) |
18,932 | 858,566 | ||||||
Verizon Communications, Inc. |
63,982 | 3,215,095 | ||||||
|
|
|||||||
4,073,661 | ||||||||
|
|
|||||||
Wireless Telecommunication Services - 1.4% |
||||||||
NTT DOCOMO, Inc. - ADR (Japan) |
127,109 | 2,144,329 | ||||||
SK Telecom Co. Ltd. - ADR (South Korea) |
25,385 | 705,449 | ||||||
|
|
|||||||
2,849,778 | ||||||||
|
|
|||||||
Total Telecommunication Services |
6,923,439 | |||||||
|
|
|||||||
TOTAL COMMON STOCKS |
||||||||
(Identified Cost $160,592,272) |
200,580,732 | |||||||
|
|
|||||||
SHORT-TERM INVESTMENT - 2.1% |
||||||||
Dreyfus Cash Management, Inc. - Institutional Shares1 , 0.03% |
||||||||
(Identified Cost $4,276,098) |
4,276,098 | 4,276,098 | ||||||
|
|
|||||||
TOTAL INVESTMENTS - 99.9% |
||||||||
(Identified Cost $164,868,370) |
204,856,830 | |||||||
OTHER ASSETS, LESS LIABILITIES - 0.1% |
195,623 | |||||||
|
|
|||||||
NET ASSETS - 100% |
$ | 205,052,453 | ||||||
|
|
ADR - American Depositary Receipt
*Non-income producing security.
1Rate shown is the current yield as of October 31, 2014.
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard & Poors, a division of The McGraw-Hill Companies, Inc. (S&P), and is licensed for use by Manning & Napier when referencing GICS sectors. Neither MSCI, S&P, nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification, nor shall any such party have any liability therefrom.
The accompanying notes are an integral part of the financial statements.
10
Dividend Focus Series
Statement of Assets and Liabilities
October 31, 2014
ASSETS: | ||||
Investments, at value (identified cost $164,868,370) (Note 2) |
$ | 204,856,830 | ||
Dividends receivable |
235,420 | |||
Receivable for fund shares sold |
121,701 | |||
Foreign tax reclaims receivable |
68,290 | |||
|
|
|||
TOTAL ASSETS |
205,282,241 | |||
|
|
|||
LIABILITIES: |
||||
Accrued management fees (Note 3) |
74,254 | |||
Accrued fund accounting and administration fees (Note 3) |
13,993 | |||
Accrued transfer agent fees (Note 3) |
3,068 | |||
Accrued shareholder services fees (Class S) (Note 3) |
2,817 | |||
Accrued Chief Compliance Officer service fees (Note 3) |
407 | |||
Payable for fund shares repurchased |
93,222 | |||
Audit fees payable |
19,790 | |||
Printing fees payable |
12,025 | |||
Other payables and accrued expenses |
10,212 | |||
|
|
|||
TOTAL LIABILITIES |
229,788 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 205,052,453 | ||
|
|
|||
NET ASSETS CONSIST OF: |
||||
Capital stock |
$ | 124,921 | ||
Additional paid-in-capital |
154,052,692 | |||
Undistributed net investment income |
593,666 | |||
Accumulated net realized gain on investments |
10,292,714 | |||
Net unrealized appreciation on investments |
39,988,460 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 205,052,453 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class S |
||||
($13,715,660/1,075,932 shares) |
$ | 12.75 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class I |
||||
($191,336,793/11,416,213 shares) |
$ | 16.76 | ||
|
|
The accompanying notes are an integral part of the financial statements.
11
Dividend Focus Series
Statement of Operations
For the Year Ended October 31, 2014
INVESTMENT INCOME: |
||||
Dividends (net of foreign taxes withheld, $188,099) |
$ | 5,416,734 | ||
|
|
|||
EXPENSES: |
||||
Management fees (Note 3) |
835,335 | |||
Fund accounting and administration fees (Note 3) |
54,775 | |||
Shareholder services fees (Class S)(Note 3) |
30,649 | |||
Transfer agent fees (Note 3) |
14,853 | |||
Chief Compliance Officer service fees (Note 3) |
3,161 | |||
Directors fees (Note 3) |
2,134 | |||
Custodian fees |
8,805 | |||
Miscellaneous |
84,938 | |||
|
|
|||
Total Expenses |
1,034,650 | |||
|
|
|||
NET INVESTMENT INCOME |
4,382,084 | |||
|
|
|||
REALIZED AND UNREALIZED GAIN ON INVESTMENTS: |
||||
Net realized gain on investments |
10,359,076 | |||
Net change in unrealized appreciation (depreciation) on investments |
8,904,835 | |||
|
|
|||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS |
19,263,911 | |||
|
|
|||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 23,645,995 | ||
|
|
The accompanying notes are an integral part of the financial statements.
12
Dividend Focus Series
Statements of Changes in Net Assets
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||
OPERATIONS: |
||||||||
Net investment income |
$ | 4,382,084 | $ | 3,944,055 | ||||
Net realized gain on investments |
10,359,076 | 3,273,507 | ||||||
Net change in unrealized appreciation (depreciation) on investments |
8,904,835 | 22,787,788 | ||||||
|
|
|
|
|||||
Net increase from operations |
23,645,995 | 30,005,350 | ||||||
|
|
|
|
|||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||
From net investment income (Class S) |
(333,384 | ) | (252,541 | ) | ||||
From net investment income (Class I) |
(3,921,762 | ) | (3,743,537 | ) | ||||
From net realized gain on investments (Class S) |
(279,952 | ) | (33,422 | ) | ||||
From net realized gain on investments (Class I) |
(3,013,000 | ) | (601,612 | ) | ||||
|
|
|
|
|||||
Total distributions to shareholders |
(7,548,098 | ) | (4,631,112 | ) | ||||
|
|
|
|
|||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||
Net increase from capital share transactions (Note 5) |
19,298,739 | 10,391,604 | ||||||
|
|
|
|
|||||
Net increase in net assets |
35,396,636 | 35,765,842 | ||||||
NET ASSETS: |
||||||||
Beginning of year |
169,655,817 | 133,889,975 | ||||||
|
|
|
|
|||||
End of year (including undistributed net investment income of $593,666 and $466,728, respectively) |
$ | 205,052,453 | $ | 169,655,817 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
13
Dividend Focus Series
Financial Highlights - Class S
FOR THE YEARS ENDED |
FOR THE PERIOD 10/31/12 |
|||||||||||
10/31/14 | 10/31/13 | |||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||
Net asset value - Beginning of period |
$ | 11.88 | $ | 10.14 | $ | 10.00 | ||||||
|
|
|
|
|
|
|||||||
Income from investment operations: |
||||||||||||
Net investment income2 |
0.26 | 0.26 | 0.12 | |||||||||
Net realized and unrealized gain on investments |
1.25 | 1.89 | 0.23 | |||||||||
|
|
|
|
|
|
|||||||
Total from investment operations |
1.51 | 2.15 | 0.35 | |||||||||
|
|
|
|
|
|
|||||||
Less distributions to shareholders: |
||||||||||||
From net investment income |
(0.34 | ) | (0.35 | ) | (0.21 | ) | ||||||
From net realized gain on investments |
(0.30 | ) | (0.06 | ) | | |||||||
|
|
|
|
|
|
|||||||
Total distributions to shareholders |
(0.64 | ) | (0.41 | ) | (0.21 | ) | ||||||
|
|
|
|
|
|
|||||||
Net asset value - End of period |
$ | 12.75 | $ | 11.88 | $ | 10.14 | ||||||
|
|
|
|
|
|
|||||||
Net assets - End of period (000s omitted) |
$ | 13,716 | $ | 10,667 | $ | 5,130 | ||||||
|
|
|
|
|
|
|||||||
Total return3 |
13.12 | % | 21.70 | % | 3.59 | % | ||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||
Expenses |
0.79 | % | 0.81 | % | 0.86 | %4 | ||||||
Net investment income |
2.11 | % | 2.31 | % | 1.76 | %4 | ||||||
Portfolio turnover |
23 | % | 19 | % | 16 | % |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Represents aggregate total return for the periods indicated, and assumes reinvestment of all distributions. Periods less than one year are not annualized.
4Annualized.
The accompanying notes are an integral part of the financial statements.
14
Dividend Focus Series
Financial Highlights - Class I*
FOR THE YEARS ENDED | ||||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 15.41 | $ | 13.03 | $ | 11.96 | $ | 12.41 | $ | 11.38 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1 |
0.38 | 0.37 | 0.34 | 0.27 | 0.36 | |||||||||||||||
Net realized and unrealized gain on investments |
1.64 | 2.45 | 1.05 | 0.88 | 1.02 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
2.02 | 2.82 | 1.39 | 1.15 | 1.38 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.37 | ) | (0.38 | ) | (0.30 | ) | (0.30 | ) | (0.35 | ) | ||||||||||
From net realized gain on investments |
(0.30 | ) | (0.06 | ) | (0.02 | ) | (1.30 | ) | | 2 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.67 | ) | (0.44 | ) | (0.32 | ) | (1.60 | ) | (0.35 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 16.76 | $ | 15.41 | $ | 13.03 | $ | 11.96 | $ | 12.41 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 191,337 | $ | 158,989 | $ | 128,760 | $ | 79,028 | $ | 2,643 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
13.44 | % | 22.02 | % | 11.77 | % | 10.17 | % | 12.32 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||||||||||
Expenses** |
0.54 | % | 0.56 | % | 0.59 | % | 0.60 | % | 0.60 | % | ||||||||||
Net investment income |
2.38 | % | 2.63 | % | 2.69 | % | 2.41 | % | 2.99 | % | ||||||||||
Portfolio turnover |
23 | % | 19 | % | 16 | % | 8 | % | 73 | % | ||||||||||
*Effective March 1, 2012, the shares of the Series have been designated as Class I. | ||||||||||||||||||||
**The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts:
|
| |||||||||||||||||||
N/A | N/A | N/A | 0.45 | % | 5.01 | % |
1Calculated based on average shares outstanding during the years.
2Less than $0.01 per share.
3Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during certain years.
The accompanying notes are an integral part of the financial statements.
15
Dividend Focus Series
Notes to Financial Statements
1. | Organization |
Dividend Focus Series (the Series) is a no-load diversified series of Manning & Napier Fund, Inc. (the Fund). The Fund is organized in Maryland and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The Series investment objective is to provide competitive returns consistent with the broad equity market while providing a level of capital protection during market downturns through a quantitative investment approach.
The Funds Advisor is Manning & Napier Advisors, LLC (the Advisor). Shares of the Series are offered to investors, clients and employees of the Advisor and its affiliates. The total authorized capital stock of the Fund consists of 15 billion shares of common stock each having a par value of $0.01. As of October 31, 2014, 10.6 billion shares have been designated in total among 42 series, of which 100 million have been designated as Dividend Focus Series Class I common stock and 100 million have been designated as Dividend Focus Series Class S common stock.
2. | Significant Accounting Policies |
The following is a summary of significant accounting policies followed by the Series. The Series is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946Investment Companies, which is part of accounting principles generally accepted in the United States of America (GAAP).
Security Valuation
Portfolio securities, including domestic equities, foreign equities, warrants and options, listed on an exchange other than the NASDAQ Stock Market are valued at the latest quoted sales price of the exchange on which the security is primarily traded. Securities not traded on valuation date or securities not listed on an exchange are valued at the latest quoted bid price provided by the Funds pricing service. Securities listed on the NASDAQ Stock Market are valued in accordance with the NASDAQ Official Closing Price.
Short-term investments that mature in sixty days or less are valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at their net asset value per share on valuation date.
Volume and level of activity in established markets for an asset or liability are evaluated to determine whether recent transactions and quoted prices are determinative of fair value. Where there have been significant decreases in volume and level of activity, further analysis and adjustment may be necessary to estimate fair value. The Series measures fair value in these instances by the use of inputs and valuation techniques which may be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry and/or expectation of future cash flows. As a result of trading in relatively thin markets and/or markets that experience significant volatility, the prices used by the Series to value these securities may differ from the value that would be realized if these securities were sold, and the differences could be material.
Securities for which representative valuations or prices are not available from the Series pricing service may be valued at fair value as determined in good faith by the Advisor under procedures approved by and under the general supervision and responsibility of the Funds Board of Directors (the Board). Due to the inherent uncertainty of valuations of such securities, the fair value may differ significantly from the values that would have been used had a ready market for such securities existed. If trading or events occurring after the close of the principal market in which securities are traded are expected to materially affect the value of those securities, then they may be valued at their fair value, taking this trading or these events into account.
Various inputs are used in determining the value of the Series assets or liabilities carried at fair value. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical assets and liabilities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 includes significant unobservable inputs (including the Series own assumptions in determining the fair value of investments). A financial instruments level within the fair value hierarchy is based on the lowest level of any input both
16
Dividend Focus Series
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Valuation (continued)
individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuation levels used for major security types as of October 31, 2014 in valuing the Series assets or liabilities carried at fair value:
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Equity securities: |
||||||||||||||||
Consumer Discretionary |
$ | 15,875,394 | $ | 15,875,394 | $ | | $ | | ||||||||
Consumer Staples |
45,780,713 | 45,780,713 | | | ||||||||||||
Energy |
23,514,314 | 23,514,314 | | | ||||||||||||
Financials |
1,091,151 | 1,091,151 | | | ||||||||||||
Health Care |
39,527,218 | 39,527,218 | | | ||||||||||||
Industrials |
27,456,177 | 27,456,177 | | | ||||||||||||
Information Technology |
36,504,671 | 36,504,671 | | | ||||||||||||
Materials |
3,907,655 | 3,907,655 | | | ||||||||||||
Telecommunication Services |
6,923,439 | 6,923,439 | | | ||||||||||||
Mutual Fund |
4,276,098 | 4,276,098 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 204,856,830 | $ | 204,856,830 | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
There were no Level 2 or Level 3 securities held by the Series as of October 31, 2013 or October 31, 2014.
The Funds policy is to recognize transfers in and transfers out of the valuation levels as of the beginning of the reporting period. There were no transfers between Level 1 and Level 2 during the year ended October 31, 2014.
Security Transactions, Investment Income and Expenses
Security transactions are accounted for on trade date. Dividend income is recorded on the ex-dividend date, except that if the ex-dividend date has passed, certain dividends from foreign securities are recorded as soon as the Series is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Interest income, including amortization of premium and accretion of discounts using the effective interest method, is earned from settlement date and accrued daily.
Expenses are recorded on an accrual basis. Most expenses of the Fund can be attributed to a specific series. Expenses which cannot be directly attributed are apportioned among the series in the Fund in such a manner as deemed equitable by the Funds Board, taking into consideration, among other things, the nature and type of expense.
The Series uses the identified cost method for determining realized gain or loss on investments for both financial statement and federal income tax reporting purposes.
Foreign Currency Translation
The books and records of the Series are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the current exchange rates. Purchases and sales of investment securities and income and expenses are translated on the respective dates of such transactions. The Series does not isolate realized and unrealized gains and losses attributable to changes in the exchange rates from gains and losses that arise from changes in the fair value of investments. Such fluctuations are included with net realized and unrealized gain or loss on investments. Net realized foreign currency gains and losses represent foreign currency gains and losses between trade date and settlement date on securities transactions, gains and losses on disposition of foreign currencies and the difference between the amount of income and foreign withholding taxes recorded on the books of the Series and the amounts actually received or paid.
17
Dividend Focus Series
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Federal Taxes
The Series policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. The Series is not subject to federal income or excise tax to the extent that the Series distributes to shareholders each year its taxable income, including any net realized gains on investments, in accordance with requirements of the Internal Revenue Code. Accordingly, no provision for federal income tax or excise tax has been made in the financial statements.
Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is more likely than not to be sustained assuming examination by taxing authorities. At October 31, 2014, the Series has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns.
The Series files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions, as required. No income tax returns are currently under investigation. The statute of limitations on the Series tax returns remains open for the years ended October 31, 2011 through October 31, 2014. The Series is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Foreign Taxes
Based on the Series understanding of the tax rules and rates related to income, gains and currency purchase/repatriation transactions for foreign jurisdictions in which it invests, the Series will provide for foreign taxes, and where appropriate, deferred foreign tax.
Distributions of Income and Gains
Distributions to shareholders of net investment income are made quarterly. Distributions of net realized gains are made annually. An additional distribution may be necessary to avoid taxation of the Series. Distributions are recorded on the ex-dividend date.
Indemnifications
The Funds organizational documents provide former and current directors and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
18
Dividend Focus Series
Notes to Financial Statements (continued)
3. | Transactions with Affiliates |
The Fund has an Investment Advisory Agreement (the Agreement) with the Advisor, for which the Series pays a fee, computed daily and payable monthly, at an annual rate of 0.45% of the Series average daily net assets.
Under the Agreement, personnel of the Advisor provide the Series with advice and assistance in the choice of investments and the execution of securities transactions, and otherwise maintain the Series organization. The Advisor also provides the Fund with necessary office space and fund administration and support services. The salaries of all officers of the Fund (except a percentage of the Funds Chief Compliance Officers salary, which is paid by the Fund), and of all Directors who are affiliated persons of the Fund, or of the Advisor, and all personnel of the Fund, or of the Advisor, performing services relating to research, statistical and investment activities, are paid by the Advisor. Each non-affiliated Director receives an annual stipend, which is allocated among all the active series of the Fund. In addition, these Directors also receive a fee per Board meeting attended plus a fee for each committee meeting attended and are reimbursed for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings. The Fund also has an Audit Committee Chair, who receives an additional annual stipend for this role.
The Class S shares of the Series are subject to a shareholder services fee in accordance with a shareholder services plan adopted by the Funds Board. The shareholder services fee is intended to compensate financial intermediaries, including affiliates of the Fund, in connection with the provision of direct client service, personal services, maintenance of shareholder accounts and reporting services. For these services, the Class S shares of the Series pay a fee, computed daily and payable monthly, at an annual rate of 0.25% of the average daily net assets of Class S. The Fund has a Shareholder Services Agreement with the Advisor, for which the Advisor receives the shareholder services fee as stated above.
The Advisor has contractually agreed, until at least February 29, 2016, to waive its management fee and, if necessary, pay other operating expenses of the Series in order to maintain total direct annual fund operating expenses for the Series, exclusive of shareholder service fees, at no more than 0.60% of average daily net assets each year. For the year ended October 31, 2014, the Advisor did not waive fees or reimburse expenses for the Series. The Advisor is not eligible to recoup any expenses that have been waived or reimbursed in prior years.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate of the Advisor, acts as distributor for the Funds shares. The services of Manning & Napier Investor Services, Inc. are provided at no additional cost to the Series.
The Advisor has agreements with BNY Mellon Investment Servicing (U.S.) Inc. (BNY) under which BNY serves as sub-accountant services agent and sub-transfer agent. The Fund pays the Advisor an annual fee related to fund accounting and administration of 0.0175% on the first $3 billion of average daily net assets (excluding Target Series and Strategic Income Series); 0.015% on the next $3 billion of average daily net assets (excluding Target Series and Strategic Income Series); and 0.01% of the average daily net assets in excess of $6 billion (excluding Target Series and Strategic Income Series); plus a base fee of $25,500 per series. Transfer Agent fees are charged to the Fund on a per account basis. Additionally, certain transaction and cusip-based fees and out-of-pocket expenses, including charges for reporting relating to the Funds compliance program, are charged. Effective October 1, 2012, the aforementioned agreements were modified to reduce the annual fee related to fund accounting and administration, as well as transfer agent fees, by 10%, excluding out-of-pocket expenses, until at least October 1, 2015.
Expenses not directly attributable to a series are allocated based on each series relative net assets or number of accounts, depending on the expense.
4. | Purchases and Sales of Securities |
For the year ended October 31, 2014, purchases and sales of securities, other than U.S. Government securities and short-term securities, were $56,585,141 and $40,950,755, respectively. There were no purchases or sales of U.S. Government securities.
19
Dividend Focus Series
Notes to Financial Statements (continued)
5. | Capital Stock Transactions |
Transactions in Class S and I shares of Dividend Focus Series were:
CLASS S |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Sold |
320,096 | $ | 3,902,262 | 877,363 | $ | 9,728,990 | ||||||||||
Reinvested |
50,658 | 602,636 | 25,748 | 279,952 | ||||||||||||
Repurchased |
(192,945 | ) | (2,342,673 | ) | (510,763 | ) | (5,721,259 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
177,809 | $ | 2,162,225 | 392,348 | $ | 4,287,683 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
CLASS I |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Sold |
2,601,735 | $ | 41,024,236 | 2,367,127 | $ | 33,398,961 | ||||||||||
Reinvested |
219,152 | 3,412,112 | 167,225 | 2,322,206 | ||||||||||||
Repurchased |
(1,720,300 | ) | (27,299,834 | ) | (2,097,414 | ) | (29,617,246 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
1,100,587 | $ | 17,136,514 | 436,938 | $ | 6,103,921 | ||||||||||
|
|
|
|
|
|
|
|
At October 31, 2014, one shareholder account owned 4,527,832 shares of the Series (36.2% of shares outstanding) valued at $75,886,472. In addition, the retirement plan of the Advisor and its affiliates owned 171,791 shares of the Series (1.4% of shares outstanding) valued at $2,879,223. Investment activities of these shareholders may have a material effect on the Series.
6. | Financial Instruments |
The Series may trade in instruments including written and purchased options, forward foreign currency exchange contracts and futures contracts and other derivatives in the normal course of investing activities to assist in managing exposure to various market risks. The Series may be subject to various elements of risk which may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. These risks include: the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index; counterparty credit risk related to over the counter derivative counterparties failure to perform under contract terms; liquidity risk related to the lack of a liquid market for these contracts allowing the fund to close out its position(s); and documentation risk relating to disagreement over contract terms. No such investments were held by the Series as of October 31, 2014.
7. | Foreign Securities |
Investing in securities of foreign companies and foreign governments involves special risks and considerations not typically associated with investing in securities of domestic companies and the U.S. Government. These risks include revaluation of currencies and future adverse political and economic developments. Moreover, securities of foreign companies and foreign governments and their markets may be less liquid and their prices more volatile than those of comparable domestic companies and the U.S. Government.
8. | Federal Income Tax Information |
The amount and characterization of certain income and capital gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatment on losses deferred due to wash sales. The Series may periodically make reclassifications among its capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations, without impacting the Series net asset value. Any such reclassifications are not reflected in the financial highlights.
20
Dividend Focus Series
Notes to Financial Statements (continued)
8. | Federal Income Tax Information (continued) |
The tax character of distributions paid were as follows:
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||
Ordinary income |
$ | 4,400,112 | $ | 4,475,466 | ||||
Long-term capital gains |
3,147,986 | 155,646 |
At October 31, 2014, the tax basis of components of distributable earnings and the net unrealized appreciation based on identified cost of investments for federal income tax purposes were as follows:
21
Dividend Focus Series
Report of Independent Registered Public Accounting Firm
To the Board of Directors of Manning & Napier Fund, Inc. and Shareholders of Dividend Focus Series:
In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Dividend Focus Series (a series of Manning & Napier Fund, Inc., hereafter referred to as the Series) at October 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Series management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
New York, New York
December 19, 2014
22
Dividend Focus Series
Supplemental Tax Information
(unaudited)
All reportings are based on financial information available as of the date of this annual report and, accordingly, are subject to change.
For federal income tax purposes, the Series reports for the current fiscal year $5,587,695 or, if different, the maximum amount allowable under the tax law, as qualified dividend income.
For corporate shareholders, the percentage of investment income (dividend income plus short-term gains, if any) that qualifies for the dividends received deduction for the current fiscal year is 83.13%.
The Series designates $10,107,986 as Long-Term Capital Gain dividends pursuant to Section 852(b) of the Code for the fiscal year ended October 31, 2014.
23
Dividend Focus Series
Directors and Officers Information
(unaudited)
The Statement of Additional Information provides additional information about the Funds directors and officers and can be obtained without charge by calling 1-800-466-3863, at www.manningnapieradvisors.com, or on the EDGAR Database on the SEC Internet web site (http:// www.sec.gov). The following chart shows certain information about the Funds officers and directors, including their principal occupations during the last five years. Unless specific dates are provided, the individuals have held the listed positions for longer than five years.
Interested | Director/Officer |
Name: |
B. Reuben Auspitz* | |
Address: |
290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: |
67 | |
Current Position(s) Held with Fund: |
Principal Executive Officer, President, Chairman & Director | |
Term of Office1 & Length of Time Served: |
Indefinite - Director since 1984; Principal Executive Officer since 2002; | |
President since 2004; Vice President 1984-2003. | ||
Principal Occupation(s) During Past 5 Years: |
Executive Vice President since 1993; Chief Compliance Officer since 2004; Vice Chairman since June 2010; Co-Executive Director from 2002-2010 - Manning & Napier Advisors, LLC; President, Director - Manning & Napier Investor Services, Inc. Holds or has held one or more of the following titles for various subsidiaries and affiliates: President, Vice President, Director, Chairman, Treasurer, Chief Compliance Officer or Member. | |
Number of Portfolios Overseen within Fund Complex: |
42 | |
Other Directorships Held Outside Fund Complex: |
N/A |
Independent | Directors |
Name: |
Stephen B. Ashley | |
Address: |
290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: |
74 | |
Current Position(s) Held with Fund: |
Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: |
Indefinite - Since 1996 | |
Principal Occupation(s) During Past 5 Years: |
Chairman, Director, President & Chief Executive Officer, The Ashley Group (property management and investment). Director 1995-2008 and Chairman (non-executive) 2004-2008 - Fannie Mae (mortgage) | |
Number of Portfolios Overseen within Fund Complex: |
42 | |
Other Directorships Held Outside Fund Complex: |
Fannie Mae (1995-2008) | |
The Ashley Group (1995-2008) | ||
Genesee Corporation (1987-2007) | ||
Name: |
Paul A. Brooke | |
Address: |
290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: |
68 | |
Current Position(s) Held with Fund: |
Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: |
Indefinite - Since 2007 | |
Principal Occupation(s) During Past 5 Years: |
Chairman & CEO (2005-2009) - Alsius Corporation (investments); Managing Member, PMSV Holdings LLC (investments) since 1991; Managing Member, Venbio (investments) since 2010. | |
Number of Portfolios Overseen within Fund Complex: |
42 | |
Other Directorships Held Outside Fund Complex: |
Incyte Corp. (2000-present) | |
ViroPharma, Inc. (2000-present) | ||
HLTH Corp (WebMD) (2000-2010) | ||
Cheyne Capital International (2000-present) | ||
MPM Bio-equities (2000-2009) | ||
GMP Companies (2000-present) | ||
HoustonPharma (2000-2009) | ||
Cytos Biotechnology Ltd. (2012-present) |
24
Dividend Focus Series
Directors and Officers Information
(unaudited)
Independent | Directors (continued) |
Name: |
Peter L. Faber | |
Address: |
290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: |
76 | |
Current Position(s) Held with Fund: |
Director, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: |
Indefinite - Since 1987 | |
Principal Occupation(s) During Past 5 Years: |
Senior Counsel (2006-2012), Partner (1995-2006 & 2013-present) - McDermott, Will & Emery LLP (law firm) | |
Number of Portfolios Overseen within Fund Complex: |
42 | |
Other Directorships Held Outside Fund Complex: |
Partnership for New York City, Inc. (non-profit) (1989-2010) | |
New York Collegium (non-profit) (2004-2011) | ||
Boston Early Music Festival (non-profit) | ||
Name: |
Harris H. Rusitzky | |
Address: |
290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: |
79 | |
Current Position(s) Held with Fund: |
Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: |
Indefinite - Since 1985 | |
Principal Occupation(s) During Past 5 Years: |
President, The Greening Group (business consultants) since 1994; Partner, The Restaurant Group (restaurants) since 2006 | |
Number of Portfolios Overseen within Fund Complex: |
42 | |
Other Directorships Held Outside Fund Complex: |
N/A | |
Name: |
Chester N. Watson | |
Address: |
290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: |
64 | |
Current Position(s) Held with Fund: |
Director, Audit Committee Chairman, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: |
Indefinite - Since 2012 | |
Principal Occupation(s) During Past 5 Years: |
General Auditor (2003-2011) - General Motors Company (auto manufacturer) | |
Number of Portfolios Overseen within Fund Complex: |
42 | |
Other Directorships Held Outside Fund Complex: |
N/A |
Officers |
Name: |
Jeffrey S. Coons, Ph.D., CFA | |
Address: |
290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: |
51 | |
Current Position(s) Held with Fund: |
Vice President | |
Term of Office1 & Length of Time Served: |
Since 2004 | |
Principal Occupation(s) During Past 5 Years: |
President since 2010, Co-Director of Research since 2002 - Manning & Napier Advisors, LLC Holds one or more of the following titles for various subsidiaries and affiliates: President, Director, Treasurer or Senior Trust Officer. | |
Number of Portfolios Overseen within Fund Complex: |
42 | |
Other Directorships Held Outside Fund Complex: |
N/A | |
Name: |
Elizabeth Craig | |
Address: |
290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: |
27 | |
Current Position(s) Held with Fund: |
Assistant Corporate Secretary | |
Term of Office1 & Length of Time Served: |
Since 2011 | |
Principal Occupation(s) During Past 5 Years: |
Mutual Fund Compliance Specialist since 2009 - Manning & Napier Advisors, LLC | |
Number of Portfolios Overseen within Fund Complex: |
42 | |
Other Directorships Held Outside Fund Complex: |
N/A |
25
Dividend Focus Series
Directors and Officers Information
(unaudited)
Officers | (continued) |
Name: |
Christine Glavin | |
Address: |
290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: |
48 | |
Current Position(s) Held with Fund: |
Principal Financial Officer, Chief Financial Officer | |
Term of Office1 & Length of Time Served: |
Principal Financial Officer since 2002; Chief Financial Officer since 2001 | |
Principal Occupation(s) During Past 5 Years: |
Director of Fund Reporting since 2011; Fund Reporting Manager (1997-2011) - Manning & Napier Advisors, LLC; Assistant Treasurer since 2008 - Exeter Trust Company | |
Number of Portfolios Overseen within Fund Complex: |
42 | |
Other Directorships Held Outside Fund Complex: |
N/A | |
Name: |
Jodi L. Hedberg | |
Address: |
290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: |
46 | |
Current Position(s) Held with Fund: |
Corporate Secretary, Chief Compliance Officer, Anti-Money Laundering Compliance Officer | |
Term of Office1 & Length of Time Served: |
Corporate Secretary since 1997; Chief Compliance Officer since 2004; Anti-Money Laundering Compliance Officer | |
Principal Occupation(s) During Past 5 Years: |
Director of Compliance, Manning & Napier Advisors, LLC and affiliates since 1990 (title change in 2005 from Compliance Manager to Director of Compliance); Corporate Secretary, Manning & Napier Investor Services, Inc. since 2006 | |
Number of Portfolios Overseen within Fund Complex: |
42 | |
Other Directorships Held Outside Fund Complex: |
N/A | |
Name: |
Richard Yates | |
Address: |
290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: |
49 | |
Current Position(s) Held with Fund: |
Chief Legal Officer | |
Term of Office1 & Length of Time Served: |
Chief Legal Officer since 2004 | |
Principal Occupation(s) During Past 5 Years: |
Counsel - Manning & Napier Advisors, LLC and affiliates since 2000; Holds one or more of the following titles for various affiliates; Director or Corporate Secretary | |
Number of Portfolios Overseen within Fund Complex: |
42 | |
Other Directorships Held Outside Fund Complex: |
N/A |
*Interested Director, within the meaning of the Investment Company Act of 1940 by reason of his position with the Funds investment advisor and distributor. Mr. Auspitz serves as the Executive Vice President and Director, Manning & Napier Advisors, LLC and President and Director, Manning & Napier Investor Services, Inc., the Funds distributor.
1The term of office of all officers shall be one year and until their respective successors are chosen and qualified, or his or her earlier resignation or removal as provided in the Funds By-Laws.
26
Dividend Focus Series
Literature Requests
(unaudited)
Proxy | Voting Policies and Procedures |
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the Securities and Exchange | ||||
Commissions (SEC) web site | http://www.sec.gov |
Proxy | Voting Record |
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
Quarterly | Portfolio Holdings |
The Series complete schedule of portfolio holdings for the 1st and 3rd quarters of each fiscal year are provided on Form N-Q, and are available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
The Series Form N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Prospectus | and Statement of Additional Information (SAI) |
For more information about any of the Manning & Napier Fund, Inc. Series, you may obtain a prospectus and SAI at www.manning-napier.com or by calling (800) 466-3863. Before investing, carefully consider the objectives, risks, charges and expenses of the investment and read the prospectus carefully as it contains this and other information about the investment company. In addition, this information can be found on the SECs web site, http://www.sec.gov.
Additional | information available at www.manning-napier.com |
1. Fund Holdings - Month-End
2. Fund Holdings - Quarter-End
3. Shareholder Report - Annual
4. Shareholder Report - Semi-Annual
The Fund also offers electronic notification or e-delivery when certain documents are available on-line to be downloaded or reviewed. Direct shareholders can elect to receive electronic notification when shareholder reports, prospectus updates, and/or statements are available. If you do not currently have on-line access to your account, you can establish access by going to www.manning-napier.com, click on Login in the top corner of the page, and follow the prompts to self-enroll. Once enrolled, you can set your electronic notification preferences by clicking on the Account Options tab located within the green toolbar and then select E-Delivery Option. Should you have any questions on either how to establish on-line access or how to update your account settings, please contact Investor Services at 1-800-466-3863.
The Manning & Napier Fund, Inc. is managed by Manning & Napier Advisors, LLC. Manning & Napier Investor Services, Inc., an affiliate of Manning & Napier Advisors, LLC, is the distributor of the Fund shares.
MNDIV-10/14-AR
Overseas Series
Management Discussion and Analysis
(unaudited)
Dear Shareholders:
The global economy remained on a slow growth path during the past year. Developed economies continued to support economic growth through accommodative monetary policy, and as the year progressed, central banks in areas such as Europe and Japan loosened policy further to combat persistent growth headwinds. Meanwhile, the U.S. economy slowed as it meandered through a very harsh winter, but recovered quickly during the spring and summer months of 2014. The Federal Reserve completed its third quantitative easing program and market expectations for subsequent adjustment to domestic monetary policy during 2015 helped fuel a meaningful increase in the value of the dollar relative to other global currencies during the period. With the U.S. economy making positive strides, its equity markets generally performed strongly as well. Global markets were broadly weaker, although pockets of strength existed in certain emerging market countries where encouraging political developments and reform momentum helped lift investor sentiment. Looking ahead, we expect the slow global growth environment to remain in place for the foreseeable future.
As always, we appreciate your business.
Sincerely,
Manning & Napier Advisors, LLC
1
Overseas Series
Fund Commentary
(unaudited)
Investment Objective
To maximize long-term growth by investing principally in the common stocks of companies located around the world. The Series invests primarily in foreign companies, including those in developed and emerging markets.
Performance Commentary
Global equity market performance was mixed during the twelve month period through October 31, 2014. The broad MSCI ACWI ex USA Index (ACWIxUS) was largely flat, returning 0.06%. Performance of the Overseas Series was weaker as the portfolio returned -6.12%, underperforming the benchmark on a relative basis.
The Series underperformance relative to the ACWIxUS during the year was driven by stock selection. Sector allocation also detracted from relative returns. Regarding major detractors from relative performance, stock selection in Energy, Consumer Staples, and Consumer Discretionary challenged relative returns. The Series overweight to Materials relative to the benchmark detracted from relative returns as well. From a country positioning and selection perspective, stock selection in Canada, the United Kingdom, and France challenged relative returns. The Series lack of exposure to India also challenged relative returns as India was one of the strongest global markets during the one year period.
Offsetting a portion of the relative performance weakness were positive contributions to relative returns from stock selection in Materials and Telecommunication Services. The Series overweight to Health Care relative to the benchmark also aided relative returns. At a country level, stock selection in Brazil and China contributed positively, as did the Series overweight to Denmark relative to the benchmark.
In regards to current portfolio positioning, we are focused on finding companies with growth drivers that are not tied to the broad global economy. We believe the key to generating attractive returns in the prevailing environment is the ability to identify individual businesses that can innovate and disrupt the competitive environment in which they operate. This involves finding businesses that are generating growth by creating new markets, expanding existing markets, or simply by taking share from their rivals.
As conditions in some of the worlds most important economic regions appear to be at different stages in the economic cycle, we believe investors should expect the monetary policies of major central banks which have remained highly accommodative across the board in the developed world for a period of years to diverge at some point in the future. This could lead to new bouts of volatility in financial markets. Given the lack of extremes in the market today, we would view the resurgence of volatility as a buying opportunity, but being selective is critical. Broadly speaking, valuations in the developed world are neutral at best, whereas valuations in select emerging markets are relatively more attractive. Shareholders should expect us to pursue areas of global markets where we see a compelling combination of attractive business fundamentals and long-term appreciation potential. As has been the case for more than 40 years, Manning & Napier remains committed to helping investors achieve their financial goals through an active, flexible approach to investment management.
Please see the next page for additional performance information as of October 31, 2014.
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than that quoted; investors can obtain the most recent month-end performance at www.manning-napier.com or by calling (800) 466-3863.
The current international stock market cycle is 04/01/2003 through current.
All investments involve risks, including possible loss of principal. Funds whose investments are concentrated in foreign countries may be subject to fluctuating currency values, different accounting standards, and economic and political instability. The value of the Series may be affected by changes in exchange rates between foreign currencies and the U.S. dollar. Investments in emerging markets may be more volatile than investments in more developed markets.
2
Overseas Series
Performance Update as of October 31, 2014
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 |
||||||||||||||||
ONE YEAR1 |
FIVE YEAR |
TEN YEAR |
SINCE INCEPTION2 |
|||||||||||||
Manning & Napier Fund, Inc. - Overseas Series3,4 |
-6.12 | % | 5.29 | % | 6.86 | % | 8.46 | % | ||||||||
MSCI ACWI ex USA Index5 |
0.06 | % | 6.09 | % | 6.59 | % | 6.19 | % |
The following graph compares the value of a $1,000,000 investment in the Manning & Napier Fund, Inc. - Overseas Series for the ten years ended October 31, 2014 to the MSCI ACWI ex USA Index.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from September 23, 1998, the Collectives inception date (see Note 4 below). Prior to 2001, the MSCI ACWI ex USA only published month-end numbers; therefore, performance numbers for the Index are calculated from September 30, 1998.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.74%. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 0.74% for the year ended October 31, 2014.
4Prior to July 10, 2002, all performance figures reflect the performance of the Exeter Trust Company Group Trust for Employee Benefit Plans: International Collective Investment Trust (the Collective), which was managed by Manning & Napier Advisors, Inc. (predecessor to Manning & Napier Advisors, LLC), an affiliate of the distributor, and reorganized into the Manning & Napier Fund, Inc. Overseas Series on July 10, 2002. The Collective was not open to the public generally or registered under the Investment Company Act of 1940 and the fees of the Collective were lower than the Series fees. Therefore, the historical performance of the Collective would have been lower if the Collective had been subject to the same fees as the Series.
5The MSCI ACWI ex USA Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index returns do not reflect any fees or expenses. The Index is denominated in U.S. dollars. The Index returns assume daily investment of gross dividends (which do not account for applicable dividend taxation) prior to December 31, 1998, as net returns were not available. Subsequent to December 31, 1998, the Index returns are net of withholding taxes. They assume daily reinvestment of net dividends, thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg.
3
Overseas Series
Shareholder Expense Example
(unaudited)
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD* 5/1/14-10/31/14 | ||||
Actual |
$1,000.00 | $896.10 | $3.54 | |||
Hypothetical |
||||||
(5% return before expenses) |
$1,000.00 | $1,021.48 | $3.77 |
*Expenses are equal to the Series annualized expense ratio (for the six-month period) of 0.74%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
4
Overseas Series
Portfolio Composition as of October 31, 2014
(unaudited)
5
Overseas Series
Investment Portfolio - October 31, 2014
SHARES | VALUE | |||||||
(NOTE 2) | ||||||||
COMMON STOCKS - 98.4% |
||||||||
Consumer Discretionary - 18.0% |
||||||||
Automobiles - 0.8% |
||||||||
Toyota Motor Corp. (Japan)1 |
372,800 | $ | 22,434,065 | |||||
|
|
|||||||
Diversified Consumer Services - 1.8% |
||||||||
Kroton Educacional S.A. (Brazil) |
6,810,620 | 48,539,307 | ||||||
|
|
|||||||
Hotels, Restaurants & Leisure - 2.0% |
||||||||
Accor S.A. (France)1 |
1,248,800 | 52,464,918 | ||||||
|
|
|||||||
Internet & Catalog Retail - 0.5% |
||||||||
Ocado Group plc (United Kingdom)*1 |
3,123,638 | 12,442,691 | ||||||
|
|
|||||||
Media - 7.4% |
||||||||
British Sky Broadcasting Group plc (United Kingdom)1 |
5,593,450 | 79,271,448 | ||||||
ITV plc (United Kingdom)1 |
4,488,630 | 14,582,082 | ||||||
Liberty Global plc - Class A - ADR (United Kingdom)* |
716,330 | 32,571,525 | ||||||
Liberty Global plc - Class C - ADR (United Kingdom)* |
556,600 | 24,752,002 | ||||||
Modern Times Group AB - Class B (Sweden)1 |
421,325 | 13,025,677 | ||||||
ProSiebenSat.1 Media AG (Germany)1 |
384,570 | 15,535,125 | ||||||
Societe Television Francaise 1 (France)1 |
1,035,186 | 15,433,089 | ||||||
|
|
|||||||
195,170,948 | ||||||||
|
|
|||||||
Multiline Retail - 1.0% |
||||||||
Marks & Spencer Group plc (United Kingdom)1 |
3,877,620 | 25,250,248 | ||||||
|
|
|||||||
Specialty Retail - 1.6% |
||||||||
Kingfisher plc (United Kingdom)1 |
9,001,939 | 43,609,396 | ||||||
|
|
|||||||
Textiles, Apparel & Luxury Goods - 2.9% |
||||||||
Adidas AG (Germany)1 |
596,160 | 43,439,764 | ||||||
lululemon athletica, Inc. (United States)* |
813,550 | 33,884,357 | ||||||
|
|
|||||||
77,324,121 | ||||||||
|
|
|||||||
Total Consumer Discretionary |
477,235,694 | |||||||
|
|
|||||||
Consumer Staples - 21.2% |
||||||||
Beverages - 8.6% |
||||||||
AMBEV S.A. - ADR (Brazil)* |
6,219,135 | 41,543,822 | ||||||
Anheuser-Busch InBev N.V. (Belgium)1 |
433,460 | 48,068,232 | ||||||
Carlsberg A/S - Class B (Denmark)1 |
307,300 | 27,103,448 | ||||||
Diageo plc (United Kingdom)1 |
1,513,730 | 44,643,321 | ||||||
Remy Cointreau S.A. (France)1 |
195,510 | 13,913,904 | ||||||
SABMiller plc (United Kingdom)1 |
953,360 | 53,924,646 | ||||||
|
|
|||||||
229,197,373 | ||||||||
|
|
|||||||
Food & Staples Retailing - 4.6% |
||||||||
Carrefour S.A. (France)1 |
1,853,145 | 54,316,217 | ||||||
Tesco plc (United Kingdom)1 |
23,944,470 | 66,469,314 | ||||||
|
|
|||||||
120,785,531 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
6
Overseas Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Consumer Staples (continued) |
||||||||
Food Products - 5.2% |
||||||||
Charoen Pokphand Foods PCL (Thailand)1 |
20,890,019 | $ | 20,051,348 | |||||
Danone S.A. (France)1 |
891,690 | 60,931,378 | ||||||
Nestle S.A. (Switzerland)1 |
401,960 | 29,477,391 | ||||||
Unilever plc - ADR (United Kingdom) |
679,120 | 27,320,998 | ||||||
|
|
|||||||
137,781,115 | ||||||||
|
|
|||||||
Personal Products - 1.1% |
||||||||
Beiersdorf AG (Germany)1 |
352,490 | 28,579,448 | ||||||
|
|
|||||||
Tobacco - 1.7% |
||||||||
Imperial Tobacco Group plc (United Kingdom)1 |
722,110 | 31,369,656 | ||||||
Swedish Match AB (Sweden)1 |
453,740 | 14,754,284 | ||||||
|
|
|||||||
46,123,940 | ||||||||
|
|
|||||||
Total Consumer Staples |
562,467,407 | |||||||
|
|
|||||||
Energy - 12.8% |
||||||||
Energy Equipment & Services - 4.3% |
||||||||
CGG S.A. (France)*1 |
3,182,657 | 18,387,593 | ||||||
Petroleum Geo-Services ASA (Norway)1 |
2,473,040 | 12,283,120 | ||||||
Schlumberger Ltd. (United States) |
653,200 | 64,444,712 | ||||||
Trican Well Service Ltd. (Canada) |
2,060,940 | 18,469,007 | ||||||
Trican Well Service Ltd. - ADR (Canada) |
83,360 | 736,736 | ||||||
|
|
|||||||
114,321,168 | ||||||||
|
|
|||||||
Oil, Gas & Consumable Fuels - 8.5% |
||||||||
Cameco Corp. (Canada) |
3,040,760 | 52,848,409 | ||||||
Encana Corp. (Canada) |
3,532,485 | 65,810,196 | ||||||
Koninklijke Vopak N.V. (Netherlands)1 |
276,080 | 13,845,216 | ||||||
Petroleo Brasileiro S.A. - ADR (Brazil) |
1,738,127 | 21,257,293 | ||||||
Talisman Energy, Inc. (Canada) |
8,266,940 | 52,738,830 | ||||||
Talisman Energy, Inc. - ADR (Canada) |
202,460 | 1,291,695 | ||||||
Whitehaven Coal Ltd. (Australia)*1 |
12,332,606 | 16,539,593 | ||||||
|
|
|||||||
224,331,232 | ||||||||
|
|
|||||||
Total Energy |
338,652,400 | |||||||
|
|
|||||||
Financials - 5.1% |
||||||||
Banks - 1.7% |
||||||||
HSBC Holdings plc (United Kingdom)1 |
4,382,490 | 44,680,882 | ||||||
|
|
|||||||
Capital Markets - 1.0% |
||||||||
CETIP S.A. - Mercados Organizados (Brazil) |
2,028,190 | 25,701,266 | ||||||
|
|
|||||||
Insurance - 2.4% |
||||||||
Admiral Group plc (United Kingdom)1 |
2,997,590 | 64,139,604 | ||||||
|
|
|||||||
Total Financials |
134,521,752 | |||||||
|
|
The accompanying notes are an integral part of the financial statements.
7
Overseas Series
Investment Portfolio - October 31, 2014
VALUE | ||||||||
SHARES | (NOTE 2) | |||||||
COMMON STOCKS (continued) |
||||||||
Health Care - 12.4% |
||||||||
Health Care Equipment & Supplies - 2.1% |
||||||||
BioMerieux (France)1 |
136,630 | $ | 14,413,105 | |||||
Shandong Weigao Group Medical Polymer Co. Ltd. - Class H (China)1 |
40,428,000 | 40,882,229 | ||||||
|
|
|||||||
55,295,334 | ||||||||
|
|
|||||||
Health Care Providers & Services - 3.6% |
||||||||
Fresenius Medical Care AG & Co. KGaA (Germany)1 |
772,970 | 56,734,177 | ||||||
Life Healthcare Group Holdings Ltd. (South Africa)1 |
9,988,820 | 37,773,738 | ||||||
|
|
|||||||
94,507,915 | ||||||||
|
|
|||||||
Life Sciences Tools & Services - 1.1% |
||||||||
QIAGEN N.V. (United States)*1 |
1,303,166 | 30,626,248 | ||||||
QIAGEN N.V. - ADR (United States)* |
3,340 | 78,356 | ||||||
|
|
|||||||
30,704,604 | ||||||||
|
|
|||||||
Pharmaceuticals - 5.6% |
||||||||
Novo Nordisk A/S - Class B (Denmark)1 |
940,515 | 42,513,839 | ||||||
Otsuka Holdings Co. Ltd. (Japan)1 |
605,420 | 21,236,958 | ||||||
Roche Holding AG (Switzerland)1 |
100,300 | 29,598,694 | ||||||
Sanofi (France)1 |
596,967 | 54,168,781 | ||||||
|
|
|||||||
147,518,272 | ||||||||
|
|
|||||||
Total Health Care |
328,026,125 | |||||||
|
|
|||||||
Industrials - 10.8% |
||||||||
Airlines - 2.3% |
||||||||
Latam Airlines Group S.A. - ADR (Chile)* |
1,295,321 | 15,802,916 | ||||||
Ryanair Holdings plc - ADR (Ireland)* |
819,237 | 45,500,423 | ||||||
|
|
|||||||
61,303,339 | ||||||||
|
|
|||||||
Commercial Services & Supplies - 0.7% |
||||||||
Aggreko plc (United Kingdom)1 |
814,943 | 19,882,846 | ||||||
|
|
|||||||
Electrical Equipment - 1.5% |
||||||||
Nexans S.A. (France)*1 |
585,810 | 17,849,950 | ||||||
Schneider Electric SE (France)1 |
265,066 | 20,883,503 | ||||||
|
|
|||||||
38,733,453 | ||||||||
|
|
|||||||
Machinery - 3.0% |
||||||||
Komatsu Ltd. (Japan)1 |
1,194,900 | 28,210,824 | ||||||
SKF AB - Class B (Sweden)1 |
2,522,660 | 50,598,075 | ||||||
|
|
|||||||
78,808,899 | ||||||||
|
|
|||||||
Professional Services - 1.8% |
||||||||
SGS S.A. (Switzerland)1 |
21,410 | 47,070,381 | ||||||
|
|
|||||||
Trading Companies & Distributors - 1.5% |
||||||||
Brenntag AG (Germany)1 |
832,730 | 40,405,344 | ||||||
|
|
|||||||
Total Industrials |
286,204,262 | |||||||
|
|
The accompanying notes are an integral part of the financial statements.
8
Overseas Series
Investment Portfolio - October 31, 2014
SHARES | VALUE | |||||||
(NOTE 2) | ||||||||
COMMON STOCKS (continued) |
||||||||
Information Technology - 4.6% |
||||||||
Internet Software & Services - 3.2% |
||||||||
Qihoo 360 Technology Co. Ltd. - ADR (China)* |
565,110 | $ | 41,241,728 | |||||
Tencent Holdings Ltd. (China)1 |
2,635,700 | 42,361,690 | ||||||
|
|
|||||||
83,603,418 | ||||||||
|
|
|||||||
IT Services - 1.4% |
||||||||
Amdocs Ltd. - ADR (United States) |
787,720 | 37,448,209 | ||||||
|
|
|||||||
Total Information Technology |
121,051,627 | |||||||
|
|
|||||||
Materials - 11.9% |
||||||||
Chemicals - 4.2% |
||||||||
Akzo Nobel N.V. (Netherlands)1 |
208,640 | 13,913,459 | ||||||
Potash Corp. of Saskatchewan, Inc. (Canada) |
909,001 | 31,060,564 | ||||||
Sociedad Quimica y Minera de Chile S.A. - ADR (Chile) |
625,500 | 14,843,115 | ||||||
Syngenta AG (Switzerland)1 |
83,023 | 25,675,494 | ||||||
Umicore S.A. (Belgium)1 |
661,940 | 25,980,107 | ||||||
|
|
|||||||
111,472,739 | ||||||||
|
|
|||||||
Construction Materials - 2.6% |
||||||||
CRH plc (Ireland)1 |
1,805,953 | 40,128,501 | ||||||
Holcim Ltd. (Switzerland)1 |
398,310 | 28,269,880 | ||||||
|
|
|||||||
68,398,381 | ||||||||
|
|
|||||||
Metals & Mining - 5.1% |
||||||||
Alumina Ltd. (Australia)*1 |
17,139,005 | 24,770,962 | ||||||
Iluka Resources Ltd. (Australia)1 |
2,084,400 | 13,381,300 | ||||||
Norsk Hydro ASA (Norway)1 |
7,979,324 | 44,675,584 | ||||||
Teck Resources Ltd. - Class B (Canada) |
2,207,630 | 34,836,401 | ||||||
ThyssenKrupp AG (Germany)*1 |
816,780 | 19,685,663 | ||||||
|
|
|||||||
137,349,910 | ||||||||
|
|
|||||||
Total Materials |
317,221,030 | |||||||
|
|
|||||||
Telecommunication Services - 1.6% |
||||||||
Wireless Telecommunication Services - 1.6% |
||||||||
America Movil S.A.B. de C.V. - Class L - ADR (Mexico) |
1,798,340 | 43,897,479 | ||||||
|
|
|||||||
TOTAL COMMON STOCKS |
||||||||
(Identified Cost $2,705,333,589) |
2,609,277,776 | |||||||
|
|
The accompanying notes are an integral part of the financial statements.
9
Overseas Series
Investment Portfolio - October 31, 2014
SHARES | VALUE | |||||||
(NOTE 2) | ||||||||
SHORT-TERM INVESTMENT - 0.6% |
||||||||
Dreyfus Cash Management, Inc. - Institutional Shares2 , 0.03% |
||||||||
(Identified Cost $ 16,943,766) |
16,943,766 | $ | 16,943,766 | |||||
|
|
|||||||
TOTAL INVESTMENTS - 99.0% |
||||||||
(Identified Cost $ 2,722,277,355) |
2,626,221,542 | |||||||
OTHER ASSETS, LESS LIABILITIES - 1.0% |
26,086,024 | |||||||
|
|
|||||||
NET ASSETS - 100% |
$ | 2,652,307,566 | ||||||
|
|
ADR - American Depositary Receipt
*Non-income producing security.
1 A factor from a third party vendor was applied to determine the securitys fair value following the close of local trading.
2 Rate shown is the current yield as of October 31, 2014.
The Series portfolio holds, as a percentage of net assets, greater than 10% in the following countries: United Kingdom - 22.0%; France - 12.2%.
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard & Poors, a division of The McGraw-Hill Companies, Inc. (S&P), and is licensed for use by Manning & Napier when referencing GICS sectors. Neither MSCI, S&P, nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification, nor shall any such party have any liability therefrom.
The accompanying notes are an integral part of the financial statements.
10
Overseas Series
Statement of Assets & Liabilities
October 31, 2014
ASSETS: |
||||
Investments, at value (identified cost $ 2,722,277,355) (Note 2) |
$ | 2,626,221,542 | ||
Receivable for securities sold |
21,214,989 | |||
Dividends receivable |
3,422,740 | |||
Foreign tax reclaims receivable |
2,622,016 | |||
Receivable for fund shares sold |
818,852 | |||
|
|
|||
TOTAL ASSETS |
2,654,300,139 | |||
|
|
|||
LIABILITIES: |
||||
Accrued management fees (Note 3) |
1,575,879 | |||
Accrued fund accounting and administration fees (Note 3) |
92,893 | |||
Accrued transfer agent fees (Note 3) |
2,656 | |||
Accrued Directors fees (Note 3) |
474 | |||
Accrued Chief Compliance Officer service fees (Note 3) |
407 | |||
Accrued custodian fees |
182,421 | |||
Payable for fund shares repurchased |
51,012 | |||
Other payables and accrued expenses |
86,831 | |||
|
|
|||
TOTAL LIABILITIES |
1,992,573 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 2,652,307,566 | ||
|
|
|||
NET ASSETS CONSIST OF: |
||||
Capital stock |
$ | 1,091,010 | ||
Additional paid-in-capital |
2,526,471,847 | |||
Undistributed net investment income |
34,087,879 | |||
Accumulated net realized gain on investments, foreign currency and translation of other assets and liabilities |
186,936,251 | |||
Net unrealized depreciation on investments, foreign currency and translation of other assets and liabilities |
(96,279,421 | ) | ||
|
|
|||
TOTAL NET ASSETS |
$ | 2,652,307,566 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class A ($2,652,307,566/109,100,989 shares) |
$ | 24.31 | ||
|
|
The accompanying notes are an integral part of the financial statements.
11
Overseas Series
Statement of Operations
For the Year Ended October 31, 2014
INVESTMENT INCOME: |
||||
Dividends (net of foreign taxes withheld, $5,865,416) |
$ | 58,876,658 | ||
|
|
|||
EXPENSES: |
||||
Management fees (Note 3) |
19,512,799 | |||
Fund accounting and administration fees (Note 3) |
338,478 | |||
Transfer agent fees (Note 3) |
9,935 | |||
Directors fees (Note 3) |
6,428 | |||
Chief Compliance Officer service fees (Note 3) |
3,161 | |||
Custodian fees |
547,615 | |||
Miscellaneous |
288,902 | |||
|
|
|||
Total Expenses |
20,707,318 | |||
|
|
|||
NET INVESTMENT INCOME |
38,169,340 | |||
|
|
|||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: |
||||
Net realized gain on- |
||||
Investments (net of foreign capital gains tax, $2,214,386) |
187,467,367 | |||
Foreign currency and translation of other assets and liabilities |
710,648 | |||
|
|
|||
188,178,015 | ||||
|
|
|||
Net change in unrealized appreciation (depreciation) on- |
||||
Investments |
(407,484,754 | ) | ||
Foreign currency and translation of other assets and liabilities |
(478,218 | ) | ||
|
|
|||
(407,962,972 | ) | |||
|
|
|||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY |
(219,784,957 | ) | ||
|
|
|||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (181,615,617 | ) | |
|
|
The accompanying notes are an integral part of the financial statements.
12
Overseas Series
Statements of Changes in Net Assets
FOR THE
YEAR 10/31/14 |
FOR THE
YEAR 10/31/13 |
|||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||
OPERATIONS: |
||||||||
Net investment income |
$ | 38,169,340 | $ | 38,756,582 | ||||
Net realized gain on investments and foreign currency |
188,178,015 | 156,993,045 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency |
(407,962,972 | ) | 305,513,721 | |||||
|
|
|
|
|||||
Net increase (decrease) from operations |
(181,615,617 | ) | 501,263,348 | |||||
|
|
|
|
|||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||
From net investment income |
(36,250,731 | ) | (34,167,815 | ) | ||||
From net realized gain on investments |
(105,998,729 | ) | | |||||
|
|
|
|
|||||
Total distributions to shareholders |
(142,249,460 | ) | (34,167,815 | ) | ||||
|
|
|
|
|||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||
Net increase from capital share transactions (Note 5) |
314,510,810 | 200,567,153 | ||||||
|
|
|
|
|||||
Net increase (decrease) in net assets |
(9,354,267 | ) | 667,662,686 | |||||
NET ASSETS: |
||||||||
Beginning of year |
2,661,661,833 | 1,993,999,147 | ||||||
|
|
|
|
|||||
End of year (including undistributed net investment income of $34,087,879 and $33,673,008, respectively) |
$ | 2,652,307,566 | $ | 2,661,661,833 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
13
Overseas Series
Financial Highlights
FOR THE YEARS ENDED | ||||||||||||||||||||
10/31/14 |
10/31/13 |
10/31/12 |
10/31/11 |
10/31/10 |
||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 27.39 | $ | 22.47 | $ | 22.63 | $ | 24.22 | $ | 21.68 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||
Net investment income1 |
0.36 | 0.41 | 0.36 | 0.75 | 0.32 | |||||||||||||||
Net realized and unrealized gain (loss) on investments |
(1.98 | ) | 4.88 | 0.51 | (2.09 | ) | 2.41 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
(1.62 | ) | 5.29 | 0.87 | (1.34 | ) | 2.73 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.37 | ) | (0.37 | ) | (0.52 | ) | (0.25 | ) | (0.19 | ) | ||||||||||
From net realized gain on investments |
(1.09 | ) | | (0.51 | ) | | 2 | | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(1.46 | ) | (0.37 | ) | (1.03 | ) | (0.25 | ) | (0.19 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 24.31 | $ | 27.39 | $ | 22.47 | $ | 22.63 | $ | 24.22 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 2,652,308 | $ | 2,661,662 | $ | 1,993,999 | $ | 1,336,187 | $ | 918,272 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
(6.13 | %) | 23.87 | % | 4.61 | % | (5.61 | %) | 12.68 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.74 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||||
Net investment income |
1.37 | % | 1.65 | % | 1.68 | % | 3.04 | % | 1.42 | % | ||||||||||
Portfolio turnover |
39 | % | 43 | % | 42 | % | 37 | % | 36 | % | ||||||||||
*The investment advisor did not impose all or a portion of its management and/or other fees, and in some years may have paid a portion of the Series expenses. If these expenses had been incurred by the Series, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
N/A | N/A | 0.00 | %4 | 0.01 | % | 0.01 | % |
1Calculated based on average shares outstanding during the years.
2Less than $0.01 per share.
3Represents aggregate total return for the year indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during certain years.
4Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
14
Overseas Series
Notes to Financial Statements
1. | Organization |
Overseas Series (the Series) is a no-load diversified series of Manning & Napier Fund, Inc. (the Fund). The Fund is organized in Maryland and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The Series investment objective is to provide long-term growth.
The Funds Advisor is Manning & Napier Advisors, LLC (the Advisor). Shares of the Series are offered to investors, clients and employees of the Advisor and its affiliates. The total authorized capital stock of the Fund consists of 15 billion shares of common stock each having a par value of $0.01. As of October 31, 2014, 10.6 billion shares have been designated in total among 42 series, of which 200 million have been designated as Overseas Series Class A common stock.
2. | Significant Accounting Policies |
The following is a summary of significant accounting policies followed by the Series. The Series is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946 - Investment Companies, which is part of accounting principles generally accepted in the United States of America (GAAP).
Security Valuation
Portfolio securities, including domestic equities, foreign equities, warrants and options, listed on an exchange other than the NASDAQ Stock Market are valued at the latest quoted sales price of the exchange on which the security is primarily traded. Securities not traded on valuation date or securities not listed on an exchange are valued at the latest quoted bid price provided by the Funds pricing service. Securities listed on the NASDAQ Stock Market are valued in accordance with the NASDAQ Official Closing Price.
Short-term investments that mature in sixty days or less are valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at their net asset value per share on valuation date.
Volume and level of activity in established markets for an asset or liability are evaluated to determine whether recent transactions and quoted prices are determinative of fair value. Where there have been significant decreases in volume and level of activity, further analysis and adjustment may be necessary to estimate fair value. The Series measures fair value in these instances by the use of inputs and valuation techniques which may be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry and/or expectation of future cash flows. As a result of trading in relatively thin markets and/or markets that experience significant volatility, the prices used by the Series to value these securities may differ from the value that would be realized if these securities were sold, and the differences could be material.
Securities for which representative valuations or prices are not available from the Series pricing service may be valued at fair value as determined in good faith by the Advisor under procedures approved by and under the general supervision and responsibility of the Funds Board of Directors (the Board). Due to the inherent uncertainty of valuations of such securities, the fair value may differ significantly from the values that would have been used had a ready market for such securities existed. If trading or events occurring after the close of the principal market in which securities are traded are expected to materially affect the value of those securities, then they may be valued at their fair value, taking this trading or these events into account. In accordance with the procedures approved by the Board, the values of certain securities trading outside the U.S. were adjusted following the close of local trading using a factor from a third party vendor. The third party vendor uses statistical analyses and quantitative models, which consider among other things subsequent movement and changes in the prices of indices, securities and exchange rates in other markets, to determine the factors which are used to adjust local market prices. The value of securities used for net asset value calculation under these procedures may differ from published prices for the same securities. It is the Funds policy to classify each foreign equity security where a factor from a third party vendor is provided as a Level 2 security.
15
Overseas Series
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Valuation (continued)
Various inputs are used in determining the value of the Series assets or liabilities carried at fair value. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical assets and liabilities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 includes significant unobservable inputs (including the Series own assumptions in determining the fair value of investments). A financial instruments level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuation levels used for major security types as of October 31, 2014 in valuing the Series assets or liabilities carried at fair value:
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Equity securities: |
||||||||||||||||
Consumer Discretionary |
$ | 477,235,694 | $ | 139,747,191 | $ | 337,488,503 | $ | | ||||||||
Consumer Staples |
562,467,407 | 68,864,820 | 493,602,587 | | ||||||||||||
Energy |
338,652,400 | 277,596,878 | 61,055,522 | | ||||||||||||
Financials |
134,521,752 | 25,701,266 | 108,820,486 | | ||||||||||||
Health Care |
328,026,125 | 78,356 | 327,947,769 | | ||||||||||||
Industrials |
286,204,262 | 61,303,339 | 224,900,923 | | ||||||||||||
Information Technology |
121,051,627 | 78,689,937 | 42,361,690 | | ||||||||||||
Materials |
317,221,030 | 80,740,080 | 236,480,950 | | ||||||||||||
Telecommunication Services |
43,897,479 | 43,897,479 | | | ||||||||||||
Mutual Fund |
16,943,766 | 16,943,766 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 2,626,221,542 | $ | 793,563,112 | $ | 1,832,658,430 | $ | | ||||||||
|
|
|
|
|
|
|
|
Please see the Investment Portfolio for foreign securities where a factor from a third party vendor was applied to determine the securitys fair value following the close of local trading. Such securities are included in Level 2 in the table above.
There were no Level 3 securities held by the Series as of October 31, 2013 or October 31, 2014.
The Funds policy is to recognize transfers in and transfers out of the valuation levels as of the beginning of the reporting period. There were no transfers between Level 1 and Level 2 during the year ended October 31, 2014.
Security Transactions, Investment Income and Expenses
Security transactions are accounted for on trade date. Dividend income is recorded on the ex-dividend date, except that if the ex-dividend date has passed, certain dividends from foreign securities are recorded as soon as the Series is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Interest income, including amortization of premium and accretion of discounts using the effective interest method, is earned from settlement date and accrued daily.
Expenses are recorded on an accrual basis. Most expenses of the Fund can be attributed to a specific series. Expenses which cannot be directly attributed are apportioned among the series in the Fund in such a manner as deemed equitable by the Funds Board, taking into consideration, among other things, the nature and type of expense.
The Series uses the identified cost method for determining realized gain or loss on investments for both financial statement and federal income tax reporting purposes.
Foreign Currency Translation
The books and records of the Series are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the current exchange rates. Purchases and sales of investment securities and
16
Overseas Series
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Foreign Currency Translation (continued)
income and expenses are translated on the respective dates of such transactions. The Series does not isolate realized and unrealized gains and losses attributable to changes in the exchange rates from gains and losses that arise from changes in the fair value of investments. Such fluctuations are included with net realized and unrealized gain or loss on investments. Net realized foreign currency gains and losses represent foreign currency gains and losses between trade date and settlement date on securities transactions, gains and losses on disposition of foreign currencies and the difference between the amount of income and foreign withholding taxes recorded on the books of the Series and the amounts actually received or paid.
Federal Taxes
The Series policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. The Series is not subject to federal income tax or excise tax to the extent that the Series distributes to shareholders each year its taxable income, including any net realized gains on investments, in accordance with requirements of the Internal Revenue Code. Accordingly, no provision for federal income tax or excise tax has been made in the financial statements.
Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is more likely than not to be sustained assuming examination by taxing authorities. At October 31, 2014, the Series has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns.
The Series files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions, as required. No income tax returns are currently under investigation. The statute of limitations on the Series tax returns remains open for the years ended October 31, 2011 through October 31, 2014. The Series is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Foreign Taxes
Based on the Series understanding of the tax rules and rates related to income, gains and currency purchase/repatriation transactions for foreign jurisdictions in which it invests, the Series will provide for foreign taxes, and where appropriate, deferred foreign tax.
Distributions of Income and Gains
Distributions to shareholders of net investment income and net realized gains are made annually. An additional distribution may be necessary to avoid taxation of the Series. Distributions are recorded on the ex-dividend date.
Indemnifications
The Funds organizational documents provide former and current directors and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
3. | Transactions with Affiliates |
The Fund has an Investment Advisory Agreement (the Agreement) with the Advisor, for which the Series pays a fee, computed daily and payable monthly, at an annual rate of 0.70% of the Series average daily net assets.
17
Overseas Series
Notes to Financial Statements (continued)
3. | Transactions with Affiliates (continued) |
Under the Agreement, personnel of the Advisor provide the Series with advice and assistance in the choice of investments and the execution of securities transactions, and otherwise maintain the Series organization. The Advisor also provides the Fund with necessary office space and fund administration and support services. The salaries of all officers of the Fund (except a percentage of the Funds Chief Compliance Officers salary, which is paid by the Fund), and of all Directors who are affiliated persons of the Fund, or of the Advisor, and all personnel of the Fund, or of the Advisor, performing services relating to research, statistical and investment activities, are paid by the Advisor. Each non-affiliated Director receives an annual stipend, which is allocated among all the active series of the Fund. In addition, these Directors also receive a fee per Board meeting attended plus a fee for each committee meeting attended and are reimbursed for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings. The Fund also has an Audit Committee Chair, who receives an additional annual stipend for this role.
The Advisor has contractually agreed, until at least February 29, 2016, to waive its management fee and, if necessary, pay other operating expenses of the Series in order to maintain total direct annual fund operating expenses for the Series at no more than 0.75% of average daily net assets each year. For the year ended October 31, 2014, the Advisor did not waive fees or reimburse expenses for the Series. The Advisor is not eligible to recoup any expenses that have been waived or reimbursed in prior years.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate of the Advisor, acts as distributor for the Funds shares. The services of Manning & Napier Investor Services, Inc. are provided at no additional cost to the Series.
The Advisor has agreements with BNY Mellon Investment Servicing (U.S.) Inc. (BNY) under which BNY serves as sub-accountant services agent and sub-transfer agent. The Fund pays the Advisor an annual fee related to fund accounting and administration of 0.0175% on the first $3 billion of average daily net assets (excluding Target Series and Strategic Income Series); 0.015% on the next $3 billion of average daily net assets (excluding Target Series and Strategic Income Series); and 0.01% of the average daily net assets in excess of $6 billion (excluding Target Series and Strategic Income Series); plus a base fee of $25,500 per series. Transfer Agent fees are charged to the Fund on a per account basis. Additionally, certain transaction and cusip-based fees and out-of-pocket expenses, including charges for reporting relating to the Funds compliance program, are charged. Effective October 1, 2012, the aforementioned agreements were modified to reduce the annual fee related to fund accounting and administration, as well as transfer agent fees, by 10%, excluding out-of-pocket expenses, until at least October 1, 2015.
Expenses not directly attributable to a series are allocated based on each series relative net assets or number of accounts, depending on the expense.
4. | Purchases and Sales of Securities |
For the year ended October 31, 2014, purchases and sales of securities, other than U.S. Government securities and short-term securities, were $1,315,144,165 and $1,047,128,308, respectively. There were no purchases or sales of U.S. Government securities.
5. | Capital Stock Transactions |
Transactions in Class A shares of Overseas Series were:
FOR THE YEAR ENDED 10/31/2014 | FOR THE YEAR ENDED 10/31/13 | |||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Sold |
20,258,326 | $ | 535,992,896 | 19,752,519 | $ | 486,212,377 | ||||||||||
Reinvested |
5,259,496 | 133,801,586 | 1,356,900 | 31,303,684 | ||||||||||||
Repurchased |
(13,577,127 | ) | (355,283,672 | ) | (12,672,474 | ) | (316,948,908 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
11,940,695 | $ | 314,510,810 | 8,436,945 | $ | 200,567,153 | ||||||||||
|
|
|
|
|
|
|
|
18
Overseas Series
Notes to Financial Statements (continued)
5. | Capital Stock Transactions (continued) |
At October 31, 2014, the retirement plan of the Advisor and its affiliates owned 215,341 shares of the Series (0.2% of shares outstanding) valued at $5,234,934.
6. | Financial Instruments |
The Series may trade in instruments including written and purchased options, forward foreign currency exchange contracts and futures contracts and other derivatives in the normal course of investing activities to assist in managing exposure to various market risks. The Series may be subject to various elements of risk, which may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. These risks include: the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index; counterparty credit risk related to over the counter derivative counterparties failure to perform under contract terms; liquidity risk related to the lack of a liquid market for these contracts allowing the fund to close out its position(s); and documentation risk relating to disagreement over contract terms. No such investments were held by the Series as of October 31, 2014.
7. | Foreign Securities |
Investing in securities of foreign companies and foreign governments involves special risks and considerations not typically associated with investing in securities of domestic companies and the U.S. Government. These risks include revaluation of currencies and future adverse political and economic developments. Moreover, securities of foreign companies and foreign governments and their markets may be less liquid and their prices more volatile than those of comparable domestic companies and the U.S. Government.
8. | Federal Income Tax Information |
The amount and characterization of certain income and capital gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments in the timing of the recognition of net investment income or gains and losses, including losses deferred due to wash sales and foreign currency gains and losses, passive foreign investment company (PFIC) gains and losses and foreign capital gains taxes paid. The Series may periodically make reclassifications among its capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations, without impacting the Series net asset value. For the fiscal year ended October 31, 2014, amounts were reclassified within the capital accounts to increase Additional Paid in Capital by $1, reduce Undistributed Net Investment Income by $1,503,738 and increase Accumulated Net Realized Gain on Investments by $1,503,737. Any such reclassifications are not reflected in the financial highlights.
The tax character of distributions paid were as follows:
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||
Ordinary income |
$ | 51,695,346 | $ | 34,167,815 | ||||
Long-term capital gains |
90,554,114 | |
At October 31, 2014, the tax basis of components of distributable earnings and the net unrealized depreciation based on the identified cost for federal income tax purposes were as follows:
19
Overseas Series
Report of Independent Registered Public Accounting Firm
To the Board of Directors of Manning & Napier Fund, Inc. and Shareholders of Overseas Series:
In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Overseas Series (a series of Manning & Napier Fund, Inc., hereafter referred to as the Series) at October 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Series management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
New York, New York
December 19, 2014
20
Overseas Series
Supplemental Tax Information
(unaudited)
All reportings are based on financial information available as of the date of this annual report and, accordingly, are subject to change.
For federal income tax purposes, the Series reports for the current fiscal year $63,155,905 or, if different, the maximum amount allowable under the tax law, as qualified dividend income.
The Series has elected to pass through to its shareholders, foreign source income of $64,709,493 and foreign taxes paid of $3,397,108 for the year ended October 31, 2014.
The Series designates $152,944,331 as Long-Term Capital Gain dividends pursuant to Section 852(b) of the Code for the fiscal year ended October 31, 2014.
21
Overseas Series
Directors and Officers Information
(unaudited)
The Statement of Additional Information provides additional information about the Funds directors and officers and can be obtained without charge by calling 1-800-466-3863, at www.manningnapieradvisors.com, or on the EDGAR Database on the SEC Internet web site (http:// www.sec.gov). The following chart shows certain information about the Funds officers and directors, including their principal occupations during the last five years. Unless specific dates are provided, the individuals have held the listed positions for longer than five years.
Interested Director/Officer | ||
Name: | B. Reuben Auspitz* | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 67 | |
Current Position(s) Held with Fund: | Principal Executive Officer, President, Chairman & Director | |
Term of Office1 & Length of Time Served: | Indefinite - Director since 1984; Principal Executive Officer since 2002; | |
President since 2004; Vice President 1984-2003. | ||
Principal Occupation(s) During Past 5 Years: | Executive Vice President since 1993; Chief Compliance Officer since 2004; Vice Chairman since June 2010; Co-Executive Director from 2002-2010 - Manning & Napier Advisors, LLC; President, Director - Manning & Napier Investor Services, Inc. | |
Holds or has held one or more of the following titles for various subsidiaries and affiliates: President, Vice President, Director, Chairman, | ||
Treasurer, Chief Compliance Officer or Member. | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Independent Directors | ||
Name: | Stephen B. Ashley | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 74 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1996 | |
Principal Occupation(s) During Past 5 Years: | Chairman, Director, President & Chief Executive Officer, The Ashley Group (property management and investment). Director 1995-2008 and Chairman (non-executive) 2004-2008 - Fannie Mae (mortgage) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Fannie Mae (1995-2008) | |
The Ashley Group (1995-2008) | ||
Genesee Corporation (1987-2007) |
Name: | Paul A. Brooke | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 68 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 2007 | |
Principal Occupation(s) During Past 5 Years: | Chairman & CEO (2005-2009) - Alsius Corporation (investments); | |
Managing Member, PMSV Holdings LLC (investments) since 1991; | ||
Managing Member, Venbio (investments) since 2010. | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Incyte Corp. (2000-present) | |
ViroPharma, Inc. (2000-present) | ||
HLTH Corp (WebMD) (2000-2010) | ||
Cheyne Capital International (2000-present) | ||
MPM Bio-equities (2000-2009) | ||
GMP Companies (2000-present) | ||
HoustonPharma (2000-2009) | ||
Cytos Biotechnology Ltd. (2012-present) |
22
Overseas Series
Directors and Officers Information
(unaudited)
Independent Directors (continued) | ||
Name: | Peter L. Faber | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 76 | |
Current Position(s) Held with Fund: | Director, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1987 | |
Principal Occupation(s) During Past 5 Years: | Senior Counsel (2006-2012), Partner (1995-2006 & 2013-present) - McDermott, Will & Emery LLP (law firm) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Partnership for New York City, Inc. (non-profit) (1989-2010) | |
New York Collegium (non-profit) (2004-2011) | ||
Boston Early Music Festival (non-profit) |
Name: | Harris H. Rusitzky | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 79 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1985 | |
Principal Occupation(s) During Past 5 Years: | President, The Greening Group (business consultants) since 1994; | |
Partner, The Restaurant Group (restaurants) since 2006 | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Name: | Chester N. Watson | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 64 | |
Current Position(s) Held with Fund: | Director, Audit Committee Chairman, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 2012 | |
Principal Occupation(s) During Past 5 Years: | General Auditor (2003-2011) - General Motors Company (auto manufacturer) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Officers |
Name: | Jeffrey S. Coons, Ph.D., CFA | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 51 | |
Current Position(s) Held with Fund: | Vice President | |
Term of Office1 & Length of Time Served: | Since 2004 | |
Principal Occupation(s) During Past 5 Years: | President since 2010, Co-Director of Research since 2002 - Manning & Napier Advisors, LLC | |
Holds one or more of the following titles for various subsidiaries and affiliates: President, Director, Treasurer or Senior Trust Officer. | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Name: | Elizabeth Craig | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 27 | |
Current Position(s) Held with Fund: | Assistant Corporate Secretary | |
Term of Office1 & Length of Time Served: | Since 2011 | |
Principal Occupation(s) During Past 5 Years: | Mutual Fund Compliance Specialist since 2009 - Manning & Napier Advisors, LLC | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
23
Overseas Series
Directors and Officers Information
(unaudited)
Officers (continued) | ||
Name: | Christine Glavin | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 48 | |
Current Position(s) Held with Fund: | Principal Financial Officer, Chief Financial Officer | |
Term of Office1 & Length of Time Served: | Principal Financial Officer since 2002; Chief Financial Officer since 2001 | |
Principal Occupation(s) During Past 5 Years: | Director of Fund Reporting since 2011; Fund Reporting Manager | |
(1997-2011) - Manning & Napier Advisors, LLC; Assistant Treasurer since 2008 - Exeter Trust Company | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Name: | Jodi L. Hedberg | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 46 | |
Current Position(s) Held with Fund: | Corporate Secretary, Chief Compliance Officer, Anti-Money Laundering Compliance Officer | |
Term of Office1 & Length of Time Served: | Corporate Secretary since 1997; Chief Compliance Officer since 2004; | |
Anti-Money Laundering Compliance Officer | ||
Principal Occupation(s) During Past 5 Years: | Director of Compliance, Manning & Napier Advisors, LLC and affiliates since 1990 (title change in 2005 from Compliance Manager to Director of Compliance); Corporate Secretary, Manning & Napier Investor Services, Inc. since 2006 | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Name: | Richard Yates | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 49 | |
Current Position(s) Held with Fund: | Chief Legal Officer | |
Term of Office1 & Length of Time Served: | Chief Legal Officer since 2004 | |
Principal Occupation(s) During Past 5 Years: | Counsel - Manning & Napier Advisors, LLC and affiliates since 2000; | |
Holds one or more of the following titles for various affiliates; Director or Corporate Secretary | ||
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
* Interested Director, within the meaning of the Investment Company Act of 1940 by reason of his position with the Funds investment advisor and distributor. Mr. Auspitz serves as the Executive Vice President and Director, Manning & Napier Advisors, LLC and President and Director, Manning & Napier Investor Services, Inc., the Funds distributor.
1 The term of office of all officers shall be one year and until their respective successors are chosen and qualified, or his or her earlier resignation or removal as provided in the Funds By-Laws.
24
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25
Overseas Series
Literature Requests
(unaudited)
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the Securities and Exchange | ||||
Commissions (SEC) web site | http://www.sec.gov |
Proxy Voting Record
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
Quarterly Portfolio Holdings
The Series complete schedule of portfolio holdings for the 1st and 3rd quarters of each fiscal year are provided on Form N-Q, and are available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
The Series Form N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Prospectus and Statement of Additional Information (SAI)
For more information about any of the Manning & Napier Fund, Inc. Series, you may obtain a prospectus and SAI at www.manning-napier.com or by calling (800) 466-3863. Before investing, carefully consider the objectives, risks, charges and expenses of the investment and read the prospectus carefully as it contains this and other information about the investment company. In addition, this information can be found on the SECs web site, http://www.sec.gov.
Additional information available at www.manning-napier.com
1. Fund Holdings - Month-End
2. Fund Holdings - Quarter-End
3. Shareholder Report - Annual
4. Shareholder Report - Semi-Annual
The Fund also offers electronic notification or e-delivery when certain documents are available on-line to be downloaded or reviewed. Direct shareholders can elect to receive electronic notification when shareholder reports, prospectus updates, and/or statements are available. If you do not currently have on-line access to your account, you can establish access by going to www.manning-napier.com, click on Login in the top corner of the page, and follow the prompts to self-enroll. Once enrolled, you can set your electronic notification preferences by clicking on the Account Options tab located within the green toolbar and then select E-Delivery Option. Should you have any questions on either how to establish on-line access or how to update your account settings, please contact Investor Services at 1-800-466-3863.
The Manning & Napier Fund, Inc. is managed by Manning & Napier Advisors, LLC. Manning & Napier Investor Services, Inc., an affiliate of Manning & Napier Advisors, LLC, is the distributor of the Fund shares.
MNOVS-10/14-AR
Management Discussion and Analysis
(unaudited)
Dear Shareholders:
The global economy remained on a slow growth path during the past year. Developed economies continued to support economic growth through accommodative monetary policy, and as the year progressed, central banks in areas such as Europe and Japan loosened policy further to combat persistent growth headwinds. Meanwhile, the U.S. economy slowed as it meandered through a very harsh winter, but recovered quickly during the spring and summer months of 2014. The Federal Reserve completed its third quantitative easing program, and market expectations for subsequent adjustment to domestic monetary policy during 2015 helped fuel a meaningful increase in the value of the dollar relative to other global currencies during the period. With the U.S. economy making positive strides, its equity markets generally performed strongly as well. Global markets were broadly weaker, although pockets of strength existed in certain emerging market countries where encouraging political developments and reform momentum helped lift investor sentiment. Looking ahead, we expect the slow global growth environment to remain in place for the foreseeable future.
As always, we appreciate your business.
Sincerely,
Manning & Napier Advisors, LLC
1
Fund Commentary
(unaudited)
Investment Objective
The Pro-Blend® Series are strategically allocated across stocks, bonds, and cash to balance growth, capital preservation, and income depending upon an investors overall level of risk tolerance.
Performance Commentary
U.S. equity markets generally delivered positive absolute returns for the twelve-month period ended October 31, 2014. The S&P 500 Total Return Index gained 17.25%. In contrast, global equity market performance was weaker. The broad MSCI ACWI ex USA Index (ACWIxUS) was largely flat, returning 0.06%. Meanwhile, bond markets as represented by the Barclays U.S. Aggregate Bond Index were positive, returning 4.14%. Each share class of the Pro-Blend® Series that is, the Maximum Term, Extended Term, Moderate Term, and Conservative Term underperformed its blended benchmark during the one year period. The only exception to this was the Pro-Blend® Conservative Term Series Class I, which modestly outperformed its blended benchmark. Despite the near-term relative underperformance, each of the Pro-Blend® Series has continued to provide positive absolute returns and outperform their respective benchmarks over the current U.S. stock market cycle. The cycle includes a prolonged bear market from April 2000 to February 2009, a recovery, and the current bull market. Since the cycle began, each Series has outperformed its respective blended benchmark with the exception of the Pro-Blend® Conservative Term Series Class C, which modestly underperformed.
Among key drivers of each Series underperformance relative to their blended benchmarks during the one year period were overall fixed income selection and equity sector positioning. Additionally, stock selection in Health Care and Consumer Staples challenged relative returns, as did the Series overweight allocations to Energy and Consumer Discretionary sectors relative to their benchmarks.
Overall asset allocation positively contributed to relative returns, as each of the Series were more heavily allocated to stocks than their benchmarks were during a year in which stocks generally outperformed bonds. This offset a portion of the Series relative underperformance. Stock selection in Information Technology and Materials sectors also aided relative returns. Relative to their benchmarks, the Series overweight to Information Technology was a notable positive contributor to relative performance as well.
Regarding current portfolio positioning, in the equity portion of each Series we are focused on finding companies with growth drivers that are not tied to the broad economy. We believe the key to generating attractive returns in the prevailing environment is the ability to identify individual businesses that can innovate and disrupt the competitive environment in which they operate. This involves finding businesses that are generating growth by creating new markets, expanding existing markets, or simply by taking share from their rivals.
In fixed income markets, we continue to believe that a more defensive fixed income posture is warranted, which is how we would characterize our current fixed income positioning. Specifically, given current yield levels and the potential for rising interest rates, we are finding a better risk/reward trade-off in shorter-term bonds. Businesses should benefit as economic conditions continue to improve, enhancing the attractiveness of the corporate sector. This sector has been a primary focus area in the Series over the past few years, and we believe it will remain an attractive area going forward.
As conditions in some of the worlds most important economic regions appear to be at different stages in the economic cycle, we believe investors should expect the monetary policies of major central banks which have remained highly accommodative across the board in the developed world for a period of years to diverge at some point in the future. This could lead to new bouts of volatility in financial markets. Given the lack of extremes in the market today, we would view the resurgence of volatility as a buying opportunity, but being selective is critical. Broadly speaking, valuations in the developed world are neutral at best, whereas valuations in select emerging markets are relatively more attractive. Shareholders should expect us to pursue areas of global markets where we see a compelling combination of attractive business fundamentals and long-term appreciation potential. As has been the case for more than 40 years, Manning & Napier remains committed to helping investors achieve their financial goals through an active, flexible approach to investment management.
2
Fund Commentary
(unaudited)
Performance Commentary (continued)
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than that quoted; investors can obtain the most recent month-end performance at www.manning-napier.com or by calling (800) 466-3863.
All investments involve risks, including possible loss of principal. As with any stock fund, the value of your investment will fluctuate in response to stock market movements. Investing in the Series will also involve a number of other risks, including issuer-specific risk, foreign investment risk, and mid-cap risk. In addition, because the Advisor manages the Series with a quantitative approach, the Series is subject to the additional risk that the investment approach may not be successful. Further, the Advisor does not intend to make frequent changes to the Series portfolio in response to market movements.
3
Performance Update - Pro-Blend® Conservative Term Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 | ||||||||
ONE YEAR1 | FIVE YEAR | TEN YEAR | SINCE INCEPTION2 | |||||
Manning & Napier Fund, Inc. - Pro-Blend® Conservative Term |
||||||||
Series - Class S3 |
5.46% | 6.90% | 5.95% | 6.16% | ||||
Manning & Napier Fund, Inc. - Pro-Blend® Conservative Term |
||||||||
Series - Class I3,4 |
5.66% | 7.11% | 6.08% | 6.23% | ||||
Manning & Napier Fund, Inc. - Pro-Blend® Conservative Term |
||||||||
Series - Class C3,5 |
4.58% | 6.05% | 5.15% | 5.38% | ||||
Manning & Napier Fund, Inc. - Pro-Blend® Conservative Term |
||||||||
Series - Class R3,5 |
5.08% | 6.61% | 5.69% | 5.92% | ||||
Barclays U.S Intermediate Aggregate Bond Index6 |
2.90% | 3.62% | 4.31% | 5.43% | ||||
Conservative Term Composite Benchmark7 |
5.52% | 6.69% | 5.70% | 6.42% |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Pro-Blend® Conservative Term Series - Class S for the ten years ended October 31, 2014 to the Barclays U.S. Intermediate Aggregate Bond Index and Conservative Term Composite Benchmark.
1 The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2 Performance numbers for the Series and Indices are calculated from November 1, 1995, the Class S inception date.
3 The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 0.87% for Class S, 0.67% for Class I, 1.67% for Class C and 1.17% for Class R. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 0.87% for Class S, 0.67% for Class I, 1.67% for Class C and 1.17% for Class R for the year ended October 31, 2014.
4 For the periods through the inception of Class I on March 28, 2008, performance is based on the hypothetical performance of Class S shares. Because Class I shares invest in the same portfolio of securities as Class S, performance will only be different to the extent that the Class S shares have a higher expense ratio.
5 For periods through the inception of Class C on January 4, 2010 and Class R on June 30, 2010, the performance figures are hypothetical and reflect the performance of the Manning & Napier Fund, Inc.
- Pro-Blend® Conservative Term Series - Class S adjusted for expense differences.
4
Performance Update - Pro-Blend® Conservative Term Series
(unaudited)
6The Barclays U.S Intermediate Aggregate Bond Index is an unmanaged, market-value weighted index of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities greater than one year but less than ten years. Index returns do not reflect any fees or expenses. Index returns provided by Interactive Data.
7The Conservative Term Composite Benchmark is a blend of the Russell 3000® Index (Russell 3000), MSCI ACWI ex USA Index (ACWIxUS), and Barclays U.S. Intermediate Aggregate Bond Index (BIAB) in the following weightings: 15% Russell 3000, 5% ACWIxUS, and 80% BIAB through 05/31/2012; and 22% Russell 3000, 8% ACWIxUS, and 70% BIAB beginning 06/01/2012. Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns assume daily investment of gross dividends (which do not account for applicable dividend taxation) prior to 12/31/1998, as net returns were not available. Subsequent to 12/31/ 1998, the Index returns are net of withholding taxes. They assume daily reinvestment of net dividends, thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BIAB is an unmanaged, market value-weighted index of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of greater than one year but less than ten years. Index returns provided by Interactive Data. The returns of the indices do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the Series asset allocation will vary over time, the composition of the Series portfolio may not match the composition of the Conservative Term Composite Benchmark.
5
Shareholder Expense Example - Pro-Blend® Conservative Term Series
(unaudited)
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/14* |
ANNUALIZED EXPENSE RATIO | |||||
Class S |
||||||||
Actual |
$1,000.00 | $1,012.20 | $4.41 | 0.87% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,020.82 | $4.43 | 0.87% | ||||
Class I |
||||||||
Actual |
$1,000.00 | $1,013.80 | $3.40 | 0.67% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,021.83 | $3.41 | 0.67% | ||||
Class C |
||||||||
Actual |
$1,000.00 | $1,008.40 | $8.45 | 1.67% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,016.79 | $8.49 | 1.67% | ||||
Class R |
||||||||
Actual |
$1,000.00 | $1,010.50 | $5.93 | 1.17% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,019.31 | $5.96 | 1.17% |
*Expenses are equal to the Class annualized expense ratio (for the six-month period), multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period. Expenses are based on the most recent fiscal half year; therefore, the expense ratios stated above may differ from the expense ratios stated in the financial highlights, which are based on one-year data.
6
Portfolio Composition - Pro-Blend® Conservative Term Series
As of October 31, 2014 (unaudited)
7
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||
COMMON STOCKS - 34.0% |
||||||||
Consumer Discretionary - 7.0% |
||||||||
Auto Components - 0.0%## |
||||||||
Halla Holdings Corp. (South Korea)1 |
1,071 | $ | 70,819 | |||||
Mando Corp. (South Korea)*1 |
1,169 | 220,405 | ||||||
|
|
|||||||
291,224 | ||||||||
|
|
|||||||
Automobiles - 0.1% |
||||||||
Hyundai Motor Co. (South Korea)1 |
1,520 | 241,196 | ||||||
Toyota Motor Corp. - ADR (Japan) |
12,690 | 1,539,931 | ||||||
|
|
|||||||
1,781,127 | ||||||||
|
|
|||||||
Diversified Consumer Services - 0.2% |
||||||||
Apollo Education Group, Inc.* |
124,520 | 3,568,743 | ||||||
Kroton Educacional S.A. (Brazil) |
82,080 | 584,984 | ||||||
|
|
|||||||
4,153,727 | ||||||||
|
|
|||||||
Hotels, Restaurants & Leisure - 0.6% |
||||||||
Accor S.A. (France)1 |
9,220 | 387,353 | ||||||
Arcos Dorados Holdings, Inc. - Class A (Argentina) |
16,800 | 103,488 | ||||||
Hyatt Hotels Corp. - Class A* |
7,340 | 434,675 | ||||||
McDonalds Corp. |
29,860 | 2,798,778 | ||||||
SeaWorld Entertainment, Inc. |
65,190 | 1,254,256 | ||||||
Whistler Blackcomb Holdings, Inc. (Canada) |
40,380 | 681,808 | ||||||
Yum! Brands, Inc. |
57,330 | 4,118,014 | ||||||
|
|
|||||||
9,778,372 | ||||||||
|
|
|||||||
Household Durables - 0.5% |
||||||||
DR Horton, Inc. |
97,603 | 2,224,372 | ||||||
Lennar Corp. - Class A |
61,880 | 2,665,790 | ||||||
LG Electronics, Inc. (South Korea)1 |
2,240 | 136,800 | ||||||
Toll Brothers, Inc.* |
67,260 | 2,148,957 | ||||||
TRI Pointe Homes, Inc.* |
16,590 | 227,117 | ||||||
WCI Communities, Inc.* |
5,960 | 111,810 | ||||||
|
|
|||||||
7,514,846 | ||||||||
|
|
|||||||
Internet & Catalog Retail - 0.8% |
||||||||
Amazon.com, Inc.* |
15,800 | 4,826,268 | ||||||
The Priceline Group, Inc.* |
4,630 | 5,584,752 | ||||||
TripAdvisor, Inc.* |
35,180 | 3,119,059 | ||||||
|
|
|||||||
13,530,079 | ||||||||
|
|
|||||||
Leisure Products - 0.1% |
||||||||
Mattel, Inc. |
28,190 | 875,863 | ||||||
|
|
|||||||
Media - 4.2% |
||||||||
AMC Networks, Inc. - Class A* |
160,470 | 9,732,505 | ||||||
Gannett Co., Inc. |
220,670 | 6,951,105 | ||||||
Global Mediacom Tbk PT (Indonesia)1 |
1,443,950 | 234,354 | ||||||
Lamar Advertising Co. - Class A |
31,850 | 1,645,053 | ||||||
Liberty Global plc - Class A - ADR (United Kingdom)* |
69,570 | 3,163,348 | ||||||
Liberty Global plc - Class C - ADR (United Kingdom)* |
70,210 | 3,122,239 | ||||||
Nexstar Broadcasting Group, Inc. - Class A |
53,850 | 2,429,712 | ||||||
Sinclair Broadcast Group, Inc. - Class A |
179,940 | 5,227,257 | ||||||
Starz - Class A* |
173,240 | 5,353,116 | ||||||
Time Warner, Inc. |
48,740 | 3,873,368 | ||||||
Tribune Media Co. - Class A* |
51,660 | 3,461,220 | ||||||
Twenty-First Century Fox, Inc. - Class A |
459,090 | 15,829,423 | ||||||
Viacom, Inc. - Class B |
131,800 | 9,579,224 | ||||||
|
|
|||||||
70,601,924 | ||||||||
|
|
|||||||
Specialty Retail - 0.2% |
||||||||
Belle International Holdings Ltd. (Hong Kong)1 |
226,890 | 288,723 | ||||||
China ZhengTong Auto Services Holdings Ltd. (China)1 |
417,000 | 236,231 | ||||||
Groupe Fnac S.A. (France)*1 |
69 | 2,921 | ||||||
The Home Depot, Inc. |
22,610 | 2,204,927 | ||||||
Sa Sa International Holdings Ltd. (Hong Kong)1 |
169,510 | 117,193 | ||||||
Staples, Inc. |
101,100 | 1,281,948 | ||||||
|
|
|||||||
4,131,943 | ||||||||
|
|
|||||||
Textiles, Apparel & Luxury Goods - 0.3% |
||||||||
lululemon athletica, Inc.* |
131,150 | 5,462,397 | ||||||
|
|
|||||||
Total Consumer Discretionary |
118,121,502 | |||||||
|
|
|||||||
Consumer Staples - 4.1% |
||||||||
Beverages - 1.7% |
||||||||
AMBEV S.A. - ADR (Brazil)* |
595,340 | 3,976,871 | ||||||
Anheuser-Busch InBev N.V. (Belgium)1 |
67,740 | 7,511,978 | ||||||
Cia Cervecerias Unidas S.A. - ADR (Chile) |
14,180 | 302,176 | ||||||
The Coca-Cola Co. |
81,060 | 3,394,793 | ||||||
Diageo plc (United Kingdom)1 |
223,170 | 6,581,788 | ||||||
Diageo plc - ADR (United Kingdom) |
8,320 | 981,510 | ||||||
Dr. Pepper Snapple Group, Inc. |
11,920 | 825,460 | ||||||
Molson Coors Brewing Co. - Class B |
19,900 | 1,480,162 | ||||||
PepsiCo, Inc. |
33,370 | 3,209,193 | ||||||
SABMiller plc (United Kingdom)1 |
1,420 | 80,319 | ||||||
|
|
|||||||
28,344,250 | ||||||||
|
|
|||||||
Food & Staples Retailing - 0.4% |
||||||||
Raia Drogasil S.A. (Brazil) |
21,400 | 194,231 | ||||||
Tesco plc (United Kingdom)1 |
800,850 | 2,223,142 | ||||||
Wal-Mart Stores, Inc. |
52,980 | 4,040,785 | ||||||
|
|
|||||||
6,458,158 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
8
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||
COMMON STOCKS (continued) |
||||||||
Consumer Staples (continued) |
||||||||
Food Products - 0.9% |
||||||||
Charoen Pokphand Foods PCL (Thailand)1 |
323,510 | $ | 310,522 | |||||
ConAgra Foods, Inc. |
35,960 | 1,235,226 | ||||||
Ingredion, Inc. |
2,130 | 164,543 | ||||||
M Dias Branco S.A. (Brazil) |
4,860 | 188,995 | ||||||
Nestle S.A. (Switzerland)1 |
88,530 | 6,492,271 | ||||||
Tiger Brands Ltd. (South Africa)1 |
8,560 | 257,646 | ||||||
Unilever plc - ADR (United Kingdom) |
155,110 | 6,240,075 | ||||||
|
|
|||||||
14,889,278 | ||||||||
|
|
|||||||
Household Products - 0.5% |
||||||||
Colgate-Palmolive Co. |
13,810 | 923,613 | ||||||
Energizer Holdings, Inc. |
30,570 | 3,749,411 | ||||||
Kimberly-Clark Corp. |
6,430 | 734,756 | ||||||
The Procter & Gamble Co. |
36,290 | 3,167,028 | ||||||
|
|
|||||||
8,574,808 | ||||||||
|
|
|||||||
Personal Products - 0.0%## |
||||||||
Natura Cosmeticos S.A. (Brazil) |
13,540 | 196,715 | ||||||
|
|
|||||||
Tobacco - 0.6% |
||||||||
Imperial Tobacco Group plc (United Kingdom)1 |
122,230 | 5,309,874 | ||||||
Philip Morris International, Inc. |
56,170 | 4,999,692 | ||||||
|
|
|||||||
10,309,566 | ||||||||
|
|
|||||||
Total Consumer Staples |
68,772,775 | |||||||
|
|
|||||||
Energy - 4.3% |
||||||||
Energy Equipment & Services - 1.7% |
||||||||
Baker Hughes, Inc. |
138,940 | 7,358,262 | ||||||
Cameron International Corp.* |
121,800 | 7,253,190 | ||||||
Core Laboratories N.V. - ADR |
840 | 117,205 | ||||||
Oceaneering International, Inc. |
1,180 | 82,919 | ||||||
Schlumberger Ltd. |
75,470 | 7,445,870 | ||||||
SPT Energy Group, Inc. (China)1 |
307,000 | 96,719 | ||||||
Weatherford International plc - ADR* |
352,530 | 5,788,543 | ||||||
|
|
|||||||
28,142,708 | ||||||||
|
|
|||||||
Oil, Gas & Consumable Fuels - 2.6% |
||||||||
Apache Corp. |
23,520 | 1,815,744 | ||||||
BP plc - ADR (United Kingdom) |
14,830 | 644,512 | ||||||
Chevron Corp. |
15,390 | 1,846,031 | ||||||
Cloud Peak Energy, Inc.* |
8,890 | 106,413 | ||||||
CNOOC Ltd. - ADR (China) |
4,350 | 680,209 | ||||||
ConocoPhillips |
40,340 | 2,910,531 | ||||||
Cosan S.A. Industria e Comercio (Brazil) |
7,630 | 106,510 | ||||||
Encana Corp. (Canada) |
3,570 | 66,509 | ||||||
EOG Resources, Inc. |
17,520 | 1,665,276 | ||||||
Exxon Mobil Corp. |
53,380 | 5,162,380 | ||||||
Hess Corp. |
149,950 | 12,717,259 | ||||||
Koninklijke Vopak N.V. (Netherlands)1 |
2,920 | 146,436 | ||||||
Occidental Petroleum Corp. |
10,330 | 918,647 | ||||||
Pacific Rubiales Energy Corp. (Colombia) |
22,090 | 333,197 | ||||||
Peabody Energy Corp. |
535,250 | 5,582,657 | ||||||
Petroleo Brasileiro S.A. - ADR (Brazil) |
16,250 | 198,737 | ||||||
Range Resources Corp. |
41,540 | 2,841,336 | ||||||
Royal Dutch Shell plc - Class A - ADR (Netherlands) |
34,470 | 2,474,601 | ||||||
Statoil ASA - ADR (Norway) |
40,660 | 933,147 | ||||||
Talisman Energy, Inc. (Canada) |
229,540 | 1,464,347 | ||||||
Total S.A. (France)1 |
12,940 | 772,560 | ||||||
|
|
|||||||
43,387,039 | ||||||||
|
|
|||||||
Total Energy |
71,529,747 | |||||||
|
|
|||||||
Financials - 4.1% |
||||||||
Banks - 1.1% |
||||||||
BankUnited, Inc. |
21,450 | 641,355 | ||||||
Citigroup, Inc. |
62,640 | 3,353,119 | ||||||
Hong Leong Financial Group Berhad (Malaysia)1 |
46,530 | 256,029 | ||||||
HSBC Holdings plc (United Kingdom)1 |
768,490 | 7,835,000 | ||||||
ICICI Bank Ltd. - ADR (India) |
3,500 | 197,260 | ||||||
JPMorgan Chase & Co. |
15,590 | 942,883 | ||||||
Popular, Inc.* |
107,520 | 3,427,738 | ||||||
U.S. Bancorp. |
20,630 | 878,838 | ||||||
Wells Fargo & Co. |
29,190 | 1,549,697 | ||||||
|
|
|||||||
19,081,919 | ||||||||
|
|
|||||||
Capital Markets - 0.1% |
||||||||
American Capital Ltd.* |
26,280 | 389,732 | ||||||
Apollo Investment Corp. |
45,510 | 375,457 | ||||||
Ares Capital Corp. |
22,430 | 358,656 | ||||||
BlackRock Kelso Capital Corp. |
43,320 | 382,082 | ||||||
MCG Capital Corp. |
112,740 | 403,609 | ||||||
PennantPark Investment Corp. |
35,260 | 383,629 | ||||||
|
|
|||||||
2,293,165 | ||||||||
|
|
|||||||
Diversified Financial Services - 0.0%## |
||||||||
Berkshire Hathaway, Inc. - Class B* |
620 | 86,899 | ||||||
JSE Ltd. (South Africa)1 |
40,430 | 393,679 | ||||||
|
|
|||||||
480,578 | ||||||||
|
|
|||||||
Insurance - 0.3% |
||||||||
Admiral Group plc (United Kingdom)1 |
102,600 | 2,195,338 | ||||||
Brasil Insurance Participacoes e Administracao S.A. (Brazil) |
42,220 | 126,938 | ||||||
Principal Financial Group, Inc. |
21,440 | 1,122,813 |
The accompanying notes are an integral part of the financial statements.
9
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||
COMMON STOCKS (continued) |
||||||||
Financials (continued) |
||||||||
Insurance (continued) |
||||||||
The Progressive Corp. |
31,060 | $ | 820,295 | |||||
|
|
|||||||
4,265,384 | ||||||||
|
|
|||||||
Real Estate Investment Trusts (REITS) - 2.3% |
||||||||
Agree Realty Corp. |
15,160 | 464,048 | ||||||
Alexandria Real Estate Equities, Inc. |
5,550 | 460,650 | ||||||
American Campus Communities, Inc. |
15,190 | 596,511 | ||||||
Apartment Investment & Management Co. - Class A |
12,440 | 445,228 | ||||||
Associated Estates Realty Corp. |
22,550 | 440,401 | ||||||
AvalonBay Communities, Inc. |
2,490 | 388,042 | ||||||
BioMed Realty Trust, Inc. |
57,370 | 1,246,076 | ||||||
Boston Properties, Inc. |
2,390 | 302,933 | ||||||
Camden Property Trust |
4,920 | 377,216 | ||||||
CatchMark Timber Trust, Inc. - Class A |
58,200 | 680,940 | ||||||
CBS Outdoor Americas, Inc. |
48,100 | 1,463,683 | ||||||
Chesapeake Lodging Trust |
15,870 | 524,345 | ||||||
CoreSite Realty Corp. |
11,330 | 419,437 | ||||||
Corporate Office Properties Trust |
38,000 | 1,038,920 | ||||||
Crown Castle International Corp. |
3,100 | 242,172 | ||||||
CubeSmart |
13,210 | 278,071 | ||||||
DDR Corp. |
21,250 | 385,475 | ||||||
Digital Realty Trust, Inc. |
24,980 | 1,723,370 | ||||||
Duke Realty Corp. |
20,830 | 394,937 | ||||||
DuPont Fabros Technology, Inc. |
13,210 | 409,114 | ||||||
Education Realty Trust, Inc. |
34,270 | 385,880 | ||||||
Equity Lifestyle Properties, Inc. |
5,630 | 276,433 | ||||||
Equity One, Inc. |
10,900 | 261,600 | ||||||
Equity Residential |
5,960 | 414,578 | ||||||
Essex Property Trust, Inc. |
2,090 | 421,678 | ||||||
Excel Trust, Inc. |
19,340 | 251,420 | ||||||
Extra Space Storage, Inc. |
4,140 | 240,782 | ||||||
Fibra Shop Portafolios Inmobiliarios SAPI de CV (Mexico) |
135,400 | 183,902 | ||||||
General Growth Properties, Inc. |
15,580 | 403,678 | ||||||
HCP, Inc. |
14,610 | 642,402 | ||||||
Health Care REIT, Inc. |
7,270 | 516,970 | ||||||
Healthcare Trust of America, Inc. |
22,120 | 284,021 | ||||||
Home Properties, Inc. |
4,130 | 265,600 | ||||||
Host Hotels & Resorts, Inc. |
22,000 | 512,820 | ||||||
Inland Real Estate Corp. |
24,660 | 261,643 | ||||||
Kimco Realty Corp. |
27,560 | 687,622 | ||||||
Kite Realty Group Trust |
19,757 | 511,509 | ||||||
Mack-Cali Realty Corp. |
34,890 | 653,490 | ||||||
Mid-America Apartment Communities, Inc. |
6,210 | 438,799 | ||||||
Pebblebrook Hotel Trust |
13,490 | 574,674 | ||||||
Pennsylvania Real Estate Investment Trust |
12,480 | 267,446 | ||||||
Physicians Realty Trust |
54,950 | 842,933 | ||||||
Plum Creek Timber Co., Inc. |
69,950 | 2,868,649 | ||||||
Potlatch Corp. |
1,760 | 77,422 | ||||||
Public Storage |
2,720 | 501,405 | ||||||
Rayonier, Inc. |
1,730 | 57,903 | ||||||
Rouse Properties, Inc. |
27,530 | 501,321 | ||||||
Saul Centers, Inc. |
2,580 | 141,771 | ||||||
Scentre Group (Australia)*1 |
59,441 | 189,614 | ||||||
Simon Property Group, Inc. |
8,050 | 1,442,641 | ||||||
Sovran Self Storage, Inc. |
6,380 | 542,874 | ||||||
UDR, Inc. |
13,400 | 405,082 | ||||||
Ventas, Inc. |
7,030 | 481,625 | ||||||
Washington Prime Group, Inc. |
20,465 | 360,798 | ||||||
Washington Real Estate Investment Trust |
9,260 | 261,688 | ||||||
Westfield Corp. (Australia)1 |
99,610 | 699,962 | ||||||
Weyerhaeuser Co. |
240,680 | 8,149,425 | ||||||
|
|
|||||||
38,263,629 | ||||||||
|
|
|||||||
Real Estate Management & Development - 0.3% |
||||||||
BR Malls Participacoes S.A. (Brazil) |
15,400 | 123,677 | ||||||
Forest City Enterprises, Inc. - Class A* |
18,200 | 380,198 | ||||||
Forestar Group, Inc.* |
6,730 | 117,439 | ||||||
General Shopping Brasil S.A. (Brazil)* |
85,740 | 233,563 | ||||||
Realogy Holdings Corp.* |
103,190 | 4,231,822 | ||||||
|
|
|||||||
5,086,699 | ||||||||
|
|
|||||||
Total Financials |
69,471,374 | |||||||
|
|
|||||||
Health Care - 4.1% |
||||||||
Biotechnology - 0.0%## |
||||||||
Green Cross Corp. (South Korea)1 |
4,640 | 593,825 | ||||||
|
|
|||||||
Health Care Equipment & Supplies - 0.1% |
||||||||
Baxter International, Inc. |
9,160 | 642,482 | ||||||
Neogen Corp.* |
3,720 | 163,308 | ||||||
Shandong Weigao Group Medical Polymer Co. Ltd. - Class H (China)1 |
571,800 | 578,224 | ||||||
|
|
|||||||
1,384,014 | ||||||||
|
|
|||||||
Health Care Providers & Services - 0.9% |
||||||||
Catamaran Corp.* |
154,400 | 7,360,248 | ||||||
Express Scripts Holding Co.* |
90,040 | 6,916,873 | ||||||
KPJ Healthcare Berhad (Malaysia)1 |
113,440 | 134,859 | ||||||
Life Healthcare Group Holdings Ltd. (South Africa)1 |
91,730 | 346,886 | ||||||
|
|
|||||||
14,758,866 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
10
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||
COMMON STOCKS (continued) |
||||||||
Health Care (continued) |
||||||||
Health Care Technology - 1.0% |
||||||||
Cerner Corp.* |
258,860 | $ | 16,396,192 | |||||
|
|
|||||||
Pharmaceuticals - 2.1% |
||||||||
AbbVie, Inc. |
19,720 | 1,251,431 | ||||||
Eli Lilly & Co. |
15,730 | 1,043,371 | ||||||
GlaxoSmithKline plc - ADR (United Kingdom) |
42,874 | 1,950,338 | ||||||
Johnson & Johnson |
103,560 | 11,161,697 | ||||||
Merck & Co., Inc. |
41,340 | 2,395,240 | ||||||
Novartis AG - ADR (Switzerland) |
30,510 | 2,827,972 | ||||||
Pfizer, Inc. |
90,290 | 2,704,185 | ||||||
Roche Holding AG (Switzerland)1 |
4,330 | 1,277,790 | ||||||
Sanofi (France)1 |
25,380 | 2,302,981 | ||||||
Sanofi - ADR (France) |
166,187 | 7,684,487 | ||||||
Teva Pharmaceutical Industries Ltd. - ADR (Israel) |
11,520 | 650,534 | ||||||
|
|
|||||||
35,250,026 | ||||||||
|
|
|||||||
Total Health Care |
68,382,923 | |||||||
|
|
|||||||
Industrials - 2.3% |
||||||||
Aerospace & Defense - 0.1% |
||||||||
The Boeing Co. |
9,490 | 1,185,396 | ||||||
Lockheed Martin Corp. |
4,480 | 853,754 | ||||||
|
|
|||||||
2,039,150 | ||||||||
|
|
|||||||
Air Freight & Logistics - 0.1% |
||||||||
United Parcel Service, Inc. - Class B |
8,770 | 920,061 | ||||||
|
|
|||||||
Airlines - 0.0%## |
||||||||
Gol Linhas Aereas Inteligentes S.A. - ADR (Brazil) |
56,710 | 293,191 | ||||||
Latam Airlines Group S.A. - ADR (Chile)* |
23,445 | 286,029 | ||||||
|
|
|||||||
579,220 | ||||||||
|
|
|||||||
Commercial Services & Supplies - 0.1% |
||||||||
MiX Telematics Ltd. - ADR (South Africa)* |
12,650 | 112,711 | ||||||
Rollins, Inc. |
2,660 | 84,774 | ||||||
Waste Management, Inc. |
45,110 | 2,205,428 | ||||||
|
|
|||||||
2,402,913 | ||||||||
|
|
|||||||
Electrical Equipment - 0.1% |
||||||||
ABB Ltd. (Asea Brown Boveri) - ADR (Switzerland) |
36,690 | 804,980 | ||||||
Emerson Electric Co. |
11,950 | 765,517 | ||||||
Polypore International, Inc.* |
2,240 | 98,381 | ||||||
|
|
|||||||
1,668,878 | ||||||||
|
|
|||||||
Industrial Conglomerates - 1.1% |
||||||||
3M Co. |
11,360 | 1,746,828 | ||||||
General Electric Co. |
553,295 | 14,280,544 | ||||||
Siemens AG - ADR (Germany) |
13,940 | 1,571,596 | ||||||
|
|
|||||||
17,598,968 | ||||||||
|
|
|||||||
Machinery - 0.6% |
||||||||
AGCO Corp. |
2,520 | 111,661 | ||||||
Caterpillar, Inc. |
8,360 | 847,788 | ||||||
Deere & Co. |
950 | 81,263 | ||||||
Donaldson Co., Inc. |
16,440 | 683,575 | ||||||
FANUC Corp. (Japan)1 |
680 | 119,840 | ||||||
Illinois Tool Works, Inc. |
7,530 | 685,607 | ||||||
Joy Global, Inc. |
128,350 | 6,755,061 | ||||||
Kennametal, Inc. |
1,300 | 50,193 | ||||||
KUKA AG (Germany)1 |
1,370 | 86,342 | ||||||
Pall Corp. |
2,350 | 214,837 | ||||||
Pentair plc (United Kingdom) |
2,690 | 180,365 | ||||||
Sany Heavy Equipment International Holdings Co. Ltd. (China)*1 |
521,950 | 115,688 | ||||||
Xylem, Inc. |
5,350 | 194,526 | ||||||
|
|
|||||||
10,126,746 | ||||||||
|
|
|||||||
Marine - 0.0%## |
||||||||
Sinotrans Shipping Ltd. (China)*1 |
1,084,740 | 296,711 | ||||||
|
|
|||||||
Professional Services - 0.0%## |
||||||||
SGS S.A. (Switzerland)1 |
30 | 65,956 | ||||||
|
|
|||||||
Road & Rail - 0.1% |
||||||||
Kansas City Southern |
990 | 121,562 | ||||||
Union Pacific Corp. |
16,650 | 1,938,893 | ||||||
|
|
|||||||
2,060,455 | ||||||||
|
|
|||||||
Trading Companies & Distributors - 0.1% |
||||||||
Brenntag AG (Germany)1 |
3,230 | 156,725 | ||||||
Fastenal Co. |
29,850 | 1,314,594 | ||||||
|
|
|||||||
1,471,319 | ||||||||
|
|
|||||||
Total Industrials |
39,230,377 | |||||||
|
|
|||||||
Information Technology - 5.5% |
||||||||
Communications Equipment - 1.0% |
||||||||
Cisco Systems, Inc. |
110,870 | 2,712,989 | ||||||
Juniper Networks, Inc. |
547,010 | 11,525,501 | ||||||
Palo Alto Networks, Inc.* |
400 | 42,280 | ||||||
Qualcomm, Inc. |
20,630 | 1,619,661 | ||||||
Telefonaktiebolaget LM Ericsson - ADR (Sweden) |
60,230 | 713,123 | ||||||
|
|
|||||||
16,613,554 | ||||||||
|
|
|||||||
Electronic Equipment, Instruments & Components - 0.0%## |
||||||||
Cognex Corp.* |
1,950 | 77,142 | ||||||
|
|
The accompanying notes are an integral part of the financial statements.
11
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | SHARES |
VALUE (NOTE 2) |
||||||
COMMON STOCKS (continued) |
||||||||
Information Technology (continued) |
||||||||
Internet Software & Services - 1.0% eBay, Inc.* |
155,030 | $ | 8,139,075 | |||||
Google, Inc. - Class A* |
7,500 | 4,259,025 | ||||||
Google, Inc. - Class C* |
7,540 | 4,215,463 | ||||||
Qihoo 360 Technology Co. Ltd. - ADR (China)* |
3,340 | 243,753 | ||||||
Tencent Holdings Ltd. (China)1 |
17,000 | 273,229 | ||||||
Youku Tudou, Inc. - ADR (China)* |
8,130 | 159,348 | ||||||
|
|
|||||||
17,289,893 | ||||||||
|
|
|||||||
IT Services - 1.1% |
||||||||
Accenture plc - Class A |
10,310 | 836,347 | ||||||
Automatic Data Processing, Inc. |
8,690 | 710,668 | ||||||
Broadridge Financial Solutions, Inc. |
19,750 | 867,617 | ||||||
InterXion Holding N.V. - ADR (Netherlands)* |
4,500 | 123,030 | ||||||
MasterCard, Inc. - Class A |
48,460 | 4,058,525 | ||||||
VeriFone Systems, Inc.* |
129,950 | 4,841,937 | ||||||
Visa, Inc. - Class A |
18,710 | 4,517,155 | ||||||
Xerox Corp. |
149,990 | 1,991,867 | ||||||
|
|
|||||||
17,947,146 | ||||||||
|
|
|||||||
Semiconductors & Semiconductor Equipment - 0.2% |
||||||||
GCL-Poly Energy Holdings Ltd. (Hong Kong)*1 |
246,840 | 83,191 | ||||||
Intel Corp. |
73,930 | 2,514,359 | ||||||
REC Silicon ASA (Norway)*1 |
135,840 | 54,308 | ||||||
Texas Instruments, Inc. |
16,540 | 821,376 | ||||||
|
|
|||||||
3,473,234 | ||||||||
|
|
|||||||
Software - 0.7% |
||||||||
Aspen Technology, Inc.* |
1,100 | 40,623 | ||||||
AVEVA Group plc (United Kingdom)1 |
6,410 | 157,502 | ||||||
CDK Global, Inc.* |
2,896 | 97,306 | ||||||
Check Point Software Technologies Ltd. (Israel)* |
590 | 43,807 | ||||||
Electronic Arts, Inc.* |
190,960 | 7,823,631 | ||||||
Fortinet, Inc.* |
1,540 | 40,117 | ||||||
Imperva, Inc.* |
1,230 | 50,393 | ||||||
Microsoft Corp. |
75,830 | 3,560,219 | ||||||
Nuance Communications, Inc.* |
4,960 | 76,533 | ||||||
Proofpoint, Inc.* |
940 | 41,398 | ||||||
Totvs S.A. (Brazil) |
11,000 | 160,345 | ||||||
|
|
|||||||
12,091,874 | ||||||||
|
|
|||||||
Technology Hardware, Storage & Peripherals - 1.5% |
||||||||
Apple, Inc. |
47,404 | 5,119,632 | ||||||
Canon, Inc. - ADR (Japan) |
21,980 | 681,820 | ||||||
EMC Corp. |
641,380 | 18,426,847 | ||||||
Samsung Electronics Co. Ltd. (South Korea)1 |
250 | 291,536 | ||||||
Stratasys Ltd.* |
640 | 77,030 | ||||||
|
|
|||||||
24,596,865 | ||||||||
|
|
|||||||
Total Information Technology |
92,089,708 | |||||||
|
|
|||||||
Materials - 2.2% |
||||||||
Chemicals - 1.5% |
||||||||
The Dow Chemical Co. |
44,350 | 2,190,890 | ||||||
Monsanto Co. |
122,530 | 14,095,851 | ||||||
The Mosaic Co. |
159,560 | 7,070,104 | ||||||
Novozymes A/S - Class B (Denmark)1 |
1,700 | 78,721 | ||||||
Potash Corp. of Saskatchewan, Inc. (Canada) |
14,920 | 509,816 | ||||||
Sociedad Quimica y Minera de Chile S.A. - ADR (Chile) |
12,090 | 286,896 | ||||||
Syngenta AG (Switzerland)1 |
380 | 117,518 | ||||||
Tronox Ltd. - Class A |
3,200 | 77,376 | ||||||
Umicore S.A. (Belgium)1 |
2,640 | 103,616 | ||||||
Wacker Chemie AG (Germany)1 |
730 | 88,461 | ||||||
Yingde Gases Group Co. Ltd. (China)1 |
229,000 | 178,813 | ||||||
|
|
|||||||
24,798,062 | ||||||||
|
|
|||||||
Containers & Packaging - 0.1% |
||||||||
Avery Dennison Corp. |
37,880 | 1,774,678 | ||||||
|
|
|||||||
Metals & Mining - 0.5% |
||||||||
Alcoa, Inc. |
443,180 | 7,427,697 | ||||||
Alumina Ltd. (Australia)*1 |
82,440 | 119,150 | ||||||
Iluka Resources Ltd. (Australia)1 |
10,140 | 65,096 | ||||||
Impala Platinum Holdings Ltd. (South Africa)*1 |
26,570 | 193,792 | ||||||
Jastrzebska Spolka Weglowa S.A. (Poland)*1 |
19,840 | 170,497 | ||||||
Norsk Hydro ASA (Norway)1 |
10,520 | 58,901 | ||||||
Stillwater Mining Co.* |
8,380 | 110,029 | ||||||
Teck Resources Ltd. - Class B (Canada) |
3,480 | 54,914 | ||||||
|
|
|||||||
8,200,076 | ||||||||
|
|
|||||||
Paper & Forest Products - 0.1% |
||||||||
International Paper Co. |
36,910 | 1,868,384 | ||||||
|
|
|||||||
Total Materials |
36,641,200 | |||||||
|
|
|||||||
Telecommunication Services - 0.2% |
||||||||
Diversified Telecommunication Services - 0.1% |
||||||||
Verizon Communications, Inc. |
31,250 | 1,570,313 | ||||||
|
|
|||||||
Wireless Telecommunication Services - 0.1% |
||||||||
America Movil S.A.B. de C.V. - Class L - ADR (Mexico) |
19,910 | 486,003 | ||||||
China Mobile Ltd. (China)1 |
37,180 | 462,613 |
The accompanying notes are an integral part of the financial statements.
12
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | SHARES/ PRINCIPAL AMOUNT2 |
VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Telecommunication Services (continued) |
||||||||||
Wireless Telecommunication Services (continued) |
||||||||||
NTT DOCOMO, Inc. - ADR (Japan) |
60,880 | $ | 1,027,046 | |||||||
|
|
|||||||||
1,975,662 | ||||||||||
|
|
|||||||||
Total Telecommunication Services |
3,545,975 | |||||||||
|
|
|||||||||
Utilities - 0.2% |
||||||||||
Electric Utilities - 0.1% |
||||||||||
Exelon Corp |
28,780 | 1,053,060 | ||||||||
Northeast Utilities |
15,390 | 759,497 | ||||||||
|
|
|||||||||
1,812,557 | ||||||||||
|
|
|||||||||
Multi-Utilities - 0.1% |
||||||||||
CMS Energy Corp |
28,120 | 918,680 | ||||||||
|
|
|||||||||
Total Utilities |
2,731,237 | |||||||||
|
|
|||||||||
TOTAL COMMON STOCKS |
||||||||||
(Identified Cost $518,760,548) |
570,516,818 | |||||||||
|
|
|||||||||
PREFERRED STOCKS - 0.2% |
||||||||||
Financials - 0.2% |
||||||||||
Banks - 0.1% |
||||||||||
U.S. Bancorp., Series F (non-cumulative), 6.50%3 |
45,425 | 1,331,407 | ||||||||
|
|
|||||||||
Insurance - 0.1% |
||||||||||
Principal Financial Group, Inc., Series A (non-cumulative), 5.563%3 |
19,200 | 1,939,200 | ||||||||
|
|
|||||||||
Real Estate Investment Trusts (REITS) - 0.0%## |
||||||||||
Public Storage, Series Q, 6.50% |
18,560 | 487,200 | ||||||||
|
|
|||||||||
TOTAL PREFERRED STOCKS (Identified Cost $3,586,846) |
3,757,807 | |||||||||
|
|
|||||||||
CORPORATE BONDS - 29.2% |
||||||||||
Convertible Corporate Bonds - 0.1% |
||||||||||
Consumer Discretionary - 0.1% |
||||||||||
Internet & Catalog Retail - 0.1% |
||||||||||
The Priceline Group, Inc., 0.35%, 6/15/2020 |
1,265,000 | 1,434,194 | ||||||||
|
|
|||||||||
Financials - 0.0%## |
||||||||||
Real Estate Investment Trusts (REITS) - 0.0%## |
||||||||||
BioMed Realty LP4, 3.75%, 1/15/2030 |
410,000 | 521,212 | ||||||||
|
|
|||||||||
Total Convertible Corporate Bonds (Identified Cost $2,023,087) |
1,955,406 | |||||||||
|
|
|||||||||
Non-Convertible Corporate Bonds - 29.1% |
||||||||||
Consumer Discretionary - 3.6% |
||||||||||
Auto Components - 0.4% |
||||||||||
Delphi Corp., 5.00%, 2/15/2023 |
1,570,000 | 1,681,863 | ||||||||
Icahn Enterprises LP - Icahn Enterprises Finance Corp., 3.50%, 3/15/2017 |
3,605,000 | 3,586,975 | ||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Consumer Discretionary (continued) |
||||||||||
Auto Components (continued) |
||||||||||
Icahn Enterprises LP - Icahn |
||||||||||
Enterprises Finance Corp., 5.875%, 2/1/2022 |
935,000 | $ | 960,713 | |||||||
|
|
|||||||||
6,229,551 | ||||||||||
|
|
|||||||||
Automobiles - 0.4% |
||||||||||
Ford Motor Credit Co. LLC, 6.625%, 8/15/2017 |
500,000 | 563,705 | ||||||||
Ford Motor Credit Co. LLC, 5.00%, 5/15/2018 |
3,030,000 | 3,315,517 | ||||||||
Ford Motor Credit Co. LLC, 8.125%, 1/15/2020 |
1,825,000 | 2,280,774 | ||||||||
|
|
|||||||||
6,159,996 | ||||||||||
|
|
|||||||||
Diversified Consumer Services - 0.3% |
||||||||||
Block Financial LLC, 5.50%, 11/1/2022 |
4,990,000 | 5,383,192 | ||||||||
Crestview DS Merger Sub II, Inc., 10.00%, 9/1/2021 |
600,000 | 663,000 | ||||||||
|
|
|||||||||
6,046,192 | ||||||||||
|
|
|||||||||
Hotels, Restaurants & Leisure - 0.5% |
||||||||||
International Game Technology, 7.50%, 6/15/2019 |
6,375,000 | 7,059,936 | ||||||||
Yum! Brands, Inc., 6.25%, 4/15/2016 |
1,000,000 | 1,072,701 | ||||||||
|
|
|||||||||
8,132,637 | ||||||||||
|
|
|||||||||
Household Durables - 0.5% |
||||||||||
Brookfield Residential Properties, Inc. - Brookfield Residential US Corp. (Canada)4, 6.125%, 7/1/2022 |
660,000 | 701,250 | ||||||||
Newell Rubbermaid, Inc., 4.70%, 8/15/2020 |
1,400,000 | 1,510,151 | ||||||||
NVR, Inc., 3.95%, 9/15/2022 |
1,070,000 | 1,094,027 | ||||||||
Tupperware Brands Corp., 4.75%, 6/1/2021 |
4,105,000 | 4,369,896 | ||||||||
Weekley Homes LLC - Weekley Finance Corp., 6.00%, 2/1/2023 |
745,000 | 730,100 | ||||||||
|
|
|||||||||
8,405,424 | ||||||||||
|
|
|||||||||
Media - 1.3% |
||||||||||
21st Century Fox America, Inc., 6.90%, 3/1/2019 |
1,255,000 | 1,492,392 | ||||||||
Cogeco Cable, Inc. (Canada)4, 4.875%, 5/1/2020 |
1,005,000 | 1,005,000 | ||||||||
Columbus International, Inc. (Barbados)4, 7.375%, 3/30/2021 |
570,000 | 604,200 | ||||||||
Comcast Corp., 5.15%, 3/1/2020 |
500,000 | 570,618 | ||||||||
DIRECTV Holdings LLC - DIRECTV Financing Co., Inc., 5.20%, 3/15/2020 |
3,140,000 | 3,511,201 | ||||||||
Discovery Communications LLC, 5.05%, 6/1/2020 |
2,880,000 | 3,201,342 | ||||||||
Gannett Co., Inc.4, 4.875%, 9/15/2021 |
970,000 | 977,275 |
The accompanying notes are an integral part of the financial statements.
13
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT 2 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Consumer Discretionary (continued) |
||||||||||
Media (continued) |
||||||||||
Sirius XM Radio, Inc.4, 4.25%, 5/15/2020 |
975,000 | $ | 969,516 | |||||||
Time Warner, Inc., 4.875%, 3/15/2020 |
5,060,000 | 5,576,869 | ||||||||
Time Warner, Inc., 4.75%, 3/29/2021 |
3,370,000 | 3,706,902 | ||||||||
The Walt Disney Co., 2.75%, 8/16/2021 |
400,000 | 407,198 | ||||||||
|
|
|||||||||
22,022,513 | ||||||||||
|
|
|||||||||
Multiline Retail - 0.1% |
||||||||||
Macys Retail Holdings, Inc., 2.875%, 2/15/2023 |
1,575,000 | 1,510,231 | ||||||||
Target Corp., 3.875%, 7/15/2020 |
535,000 | 575,908 | ||||||||
|
|
|||||||||
2,086,139 | ||||||||||
|
|
|||||||||
Specialty Retail - 0.1% |
||||||||||
The TJX Companies, Inc., 2.75%, 6/15/2021 |
1,525,000 | 1,522,487 | ||||||||
|
|
|||||||||
Textiles, Apparel & Luxury Goods - 0.0%## |
||||||||||
VF Corp., 5.95%, 11/1/2017 |
485,000 | 551,627 | ||||||||
|
|
|||||||||
Total Consumer Discretionary |
61,156,566 | |||||||||
|
|
|||||||||
Consumer Staples - 0.8% |
||||||||||
Beverages - 0.3% |
||||||||||
Anheuser-Busch InBev Worldwide, Inc. (Belgium), 7.75%, 1/15/2019 |
1,215,000 | 1,473,458 | ||||||||
Beam Suntory, Inc., 1.75%, 6/15/2018 |
1,308,000 | 1,296,942 | ||||||||
PepsiCo, Inc., 5.00%, 6/1/2018 |
110,000 | 122,372 | ||||||||
Pernod-Ricard S.A. (France)4, 5.75%, 4/7/2021 |
1,365,000 | 1,561,758 | ||||||||
SABMiller plc (United Kingdom)4, 6.50%, 7/15/2018 |
1,170,000 | 1,348,042 | ||||||||
|
|
|||||||||
5,802,572 | ||||||||||
|
|
|||||||||
Food & Staples Retailing - 0.2% |
||||||||||
C&S Group Enterprises LLC4, 5.375%, 7/15/2022 |
940,000 | 940,000 | ||||||||
KeHE Distributors LLC - KeHE Finance Corp.4, 7.625%, 8/15/2021 |
735,000 | 780,937 | ||||||||
Shearers Foods LLC - Chip Finance Corp.4, 9.00%, 11/1/2019 |
680,000 | 748,000 | ||||||||
|
|
|||||||||
2,468,937 | ||||||||||
|
|
|||||||||
Food Products - 0.1% |
||||||||||
General Mills, Inc., 5.65%, 2/15/2019 |
375,000 | 429,369 | ||||||||
Pinnacle Operating Corp.4, 9.00%, 11/15/2020 |
880,000 | 948,200 | ||||||||
|
|
|||||||||
1,377,569 | ||||||||||
|
|
|||||||||
Household Products - 0.2% |
||||||||||
Energizer Holdings, Inc., 4.70%, 5/19/2021 |
1,300,000 | 1,327,863 | ||||||||
Harbinger Group, Inc., 7.875%, 7/15/2019 |
815,000 | 882,237 | ||||||||
Harbinger Group, Inc., 7.75%, 1/15/2022 |
800,000 | 812,000 | ||||||||
|
|
|||||||||
3,022,100 | ||||||||||
|
|
|||||||||
Tobacco - 0.0%## |
||||||||||
Vector Group Ltd., 7.75%, 2/15/2021 |
725,000 | 785,719 | ||||||||
|
|
|||||||||
Total Consumer Staples |
13,456,897 | |||||||||
|
|
|||||||||
Energy - 1.4% |
||||||||||
Energy Equipment & Services - 0.6% |
||||||||||
Baker Hughes, Inc., 7.50%, 11/15/2018 |
1,235,000 | 1,493,203 | ||||||||
Calfrac Holdings LP (Canada)4, 7.50%, 12/1/2020 |
970,000 | 989,400 | ||||||||
Parker Drilling Co., 6.75%, 7/15/2022 |
1,020,000 | 928,200 | ||||||||
Schlumberger Oilfield plc4, 4.20%, 1/15/2021 |
450,000 | 490,937 | ||||||||
Seventy Seven Operating LLC, 6.625%, 11/15/2019 |
625,000 | 618,750 | ||||||||
Shelf Drilling Holdings Ltd. (United Arab Emirates)4, 8.625%, 11/1/2018 |
880,000 | 869,000 | ||||||||
US Shale Solutions, Inc.4, 12.50%, 9/1/2017 |
485,000 | 436,500 | ||||||||
Weatherford International Ltd., 9.625%, 3/1/2019 |
3,425,000 | 4,376,790 | ||||||||
|
|
|||||||||
10,202,780 | ||||||||||
|
|
|||||||||
Oil, Gas & Consumable Fuels - 0.8% |
||||||||||
Buckeye Partners LP, 4.15%, 7/1/2023 |
1,145,000 | 1,150,653 | ||||||||
Energy XXI Gulf Coast, Inc., 7.50%, 12/15/2021 |
860,000 | 713,800 | ||||||||
FTS International, Inc.4, 6.25%, 5/1/2022 |
610,000 | 576,450 | ||||||||
Ithaca Energy, Inc. (United Kingdom)4, 8.125%, 7/1/2019 |
885,000 | 761,100 | ||||||||
PBF Holding Co. LLC - PBF Finance Corp., 8.25%, 2/15/2020 |
1,190,000 | 1,245,037 | ||||||||
Petrobras Global Finance B.V. (Brazil)5, 1.852%, 5/20/2016 |
4,115,000 | 4,115,000 | ||||||||
Petroleos Mexicanos (Mexico), 5.75%, 3/1/2018 |
1,345,000 | 1,486,629 | ||||||||
Petroleos Mexicanos (Mexico), 8.00%, 5/3/2019 |
2,400,000 | 2,915,760 | ||||||||
Sabine Pass Liquefaction LLC, 5.625%, 2/1/2021 |
895,000 | 937,513 | ||||||||
|
|
|||||||||
13,901,942 | ||||||||||
|
|
|||||||||
Total Energy |
24,104,722 | |||||||||
|
|
The accompanying notes are an integral part of the financial statements.
14
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT2 |
VALUE (NOTE 2) |
||||||||||||
CORPORATE BONDS (continued) |
||||||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||||||
Financials - 17.3% |
||||||||||||||
Banks - 5.8% |
||||||||||||||
Banco Bilbao Vizcaya Argentaria S.A. (Spain)5, 9.00%, 5/29/2049 |
1,600,000 | $ | 1,729,280 | |||||||||||
Banco Santander S.A. (Spain)5, 6.375%, 5/29/2049 |
1,600,000 | 1,572,400 | ||||||||||||
Bank of America Corp., 6.50%, 8/1/2016 |
2,000,000 | 2,180,906 | ||||||||||||
Bank of America Corp., 5.75%, 8/15/2016 |
1,425,000 | 1,534,865 | ||||||||||||
Bank of America Corp., 6.875%, 4/25/2018 |
7,420,000 | 8,583,248 | ||||||||||||
Bank of America Corp., 7.625%, 6/1/2019 |
2,315,000 | 2,807,956 | ||||||||||||
Bank of Montreal (Canada)4, 2.625%, 1/25/2016 |
2,965,000 | 3,036,400 | ||||||||||||
Bank of Montreal (Canada)4, 1.95%, 1/30/2017 |
5,000,000 | 5,098,780 | ||||||||||||
Barclays Bank plc (United Kingdom), 5.14%, 10/14/2020 |
1,060,000 | 1,151,997 | ||||||||||||
Barclays Bank plc (United Kingdom)4, 10.179%, 6/12/2021 |
1,100,000 | 1,476,939 | ||||||||||||
Barclays plc (United Kingdom)5, 6.625%, 6/29/2049 |
900,000 | 861,300 | ||||||||||||
BBVA Bancomer S.A. (Mexico)4, 6.75%, 9/30/2022 |
1,460,000 | 1,653,450 | ||||||||||||
BBVA US Senior S.A.U. (Spain), 4.664%, 10/9/2015 |
10,165,000 | 10,532,007 | ||||||||||||
BPCE S.A. (France)5, 2.84%, 7/29/2049 |
1,460,000 | 1,278,011 | ||||||||||||
Canadian Imperial Bank of Commerce (Canada)4, 2.75%, 1/27/2016 |
1,450,000 | 1,488,518 | ||||||||||||
Citigroup, Inc., 5.85%, 8/2/2016 |
2,200,000 | 2,374,750 | ||||||||||||
Citigroup, Inc., 8.50%, 5/22/2019 |
3,709,000 | 4,653,753 | ||||||||||||
Commonwealth Bank of Australia (Australia), 5.75%, 1/25/2017 |
AUD | 300,000 | 278,721 | |||||||||||
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A. (Netherlands)5, 8.40%, 11/29/2049 |
1,100,000 | 1,210,000 | ||||||||||||
HSBC Bank plc (United Kingdom)4, 1.50%, 5/15/2018 |
2,115,000 | 2,086,361 | ||||||||||||
HSBC Finance Corp., 6.676%, 1/15/2021 |
1,300,000 | 1,532,028 | ||||||||||||
HSBC USA Capital Trust I (United Kingdom)4, 7.808%, 12/15/2026 |
400,000 | 404,936 | ||||||||||||
Intesa Sanpaolo S.p.A. (Italy), 3.875%, 1/15/2019 |
1,975,000 | 2,056,137 | ||||||||||||
Intesa Sanpaolo S.p.A. (Italy)4, 6.50%, 2/24/2021 |
1,400,000 | 1,624,465 | ||||||||||||
Intesa Sanpaolo S.p.A. (Italy)4, 5.017%, 6/26/2024 |
1,640,000 | 1,602,795 | ||||||||||||
JPMorgan Chase & Co., 3.15%, 7/5/2016 |
4,300,000 | 4,447,658 | ||||||||||||
JPMorgan Chase & Co., 6.30%, 4/23/2019 |
500,000 | 580,251 | ||||||||||||
JPMorgan Chase & Co., 4.95%, 3/25/2020 |
1,255,000 | 1,393,467 | ||||||||||||
Lloyds Bank plc (United Kingdom)4, 6.50%, 9/14/2020 |
3,200,000 | 3,700,931 | ||||||||||||
Lloyds Bank plc (United Kingdom)5, 9.875%, 12/16/2021 |
1,247,000 | 1,434,050 | ||||||||||||
National City Corp., 6.875%, 5/15/2019 |
6,630,000 | 7,846,114 | ||||||||||||
Popular, Inc., 7.00%, 7/1/2019 |
1,270,000 | 1,279,525 | ||||||||||||
Royal Bank of Canada (Canada), 3.27%, 11/10/2014 |
CAD | 225,000 | 199,666 | |||||||||||
Royal Bank of Canada (Canada), 3.18%, 3/16/2015 |
CAD | 355,000 | 317,117 | |||||||||||
Royal Bank of Canada (Canada), 3.77%, 3/30/2018 |
CAD | 340,000 | 319,881 | |||||||||||
Royal Bank of Scotland Group plc (United Kingdom)5, 1.173%, 3/31/2017 |
3,075,000 | 3,085,191 | ||||||||||||
The Royal Bank of Scotland plc (United Kingdom)5, 9.50%, 3/16/2022 |
555,000 | 634,309 | ||||||||||||
Santander Bank N.A. (Spain), 8.75%, 5/30/2018 |
1,225,000 | 1,482,121 | ||||||||||||
Santander Holdings USA, Inc., 4.625%, 4/19/2016 |
220,000 | 231,412 | ||||||||||||
Santander Holdings USA, Inc., 3.45%, 8/27/2018 |
1,600,000 | 1,669,200 | ||||||||||||
The Toronto-Dominion Bank (Canada)4, 1.625%, 9/14/2016 |
5,555,000 | 5,639,958 | ||||||||||||
Westpac Banking Corp. (Australia), 5.75%, 2/6/2017 |
AUD | 300,000 | 278,971 | |||||||||||
|
|
|||||||||||||
97,349,825 | ||||||||||||||
|
|
|||||||||||||
Capital Markets - 3.4% |
||||||||||||||
Credit Suisse AG (Switzerland)4, 2.60%, 5/27/2016 |
6,145,000 | 6,329,805 | ||||||||||||
Goldman Sachs Capital II5, 4.00%, 12/29/2049 |
1,500,000 | 1,128,000 | ||||||||||||
The Goldman Sachs Group, Inc., 3.625%, 2/7/2016 |
5,400,000 | 5,572,924 | ||||||||||||
The Goldman Sachs Group, Inc., 5.95%, 1/18/2018 |
950,000 | 1,063,667 | ||||||||||||
The Goldman Sachs Group, Inc., 6.15%, 4/1/2018 |
2,110,000 | 2,384,300 | ||||||||||||
The Goldman Sachs Group, Inc.5, 1.332%, 11/15/2018 |
6,350,000 | 6,415,011 | ||||||||||||
The Goldman Sachs Group, Inc., 5.375%, 3/15/2020 |
6,125,000 | 6,868,054 | ||||||||||||
The Goldman Sachs Group, Inc.5, 1.836%, 11/29/2023 |
1,415,000 | 1,460,607 | ||||||||||||
The Goldman Sachs Group, Inc., Series D, 6.00%, 6/15/2020 |
1,150,000 | 1,322,513 | ||||||||||||
Morgan Stanley, 3.80%, 4/29/2016 |
5,405,000 | 5,617,881 | ||||||||||||
Morgan Stanley, 2.125%, 4/25/2018 |
5,900,000 | 5,916,343 | ||||||||||||
Morgan Stanley, 5.50%, 1/26/2020 |
2,650,000 | 2,987,374 |
The accompanying notes are an integral part of the financial statements.
15
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT2 |
VALUE (NOTE 2) |
||||||||||
CORPORATE BONDS (continued) |
||||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||||
Financials (continued) |
||||||||||||
Capital Markets (continued) |
||||||||||||
Morgan Stanley, 5.75%, 1/25/2021 |
5,955,000 | $ | 6,837,876 | |||||||||
Scottrade Financial Services, Inc.4, 6.125%, 7/11/2021 |
350,000 | 367,646 | ||||||||||
UBS AG (Switzerland)5, 7.25%, 2/22/2022 |
1,455,000 | 1,573,655 | ||||||||||
UBS AG (Switzerland), 7.625%, 8/17/2022 |
830,000 | 979,529 | ||||||||||
UBS AG (Switzerland)5, 4.75%, 5/22/2023 |
975,000 | 985,969 | ||||||||||
|
|
|||||||||||
57,811,154 | ||||||||||||
|
|
|||||||||||
Consumer Finance - 0.6% |
||||||||||||
Ally Financial, Inc., 6.75%, 12/1/2014 |
545,000 | 546,635 | ||||||||||
American Express Co.5, 6.80%, 9/1/2066 |
2,190,000 | 2,321,181 | ||||||||||
Capital One Bank USA National Association, 2.15%, 11/21/2018 |
650,000 | 647,782 | ||||||||||
Caterpillar Financial Services Corp., 7.05%, 10/1/2018 |
770,000 | 912,227 | ||||||||||
CNG Holdings, Inc.4, 9.375%, 5/15/2020 |
820,000 | 617,050 | ||||||||||
Discover Bank, 4.20%, 8/8/2023 |
1,120,000 | 1,173,486 | ||||||||||
Navient Corp., 6.00%, 1/25/2017 |
3,060,000 | 3,228,300 | ||||||||||
Navient Corp., 6.125%, 3/25/2024 |
920,000 | 949,909 | ||||||||||
|
|
|||||||||||
10,396,570 | ||||||||||||
|
|
|||||||||||
Diversified Financial Services - 1.9% |
||||||||||||
The Bear Stearns Companies LLC, 7.25%, 2/1/2018 |
1,775,000 | 2,063,427 | ||||||||||
CME Group, Inc., 3.00%, 9/15/2022 |
1,040,000 | 1,045,062 | ||||||||||
General Electric Capital Corp., 5. 30%, 2/11/2021 |
1,450,000 | 1,646,708 | ||||||||||
General Electric Capital Corp.5, 0.612%, 5/5/2026 |
2,385,000 | 2,276,509 | ||||||||||
General Electric Capital Corp.5, 7.125%, 12/29/2049 |
2,605,000 | 3,034,825 | ||||||||||
ING Bank N.V. (Netherlands)4, 5.80%, 9/25/2023 |
2,200,000 | 2,448,428 | ||||||||||
ING Bank N.V. (Netherlands)5, 4.125%, 11/21/2023 |
1,650,000 | 1,690,309 | ||||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.4, 7.375%, 4/1/2020 |
790,000 | 786,050 | ||||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.4, 7.50%, 4/15/2021 |
1,045,000 | 1,039,775 | ||||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.4, 6.875%, 4/15/2022 |
590,000 | 570,825 | ||||||||||
Jefferies Group LLC, 5.125%, 4/13/2018 |
820,000 | 888,721 | ||||||||||
Jefferies Group LLC, 8.50%, 7/15/2019 |
3,380,000 | 4,192,552 | ||||||||||
Jefferies Group LLC, 6.875%, 4/15/2021 |
4,500,000 | 5,270,310 | ||||||||||
Voya Financial, Inc., 2.90%, 2/15/2018 |
3,065,000 | 3,151,197 | ||||||||||
Voya Financial, Inc., 5.50%, 7/15/2022 |
1,015,000 | 1,144,281 | ||||||||||
|
|
|||||||||||
31,248,979 | ||||||||||||
|
|
|||||||||||
Insurance - 3.1% |
||||||||||||
Aegon N.V. (Netherlands)5, 2.549%, 7/29/2049 |
2,195,000 | 1,959,037 | ||||||||||
American International Group, Inc., 6.40%, 12/15/2020 |
800,000 | 955,320 | ||||||||||
American International Group, Inc., 4.875%, 6/1/2022 |
9,095,000 | 10,144,472 | ||||||||||
Assured Guaranty US Holdings, Inc., 5.00%, 7/1/2024 |
3,445,000 | 3,585,329 | ||||||||||
AXA S.A. (France)5, 2.663%, 8/29/2049 |
2,900,000 | 2,624,500 | ||||||||||
Fidelity National Financial, Inc., 6.60%, 5/15/2017 |
1,725,000 | 1,918,178 | ||||||||||
First American Financial Corp., 4.30%, 2/1/2023 |
1,145,000 | 1,158,421 | ||||||||||
Genworth Holdings, Inc., 7.70%, 6/15/2020 |
942,000 | 1,130,840 | ||||||||||
Genworth Holdings, Inc., 7.625%, 9/24/2021 |
10,245,000 | 12,487,753 | ||||||||||
Genworth Holdings, Inc.5, 6.15%, 11/15/2066 |
4,095,000 | 3,501,225 | ||||||||||
The Hartford Financial Services Group, Inc., 5.125%, 4/15/2022 |
9,035,000 | 10,096,414 | ||||||||||
Prudential Financial, Inc.5, 5.875%, 9/15/2042 |
1,680,000 | 1,780,800 | ||||||||||
|
|
|||||||||||
51,342,289 | ||||||||||||
|
|
|||||||||||
Real Estate Investment Trusts (REITS) - 2.3% |
||||||||||||
American Campus Communities Operating Partnership LP, 3.75%, 4/15/2023 |
860,000 | 853,840 | ||||||||||
American Tower Corp., 3.40%, 2/15/2019 |
5,090,000 | 5,206,261 | ||||||||||
American Tower Trust I4, 1.551%, 3/15/2018 |
985,000 | 978,050 | ||||||||||
BioMed Realty LP, 3.85%, 4/15/2016 |
115,000 | 119,561 | ||||||||||
Boston Properties LP, 5.875%, 10/15/2019 |
3,270,000 | 3,772,262 | ||||||||||
Camden Property Trust, 5.70%, 5/15/2017 |
2,270,000 | 2,507,192 | ||||||||||
Corrections Corp. of America, 4.125%, 4/1/2020 |
940,000 | 925,900 | ||||||||||
Digital Realty Trust LP, 5.875%, 2/1/2020 |
1,300,000 | 1,452,567 | ||||||||||
Digital Realty Trust LP, 5.25%, 3/15/2021 |
880,000 | 964,479 | ||||||||||
DuPont Fabros Technology LP, 5.875%, 9/15/2021 |
930,000 | 967,200 | ||||||||||
HCP, Inc., 6.70%, 1/30/2018 |
3,455,000 | 3,979,041 | ||||||||||
Health Care REIT, Inc., 6.20%, 6/1/2016 |
520,000 | 562,282 |
The accompanying notes are an integral part of the financial statements.
16
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT 2 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Financials (continued) |
||||||||||
Real Estate Investment Trusts (REITS) (continued) |
||||||||||
Health Care REIT, Inc., 4.95%, 1/15/2021 |
4,100,000 | $ | 4,500,115 | |||||||
Hospitality Properties Trust, 6.70%, 1/15/2018 |
1,595,000 | 1,777,774 | ||||||||
Mack-Cali Realty LP, 7.75%, 8/15/2019 |
370,000 | 441,684 | ||||||||
Qualitytech LP - QTS Finance Corp.4, 5.875%, 8/1/2022 |
635,000 | 638,175 | ||||||||
Rialto Holdings LLC - Rialto Corp.4, 7.00%, 12/1/2018 |
880,000 | 899,800 | ||||||||
Simon Property Group LP, 10.35%, 4/1/2019 |
5,660,000 | 7,492,125 | ||||||||
UDR, Inc., 4.625%, 1/10/2022 |
730,000 | 787,609 | ||||||||
|
|
|||||||||
38,825,917 | ||||||||||
|
|
|||||||||
Real Estate Management & Development - 0.0%## |
||||||||||
Forestar USA Real Estate Group, Inc.4, 8.50%, 6/1/2022 |
595,000 | 608,387 | ||||||||
|
|
|||||||||
Thrifts & Mortgage Finance - 0.2% |
||||||||||
Ladder Capital Finance Holdings LLLP - Ladder Capital Finance Corp., 7.375%, 10/1/2017 |
900,000 | 951,750 | ||||||||
Ladder Capital Finance Holdings LLLP - Ladder Capital Finance Corp.4, 5.875%, 8/1/2021 |
800,000 | 793,000 | ||||||||
Prospect Holding Co. LLC - Prospect Holding Finance Co.4, 10.25%, 10/1/2018 |
610,000 | 549,000 | ||||||||
Provident Funding Associates LP - PFG Finance Corp.4, 6.75%, 6/15/2021 |
555,000 | 553,613 | ||||||||
|
|
|||||||||
2,847,363 | ||||||||||
|
|
|||||||||
Total Financials |
290,430,484 | |||||||||
|
|
|||||||||
Health Care - 0.5% |
||||||||||
Biotechnology - 0.1% |
||||||||||
Amgen, Inc., 2.20%, 5/22/2019 |
1,525,000 | 1,513,319 | ||||||||
|
|
|||||||||
Health Care Equipment & Supplies - 0.0%## |
||||||||||
Halyard Health, Inc.4, 6.25%, 10/15/2022 |
625,000 | 639,063 | ||||||||
|
|
|||||||||
Health Care Providers & Services - 0.2% |
||||||||||
Express Scripts Holding Co., 4.75%, 11/15/2021 |
1,250,000 | 1,372,721 | ||||||||
Fresenius Medical Care US Finance, Inc. (Germany)4, 6.50%, 9/15/2018 |
1,130,000 | 1,251,475 | ||||||||
Fresenius US Finance II, Inc. (Germany)4, 9.00%, 7/15/2015 |
800,000 | 832,000 | ||||||||
UnitedHealth Group, Inc., 2.75%, 2/15/2023 |
630,000 | 613,997 | ||||||||
|
|
|||||||||
4,070,193 | ||||||||||
|
|
|||||||||
Pharmaceuticals - 0.2% |
||||||||||
Novartis Securities Investment Ltd. (Switzerland), 5.125%, 2/10/2019 |
595,000 | 671,691 | ||||||||
Roche Holdings, Inc. (Switzerland)4, 6.00%, 3/1/2019 |
1,694,000 | 1,957,315 | ||||||||
|
|
|||||||||
2,629,006 | ||||||||||
|
|
|||||||||
Total Health Care |
8,851,581 | |||||||||
|
|
|||||||||
Industrials - 2.4% |
||||||||||
Aerospace & Defense - 0.4% |
||||||||||
DigitalGlobe, Inc.4, 5.25%, 2/1/2021 |
991,000 | 963,747 | ||||||||
Honeywell International, Inc., 5.30%, 3/1/2018 |
405,000 | 454,267 | ||||||||
L-3 Communications Corp., 3.95%, 11/15/2016 |
1,935,000 | 2,036,280 | ||||||||
Textron, Inc., 5.60%, 12/1/2017 |
3,150,000 | 3,489,857 | ||||||||
Textron, Inc., 7.25%, 10/1/2019 |
350,000 | 417,926 | ||||||||
|
|
|||||||||
7,362,077 | ||||||||||
|
|
|||||||||
Air Freight & Logistics - 0.0%## |
||||||||||
Neovia Logistics Intermediate Holdings LLC - Logistics Intermediate Finance Corp.4,6, 10.00%, 2/15/2018 |
500,000 | 515,000 | ||||||||
|
|
|||||||||
Airlines - 0.6% |
||||||||||
Allegiant Travel Co., 5.50%, 7/15/2019 |
925,000 | 945,813 | ||||||||
American Airlines Pass-Through Trust, Series 2013-2, Class A, 4.95%, 1/15/2023 |
2,657,271 | 2,836,636 | ||||||||
Delta Air Lines Pass-Through Trust, Series 2010-1, Class B4, 6.375%, 1/2/2016 |
912,000 | 950,760 | ||||||||
Delta Air Lines Pass-Through Trust, Series 2010-2, Class B, 6.75%, 11/23/2015 |
2,370,000 | 2,470,725 | ||||||||
Gol LuxCo S.A. (Brazil)4, 8.875%, 1/24/2022 |
955,000 | 938,287 | ||||||||
Southwest Airlines Co., 5.75%, 12/15/2016 |
1,070,000 | 1,167,119 | ||||||||
United Continental Holdings, Inc., 6.375%, 6/1/2018 |
730,000 | 762,850 | ||||||||
|
|
|||||||||
10,072,190 | ||||||||||
|
|
|||||||||
Commercial Services & Supplies - 0.1% |
||||||||||
Modular Space Corp.4, 10.25%, 1/31/2019 |
890,000 | 907,800 | ||||||||
|
|
|||||||||
Construction & Engineering - 0.1% |
||||||||||
Abengoa Finance S.A.U. (Spain)4, 7.75%, 2/1/2020 |
750,000 | 783,750 | ||||||||
|
|
|||||||||
Machinery - 0.4% |
||||||||||
CNH Industrial Capital LLC, 3.875%, 11/1/2015 |
3,190,000 | 3,229,875 | ||||||||
CNH Industrial Capital LLC, 6.25%, 11/1/2016 |
835,000 | 883,013 |
The accompanying notes are an integral part of the financial statements.
17
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT2 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Industrials (continued) |
||||||||||
Machinery (continued) |
||||||||||
Joy Global, Inc., 5.125%, 10/15/2021 |
480,000 | $ | 524,976 | |||||||
SPL Logistics Escrow LLC - SPL Logistics Finance Corp.4, 8.875%, 8/1/2020 |
905,000 | 979,663 | ||||||||
Waterjet Holdings, Inc.4, 7.625%, 2/1/2020 |
755,000 | 788,975 | ||||||||
|
|
|||||||||
6,406,502 | ||||||||||
|
|
|||||||||
Road & Rail - 0.0%## |
||||||||||
JB Hunt Transport Services, Inc., 3.375%, 9/15/2015 |
105,000 | 107,518 | ||||||||
Union Pacific Corp., 5.65%, 5/1/2017 |
175,000 | 192,075 | ||||||||
|
|
|||||||||
299,593 | ||||||||||
|
|
|||||||||
Trading Companies & Distributors - 0.8% |
||||||||||
Air Lease Corp., 3.375%, 1/15/2019 |
1,910,000 | 1,933,875 | ||||||||
Aircastle Ltd., 4.625%, 12/15/2018 |
790,000 | 801,850 | ||||||||
Aviation Capital Group Corp.4, 3.875%, 9/27/2016 |
3,220,000 | 3,307,803 | ||||||||
Fly Leasing Ltd. (Ireland), 6.75%, 12/15/2020 |
890,000 | 916,700 | ||||||||
Fly Leasing Ltd. (Ireland), 6.375%, 10/15/2021 |
960,000 | 955,200 | ||||||||
International Lease Finance Corp., 8.625%, 9/15/2015 |
500,000 | 525,000 | ||||||||
International Lease Finance Corp., 5.75%, 5/15/2016 |
1,095,000 | 1,141,537 | ||||||||
International Lease Finance Corp.5, 2.184%, 6/15/2016 |
1,980,000 | 1,972,575 | ||||||||
International Lease Finance Corp., 8.75%, 3/15/2017 |
1,700,000 | 1,912,500 | ||||||||
|
|
|||||||||
13,467,040 | ||||||||||
|
|
|||||||||
Total Industrials |
39,813,952 | |||||||||
|
|
|||||||||
Information Technology - 0.8% |
||||||||||
Internet Software & Services - 0.1% |
||||||||||
Tencent Holdings Ltd. (China)4, 3.375%, 5/2/2019 |
1,465,000 | 1,489,586 | ||||||||
|
|
|||||||||
IT Services - 0.1% |
||||||||||
Xerox Corp., 2.80%, 5/15/2020 |
1,500,000 | 1,482,282 | ||||||||
|
|
|||||||||
Semiconductors & Semiconductor Equipment - 0.1% |
||||||||||
Xilinx, Inc., 3.00%, 3/15/2021 |
2,195,000 | 2,204,454 | ||||||||
|
|
|||||||||
Technology Hardware, Storage & Peripherals - 0.5% |
||||||||||
Apple, Inc., 2.40%, 5/3/2023 |
920,000 | 887,614 | ||||||||
EMC Corp., 2.65%, 6/1/2020 |
2,515,000 | 2,479,186 | ||||||||
Hewlett-Packard Co., 5.40%, 3/1/2017 |
850,000 | 924,474 | ||||||||
Hewlett-Packard Co., 5.50%, 3/1/2018 |
330,000 | 367,967 | ||||||||
Hewlett-Packard Co.5, 1.17%, 1/14/2019 |
2,840,000 | 2,829,623 | ||||||||
|
|
|||||||||
7,488,864 | ||||||||||
|
|
|||||||||
Total Information Technology |
12,665,186 | |||||||||
|
|
|||||||||
Materials - 1.3% |
||||||||||
Chemicals - 0.3% |
||||||||||
Consolidated Energy Finance S.A. (Luxembourg)4, 6.75%, 10/15/2019 |
940,000 | 958,800 | ||||||||
The Dow Chemical Co., 8.55%, 5/15/2019 |
2,390,000 | 3,010,181 | ||||||||
Lyondellbasell Industries N.V., 5.00%, 4/15/2019 |
500,000 | 551,189 | ||||||||
The Mosaic Co., 4.25%, 11/15/2023 |
695,000 | 729,007 | ||||||||
|
|
|||||||||
5,249,177 | ||||||||||
|
|
|||||||||
Containers & Packaging - 0.1% |
||||||||||
Ardagh Packaging Finance plc - Ardagh Holdings USA, Inc. (Ireland)4,5, 3.234%, 12/15/2019 |
925,000 | 904,187 | ||||||||
PaperWorks Industries, Inc.4, 9.50%, 8/15/2019 |
625,000 | 639,063 | ||||||||
|
|
|||||||||
1,543,250 | ||||||||||
|
|
|||||||||
Metals & Mining - 0.8% |
||||||||||
ArcelorMittal (Luxembourg), 10.35%, 6/1/2019 |
785,000 | 969,475 | ||||||||
BHP Billiton Finance (USA) Ltd. (Australia), 6.50%, 4/1/2019 |
1,535,000 | 1,820,693 | ||||||||
Freeport-McMoRan Oil & Gas LLC - FCX Oil & Gas, Inc., 6.125%, 6/15/2019 |
1,575,000 | 1,722,656 | ||||||||
Freeport-McMoRan Oil & Gas LLC - FCX Oil & Gas, Inc., 6.50%, 11/15/2020 |
2,684,000 | 2,930,928 | ||||||||
Freeport-McMoRan, Inc., 3.10%, 3/15/2020 |
80,000 | 79,729 | ||||||||
Rio Tinto Finance USA Ltd. (United Kingdom), 3.75%, 9/20/2021 |
1,490,000 | 1,552,336 | ||||||||
Rio Tinto Finance USA plc (United Kingdom), 1.375%, 6/17/2016 |
1,400,000 | 1,410,527 | ||||||||
SunCoke Energy Partners LP - SunCoke Energy Partners Finance Corp.4, 7.375%, 2/1/2020 |
850,000 | 888,250 | ||||||||
Teck Resources Ltd. (Canada), 3.00%, 3/1/2019 |
1,020,000 | 1,010,635 | ||||||||
|
|
|||||||||
12,385,229 | ||||||||||
|
|
|||||||||
Paper & Forest Products - 0.1% |
||||||||||
Domtar Corp., 4.40%, 4/1/2022 |
1,465,000 | 1,497,510 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
18
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT 2 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Materials (continued) |
||||||||||
Paper & Forest Products (continued) |
||||||||||
International Paper Co., 7.50%, 8/15/2021 |
620,000 | $ | 775,669 | |||||||
|
|
|||||||||
2,273,179 | ||||||||||
|
|
|||||||||
Total Materials |
21,450,835 | |||||||||
|
|
|||||||||
Telecommunication Services - 0.8% |
||||||||||
Diversified Telecommunication Services - 0.2% |
||||||||||
Telefonica Emisiones S.A.U. (Spain), 6.221%, 7/3/2017 |
2,550,000 | 2,843,449 | ||||||||
|
|
|||||||||
Wireless Telecommunication Services - 0.6% |
||||||||||
Altice Financing S.A. (Luxembourg)4, 6.50%, 1/15/2022 |
875,000 | 899,063 | ||||||||
America Movil S.A.B. de C.V. (Mexico), 5.00%, 3/30/2020 |
2,250,000 | 2,480,287 | ||||||||
CPI International, Inc., 8.75%, 2/15/2018 |
590,000 | 612,125 | ||||||||
Crown Castle Towers LLC4, 6.113%, 1/15/2020 |
390,000 | 450,592 | ||||||||
Crown Castle Towers LLC4, 4.883%, 8/15/2020 |
224,000 | 247,205 | ||||||||
SBA Tower Trust4, 5.101%, 4/17/2017 |
200,000 | 212,060 | ||||||||
SBA Tower Trust4, 2.933%, 12/15/2017 |
1,785,000 | 1,808,832 | ||||||||
SBA Tower Trust4, 3.598%, 4/15/2018 |
2,505,000 | 2,521,167 | ||||||||
UPCB Finance VI Ltd. (Netherlands)4, 6.875%, 1/15/2022 |
840,000 | 917,700 | ||||||||
|
|
|||||||||
10,149,031 | ||||||||||
|
|
|||||||||
Total Telecommunication Services |
12,992,480 | |||||||||
|
|
|||||||||
Utilities - 0.2% |
||||||||||
Independent Power and Renewable Electricity Producers - 0.2% |
||||||||||
AES Corp.5, 3.234%, 6/1/2019 |
795,000 | 790,776 | ||||||||
ContourGlobal Power Holdings S.A. (France)4, 7.125%, 6/1/2019 |
945,000 | 947,363 | ||||||||
NRG Energy, Inc., 6.25%, 7/15/2022 |
875,000 | 914,375 | ||||||||
RJS Power Holdings LLC4, 5.125%, 7/15/2019 |
615,000 | 611,925 | ||||||||
|
|
|||||||||
Total Utilities |
3,264,439 | |||||||||
|
|
|||||||||
Total Non-Convertible Corporate Bonds |
||||||||||
(Identified Cost $476,971,747) |
488,187,142 | |||||||||
|
|
|||||||||
TOTAL CORPORATE BONDS |
||||||||||
(Identified Cost $478,994,834) |
490,142,548 | |||||||||
|
|
|||||||||
PRO-BLEND® CONSERVATIVE TERM SERIES | SHARES/ PRINCIPAL |
VALUE (NOTE 2) |
||||||||
MUTUAL FUNDS - 0.5% |
||||||||||
Direxion Daily 20 Year Plus Treasury Bear 3x Shares* |
51,396 | 2,003,930 | ||||||||
ProShares Short 20+ Year Treasury* |
260,771 | 7,017,348 | ||||||||
|
|
|||||||||
TOTAL MUTUAL FUNDS |
||||||||||
(Identified Cost $10,069,929) |
9,021,278 | |||||||||
|
|
|||||||||
U.S. TREASURY SECURITIES - 3.1% |
||||||||||
U.S. Treasury Notes - 3.1% |
||||||||||
U.S. Treasury Note, 0.25%, 10/31/2015 |
20,000,000 | 20,020,320 | ||||||||
U.S. Treasury Note, 0.875%, 5/15/2017 |
16,000,000 | 16,047,504 | ||||||||
U.S. Treasury Note, 0.875%, 6/15/2017 |
15,000,000 | 15,033,990 | ||||||||
|
|
|||||||||
TOTAL U.S. TREASURY SECURITIES |
||||||||||
(Identified Cost $51,060,976) |
51,101,814 | |||||||||
|
|
|||||||||
ASSET-BACKED SECURITIES - 0.6% |
||||||||||
Alterna Funding I LLC, Series 2014-1A, Class NOTE4, 1.639%, 2/15/2021 |
2,016,345 | 2,018,865 | ||||||||
AmeriCredit Automobile Receivables Trust, Series 2012-5, Class A3, 0.62%, 6/8/2017 |
885,634 | 885,881 | ||||||||
Credit Acceptance Auto Loan Trust, Series 2012-1A, Class A4, 2.20%, 9/16/2019 |
522,765 | 524,439 | ||||||||
Enterprise Fleet Financing LLC, Series 2014-2, Class A34, 1.64%, 3/20/2020 |
1,975,000 | 1,982,912 | ||||||||
FDIC Trust, Series 2011-R1, Class A4, 2.672%, 7/25/2026 |
847,979 | 869,789 | ||||||||
Hertz Vehicle Financing LLC, Series 2009-2A, Class A24, 5.29%, 3/25/2016 |
141,667 | 143,080 | ||||||||
Hertz Vehicle Financing LLC, Series 2010-1A, Class A24, 3.74%, 2/25/2017 |
300,000 | 309,495 | ||||||||
SpringCastle America Funding LLC, Series 2014-AA, Class A4, 2.70%, 5/25/2023 |
2,750,000 | 2,752,123 | ||||||||
|
|
|||||||||
TOTAL ASSET-BACKED SECURITIES |
||||||||||
(Identified Cost $9,439,968) |
9,486,584 | |||||||||
|
|
The accompanying notes are an integral part of the financial statements.
19
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT 2 |
VALUE (NOTE 2) |
||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES - 4.5% |
||||||||||
Americold LLC Trust, Series 2010-ARTA, Class A14, 3.847%, 1/14/2029 |
340,765 | $ | 357,384 | |||||||
Banc of America Commercial Mortgage Trust, Series 2006-2, Class A45, 5.918%, 5/10/2045 |
100,000 | 105,100 | ||||||||
Banc of America Commercial Mortgage Trust, Series 2006-4, Class A4, 5.634%, 7/10/2046 |
1,233,790 | 1,303,256 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR9, Class A4A, 4.871%, 9/11/2042 |
634,421 | 647,322 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW12, Class A45, 5.891%, 9/11/2038 |
584,435 | 619,047 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW13, Class A4, 5.54%, 9/11/2041 |
791,559 | 839,530 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T24, Class AM5, 5.568%, 10/12/2041 |
1,920,000 | 2,054,839 | ||||||||
CFCRE Commercial Mortgage Trust, Series 2011-C1, Class A24, 3.759%, 4/15/2044 |
628,799 | 650,352 | ||||||||
Citigroup - Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A45, 5.40%, 7/15/2044 |
389,094 | 397,931 | ||||||||
Commercial Mortgage Pass-Through Certificates, Series 2010-C1, Class A14, 3.156%, 7/10/2046 |
221,118 | 224,190 | ||||||||
Commercial Mortgage Trust, Series 2006-GG7, Class A45, 6.014%, 7/10/2038 |
424,935 | 449,951 | ||||||||
Credit Suisse Mortgage Capital Trust, Series 2013-IVR3, Class A14,5, 2.50%, 5/25/2043 |
2,325,188 | 2,212,561 | ||||||||
Credit Suisse Mortgage Capital Trust, Series 2013-TH1, Class A14,5, 2.13%, 2/25/2043 |
2,020,623 | 1,882,146 | ||||||||
DB-UBS Mortgage Trust, Series 2011-LC1A, Class A14, 3.742%, 11/10/2046 |
793,960 | 817,971 | ||||||||
Extended Stay America Trust, Series 2013-ESH7, Class A274, 2.958%, 12/5/2031 |
2,015,000 | 2,045,193 | ||||||||
Fannie Mae Interest Strip, Series 398, Class C3 (IO), 4.50%, 5/25/2039 |
1,731,885 | 283,462 | ||||||||
Fannie Mae Interest Strip, Series 402, Class 3 (IO), 4.00%, 11/25/2039 |
9,435,798 | 1,818,133 | ||||||||
Fannie Mae Interest Strip, Series 406, Class 7 (IO), 4.50%, 1/25/2041 |
8,263,872 | 1,684,396 | ||||||||
Fannie Mae Interest Strip, Series 408, Class C1 (IO), 4.00%, 12/25/2040 |
1,419,521 | 272,036 | ||||||||
Fannie Mae Interest Strip, Series 409, Class C15 (IO), 4.00%, 11/25/2039 |
9,753,072 | 1,912,643 | ||||||||
Fannie Mae Interest Strip, Series 413, Class C32 (IO), 4.00%, 1/25/2039 |
10,934,896 | 2,116,471 | ||||||||
Fannie Mae Multifamily REMIC Trust, Series 2012-M13, Class ASQ2, 1.246%, 8/25/2017 |
1,514,092 | 1,517,276 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K009, Class X1 (IO)5, 1.634%, 8/25/2020 |
25,337,806 | 1,611,687 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K014, Class X1 (IO)5, 1.419%, 4/25/2021 |
2,966,374 | 198,136 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K016, Class X1 (IO)5, 1.722%, 10/25/2021 |
7,148,082 | 625,035 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K017, Class X1 (IO)5, 1.582%, 12/25/2021 |
9,126,229 | 734,716 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K021, Class X1 (IO)5, 1.64%, 6/25/2022 |
16,280,337 | 1,476,871 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K030, Class X1 (IO)5, 0.337%, 4/25/2023 |
81,192,767 | 1,296,161 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K032, Class X1 (IO)5, 0.237%, 5/25/2023 |
50,786,007 | 472,005 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K706, Class X1 (IO)5, 1.723%, 10/25/2018 |
11,059,942 | 605,488 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K-P01, Class A2, 1.72%, 1/25/2019 |
1,770,000 | 1,765,251 |
The accompanying notes are an integral part of the financial statements.
20
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT 2 |
VALUE (NOTE 2) |
||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (continued) |
||||||||||||
Freddie Mac REMICS, Series 4125, Class SH (IO)5, 5.995%, 11/15/2042 |
2,384,561 | $ | 490,209 | |||||||||
Freddie Mac REMICS, Series 4132, Class IO (IO), 4.50%, 11/15/2042 |
1,406,544 | 283,233 | ||||||||||
Freddie Mac REMICs, Series 4314, Class SE (IO)5, 5.895%, 3/15/2044 |
12,074,966 | 2,211,204 | ||||||||||
FREMF Mortgage Trust, Series 2011-K701, Class B4,5, 4.436%, 7/25/2048 |
875,000 | 920,727 | ||||||||||
FREMF Mortgage Trust, Series 2011-K702, Class B4,5, 4.936%, 4/25/2044 |
1,250,000 | 1,338,159 | ||||||||||
FREMF Mortgage Trust, Series 2013-K28, Class X2A (IO)4, 0.10%, 6/25/2046 |
217,882,753 | 1,395,757 | ||||||||||
FREMF Mortgage Trust, Series 2013-K502, Class B4,5, 2.841%, 3/25/2045 |
1,725,000 | 1,744,957 | ||||||||||
FREMF Mortgage Trust, Series 2013-K712, Class B4,5, 3.484%, 5/25/2045 |
1,160,000 | 1,169,635 | ||||||||||
FREMF Mortgage Trust, Series 2014-K716, Class B4,5, 4.086%, 8/25/2047 |
375,000 | 383,862 | ||||||||||
Ginnie Mae, Series 2009-121, Class QI (IO), 4.50%, 12/20/2039 |
6,746,876 | 1,464,610 | ||||||||||
Ginnie Mae, Series 2012-50, Class IO (IO), 4.00%, 4/20/2042 |
3,996,123 | 632,749 | ||||||||||
GS Mortgage Securities Corp. II, Series 2010-C2, Class A14, 3.849%, 12/10/2043 |
1,028,135 | 1,066,270 | ||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-CB13, Class A45, 5.419%, 1/12/2043 |
1,210,000 | 1,248,431 | ||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-CB13, Class AM5, 5.46%, 1/12/2043 |
535,000 | 553,546 | ||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP5, Class A45, 5.404%, 12/15/2044 |
325,000 | 333,803 | ||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP7, Class A45, 6.057%, 4/15/2045 |
1,075,000 | 1,133,109 | ||||||||||
JP Morgan Mortgage Trust, Series 2013-1, Class 1A24,5, 3.00%, 3/25/2043 |
1,699,723 | 1,682,991 | ||||||||||
JP Morgan Mortgage Trust, Series 2013-2, Class A24,5, 3.50%, 5/25/2043 |
2,035,688 | 2,063,730 | ||||||||||
JP Morgan Mortgage Trust, Series 2014-2, Class 1A14,5, 3.00%, 6/25/2029 |
2,340,728 | 2,399,641 | ||||||||||
LSTAR Commercial Mortgage Trust, Series 2014-2, Class A24, 2.767%, 1/20/2041 |
360,000 | 363,697 | ||||||||||
Morgan Stanley Capital I Trust, Series 2005-IQ10, Class A4A5, 5.23%, 9/15/2042 |
479,504 | 489,778 | ||||||||||
Morgan Stanley Capital I Trust, Series 2011-C1, Class A24, 3.884%, 9/15/2047 |
700,000 | 718,888 | ||||||||||
Motel 6 Trust, Series 2012-MTL6, Class A24, 1.948%, 10/5/2025 |
1,275,000 | 1,273,744 | ||||||||||
Resource Capital Corp., Series 2013-CRE1, Class A (Cayman Islands)4,5, 1.455%, 12/15/2028 |
1,014,839 | 1,015,525 | ||||||||||
SCG Trust, Series 2013-SRP1, Class AJ4,5, 2.105%, 11/15/2026 |
4,050,000 | 4,062,385 | ||||||||||
Sequoia Mortgage Trust, Series 2013-2, Class A15, 1.874%, 2/25/2043 |
1,595,593 | 1,428,553 | ||||||||||
Sequoia Mortgage Trust, Series 2013-7, Class A25, 3.00%, 6/25/2043 |
1,470,380 | 1,440,283 | ||||||||||
Sequoia Mortgage Trust, Series 2013-8, Class A15, 3.00%, 6/25/2043 |
1,988,228 | 1,952,110 | ||||||||||
Vornado DP LLC Trust, Series 2010-VNO, Class A2FX4, 4.004%, 9/13/2028 |
155,000 | 166,550 | ||||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2005-C21, Class A45, 5.417%, 10/15/2044 |
81,177 | 83,245 | ||||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class AM5, 5.494%, 12/15/2044 |
1,250,000 | 1,298,225 | ||||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C26, Class A35, 6.011%, 6/15/2045 |
955,000 | 1,014,707 | ||||||||||
Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class A24, 4.393%, 11/15/2043 |
265,000 | 288,688 | ||||||||||
WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class A24, 3.791%, 2/15/2044 |
1,470,000 | 1,510,188 | ||||||||||
WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class A44,5, 4.869%, 2/15/2044 |
1,225,000 | 1,369,021 |
The accompanying notes are an integral part of the financial statements.
21
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT 2 |
VALUE (NOTE 2) |
||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (continued) |
||||||||||||||
WF-RBS Commercial Mortgage Trust, Series 2013-C11, Class A2, 2.029%, 3/15/2045 |
1,815,000 | $ | 1,835,673 | |||||||||||
|
|
|||||||||||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES |
|
|||||||||||||
(Identified Cost $77,955,968) |
75,824,423 | |||||||||||||
|
|
|||||||||||||
FOREIGN GOVERNMENT BONDS - 2.4% |
|
|||||||||||||
Bonos de la Tesoreria de la Republica en pesos (Chile), 6.00%, 1/1/2018 |
CLP | 330,000,000 | 625,031 | |||||||||||
Brazil Notas do Tesouro Nacional (Brazil), 10.00%, 1/1/2019 |
BRL | 1,250,000 | 485,222 | |||||||||||
Brazilian Government International Bond (Brazil), 8.875%, 10/14/2019 |
600,000 | 771,000 | ||||||||||||
Canada Housing Trust No. 1 (Canada)4, 4.10%, 12/15/2018 |
CAD | 295,000 | 286,713 | |||||||||||
Canadian Government Bond (Canada), 1.50%, 9/1/2017 |
CAD | 1,250,000 | 1,119,272 | |||||||||||
Indonesia Treasury Bond (Indonesia), 7.875%, 4/15/2019 |
IDR | 10,500,000,000 | 869,714 | |||||||||||
Ireland Government Bond (Ireland), 5.00%, 10/18/2020 |
EUR | 230,000 | 356,679 | |||||||||||
Italy Buoni Poliennali Del Tesoro (Italy), 5.50%, 9/1/2022 |
EUR | 480,000 | 752,731 | |||||||||||
Italy Buoni Poliennali Del Tesoro (Italy), 5.50%, 11/1/2022 |
EUR | 565,000 | 886,778 | |||||||||||
Japan Government Five Year Bond (Japan), 0.30%, 12/20/2016 |
JPY | 77,000,000 | 689,335 | |||||||||||
Korea Treasury Bond (South Korea), 4.50%, 3/10/2015 |
KRW | 720,000,000 | 679,361 | |||||||||||
Korea Treasury Bond (South Korea), 2.75%, 6/10/2016 |
KRW | 370,000,000 | 349,686 | |||||||||||
Malaysia Government Bond (Malaysia), 3.172%, 7/15/2016 |
MYR | 3,570,000 | 1,079,751 | |||||||||||
Malaysia Government Bond (Malaysia), 4.262%, 9/15/2016 |
MYR | 1,775,000 | 547,031 | |||||||||||
Mexican Government Bond (Mexico), 8.00%, 12/17/2015 |
MXN | 12,329,000 | 963,006 | |||||||||||
Mexican Government Bond (Mexico), 7.25%, 12/15/2016 |
MXN | 4,560,000 | 362,203 | |||||||||||
Mexican Government Bond (Mexico), 5.00%, 6/15/2017 |
MXN | 8,250,000 | 626,887 | |||||||||||
Mexican Government Bond (Mexico), 8.00%, 6/11/2020 |
MXN | 8,000,000 | 672,995 | |||||||||||
Mexican Government Bond (Mexico), 6.50%, 6/10/2021 |
MXN | 3,000,000 | 234,194 | |||||||||||
Mexican Government Bond (Mexico), 6.50%, 6/9/2022 |
MXN | 5,500,000 | 427,542 | |||||||||||
Mexican Government Bond (Mexico), 7.75%, 5/29/2031 |
MXN | 1,000,000 | 82,779 | |||||||||||
Province of Manitoba Canada (Canada), 4.90%, 12/6/2016 |
1,620,000 | 1,759,871 | ||||||||||||
Province of New Brunswick Canada (Canada), 5.20%, 2/21/2017 |
3,500,000 | 3,843,683 | ||||||||||||
Province of Nova Scotia Canada (Canada), 5.125%, 1/26/2017 |
1,250,000 | 1,368,304 | ||||||||||||
Province of Ontario Canada (Canada), 2.30%, 5/10/2016 |
7,315,000 | 7,503,347 | ||||||||||||
Province of Quebec Canada (Canada), 5.125%, 11/14/2016 |
6,600,000 | 7,182,127 | ||||||||||||
Russian Foreign Bond - Eurobond (Russia)4, 5.00%, 4/29/2020 |
800,000 | 824,096 | ||||||||||||
Singapore Government Bond (Singapore), 2.50%, 6/1/2019 |
SGD | 650,000 | 532,816 | |||||||||||
Spain Government Bond (Spain), 4.50%, 1/31/2018 |
EUR | 250,000 | 350,153 | |||||||||||
Spain Government Bond (Spain), 4.00%, 4/30/2020 |
EUR | 390,000 | 562,046 | |||||||||||
Spain Government Bond (Spain)4, 5.40%, 1/31/2023 |
EUR | 575,000 | 921,236 | |||||||||||
United Kingdom Gilt (United Kingdom), 2.00%, 1/22/2016 |
GBP | 650,000 | 1,057,820 | |||||||||||
United Kingdom Gilt (United Kingdom), 1.00%, 9/7/2017 |
GBP | 290,000 | 463,651 | |||||||||||
United Kingdom Gilt (United Kingdom), 5.00%, 3/7/2018 |
GBP | 365,000 | 657,703 | |||||||||||
|
|
|||||||||||||
TOTAL FOREIGN GOVERNMENT BONDS |
|
|||||||||||||
(Identified Cost $39,596,561) |
39,894,763 | |||||||||||||
|
|
|||||||||||||
MUNICIPAL BONDS - 0.2% |
|
|||||||||||||
Puerto Rico Sales Tax Financing Corp., Public Impt., Series A, Revenue Bond, 5.50%, 8/1/2022 |
500,000 | 437,950 | ||||||||||||
Puerto Rico Sales Tax Financing Corp., Public Impt., Series A, Revenue Bond, 5.50%, 8/1/2023 |
2,215,000 | 1,914,956 | ||||||||||||
|
|
|||||||||||||
TOTAL MUNICIPAL BONDS |
||||||||||||||
(Identified Cost $2,478,054) |
2,352,906 | |||||||||||||
|
|
|||||||||||||
U.S. GOVERNMENT AGENCIES - 15.2% |
||||||||||||||
Mortgage-Backed Securities - 6.5% |
||||||||||||||
Fannie Mae, Pool #888468, 5.50%, 9/1/2021 |
932,225 | 1,019,253 | ||||||||||||
Fannie Mae, Pool #995233, 5.50%, 10/1/2021 |
86,433 | 94,514 | ||||||||||||
Fannie Mae, Pool #888017, 6.00%, 11/1/2021 |
113,965 | 125,214 |
The accompanying notes are an integral part of the financial statements.
22
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT 2 |
VALUE (NOTE 2) |
||||||||
U.S. GOVERNMENT AGENCIES (continued) |
||||||||||
Mortgage-Backed Securities (continued) |
||||||||||
Fannie Mae, Pool #995329, 5.50%, 12/1/2021 |
637,165 | $ | 699,771 | |||||||
Fannie Mae, Pool #888136, 6.00%, 12/1/2021 |
144,510 | 158,840 | ||||||||
Fannie Mae, Pool #888815, 4.50%, 11/1/2022 |
104,000 | 110,363 | ||||||||
Fannie Mae, Pool #888810, 5.50%, 11/1/2022 |
1,095,351 | 1,203,162 | ||||||||
Fannie Mae, Pool #AA1563, 4.50%, 2/1/2024 |
84,451 | 91,313 | ||||||||
Fannie Mae, Pool #AC1557, 4.50%, 9/1/2024 |
218,649 | 236,482 | ||||||||
Fannie Mae, Pool #AD0462, 5.50%, 10/1/2024 |
85,456 | 94,174 | ||||||||
Fannie Mae, Pool #AO6562, 3.00%, 6/1/2027 |
265,094 | 275,767 | ||||||||
Fannie Mae, Pool #AP0000, 3.50%, 7/1/2027 |
594,755 | 629,598 | ||||||||
Fannie Mae, Pool #AB7722, 3.50%, 1/1/2028 |
406,868 | 430,319 | ||||||||
Fannie Mae, Pool #AR5986, 3.00%, 2/1/2028 |
155,052 | 161,562 | ||||||||
Fannie Mae, Pool #AB8457, 3.50%, 2/1/2028 |
719,329 | 760,790 | ||||||||
Fannie Mae, Pool #AR6002, 3.00%, 3/1/2028 |
257,627 | 268,208 | ||||||||
Fannie Mae, Pool #AR8950, 3.00%, 3/1/2028 |
371,149 | 385,881 | ||||||||
Fannie Mae, Pool #MA1423, 3.50%, 4/1/2028 |
163,848 | 173,292 | ||||||||
Fannie Mae, Pool #AT8059, 2.50%, 7/1/2028 |
1,967,496 | 2,005,206 | ||||||||
Fannie Mae, Pool #AU1270, 2.50%, 7/1/2028 |
959,680 | 978,072 | ||||||||
Fannie Mae, Pool #AU1783, 2.50%, 8/1/2028 |
1,280,625 | 1,305,172 | ||||||||
Fannie Mae, Pool #AS0945, 2.50%, 11/1/2028 |
1,556,552 | 1,586,388 | ||||||||
Fannie Mae, Pool #MA1834, 4.50%, 2/1/2034 |
1,549,988 | 1,691,950 | ||||||||
Fannie Mae, Pool #MA1903, 4.50%, 5/1/2034 |
1,686,240 | 1,840,860 | ||||||||
Fannie Mae, Pool #745147, 4.50%, 12/1/2035 |
77,667 | 84,265 | ||||||||
Fannie Mae, Pool #745418, 5.50%, 4/1/2036 |
1,308,746 | 1,463,712 | ||||||||
Fannie Mae, Pool #886904, 6.50%, 9/1/2036 |
123,362 | 140,007 | ||||||||
Fannie Mae, Pool #888021, 6.00%, 12/1/2036 |
409,031 | 463,129 | ||||||||
Fannie Mae, Pool #909786, 5.50%, 3/1/2037 |
452,159 | 504,391 | ||||||||
Fannie Mae, Pool #256673, 5.50%, 4/1/2037 |
2,593,769 | 2,897,337 | ||||||||
Fannie Mae, Pool #918516, 5.50%, 6/1/2037 |
201,339 | 224,597 | ||||||||
Fannie Mae, Pool #995050, 6.00%, 9/1/2037 |
556,592 | 631,243 | ||||||||
Fannie Mae, Pool #AB8161, 6.00%, 12/1/2037 |
1,922,698 | 2,183,706 | ||||||||
Fannie Mae, Pool #933521, 5.00%, 1/1/2038 |
46,693 | 51,694 | ||||||||
Fannie Mae, Pool #972107, 5.00%, 2/1/2038 |
96,737 | 107,581 | ||||||||
Fannie Mae, Pool #889260, 5.00%, 4/1/2038 |
61,164 | 67,714 | ||||||||
Fannie Mae, Pool #933731, 5.50%, 4/1/2038 |
1,156,265 | 1,289,834 | ||||||||
Fannie Mae, Pool #889576, 6.00%, 4/1/2038 |
1,159,539 | 1,312,468 | ||||||||
Fannie Mae, Pool #912948, 5.00%, 5/1/2038 |
146,628 | 162,331 | ||||||||
Fannie Mae, Pool #975840, 5.00%, 5/1/2038 |
144,218 | 160,518 | ||||||||
Fannie Mae, Pool #889624, 5.50%, 5/1/2038 |
1,313,258 | 1,464,963 | ||||||||
Fannie Mae, Pool #889579, 6.00%, 5/1/2038 |
1,134,080 | 1,282,865 | ||||||||
Fannie Mae, Pool #995196, 6.00%, 7/1/2038 |
1,855,935 | 2,101,336 | ||||||||
Fannie Mae, Pool #AD0119, 6.00%, 7/1/2038 |
857,666 | 969,478 | ||||||||
Fannie Mae, Pool #986458, 6.00%, 8/1/2038 |
30,771 | 34,782 | ||||||||
Fannie Mae, Pool #987831, 6.00%, 9/1/2038 |
112,067 | 126,677 | ||||||||
Fannie Mae, Pool #990897, 6.00%, 9/1/2038 |
207,927 | 235,034 | ||||||||
Fannie Mae, Pool #AD0220, 6.00%, 10/1/2038 |
211,624 | 239,759 | ||||||||
Fannie Mae, Pool #993920, 6.00%, 11/1/2038 |
127,483 | 144,103 | ||||||||
Fannie Mae, Pool #257497, 6.00%, 12/1/2038 |
68,515 | 77,447 | ||||||||
Fannie Mae, Pool #AA0675, 6.00%, 12/1/2038 |
26,109 | 29,513 | ||||||||
Fannie Mae, Pool #971022, 5.00%, 1/1/2039 |
111,018 | 122,908 | ||||||||
Fannie Mae, Pool #AA1810, 5.00%, 1/1/2039 |
154,459 | 171,001 |
The accompanying notes are an integral part of the financial statements.
23
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT 2 |
VALUE (NOTE 2) |
||||||||
U.S. GOVERNMENT AGENCIES (continued) |
||||||||||
Mortgage-Backed Securities (continued) |
||||||||||
Fannie Mae, Pool #890294, 5.50%, 1/1/2039 |
2,443,450 | $ | 2,725,749 | |||||||
Fannie Mae, Pool #AD0307, 5.50%, 1/1/2039 |
1,318,102 | 1,470,366 | ||||||||
Fannie Mae, Pool #983686, 5.00%, 2/1/2039 |
188,706 | 210,194 | ||||||||
Fannie Mae, Pool #AA7681, 4.50%, 6/1/2039 |
1,757,458 | 1,909,987 | ||||||||
Fannie Mae, Pool #AD0527, 5.50%, 6/1/2039 |
485,788 | 541,905 | ||||||||
Fannie Mae, Pool #AE0604, 6.00%, 7/1/2039 |
1,662,596 | 1,887,002 | ||||||||
Fannie Mae, Pool #AA6788, 6.00%, 8/1/2039 |
344,814 | 392,900 | ||||||||
Fannie Mae, Pool #AC0463, 5.00%, 11/1/2039 |
173,183 | 191,731 | ||||||||
Fannie Mae, Pool #AC5111, 5.00%, 11/1/2039 |
325,056 | 360,264 | ||||||||
Fannie Mae, Pool #MA0258, 4.50%, 12/1/2039 |
2,618,304 | 2,844,658 | ||||||||
Fannie Mae, Pool #MA0259, 5.00%, 12/1/2039 |
147,260 | 163,190 | ||||||||
Fannie Mae, Pool #AC8573, 5.00%, 1/1/2040 |
253,677 | 281,189 | ||||||||
Fannie Mae, Pool #890326, 5.50%, 1/1/2040 |
2,793,520 | 3,116,222 | ||||||||
Fannie Mae, Pool #AL1595, 6.00%, 1/1/2040 |
2,084,925 | 2,356,731 | ||||||||
Fannie Mae, Pool #AE0061, 6.00%, 2/1/2040 |
667,894 | 754,966 | ||||||||
Fannie Mae, Pool #AL0152, 6.00%, 6/1/2040 |
2,703,914 | 3,056,417 | ||||||||
Fannie Mae, Pool #AL2581, 6.00%, 6/1/2040 |
1,577,204 | 1,785,770 | ||||||||
Fannie Mae, Pool #890519, 6.00%, 10/1/2040 |
3,851,802 | 4,361,895 | ||||||||
Fannie Mae, Pool #AE0951, 4.50%, 2/1/2041 |
1,642,475 | 1,785,967 | ||||||||
Fannie Mae, Pool #AH9054, 4.50%, 4/1/2041 |
705,211 | 766,010 | ||||||||
Fannie Mae, Pool #AI2468, 4.50%, 5/1/2041 |
509,837 | 553,708 | ||||||||
Fannie Mae, Pool #AL0160, 4.50%, 5/1/2041 |
1,683,168 | 1,829,222 | ||||||||
Fannie Mae, Pool #AJ1415, 4.50%, 9/1/2041 |
427,482 | 463,963 | ||||||||
Fannie Mae, Pool #AL3454, 3.00%, 4/1/2043 |
1,888,585 | 1,900,468 | ||||||||
Fannie Mae, Pool #AT3045, 3.00%, 4/1/2043 |
447,338 | 450,153 | ||||||||
Fannie Mae, Pool #AB9782, 3.00%, 7/1/2043 |
1,034,079 | 1,039,941 | ||||||||
Fannie Mae, Pool #MA1489, 3.00%, 7/1/2043 |
943,837 | 945,682 | ||||||||
Freddie Mac, Pool #G11850, 5.50%, 7/1/2020 |
361,780 | 385,822 | ||||||||
Freddie Mac, Pool #G12610, 6.00%, 3/1/2022 |
139,270 | 153,137 | ||||||||
Freddie Mac, Pool #G12655, 6.00%, 5/1/2022 |
101,873 | 111,782 | ||||||||
Freddie Mac, Pool #G13078, 6.00%, 3/1/2023 |
139,447 | 154,053 | ||||||||
Freddie Mac, Pool #J22427, 3.00%, 2/1/2028 |
294,281 | 305,487 | ||||||||
Freddie Mac, Pool #G14708, 3.50%, 2/1/2028 |
416,712 | 440,708 | ||||||||
Freddie Mac, Pool #C91746, 4.50%, 12/1/2033 |
302,609 | 330,356 | ||||||||
Freddie Mac, Pool #C91754, 4.50%, 2/1/2034 |
2,005,934 | 2,187,828 | ||||||||
Freddie Mac, Pool #C91762, 4.50%, 4/1/2034 |
2,563,308 | 2,790,246 | ||||||||
Freddie Mac, Pool #G07655, 5.50%, 12/1/2035 |
338,026 | 378,649 | ||||||||
Freddie Mac, Pool #G08216, 5.50%, 8/1/2037 |
843,014 | 941,760 | ||||||||
Freddie Mac, Pool #G03332, 6.00%, 10/1/2037 |
87,215 | 98,420 | ||||||||
Freddie Mac, Pool #G03696, 5.50%, 1/1/2038 |
342,446 | 381,601 | ||||||||
Freddie Mac, Pool #G03926, 6.00%, 2/1/2038 |
1,280,482 | 1,445,165 | ||||||||
Freddie Mac, Pool #G04264, 5.50%, 4/1/2038 |
1,464,961 | 1,634,787 | ||||||||
Freddie Mac, Pool #G04731, 5.50%, 4/1/2038 |
798,633 | 891,506 | ||||||||
Freddie Mac, Pool #G04176, 5.50%, 5/1/2038 |
363,923 | 406,339 | ||||||||
Freddie Mac, Pool #A78227, 5.50%, 6/1/2038 |
369,291 | 412,267 | ||||||||
Freddie Mac, Pool #G08273, 5.50%, 6/1/2038 |
947,750 | 1,058,608 | ||||||||
Freddie Mac, Pool #G04471, 5.50%, 7/1/2038 |
128,949 | 143,884 | ||||||||
Freddie Mac, Pool #G04776, 5.50%, 7/1/2038 |
935,095 | 1,042,423 | ||||||||
Freddie Mac, Pool #G05956, 5.50%, 7/1/2038 |
1,205,196 | 1,343,209 | ||||||||
Freddie Mac, Pool #G05671, 5.50%, 8/1/2038 |
612,057 | 683,182 |
The accompanying notes are an integral part of the financial statements.
24
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES | PRINCIPAL AMOUNT 2 |
VALUE (NOTE 2) |
||||||||
U.S. GOVERNMENT AGENCIES (continued) |
||||||||||
Mortgage-Backed Securities (continued) |
||||||||||
Freddie Mac, Pool #G05196, 5.50%, 10/1/2038 |
1,221,620 | $ | 1,361,798 | |||||||
Freddie Mac, Pool #G05409, 5.50%, 3/1/2039 |
1,094,637 | 1,221,947 | ||||||||
Freddie Mac, Pool #A86522, 4.50%, 5/1/2039 |
2,600,384 | 2,816,982 | ||||||||
Freddie Mac, Pool #G06021, 5.50%, 1/1/2040 |
757,527 | 844,993 | ||||||||
Freddie Mac, Pool #G05923, 5.50%, 2/1/2040 |
653,499 | 729,466 | ||||||||
Freddie Mac, Pool #G05900, 6.00%, 3/1/2040 |
279,870 | 315,826 | ||||||||
Freddie Mac, Pool #G05906, 6.00%, 4/1/2040 |
167,617 | 189,475 | ||||||||
Freddie Mac, Pool #G07104, 5.50%, 5/1/2040 |
651,263 | 730,499 | ||||||||
Freddie Mac, Pool #G06789, 6.00%, 5/1/2040 |
793,602 | 896,196 | ||||||||
Freddie Mac, Pool #G07589, 5.50%, 6/1/2041 |
2,949,295 | 3,289,960 | ||||||||
Freddie Mac, Pool #C09026, 2.50%, 2/1/2043 |
1,943,689 | 1,873,163 | ||||||||
Freddie Mac, Pool #V80002, 2.50%, 4/1/2043 |
2,424,580 | 2,336,578 | ||||||||
Freddie Mac, Pool #Q19115, 3.00%, 6/1/2043 |
1,003,246 | 1,010,181 | ||||||||
Ginnie Mae, Pool #671161, 5.50%, 11/15/2037 |
103,883 | 115,714 | ||||||||
|
|
|||||||||
Total Mortgage-Backed Securities |
||||||||||
(Identified Cost $105,701,410) |
108,670,791 | |||||||||
|
|
|||||||||
Other Agencies - 8.7% |
||||||||||
Fannie Mae, 2.375%, 7/28/2015 |
11,500,000 | 11,687,807 | ||||||||
Fannie Mae, 0.50%, 9/28/2015 |
23,000,000 | 23,072,886 | ||||||||
Fannie Mae, 0.375%, 12/21/2015 |
14,000,000 | 14,021,924 | ||||||||
Fannie Mae, 1.375%, 11/15/2016 |
20,000,000 | 20,301,720 | ||||||||
Federal Home Loan Banks, Series 1, 0.875%, 5/24/2017 |
15,000,000 | 14,988,570 | ||||||||
Freddie Mac, 0.50%, 5/13/2016 |
7,000,000 | 7,012,124 | ||||||||
Freddie Mac, 2.00%, 8/25/2016 |
21,500,000 | 22,051,045 | ||||||||
Freddie Mac, 0.875%, 2/22/2017 |
15,000,000 | 15,050,055 | ||||||||
Freddie Mac, 1.25%, 5/12/2017 |
18,000,000 | 18,170,784 | ||||||||
|
|
|||||||||
Total Other Agencies |
||||||||||
(Identified Cost $145,641,738) |
146,356,915 | |||||||||
|
|
|||||||||
TOTAL U.S. GOVERNMENT AGENCIES |
||||||||||
(Identified Cost $251,343,148) |
255,027,706 | |||||||||
|
|
PRINCIPAL AMOUNT2 / SHARES/ CONTRACTS |
VALUE | |||||||||
U.S. GOVERNMENT SECURITIES - 4.9% |
||||||||||
U.S. Treasury Bills - 4.9% |
||||||||||
U.S. Treasury Bill7,8, 0.10%, 7/23/2015 |
52,000,000 | $ | 51,969,736 | |||||||
U.S. Treasury Bill7,8, 0.09%, 9/17/2015 |
30,000,000 | 29,977,470 | ||||||||
|
|
|||||||||
TOTAL U.S. GOVERNMENT SECURITIES |
||||||||||
(Identified Cost $81,938,247) |
81,947,206 | |||||||||
|
|
|||||||||
SHORT-TERM INVESTMENT - 3.4% |
||||||||||
Dreyfus Cash Management, Inc. - Institutional Shares9, 0.03%, |
||||||||||
(Identified Cost $57,534,570) |
57,534,570 | 57,534,570 | ||||||||
|
|
|||||||||
TOTAL INVESTMENTS - 98.2% |
||||||||||
(Identified Cost $1,582,759,649) |
1,646,608,423 | |||||||||
OTHER ASSETS, LESS LIABILITIES - 1.8% |
30,173,287 | |||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 1,676,781,710 | ||||||||
|
|
|||||||||
CALL OPTIONS WRITTEN - 0.0%## |
||||||||||
Twenty-First Century Fox, Inc. - Class A, Strike $33.00, Expiring November 22, 2014, |
||||||||||
(Premiums Received $183,098) |
1,712 | $ | (344,112 | ) | ||||||
|
|
The accompanying notes are an integral part of the financial statements.
25
Investment Portfolio - October 31, 2014
PRO-BLEND® CONSERVATIVE TERM SERIES |
CONTRACTS | VALUE | ||||||||
PUT OPTIONS WRITTEN - 0.0%## |
||||||||||
Amazon.com, Inc., Strike $260.00, Expiring November 22, 2014, |
155 | $ | (4,340 | ) | ||||||
Facebook, Inc. - Class A, Strike $66.00, Expiring November 22, 2014, |
539 | (7,546 | ) | |||||||
Google, Inc. - Class A, Strike $490.00, Expiring November 22, 2014, |
66 | (1,188 | ) | |||||||
Google, Inc. - Class C, Strike $490.00, Expiring November 22, 2014, |
66 | (1,452 | ) | |||||||
Time Warner, Inc., Strike $74.00, Expiring November 7, 2014, |
308 | (924 | ) | |||||||
|
|
|||||||||
TOTAL PUT OPTIONS WRITTEN |
(15,450 | ) | ||||||||
|
|
FUTURES CONTRACTS: LONG POSITIONS OPEN AT OCTOBER 31, 2014: | ||||||||||||||
CONTRACTS PURCHASED |
ISSUE | EXCHANGE | EXPIRATION | NOTIONAL VALUE2 | UNREALIZED APPRECIATION (DEPRECIATION) |
|||||||||
4,855 |
U.S. Treasury Notes (2 Year) | CBOT | December 2014 | 1,065,975,937 | $2,832,521 | |||||||||
538 |
U.S. Treasury Notes (5 Year) | CBOT | December 2014 | 64,253,172 | (95,906 | ) | ||||||||
112 |
U.S. Ultra Treasury Bonds | CBOT | December 2014 | 17,563,000 | 154,818 | |||||||||
1,413 |
Euro Dollar Futures | CME | June 2015 | 351,872,325 | 155,287 | |||||||||
|
|
|||||||||||||
Total |
3,046,720 | |||||||||||||
|
|
FUTURES CONTRACTS: SHORT POSITIONS OPEN AT OCTOBER 31, 2014: | ||||||||||||||
CONTRACTS SOLD |
ISSUE | EXCHANGE | EXPIRATION | NOTIONAL VALUE2 | UNREALIZED DEPRECIATION |
|||||||||
478 |
U.S. Treasury Bonds (30 Year) | CBOT | December 2014 | 67,442,812 | $ (817,655 | ) | ||||||||
557 |
U.S. Treasury Notes (10 Year) | CBOT | December 2014 | 70,382,172 | (255,785 | ) | ||||||||
192 |
Euro Dollar Futures | CME | June 2016 | 47,364,000 | (111,366 | ) | ||||||||
420 |
Euro Dollar Futures | CME | September 2016 | 103,341,000 | (258,590 | ) | ||||||||
391 |
Euro Dollar Futures | CME | December 2016 | 95,961,175 | (233,939 | ) | ||||||||
362 |
Euro Dollar Futures | CME | March 2017 | 88,653,800 | (207,585 | ) | ||||||||
423 |
Euro Dollar Futures | CME | June 2017 | 103,386,488 | (230,345 | ) | ||||||||
393 |
Euro Dollar Futures | CME | September 2017 | 95,896,913 | (205,692 | ) | ||||||||
394 |
Euro Dollar Futures | CME | December 2017 | 95,993,175 | (204,591 | ) | ||||||||
394 |
Euro Dollar Futures | CME | March 2018 | 95,879,900 | (221,985 | ) | ||||||||
200 |
Euro Dollar Futures | CME | June 2018 | 48,620,000 | (55,753 | ) | ||||||||
|
|
|||||||||||||
Total |
(2,803,286 | ) | ||||||||||||
|
|
ADR - American Depositary Receipt
AUD - Australian Dollar
BRL - Brazilian Real
CAD - Canadian Dollar
CBOT - Chicago Board of Trade
CLP - Chilean Peso
CME - Chicago Mercantile Exchange
EUR - Euro
GBP - British Pound
The accompanying notes are an integral part of the financial statements.
26
Investment Portfolio - October 31, 2014
IDR - Indonesian Rupiah
IO - Interest only
JPY - Japanese Yen
KRW - South Korean Won
MXN - Mexican Peso
MYR - Malaysian Ringgit
SGD - Singapore Dollar
*Non-income producing security.
##Less than 0.1%.
1 A factor from a third party vendor was applied to determine the securitys fair value following the close of local trading.
2 Amount is stated in USD unless otherwise noted.
3 The rate shown is a fixed rate as of October 31, 2014; the rate becomes floating, based on LIBOR plus a spread, at dates ranging from 2015 to 2022.
4 Restricted securities - Investment in securities that are restricted as to public resale under the Securities Act of 1933, as amended. These securities have been sold under Rule 144A and have been determined to be liquid. These securities amount to $132,290,305 or 7.9%, of the Series net assets as of October 31, 2014 (see Note 2 to the financial statements).
5 The coupon rate is floating and is the effective rate as of October 31, 2014.
6 Represents a Payment-In-Kind bond.
7 All or a portion of security has been pledged in connection with outstanding futures contracts.
8 Represents the annualized yield at time of purchase.
9 Rate shown is the current yield as of October 31, 2014.
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard & Poors, a division of The McGraw-Hill Companies, Inc. (S&P), and is licensed for use by Manning & Napier when referencing GICS sectors. Neither MSCI, S&P, nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification, nor shall any such party have any liability therefrom.
The accompanying notes are an integral part of the financial statements.
27
Statement of Assets and Liabilities - Pro-Blend® Conservative Term Series
October 31, 2014
ASSETS: |
||||
Investments, at value (identified cost $1,582,759,649) (Note 2) |
$ | 1,646,608,423 | ||
Deposits at broker for futures contracts |
26,919,553 | |||
Interest receivable |
8,306,852 | |||
Receivable for fund shares sold |
1,465,230 | |||
Variation margin receivable on futures contracts |
181,950 | |||
Receivable for securities sold |
501,721 | |||
Dividends receivable |
415,368 | |||
Foreign tax reclaims receivable |
142,767 | |||
|
|
|||
TOTAL ASSETS |
1,684,541,864 | |||
|
|
|||
LIABILITIES: |
||||
Options written, at value (premiums received $265,822) (Note 2) |
359,562 | |||
Accrued foreign capital gains tax (Note 2) |
1,073 | |||
Accrued management fees (Note 3) |
843,223 | |||
Accrued shareholder services fees (Class S) (Note 3) |
188,434 | |||
Accrued distribution and service (Rule 12b-1) fees (Class C) (Class R) (Note 3) |
139,552 | |||
Accrued fund accounting and administration fees (Note 3) |
85,536 | |||
Accrued transfer agent fees (Note 3) |
64,502 | |||
Accrued Chief Compliance Officer service fees (Note 3) |
407 | |||
Payable for securities purchased |
3,053,207 | |||
Payable for fund shares repurchased |
2,874,493 | |||
Other payables and accrued expenses |
150,165 | |||
|
|
|||
TOTAL LIABILITIES |
7,760,154 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 1,676,781,710 | ||
|
|
|||
NET ASSETS CONSIST OF: |
||||
Capital stock |
$ | 1,297,420 | ||
Additional paid-in-capital |
1,521,254,908 | |||
Undistributed net investment income |
10,262,929 | |||
Accumulated net realized gain on investments, foreign currency and translation of other assets and liabilities |
79,986,463 | |||
Net unrealized appreciation on investments (net of foreign capital gains tax of $1,073), foreign currency and translation of other assets and liabilities |
63,979,990 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 1,676,781,710 | ||
|
|
The accompanying notes are an integral part of the financial statements.
28
Statement of Assets and Liabilities - Pro-Blend® Conservative Term Series
October 31, 2014
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class S |
$ | 14.13 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class I |
$ | 11.17 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class C |
$ | 10.75 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class R |
$ | 10.75 | ||
|
|
The accompanying notes are an integral part of the financial statements.
29
Statement of Operations - Pro-Blend® Conservative Term Series
For the Year Ended October 31, 2014
INVESTMENT INCOME: |
||||
Interest |
$ | 27,524,931 | ||
Dividends (net of foreign taxes withheld, $337,635) |
11,201,001 | |||
|
|
|||
Total Investment Income |
38,725,932 | |||
|
|
|||
EXPENSES: |
||||
Management fees (Note 3) |
9,514,992 | |||
Shareholder services fees (Class S) (Note 3) |
2,149,869 | |||
Distribution and service (Rule 12b-1) fees (Class C) (Note 3) |
1,202,531 | |||
Fund accounting and administration fees (Note 3) |
300,318 | |||
Transfer agent fees (Note 3) |
276,371 | |||
Distribution and service (Rule 12b-1) fees (Class R) (Note 3) |
269,522 | |||
Directors fees (Note 3) |
51,489 | |||
Chief Compliance Officer service fees (Note 3) |
3,161 | |||
Custodian fees |
110,924 | |||
Miscellaneous |
407,042 | |||
|
|
|||
Total Expenses |
14,286,219 | |||
|
|
|||
NET INVESTMENT INCOME |
24,439,713 | |||
|
|
|||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: |
||||
Net realized gain (loss) on- |
||||
Investments |
85,792,628 | |||
Futures contracts |
(2,325,295 | ) | ||
Options written |
(283,161 | ) | ||
Foreign currency and translation of other assets and liabilities |
50,447 | |||
|
|
|||
83,234,619 | ||||
|
|
|||
Net change in unrealized appreciation (depreciation) on- |
||||
Investments (net of increase in accrued foreign capital gains tax of $848) |
(27,013,114 | ) | ||
Futures contracts |
243,434 | |||
Options written |
(93,740 | ) | ||
Foreign currency and translation of other assets and liabilities |
(29,564 | ) | ||
|
|
|||
(26,892,984 | ) | |||
|
|
|||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY |
56,341,635 | |||
|
|
|||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 80,781,348 | ||
|
|
The accompanying notes are an integral part of the financial statements.
30
Statements of Changes in Net Assets - Pro-Blend® Conservative Term Series
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||
OPERATIONS: |
||||||||
Net investment income |
$ | 24,439,713 | $ | 22,896,535 | ||||
Net realized gain on investments and foreign currency |
83,234,619 | 67,072,988 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency |
(26,892,984 | ) | 19,753,308 | |||||
|
|
|
|
|||||
Net increase from operations |
80,781,348 | 109,722,831 | ||||||
|
|
|
|
|||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||
From net investment income (Class S) |
(14,549,144 | ) | (14,804,570 | ) | ||||
From net investment income (Class I) |
(6,447,289 | ) | (5,357,086 | ) | ||||
From net investment income (Class C) |
(1,252,553 | ) | (974,500 | ) | ||||
From net investment income (Class R) |
(816,034 | ) | (608,022 | ) | ||||
From net realized gain on investments (Class S) |
(42,636,482 | ) | (21,212,380 | ) | ||||
From net realized gain on investments (Class I) |
(16,448,458 | ) | (6,649,603 | ) | ||||
From net realized gain on investments (Class C) |
(5,631,048 | ) | (2,048,612 | ) | ||||
From net realized gain on investments (Class R) |
(2,517,150 | ) | (927,955 | ) | ||||
|
|
|
|
|||||
Total distributions to shareholders |
(90,298,158 | ) | (52,582,728 | ) | ||||
|
|
|
|
|||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||
Net increase from capital share transactions (Note 5) |
189,841,532 | 110,559,153 | ||||||
|
|
|
|
|||||
Net increase in net assets |
180,324,722 | 167,699,256 | ||||||
NET ASSETS: |
||||||||
Beginning of year |
1,496,456,988 | 1,328,757,732 | ||||||
|
|
|
|
|||||
End of year (including undistributed net investment income of $10,262,929 and $9,120,712,respectively) |
$ | 1,676,781,710 | $ | 1,496,456,988 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
31
Financial Highlights - Pro-Blend® Conservative Term Series - Class S
FOR THE YEARS ENDED | ||||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 14.18 | $ | 13.62 | $ | 13.16 | $ | 13.37 | $ | 12.21 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1 |
0.22 | 0.22 | 0.22 | 0.25 | 0.29 | |||||||||||||||
Net realized and unrealized gain on investments |
0.52 | 0.83 | 0.69 | 0.12 | 1.07 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.74 | 1.05 | 0.91 | 0.37 | 1.36 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.20 | ) | (0.20 | ) | (0.24 | ) | (0.24 | ) | (0.20 | ) | ||||||||||
From net realized gain on investments |
(0.59 | ) | (0.29 | ) | (0.21 | ) | (0.34 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.79 | ) | (0.49 | ) | (0.45 | ) | (0.58 | ) | (0.20 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 14.13 | $ | 14.18 | $ | 13.62 | $ | 13.16 | $ | 13.37 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 1,124,851 | $ | 1,027,160 | $ | 973,964 | $ | 870,693 | $ | 683,681 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return2 |
5.46 | % | 7.93 | % | 7.15 | % | 2.87 | % | 11.26 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.87 | % | 0.87 | % | 0.88 | % | 0.89 | % | 0.90 | % | ||||||||||
Net investment income |
1.57 | % | 1.58 | % | 1.65 | % | 1.87 | % | 2.28 | % | ||||||||||
Series portfolio turnover |
45 | % | 54 | % | 54 | % | 25 | % | 42 | % | ||||||||||
*The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
N/A | N/A | N/A | N/A | 0.00 | %3 |
1Calculated based on average shares outstanding during the years.
2Represents aggregate total return for the year indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived during certain years.
3Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
32
Financial Highlights - Pro-Blend® Conservative Term Series - Class I
FOR THE YEARS ENDED | ||||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 11.38 | $ | 11.03 | $ | 10.75 | $ | 11.03 | $ | 10.11 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1 |
0.20 | 0.20 | 0.20 | 0.22 | 0.26 | |||||||||||||||
Net realized and unrealized gain on investments |
0.40 | 0.66 | 0.55 | 0.10 | 0.88 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.60 | 0.86 | 0.75 | 0.32 | 1.14 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.22 | ) | (0.22 | ) | (0.26 | ) | (0.26 | ) | (0.22 | ) | ||||||||||
From net realized gain on investments |
(0.59 | ) | (0.29 | ) | (0.21 | ) | (0.34 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.81 | ) | (0.51 | ) | (0.47 | ) | (0.60 | ) | (0.22 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 11.17 | $ | 11.38 | $ | 11.03 | $ | 10.75 | $ | 11.03 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 353,538 | $ | 318,106 | $ | 249,566 | $ | 181,345 | $ | 139,399 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return2 |
5.66 | % | 8.15 | % | 7.34 | % | 3.07 | % | 11.49 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.67 | % | 0.67 | % | 0.68 | % | 0.69 | % | 0.70 | % | ||||||||||
Net investment income |
1.77 | % | 1.77 | % | 1.84 | % | 2.07 | % | 2.48 | % | ||||||||||
Series portfolio turnover |
45 | % | 54 | % | 54 | % | 25 | % | 42 | % | ||||||||||
*The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
N/A | N/A | N/A | N/A | 0.00 | %3 |
1Calculated based on average shares outstanding during the years.
2Represents aggregate total return for the year indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived during certain years.
3Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
33
Financial Highlights - Pro-Blend® Conservative Term Series - Class C
FOR THE YEARS ENDED |
FOR THE PERIOD 1/4/101 TO 10/31/10 |
|||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | |||||||||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||||||||||
Net asset value - Beginning of period |
$ | 10.99 | $ | 10.68 | $ | 10.42 | $ | 10.73 | $ | 10.00 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income2 |
0.08 | 0.08 | 0.09 | 0.11 | 0.12 | |||||||||||||||
Net realized and unrealized gain on investments |
0.39 | 0.65 | 0.55 | 0.10 | 0.68 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.47 | 0.73 | 0.64 | 0.21 | 0.80 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.12 | ) | (0.13 | ) | (0.17 | ) | (0.18 | ) | (0.07 | ) | ||||||||||
From net realized gain on investments |
(0.59 | ) | (0.29 | ) | (0.21 | ) | (0.34 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.71 | ) | (0.42 | ) | (0.38 | ) | (0.52 | ) | (0.07 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of period |
$ | 10.75 | $ | 10.99 | $ | 10.68 | $ | 10.42 | $ | 10.73 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of period (000s omitted) |
$ | 139,291 | $ | 102,919 | $ | 72,239 | $ | 42,898 | $ | 17,514 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
4.58 | % | 7.06 | % | 6.42 | % | 2.06 | % | 8.03 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
1.67 | % | 1.67 | % | 1.69 | % | 1.69 | % | 1.70 | %4 | ||||||||||
Net investment income |
0.77 | % | 0.78 | % | 0.84 | % | 1.03 | % | 1.43 | %4 | ||||||||||
Series portfolio turnover |
45 | % | 54 | % | 54 | % | 25 | % | 42 | % | ||||||||||
* The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: |
| |||||||||||||||||||
N/A | N/A | N/A | N/A | 0.00 | %4,5 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Represents aggregate total return for the periods indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during the periods. Periods less than one year are not annualized.
4Annualized.
5Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
34
Financial Highlights - Pro-Blend® Conservative Term Series - Class R
FOR THE YEARS ENDED |
FOR THE PERIOD 6/30/101 TO 10/31/10 |
|||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | |||||||||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||||||||||
Net asset value - Beginning of period |
$ | 10.99 | $ | 10.67 | $ | 10.44 | $ | 10.76 | $ | 10.00 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income2 |
0.14 | 0.14 | 0.14 | 0.13 | 0.05 | |||||||||||||||
Net realized and unrealized gain on investments |
0.38 | 0.64 | 0.54 | 0.13 | 0.71 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.52 | 0.78 | 0.68 | 0.26 | 0.76 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.17 | ) | (0.17 | ) | (0.24 | ) | (0.24 | ) | | |||||||||||
From net realized gain on investments |
(0.59 | ) | (0.29 | ) | (0.21 | ) | (0.34 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.76 | ) | (0.46 | ) | (0.45 | ) | (0.58 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of period |
$ | 10.75 | $ | 10.99 | $ | 10.67 | $ | 10.44 | $ | 10.76 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of period (000s omitted) |
$ | 59,101 | $ | 48,272 | $ | 32,988 | $ | 2,828 | $ | 1 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
5.08 | % | 7.64 | % | 6.85 | % | 2.61 | % | 7.60 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses |
1.17 | % | 1.17 | % | 1.19 | % | 1.19 | % | 1.20 | %4 | ||||||||||
Net investment income |
1.27 | % | 1.28 | % | 1.32 | % | 1.31 | % | 1.51 | %4 | ||||||||||
Series portfolio turnover |
45 | % | 54 | % | 54 | % | 25 | % | 42 | % |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Represents aggregate total return for the periods indicated, and assumes reinvestment of all distributions. Periods less than one year are not annualized.
4Annualized.
The accompanying notes are an integral part of the financial statements.
35
Performance Update - Pro-Blend® Moderate Term Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 | ||||||||||||||||
ONE YEAR1 |
FIVE YEAR |
TEN YEAR |
SINCE INCEPTION2 |
|||||||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Moderate Term |
5.47 | % | 8.30 | % | 6.62 | % | 7.16 | % | ||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Moderate Term |
5.73 | % | 8.56 | % | 6.79 | % | 7.24 | % | ||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Moderate Term |
4.69 | % | 7.50 | % | 5.85 | % | 6.43 | % | ||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Moderate Term |
5.24 | % | 7.98 | % | 6.35 | % | 6.95 | % | ||||||||
Barclays U.S. Aggregate Bond Index6 |
4.14 | % | 4.22 | % | 4.64 | % | 5.69 | % | ||||||||
30/10/60 Blended Index7 |
7.27 | % | 8.42 | % | 6.36 | % | 7.15 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Pro-Blend® Moderate Term Series - Class S for the ten years ended October 31, 2014 to the Barclays U.S. Aggregate Bond Index and the 30/10/60 Blended Index.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from September 15, 1993, the Class S inception date. The Barclays U.S. Aggregate Bond Index only publishes month-end numbers; therefore, performance numbers for the Indices are calculated from September 30, 1993.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 1.06% for Class S, 0.81% for Class I, 1.81% for Class C and 1.31% for Class R. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 1.06% for Class S, 0.81% for Class I, 1.81% for Class C and 1.31% for Class R for the year ended October 31, 2014.
4For the periods through the inception of Class I on March 28, 2008, performance is based on the hypothetical performance of Class S shares. Because Class I shares invest in the same portfolio of securities as Class S, performance will only be different to the extent that the Class S shares have a higher expense ratio.
5For periods through the inception of Class C on January 4, 2010 and Class R on June 30, 2010, the performance figures are hypothetical and reflect the performance of the Manning & Napier Fund, Inc. - Pro-Blend® Moderate Term Series - Class S adjusted for expense differences.
6The Barclays U.S. Aggregate Bond Index is an unmanaged, market-value weighted index of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more. Index returns do not reflect any fees or expenses. Index returns provided by Interactive Data.
36
Performance Update - Pro-Blend® Moderate Term Series
(unaudited)
7The 30/10/60 Blended Index is represented by 30% Russell 3000® Index (Russell 3000), 10% MSCI ACWI ex USA Index (ACWIxUS), and 60% Barclays U.S. Aggregate Bond Index (BAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns assume daily investment of gross dividends (which do not account for applicable dividend taxation) prior to 12/31/1998, as net returns were not available. Subsequent to 12/31/1998, the Index returns are net of withholding taxes. They assume daily reinvestment of net dividends, thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB is an unmanaged index that represents the U.S. domestic investment-grade bond market. It is a market value-weighted index of investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities of one year or more. Index returns provided by Interactive Data. The returns of the indices do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the Series asset allocation will vary over time, the composition of the Series portfolio may not match the composition of the comparative Indices.
37
Shareholder Expense Example - Pro-Blend® Moderate Term Series
(unaudited)
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/14* |
ANNUALIZED EXPENSE RATIO | |||||
Class S |
||||||||
Actual |
$1,000.00 | $1,006.90 | $5.36 | 1.06% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,019.86 | $5.40 | 1.06% | ||||
Class I |
||||||||
Actual |
$1,000.00 | $1,008.30 | $4.10 | 0.81% | ||||
Hypothetical |
||||||||
(5% return before expenses) |
$1,000.00 | $1,021.12 | $4.13 | 0.81% | ||||
Class C |
||||||||
Actual |
$1,000.00 | $1,003.40 | $9.14 | 1.81% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,016.08 | $9.20 | 1.81% | ||||
Class R |
||||||||
Actual |
$1,000.00 | $1,005.90 | $6.62 | 1.31% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,018.60 | $6.67 | 1.31% |
* Expenses are equal to the Class annualized expense ratio (for the six-month period), multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period. Expenses are based on the most recent fiscal half year; therefore, the expense ratios stated above may differ from the expense ratios stated in the financial highlights, which are based on one-year data.
38
Portfolio Composition - Pro-Blend® Moderate Term Series
As of October 31, 2014 (unaudited)
39
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS - 47.5% |
||||||||||
Consumer Discretionary - 12.2% |
||||||||||
Auto Components - 0.1% |
||||||||||
F.C.C. Co. Ltd. (Japan)1 |
8,700 | $ | 148,064 | |||||||
Halla Holdings Corp. (South Korea)1 |
1,488 | 98,392 | ||||||||
Hankook Tire Co. Ltd. (South Korea)1 |
10,712 | 551,923 | ||||||||
Mando Corp. (South Korea)*1 |
1,622 | 305,814 | ||||||||
Musashi Seimitsu Industry Co. Ltd. (Japan)1 |
9,200 | 180,613 | ||||||||
Nissin Kogyo Co. Ltd. (Japan)1 |
12,500 | 193,192 | ||||||||
|
|
|||||||||
1,477,998 | ||||||||||
|
|
|||||||||
Automobiles - 0.0%## |
||||||||||
Hyundai Motor Co. (South Korea)1 |
1,450 | 230,088 | ||||||||
Toyota Motor Corp. (Japan)1 |
2,500 | 150,443 | ||||||||
|
|
|||||||||
380,531 | ||||||||||
|
|
|||||||||
Diversified Consumer Services - 0.5% |
||||||||||
Apollo Education Group, Inc.* |
282,900 | 8,107,914 | ||||||||
Kroton Educacional S.A. (Brazil) |
137,432 | 979,478 | ||||||||
|
|
|||||||||
9,087,392 | ||||||||||
|
|
|||||||||
Hotels, Restaurants & Leisure - 0.6% |
||||||||||
Accor S.A. (France)1 |
20,080 | 843,606 | ||||||||
Arcos Dorados Holdings, Inc. - Class A (Argentina) |
27,720 | 170,755 | ||||||||
Darden Restaurants, Inc. |
13,650 | 706,797 | ||||||||
Hyatt Hotels Corp. - Class A* |
8,890 | 526,466 | ||||||||
Whistler Blackcomb Holdings, Inc. (Canada) |
8,460 | 142,845 | ||||||||
Whitbread plc (United Kingdom)1 |
9,640 | 673,842 | ||||||||
Yum! Brands, Inc. |
89,250 | 6,410,827 | ||||||||
|
|
|||||||||
9,475,138 | ||||||||||
|
|
|||||||||
Household Durables - 0.9% |
||||||||||
DR Horton, Inc. |
217,510 | 4,957,053 | ||||||||
Lennar Corp. - Class A |
100,450 | 4,327,386 | ||||||||
LG Electronics, Inc. (South Korea)1 |
9,200 | 561,859 | ||||||||
Nikon Corp. (Japan)1 |
29,700 | 406,939 | ||||||||
PulteGroup, Inc. |
21,460 | 411,817 | ||||||||
Toll Brothers, Inc.* |
130,990 | 4,185,131 | ||||||||
TRI Pointe Homes, Inc.* |
18,490 | 253,128 | ||||||||
WCI Communities, Inc.* |
7,200 | 135,072 | ||||||||
|
|
|||||||||
15,238,385 | ||||||||||
|
|
|||||||||
Internet & Catalog Retail - 1.8% |
||||||||||
Amazon.com, Inc.* |
28,390 | 8,672,009 | ||||||||
ASOS plc (United Kingdom)*1 |
16,320 | 695,892 | ||||||||
Expedia, Inc. |
9,550 | 811,463 | ||||||||
Groupon, Inc.* |
266,830 | 1,950,527 | ||||||||
MakeMyTrip Ltd. (India)* |
8,790 | 264,887 | ||||||||
Ocado Group plc (United Kingdom)*1 |
23,940 | 95,363 | ||||||||
The Priceline Group, Inc.* |
8,230 | 9,927,108 | ||||||||
Rakuten, Inc. (Japan)1 |
57,760 | 651,329 | ||||||||
TripAdvisor, Inc.* |
84,590 | 7,499,749 | ||||||||
|
|
|||||||||
30,568,327 | ||||||||||
|
|
|||||||||
Media - 7.1% |
||||||||||
AMC Networks, Inc. - Class A* |
275,750 | 16,724,237 | ||||||||
British Sky Broadcasting Group plc (United Kingdom)1 |
37,710 | 534,433 | ||||||||
Discovery Communications, Inc. - Class A* |
32,340 | 1,143,219 | ||||||||
Gannett Co., Inc. |
363,460 | 11,448,990 | ||||||||
Global Mediacom Tbk PT (Indonesia)1 |
985,150 | 159,890 | ||||||||
ITV plc (United Kingdom)1 |
29,440 | 95,641 | ||||||||
Lamar Advertising Co. - Class A |
8,950 | 462,267 | ||||||||
Liberty Global plc - Class A - ADR (United Kingdom)* |
125,140 | 5,690,116 | ||||||||
Liberty Global plc - Class C - ADR (United Kingdom)* |
126,980 | 5,646,801 | ||||||||
Mediaset Espana Comunicacion S.A. (Spain)*1 |
92,180 | 1,157,258 | ||||||||
Modern Times Group AB - Class B (Sweden)1 |
2,840 | 87,801 | ||||||||
Morningstar, Inc. |
14,020 | 956,865 | ||||||||
Nexstar Broadcasting Group, Inc. - Class A |
97,179 | 4,384,716 | ||||||||
ProSiebenSat.1 Media AG (Germany)1 |
2,430 | 98,163 | ||||||||
Reed Elsevier plc - ADR (United Kingdom) |
4,434 | 291,491 | ||||||||
Sinclair Broadcast Group, Inc. - Class A |
332,701 | 9,664,964 | ||||||||
Societe Television Francaise 1 (France)1 |
27,737 | 413,518 | ||||||||
Starz - Class A* |
343,880 | 10,625,892 | ||||||||
Time Warner, Inc. |
51,600 | 4,100,652 | ||||||||
Tribune Media Co. - Class A* |
90,596 | 6,069,932 | ||||||||
Twenty-First Century Fox, Inc. - Class A |
728,030 | 25,102,474 | ||||||||
Viacom, Inc. - Class B |
205,090 | 14,905,941 | ||||||||
World Wrestling Entertainment, Inc. - Class A |
148,370 | 1,832,369 | ||||||||
|
|
|||||||||
121,597,630 | ||||||||||
|
|
|||||||||
Multiline Retail - 0.0%## |
||||||||||
Marks & Spencer Group plc (United Kingdom)1 |
28,790 | 187,474 | ||||||||
|
|
|||||||||
Specialty Retail - 0.4% |
||||||||||
American Eagle Outfitters, Inc. |
102,470 | 1,318,789 | ||||||||
Belle International Holdings Ltd. (Hong Kong)1 |
691,900 | 880,460 | ||||||||
China ZhengTong Auto Services Holdings Ltd. (China)1 |
549,000 | 311,009 | ||||||||
Dicks Sporting Goods, Inc. |
36,250 | 1,644,663 |
The accompanying notes are an integral part of the financial statements.
40
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Consumer Discretionary (continued) |
||||||||||
Specialty Retail (continued) |
||||||||||
Groupe Fnac S.A. (France)*1 |
203 | $ | 8,553 | |||||||
Hennes & Mauritz AB - Class B (Sweden)1 |
6,690 | 266,928 | ||||||||
Kingfisher plc (United Kingdom)1 |
287,910 | 1,394,764 | ||||||||
Komeri Co. Ltd. (Japan)1 |
19,900 | 447,343 | ||||||||
Sa Sa International Holdings Ltd. (Hong Kong)1 |
680,000 | 470,125 | ||||||||
|
|
|||||||||
6,742,634 | ||||||||||
|
|
|||||||||
Textiles, Apparel & Luxury Goods - 0.8% |
||||||||||
Adidas AG (Germany)1 |
3,880 | 282,720 | ||||||||
Daphne International Holdings Ltd. (China)1 |
560,000 | 281,899 | ||||||||
Gildan Activewear, Inc. (Canada) |
18,860 | 1,124,622 | ||||||||
Kering (France)1 |
1,625 | 313,600 | ||||||||
lululemon athletica, Inc.* |
259,530 | 10,809,425 | ||||||||
|
|
|||||||||
12,812,266 | ||||||||||
|
|
|||||||||
Total Consumer Discretionary |
207,567,775 | |||||||||
|
|
|||||||||
Consumer Staples - 4.8% |
||||||||||
Beverages - 2.0% |
||||||||||
AMBEV S.A. - ADR (Brazil)* |
1,016,170 | 6,788,016 | ||||||||
Anheuser-Busch InBev N.V. (Belgium)1 |
116,670 | 12,938,035 | ||||||||
Carlsberg A/S - Class B (Denmark)1 |
6,320 | 557,416 | ||||||||
Cia Cervecerias Unidas S.A. - ADR (Chile) |
17,520 | 373,351 | ||||||||
Diageo plc (United Kingdom)1 |
369,220 | 10,889,133 | ||||||||
Monster Beverage Corp.* |
9,930 | 1,001,738 | ||||||||
Remy Cointreau S.A. (France)1 |
1,270 | 90,382 | ||||||||
SABMiller plc (United Kingdom)1 |
8,030 | 454,199 | ||||||||
Treasury Wine Estates Ltd. (Australia)1 |
139,449 | 569,367 | ||||||||
Tsingtao Brewery Co. Ltd. - Class H (China)1 |
66,000 | 487,884 | ||||||||
|
|
|||||||||
34,149,521 | ||||||||||
|
|
|||||||||
Food & Staples Retailing - 0.4% |
||||||||||
Carrefour S.A. (France)1 |
22,767 | 667,307 | ||||||||
Casino Guichard-Perrachon S.A. (France)1 |
2,420 | 248,130 | ||||||||
Dairy Farm International Holdings Ltd. (Hong Kong)1 |
38,700 | 371,520 | ||||||||
Tesco plc (United Kingdom)1 |
1,500,575 | 4,165,563 | ||||||||
Wal-Mart de Mexico S.A.B. de C.V. - Class V (Mexico) |
162,600 | 377,091 | ||||||||
|
|
|||||||||
5,829,611 | ||||||||||
|
|
|||||||||
Food Products - 1.5% |
||||||||||
Biostime International Holdings Ltd. (China)1 |
91,000 | 206,051 | ||||||||
Charoen Pokphand Foods PCL (Thailand)1 |
954,390 | 916,074 | ||||||||
Danone S.A. (France)1 |
11,770 | 804,273 | ||||||||
Dean Foods Co. |
74,620 | 1,097,660 | ||||||||
Grupo Bimbo S.A.B. de C.V. - Class A (Mexico) |
138,570 | 407,491 | ||||||||
Ingredion, Inc. |
3,320 | 256,470 | ||||||||
Keurig Green Mountain, Inc. |
10,770 | 1,634,347 | ||||||||
M Dias Branco S.A. (Brazil) |
5,100 | 198,328 | ||||||||
Nestle S.A. (Switzerland)1 |
165,140 | 12,110,400 | ||||||||
Tiger Brands Ltd. (South Africa)1 |
9,610 | 289,250 | ||||||||
Unilever plc - ADR (United Kingdom) |
207,379 | 8,342,857 | ||||||||
|
|
|||||||||
26,263,201 | ||||||||||
|
|
|||||||||
Household Products - 0.2% |
||||||||||
Energizer Holdings, Inc. |
25,100 | 3,078,515 | ||||||||
Reckitt Benckiser Group plc (United Kingdom)1 |
5,120 | 431,222 | ||||||||
|
|
|||||||||
3,509,737 | ||||||||||
|
|
|||||||||
Personal Products - 0.0%## |
||||||||||
Beiersdorf AG (Germany)1 |
2,270 | 184,049 | ||||||||
Natura Cosmeticos S.A. (Brazil) |
19,280 | 280,108 | ||||||||
|
|
|||||||||
464,157 | ||||||||||
|
|
|||||||||
Tobacco - 0.7% |
||||||||||
Gudang Garam Tbk PT (Indonesia)1 |
84,800 | 405,807 | ||||||||
Imperial Tobacco Group plc (United Kingdom)1 |
258,100 | 11,212,292 | ||||||||
Swedish Match AB (Sweden)1 |
13,510 | 439,305 | ||||||||
|
|
|||||||||
12,057,404 | ||||||||||
|
|
|||||||||
Total Consumer Staples |
82,273,631 | |||||||||
|
|
|||||||||
Energy - 6.0% |
||||||||||
Energy Equipment & Services - 3.0% |
||||||||||
Baker Hughes, Inc. |
221,370 | 11,723,755 | ||||||||
Cameron International Corp.* |
218,980 | 13,040,259 | ||||||||
CGG S.A. (France)*1 |
11,858 | 68,509 | ||||||||
Core Laboratories N.V. - ADR |
1,290 | 179,994 | ||||||||
Oceaneering International, Inc. |
1,870 | 131,405 | ||||||||
Petroleum Geo-Services ASA (Norway)1 |
16,820 | 83,542 | ||||||||
Saipem S.p.A. (Italy)*1 |
17,540 | 274,588 | ||||||||
Schlumberger Ltd. |
149,195 | 14,719,579 | ||||||||
Spectrum ASA (Norway)1 |
19,960 | 93,923 | ||||||||
SPT Energy Group, Inc. (China)1 |
320,000 | 100,815 | ||||||||
TGS Nopec Geophysical Co. ASA (Norway)1 |
24,460 | 570,598 | ||||||||
Trican Well Service Ltd. (Canada) |
12,780 | 114,527 | ||||||||
Weatherford International plc - ADR* |
645,920 | 10,606,006 | ||||||||
|
|
|||||||||
51,707,500 | ||||||||||
|
|
The accompanying notes are an integral part of the financial statements.
41
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Energy (continued) |
||||||||||
Oil, Gas & Consumable Fuels - 3.0% |
||||||||||
Apache Corp. |
44,770 | $ | 3,456,244 | |||||||
Cameco Corp. (Canada) |
94,020 | 1,634,068 | ||||||||
Cloud Peak Energy, Inc.* |
99,930 | 1,196,162 | ||||||||
Cosan S.A. Industria e Comercio (Brazil) |
8,040 | 112,234 | ||||||||
Encana Corp. (Canada) |
30,126 | 561,247 | ||||||||
EOG Resources, Inc. |
31,577 | 3,001,394 | ||||||||
Hess Corp. |
266,920 | 22,637,485 | ||||||||
Koninklijke Vopak N.V. (Netherlands)1 |
7,090 | 355,558 | ||||||||
Pacific Rubiales Energy Corp. (Colombia) |
23,960 | 361,404 | ||||||||
Peabody Energy Corp. |
1,018,965 | 10,627,805 | ||||||||
Petroleo Brasileiro S.A. - ADR (Brazil) |
39,190 | 479,294 | ||||||||
Range Resources Corp. |
74,420 | 5,090,328 | ||||||||
Royal Dutch Shell plc - Class B (Netherlands)1 |
18,152 | 670,630 | ||||||||
Talisman Energy, Inc. (Canada) |
106,646 | 680,347 | ||||||||
Whitehaven Coal Ltd. (Australia)*1 |
66,490 | 89,172 | ||||||||
|
|
|||||||||
50,953,372 | ||||||||||
|
|
|||||||||
Total Energy |
102,660,872 | |||||||||
|
|
|||||||||
Financials - 4.8% |
||||||||||
Banks - 1.3% |
||||||||||
Hong Leong Financial Group Berhad (Malaysia)1 |
117,900 | 648,738 | ||||||||
HSBC Holdings plc (United Kingdom)1 |
1,198,320 | 12,217,254 | ||||||||
ICICI Bank Ltd. - ADR (India) |
7,650 | 431,154 | ||||||||
Popular, Inc.* |
243,780 | 7,771,706 | ||||||||
Sumitomo Mitsui Trust Holdings, Inc. (Japan)1 |
106,000 | 432,769 | ||||||||
Synovus Financial Corp. |
30,602 | 776,067 | ||||||||
|
|
|||||||||
22,277,688 | ||||||||||
|
|
|||||||||
Capital Markets - 0.1% |
||||||||||
CETIP S.A. - Mercados Organizados (Brazil) |
10,840 | 137,365 | ||||||||
Daiwa Securities Group, Inc. (Japan)1 |
46,000 | 363,536 | ||||||||
Financial Engines, Inc. |
35,160 | 1,401,829 | ||||||||
|
|
|||||||||
1,902,730 | ||||||||||
|
|
|||||||||
Consumer Finance - 0.1% |
||||||||||
SLM Corp. |
131,220 | 1,253,151 | ||||||||
|
|
|||||||||
Diversified Financial Services - 0.1% |
||||||||||
Berkshire Hathaway, Inc. - Class B* |
1,000 | 140,160 | ||||||||
JSE Ltd. (South Africa)1 |
40,370 | 393,095 | ||||||||
MSCI, Inc. |
29,710 | 1,386,269 | ||||||||
|
|
|||||||||
1,919,524 | ||||||||||
|
|
|||||||||
Insurance - 0.1% |
||||||||||
Admiral Group plc (United Kingdom)1 |
20,510 | 438,854 | ||||||||
Brasil Insurance Participacoes e Administracao S.A. (Brazil) |
57,370 | 172,487 | ||||||||
Mapfre S.A. (Spain)1 |
204,600 | 701,584 | ||||||||
Zurich Insurance Group AG (Switzerland)1 |
1,580 | 478,153 | ||||||||
|
|
|||||||||
1,791,078 | ||||||||||
|
|
|||||||||
Real Estate Investment Trusts (REITS) - 2.5% |
||||||||||
Agree Realty Corp. |
18,290 | 559,857 | ||||||||
Alexandria Real Estate Equities, Inc. |
6,720 | 557,760 | ||||||||
Alstria Office REIT AG (Germany)1 |
78,350 | 972,717 | ||||||||
American Campus Communities, Inc. |
7,560 | 296,881 | ||||||||
Apartment Investment & Management Co. - Class A |
15,100 | 540,429 | ||||||||
Associated Estates Realty Corp. |
26,720 | 521,842 | ||||||||
AvalonBay Communities, Inc. |
3,230 | 503,363 | ||||||||
BioMed Realty Trust, Inc. |
69,640 | 1,512,581 | ||||||||
Boston Properties, Inc. |
2,880 | 365,040 | ||||||||
Camden Property Trust |
6,420 | 492,221 | ||||||||
CatchMark Timber Trust, Inc. - Class A |
27,410 | 320,697 | ||||||||
CBL & Associates Properties, Inc. |
63,185 | 1,208,729 | ||||||||
CBS Outdoor Americas, Inc. |
49,580 | 1,508,719 | ||||||||
Chesapeake Lodging Trust |
18,930 | 625,447 | ||||||||
CoreSite Realty Corp. |
13,430 | 497,179 | ||||||||
Corporate Office Properties Trust |
49,150 | 1,343,761 | ||||||||
Crown Castle International Corp. |
4,030 | 314,824 | ||||||||
CubeSmart |
16,250 | 342,062 | ||||||||
DDR Corp. |
25,660 | 465,472 | ||||||||
Digital Realty Trust, Inc. |
26,000 | 1,793,740 | ||||||||
Duke Realty Corp. |
25,480 | 483,101 | ||||||||
DuPont Fabros Technology, Inc. |
16,069 | 497,657 | ||||||||
Education Realty Trust, Inc. |
42,460 | 478,100 | ||||||||
Equity Lifestyle Properties, Inc. |
6,790 | 333,389 | ||||||||
Equity One, Inc. |
13,270 | 318,480 | ||||||||
Equity Residential |
7,740 | 538,394 | ||||||||
Essex Property Trust, Inc. |
2,570 | 518,523 | ||||||||
Excel Trust, Inc. |
23,420 | 304,460 | ||||||||
Extra Space Storage, Inc. |
5,040 | 293,126 | ||||||||
Fibra Shop Portafolios Inmobiliarios SAPI de CV (Mexico) |
163,380 | 221,904 | ||||||||
General Growth Properties, Inc. |
18,740 | 485,553 | ||||||||
HCP, Inc. |
17,880 | 786,184 | ||||||||
Health Care REIT, Inc. |
8,960 | 637,146 | ||||||||
Healthcare Trust of America, Inc. |
29,230 | 375,313 | ||||||||
Home Properties, Inc. |
5,000 | 321,550 | ||||||||
Host Hotels & Resorts, Inc. |
26,490 | 617,482 | ||||||||
Inland Real Estate Corp. |
29,660 | 314,693 | ||||||||
Kimco Realty Corp. |
33,540 | 836,823 |
The accompanying notes are an integral part of the financial statements.
42
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Financials (continued) |
||||||||||
Real Estate Investment Trusts (REITS) (continued) |
||||||||||
Kite Realty Group Trust |
24,165 | $ | 625,632 | |||||||
Mack-Cali Realty Corp. |
21,370 | 400,260 | ||||||||
Mid-America Apartment Communities, Inc. |
7,110 | 502,393 | ||||||||
Pebblebrook Hotel Trust |
16,110 | 686,286 | ||||||||
Pennsylvania Real Estate Investment Trust |
15,230 | 326,379 | ||||||||
Physicians Realty Trust |
33,000 | 506,220 | ||||||||
Plum Creek Timber Co., Inc. |
25,670 | 1,052,727 | ||||||||
Potlatch Corp. |
2,710 | 119,213 | ||||||||
Public Storage |
3,310 | 610,165 | ||||||||
Rayonier, Inc. |
3,740 | 125,178 | ||||||||
Rouse Properties, Inc. |
33,590 | 611,674 | ||||||||
Saul Centers, Inc. |
2,920 | 160,454 | ||||||||
Scentre Group (Australia)*1 |
72,688 | 231,871 | ||||||||
Simon Property Group, Inc. |
9,810 | 1,758,050 | ||||||||
Sovran Self Storage, Inc. |
7,720 | 656,895 | ||||||||
UDR, Inc. |
16,420 | 496,377 | ||||||||
Ventas, Inc. |
8,600 | 589,186 | ||||||||
Washington Prime Group, Inc. |
20,315 | 358,153 | ||||||||
Washington Real Estate Investment Trust |
11,330 | 320,186 | ||||||||
Westfield Corp. (Australia)1 |
121,570 | 854,275 | ||||||||
Weyerhaeuser Co. |
274,090 | 9,280,687 | ||||||||
|
|
|||||||||
43,377,460 | ||||||||||
|
|
|||||||||
Real Estate Management & Development - 0.6% |
||||||||||
BR Malls Participacoes S.A. (Brazil) |
17,560 | 141,024 | ||||||||
Forest City Enterprises, Inc. - Class A* |
21,570 | 450,597 | ||||||||
Forestar Group, Inc.* |
8,000 | 139,600 | ||||||||
General Shopping Brasil S.A. (Brazil)* |
115,770 | 315,367 | ||||||||
Realogy Holdings Corp.* |
209,962 | 8,610,542 | ||||||||
|
|
|||||||||
9,657,130 | ||||||||||
|
|
|||||||||
Total Financials |
82,178,761 | |||||||||
|
|
|||||||||
Health Care - 5.3% |
||||||||||
Biotechnology - 0.2% |
||||||||||
BioMarin Pharmaceutical, Inc.* |
18,540 | 1,529,550 | ||||||||
Green Cross Corp. (South Korea)1 |
4,900 | 627,100 | ||||||||
Seattle Genetics, Inc.* |
31,600 | 1,158,772 | ||||||||
|
|
|||||||||
3,315,422 | ||||||||||
|
|
|||||||||
Health Care Equipment & Supplies - 0.3% |
||||||||||
BioMerieux (France)1 |
1,010 | 106,545 | ||||||||
Carl Zeiss Meditec AG (Germany)1 |
12,060 | 324,499 | ||||||||
HeartWare International, Inc.* |
18,420 | 1,420,550 | ||||||||
Neogen Corp.* |
2,910 | 127,749 | ||||||||
Shandong Weigao Group Medical Polymer Co. Ltd. - Class H (China)1 |
874,700 | 884,528 | ||||||||
Thoratec Corp.* |
47,610 | 1,294,040 | ||||||||
|
|
|||||||||
4,157,911 | ||||||||||
|
|
|||||||||
Health Care Providers & Services - 1.8% |
||||||||||
Catamaran Corp.* |
308,100 | 14,687,127 | ||||||||
Express Scripts Holding Co.* |
157,610 | 12,107,600 | ||||||||
Fresenius Medical Care AG & Co. KGaA (Germany)1 |
5,450 | 400,017 | ||||||||
Fresenius Medical Care AG & Co. KGaA - ADR (Germany) |
11,070 | 405,273 | ||||||||
KPJ Healthcare Berhad (Malaysia)1 |
122,300 | 145,392 | ||||||||
Life Healthcare Group Holdings Ltd. (South Africa)1 |
156,349 | 591,250 | ||||||||
Odontoprev S.A. (Brazil) |
189,030 | 682,763 | ||||||||
Quest Diagnostics, Inc. |
12,540 | 795,788 | ||||||||
Universal Health Services, Inc. - Class B |
7,190 | 745,675 | ||||||||
|
|
|||||||||
30,560,885 | ||||||||||
|
|
|||||||||
Health Care Technology - 1.7% |
||||||||||
Cerner Corp.* |
467,776 | 29,628,932 | ||||||||
|
|
|||||||||
Life Sciences Tools & Services - 0.0%## |
||||||||||
Gerresheimer AG (Germany)1 |
7,580 | 421,765 | ||||||||
QIAGEN N.V.*1 |
8,680 | 203,992 | ||||||||
|
|
|||||||||
625,757 | ||||||||||
|
|
|||||||||
Pharmaceuticals - 1.3% |
||||||||||
AstraZeneca plc (United Kingdom)1 |
1,890 | 138,061 | ||||||||
AstraZeneca plc - ADR (United Kingdom) |
11,950 | 871,633 | ||||||||
GlaxoSmithKline plc (United Kingdom)1 |
11,020 | 249,205 | ||||||||
Johnson & Johnson |
77,670 | 8,371,273 | ||||||||
Novartis AG - ADR (Switzerland) |
2,980 | 276,216 | ||||||||
Novo Nordisk A/S - Class B (Denmark)1 |
6,230 | 281,613 | ||||||||
Otsuka Holdings Co. Ltd. (Japan)1 |
5,000 | 175,390 | ||||||||
Roche Holding AG (Switzerland)1 |
670 | 197,718 | ||||||||
Sanofi (France)1 |
3,906 | 354,430 | ||||||||
Sanofi - ADR (France) |
243,660 | 11,266,838 | ||||||||
Teva Pharmaceutical Industries Ltd. - ADR (Israel) |
7,240 | 408,843 | ||||||||
|
|
|||||||||
22,591,220 | ||||||||||
|
|
|||||||||
Total Health Care |
90,880,127 | |||||||||
|
|
|||||||||
Industrials - 3.1% |
||||||||||
Airlines - 0.3% |
||||||||||
Gol Linhas Aereas Inteligentes S.A. - ADR (Brazil) |
278,619 | 1,440,460 | ||||||||
Latam Airlines Group S.A. - ADR (Chile)* |
179,359 | 2,188,180 |
The accompanying notes are an integral part of the financial statements.
43
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Industrials (continued) |
||||||||||
Airlines (continued) |
||||||||||
Republic Airways Holdings, Inc.* |
134,130 | $ | 1,679,308 | |||||||
Ryanair Holdings plc - ADR (Ireland)* |
5,170 | 287,142 | ||||||||
|
|
|||||||||
5,595,090 | ||||||||||
|
|
|||||||||
Commercial Services & Supplies - 0.0%## |
||||||||||
Aggreko plc (United Kingdom)1 |
17,469 | 426,206 | ||||||||
MiX Telematics Ltd. - ADR (South Africa)* |
16,170 | 144,075 | ||||||||
Rollins, Inc. |
4,110 | 130,986 | ||||||||
Tomra Systems ASA (Norway)1 |
31,230 | 233,822 | ||||||||
|
|
|||||||||
935,089 | ||||||||||
|
|
|||||||||
Electrical Equipment - 0.1% |
||||||||||
Alstom S.A. (France)*1 |
15,620 | 545,188 | ||||||||
Nexans S.A. (France)*1 |
4,815 | 146,716 | ||||||||
Polypore International, Inc.* |
2,950 | 129,564 | ||||||||
Schneider Electric SE (France)1 |
6,220 | 490,049 | ||||||||
|
|
|||||||||
1,311,517 | ||||||||||
|
|
|||||||||
Industrial Conglomerates - 1.3% |
||||||||||
General Electric Co. |
775,110 | 20,005,589 | ||||||||
Siemens AG (Germany)1 |
14,840 | 1,673,852 | ||||||||
|
|
|||||||||
21,679,441 | ||||||||||
|
|
|||||||||
Machinery - 1.0% |
||||||||||
AGCO Corp. |
4,590 | 203,383 | ||||||||
ANDRITZ AG (Austria)1 |
6,720 | 324,739 | ||||||||
Chart Industries, Inc.* |
15,830 | 736,886 | ||||||||
Deere & Co. |
1,120 | 95,805 | ||||||||
FANUC Corp. (Japan)1 |
5,180 | 912,901 | ||||||||
Joy Global, Inc. |
219,538 | 11,554,285 | ||||||||
Kennametal, Inc. |
2,260 | 87,259 | ||||||||
Komatsu Ltd. (Japan)1 |
9,300 | 219,567 | ||||||||
KUKA AG (Germany)1 |
2,140 | 134,871 | ||||||||
Pall Corp. |
4,080 | 372,994 | ||||||||
Pentair plc (United Kingdom) |
4,960 | 332,568 | ||||||||
Sany Heavy Equipment International Holdings Co. Ltd. (China)*1 |
627,000 | 138,972 | ||||||||
SKF AB - Class B (Sweden)1 |
16,440 | 329,744 | ||||||||
Terex Corp. |
25,520 | 734,210 | ||||||||
Xylem, Inc. |
9,050 | 329,058 | ||||||||
|
|
|||||||||
16,507,242 | ||||||||||
|
|
|||||||||
Marine - 0.0%## |
||||||||||
Sinotrans Shipping Ltd. (China)*1 |
657,000 | 179,711 | ||||||||
|
|
|||||||||
Professional Services - 0.0%## |
||||||||||
Experian plc (United Kingdom)1 |
20,290 | 305,082 | ||||||||
SGS S.A. (Switzerland)1 |
210 | 461,690 | ||||||||
|
|
|||||||||
766,772 | ||||||||||
|
|
|||||||||
Road & Rail - 0.2% |
||||||||||
Heartland Express, Inc. |
35,510 | 892,721 | ||||||||
Hertz Global Holdings, Inc.* |
55,580 | 1,218,314 | ||||||||
Kansas City Southern |
1,540 | 189,097 | ||||||||
Swift Transportation Co.* |
36,920 | 911,924 | ||||||||
Union Pacific Corp. |
1,840 | 214,268 | ||||||||
|
|
|||||||||
3,426,324 | ||||||||||
|
|
|||||||||
Trading Companies & Distributors - 0.1% |
||||||||||
Brenntag AG (Germany)1 |
10,639 | 516,221 | ||||||||
Fastenal Co. |
31,770 | 1,399,151 | ||||||||
|
|
|||||||||
1,915,372 | ||||||||||
|
|
|||||||||
Transportation Infrastructure - 0.1% |
||||||||||
Wesco Aircraft Holdings, Inc.* |
64,160 | 1,138,840 | ||||||||
|
|
|||||||||
Total Industrials |
53,455,398 | |||||||||
|
|
|||||||||
Information Technology - 7.8% |
||||||||||
Communications Equipment - 1.4% |
||||||||||
Alcatel-Lucent - ADR (France) |
118,770 | 356,310 | ||||||||
ARRIS Group, Inc.* |
50,910 | 1,528,318 | ||||||||
Ixia* |
127,620 | 1,228,981 | ||||||||
Juniper Networks, Inc. |
946,780 | 19,948,655 | ||||||||
Palo Alto Networks, Inc.* |
620 | 65,534 | ||||||||
Polycom, Inc.* |
60,500 | 791,340 | ||||||||
|
|
|||||||||
23,919,138 | ||||||||||
|
|
|||||||||
Electronic Equipment, Instruments & Components - 0.2% |
||||||||||
Cognex Corp.* |
3,150 | 124,614 | ||||||||
FLIR Systems, Inc. |
34,710 | 1,163,826 | ||||||||
Hitachi Ltd. (Japan)1 |
103,000 | 809,320 | ||||||||
Keyence Corp. (Japan)1 |
1,123 | 544,186 | ||||||||
|
|
|||||||||
2,641,946 | ||||||||||
|
|
|||||||||
Internet Software & Services - 1.9% |
||||||||||
eBay, Inc.* |
241,120 | 12,658,800 | ||||||||
Google, Inc. - Class A* |
14,336 | 8,140,984 | ||||||||
Google, Inc. - Class C* |
14,336 | 8,014,971 | ||||||||
NetEase, Inc. - ADR (China) |
4,750 | 449,920 | ||||||||
Q2 Holdings, Inc.* |
44,030 | 664,413 | ||||||||
Qihoo 360 Technology Co. Ltd. - ADR (China)* |
18,474 | 1,348,233 | ||||||||
Tencent Holdings Ltd. (China)1 |
28,600 | 459,667 | ||||||||
Youku Tudou, Inc. - ADR (China)* |
7,830 | 153,468 | ||||||||
Zillow, Inc. - Class A* |
5,310 | 577,356 | ||||||||
|
|
|||||||||
32,467,812 | ||||||||||
|
|
|||||||||
IT Services - 1.6% |
||||||||||
Amdocs Ltd. - ADR |
5,440 | 258,618 | ||||||||
EVERTEC, Inc. |
103,710 | 2,354,217 |
The accompanying notes are an integral part of the financial statements.
44
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Information Technology (continued) |
||||||||||
IT Services (continued) |
||||||||||
InterXion Holding N.V. - ADR (Netherlands)* |
6,640 | $ | 181,538 | |||||||
MasterCard, Inc. - Class A |
85,703 | 7,177,626 | ||||||||
VeriFone Systems, Inc.* |
273,150 | 10,177,569 | ||||||||
Visa, Inc. - Class A |
28,850 | 6,965,255 | ||||||||
|
|
|||||||||
27,114,823 | ||||||||||
|
|
|||||||||
Semiconductors & Semiconductor Equipment - 0.0%## |
||||||||||
GCL-Poly Energy Holdings Ltd. (Hong Kong)*1 |
385,000 | 129,754 | ||||||||
REC Silicon ASA (Norway)*1 |
226,430 | 90,526 | ||||||||
|
|
|||||||||
220,280 | ||||||||||
|
|
|||||||||
Software - 1.0% |
||||||||||
Aspen Technology, Inc.* |
2,190 | 80,877 | ||||||||
AVEVA Group plc (United Kingdom)1 |
57,323 | 1,408,500 | ||||||||
Check Point Software Technologies Ltd. (Israel)* |
950 | 70,537 | ||||||||
Electronic Arts, Inc.* |
344,870 | 14,129,324 | ||||||||
Fortinet, Inc.* |
6,410 | 166,981 | ||||||||
Imperva, Inc.* |
1,900 | 77,843 | ||||||||
Nuance Communications, Inc.* |
7,730 | 119,274 | ||||||||
Proofpoint, Inc.* |
1,440 | 63,418 | ||||||||
SAP SE (Germany)1 |
12,350 | 841,472 | ||||||||
Temenos Group AG (Switzerland)1 |
6,350 | 221,700 | ||||||||
Totvs S.A. (Brazil) |
43,356 | 631,994 | ||||||||
|
|
|||||||||
17,811,920 | ||||||||||
|
|
|||||||||
Technology Hardware, Storage & Peripherals - 1.7% |
||||||||||
Canon, Inc. (Japan)1 |
10,100 | 309,870 | ||||||||
EMC Corp. |
939,650 | 26,996,145 | ||||||||
Samsung Electronics Co. Ltd. (South Korea)1 |
1,320 | 1,539,308 | ||||||||
Stratasys Ltd.* |
1,100 | 132,396 | ||||||||
|
|
|||||||||
28,977,719 | ||||||||||
|
|
|||||||||
Total Information Technology |
133,153,638 | |||||||||
|
|
|||||||||
Materials - 3.3% |
||||||||||
Chemicals - 2.3% |
||||||||||
Akzo Nobel N.V. (Netherlands)1 |
1,440 | 96,028 | ||||||||
BASF SE (Germany)1 |
4,890 | 432,081 | ||||||||
FMC Corp. |
13,260 | 760,461 | ||||||||
Linde AG (Germany)1 |
4,880 | 900,629 | ||||||||
Monsanto Co. |
213,890 | 24,605,906 | ||||||||
The Mosaic Co. |
244,150 | 10,818,287 | ||||||||
Novozymes A/S - Class B (Denmark)1 |
2,630 | 121,787 | ||||||||
Potash Corp. of Saskatchewan, Inc. (Canada) |
9,470 | 323,590 | ||||||||
Sociedad Quimica y Minera de Chile S.A. - ADR (Chile) |
20,796 | 493,489 | ||||||||
Syngenta AG (Switzerland)1 |
1,286 | 397,705 | ||||||||
Tronox Ltd. - Class A |
4,910 | 118,724 | ||||||||
Umicore S.A. (Belgium)1 |
8,591 | 337,183 | ||||||||
Wacker Chemie AG (Germany)1 |
1,130 | 136,932 | ||||||||
Yingde Gases Group Co. Ltd. (China)1 |
184,000 | 143,675 | ||||||||
|
|
|||||||||
39,686,477 | ||||||||||
|
|
|||||||||
Construction Materials - 0.0%## |
||||||||||
CRH plc (Ireland)1 |
13,260 | 294,639 | ||||||||
Holcim Ltd. (Switzerland)1 |
2,630 | 186,663 | ||||||||
|
|
|||||||||
481,302 | ||||||||||
|
|
|||||||||
Metals & Mining - 1.0% |
||||||||||
Alcoa, Inc. |
791,520 | 13,265,875 | ||||||||
Alumina Ltd. (Australia)*1 |
220,239 | 318,311 | ||||||||
Iluka Resources Ltd. (Australia)1 |
28,660 | 183,990 | ||||||||
Impala Platinum Holdings Ltd. (South Africa)*1 |
21,490 | 156,741 | ||||||||
Jastrzebska Spolka Weglowa S.A. (Poland)*1 |
21,100 | 181,325 | ||||||||
Norsk Hydro ASA (Norway)1 |
68,500 | 383,526 | ||||||||
Stillwater Mining Co.* |
73,600 | 966,368 | ||||||||
Teck Resources Ltd. - Class B (Canada) |
23,294 | 367,579 | ||||||||
ThyssenKrupp AG (Germany)*1 |
5,900 | 142,199 | ||||||||
|
|
|||||||||
15,965,914 | ||||||||||
|
|
|||||||||
Total Materials |
56,133,693 | |||||||||
|
|
|||||||||
Telecommunication Services - 0.2% |
||||||||||
Diversified Telecommunication Services - 0.1% |
||||||||||
Telefonica S.A. - ADR (Spain) |
65,120 | 975,498 | ||||||||
Telenor ASA - ADR (Norway)2 |
7,550 | 508,417 | ||||||||
|
|
|||||||||
1,483,915 | ||||||||||
|
|
|||||||||
Wireless Telecommunication Services - 0.1% |
||||||||||
America Movil S.A.B. de C.V. - Class L - ADR (Mexico) |
32,850 | 801,869 | ||||||||
China Mobile Ltd. (China)1 |
40,000 | 497,701 | ||||||||
|
|
|||||||||
1,299,570 | ||||||||||
|
|
|||||||||
Total Telecommunication Services |
2,783,485 | |||||||||
|
|
|||||||||
TOTAL COMMON STOCKS |
||||||||||
(Identified Cost $728,953,988) |
811,087,380 | |||||||||
|
|
The accompanying notes are an integral part of the financial statements.
45
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | SHARES/ PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||
PREFERRED STOCKS - 0.2% |
||||||||||
Financials - 0.2% |
||||||||||
Banks - 0.0%## |
||||||||||
U.S. Bancorp., Series F (non-cumulative), 6.50%3 |
29,800 | $ | 873,438 | |||||||
|
|
|||||||||
Insurance - 0.1% |
||||||||||
Principal Financial Group, Inc., Series A (non-cumulative), 5.563%3 |
14,100 | 1,424,100 | ||||||||
|
|
|||||||||
Real Estate Investment Trusts (REITS) - 0.1% |
||||||||||
Public Storage, Series Q, 6.50% |
37,110 | 974,138 | ||||||||
|
|
|||||||||
TOTAL PREFERRED STOCKS |
||||||||||
(Identified Cost $3,101,925) |
3,271,676 | |||||||||
|
|
|||||||||
CORPORATE BONDS - 22.7% |
||||||||||
Convertible Corporate Bonds - 0.2% |
||||||||||
Consumer Discretionary - 0.1% |
||||||||||
Internet & Catalog Retail - 0.1% |
||||||||||
The Priceline Group, Inc., 0.35%, 6/15/2020 |
1,225,000 | 1,388,844 | ||||||||
|
|
|||||||||
Financials - 0.1% |
||||||||||
Real Estate Investment Trusts (REITS) - 0.1% |
||||||||||
BioMed Realty LP5, 3.75%, 1/15/2030 |
825,000 | 1,048,781 | ||||||||
|
|
|||||||||
Total Convertible Corporate Bonds |
||||||||||
(Identified Cost $2,456,625) |
2,437,625 | |||||||||
|
|
|||||||||
Non-Convertible Corporate Bonds - 22.5% |
||||||||||
Consumer Discretionary - 2.6% |
||||||||||
Auto Components - 0.3% |
||||||||||
Delphi Corp., 5.00%, 2/15/2023 |
1,714,000 | 1,836,123 | ||||||||
Icahn Enterprises LP - Icahn Enterprises Finance Corp., 3.50%, 3/15/2017 |
3,195,000 | 3,179,025 | ||||||||
Icahn Enterprises LP - Icahn Enterprises Finance Corp., 5.875%, 2/1/2022 |
1,075,000 | 1,104,563 | ||||||||
|
|
|||||||||
6,119,711 | ||||||||||
|
|
|||||||||
Automobiles - 0.3% |
||||||||||
Ford Motor Credit Co. LLC, 6.625%, 8/15/2017 |
2,000,000 | 2,254,822 | ||||||||
Ford Motor Credit Co. LLC, 5.00%, 5/15/2018 |
775,000 | 848,028 | ||||||||
Ford Motor Credit Co. LLC, 8.125%, 1/15/2020 |
1,070,000 | 1,337,221 | ||||||||
|
|
|||||||||
4,440,071 | ||||||||||
|
|
|||||||||
Diversified Consumer Services - 0.2% |
||||||||||
Block Financial LLC, 5.50%, 11/1/2022 |
2,795,000 | 3,015,235 | ||||||||
Crestview DS Merger Sub II, Inc., 10.00%, 9/1/2021 |
650,000 | 718,250 | ||||||||
|
|
|||||||||
3,733,485 | ||||||||||
|
|
|||||||||
Hotels, Restaurants & Leisure - 0.3% |
||||||||||
International Game Technology, 7.50%, 6/15/2019 |
4,255,000 | 4,712,161 | ||||||||
Yum! Brands, Inc., 6.25%, 4/15/2016 |
1,066,000 | 1,143,499 | ||||||||
|
|
|||||||||
5,855,660 | ||||||||||
|
|
|||||||||
Household Durables - 0.5% |
||||||||||
Brookfield Residential Properties, Inc. - Brookfield Residential US Corp. (Canada)5, 6.125%, 7/1/2022 |
735,000 | 780,937 | ||||||||
Newell Rubbermaid, Inc., 4.70%, 8/15/2020 |
1,855,000 | 2,000,950 | ||||||||
NVR, Inc., 3.95%, 9/15/2022 |
528,000 | 539,856 | ||||||||
Tupperware Brands Corp., 4.75%, 6/1/2021 |
3,995,000 | 4,252,797 | ||||||||
Weekley Homes LLC - Weekley Finance Corp., 6.00%, 2/1/2023 |
885,000 | 867,300 | ||||||||
|
|
|||||||||
8,441,840 | ||||||||||
|
|
|||||||||
Media - 0.8% |
||||||||||
21st Century Fox America, Inc., 6.90%, 3/1/2019 |
1,095,000 | 1,302,128 | ||||||||
Cogeco Cable, Inc. (Canada)5, 4.875%, 5/1/2020 |
1,130,000 | 1,130,000 | ||||||||
Columbus International, Inc. (Barbados)5, 7.375%, 3/30/2021 |
675,000 | 715,500 | ||||||||
DIRECTV Holdings LLC - DIRECTV Financing Co., Inc., 5.20%, 3/15/2020 |
2,115,000 | 2,365,029 | ||||||||
Discovery Communications LLC, 5.05%, 6/1/2020 |
2,015,000 | 2,239,828 | ||||||||
Gannett Co., Inc.5, 4.875%, 9/15/2021 |
1,125,000 | 1,133,437 | ||||||||
Sirius XM Radio, Inc.5, 4.25%, 5/15/2020 |
1,125,000 | 1,118,672 | ||||||||
Time Warner, Inc., 4.875%, 3/15/2020 |
1,200,000 | 1,322,578 | ||||||||
Time Warner, Inc., 4.75%, 3/29/2021 |
1,610,000 | 1,770,953 | ||||||||
|
|
|||||||||
13,098,125 | ||||||||||
|
|
|||||||||
Multiline Retail - 0.1% |
||||||||||
Macys Retail Holdings, Inc., 2.875%, 2/15/2023 |
1,320,000 | 1,265,718 | ||||||||
|
|
|||||||||
Specialty Retail - 0.1% |
||||||||||
The TJX Companies, Inc., 2.75%, 6/15/2021 |
1,500,000 | 1,497,528 | ||||||||
|
|
|||||||||
Textiles, Apparel & Luxury Goods - 0.0%## |
||||||||||
VF Corp., 5.95%, 11/1/2017 |
640,000 | 727,921 | ||||||||
|
|
|||||||||
Total Consumer Discretionary |
45,180,059 | |||||||||
|
|
|||||||||
Consumer Staples - 0.7% |
||||||||||
Beverages - 0.2% |
||||||||||
Anheuser-Busch InBev Worldwide, Inc. (Belgium), 7.75%, 1/15/2019 |
1,060,000 | 1,285,486 | ||||||||
Pernod-Ricard S.A. (France)5, 5.75%, 4/7/2021 |
1,350,000 | 1,544,596 |
The accompanying notes are an integral part of the financial statements.
46
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) | ||||||||||||
CORPORATE BONDS (continued) |
||||||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||||||
Consumer Staples (continued) |
||||||||||||||
Beverages (continued) |
||||||||||||||
SABMiller plc (United Kingdom)5, 6.50%, 7/15/2018 |
1,000,000 | $ | 1,152,173 | |||||||||||
|
|
|||||||||||||
3,982,255 | ||||||||||||||
|
|
|||||||||||||
Food & Staples Retailing - 0.2% |
||||||||||||||
C&S Group Enterprises LLC5, 5.375%, 7/15/2022 |
1,110,000 | 1,110,000 | ||||||||||||
KeHE Distributors LLC - KeHE Finance Corp.5, 7.625%, 8/15/2021 |
865,000 | 919,063 | ||||||||||||
Shearers Foods LLC - Chip Finance Corp.5, 9.00%, 11/1/2019 |
710,000 | 781,000 | ||||||||||||
|
|
|||||||||||||
2,810,063 | ||||||||||||||
|
|
|||||||||||||
Food Products - 0.1% |
||||||||||||||
Pinnacle Operating Corp.5, 9.00%, 11/15/2020 |
1,030,000 | 1,109,825 | ||||||||||||
|
|
|||||||||||||
Household Products - 0.2% |
||||||||||||||
Energizer Holdings, Inc., 4.70%, 5/19/2021 |
1,300,000 | 1,327,863 | ||||||||||||
Harbinger Group, Inc., 7.875%, 7/15/2019 |
885,000 | 958,013 | ||||||||||||
Harbinger Group, Inc., 7.75%, 1/15/2022 |
920,000 | 933,800 | ||||||||||||
|
|
|||||||||||||
3,219,676 | ||||||||||||||
|
|
|||||||||||||
Tobacco - 0.0%## |
||||||||||||||
Vector Group Ltd., 7.75%, 2/15/2021 |
805,000 | 872,419 | ||||||||||||
|
|
|||||||||||||
Total Consumer Staples |
11,994,238 | |||||||||||||
|
|
|||||||||||||
Energy - 1.3% |
||||||||||||||
Energy Equipment & Services - 0.5% |
||||||||||||||
Baker Hughes, Inc., 7.50%, 11/15/2018 |
1,215,000 | 1,469,021 | ||||||||||||
Calfrac Holdings LP (Canada)5, 7.50%, 12/1/2020 |
685,000 | 698,700 | ||||||||||||
Parker Drilling Co., 6.75%, 7/15/2022 |
1,125,000 | 1,023,750 | ||||||||||||
Schlumberger Oilfield plc5, 4.20%, 1/15/2021 |
905,000 | 987,328 | ||||||||||||
Seventy Seven Operating LLC, 6.625%, 11/15/2019 |
685,000 | 678,150 | ||||||||||||
Shelf Drilling Holdings Ltd. (United Arab Emirates)5, 8.625%, 11/1/2018 |
1,030,000 | 1,017,125 | ||||||||||||
US Shale Solutions, Inc.5, 12.50%, 9/1/2017 |
560,000 | 504,000 | ||||||||||||
Weatherford International Ltd., 9.625%, 3/1/2019 |
2,155,000 | 2,753,864 | ||||||||||||
|
|
|||||||||||||
9,131,938 | ||||||||||||||
|
|
|||||||||||||
Oil, Gas & Consumable Fuels - 0.8% |
||||||||||||||
Buckeye Partners LP, 4.15%, 7/1/2023 |
1,295,000 | 1,301,393 | ||||||||||||
Energy XXI Gulf Coast, Inc., 7.50%, 12/15/2021 |
955,000 | 792,650 | ||||||||||||
FTS International, Inc.5, 6.25%, 5/1/2022 |
725,000 | 685,125 | ||||||||||||
Ithaca Energy, Inc. (United Kingdom)5, 8.125%, 7/1/2019 |
1,100,000 | 946,000 | ||||||||||||
PBF Holding Co. LLC - PBF Finance Corp., 8.25%, 2/15/2020 |
1,355,000 | 1,417,669 | ||||||||||||
Petrobras Global Finance B.V. (Brazil)6, 1.852%, 5/20/2016 |
3,280,000 | 3,280,000 | ||||||||||||
Petroleos Mexicanos (Mexico), 5.75%, 3/1/2018 |
1,345,000 | 1,486,629 | ||||||||||||
Petroleos Mexicanos (Mexico), 3.50%, 7/18/2018 |
450,000 | 465,750 | ||||||||||||
Petroleos Mexicanos (Mexico), 8.00%, 5/3/2019 |
1,600,000 | 1,943,840 | ||||||||||||
Sabine Pass Liquefaction LLC, 5.625%, 2/1/2021 |
1,065,000 | 1,115,587 | ||||||||||||
|
|
|||||||||||||
13,434,643 | ||||||||||||||
|
|
|||||||||||||
Total Energy |
22,566,581 | |||||||||||||
|
|
|||||||||||||
Financials - 12.5% |
||||||||||||||
Banks - 4.0% |
||||||||||||||
Banco Bilbao Vizcaya Argentaria S.A. (Spain)6, 9.00%, 5/29/2049 |
1,200,000 | 1,296,960 | ||||||||||||
Banco Santander S.A. (Spain)6, 6.375%, 5/29/2049 |
1,400,000 | 1,375,850 | ||||||||||||
Bank of America Corp., 6.50%, 8/1/2016 |
1,900,000 | 2,071,861 | ||||||||||||
Bank of America Corp., 5.75%, 8/15/2016 |
1,135,000 | 1,222,506 | ||||||||||||
Bank of America Corp., 6.875%, 4/25/2018 |
1,030,000 | 1,191,475 | ||||||||||||
Bank of America Corp., 7.625%, 6/1/2019 |
2,270,000 | 2,753,374 | ||||||||||||
Bank of Montreal (Canada)5, 1.95%, 1/30/2017 |
6,730,000 | 6,862,958 | ||||||||||||
Barclays Bank plc (United Kingdom), 5.14%, 10/14/2020 |
1,050,000 | 1,141,129 | ||||||||||||
Barclays Bank plc (United Kingdom)5, 10.179%, 6/12/2021 |
1,200,000 | 1,611,206 | ||||||||||||
Barclays plc (United Kingdom)6, 6.625%, 6/29/2049 |
800,000 | 765,600 | ||||||||||||
BBVA Bancomer S.A. (Mexico)5, 6.75%, 9/30/2022 |
1,655,000 | 1,874,287 | ||||||||||||
BBVA US Senior S.A.U. (Spain), 4.664%, 10/9/2015 |
4,406,000 | 4,565,079 | ||||||||||||
BPCE S.A. (France)6, 2.84%, 7/29/2049 |
1,400,000 | 1,225,490 | ||||||||||||
Citigroup, Inc., 5.85%, 8/2/2016 |
2,000,000 | 2,158,864 | ||||||||||||
Citigroup, Inc., 8.50%, 5/22/2019 |
2,674,000 | 3,355,119 | ||||||||||||
Commonwealth Bank of Australia (Australia), 5.75%, 1/25/2017 |
AUD | 390,000 | 362,337 |
The accompanying notes are an integral part of the financial statements.
47
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||||||
CORPORATE BONDS (continued) |
||||||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||||||
Financials (continued) |
||||||||||||||
Banks (continued) |
||||||||||||||
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A. (Netherlands)6, |
670,000 | $ | 737,000 | |||||||||||
HSBC Bank plc (United Kingdom)5, 1.50%, 5/15/2018 |
1,605,000 | 1,583,267 | ||||||||||||
HSBC Finance Corp., 6.676%, 1/15/2021 |
1,350,000 | 1,590,952 | ||||||||||||
HSBC USA Capital Trust I (United Kingdom)5, 7.808%, 12/15/2026 |
600,000 | 607,405 | ||||||||||||
Intesa Sanpaolo S.p.A. (Italy), 3.875%, 1/15/2019 |
3,000,000 | 3,123,246 | ||||||||||||
Intesa Sanpaolo S.p.A. (Italy)5, 6.50%, 2/24/2021 |
1,380,000 | 1,601,258 | ||||||||||||
Intesa Sanpaolo S.p.A. (Italy)5, 5.017%, 6/26/2024 |
1,450,000 | 1,417,105 | ||||||||||||
JPMorgan Chase & Co., 3.15%, 7/5/2016 |
4,025,000 | 4,163,214 | ||||||||||||
JPMorgan Chase & Co., 4.95%, 3/25/2020 |
4,040,000 | 4,485,741 | ||||||||||||
Lloyds Bank plc (United Kingdom)5, 6.50%, 9/14/2020 |
2,225,000 | 2,573,304 | ||||||||||||
Lloyds Bank plc (United Kingdom)6, 9.875%, 12/16/2021 |
1,300,000 | 1,495,000 | ||||||||||||
National City Corp., 6.875%, 5/15/2019 |
2,485,000 | 2,940,814 | ||||||||||||
Popular, Inc., 7.00%, 7/1/2019 |
1,500,000 | 1,511,250 | ||||||||||||
Royal Bank of Canada (Canada), 3.27%, 11/10/2014 |
CAD | 295,000 | 261,784 | |||||||||||
Royal Bank of Canada (Canada), 3.18%, 3/16/2015 |
CAD | 470,000 | 419,845 | |||||||||||
Royal Bank of Canada (Canada), 3.77%, 3/30/2018 |
CAD | 450,000 | 423,372 | |||||||||||
Royal Bank of Scotland Group plc (United Kingdom)6, 1.173%, 3/31/2017 |
3,000,000 | 3,009,942 | ||||||||||||
The Royal Bank of Scotland plc (United Kingdom)6, 9.50%, 3/16/2022 |
590,000 | 674,311 | ||||||||||||
Santander Bank N.A. (Spain), 8.75%, 5/30/2018 |
1,250,000 | 1,512,369 | ||||||||||||
Santander Holdings USA, Inc., 4.625%, 4/19/2016 |
365,000 | 383,933 | ||||||||||||
Westpac Banking Corp. (Australia), 5.75%, 2/6/2017 |
AUD | 400,000 | 371,961 | |||||||||||
|
|
|||||||||||||
68,721,168 | ||||||||||||||
|
|
|||||||||||||
Capital Markets - 2.5% |
||||||||||||||
Goldman Sachs Capital II6, 4.00%, 12/29/2049 |
1,215,000 | 913,680 | ||||||||||||
The Goldman Sachs Group, Inc., 3.625%, 2/7/2016 |
4,400,000 | 4,540,901 | ||||||||||||
The Goldman Sachs Group, Inc., 6.15%, 4/1/2018 |
2,510,000 | 2,836,300 | ||||||||||||
The Goldman Sachs Group, Inc.6, 1.332%, 11/15/2018 |
6,235,000 | 6,298,834 | ||||||||||||
The Goldman Sachs Group, Inc., 5.375%, 3/15/2020 |
4,285,000 | 4,804,835 | ||||||||||||
The Goldman Sachs Group, Inc.6, 1.836%, 11/29/2023 |
1,120,000 | 1,156,099 | ||||||||||||
Morgan Stanley, 3.80%, 4/29/2016 |
5,020,000 | 5,217,718 | ||||||||||||
Morgan Stanley, 2.125%, 4/25/2018 |
5,000,000 | 5,013,850 | ||||||||||||
Morgan Stanley, 5.50%, 1/26/2020 |
4,255,000 | 4,796,708 | ||||||||||||
Morgan Stanley, 5.75%, 1/25/2021 |
2,965,000 | 3,404,585 | ||||||||||||
Scottrade Financial Services, Inc.5, 6.125%, 7/11/2021 |
375,000 | 393,907 | ||||||||||||
UBS AG (Switzerland)6, 7.25%, 2/22/2022 |
1,170,000 | 1,265,413 | ||||||||||||
UBS AG (Switzerland), 7.625%, 8/17/2022 |
810,000 | 955,926 | ||||||||||||
UBS AG (Switzerland)6, 4.75%, 5/22/2023 |
1,005,000 | 1,016,306 | ||||||||||||
|
|
|||||||||||||
42,615,062 | ||||||||||||||
|
|
|||||||||||||
Consumer Finance - 0.6% |
||||||||||||||
Ally Financial, Inc., 6.75%, 12/1/2014 |
610,000 | 611,830 | ||||||||||||
American Express Co.6, 6.80%, 9/1/2066 |
950,000 | 1,006,905 | ||||||||||||
Capital One Bank USA National Association, 2.15%, 11/21/2018 |
900,000 | 896,929 | ||||||||||||
Caterpillar Financial Services Corp., 7.05%, 10/1/2018 |
1,500,000 | 1,777,067 | ||||||||||||
Caterpillar Financial Services Corp., 7.15%, 2/15/2019 |
295,000 | 354,846 | ||||||||||||
CNG Holdings, Inc.5, 9.375%, 5/15/2020 |
910,000 | 684,775 | ||||||||||||
Discover Bank, 4.20%, 8/8/2023 |
1,310,000 | 1,372,559 | ||||||||||||
Navient Corp., 6.00%, 1/25/2017 |
2,945,000 | 3,106,975 | ||||||||||||
Navient Corp., 6.125%, 3/25/2024 |
1,060,000 | 1,094,461 | ||||||||||||
|
|
|||||||||||||
10,906,347 | ||||||||||||||
|
|
|||||||||||||
Diversified Financial Services - 1.2% |
||||||||||||||
The Bear Stearns Companies LLC, 7.25%, 2/1/2018 |
85,000 | 98,812 | ||||||||||||
CME Group, Inc., 3.00%, 9/15/2022 |
1,240,000 | 1,246,035 | ||||||||||||
General Electric Capital Corp.6, 0.612%, 5/5/2026 |
2,310,000 | 2,204,920 | ||||||||||||
General Electric Capital Corp.6, 7.125%, 12/29/2049 |
1,950,000 | 2,271,750 | ||||||||||||
ING Bank N.V. (Netherlands)5, 5.80%, 9/25/2023 |
1,850,000 | 2,058,906 | ||||||||||||
ING Bank N.V. (Netherlands)6, 4.125%, 11/21/2023 |
1,475,000 | 1,511,034 | ||||||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.5, 7.375%, 4/1/2020 |
870,000 | 865,650 | ||||||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.5, 7.50%, 4/15/2021 |
1,150,000 | 1,144,250 |
The accompanying notes are an integral part of the financial statements.
48
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Financials (continued) |
||||||||||
Diversified Financial Services (continued) |
||||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.5, 6.875%, 4/15/2022 |
700,000 | $ | 677,250 | |||||||
Jefferies Group LLC, 8.50%, 7/15/2019 |
3,825,000 | 4,744,530 | ||||||||
Jefferies Group LLC, 5.125%, 1/20/2023 |
2,100,000 | 2,225,341 | ||||||||
Voya Financial, Inc., 2.90%, 2/15/2018 |
85,000 | 87,390 | ||||||||
Voya Financial, Inc., 5.50%, 7/15/2022 |
1,165,000 | 1,313,386 | ||||||||
|
|
|||||||||
20,449,254 | ||||||||||
|
|
|||||||||
Insurance - 2.0% |
||||||||||
Aegon N.V. (Netherlands)6, 2.549%, 7/29/2049 |
2,150,000 | 1,918,875 | ||||||||
American International Group, Inc., 4.875%, 6/1/2022 |
3,705,000 | 4,132,520 | ||||||||
Assured Guaranty US Holdings, Inc., 5.00%, 7/1/2024 |
3,035,000 | 3,158,628 | ||||||||
AXA S.A. (France)6, 2.663%, 8/29/2049 |
2,640,000 | 2,389,200 | ||||||||
Fidelity National Financial, Inc., 6.60%, 5/15/2017 |
1,985,000 | 2,207,294 | ||||||||
First American Financial Corp., 4.30%, 2/1/2023 |
1,650,000 | 1,669,340 | ||||||||
Genworth Holdings, Inc., 7.70%, 6/15/2020 |
500,000 | 600,233 | ||||||||
Genworth Holdings, Inc., 7.625%, 9/24/2021 |
6,620,000 | 8,069,197 | ||||||||
Genworth Holdings, Inc.6, 6.15%, 11/15/2066 |
4,395,000 | 3,757,725 | ||||||||
The Hartford Financial Services Group, Inc., 5.125%, 4/15/2022 |
3,120,000 | 3,486,531 | ||||||||
Prudential Financial, Inc.6, 5.875%, 9/15/2042 |
1,950,000 | 2,067,000 | ||||||||
|
|
|||||||||
33,456,543 | ||||||||||
|
|
|||||||||
Real Estate Investment Trusts (REITS) - 2.0% |
||||||||||
American Campus Communities Operating Partnership LP, 3.75%, 4/15/2023 |
665,000 | 660,237 | ||||||||
American Tower Corp., 3.40%, 2/15/2019 |
4,010,000 | 4,101,592 | ||||||||
BioMed Realty LP, 3.85%, 4/15/2016 |
235,000 | 244,320 | ||||||||
Boston Properties LP, 5.875%, 10/15/2019 |
1,415,000 | 1,632,340 | ||||||||
Boston Properties LP, 5.625%, 11/15/2020 |
410,000 | 469,088 | ||||||||
Camden Property Trust, 5.70%, 5/15/2017 |
705,000 | 778,665 | ||||||||
Corrections Corp. of America, 4.125%, 4/1/2020 |
1,105,000 | 1,088,425 | ||||||||
Digital Realty Trust LP, 5.875%, 2/1/2020 |
4,950,000 | 5,530,927 | ||||||||
DuPont Fabros Technology LP, 5.875%, 9/15/2021 |
1,090,000 | 1,133,600 | ||||||||
HCP, Inc., 6.70%, 1/30/2018 |
3,675,000 | 4,232,409 | ||||||||
Health Care REIT, Inc., 6.20%, 6/1/2016 |
3,640,000 | 3,935,976 | ||||||||
Health Care REIT, Inc., 4.95%, 1/15/2021 |
330,000 | 362,204 | ||||||||
Hospitality Properties Trust, 6.70%, 1/15/2018 |
1,385,000 | 1,543,710 | ||||||||
Qualitytech LP - QTS Finance Corp.5, 5.875%, 8/1/2022 |
735,000 | 738,675 | ||||||||
Rialto Holdings LLC - Rialto Corp.5, 7.00%, 12/1/2018 |
1,020,000 | 1,042,950 | ||||||||
Simon Property Group LP, 10.35%, 4/1/2019 |
2,210,000 | 2,925,370 | ||||||||
Simon Property Group LP, 5.65%, 2/1/2020 |
1,795,000 | 2,076,101 | ||||||||
UDR, Inc., 4.625%, 1/10/2022 |
980,000 | 1,057,338 | ||||||||
|
|
|||||||||
33,553,927 | ||||||||||
|
|
|||||||||
Real Estate Management & Development - 0.0%## |
||||||||||
Forestar USA Real Estate Group, Inc.5, 8.50%, 6/1/2022 |
695,000 | 710,637 | ||||||||
|
|
|||||||||
Thrifts & Mortgage Finance - 0.2% |
||||||||||
Ladder Capital Finance Holdings LLLP - Ladder Capital Finance Corp., 7.375%, 10/1/2017 |
930,000 | 983,475 | ||||||||
Ladder Capital Finance Holdings LLLP - Ladder Capital Finance Corp.5, 5.875%, 8/1/2021 |
515,000 | 510,494 | ||||||||
Prospect Holding Co. LLC - Prospect Holding Finance Co.5, 10.25%, 10/1/2018 |
725,000 | 652,500 | ||||||||
Provident Funding Associates LP - PFG Finance Corp.5, 6.75%, 6/15/2021 |
580,000 | 578,550 | ||||||||
|
|
|||||||||
2,725,019 | ||||||||||
|
|
|||||||||
Total Financials |
213,137,957 | |||||||||
|
|
|||||||||
Health Care - 0.4% |
||||||||||
Biotechnology - 0.1% |
||||||||||
Amgen, Inc., 2.20%, 5/22/2019 |
1,472,000 | 1,460,724 | ||||||||
|
|
|||||||||
Health Care Equipment & Supplies - 0.0%## |
||||||||||
Halyard Health, Inc.5, 6.25%, 10/15/2022 |
715,000 | 731,087 | ||||||||
|
|
|||||||||
Health Care Providers & Services - 0.2% |
||||||||||
Express Scripts Holding Co., 4.75%, 11/15/2021 |
1,250,000 | 1,372,721 | ||||||||
Fresenius Medical Care US Finance, Inc. (Germany)5, 6.50%, 9/15/2018 |
815,000 | 902,613 | ||||||||
Fresenius US Finance II, Inc. (Germany)5, 9.00%, 7/15/2015 |
895,000 | 930,800 | ||||||||
|
|
|||||||||
3,206,134 | ||||||||||
|
|
The accompanying notes are an integral part of the financial statements.
49
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Health Care (continued) |
||||||||||
Pharmaceuticals - 0.1% |
||||||||||
Roche Holdings, Inc. (Switzerland)5, 6.00%, 3/1/2019 |
1,540,000 | $ | 1,779,378 | |||||||
|
|
|||||||||
Total Health Care |
7,177,323 | |||||||||
|
|
|||||||||
Industrials - 2.1% |
||||||||||
Aerospace & Defense - 0.3% |
||||||||||
DigitalGlobe, Inc.5, 5.25%, 2/1/2021 |
1,113,000 | 1,082,393 | ||||||||
L-3 Communications Corp., 3.95%, 11/15/2016 |
2,000,000 | 2,104,682 | ||||||||
Textron, Inc., 7.25%, 10/1/2019 |
1,000,000 | 1,194,074 | ||||||||
|
|
|||||||||
4,381,149 | ||||||||||
|
|
|||||||||
Air Freight & Logistics - 0.0%## |
||||||||||
Neovia Logistics Intermediate Holdings LLC - Logistics Intermediate Finance Corp.5,7, 10.00%, 2/15/2018 |
615,000 | 633,450 | ||||||||
|
|
|||||||||
Airlines - 0.5% |
||||||||||
Allegiant Travel Co., 5.50%, 7/15/2019 |
1,065,000 | 1,088,963 | ||||||||
American Airlines Pass-Through Trust, Series 2013-2, Class A, 4.95%, 1/15/2023 |
2,081,450 | 2,221,948 | ||||||||
Delta Air Lines Pass-Through Trust, Series 2010-1, Class B5, 6.375%, 1/2/2016 |
710,000 | 740,175 | ||||||||
Delta Air Lines Pass-Through Trust, Series 2010-2, Class B, 6.75%, 11/23/2015 |
2,285,000 | 2,382,113 | ||||||||
Gol LuxCo S.A. (Brazil)5, 8.875%, 1/24/2022 |
1,080,000 | 1,061,100 | ||||||||
United Continental Holdings, Inc., 6.375%, 6/1/2018 |
845,000 | 883,025 | ||||||||
|
|
|||||||||
8,377,324 | ||||||||||
|
|
|||||||||
Commercial Services & Supplies - 0.1% |
||||||||||
Modular Space Corp.5, 10.25%, 1/31/2019 |
1,055,000 | 1,076,100 | ||||||||
|
|
|||||||||
Construction & Engineering - 0.0%## |
||||||||||
Abengoa Finance S.A.U. (Spain)5, 7.75%, 2/1/2020 |
850,000 | 888,250 | ||||||||
|
|
|||||||||
Machinery - 0.3% |
||||||||||
CNH Industrial Capital LLC, 3.875%, 11/1/2015 |
2,215,000 | 2,242,688 | ||||||||
CNH Industrial Capital LLC, 6.25%, 11/1/2016 |
895,000 | 946,463 | ||||||||
Joy Global, Inc., 5.125%, 10/15/2021 |
110,000 | 120,307 | ||||||||
SPL Logistics Escrow LLC - SPL Logistics Finance Corp.5, 8.875%, 8/1/2020 |
985,000 | 1,066,263 | ||||||||
Waterjet Holdings, Inc.5, 7.625%, 2/1/2020 |
870,000 | 909,150 | ||||||||
|
|
|||||||||
5,284,871 | ||||||||||
|
|
|||||||||
Road & Rail - 0.1% |
||||||||||
Union Pacific Corp., 5.65%, 5/1/2017 |
815,000 | 894,520 | ||||||||
Union Pacific Corp., 7.875%, 1/15/2019 |
495,000 | 603,860 | ||||||||
|
|
|||||||||
1,498,380 | ||||||||||
|
|
|||||||||
Trading Companies & Distributors - 0.8% |
||||||||||
Air Lease Corp., 3.375%, 1/15/2019 |
1,850,000 | 1,873,125 | ||||||||
Aircastle Ltd., 4.625%, 12/15/2018 |
905,000 | 918,575 | ||||||||
Aviation Capital Group Corp.5, 3.875%, 9/27/2016 |
3,100,000 | 3,184,531 | ||||||||
Fly Leasing Ltd. (Ireland), 6.75%, 12/15/2020 |
1,045,000 | 1,076,350 | ||||||||
Fly Leasing Ltd. (Ireland), 6.375%, 10/15/2021 |
1,100,000 | 1,094,500 | ||||||||
International Lease Finance Corp., 8.625%, 9/15/2015 |
555,000 | 582,750 | ||||||||
International Lease Finance Corp., 5.75%, 5/15/2016 |
970,000 | 1,011,225 | ||||||||
International Lease Finance Corp.6, 2.184%, 6/15/2016 |
1,525,000 | 1,519,281 | ||||||||
International Lease Finance Corp., 8.75%, 3/15/2017 |
1,490,000 | 1,676,250 | ||||||||
|
|
|||||||||
12,936,587 | ||||||||||
|
|
|||||||||
Total Industrials |
35,076,111 | |||||||||
|
|
|||||||||
Information Technology - 0.7% |
||||||||||
Internet Software & Services - 0.1% |
||||||||||
Tencent Holdings Ltd. (China)5, 3.375%, 5/2/2019 |
1,645,000 | 1,672,606 | ||||||||
|
|
|||||||||
IT Services - 0.1% |
||||||||||
Xerox Corp., 2.80%, 5/15/2020 |
1,500,000 | 1,482,282 | ||||||||
|
|
|||||||||
Semiconductors & Semiconductor Equipment - 0.1% |
||||||||||
Xilinx, Inc., 3.00%, 3/15/2021 |
2,170,000 | 2,179,346 | ||||||||
|
|
|||||||||
Technology Hardware, Storage & Peripherals - 0.4% |
||||||||||
Apple, Inc., 2.40%, 5/3/2023 |
645,000 | 622,295 | ||||||||
EMC Corp., 2.65%, 6/1/2020 |
2,845,000 | 2,804,487 | ||||||||
Hewlett-Packard Co., 5.50%, 3/1/2018 |
815,000 | 908,766 | ||||||||
Hewlett-Packard Co.6, 1.17%, 1/14/2019 |
2,765,000 | 2,754,897 | ||||||||
|
|
|||||||||
7,090,445 | ||||||||||
|
|
|||||||||
Total Information Technology |
12,424,679 | |||||||||
|
|
|||||||||
Materials - 1.2% |
||||||||||
Chemicals - 0.3% |
||||||||||
Consolidated Energy Finance S.A. (Luxembourg)5, 6.75%, 10/15/2019 |
1,055,000 | 1,076,100 | ||||||||
The Dow Chemical Co., 8.55%, 5/15/2019 |
2,305,000 | 2,903,124 | ||||||||
Lyondellbasell Industries N.V., 5.00%, 4/15/2019 |
500,000 | 551,189 |
The accompanying notes are an integral part of the financial statements.
50
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES |
PRINCIPAL SHARES |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Materials (continued) |
||||||||||
Chemicals (continued) |
||||||||||
The Mosaic Co., 4.25%, 11/15/2023 |
680,000 | $ | 713,273 | |||||||
|
|
|||||||||
5,243,686 | ||||||||||
|
|
|||||||||
Containers & Packaging - 0.1% |
||||||||||
Ardagh Packaging Finance plc - Ardagh Holdings USA, Inc. (Ireland)5,6, 3.234%, 12/15/2019 |
1,065,000 | 1,041,037 | ||||||||
PaperWorks Industries, Inc.5, 9.50%, 8/15/2019 |
710,000 | 725,975 | ||||||||
|
|
|||||||||
1,767,012 | ||||||||||
|
|
|||||||||
Metals & Mining - 0.6% |
||||||||||
ArcelorMittal (Luxembourg), 10.35%, 6/1/2019 |
895,000 | 1,105,325 | ||||||||
BHP Billiton Finance (USA) Ltd. (Australia), 6.50%, 4/1/2019 |
1,275,000 | 1,512,302 | ||||||||
Freeport-McMoRan Oil & Gas LLC - FCX Oil & Gas, Inc., 6.125%, 6/15/2019 |
1,086,000 | 1,187,813 | ||||||||
Freeport-McMoRan Oil & Gas LLC - FCX Oil & Gas, Inc., 6.50%, 11/15/2020 |
1,771,000 | 1,933,932 | ||||||||
Freeport-McMoRan, Inc., 3.10%, 3/15/2020 |
110,000 | 109,628 | ||||||||
Rio Tinto Finance USA Ltd. (United Kingdom), 3.75%, 9/20/2021 |
1,585,000 | 1,651,310 | ||||||||
SunCoke Energy Partners LP - SunCoke Energy Partners Finance Corp.5, 7.375%, 2/1/2020 |
985,000 | 1,029,325 | ||||||||
Teck Resources Ltd. (Canada), 3.00%, 3/1/2019 |
1,260,000 | 1,248,432 | ||||||||
|
|
|||||||||
9,778,067 | ||||||||||
|
|
|||||||||
Paper & Forest Products - 0.2% |
||||||||||
Domtar Corp., 4.40%, 4/1/2022 |
1,425,000 | 1,456,622 | ||||||||
International Paper Co., 7.50%, 8/15/2021 |
1,410,000 | 1,764,021 | ||||||||
|
|
|||||||||
3,220,643 | ||||||||||
|
|
|||||||||
Total Materials |
20,009,408 | |||||||||
|
|
|||||||||
Telecommunication Services - 0.8% |
||||||||||
Diversified Telecommunication Services - 0.2% |
||||||||||
Telefonica Emisiones S.A.U. (Spain), 6.221%, 7/3/2017 |
2,300,000 | 2,564,679 | ||||||||
|
|
|||||||||
Wireless Telecommunication Services - 0.6% |
||||||||||
Altice Financing S.A. (Luxembourg)5, 6.50%, 1/15/2022 |
995,000 | 1,022,363 | ||||||||
America Movil S.A.B. de C.V. (Mexico), 5.00%, 3/30/2020 |
1,890,000 | 2,083,441 | ||||||||
CPI International, Inc., 8.75%, 2/15/2018 |
695,000 | 721,063 | ||||||||
Crown Castle Towers LLC5, 6.113%, 1/15/2020 |
1,040,000 | 1,201,580 | ||||||||
Crown Castle Towers LLC5, 4.883%, 8/15/2020 |
333,000 | 367,496 | ||||||||
SBA Tower Trust5, 5.101%, 4/17/2017 |
575,000 | 609,674 | ||||||||
SBA Tower Trust5, 2.933%, 12/15/2017 |
1,680,000 | 1,702,430 | ||||||||
SBA Tower Trust5, 3.598%, 4/15/2018 |
1,500,000 | 1,509,681 | ||||||||
UPCB Finance VI Ltd. (Netherlands)5, 6.875%, 1/15/2022 |
950,000 | 1,037,875 | ||||||||
|
|
|||||||||
10,255,603 | ||||||||||
|
|
|||||||||
Total Telecommunication Services |
12,820,282 | |||||||||
|
|
|||||||||
Utilities - 0.2% |
||||||||||
Independent Power and Renewable Electricity Producers - 0.2% |
||||||||||
AES Corp.6, 3.234%, 6/1/2019 |
1,130,000 | 1,123,996 | ||||||||
ContourGlobal Power Holdings S.A. (France)5, 7.125%, 6/1/2019 |
1,075,000 | 1,077,687 | ||||||||
NRG Energy, Inc., 6.25%, 7/15/2022 |
1,000,000 | 1,045,000 | ||||||||
RJS Power Holdings LLC5, 5.125%, 7/15/2019 |
720,000 | 716,400 | ||||||||
|
|
|||||||||
Total Utilities |
3,963,083 | |||||||||
|
|
|||||||||
Total Non-Convertible Corporate Bonds |
||||||||||
(Identified Cost $374,631,706) |
384,349,721 | |||||||||
|
|
|||||||||
TOTAL CORPORATE BONDS |
||||||||||
(Identified Cost $377,088,331) |
386,787,346 | |||||||||
|
|
|||||||||
MUTUAL FUNDS - 0.5% |
||||||||||
Direxion Daily 20 Year Plus Treasury Bear 3x Shares* |
43,480 | 1,695,285 | ||||||||
ProShares Short 20+ Year Treasury* |
220,606 | 5,936,508 | ||||||||
|
|
|||||||||
TOTAL MUTUAL FUNDS |
||||||||||
(Identified Cost $8,526,303) |
7,631,793 | |||||||||
|
|
|||||||||
U.S. TREASURY SECURITIES - 3.5% |
||||||||||
U.S. Treasury Notes - 3.5% |
||||||||||
U.S. Treasury Note, 0.875%, 5/15/2017 |
35,000,000 | 35,103,915 | ||||||||
U.S. Treasury Note, 0.875%, 6/15/2017 |
25,000,000 | 25,056,650 | ||||||||
|
|
|||||||||
TOTAL U.S. TREASURY SECURITIES |
||||||||||
(Identified Cost $60,154,685) |
60,160,565 | |||||||||
|
|
The accompanying notes are an integral part of the financial statements.
51
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) | ||||||||
ASSET-BACKED SECURITIES - 0.5% |
||||||||||
Alterna Funding I LLC, Series 2014-1A, Class NOTE5, 1.639%, 2/15/2021 |
1,440,247 | $ | 1,442,047 | |||||||
AmeriCredit Automobile Receivables Trust, Series 2012-5, Class A3, 0.62%, 6/8/2017 |
560,299 | 560,455 | ||||||||
Enterprise Fleet Financing LLC, Series 2014-2, Class A25, 1.05%, 3/20/2020 |
1,800,000 | 1,802,648 | ||||||||
FDIC Trust, Series 2011-R1, Class A5, 2.672%, 7/25/2026 |
897,072 | 920,145 | ||||||||
Ford Credit Auto Owner Trust, Series 2012-D, Class A3, 0.51%, 4/15/2017 |
355,321 | 355,329 | ||||||||
Hertz Vehicle Financing LLC, Series 2009-2A, Class A25, 5.29%, 3/25/2016 |
279,167 | 281,952 | ||||||||
Hertz Vehicle Financing LLC, Series 2010-1A, Class A25, 3.74%, 2/25/2017 |
690,000 | 711,838 | ||||||||
SpringCastle America Funding LLC, Series 2014-AA, Class A5, 2.70%, 5/25/2023 |
2,500,000 | 2,501,930 | ||||||||
|
|
|||||||||
TOTAL ASSET-BACKED SECURITIES |
||||||||||
(Identified Cost $8,521,538) |
8,576,344 | |||||||||
|
|
|||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES - 4.1% |
||||||||||
Americold LLC Trust, Series 2010-ARTA, Class A15, 3.847%, 1/14/2029 |
282,835 | 296,629 | ||||||||
Banc of America Commercial Mortgage Trust, Series 2006-2, Class A46, 5.918%, 5/10/2045 |
1,005,000 | 1,056,262 | ||||||||
Banc of America Commercial Mortgage Trust, Series 2006-4, Class A4, 5.634%, 7/10/2046 |
1,052,214 | 1,111,456 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR9, Class A4A, 4.871%, 9/11/2042 |
875,340 | 893,140 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW12, Class A46, 5.891%, 9/11/2038 |
751,416 | 795,918 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW13, Class A4, 5.54%, 9/11/2041 |
1,101,507 | 1,168,261 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T24, Class AM6, 5.568%, 10/12/2041 |
1,600,000 | 1,712,366 | ||||||||
CFCRE Commercial Mortgage Trust, Series 2011-C1, Class A25, 3.759%, 4/15/2044 |
514,472 | 532,106 | ||||||||
Citigroup - Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A46, 5.40%, 7/15/2044 |
1,005,950 | 1,028,798 | ||||||||
Commercial Mortgage Pass-Through Certificates, Series 2010-C1, Class A15, 3.156%, 7/10/2046 |
364,194 | 369,253 | ||||||||
Commercial Mortgage Trust, Series 2006-GG7, Class A46, 6.014%, 7/10/2038 |
579,457 | 613,569 | ||||||||
Credit Suisse Mortgage Capital Trust, Series 2013-IVR3, Class A15,6, 2.50%, 5/25/2043 |
1,986,893 | 1,890,651 | ||||||||
Credit Suisse Mortgage Capital Trust, Series 2013-TH1, Class A15,6, 2.13%, 2/25/2043 |
1,798,951 | 1,675,666 | ||||||||
DB-UBS Mortgage Trust, Series 2011-LC1A, Class A15, 3.742%, 11/10/2046 |
497,907 | 512,965 | ||||||||
Extended Stay America Trust, Series 2013-ESH7, Class A275, 2.958%, 12/5/2031 |
1,875,000 | 1,903,095 | ||||||||
Fannie Mae Interest Strip, Series 402, Class 3 (IO), 4.00%, 11/25/2039 |
7,718,580 | 1,487,252 | ||||||||
Fannie Mae Interest Strip, Series 406, Class 7 (IO), 4.50%, 1/25/2041 |
7,049,748 | 1,436,925 | ||||||||
Fannie Mae Interest Strip, Series 409, Class C15 (IO), 4.00%, 11/25/2039 |
6,444,764 | 1,263,861 | ||||||||
Fannie Mae Interest Strip, Series 413, Class C32 (IO), 4.00%, 1/25/2039 |
7,909,429 | 1,530,886 | ||||||||
Fannie Mae Multifamily REMIC Trust, Series 2012-M13, Class ASQ2, 1.246%, 8/25/2017 |
1,462,045 | 1,465,120 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K009, Class X1 (IO)6, 1.634%, 8/25/2020 |
19,237,263 | 1,223,644 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K014, Class X1 (IO)6, 1.419%, 4/25/2021 |
8,923,561 | 596,040 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K016, Class X1 (IO)6, 1.722%, 10/25/2021 |
5,896,748 | 515,617 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K017, Class X1 (IO)6, 1.582%, 12/25/2021 |
9,092,720 | 732,019 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K021, Class X1 (IO)6, 1.64%, 6/25/2022 |
12,791,985 | 1,160,425 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K030, Class X1 (IO)6, 0.337%, 4/25/2023 |
65,809,570 | 1,050,584 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K032, Class X1 (IO)6, 0.237%, 5/25/2023 |
41,895,473 | 389,376 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K706, Class X1 (IO)6, 1.723%, 10/25/2018 |
8,962,909 | 490,683 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K-P01, Class A2, 1.72%, 1/25/2019 |
1,705,000 | 1,700,425 | ||||||||
Freddie Mac REMICS, Series 4125, Class SH (IO)6, 5.995%, 11/15/2042 |
11,857,315 | 2,437,581 | ||||||||
Freddie Mac REMICS, Series 4132, Class IO (IO), 4.50%, 11/15/2042 |
2,009,349 | 404,619 |
The accompanying notes are an integral part of the financial statements.
52
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (continued) |
||||||||||||||
FREMF Mortgage Trust, Series 2011-K701, Class B5,6, 4.436%, 7/25/2048 |
750,000 | $ | 789,194 | |||||||||||
FREMF Mortgage Trust, Series 2011-K702, Class B5,6, 4.936%, 4/25/2044 |
885,000 | 947,416 | ||||||||||||
FREMF Mortgage Trust, Series 2013-K28, Class X2A (IO)5, 0.10%, 6/25/2046 |
165,423,473 | 1,059,703 | ||||||||||||
FREMF Mortgage Trust, Series 2013-K502, Class B5,6, 2.841%, 3/25/2045 |
2,135,000 | 2,159,700 | ||||||||||||
FREMF Mortgage Trust, Series 2013-K712, Class B5,6, 3.484%, 5/25/2045 |
885,000 | 892,351 | ||||||||||||
FREMF Mortgage Trust, Series 2014-K716, Class B5,6, 4.086%, 8/25/2047 |
1,285,000 | 1,315,366 | ||||||||||||
Ginnie Mae, Series 2009-121, Class QI (IO), 4.50%, 12/20/2039 |
3,571,874 | 775,382 | ||||||||||||
Ginnie Mae, Series 2012-50, Class IO (IO), 4.00%, 4/20/2042 |
2,786,735 | 441,254 | ||||||||||||
GS Mortgage Securities Corp. II, Series 2010-C2, Class A15, 3.849%, 12/10/2043 |
965,280 | 1,001,083 | ||||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-CB13, Class A46, 5.419%, 1/12/2043 |
1,750,000 | 1,805,582 | ||||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-CB13, Class AM6, 5.46%, 1/12/2043 |
495,000 | 512,159 | ||||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP5, Class A46, 5.404%, 12/15/2044 |
475,000 | 487,866 | ||||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP7, Class A46, 6.057%, 4/15/2045 |
1,670,000 | 1,760,272 | ||||||||||||
JP Morgan Mortgage Trust, Series 2013-1, Class 1A25,6, 3.00%, 3/25/2043 |
1,513,255 | 1,498,359 | ||||||||||||
JP Morgan Mortgage Trust, Series 2013-2, Class A25,6, 3.50%, 5/25/2043 |
1,736,764 | 1,760,688 | ||||||||||||
JP Morgan Mortgage Trust, Series 2014-2, Class 1A15,6, 3.00%, 6/25/2029 |
1,982,453 | 2,032,349 | ||||||||||||
Morgan Stanley Capital I Trust, Series 2005-IQ10, Class A4A6, 5.23%, 9/15/2042 |
311,128 | 317,795 | ||||||||||||
Morgan Stanley Capital I Trust, Series 2011-C1, Class A25, 3.884%, 9/15/2047 |
800,000 | 821,586 | ||||||||||||
Motel 6 Trust, Series 2012-MTL6, Class A25, 1.948%, 10/5/2025 |
1,170,000 | 1,168,848 | ||||||||||||
OBP Depositor LLC Trust, Series 2010-OBP, Class A5, 4.646%, 7/15/2045 |
115,000 | 127,619 | ||||||||||||
Resource Capital Corp., Series 2013-CRE1, Class A (Cayman Islands)5,6, 1.455%, 12/15/2028 |
886,293 | 886,892 | ||||||||||||
SCG Trust, Series 2013-SRP1, Class AJ5,6, 2.105%, 11/15/2026 |
3,550,000 | 3,560,856 | ||||||||||||
Sequoia Mortgage Trust, Series 2013-2, Class A16, 1.874%, 2/25/2043 |
1,476,455 | 1,321,888 | ||||||||||||
Sequoia Mortgage Trust, Series 2013-7, Class A26, 3.00%, 6/25/2043 |
1,256,337 | 1,230,621 | ||||||||||||
Sequoia Mortgage Trust, Series 2013-8, Class A16, 3.00%, 6/25/2043 |
1,690,359 | 1,659,652 | ||||||||||||
Vornado DP LLC Trust, Series 2010-VNO, Class A2FX5, 4.004%, 9/13/2028 |
350,000 | 376,080 | ||||||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2005-C21, Class A46, 5.417%, 10/15/2044 |
507,359 | 520,283 | ||||||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class AM6, 5.494%, 12/15/2044 |
1,150,000 | 1,194,367 | ||||||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C26, Class A36, 6.011%, 6/15/2045 |
850,000 | 903,142 | ||||||||||||
Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class A25, 4.393%, 11/15/2043 |
545,000 | 593,718 | ||||||||||||
WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class A25, 3.791%, 2/15/2044 |
940,000 | 965,699 | ||||||||||||
WF-RBS Commercial Mortgage Trust, Series 2013-C11, Class A2, 2.029%, 3/15/2045 |
1,950,000 | 1,972,211 | ||||||||||||
|
|
|||||||||||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES |
|
|||||||||||||
(Identified Cost $71,845,157) |
70,305,173 | |||||||||||||
|
|
|||||||||||||
FOREIGN GOVERNMENT BONDS - 1.4% |
||||||||||||||
Bonos de la Tesoreria de la Republicaen pesos (Chile), 6.00%, 1/1/2018 |
CLP | 790,000,000 | 1,496,285 | |||||||||||
Brazil Notas do Tesouro Nacional (Brazil), 10.00%, 1/1/2019 |
BRL | 1,250,000 | 485,222 | |||||||||||
Brazilian Government International Bond (Brazil), 8.875%, 10/14/2019 |
800,000 | 1,028,000 | ||||||||||||
Canada Housing Trust No. 1 (Canada)5, 4.10%, 12/15/2018 |
CAD | 390,000 | 379,044 | |||||||||||
Canadian Government Bond (Canada), 1.50%, 9/1/2017 |
CAD | 1,600,000 | 1,432,668 | |||||||||||
Indonesia Treasury Bond (Indonesia), 7.875%, 4/15/2019 |
IDR | 12,000,000,000 | 993,959 | |||||||||||
Ireland Government Bond (Ireland), 5.00%, 10/18/2020 |
EUR | 300,000 | 465,234 | |||||||||||
Italy Buoni Poliennali Del Tesoro (Italy), 5.50%, 9/1/2022 |
EUR | 630,000 | 987,960 | |||||||||||
Italy Buoni Poliennali Del Tesoro (Italy), 5.50%, 11/1/2022 |
EUR | 760,000 | 1,192,834 |
The accompanying notes are an integral part of the financial statements.
53
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||||||
FOREIGN GOVERNMENT BONDS (continued) |
||||||||||||||
Japan Government Five Year Bond (Japan), 0.30%, 12/20/2016 |
JPY | 101,000,000 | $ | 904,193 | ||||||||||
Korea Treasury Bond (South Korea), 4.50%, 3/10/2015 |
KRW | 950,000,000 | 896,379 | |||||||||||
Korea Treasury Bond (South Korea), 2.75%, 6/10/2016 |
KRW | 470,000,000 | 444,195 | |||||||||||
Malaysia Government Bond (Malaysia), 3.172%, 7/15/2016 |
MYR | 4,335,000 | 1,311,126 | |||||||||||
Malaysia Government Bond (Malaysia), 4.262%, 9/15/2016 |
MYR | 3,205,000 | 987,738 | |||||||||||
Mexican Government Bond (Mexico), 8.00%, 12/17/2015 |
MXN | 26,195,000 | 2,046,065 | |||||||||||
Mexican Government Bond (Mexico), 7.25%, 12/15/2016 |
MXN | 6,000,000 | 476,583 | |||||||||||
Mexican Government Bond (Mexico), 5.00%, 6/15/2017 |
MXN | 9,500,000 | 721,869 | |||||||||||
Mexican Government Bond (Mexico), 8.00%, 6/11/2020 |
MXN | 9,900,000 | 832,831 | |||||||||||
Mexican Government Bond (Mexico), 6.50%, 6/10/2021 |
MXN | 4,000,000 | 312,259 | |||||||||||
Mexican Government Bond (Mexico), 6.50%, 6/9/2022 |
MXN | 6,500,000 | 505,278 | |||||||||||
Mexican Government Bond (Mexico), 7.75%, 5/29/2031 |
MXN | 1,250,000 | 103,474 | |||||||||||
Russian Foreign Bond - Eurobond (Russia)5, 5.00%, 4/29/2020 |
700,000 | 721,084 | ||||||||||||
Singapore Government Bond (Singapore), 2.50%, 6/1/2019 |
SGD | 855,000 | 700,858 | |||||||||||
Spain Government Bond (Spain), 4.50%, 1/31/2018 |
EUR | 325,000 | 455,200 | |||||||||||
Spain Government Bond (Spain), 4.00%, 4/30/2020 |
EUR | 515,000 | 742,189 | |||||||||||
Spain Government Bond (Spain)5, 5.40%, 1/31/2023 |
EUR | 760,000 | 1,217,634 | |||||||||||
United Kingdom Gilt (United Kingdom), 2.00%, 1/22/2016 |
GBP | 800,000 | 1,301,933 | |||||||||||
United Kingdom Gilt (United Kingdom), 1.00%, 9/7/2017 |
GBP | 380,000 | 607,543 | |||||||||||
United Kingdom Gilt (United Kingdom), 5.00%, 3/7/2018 |
GBP | 475,000 | 855,915 | |||||||||||
|
|
|||||||||||||
TOTAL FOREIGN GOVERNMENT BONDS |
||||||||||||||
(Identified Cost $24,792,688) |
24,605,552 | |||||||||||||
|
|
|||||||||||||
MUNICIPAL BONDS - 0.1% |
||||||||||||||
Puerto Rico Sales Tax Financing Corp., Public Impt., Series A, Revenue Bond, 5.50%, 8/1/2022 |
600,000 | 525,540 | ||||||||||||
Puerto Rico Sales Tax Financing Corp., Public Impt., Series A, Revenue Bond, 5.50%, 8/1/2023 |
2,000,000 | 1,729,080 | ||||||||||||
|
|
|||||||||||||
TOTAL MUNICIPAL BONDS |
||||||||||||||
(Identified Cost $2,375,417) |
2,254,620 | |||||||||||||
|
|
|||||||||||||
U.S. GOVERNMENT AGENCIES - 12.2% |
||||||||||||||
Mortgage-Backed Securities - 5.6% |
||||||||||||||
Fannie Mae, Pool #888468, 5.50%, 9/1/2021 |
1,097,394 | 1,199,841 | ||||||||||||
Fannie Mae, Pool #995233, 5.50%, 10/1/2021 |
81,275 | 88,874 | ||||||||||||
Fannie Mae, Pool #888017, 6.00%, 11/1/2021 |
106,275 | 116,765 | ||||||||||||
Fannie Mae, Pool #995329, 5.50%, 12/1/2021 |
754,178 | 828,280 | ||||||||||||
Fannie Mae, Pool #888136, 6.00%, 12/1/2021 |
134,522 | 147,862 | ||||||||||||
Fannie Mae, Pool #888810, 5.50%, 11/1/2022 |
1,297,070 | 1,424,734 | ||||||||||||
Fannie Mae, Pool #AD0462, 5.50%, 10/1/2024 |
79,782 | 87,922 | ||||||||||||
Fannie Mae, Pool #AO6562, 3.00%, 6/1/2027 |
237,245 | 246,796 | ||||||||||||
Fannie Mae, Pool #AP0000, 3.50%, 7/1/2027 |
532,275 | 563,458 | ||||||||||||
Fannie Mae, Pool #AB7722, 3.50%, 1/1/2028 |
364,126 | 385,113 | ||||||||||||
Fannie Mae, Pool #AR5986, 3.00%, 2/1/2028 |
138,764 | 144,591 | ||||||||||||
Fannie Mae, Pool #AB8457, 3.50%, 2/1/2028 |
643,763 | 680,868 | ||||||||||||
Fannie Mae, Pool #AR6002, 3.00%, 3/1/2028 |
230,563 | 240,033 | ||||||||||||
Fannie Mae, Pool #AR8950, 3.00%, 3/1/2028 |
332,159 | 345,344 | ||||||||||||
Fannie Mae, Pool #MA1423, 3.50%, 4/1/2028 |
146,636 | 155,087 | ||||||||||||
Fannie Mae, Pool #AT8059, 2.50%, 7/1/2028 |
1,327,541 | 1,352,986 | ||||||||||||
Fannie Mae, Pool #AU1270, 2.50%, 7/1/2028 |
748,383 | 762,726 | ||||||||||||
Fannie Mae, Pool #AU1783, 2.50%, 8/1/2028 |
840,575 | 856,687 | ||||||||||||
Fannie Mae, Pool #AS0945, 2.50%, 11/1/2028 |
1,036,779 | 1,056,652 | ||||||||||||
Fannie Mae, Pool #MA1834, 4.50%, 2/1/2034 |
1,447,439 | 1,580,008 | ||||||||||||
Fannie Mae, Pool #MA1903, 4.50%, 5/1/2034 |
1,267,339 | 1,383,548 | ||||||||||||
Fannie Mae, Pool #745418, 5.50%, 4/1/2036 |
1,674,164 | 1,872,399 | ||||||||||||
Fannie Mae, Pool #888021, 6.00%, 12/1/2036 |
257,638 | 291,712 | ||||||||||||
Fannie Mae, Pool #909786, 5.50%, 3/1/2037 |
438,368 | 489,007 | ||||||||||||
Fannie Mae, Pool #256673, 5.50%, 4/1/2037 |
1,865,975 | 2,084,364 | ||||||||||||
Fannie Mae, Pool #995050, 6.00%, 9/1/2037 |
557,097 | 631,815 | ||||||||||||
Fannie Mae, Pool #AB8161, 6.00%, 12/1/2037 |
1,924,441 | 2,185,686 | ||||||||||||
Fannie Mae, Pool #933731, 5.50%, 4/1/2038 |
1,079,760 | 1,204,492 |
The accompanying notes are an integral part of the financial statements.
54
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||
U.S. GOVERNMENT AGENCIES (continued) |
||||||||||
Mortgage-Backed Securities (continued) |
||||||||||
Fannie Mae, Pool #889576, 6.00%, 4/1/2038 |
1,160,590 | $ | 1,313,657 | |||||||
Fannie Mae, Pool #889624, 5.50%, 5/1/2038 |
1,226,366 | 1,368,033 | ||||||||
Fannie Mae, Pool #889579, 6.00%, 5/1/2038 |
1,135,108 | 1,284,028 | ||||||||
Fannie Mae, Pool #889575, 6.00%, 6/1/2038 |
724,493 | 819,258 | ||||||||
Fannie Mae, Pool #995196, 6.00%, 7/1/2038 |
3,263,192 | 3,694,667 | ||||||||
Fannie Mae, Pool #AD0119, 6.00%, 7/1/2038 |
858,443 | 970,356 | ||||||||
Fannie Mae, Pool #AD0207, 6.00%, 10/1/2038 |
436,947 | 494,338 | ||||||||
Fannie Mae, Pool #AD0220, 6.00%, 10/1/2038 |
139,808 | 158,396 | ||||||||
Fannie Mae, Pool #890294, 5.50%, 1/1/2039 |
2,665,582 | 2,973,544 | ||||||||
Fannie Mae, Pool #AD0307, 5.50%, 1/1/2039 |
1,230,889 | 1,373,079 | ||||||||
Fannie Mae, Pool #AD0258, 5.50%, 3/1/2039 |
702,688 | 784,315 | ||||||||
Fannie Mae, Pool #AA7681, 4.50%, 6/1/2039 |
1,669,262 | 1,814,136 | ||||||||
Fannie Mae, Pool #AD0527, 5.50%, 6/1/2039 |
382,685 | 426,892 | ||||||||
Fannie Mae, Pool #MA0258, 4.50%, 12/1/2039 |
2,486,061 | 2,700,983 | ||||||||
Fannie Mae, Pool #890326, 5.50%, 1/1/2040 |
3,052,610 | 3,405,241 | ||||||||
Fannie Mae, Pool #AL1595, 6.00%, 1/1/2040 |
2,086,815 | 2,358,868 | ||||||||
Fannie Mae, Pool #AE0061, 6.00%, 2/1/2040 |
1,533,314 | 1,733,208 | ||||||||
Fannie Mae, Pool #AL0152, 6.00%, 6/1/2040 |
2,706,365 | 3,059,187 | ||||||||
Fannie Mae, Pool #AL2581, 6.00%, 6/1/2040 |
1,578,634 | 1,787,389 | ||||||||
Fannie Mae, Pool #890519, 6.00%, 10/1/2040 |
3,855,293 | 4,365,849 | ||||||||
Fannie Mae, Pool #AE0951, 4.50%, 2/1/2041 |
1,571,149 | 1,708,410 | ||||||||
Fannie Mae, Pool #AH9054, 4.50%, 4/1/2041 |
673,671 | 731,750 | ||||||||
Fannie Mae, Pool #AI2468, 4.50%, 5/1/2041 |
506,215 | 549,774 | ||||||||
Fannie Mae, Pool #AL0160, 4.50%, 5/1/2041 |
1,643,000 | 1,785,569 | ||||||||
Fannie Mae, Pool #AJ1415, 4.50%, 9/1/2041 |
397,999 | 431,964 | ||||||||
Fannie Mae, Pool #AL3454, 3.00%, 4/1/2043 |
1,343,464 | 1,351,917 | ||||||||
Fannie Mae, Pool #AT3045, 3.00%, 4/1/2043 |
318,217 | 320,220 | ||||||||
Fannie Mae, Pool #AB9782, 3.00%, 7/1/2043 |
735,602 | 739,772 | ||||||||
Fannie Mae, Pool #MA1489, 3.00%, 7/1/2043 |
671,409 | 672,721 | ||||||||
Freddie Mac, Pool #G11850, 5.50%, 7/1/2020 |
427,119 | 455,503 | ||||||||
Freddie Mac, Pool #G12610, 6.00%, 3/1/2022 |
129,816 | 142,742 | ||||||||
Freddie Mac, Pool #G12655, 6.00%, 5/1/2022 |
95,087 | 104,336 | ||||||||
Freddie Mac, Pool #G12988, 6.00%, 1/1/2023 |
72,477 | 80,103 | ||||||||
Freddie Mac, Pool #G13078, 6.00%, 3/1/2023 |
130,073 | 143,697 | ||||||||
Freddie Mac, Pool #G13331, 5.50%, 10/1/2023 |
56,917 | 62,138 | ||||||||
Freddie Mac, Pool #J22427, 3.00%, 2/1/2028 |
263,366 | 273,395 | ||||||||
Freddie Mac, Pool #G14708, 3.50%, 2/1/2028 |
372,936 | 394,412 | ||||||||
Freddie Mac, Pool #C91754, 4.50%, 2/1/2034 |
1,507,607 | 1,644,313 | ||||||||
Freddie Mac, Pool #C91762, 4.50%, 4/1/2034 |
1,926,518 | 2,097,079 | ||||||||
Freddie Mac, Pool #G03332, 6.00%, 10/1/2037 |
155,550 | 175,534 | ||||||||
Freddie Mac, Pool #G03696, 5.50%, 1/1/2038 |
338,093 | 376,750 | ||||||||
Freddie Mac, Pool #G03781, 6.00%, 1/1/2038 |
702,316 | 792,545 | ||||||||
Freddie Mac, Pool #G03926, 6.00%, 2/1/2038 |
824,402 | 930,428 | ||||||||
Freddie Mac, Pool #G04264, 5.50%, 4/1/2038 |
1,466,288 | 1,636,269 | ||||||||
Freddie Mac, Pool #G04731, 5.50%, 4/1/2038 |
782,534 | 873,535 | ||||||||
Freddie Mac, Pool #G08273, 5.50%, 6/1/2038 |
928,800 | 1,037,441 | ||||||||
Freddie Mac, Pool #G05956, 5.50%, 7/1/2038 |
1,125,454 | 1,254,336 | ||||||||
Freddie Mac, Pool #G04587, 5.50%, 8/1/2038 |
2,567,507 | 2,859,555 | ||||||||
Freddie Mac, Pool #G05671, 5.50%, 8/1/2038 |
599,518 | 669,185 | ||||||||
Freddie Mac, Pool #G05409, 5.50%, 3/1/2039 |
1,095,630 | 1,223,054 | ||||||||
Freddie Mac, Pool #A86522, 4.50%, 5/1/2039 |
2,479,896 | 2,686,457 | ||||||||
Freddie Mac, Pool #G06021, 5.50%, 1/1/2040 |
436,636 | 487,052 | ||||||||
Freddie Mac, Pool #G05923, 5.50%, 2/1/2040 |
419,019 | 467,729 | ||||||||
Freddie Mac, Pool #G05900, 6.00%, 3/1/2040 |
631,798 | 712,967 | ||||||||
Freddie Mac, Pool #G05906, 6.00%, 4/1/2040 |
389,636 | 440,447 | ||||||||
Freddie Mac, Pool #G07589, 5.50%, 6/1/2041 |
1,271,967 | 1,418,889 |
The accompanying notes are an integral part of the financial statements.
55
Investment Portfolio - October 31, 2014
PRO-BLEND® MODERATE TERM SERIES |
PRINCIPAL AMOUNT4/
SHARES/ |
VALUE (NOTE 2) |
||||||||
U.S. GOVERNMENT AGENCIES (continued) |
||||||||||
Mortgage-Backed Securities (continued) |
||||||||||
Freddie Mac, Pool #C09026, 2.50%, 2/1/2043 |
1,382,661 | $ | 1,332,492 | |||||||
Freddie Mac, Pool #V80002, 2.50%, 4/1/2043 |
1,724,747 | 1,662,146 | ||||||||
Freddie Mac, Pool #Q19115, 3.00%, 6/1/2043 |
713,667 | 718,601 | ||||||||
Ginnie Mae, Pool #263096, 9.50%, 3/15/2020 |
1,150 | 1,161 | ||||||||
|
|
|||||||||
Total Mortgage-Backed Securities |
||||||||||
(Identified Cost $92,142,445) |
94,739,462 | |||||||||
|
|
|||||||||
Other Agencies - 6.6% |
||||||||||
Fannie Mae, 1.375%, 11/15/2016 |
6,000,000 | 6,090,516 | ||||||||
Fannie Mae, 0.875%, 8/28/2017 |
45,000,000 | 44,889,570 | ||||||||
Fannie Mae, 1.625%, 11/27/2018 |
15,400,000 | 15,470,440 | ||||||||
Federal Home Loan Banks, Series 1, 0.875%, 5/24/2017 |
15,000,000 | 14,988,570 | ||||||||
Freddie Mac, 1.25%, 5/12/2017 |
19,000,000 | 19,180,272 | ||||||||
Freddie Mac, 3.75%, 3/27/2019 |
11,000,000 | 11,987,217 | ||||||||
|
|
|||||||||
Total Other Agencies |
||||||||||
(Identified Cost $112,280,162) |
112,606,585 | |||||||||
|
|
|||||||||
TOTAL U.S. GOVERNMENT AGENCIES |
||||||||||
(Identified Cost $204,422,607) |
207,346,047 | |||||||||
|
|
|||||||||
U.S. GOVERNMENT SECURITIES - 3.7% |
||||||||||
U.S. Treasury Bills - 3.7% |
||||||||||
U.S. Treasury Bill8,9, 0.09%, 7/23/2015 |
||||||||||
(Identified Cost $62,585,411) |
62,625,000 | 62,588,552 | ||||||||
|
|
|||||||||
SHORT-TERM INVESTMENT - 2.4% |
||||||||||
Dreyfus Cash Management, Inc. - Institutional Shares10, 0.03%, |
||||||||||
(Identified Cost $40,993,499) |
40,993,499 | 40,993,499 | ||||||||
|
|
|||||||||
TOTAL INVESTMENTS - 98.8% |
||||||||||
(Identified Cost $1,593,361,549) |
1,685,608,547 | |||||||||
OTHER ASSETS, LESS LIABILITIES - 1.2% |
20,348,448 | |||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 1,705,956,995 | ||||||||
|
|
|||||||||
CALL OPTIONS WRITTEN - 0.0%## |
||||||||||
Twenty-First Century Fox, Inc. - Class A, Strike $33.00, Expiring |
||||||||||
(Premiums Received $317,426) |
2,968 | $ | (596,568 | ) | ||||||
|
|
|||||||||
PUT OPTIONS WRITTEN - 0.0%## |
||||||||||
Amazon.com, Inc., Strike $260.00, Expiring November 22, 2014, |
277 | (7,756 | ) | |||||||
Facebook, Inc. - Class A, Strike $66.00, Expiring November 22, 2014, |
948 | (13,272 | ) | |||||||
Google, Inc. - Class A, Strike $490.00, Expiring November 22, 2014, |
114 | (2,052 | ) | |||||||
Google, Inc. - Class C, Strike $490.00, Expiring November 22, 2014, |
117 | (2,574 | ) | |||||||
Time Warner, Inc., Strike $74.00, Expiring November 7, 2014, |
514 | (1,542 | ) | |||||||
|
|
|||||||||
TOTAL PUT OPTIONS WRITTEN |
||||||||||
(Premiums Received $144,118) |
(27,196 | ) | ||||||||
|
|
FUTURES CONTRACTS: LONG POSITIONS OPEN AT OCTOBER 31, 2014: | ||||||||||||||||
CONTRACTS PURCHASED |
ISSUE | EXCHANGE | EXPIRATION | NOTIONAL VALUE4 | UNREALIZED APPRECIATION (DEPRECIATION) |
|||||||||||
4,102 |
U.S. Treasury Notes (2 Year) |
CBOT | December 2014 | 900,645,375 | $ | 2,392,349 | ||||||||||
455 |
U.S. Treasury Notes (5 Year) |
CBOT | December 2014 | 54,340,508 | (81,007 | ) | ||||||||||
94 |
U.S. Ultra Treasury Bonds |
CBOT | December 2014 | 14,740,375 | 134,593 | |||||||||||
1,194 |
Euro Dollar Futures | CME | June 2015 | 297,335,850 | 131,843 | |||||||||||
|
|
|||||||||||||||
Total |
2,577,778 | |||||||||||||||
|
|
The accompanying notes are an integral part of the financial statements.
56
Investment Portfolio - October 31, 2014
FUTURES CONTRACTS: SHORT POSITIONS OPEN AT OCTOBER 31, 2014: | ||||||||||||||
CONTRACTS SOLD |
ISSUE | EXCHANGE | EXPIRATION | NOTIONAL VALUE4 | UNREALIZED DEPRECIATION |
|||||||||
404 |
U.S. Treasury Bonds (30 Year) |
CBOT | December 2014 | 57,001,875 | $ | (710,695 | ) | |||||||
470 |
U.S. Treasury Notes (10 Year) |
CBOT | December 2014 | 59,388,906 | (215,588 | ) | ||||||||
163 |
Euro Dollar Futures | CME | June 2016 | 40,210,063 | (96,616 | ) | ||||||||
355 |
Euro Dollar Futures | CME | September 2016 | 87,347,750 | (218,482 | ) | ||||||||
330 |
Euro Dollar Futures | CME | December 2016 | 80,990,250 | (200,599 | ) | ||||||||
306 |
Euro Dollar Futures | CME | March 2017 | 74,939,400 | (179,191 | ) | ||||||||
357 |
Euro Dollar Futures | CME | June 2017 | 87,255,263 | (201,835 | ) | ||||||||
332 |
Euro Dollar Futures | CME | September 2017 | 81,012,150 | (181,027 | ) | ||||||||
333 |
Euro Dollar Futures | CME | December 2017 | 81,131,287 | (177,239 | ) | ||||||||
333 |
Euro Dollar Futures | CME | March 2018 | 81,035,550 | (187,042 | ) | ||||||||
169 |
Euro Dollar Futures | CME | June 2018 | 41,083,900 | (47,255 | ) | ||||||||
|
|
|||||||||||||
Total |
(2,415,569 | ) | ||||||||||||
|
|
ADR - American Depositary Receipt
AUD - Australian Dollar
BRL - Brazilian Real
CAD - Canadian Dollar
CBOT - Chicago Board of Trade
CLP - Chilean Peso
CME - Chicago Mercantile Exchange
EUR - Euro
GBP - British Pound
IDR - Indonesian Rupiah
IO - Interest only
JPY - Japanese Yen
KRW - South Korean Won
MXN - Mexican Peso
MYR - Malaysian Ringgit
SGD - Singapore Dollar
*Non-income producing security.
##Less than 0.1%.
1A factor from a third party vendor was applied to determine the securitys fair value following the close of local trading.
2Latest quoted sales price is not available and the latest quoted bid price was used to value the security.
3The rate shown is a fixed rate as of October 31, 2014; the rate becomes floating, based on LIBOR plus a spread, at dates ranging from 2015 to 2022.
4Amount is stated in USD unless otherwise noted.
5Restricted securities - Investment in securities that are restricted as to public resale under the Securities Act of 1933, as amended. These securities have been sold under Rule 144A and have been determined to be liquid. These securities amount to $114,463,309 or 6.7%, of the Series net assets as of October 31, 2014 (see Note 2 to the financial statements).
6The coupon rate is floating and is the effective rate as of October 31, 2014.
7Represents a Payment-In-Kind bond.
8All or a portion of security has been pledged in connection with outstanding futures contracts.
9Represents the annualized yield at time of purchase.
10Rate shown is the current yield as of October 31, 2014.
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard &Poor, a division of The McGraw-Hill Companies, Inc. (S&P), and is licensed for use by Manning & Napier when referencing GICS sectors. Neither MSCI, S&P, nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification, nor shall any such party have any liability therefrom.
The accompanying notes are an integral part of the financial statements.
57
Statement of Assets and Liabilities - Pro-Blend® Moderate Term Series
October 31, 2014
ASSETS: |
||||
Investments, at value (identified cost $1,593,361,549) (Note 2) |
$ | 1,685,608,547 | ||
Cash |
69,918 | |||
Deposits at broker for futures contracts |
22,910,822 | |||
Interest receivable |
7,018,260 | |||
Receivable for fund shares sold |
1,838,234 | |||
Receivable for securities sold |
686,777 | |||
Variation margin receivable on futures contracts |
153,566 | |||
Dividends receivable |
487,976 | |||
Foreign tax reclaims receivable |
296,419 | |||
|
|
|||
TOTAL ASSETS |
1,719,070,519 | |||
|
|
|||
LIABILITIES: |
||||
Options written, at value (premiums received $461,544) (Note 2) |
623,764 | |||
Accrued foreign capital gains tax (Note 2) |
1,363 | |||
Accrued management fees (Note 3) |
1,072,886 | |||
Accrued shareholder services fees (Class S) (Note 3) |
165,168 | |||
Accrued distribution and service (Rule 12b-1) fees (Class C) (Class R) (Note 3) |
144,618 | |||
Accrued fund accounting and administration fees (Note 3) |
85,367 | |||
Accrued transfer agent fees (Note 3) |
33,459 | |||
Accrued Chief Compliance Officer service fees (Note 3) |
407 | |||
Payable for fund shares repurchased |
6,629,180 | |||
Payable for securities purchased |
4,220,974 | |||
Other payables and accrued expenses |
136,338 | |||
|
|
|||
TOTAL LIABILITIES |
13,113,524 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 1,705,956,995 | ||
|
|
|||
NET ASSETS CONSIST OF: |
||||
Capital stock |
$ | 1,344,744 | ||
Additional paid-in-capital |
1,473,921,959 | |||
Undistributed net investment income |
7,668,172 | |||
Accumulated net realized gain on investments, foreign currency and translation of other assets and liabilities |
130,809,863 | |||
Net unrealized appreciation on investments (net of foreign capital gains tax of $1,363), foreign currency and translation of other assets and liabilities |
92,212,257 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 1,705,956,995 | ||
|
|
The accompanying notes are an integral part of the financial statements.
58
Statement of Assets and Liabilities - Pro-Blend® Moderate Term Series
October 31, 2014
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class S |
$ | 14.53 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class I |
$ | 11.40 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class C |
$ | 11.49 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class R |
$ | 11.87 | ||
|
|
The accompanying notes are an integral part of the financial statements.
59
Statement of Operations - Pro-Blend® Moderate Term Series
For the Year Ended October 31, 2014
INVESTMENT INCOME: |
||||
Interest |
$ | 23,999,780 | ||
Dividends (net of foreign taxes withheld, $529,862) |
12,395,903 | |||
|
|
|||
Total Investment Income |
36,395,683 | |||
|
|
|||
EXPENSES: |
||||
Management fees (Note 3) |
12,547,451 | |||
Shareholder services fees (Class S) (Note 3) |
2,013,772 | |||
Distribution and service (Rule 12b-1) fees (Class C) (Note 3) |
1,341,025 | |||
Fund accounting and administration fees (Note 3) |
303,797 | |||
Distribution and service (Rule 12b-1) fees (Class R) (Note 3) |
255,203 | |||
Transfer agent fees (Note 3) |
186,394 | |||
Directors fees (Note 3) |
34,574 | |||
Chief Compliance Officer service fees (Note 3) |
3,161 | |||
Custodian fees |
124,799 | |||
Miscellaneous |
325,053 | |||
|
|
|||
Total Expenses |
17,135,229 | |||
|
|
|||
NET INVESTMENT INCOME |
19,260,454 | |||
|
|
|||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: |
||||
Net realized gain (loss) on- |
||||
Investments |
134,045,497 | |||
Futures contracts |
(1,662,426 | ) | ||
Options written |
(493,887 | ) | ||
Foreign currency and translation of other assets and liabilities |
143,970 | |||
|
|
|||
132,033,154 | ||||
|
|
|||
Net change in unrealized appreciation (depreciation) on- |
||||
Investments (net of increase in accrued foreign capital gains tax of $1,077) |
(63,894,758 | ) | ||
Futures contracts |
162,209 | |||
Options written |
(162,220 | ) | ||
Foreign currency and translation of other assets and liabilities |
(56,901 | ) | ||
|
|
|||
(63,951,670 | ) | |||
|
|
|||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY |
68,081,484 | |||
|
|
|||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 87,341,938 | ||
|
|
The accompanying notes are an integral part of the financial statements.
60
Statements of Changes in Net Assets - Pro-Blend® Moderate Term Series
FOR THE YEAR 10/31/14 |
FOR THE YEAR 10/31/13 |
|||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||
OPERATIONS: |
||||||||
Net investment income |
$ | 19,260,454 | $ | 15,473,006 | ||||
Net realized gain on investments and foreign currency |
132,033,154 | 75,898,714 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency |
(63,951,670 | ) | 85,698,702 | |||||
|
|
|
|
|||||
Net increase from operations |
87,341,938 | 177,070,422 | ||||||
|
|
|
|
|||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||
From net investment income (Class S) |
(6,823,288 | ) | (6,825,953 | ) | ||||
From net investment income (Class I) |
(9,033,853 | ) | (7,658,402 | ) | ||||
From net investment income (Class C) |
(574,092 | ) | (496,170 | ) | ||||
From net investment income (Class R) |
(423,877 | ) | (402,573 | ) | ||||
From net realized gain on investments (Class S) |
(34,149,792 | ) | (17,081,557 | ) | ||||
From net realized gain on investments (Class I) |
(33,270,484 | ) | (14,914,359 | ) | ||||
From net realized gain on investments (Class C) |
(6,238,941 | ) | (2,510,618 | ) | ||||
From net realized gain on investments (Class R) |
(2,485,190 | ) | (1,165,220 | ) | ||||
|
|
|
|
|||||
Total distributions to shareholders |
(92,999,517 | ) | (51,054,852 | ) | ||||
|
|
|
|
|||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||
Net increase from capital share transactions (Note 5) |
140,904,867 | 119,728,977 | ||||||
|
|
|
|
|||||
Net increase in net assets |
135,247,288 | 245,744,547 | ||||||
NET ASSETS: |
||||||||
Beginning of year |
1,570,709,707 | 1,324,965,160 | ||||||
|
|
|
|
|||||
End of year (including undistributed net investment income of $7,668,172 and $5,302,846, respectively) |
$ | 1,705,956,995 | $ | 1,570,709,707 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
61
Financial Highlights - Pro-Blend® Moderate Term Series - Class S
FOR THE YEARS ENDED | ||||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 14.52 | $ | 13.28 | $ | 12.92 | $ | 12.94 | $ | 11.61 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1 |
0.16 | 0.14 | 0.17 | 0.22 | 0.19 | |||||||||||||||
Net realized and unrealized gain on investments |
0.59 | 1.55 | 0.77 | 0.14 | 1.28 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.75 | 1.69 | 0.94 | 0.36 | 1.47 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.12 | ) | (0.13 | ) | (0.20 | ) | (0.19 | ) | (0.14 | ) | ||||||||||
From net realized gain on investments |
(0.62 | ) | (0.32 | ) | (0.38 | ) | (0.19 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.74 | ) | (0.45 | ) | (0.58 | ) | (0.38 | ) | (0.14 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 14.53 | $ | 14.52 | $ | 13.28 | $ | 12.92 | $ | 12.94 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 788,276 | $ | 793,812 | $ | 707,222 | $ | 682,409 | $ | 633,304 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return2 |
5.47 | % | 13.07 | % | 7.73 | % | 2.78 | % | 12.81 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
1.06 | % | 1.06 | % | 1.07 | % | 1.07 | % | 1.09 | % | ||||||||||
Net investment income |
1.12 | % | 1.04 | % | 1.34 | % | 1.68 | % | 1.60 | % | ||||||||||
Series portfolio turnover |
53 | % | 52 | % | 47 | % | 52 | % | 56 | % | ||||||||||
*The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
N/A | N/A | N/A | N/A | 0.00 | %3 |
1Calculated based on average shares outstanding during the years.
2Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during certain years.
3Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
62
Financial Highlights - Pro-Blend® Moderate Term Series - Class I
FOR THE YEARS ENDED | ||||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 11.56 | $ | 10.67 | $ | 10.50 | $ | 10.60 | $ | 9.54 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1 |
0.16 | 0.14 | 0.16 | 0.20 | 0.18 | |||||||||||||||
Net realized and unrealized gain on investments |
0.46 | 1.23 | 0.62 | 0.11 | 1.06 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.62 | 1.37 | 0.78 | 0.31 | 1.24 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.16 | ) | (0.16 | ) | (0.23 | ) | (0.22 | ) | (0.18 | ) | ||||||||||
From net realized gain on investments |
(0.62 | ) | (0.32 | ) | (0.38 | ) | (0.19 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.78 | ) | (0.48 | ) | (0.61 | ) | (0.41 | ) | (0.18 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 11.40 | $ | 11.56 | $ | 10.67 | $ | 10.50 | $ | 10.60 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 719,847 | $ | 614,016 | $ | 496,286 | $ | 352,611 | $ | 294,000 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return2 |
5.73 | % | 13.34 | % | 8.06 | % | 2.93 | % | 13.13 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.81 | % | 0.81 | % | 0.82 | % | 0.82 | % | 0.84 | % | ||||||||||
Net investment income |
1.37 | % | 1.28 | % | 1.57 | % | 1.93 | % | 1.85 | % | ||||||||||
Series portfolio turnover |
53 | % | 52 | % | 47 | % | 52 | % | 56 | % | ||||||||||
* The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
N/A | N/A | N/A | N/A | 0.00 | %3 |
1Calculated based on average shares outstanding during the years.
2Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during certain years.
3Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
63
Financial Highlights - Pro-Blend® Moderate Term Series - Class C
FOR THE YEARS ENDED |
FOR THE PERIOD 1/4/101 TO 10/31/10 |
|||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | |||||||||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||||||||||
Net asset value - Beginning of period |
$ | 11.65 | $ | 10.75 | $ | 10.58 | $ | 10.69 | $ | 10.00 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income2 |
0.04 | 0.03 | 0.06 | 0.10 | 0.07 | |||||||||||||||
Net realized and unrealized gain on investments |
0.47 | 1.25 | 0.62 | 0.11 | 0.67 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.51 | 1.28 | 0.68 | 0.21 | 0.74 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.05 | ) | (0.06 | ) | (0.13 | ) | (0.13 | ) | (0.05 | ) | ||||||||||
From net realized gain on investments |
(0.62 | ) | (0.32 | ) | (0.38 | ) | (0.19 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.67 | ) | (0.38 | ) | (0.51 | ) | (0.32 | ) | (0.05 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of period |
$ | 11.49 | $ | 11.65 | $ | 10.75 | $ | 10.58 | $ | 10.69 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of period (000s omitted) |
$ | 150,654 | $ | 112,601 | $ | 81,457 | $ | 58,316 | $ | 32,019 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
4.69 | % | 12.27 | % | 6.94 | % | 1.97 | % | 7.41 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
1.81 | % | 1.81 | % | 1.82 | % | 1.82 | % | 1.84 | %4 | ||||||||||
Net investment income |
0.37 | % | 0.29 | % | 0.57 | % | 0.92 | % | 0.85 | %4 | ||||||||||
Series portfolio turnover |
53 | % | 52 | % | 47 | % | 52 | % | 56 | % | ||||||||||
*The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
N/A | N/A | N/A | N/A | 0.00 | %4,5 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Represents aggregate total return for the periods indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during the periods. Periods less than one year are not annualized.
4Annualized.
5Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
64
Financial Highlights - Pro-Blend® Moderate Term Series - Class R
FOR THE YEARS ENDED |
FOR THE PERIOD 10/31/10 |
|||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | |||||||||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||||||||||
Net asset value - Beginning of period |
$ | 12.00 | $ | 11.06 | $ | 10.88 | $ | 10.99 | $ | 10.00 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income2 |
0.10 | 0.09 | 0.11 | 0.11 | 0.02 | |||||||||||||||
Net realized and unrealized gain on investments |
0.49 | 1.28 | 0.65 | 0.16 | 0.97 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.59 | 1.37 | 0.76 | 0.27 | 0.99 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.10 | ) | (0.11 | ) | (0.20 | ) | (0.19 | ) | | |||||||||||
From net realized gain on investments |
(0.62 | ) | (0.32 | ) | (0.38 | ) | (0.19 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.72 | ) | (0.43 | ) | (0.58 | ) | (0.38 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of period |
$ | 11.87 | $ | 12.00 | $ | 11.06 | $ | 10.88 | $ | 10.99 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of period (000s omitted) |
$ | 47,180 | $ | 50,280 | $ | 39,999 | $ | 18,554 | $ | 237 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
5.24 | % | 12.77 | % | 7.48 | % | 2.50 | % | 9.90 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses |
1.31 | % | 1.31 | % | 1.33 | % | 1.32 | % | 1.34 | %4 | ||||||||||
Net investment income |
0.87 | % | 0.80 | % | 1.04 | % | 1.05 | % | 0.65 | %4 | ||||||||||
Series portfolio turnover |
53 | % | 52 | % | 47 | % | 52 | % | 56 | % |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Represents aggregate total return for the periods indicated, and assumes reinvestment of all distributions. Periods less than one year are not annualized.
4Annualized.
The accompanying notes are an integral part of the financial statements.
65
Performance Update - Pro-Blend® Extended Term Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 | ||||||||||||||||
ONE YEAR1 |
FIVE YEAR |
TEN YEAR |
SINCE INCEPTION2 |
|||||||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Extended Term |
7.08 | % | 10.14 | % | 7.48 | % | 8.85 | % | ||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Extended Term |
7.32 | % | 10.40 | % | 7.65 | % | 8.94 | % | ||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Extended Term |
6.28 | % | 9.35 | % | 6.71 | % | 8.11 | % | ||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Extended Term |
6.81 | % | 9.85 | % | 7.22 | % | 8.63 | % | ||||||||
Barclays U.S. Aggregate Bond Index6 |
4.14 | % | 4.22 | % | 4.64 | % | 5.69 | % | ||||||||
40/15/45 Blended Index7 |
8.23 | % | 9.80 | % | 6.88 | % | 7.52 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc. - Pro-Blend® Extended Term Series - Class S for the ten years ended October 31, 2014 to the Barclays U.S. Aggregate Bond Index and the 40/15/45 Blended Index.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series are calculated from October 12, 1993, the Class S inception date. The Barclays U.S. Aggregate Bond Index only publishes month-end numbers; therefore, performance numbers for the Indices are calculated from October 31, 1993.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 1.06% for Class S, 0.81% for Class I, 1.81% for Class C and 1.31% for Class R. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 1.06% for Class S, 0.81% for Class I, 1.81% for Class C and 1.31% for Class R for the year ended October 31, 2014.
4For the periods through the inception of Class I on March 28, 2008, performance is based on the hypothetical performance of Class S shares. Because Class I shares invest in the same portfolio of securities as Class S, performance will only be different to the extent that the Class S shares have a higher expense ratio.
5For periods through the inception of Class C on January 4, 2010, and Class R on June 30, 2010, the performance figures are hypothetical and reflect the performance of the Manning & Napier Fund, Inc. - Pro-Blend® Extended Term Series - Class S adjusted for expense differences.
6The Barclays U.S. Aggregate Bond Index is an unmanaged, market-value weighted index of U.S. domestic investment-grade debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more. Index returns do not reflect any fees or expenses. Index returns provided by Interactive Data.
66
Performance Update - Pro-Blend® Extended Term Series
(unaudited)
7The 40/15/45 Blended Index is 40% Russell 3000® Index (Russell 3000), 15% MSCI ACWI ex USA Index (ACWIxUS), and 45% Barclays U.S. Aggregate Bond Index (BAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns assume daily investment of gross dividends (which do not account for applicable dividend taxation) prior to 12/31/1998, as net returns were not available. Subsequent to 12/31/1998, the Index returns are net of withholding taxes. They assume daily reinvestment of net dividends, thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB is an unmanaged index that represents the U.S. domestic investment-grade bond market. It is a market value-weighted index of investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities of one year or more. Index returns provided by Interactive Data. The returns of the indices do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the Series asset allocation will vary over time, the composition of the Series portfolio may not match the composition of the comparative Indices.
67
Shareholder Expense Example - Pro-Blend® Extended Term Series
(unaudited)
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/14* |
ANNUALIZED EXPENSE RATIO | |||||
Class S |
||||||||
Actual |
$1,000.00 | $1,011.50 | $5.37 | 1.06% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,019.86 | $5.40 | 1.06% | ||||
Class I |
||||||||
Actual |
$1,000.00 | $1,012.20 | $4.11 | 0.81% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,021.12 | $4.13 | 0.81% | ||||
Class C |
||||||||
Actual |
$1,000.00 | $1,007.60 | $9.16 | 1.81% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,016.08 | $9.20 | 1.81% | ||||
Class R |
||||||||
Actual |
$1,000.00 | $1,010.50 | $6.64 | 1.31% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,018.60 | $6.67 | 1.31% |
*Expenses are equal to the Class annualized expense ratio (for the six-month period), multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period. Expenses are based on the most recent fiscal year; therefore, the expense ratios stated above may differ from the expense ratios stated in the financial highlights, which are based on one-year data.
68
Portfolio Composition - Pro-Blend® Extended Term Series
As of October 31, 2014 (unaudited)
69
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS - 62.7% |
||||||||||
Consumer Discretionary - 16.3% |
||||||||||
Auto Components - 0.1% |
||||||||||
F.C.C. Co. Ltd. (Japan)1 |
20,000 | $ | 340,377 | |||||||
Halla Holdings Corp. (South Korea)1 |
2,004 | 132,512 | ||||||||
Hankook Tire Co. Ltd. (South Korea)1 |
13,890 | 715,666 | ||||||||
Mando Corp. (South Korea)*1 |
2,186 | 412,152 | ||||||||
Musashi Seimitsu Industry Co. Ltd. (Japan)1 |
12,300 | 241,471 | ||||||||
Nissin Kogyo Co. Ltd. (Japan)1 |
16,600 | 256,559 | ||||||||
|
|
|||||||||
2,098,737 | ||||||||||
|
|
|||||||||
Automobiles - 0.0%## |
||||||||||
Hyundai Motor Co. (South Korea)1 |
2,130 | 337,992 | ||||||||
Toyota Motor Corp. (Japan)1 |
3,400 | 204,602 | ||||||||
|
|
|||||||||
542,594 | ||||||||||
|
|
|||||||||
Diversified Consumer Services - 0.8% |
||||||||||
Apollo Education Group, Inc.* |
413,205 | 11,842,455 | ||||||||
Kroton Educacional S.A. (Brazil) |
191,934 | 1,367,914 | ||||||||
|
|
|||||||||
13,210,369 | ||||||||||
|
|
|||||||||
Hotels, Restaurants & Leisure - 0.7% |
||||||||||
Accor S.A. (France)1 |
26,610 | 1,117,946 | ||||||||
Arcos Dorados Holdings, Inc. - Class A (Argentina) |
37,320 | 229,891 | ||||||||
Darden Restaurants, Inc. |
19,080 | 987,962 | ||||||||
Hyatt Hotels Corp. - Class A* |
10,360 | 613,519 | ||||||||
Whistler Blackcomb Holdings, Inc. (Canada) |
11,010 | 185,901 | ||||||||
Whitbread plc (United Kingdom)1 |
14,430 | 1,008,667 | ||||||||
Yum! Brands, Inc. |
107,730 | 7,738,246 | ||||||||
|
|
|||||||||
11,882,132 | ||||||||||
|
|
|||||||||
Household Durables - 1.2% |
||||||||||
DR Horton, Inc. |
246,920 | 5,627,307 | ||||||||
Lennar Corp. - Class A |
145,393 | 6,263,530 | ||||||||
LG Electronics, Inc. (South Korea)1 |
12,430 | 759,121 | ||||||||
Nikon Corp. (Japan)1 |
40,000 | 548,067 | ||||||||
PulteGroup, Inc. |
29,310 | 562,459 | ||||||||
Toll Brothers, Inc.* |
182,221 | 5,821,961 | ||||||||
TRI Pointe Homes, Inc.* |
21,640 | 296,252 | ||||||||
WCI Communities, Inc.* |
8,200 | 153,832 | ||||||||
|
|
|||||||||
20,032,529 | ||||||||||
|
|
|||||||||
Internet & Catalog Retail - 2.3% |
||||||||||
Amazon.com, Inc.* |
37,300 | 11,393,658 | ||||||||
ASOS plc (United Kingdom)*1 |
22,310 | 951,309 | ||||||||
Expedia, Inc. |
12,360 | 1,050,229 | ||||||||
Groupon, Inc.* |
379,310 | 2,772,756 | ||||||||
MakeMyTrip Ltd. (India)* |
11,820 | 356,196 | ||||||||
Ocado Group plc (United Kingdom)*1 |
34,980 | 139,339 | ||||||||
The Priceline Group, Inc.* |
11,000 | 13,268,310 | ||||||||
Rakuten, Inc. (Japan)1 |
79,580 | 897,382 | ||||||||
TripAdvisor, Inc.* |
116,060 | 10,289,880 | ||||||||
|
|
|||||||||
41,119,059 | ||||||||||
|
|
|||||||||
Media - 9.6% |
||||||||||
AMC Networks, Inc. - Class A* |
418,646 | 25,390,880 | ||||||||
British Sky Broadcasting Group plc (United Kingdom)1 |
51,190 | 725,474 | ||||||||
Discovery Communications, Inc. - Class A* |
43,830 | 1,549,391 | ||||||||
Gannett Co., Inc. |
502,170 | 15,818,355 | ||||||||
Global Mediacom Tbk PT (Indonesia)1 |
1,326,570 | 215,303 | ||||||||
ITV plc (United Kingdom)1 |
40,220 | 130,662 | ||||||||
Lamar Advertising Co. - Class A |
10,370 | 535,611 | ||||||||
Liberty Global plc - Class A - ADR (United Kingdom)* |
163,290 | 7,424,796 | ||||||||
Liberty Global plc - Class C - ADR (United Kingdom)* |
165,940 | 7,379,352 | ||||||||
Mediaset Espana Comunicacion S.A. (Spain)*1 |
124,680 | 1,565,274 | ||||||||
Modern Times Group AB - Class B (Sweden)1 |
4,650 | 143,759 | ||||||||
Morningstar, Inc. |
19,600 | 1,337,700 | ||||||||
Nexstar Broadcasting Group, Inc. - Class A |
142,346 | 6,422,652 | ||||||||
ProSiebenSat.1 Media AG (Germany)1 |
3,310 | 133,711 | ||||||||
Reed Elsevier plc - ADR (United Kingdom) |
5,439 | 357,560 | ||||||||
Sinclair Broadcast Group, Inc. - Class A |
443,493 | 12,883,472 | ||||||||
Societe Television Francaise 1 (France)1 |
37,649 | 561,291 | ||||||||
Starz - Class A* |
457,150 | 14,125,935 | ||||||||
Time Warner, Inc. |
69,990 | 5,562,105 | ||||||||
Tribune Media Co. - Class A* |
125,511 | 8,409,237 | ||||||||
Twenty-First Century Fox, Inc. - Class A |
1,035,750 | 35,712,660 | ||||||||
Viacom, Inc. - Class B |
279,350 | 20,303,158 | ||||||||
World Wrestling Entertainment, Inc. - Class A |
207,450 | 2,562,007 | ||||||||
|
|
|||||||||
169,250,345 | ||||||||||
|
|
|||||||||
Multiline Retail - 0.0%## |
||||||||||
Marks & Spencer Group plc (United Kingdom)1 |
39,250 | 255,588 | ||||||||
|
|
|||||||||
Specialty Retail - 0.5% |
||||||||||
American Eagle Outfitters, Inc. |
151,980 | 1,955,983 | ||||||||
Belle International Holdings Ltd. (Hong Kong)1 |
935,000 | 1,189,811 | ||||||||
China ZhengTong Auto Services Holdings Ltd. (China)1 |
739,500 | 418,928 | ||||||||
Dicks Sporting Goods, Inc. |
48,710 | 2,209,973 |
The accompanying notes are an integral part of the financial statements.
70
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Consumer Discretionary (continued) |
||||||||||
Specialty Retail (continued) |
||||||||||
Groupe Fnac S.A. (France)*1 |
279 | $ | 11,738 | |||||||
Hennes & Mauritz AB - Class B (Sweden)1 |
12,930 | 515,901 | ||||||||
Kingfisher plc (United Kingdom)1 |
394,710 | 1,912,151 | ||||||||
Komeri Co. Ltd. (Japan)1 |
20,000 | 449,591 | ||||||||
Sa Sa International Holdings Ltd. (Hong Kong)1 |
914,000 | 631,904 | ||||||||
|
|
|||||||||
9,295,980 | ||||||||||
|
|
|||||||||
Textiles, Apparel & Luxury Goods - 1.1% |
||||||||||
Adidas AG (Germany)1 |
5,280 | 384,732 | ||||||||
Daphne International Holdings Ltd. (China)1 |
756,000 | 380,564 | ||||||||
Gildan Activewear, Inc. (Canada) |
26,280 | 1,567,076 | ||||||||
Kering (France)1 |
2,230 | 430,356 | ||||||||
lululemon athletica, Inc.* |
383,957 | 15,991,809 | ||||||||
|
|
|||||||||
18,754,537 | ||||||||||
|
|
|||||||||
Total Consumer Discretionary |
286,441,870 | |||||||||
|
|
|||||||||
Consumer Staples - 6.3% |
||||||||||
Beverages - 2.6% |
||||||||||
AMBEV S.A. - ADR (Brazil)* |
1,533,335 | 10,242,678 | ||||||||
Anheuser-Busch InBev N.V. (Belgium)1 |
133,396 | 14,792,852 | ||||||||
Carlsberg A/S - Class B (Denmark)1 |
10,540 | 929,614 | ||||||||
Cia Cervecerias Unidas S.A. - ADR (Chile) |
23,590 | 502,703 | ||||||||
Diageo plc (United Kingdom)1 |
523,170 | 15,429,467 | ||||||||
Monster Beverage Corp.* |
13,460 | 1,357,845 | ||||||||
Remy Cointreau S.A. (France)1 |
2,000 | 142,334 | ||||||||
SABMiller plc (United Kingdom)1 |
10,930 | 618,231 | ||||||||
Treasury Wine Estates Ltd. (Australia)1 |
190,140 | 776,337 | ||||||||
Tsingtao Brewery Co. Ltd. - Class H (China)1 |
88,000 | 650,512 | ||||||||
|
|
|||||||||
45,442,573 | ||||||||||
|
|
|||||||||
Food & Staples Retailing - 0.5% |
||||||||||
Carrefour S.A. (France)1 |
36,377 | 1,066,220 | ||||||||
Casino Guichard-Perrachon S.A. (France)1 |
2,930 | 300,422 | ||||||||
Dairy Farm International Holdings Ltd. (Hong Kong)1 |
50,400 | 483,840 | ||||||||
Tesco plc (United Kingdom)1 |
2,008,940 | 5,576,773 | ||||||||
Wal-Mart de Mexico S.A.B. de C.V. - Class V (Mexico) |
215,000 | 498,613 | ||||||||
|
|
|||||||||
7,925,868 | ||||||||||
|
|
|||||||||
Food Products - 2.1% |
||||||||||
Biostime International Holdings Ltd. (China)1 |
123,270 | 279,120 | ||||||||
Charoen Pokphand Foods PCL (Thailand)1 |
1,284,130 | 1,232,576 | ||||||||
Danone S.A. (France)1 |
15,640 | 1,068,720 | ||||||||
Dean Foods Co. |
101,950 | 1,499,685 | ||||||||
Grupo Bimbo S.A.B. de C.V. - Class A (Mexico) |
188,350 | 553,878 | ||||||||
Ingredion, Inc. |
4,550 | 351,487 | ||||||||
Keurig Green Mountain, Inc. |
14,600 | 2,215,550 | ||||||||
M Dias Branco S.A. (Brazil) |
6,800 | 264,437 | ||||||||
Nestle S.A. (Switzerland)1 |
226,420 | 16,604,316 | ||||||||
Tiger Brands Ltd. (South Africa)1 |
12,820 | 385,867 | ||||||||
Unilever plc - ADR (United Kingdom) |
318,969 | 12,832,123 | ||||||||
|
|
|||||||||
37,287,759 | ||||||||||
|
|
|||||||||
Household Products - 0.3% |
||||||||||
Energizer Holdings, Inc. |
43,040 | 5,278,856 | ||||||||
Reckitt Benckiser Group plc (United Kingdom)1 |
6,950 | 585,351 | ||||||||
|
|
|||||||||
5,864,207 | ||||||||||
|
|
|||||||||
Personal Products - 0.0%## |
||||||||||
Beiersdorf AG (Germany)1 |
3,420 | 277,289 | ||||||||
Natura Cosmeticos S.A. (Brazil) |
25,960 | 377,158 | ||||||||
|
|
|||||||||
654,447 | ||||||||||
|
|
|||||||||
Tobacco - 0.8% |
||||||||||
Gudang Garam Tbk PT (Indonesia)1 |
114,710 | 548,940 | ||||||||
Imperial Tobacco Group plc (United Kingdom)1 |
285,280 | 12,393,036 | ||||||||
Swedish Match AB (Sweden)1 |
25,710 | 836,013 | ||||||||
|
|
|||||||||
13,777,989 | ||||||||||
|
|
|||||||||
Total Consumer Staples |
110,952,843 | |||||||||
|
|
|||||||||
Energy - 7.9% |
||||||||||
Energy Equipment & Services - 4.0% |
||||||||||
Baker Hughes, Inc. |
329,560 | 17,453,498 | ||||||||
Cameron International Corp.* |
289,330 | 17,229,601 | ||||||||
CGG S.A. (France)*1 |
11,088 | 64,060 | ||||||||
Core Laboratories N.V. - ADR |
1,780 | 248,363 | ||||||||
Oceaneering International, Inc. |
2,520 | 177,080 | ||||||||
Petroleum Geo-Services ASA (Norway)1 |
24,570 | 122,034 | ||||||||
Saipem S.p.A. (Italy)*1 |
23,070 | 361,159 | ||||||||
Schlumberger Ltd. |
188,670 | 18,614,182 | ||||||||
Spectrum ASA (Norway)1 |
59,940 | 282,052 | ||||||||
SPT Energy Group, Inc. (China)1 |
444,000 | 139,880 | ||||||||
TGS Nopec Geophysical Co. ASA (Norway)1 |
33,910 | 791,045 | ||||||||
Trican Well Service Ltd. (Canada) |
17,090 | 153,151 | ||||||||
Weatherford International plc - ADR* |
840,320 | 13,798,054 | ||||||||
|
|
|||||||||
69,434,159 | ||||||||||
|
|
The accompanying notes are an integral part of the financial statements.
71
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Energy (continued) |
||||||||||
Oil, Gas & Consumable Fuels - 3.9% |
||||||||||
Apache Corp. |
63,035 | $ | 4,866,302 | |||||||
Cameco Corp. (Canada) |
139,276 | 2,420,617 | ||||||||
Cloud Peak Energy, Inc.* |
136,847 | 1,638,059 | ||||||||
Cosan S.A. Industria e Comercio (Brazil) |
10,980 | 153,274 | ||||||||
Encana Corp. (Canada) |
44,710 | 832,947 | ||||||||
EOG Resources, Inc. |
38,337 | 3,643,932 | ||||||||
Hess Corp. |
358,851 | 30,434,153 | ||||||||
Koninklijke Vopak N.V. (Netherlands)1 |
9,786 | 490,761 | ||||||||
Pacific Rubiales Energy Corp. (Colombia) |
31,330 | 472,570 | ||||||||
Peabody Energy Corp. |
1,389,051 | 14,487,802 | ||||||||
Petroleo Brasileiro S.A. - ADR (Brazil) |
49,110 | 600,615 | ||||||||
Range Resources Corp. |
99,950 | 6,836,580 | ||||||||
Royal Dutch Shell plc - Class B (Netherlands)1 |
24,549 | 906,969 | ||||||||
Talisman Energy, Inc. (Canada) |
153,040 | 976,317 | ||||||||
Whitehaven Coal Ltd. (Australia)*1 |
102,200 | 137,063 | ||||||||
|
|
|||||||||
68,897,961 | ||||||||||
|
|
|||||||||
Total Energy |
138,332,120 | |||||||||
|
|
|||||||||
Financials - 6.0% |
||||||||||
Banks - 1.5% |
||||||||||
Hong Leong Financial Group Berhad (Malaysia)1 |
153,070 | 842,259 | ||||||||
HSBC Holdings plc (United Kingdom)1 |
1,346,440 | 13,727,385 | ||||||||
ICICI Bank Ltd. - ADR (India) |
9,550 | 538,238 | ||||||||
Popular, Inc.* |
330,819 | 10,546,510 | ||||||||
Sumitomo Mitsui Trust Holdings, Inc. (Japan)1 |
141,000 | 575,664 | ||||||||
Synovus Financial Corp. |
44,760 | 1,135,114 | ||||||||
|
|
|||||||||
27,365,170 | ||||||||||
|
|
|||||||||
Capital Markets - 0.2% |
||||||||||
CETIP S.A. - Mercados Organizados (Brazil) |
16,020 | 203,006 | ||||||||
Daiwa Securities Group, Inc. (Japan)1 |
90,000 | 711,266 | ||||||||
Financial Engines, Inc. |
48,440 | 1,931,303 | ||||||||
|
|
|||||||||
2,845,575 | ||||||||||
|
|
|||||||||
Consumer Finance - 0.1% |
||||||||||
SLM Corp. |
179,740 | 1,716,517 | ||||||||
|
|
|||||||||
Diversified Financial Services - 0.1% |
||||||||||
Berkshire Hathaway, Inc. - Class B* |
1,330 | 186,413 | ||||||||
JSE Ltd. (South Africa)1 |
53,080 | 516,856 | ||||||||
MSCI, Inc. |
34,550 | 1,612,103 | ||||||||
|
|
|||||||||
2,315,372 | ||||||||||
|
|
|||||||||
Insurance - 0.1% |
||||||||||
Admiral Group plc (United Kingdom)1 |
27,100 | 579,860 | ||||||||
Brasil Insurance Participacoes e Administracao S.A. (Brazil) |
77,260 | 232,288 | ||||||||
Mapfre S.A. (Spain)1 |
282,140 | 967,472 | ||||||||
Zurich Insurance Group AG (Switzerland)1 |
1,910 | 578,021 | ||||||||
|
|
|||||||||
2,357,641 | ||||||||||
|
|
|||||||||
Real Estate Investment Trusts (REITS) - 3.2% |
||||||||||
Agree Realty Corp. |
20,600 | 630,566 | ||||||||
Alexandria Real Estate Equities, Inc. |
7,820 | 649,060 | ||||||||
Alstria Office REIT AG (Germany)1 |
105,980 | 1,315,744 | ||||||||
American Campus Communities, Inc. |
8,860 | 347,932 | ||||||||
Apartment Investment & Management Co. - Class A |
17,690 | 633,125 | ||||||||
Associated Estates Realty Corp. |
31,150 | 608,359 | ||||||||
AvalonBay Communities, Inc. |
3,550 | 553,232 | ||||||||
BioMed Realty Trust, Inc. |
122,546 | 2,661,699 | ||||||||
Boston Properties, Inc. |
3,380 | 428,415 | ||||||||
Camden Property Trust |
6,960 | 533,623 | ||||||||
CatchMark Timber Trust, Inc. - Class A |
32,320 | 378,144 | ||||||||
CBL & Associates Properties, Inc. |
82,850 | 1,584,921 | ||||||||
CBS Outdoor Americas, Inc. |
64,750 | 1,970,343 | ||||||||
Chesapeake Lodging Trust |
22,440 | 741,418 | ||||||||
CoreSite Realty Corp. |
15,670 | 580,103 | ||||||||
Corporate Office Properties Trust |
84,810 | 2,318,705 | ||||||||
Crown Castle International Corp. |
4,500 | 351,540 | ||||||||
CubeSmart |
18,960 | 399,108 | ||||||||
DDR Corp. |
29,990 | 544,019 | ||||||||
Digital Realty Trust, Inc. |
45,711 | 3,153,602 | ||||||||
Duke Realty Corp. |
29,500 | 559,320 | ||||||||
DuPont Fabros Technology, Inc. |
18,752 | 580,749 | ||||||||
Education Realty Trust, Inc. |
48,170 | 542,394 | ||||||||
Equity Lifestyle Properties, Inc. |
8,030 | 394,273 | ||||||||
Equity One, Inc. |
15,480 | 371,520 | ||||||||
Equity Residential |
8,520 | 592,651 | ||||||||
Essex Property Trust, Inc. |
3,000 | 605,280 | ||||||||
Excel Trust, Inc. |
27,280 | 354,640 | ||||||||
Extra Space Storage, Inc. |
5,880 | 341,981 | ||||||||
Fibra Shop Portafolios Inmobiliarios SAPI de CV (Mexico) |
190,160 | 258,277 | ||||||||
General Growth Properties, Inc. |
22,100 | 572,611 | ||||||||
HCP, Inc. |
20,880 | 918,094 | ||||||||
Health Care REIT, Inc. |
10,480 | 745,233 | ||||||||
Healthcare Trust of America, Inc. |
31,160 | 400,094 | ||||||||
Home Properties, Inc. |
5,840 | 375,570 | ||||||||
Host Hotels & Resorts, Inc. |
31,040 | 723,542 | ||||||||
Inland Real Estate Corp. |
34,980 | 371,138 | ||||||||
Kimco Realty Corp. |
39,130 | 976,293 |
The accompanying notes are an integral part of the financial statements.
72
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Financials (continued) |
||||||||||
Real Estate Investment Trusts (REITS) (continued) |
||||||||||
Kite Realty Group Trust |
27,982 | $ | 724,454 | |||||||
Mack-Cali Realty Corp. |
25,420 | 476,117 | ||||||||
Mid-America Apartment Communities, Inc. |
8,700 | 614,742 | ||||||||
Pebblebrook Hotel Trust |
18,870 | 803,862 | ||||||||
Pennsylvania Real Estate Investment Trust |
17,720 | 379,740 | ||||||||
Physicians Realty Trust |
40,820 | 626,179 | ||||||||
Plum Creek Timber Co., Inc. |
30,506 | 1,251,051 | ||||||||
Potlatch Corp. |
3,770 | 165,842 | ||||||||
Public Storage |
3,990 | 735,517 | ||||||||
Rayonier, Inc. |
5,100 | 170,697 | ||||||||
Rouse Properties, Inc. |
39,070 | 711,465 | ||||||||
Saul Centers, Inc. |
3,610 | 198,369 | ||||||||
Scentre Group (Australia)*1 |
84,170 | 268,498 | ||||||||
Simon Property Group, Inc. |
11,460 | 2,053,747 | ||||||||
Sovran Self Storage, Inc. |
9,020 | 767,512 | ||||||||
UDR, Inc. |
19,170 | 579,509 | ||||||||
Ventas, Inc. |
10,040 | 687,840 | ||||||||
Washington Prime Group, Inc. |
24,000 | 423,120 | ||||||||
Washington Real Estate Investment Trust |
13,120 | 370,771 | ||||||||
Westfield Corp. (Australia)1 |
141,390 | 993,551 | ||||||||
Weyerhaeuser Co. |
378,817 | 12,826,744 | ||||||||
|
|
|||||||||
55,896,645 | ||||||||||
|
|
|||||||||
Real Estate Management & Development - 0.8% |
||||||||||
BR Malls Participacoes S.A. (Brazil) |
23,640 | 189,853 | ||||||||
Forest City Enterprises, Inc. - Class A* |
24,470 | 511,178 | ||||||||
Forestar Group, Inc.* |
9,000 | 157,050 | ||||||||
General Shopping Brasil S.A. (Brazil)* |
149,299 | 406,703 | ||||||||
Realogy Holdings Corp.* |
293,569 | 12,039,265 | ||||||||
|
|
|||||||||
13,304,049 | ||||||||||
|
|
|||||||||
Total Financials |
105,800,969 | |||||||||
|
|
|||||||||
Health Care - 7.1% |
||||||||||
Biotechnology - 0.3% |
||||||||||
BioMarin Pharmaceutical, Inc.* |
26,020 | 2,146,650 | ||||||||
Green Cross Corp. (South Korea)1 |
6,376 | 815,998 | ||||||||
Seattle Genetics, Inc.* |
44,300 | 1,624,481 | ||||||||
|
|
|||||||||
4,587,129 | ||||||||||
|
|
|||||||||
Health Care Equipment & Supplies - 0.3% |
||||||||||
BioMerieux (France)1 |
1,250 | 131,863 | ||||||||
Carl Zeiss Meditec AG (Germany)1 |
23,550 | 633,660 | ||||||||
HeartWare International, Inc.* |
22,860 | 1,762,963 | ||||||||
Neogen Corp.* |
4,000 | 175,600 | ||||||||
Shandong Weigao Group Medical Polymer Co. Ltd. - Class H (China)1 |
1,188,000 | 1,201,348 | ||||||||
Thoratec Corp.* |
67,580 | 1,836,824 | ||||||||
|
|
|||||||||
5,742,258 | ||||||||||
|
|
|||||||||
Health Care Providers & Services - 2.4% |
||||||||||
Catamaran Corp.* |
425,100 | 20,264,517 | ||||||||
Express Scripts Holding Co.* |
217,090 | 16,676,854 | ||||||||
Fresenius Medical Care AG & Co. KGaA (Germany)1 |
7,600 | 557,822 | ||||||||
Fresenius Medical Care AG & Co. KGaA - ADR (Germany) |
14,780 | 541,096 | ||||||||
KPJ Healthcare Berhad (Malaysia)1 |
163,200 | 194,015 | ||||||||
Life Healthcare Group Holdings Ltd. (South Africa)1 |
210,630 | 796,519 | ||||||||
Odontoprev S.A. (Brazil) |
255,650 | 923,390 | ||||||||
Quest Diagnostics, Inc. |
17,130 | 1,087,070 | ||||||||
Universal Health Services, Inc. - Class B |
9,820 | 1,018,432 | ||||||||
|
|
|||||||||
42,059,715 | ||||||||||
|
|
|||||||||
Health Care Technology - 2.2% |
||||||||||
Cerner Corp.* |
624,250 | 39,539,995 | ||||||||
|
|
|||||||||
Life Sciences Tools & Services - 0.0%## |
||||||||||
Gerresheimer AG (Germany)1 |
10,250 | 570,329 | ||||||||
QIAGEN N.V.*1 |
11,650 | 273,791 | ||||||||
|
|
|||||||||
844,120 | ||||||||||
|
|
|||||||||
Pharmaceuticals - 1.9% |
||||||||||
AstraZeneca plc (United Kingdom)1 |
2,540 | 185,542 | ||||||||
AstraZeneca plc - ADR (United Kingdom) |
16,540 | 1,206,428 | ||||||||
GlaxoSmithKline plc (United Kingdom)1 |
14,575 | 329,597 | ||||||||
Johnson & Johnson |
104,720 | 11,286,722 | ||||||||
Novartis AG - ADR (Switzerland) |
4,030 | 373,541 | ||||||||
Novo Nordisk A/S - Class B (Denmark)1 |
9,100 | 411,345 | ||||||||
Otsuka Holdings Co. Ltd. (Japan)1 |
6,800 | 238,531 | ||||||||
Roche Holding AG (Switzerland)1 |
920 | 271,493 | ||||||||
Sanofi (France)1 |
5,285 | 479,561 | ||||||||
Sanofi - ADR (France) |
377,420 | 17,451,901 | ||||||||
Teva Pharmaceutical Industries Ltd. - ADR (Israel) |
9,790 | 552,841 | ||||||||
|
|
|||||||||
32,787,502 | ||||||||||
|
|
|||||||||
Total Health Care |
125,560,719 | |||||||||
|
|
|||||||||
Industrials - 4.3% |
||||||||||
Airlines - 0.4% |
||||||||||
Gol Linhas Aereas Inteligentes S.A. - ADR (Brazil) |
379,207 | 1,960,500 | ||||||||
Latam Airlines Group S.A. - ADR (Chile)* |
244,246 | 2,979,801 |
The accompanying notes are an integral part of the financial statements.
73
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
|
|||||||||
Industrials (continued) |
||||||||||
Airlines (continued) |
||||||||||
Republic Airways Holdings, Inc.* |
183,680 | $ | 2,299,674 | |||||||
Ryanair Holdings plc - ADR (Ireland)* |
7,050 | 391,557 | ||||||||
|
|
|||||||||
7,631,532 | ||||||||||
|
|
|||||||||
Commercial Services & Supplies - 0.1% |
||||||||||
Aggreko plc (United Kingdom)1 |
32,556 | 794,296 | ||||||||
MiX Telematics Ltd. - ADR (South Africa)* |
21,770 | 193,971 | ||||||||
Rollins, Inc. |
5,690 | 181,340 | ||||||||
Tomra Systems ASA (Norway)1 |
42,240 | 316,254 | ||||||||
|
|
|||||||||
1,485,861 | ||||||||||
|
|
|||||||||
Electrical Equipment - 0.1% |
||||||||||
Alstom S.A. (France)*1 |
21,220 | 740,646 | ||||||||
Nexans S.A. (France)*1 |
7,031 | 214,238 | ||||||||
Polypore International, Inc.* |
4,020 | 176,558 | ||||||||
Schneider Electric SE (France)1 |
11,230 | 884,767 | ||||||||
|
|
|||||||||
2,016,209 | ||||||||||
|
|
|||||||||
Industrial Conglomerates - 1.7% |
||||||||||
General Electric Co. |
1,104,340 | 28,503,015 | ||||||||
Siemens AG (Germany)1 |
20,100 | 2,267,145 | ||||||||
|
|
|||||||||
30,770,160 | ||||||||||
|
|
|||||||||
Machinery - 1.3% |
||||||||||
AGCO Corp. |
6,270 | 277,824 | ||||||||
ANDRITZ AG (Austria)1 |
9,010 | 435,401 | ||||||||
Chart Industries, Inc.* |
21,440 | 998,032 | ||||||||
Deere & Co. |
1,530 | 130,876 | ||||||||
FANUC Corp. (Japan)1 |
6,380 | 1,124,384 | ||||||||
Joy Global, Inc. |
321,656 | 16,928,755 | ||||||||
Kennametal, Inc. |
3,080 | 118,919 | ||||||||
Komatsu Ltd. (Japan)1 |
12,600 | 297,478 | ||||||||
KUKA AG (Germany)1 |
2,930 | 184,660 | ||||||||
Pall Corp. |
5,560 | 508,295 | ||||||||
Pentair plc (United Kingdom) |
6,760 | 453,258 | ||||||||
Sany Heavy Equipment International Holdings Co. Ltd. (China)*1 |
844,000 | 187,069 | ||||||||
SKF AB - Class B (Sweden)1 |
22,840 | 458,112 | ||||||||
Terex Corp. |
35,320 | 1,016,156 | ||||||||
Xylem, Inc. |
12,330 | 448,319 | ||||||||
|
|
|||||||||
23,567,538 | ||||||||||
|
|
|||||||||
Marine - 0.0%## |
||||||||||
Sinotrans Shipping Ltd. (China)*1 |
171,400 | 46,883 | ||||||||
|
|
|||||||||
Professional Services - 0.1% |
||||||||||
Experian plc (United Kingdom)1 |
27,980 | 420,709 | ||||||||
SGS S.A. (Switzerland)1 |
284 | 624,381 | ||||||||
|
|
|||||||||
1,045,090 | ||||||||||
|
|
|||||||||
Road & Rail - 0.3% |
||||||||||
Heartland Express, Inc. |
46,310 | 1,164,233 | ||||||||
Hertz Global Holdings, Inc.* |
74,740 | 1,638,301 | ||||||||
Kansas City Southern |
2,100 | 257,859 | ||||||||
Swift Transportation Co.* |
50,340 | 1,243,398 | ||||||||
Union Pacific Corp. |
2,520 | 293,454 | ||||||||
|
|
|||||||||
4,597,245 | ||||||||||
|
|
|||||||||
Trading Companies & Distributors - 0.2% |
||||||||||
Brenntag AG (Germany)1 |
15,030 | 729,279 | ||||||||
Fastenal Co. |
43,160 | 1,900,766 | ||||||||
|
|
|||||||||
2,630,045 | ||||||||||
|
|
|||||||||
Transportation Infrastructure - 0.1% |
||||||||||
Wesco Aircraft Holdings, Inc.* |
86,870 | 1,541,943 | ||||||||
|
|
|||||||||
Total Industrials |
75,332,506 | |||||||||
|
|
|||||||||
Information Technology - 10.3% |
||||||||||
Communications Equipment - 1.9% |
||||||||||
Alcatel-Lucent - ADR (France) |
157,980 | 473,940 | ||||||||
ARRIS Group, Inc.* |
69,770 | 2,094,495 | ||||||||
Ixia* |
173,870 | 1,674,368 | ||||||||
Juniper Networks, Inc. |
1,310,086 | 27,603,512 | ||||||||
Palo Alto Networks, Inc.* |
850 | 89,845 | ||||||||
Polycom, Inc.* |
82,760 | 1,082,501 | ||||||||
|
|
|||||||||
33,018,661 | ||||||||||
|
|
|||||||||
Electronic Equipment, Instruments & Components - 0.2% |
||||||||||
Cognex Corp.* |
4,300 | 170,108 | ||||||||
FLIR Systems, Inc. |
46,050 | 1,544,057 | ||||||||
Hitachi Ltd. (Japan)1 |
140,000 | 1,100,047 | ||||||||
Keyence Corp. (Japan)1 |
1,609 | 779,694 | ||||||||
|
|
|||||||||
3,593,906 | ||||||||||
|
|
|||||||||
Internet Software & Services - 2.5% |
||||||||||
eBay, Inc.* |
360,120 | 18,906,300 | ||||||||
Google, Inc. - Class A* |
18,320 | 10,403,378 | ||||||||
Google, Inc. - Class C* |
18,320 | 10,242,346 | ||||||||
NetEase, Inc. - ADR (China) |
6,290 | 595,789 | ||||||||
Q2 Holdings, Inc.* |
59,610 | 899,515 | ||||||||
Qihoo 360 Technology Co. Ltd. - ADR (China)* |
24,418 | 1,782,026 | ||||||||
Tencent Holdings Ltd. (China)1 |
38,800 | 623,604 | ||||||||
Youku Tudou, Inc. - ADR (China)* |
10,540 | 206,584 | ||||||||
Zillow, Inc. - Class A* |
7,230 | 786,118 | ||||||||
|
|
|||||||||
44,445,660 | ||||||||||
|
|
|||||||||
IT Services - 2.1% |
||||||||||
Amdocs Ltd. - ADR |
7,400 | 351,796 | ||||||||
EVERTEC, Inc. |
141,460 | 3,211,142 |
The accompanying notes are an integral part of the financial statements.
74
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
|
|||||||||
Information Technology (continued) |
||||||||||
IT Services (continued) |
||||||||||
InterXion Holding N.V. - ADR (Netherlands)* |
6,480 | $ | 177,163 | |||||||
MasterCard, Inc. - Class A |
117,402 | 9,832,417 | ||||||||
VeriFone Systems, Inc.* |
339,340 | 12,643,808 | ||||||||
Visa, Inc. - Class A |
43,130 | 10,412,876 | ||||||||
|
|
|||||||||
36,629,202 | ||||||||||
|
|
|||||||||
Semiconductors & Semiconductor Equipment - 0.0%## |
||||||||||
GCL-Poly Energy Holdings Ltd. (Hong Kong)*1 |
515,000 | 173,567 | ||||||||
REC Silicon ASA (Norway)*1 |
308,950 | 123,517 | ||||||||
|
|
|||||||||
297,084 | ||||||||||
|
|
|||||||||
Software - 1.3% |
||||||||||
Aspen Technology, Inc.* |
3,000 | 110,790 | ||||||||
AVEVA Group plc (United Kingdom)1 |
78,699 | 1,933,736 | ||||||||
Check Point Software Technologies Ltd. (Israel)* |
1,290 | 95,783 | ||||||||
Electronic Arts, Inc.* |
462,560 | 18,951,083 | ||||||||
Fortinet, Inc.* |
3,290 | 85,705 | ||||||||
Imperva, Inc.* |
2,630 | 107,751 | ||||||||
Nuance Communications, Inc.* |
10,590 | 163,404 | ||||||||
Proofpoint, Inc.* |
1,990 | 87,640 | ||||||||
SAP SE (Germany)1 |
16,750 | 1,141,267 | ||||||||
Temenos Group AG (Switzerland)1 |
8,610 | 300,604 | ||||||||
Totvs S.A. (Brazil) |
58,078 | 846,595 | ||||||||
|
|
|||||||||
23,824,358 | ||||||||||
|
|
|||||||||
Technology Hardware, Storage & Peripherals - 2.3% |
||||||||||
Canon, Inc. (Japan)1 |
10,000 | 306,802 | ||||||||
EMC Corp. |
1,310,590 | 37,653,251 | ||||||||
Samsung Electronics Co. Ltd. (South Korea)1 |
1,790 | 2,087,395 | ||||||||
Stratasys Ltd.* |
1,510 | 181,744 | ||||||||
|
|
|||||||||
40,229,192 | ||||||||||
|
|
|||||||||
Total Information Technology |
182,038,063 | |||||||||
|
|
|||||||||
Materials - 4.3% |
||||||||||
Chemicals - 3.1% |
||||||||||
Akzo Nobel N.V. (Netherlands)1 |
2,160 | 144,043 | ||||||||
BASF SE (Germany)1 |
10,340 | 913,643 | ||||||||
FMC Corp. |
17,960 | 1,030,006 | ||||||||
Linde AG (Germany)1 |
6,790 | 1,253,129 | ||||||||
Monsanto Co. |
290,010 | 33,362,750 | ||||||||
The Mosaic Co. |
324,110 | 14,361,314 | ||||||||
Novozymes A/S - Class B (Denmark)1 |
3,590 | 166,241 | ||||||||
Potash Corp. of Saskatchewan, Inc. (Canada) |
12,970 | 443,185 | ||||||||
Sociedad Quimica y Minera de Chile S.A. - ADR (Chile) |
29,219 | 693,367 | ||||||||
Syngenta AG (Switzerland)1 |
1,830 | 565,941 | ||||||||
Tronox Ltd. - Class A |
6,820 | 164,908 | ||||||||
Umicore S.A. (Belgium)1 |
12,569 | 493,314 | ||||||||
Wacker Chemie AG (Germany)1 |
1,510 | 182,980 | ||||||||
Yingde Gases Group Co. Ltd. (China)1 |
252,000 | 196,772 | ||||||||
|
|
|||||||||
53,971,593 | ||||||||||
|
|
|||||||||
Construction Materials - 0.0%## |
||||||||||
CRH plc (Ireland)1 |
19,370 | 430,404 | ||||||||
Holcim Ltd. (Switzerland)1 |
4,020 | 285,318 | ||||||||
|
|
|||||||||
715,722 | ||||||||||
|
|
|||||||||
Metals & Mining - 1.2% |
||||||||||
Alcoa, Inc. |
1,049,720 | 17,593,307 | ||||||||
Alumina Ltd. (Australia)*1 |
302,560 | 437,289 | ||||||||
Iluka Resources Ltd. (Australia)1 |
42,160 | 270,656 | ||||||||
Impala Platinum Holdings Ltd. (South Africa)*1 |
28,580 | 208,453 | ||||||||
Jastrzebska Spolka Weglowa S.A. (Poland)*1 |
28,660 | 246,293 | ||||||||
Norsk Hydro ASA (Norway)1 |
98,410 | 550,990 | ||||||||
Stillwater Mining Co.* |
100,437 | 1,318,738 | ||||||||
Teck Resources Ltd. - Class B (Canada) |
33,484 | 528,378 | ||||||||
ThyssenKrupp AG (Germany)*1 |
8,990 | 216,673 | ||||||||
|
|
|||||||||
21,370,777 | ||||||||||
|
|
|||||||||
Total Materials |
76,058,092 | |||||||||
|
|
|||||||||
Telecommunication Services - 0.2% |
||||||||||
Diversified Telecommunication Services - 0.1% |
||||||||||
Telefonica S.A. - ADR (Spain) |
88,090 | 1,319,588 | ||||||||
Telenor ASA - ADR (Norway)2 |
10,210 | 687,541 | ||||||||
|
|
|||||||||
2,007,129 | ||||||||||
|
|
|||||||||
Wireless Telecommunication Services - 0.1% |
||||||||||
America Movil S.A.B. de C.V. - Class L - ADR (Mexico) |
48,749 | 1,189,963 | ||||||||
China Mobile Ltd. (China)1 |
53,000 | 659,453 | ||||||||
|
|
|||||||||
1,849,416 | ||||||||||
|
|
|||||||||
Total Telecommunication Services |
3,856,545 | |||||||||
|
|
|||||||||
TOTAL COMMON STOCKS |
1,104,373,727 | |||||||||
|
|
The accompanying notes are an integral part of the financial statements.
75
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | SHARES/ PRINCIPAL AMOUNT4 |
VALUE (NOTE 2) |
||||||||
PREFERRED STOCKS - 0.2% |
|
|||||||||
Financials - 0.2% |
||||||||||
Banks - 0.0%## |
||||||||||
U.S. Bancorp., Series F (non-cumulative), 6.50%3 |
30,400 | $ | 891,024 | |||||||
|
|
|||||||||
Insurance - 0.1% |
||||||||||
Principal Financial Group, Inc., Series A (non-cumulative), 5.563%3 |
14,000 | 1,414,000 | ||||||||
|
|
|||||||||
Real Estate Investment Trusts (REITS) - 0.1% |
||||||||||
Public Storage, Series Q, 6.50% |
39,780 | 1,044,225 | ||||||||
|
|
|||||||||
TOTAL PREFERRED STOCKS |
3,349,249 | |||||||||
|
|
|||||||||
CORPORATE BONDS - 17.0% |
||||||||||
Convertible Corporate Bonds - 0.2% |
||||||||||
Consumer Discretionary - 0.1% |
||||||||||
Internet & Catalog Retail - 0.1% |
||||||||||
The Priceline Group, Inc., 0.35%, 6/15/2020 |
1,250,000 | 1,417,187 | ||||||||
|
|
|||||||||
Financials - 0.1% |
||||||||||
Real Estate Investment Trusts (REITS) - 0.1% |
||||||||||
BioMed Realty LP5, 3.75%, 1/15/2030 |
850,000 | 1,080,563 | ||||||||
|
|
|||||||||
Total Convertible Corporate Bonds |
2,497,750 | |||||||||
|
|
|||||||||
Non-Convertible Corporate Bonds - 16.8% |
||||||||||
Consumer Discretionary - 2.0% |
||||||||||
Auto Components - 0.3% |
||||||||||
Delphi Corp., 5.00%, 2/15/2023 |
1,800,000 | 1,928,250 | ||||||||
Icahn Enterprises LP - Icahn Enterprises Finance Corp., 3.50%, 3/15/2017 |
2,165,000 | 2,154,175 | ||||||||
Icahn Enterprises LP - Icahn Enterprises Finance Corp., 5.875%, 2/1/2022 |
1,095,000 | 1,125,113 | ||||||||
|
|
|||||||||
5,207,538 | ||||||||||
|
|
|||||||||
Automobiles - 0.2% |
||||||||||
Ford Motor Credit Co. LLC, 6.625%, 8/15/2017 |
650,000 | 732,817 | ||||||||
Ford Motor Credit Co. LLC, 5.00%, 5/15/2018 |
2,007,000 | 2,196,120 | ||||||||
Ford Motor Credit Co. LLC, 8.125%, 1/15/2020 |
1,045,000 | 1,305,977 | ||||||||
|
|
|||||||||
4,234,914 | ||||||||||
|
|
|||||||||
Diversified Consumer Services - 0.2% |
||||||||||
Block Financial LLC, 5.50%, 11/1/2022 |
2,760,000 | 2,977,477 | ||||||||
Crestview DS Merger Sub II, Inc., 10.00%, 9/1/2021 |
635,000 | 701,675 | ||||||||
|
|
|||||||||
3,679,152 | ||||||||||
|
|
|||||||||
Hotels, Restaurants & Leisure - 0.2% |
||||||||||
International Game Technology, 7.50%, 6/15/2019 |
3,790,000 | 4,197,201 | ||||||||
|
|
|||||||||
Household Durables - 0.1% |
||||||||||
Brookfield Residential Properties, Inc. - Brookfield Residential US Corp. (Canada)5, 6.125%, 7/1/2022 |
755,000 | 802,187 | ||||||||
NVR, Inc., 3.95%, 9/15/2022 |
500,000 | 511,227 | ||||||||
Weekley Homes LLC - Weekley Finance Corp., 6.00%, 2/1/2023 |
890,000 | 872,200 | ||||||||
|
|
|||||||||
2,185,614 | ||||||||||
|
|
|||||||||
Media - 0.7% |
||||||||||
21st Century Fox America, Inc., 6.90%, 3/1/2019 |
1,080,000 | 1,284,290 | ||||||||
Cogeco Cable, Inc. (Canada)5, 4.875%, 5/1/2020 |
1,155,000 | 1,155,000 | ||||||||
Columbus International, Inc. (Barbados)5, 7.375%, 3/30/2021 |
670,000 | 710,200 | ||||||||
DIRECTV Holdings LLC - DIRECTV Financing Co., Inc., 5.20%, 3/15/2020 |
1,515,000 | 1,694,099 | ||||||||
Discovery Communications LLC, 5.05%, 6/1/2020 |
1,350,000 | 1,500,629 | ||||||||
Gannett Co., Inc.5, 4.875%, 9/15/2021 |
1,145,000 | 1,153,587 | ||||||||
Sirius XM Radio, Inc.5, 4.25%, 5/15/2020 |
1,150,000 | 1,143,531 | ||||||||
Time Warner, Inc., 4.875%, 3/15/2020 |
1,200,000 | 1,322,578 | ||||||||
Time Warner, Inc., 4.75%, 3/29/2021 |
1,650,000 | 1,814,952 | ||||||||
|
|
|||||||||
11,778,866 | ||||||||||
|
|
|||||||||
Multiline Retail - 0.1% |
||||||||||
Macys Retail Holdings, Inc., 2.875%, 2/15/2023 |
1,270,000 | 1,217,774 | ||||||||
|
|
|||||||||
Specialty Retail - 0.1% |
||||||||||
The TJX Companies, Inc., 2.75%, 6/15/2021 |
1,510,000 | 1,507,512 | ||||||||
|
|
|||||||||
Textiles, Apparel & Luxury Goods - 0.1% |
||||||||||
VF Corp., 5.95%, 11/1/2017 |
880,000 | 1,000,891 | ||||||||
|
|
|||||||||
Total Consumer Discretionary |
35,009,462 | |||||||||
|
|
|||||||||
Consumer Staples - 0.7% |
||||||||||
Beverages - 0.2% |
||||||||||
Anheuser-Busch InBev Worldwide, Inc. (Belgium), 7.75%, 1/15/2019 |
1,050,000 | 1,273,359 | ||||||||
Pernod-Ricard S.A. (France)5, 5.75%, 4/7/2021 |
1,320,000 | 1,510,271 | ||||||||
SABMiller plc (United Kingdom)5, 6.50%, 7/15/2018 |
1,000,000 | 1,152,173 | ||||||||
|
|
|||||||||
3,935,803 | ||||||||||
|
|
|||||||||
Food & Staples Retailing - 0.2% |
||||||||||
C&S Group Enterprises LLC5, 5.375%, 7/15/2022 |
1,115,000 | 1,115,000 | ||||||||
KeHE Distributors LLC - KeHE Finance Corp.5, 7.625%, 8/15/2021 |
870,000 | 924,375 |
The accompanying notes are an integral part of the financial statements.
76
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Consumer Staples (continued) |
||||||||||
Food & Staples Retailing (continued) |
||||||||||
Shearers Foods LLC - Chip Finance Corp.5, 9.00%, 11/1/2019 |
685,000 | $ | 753,500 | |||||||
|
|
|||||||||
2,792,875 | ||||||||||
|
|
|||||||||
Food Products - 0.1% | ||||||||||
Pinnacle Operating Corp.5, 9.00%, 11/15/2020 |
1,040,000 | 1,120,600 | ||||||||
|
|
|||||||||
Household Products - 0.2% |
||||||||||
Energizer Holdings, Inc., 4.70%, 5/19/2021 |
1,300,000 | 1,327,863 | ||||||||
Harbinger Group, Inc., 7.875%, 7/15/2019 |
865,000 | 936,363 | ||||||||
Harbinger Group, Inc., 7.75%, 1/15/2022 |
940,000 | 954,100 | ||||||||
|
|
|||||||||
3,218,326 | ||||||||||
|
|
|||||||||
Tobacco - 0.0%## |
||||||||||
Vector Group Ltd., 7.75%, 2/15/2021 |
825,000 | 894,094 | ||||||||
|
|
|||||||||
Total Consumer Staples |
11,961,698 | |||||||||
|
|
|||||||||
Energy - 1.1% |
||||||||||
Energy Equipment & Services - 0.3% |
||||||||||
Baker Hughes, Inc., 7.50%, 11/15/2018 |
935,000 | 1,130,481 | ||||||||
Parker Drilling Co., 6.75%, 7/15/2022 |
1,160,000 | 1,055,600 | ||||||||
Schlumberger Oilfield plc5, 4.20%, 1/15/2021 |
400,000 | 436,388 | ||||||||
Seventy Seven Operating LLC, 6.625%, 11/15/2019 |
690,000 | 683,100 | ||||||||
Shelf Drilling Holdings Ltd. (United Arab Emirates)5, 8.625%, 11/1/2018 |
1,035,000 | 1,022,063 | ||||||||
US Shale Solutions, Inc.5, 12.50%, 9/1/2017 |
575,000 | 517,500 | ||||||||
Weatherford International Ltd., 9.625%, 3/1/2019 |
620,000 | 792,295 | ||||||||
|
|
|||||||||
5,637,427 | ||||||||||
|
|
|||||||||
Oil, Gas & Consumable Fuels - 0.8% | ||||||||||
Buckeye Partners LP, 4.15%, 7/1/2023 |
1,275,000 | 1,281,295 | ||||||||
CNOOC Nexen Finance 2014 ULC (China), 1.625%, 4/30/2017 |
1,345,000 | 1,345,377 | ||||||||
Energy XXI Gulf Coast, Inc., 7.50%, 12/15/2021 |
935,000 | 776,050 | ||||||||
FTS International, Inc.5, 6.25%, 5/1/2022 |
705,000 | 666,225 | ||||||||
Ithaca Energy, Inc. (United Kingdom)5, 8.125%, 7/1/2019 |
1,105,000 | 950,300 | ||||||||
PBF Holding Co. LLC - PBF Finance Corp., 8.25%, 2/15/2020 |
1,380,000 | 1,443,825 | ||||||||
Petrobras Global Finance B.V. (Brazil)6, 1.852%, 5/20/2016 |
3,250,000 | 3,250,000 | ||||||||
Petroleos Mexicanos (Mexico), 5.75%, 3/1/2018 |
1,370,000 | 1,514,261 | ||||||||
Petroleos Mexicanos (Mexico), 8.00%, 5/3/2019 |
1,600,000 | 1,943,840 | ||||||||
Sabine Pass Liquefaction LLC, 5.625%, 2/1/2021 |
1,075,000 | 1,126,063 | ||||||||
|
|
|||||||||
14,297,236 | ||||||||||
|
|
|||||||||
Total Energy |
19,934,663 | |||||||||
|
|
|||||||||
Financials - 8.4% |
||||||||||
Banks - 2.7% |
||||||||||
Banco Bilbao Vizcaya Argentaria S.A. (Spain)6, 9.00%, 5/29/2049 |
1,400,000 | 1,513,120 | ||||||||
Banco Santander S.A. (Spain)6, 6.375%, 5/29/2049 |
1,400,000 | 1,375,850 | ||||||||
Bank of America Corp., 7.625%, 6/1/2019 |
2,250,000 | 2,729,115 | ||||||||
Barclays Bank plc (United Kingdom), 5.14%, 10/14/2020 |
1,100,000 | 1,195,469 | ||||||||
Barclays Bank plc (United Kingdom)5, 10.179%, 6/12/2021 |
1,250,000 | 1,678,340 | ||||||||
Barclays Bank plc (United Kingdom), 3.75%, 5/15/2024 |
500,000 | 506,406 | ||||||||
Barclays plc (United Kingdom)6, 6.625%, 6/29/2049 |
800,000 | 765,600 | ||||||||
BBVA Bancomer S.A. (Mexico)5, 6.75%, 9/30/2022 |
1,670,000 | 1,891,275 | ||||||||
BBVA US Senior S.A.U. (Spain), 4.664%, 10/9/2015 |
2,000,000 | 2,072,210 | ||||||||
BPCE S.A. (France)6, 2.84%, 7/29/2049 |
1,500,000 | 1,313,025 | ||||||||
Citigroup, Inc., 8.50%, 5/22/2019 |
2,663,000 | 3,341,317 | ||||||||
Commonwealth Bank of Australia (Australia), 5.75%, 1/25/2017 |
AUD | 380,000 | 353,046 | |||||||
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Netherlands)6, 8.40%, 11/29/2049 |
850,000 | 935,000 | ||||||||
HSBC Bank plc (United Kingdom)5, 1.50%, 5/15/2018 |
1,580,000 | 1,558,605 | ||||||||
HSBC Finance Corp., 6.676%, 1/15/2021 |
1,400,000 | 1,649,876 | ||||||||
HSBC USA Capital Trust I (United Kingdom)5, 7.808%, 12/15/2026 |
600,000 | 607,405 | ||||||||
Intesa Sanpaolo S.p.A. (Italy), 3.875%, 1/15/2019 |
1,650,000 | 1,717,785 | ||||||||
Intesa Sanpaolo S.p.A. (Italy)5, 6.50%, 2/24/2021 |
1,400,000 | 1,624,465 | ||||||||
Intesa Sanpaolo S.p.A. (Italy)5, 5.017%, 6/26/2024 |
1,500,000 | 1,465,971 | ||||||||
JPMorgan Chase & Co., 4.95%, 3/25/2020 |
3,130,000 | 3,475,339 | ||||||||
Lloyds Bank plc (United Kingdom)5, 6.50%, 9/14/2020 |
4,735,000 | 5,476,222 | ||||||||
Lloyds Bank plc (United Kingdom)6, 9.875%, 12/16/2021 |
1,335,000 | 1,535,250 |
The accompanying notes are an integral part of the financial statements.
77
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
|
|||||||||
Non-Convertible Corporate Bonds (continued) |
|
|||||||||
Financials (continued) |
||||||||||
Banks (continued) |
|
|||||||||
National City Corp., 6.875%, 5/15/2019 |
2,255,000 | $ | 2,668,626 | |||||||
Popular, Inc., 7.00%, 7/1/2019 |
1,505,000 | 1,516,287 | ||||||||
Royal Bank of Canada (Canada), 3.27%, 11/10/2014 |
CAD | 295,000 | 261,784 | |||||||
Royal Bank of Canada (Canada), 3.18%, 3/16/2015 |
CAD | 465,000 | 415,379 | |||||||
Royal Bank of Canada (Canada), 3.77%, 3/30/2018 |
CAD | 445,000 | 418,668 | |||||||
The Royal Bank of Scotland plc (United Kingdom)6, 9.50%, 3/16/2022 |
585,000 | 668,597 | ||||||||
Santander Bank N.A. (Spain), 8.75%, 5/30/2018 |
1,300,000 | 1,572,863 | ||||||||
Santander Holdings USA, Inc., 4.625%, 4/19/2016 |
370,000 | 389,192 | ||||||||
Westpac Banking Corp. (Australia), 5.75%, 2/6/2017 |
AUD | 400,000 | 371,961 | |||||||
|
|
|||||||||
47,064,048 | ||||||||||
|
|
|||||||||
Capital Markets - 0.9% |
||||||||||
Goldman Sachs Capital II6, 4.00%, 12/29/2049 |
2,005,000 | 1,507,760 | ||||||||
The Goldman Sachs Group, Inc., 6.15%, 4/1/2018 |
2,510,000 | 2,836,300 | ||||||||
The Goldman Sachs Group, Inc.6, 1.332%, 11/15/2018 |
5,045,000 | 5,096,651 | ||||||||
The Goldman Sachs Group, Inc., 5.375%, 3/15/2020 |
2,225,000 | 2,494,926 | ||||||||
The Goldman Sachs Group, Inc.6, 1.836%, 11/29/2023 |
1,100,000 | 1,135,454 | ||||||||
Scottrade Financial Services, Inc.5, 6.125%, 7/11/2021 |
400,000 | 420,167 | ||||||||
UBS AG (Switzerland)6, 7.25%, 2/22/2022 |
1,150,000 | 1,243,783 | ||||||||
UBS AG (Switzerland), 7.625%, 8/17/2022 |
825,000 | 973,629 | ||||||||
UBS AG (Switzerland)6, 4.75%, 5/22/2023 |
970,000 | 980,913 | ||||||||
|
|
|||||||||
16,689,583 | ||||||||||
|
|
|||||||||
Consumer Finance - 0.5% |
||||||||||
Ally Financial, Inc., 6.75%, 12/1/2014 |
610,000 | 611,830 | ||||||||
American Express Co.6, 6.80%, 9/1/2066 |
930,000 | 985,707 | ||||||||
Capital One Bank USA National Association, 2.15%, 11/21/2018 |
850,000 | 847,100 | ||||||||
Caterpillar Financial Services Corp., 7.05%, 10/1/2018 |
815,000 | 965,539 | ||||||||
CNG Holdings, Inc.5, 9.375%, 5/15/2020 |
910,000 | 684,775 | ||||||||
Discover Bank, 4.20%, 8/8/2023 |
1,280,000 | 1,341,126 | ||||||||
Navient Corp., 6.00%, 1/25/2017 |
1,995,000 | 2,104,725 | ||||||||
Navient Corp., 6.125%, 3/25/2024 |
1,100,000 | 1,135,761 | ||||||||
|
|
|||||||||
8,676,563 | ||||||||||
|
|
|||||||||
Diversified Financial Services - 1.0% |
||||||||||
The Bear Stearns Companies LLC, 7.25%, 2/1/2018 |
85,000 | 98,812 | ||||||||
CME Group, Inc., 3.00%, 9/15/2022 |
1,270,000 | 1,276,181 | ||||||||
General Electric Capital Corp.6, 0.612%, 5/5/2026 |
2,295,000 | 2,190,603 | ||||||||
General Electric Capital Corp.6, 7.125%, 12/29/2049 |
2,150,000 | 2,504,750 | ||||||||
ING Bank N.V. (Netherlands)5, 5.80%, 9/25/2023 |
1,870,000 | 2,081,164 | ||||||||
ING Bank N.V. (Netherlands)6, 4.125%, 11/21/2023 |
1,460,000 | 1,495,668 | ||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.5, 7.375%, 4/1/2020 |
875,000 | 870,625 | ||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.5, 7.50%, 4/15/2021 |
1,180,000 | 1,174,100 | ||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.5, 6.875%, 4/15/2022 |
695,000 | 672,413 | ||||||||
Jefferies Group LLC, 8.50%, 7/15/2019 |
2,595,000 | 3,218,838 | ||||||||
Voya Financial, Inc., 2.90%, 2/15/2018 |
85,000 | 87,390 | ||||||||
Voya Financial, Inc., 5.50%, 7/15/2022 |
1,185,000 | 1,335,933 | ||||||||
|
|
|||||||||
17,006,477 | ||||||||||
|
|
|||||||||
Insurance - 1.8% |
||||||||||
Aegon N.V. (Netherlands)6, 2.549%, 7/29/2049 |
2,175,000 | 1,941,187 | ||||||||
American International Group, Inc., 4.875%, 6/1/2022 |
3,645,000 | 4,065,597 | ||||||||
Assured Guaranty US Holdings, Inc., 5.00%, 7/1/2024 |
3,175,000 | 3,304,330 | ||||||||
AXA S.A. (France)6, 2.663%, 8/29/2049 |
2,700,000 | 2,443,500 | ||||||||
Fidelity National Financial, Inc., 6.60%, 5/15/2017 |
2,025,000 | 2,251,774 | ||||||||
First American Financial Corp., 4.30%, 2/1/2023 |
1,350,000 | 1,365,823 | ||||||||
Genworth Holdings, Inc., 7.70%, 6/15/2020 |
600,000 | 720,280 | ||||||||
Genworth Holdings, Inc., 7.625%, 9/24/2021 |
6,555,000 | 7,989,968 | ||||||||
Genworth Holdings, Inc.6, 6.15%, 11/15/2066 |
4,300,000 | 3,676,500 | ||||||||
The Hartford Financial Services Group, Inc., 5.125%, 4/15/2022 |
2,535,000 | 2,832,807 | ||||||||
Prudential Financial, Inc.6, 5.875%, 9/15/2042 |
1,975,000 | 2,093,500 | ||||||||
|
|
|||||||||
32,685,266 | ||||||||||
|
|
The accompanying notes are an integral part of the financial statements.
78
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Financials (continued) |
||||||||||
Real Estate Investment Trusts (REITS) - 1.3% |
||||||||||
American Campus Communities Operating Partnership LP, 3.75%, 4/15/2023 |
665,000 | $ | 660,237 | |||||||
American Tower Corp., 3.40%, 2/15/2019 |
3,925,000 | 4,014,651 | ||||||||
BioMed Realty LP, 3.85%, 4/15/2016 |
285,000 | 296,303 | ||||||||
Boston Properties LP, 5.875%, 10/15/2019 |
1,385,000 | 1,597,732 | ||||||||
Camden Property Trust, 5.70%, 5/15/2017 |
980,000 | 1,082,400 | ||||||||
Corrections Corp. of America, 4.125%, 4/1/2020 |
1,080,000 | 1,063,800 | ||||||||
Digital Realty Trust LP, 5.875%, 2/1/2020 |
200,000 | 223,472 | ||||||||
Digital Realty Trust LP, 5.25%, 3/15/2021 |
1,870,000 | 2,049,518 | ||||||||
DuPont Fabros Technology LP, 5.875%, 9/15/2021 |
1,100,000 | 1,144,000 | ||||||||
HCP, Inc., 6.70%, 1/30/2018 |
1,270,000 | 1,462,629 | ||||||||
Health Care REIT, Inc., 6.20%, 6/1/2016 |
1,240,000 | 1,340,827 | ||||||||
Health Care REIT, Inc., 4.95%, 1/15/2021 |
275,000 | 301,837 | ||||||||
Hospitality Properties Trust, 6.70%, 1/15/2018 |
1,408,000 | 1,569,346 | ||||||||
Qualitytech LP - QTS Finance Corp.5, 5.875%, 8/1/2022 |
685,000 | 688,425 | ||||||||
Rialto Holdings LLC - Rialto Corp.5, 7.00%, 12/1/2018 |
1,035,000 | 1,058,287 | ||||||||
Simon Property Group LP, 10.35%, 4/1/2019 |
2,160,000 | 2,859,186 | ||||||||
UDR, Inc., 4.625%, 1/10/2022 |
980,000 | 1,057,338 | ||||||||
|
|
|||||||||
22,469,988 | ||||||||||
|
|
|||||||||
Real Estate Management & Development - 0.0%## |
||||||||||
Forestar USA Real Estate Group, Inc.5, 8.50%, 6/1/2022 |
700,000 | 715,750 | ||||||||
|
|
|||||||||
Thrifts & Mortgage Finance - 0.2% |
||||||||||
Ladder Capital Finance Holdings LLLP - Ladder Capital Finance Corp., 7.375%, 10/1/2017 |
890,000 | 941,175 | ||||||||
Ladder Capital Finance Holdings LLLP - Ladder Capital Finance Corp.5, 5.875%, 8/1/2021 |
940,000 | 931,775 | ||||||||
Prospect Holding Co. LLC - Prospect Holding Finance Co.5, 10.25%, 10/1/2018 |
705,000 | 634,500 | ||||||||
Provident Funding Associates LP - PFG Finance Corp.5, 6.75%, 6/15/2021 |
585,000 | 583,537 | ||||||||
|
|
|||||||||
3,090,987 | ||||||||||
|
|
|||||||||
Total Financials |
148,398,662 | |||||||||
|
|
|||||||||
Health Care - 0.4% |
||||||||||
Biotechnology - 0.1% |
||||||||||
Amgen, Inc., 2.20%, 5/22/2019 |
1,530,000 | 1,518,280 | ||||||||
|
|
|||||||||
Health Care Equipment & Supplies - 0.1% |
||||||||||
Halyard Health, Inc.5, 6.25%, 10/15/2022 |
725,000 | 741,313 | ||||||||
|
|
|||||||||
Health Care Providers & Services - 0.1% |
||||||||||
Fresenius Medical Care US Finance, Inc. (Germany)5, 6.50%, 9/15/2018 |
780,000 | 863,850 | ||||||||
Fresenius US Finance II, Inc. (Germany)5, 9.00%, 7/15/2015 |
880,000 | 915,200 | ||||||||
|
|
|||||||||
1,779,050 | ||||||||||
|
|
|||||||||
Pharmaceuticals - 0.1% |
||||||||||
Roche Holdings, Inc. (Switzerland)5, 6.00%, 3/1/2019 |
1,575,000 | 1,819,818 | ||||||||
|
|
|||||||||
Total Health Care |
5,858,461 | |||||||||
|
|
|||||||||
Industrials - 1.7% |
||||||||||
Aerospace & Defense - 0.2% |
||||||||||
DigitalGlobe, Inc.5, 5.25%, 2/1/2021 |
1,139,000 | 1,107,677 | ||||||||
L-3 Communications Corp., 3.95%, 11/15/2016 |
2,030,000 | 2,136,252 | ||||||||
Textron, Inc., 7.25%, 10/1/2019 |
940,000 | 1,122,430 | ||||||||
|
|
|||||||||
4,366,359 | ||||||||||
|
|
|||||||||
Air Freight & Logistics - 0.0%## |
||||||||||
Neovia Logistics Intermediate Holdings LLC - Logistics Intermediate Finance Corp.5,7, 10.00%, 2/15/2018 |
565,000 | 581,950 | ||||||||
|
|
|||||||||
Airlines - 0.4% |
||||||||||
Allegiant Travel Co., 5.50%, 7/15/2019 |
1,085,000 | 1,109,413 | ||||||||
American Airlines Pass-Through Trust, Series 2013-2, Class A, 4.95%, 1/15/2023 |
1,359,314 | 1,451,068 | ||||||||
Delta Air Lines Pass-Through Trust, Series 2010-1, Class B5, 6.375%, 1/2/2016 |
715,000 | 745,387 | ||||||||
Delta Air Lines Pass-Through Trust, Series 2010-2, Class B, 6.75%, 11/23/2015 |
1,315,000 | 1,370,887 | ||||||||
Gol LuxCo S.A. (Brazil)5, 8.875%, 1/24/2022 |
1,125,000 | 1,105,313 | ||||||||
United Continental Holdings, Inc., 6.375%, 6/1/2018 |
865,000 | 903,925 | ||||||||
|
|
|||||||||
6,685,993 | ||||||||||
|
|
|||||||||
Commercial Services & Supplies - 0.1% |
||||||||||
Modular Space Corp.5, 10.25%, 1/31/2019 |
1,055,000 | 1,076,100 | ||||||||
|
|
|||||||||
Construction & Engineering - 0.0%## |
||||||||||
Abengoa Finance S.A.U. (Spain)5, 7.75%, 2/1/2020 |
835,000 | 872,574 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
79
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Industrials (continued) |
||||||||||
Machinery - 0.3% |
||||||||||
CNH Industrial Capital LLC, 3.875%, 11/1/2015 |
1,925,000 | $ | 1,949,063 | |||||||
CNH Industrial Capital LLC, 6.25%, 11/1/2016 |
885,000 | 935,887 | ||||||||
Joy Global, Inc., 5.125%, 10/15/2021 |
120,000 | 131,244 | ||||||||
SPL Logistics Escrow LLC - SPL Logistics Finance Corp.5, 8.875%, 8/1/2020 |
1,005,000 | 1,087,913 | ||||||||
Waterjet Holdings, Inc.5, 7.625%, 2/1/2020 |
890,000 | 930,050 | ||||||||
|
|
|||||||||
5,034,157 | ||||||||||
|
|
|||||||||
Road & Rail - 0.1% |
||||||||||
Union Pacific Corp., 5.65%, 5/1/2017 |
810,000 | 889,032 | ||||||||
|
|
|||||||||
Trading Companies & Distributors - 0.6% |
||||||||||
Air Lease Corp., 3.375%, 1/15/2019 |
1,850,000 | 1,873,125 | ||||||||
Aircastle Ltd., 4.625%, 12/15/2018 |
925,000 | 938,875 | ||||||||
Aviation Capital Group Corp.5, 3.875%, 9/27/2016 |
2,100,000 | 2,157,263 | ||||||||
Fly Leasing Ltd. (Ireland), 6.75%, 12/15/2020 |
1,050,000 | 1,081,500 | ||||||||
Fly Leasing Ltd. (Ireland), 6.375%, 10/15/2021 |
1,125,000 | 1,119,375 | ||||||||
International Lease Finance Corp., 8.625%, 9/15/2015 |
550,000 | 577,500 | ||||||||
International Lease Finance Corp., 5.75%, 5/15/2016 |
585,000 | 609,863 | ||||||||
International Lease Finance Corp.6, 2.184%, 6/15/2016 |
560,000 | 557,900 | ||||||||
International Lease Finance Corp., 8.75%, 3/15/2017 |
900,000 | 1,012,500 | ||||||||
|
|
|||||||||
9,927,901 | ||||||||||
|
|
|||||||||
Total Industrials |
29,434,066 | |||||||||
|
|
|||||||||
Information Technology - 0.5% |
||||||||||
Internet Software & Services - 0.1% |
||||||||||
Tencent Holdings Ltd. (China)5, 3.375%, 5/2/2019 |
2,110,000 | 2,145,410 | ||||||||
|
|
|||||||||
IT Services - 0.1% |
||||||||||
Xerox Corp., 2.80%, 5/15/2020 |
1,650,000 | 1,630,510 | ||||||||
|
|
|||||||||
Semiconductors & Semiconductor Equipment - 0.1% |
||||||||||
Xilinx, Inc., 3.00%, 3/15/2021 |
2,160,000 | 2,169,303 | ||||||||
|
|
|||||||||
Technology Hardware, Storage & Peripherals - 0.2% |
||||||||||
Apple, Inc., 2.40%, 5/3/2023 |
650,000 | 627,119 | ||||||||
Hewlett-Packard Co.6, 1.17%, 1/14/2019 |
2,770,000 | 2,759,878 | ||||||||
|
|
|||||||||
3,386,997 | ||||||||||
|
|
|||||||||
Total Information Technology |
9,332,220 | |||||||||
|
|
|||||||||
Materials - 1.2% |
||||||||||
Chemicals - 0.3% |
||||||||||
Consolidated Energy Finance S.A. (Luxembourg)5, 6.75%, 10/15/2019 |
1,080,000 | 1,101,600 | ||||||||
The Dow Chemical Co., 8.55%, 5/15/2019 |
2,380,000 | 2,997,586 | ||||||||
Lyondellbasell Industries N.V., 5.00%, 4/15/2019 |
500,000 | 551,189 | ||||||||
The Mosaic Co., 4.25%, 11/15/2023 |
665,000 | 697,539 | ||||||||
|
|
|||||||||
5,347,914 | ||||||||||
|
|
|||||||||
Containers & Packaging - 0.1% |
||||||||||
Ardagh Packaging Finance plc - Ardagh Holdings USA, Inc. (Ireland)5,6, 3.234%, 12/15/2019 |
1,085,000 | 1,060,587 | ||||||||
PaperWorks Industries, Inc.5, 9.50%, 8/15/2019 |
725,000 | 741,313 | ||||||||
|
|
|||||||||
1,801,900 | ||||||||||
|
|
|||||||||
Metals & Mining - 0.6% |
||||||||||
ArcelorMittal (Luxembourg), 10.35%, 6/1/2019 |
910,000 | 1,123,850 | ||||||||
BHP Billiton Finance (USA) Ltd. (Australia), 6.50%, 4/1/2019 |
960,000 | 1,138,674 | ||||||||
Freeport-McMoRan Oil & Gas LLC - FCX Oil & Gas, Inc., 6.125%, 6/15/2019 |
2,045,000 | 2,236,719 | ||||||||
Freeport-McMoRan Oil & Gas LLC - FCX Oil & Gas, Inc., 6.50%, 11/15/2020 |
1,907,000 | 2,082,444 | ||||||||
Freeport-McMoRan, Inc., 3.10%, 3/15/2020 |
105,000 | 104,645 | ||||||||
Rio Tinto Finance USA plc (United Kingdom), 1.375%, 6/17/2016 |
2,000,000 | 2,015,038 | ||||||||
SunCoke Energy Partners LP - SunCoke Energy Partners Finance Corp.5, 7.375%, 2/1/2020 |
1,020,000 | 1,065,900 | ||||||||
Teck Resources Ltd. (Canada), 3.00%, 3/1/2019 |
1,290,000 | 1,278,156 | ||||||||
|
|
|||||||||
11,045,426 | ||||||||||
|
|
|||||||||
Paper & Forest Products - 0.2% |
||||||||||
Domtar Corp., 4.40%, 4/1/2022 |
1,470,000 | 1,502,621 | ||||||||
International Paper Co., 7.50%, 8/15/2021 |
1,425,000 | 1,782,788 | ||||||||
|
|
|||||||||
3,285,409 | ||||||||||
|
|
|||||||||
Total Materials |
21,480,649 | |||||||||
|
|
|||||||||
Telecommunication Services - 0.6% |
||||||||||
Diversified Telecommunication Services - 0.1% |
||||||||||
Telefonica Emisiones S.A.U. (Spain), 6.221%, 7/3/2017 |
2,400,000 | 2,676,187 | ||||||||
|
|
|||||||||
Wireless Telecommunication Services - 0.5% |
||||||||||
Altice Financing S.A. (Luxembourg)5, 6.50%, 1/15/2022 |
990,000 | 1,017,225 |
The accompanying notes are an integral part of the financial statements.
80
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES |
PRINCIPAL SHARES |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Telecommunication Services (continued) |
||||||||||
Wireless Telecommunication Services (continued) |
||||||||||
America Movil S.A.B. de C.V. (Mexico), 5.00%, 3/30/2020 |
1,890,000 | $ | 2,083,441 | |||||||
CPI International, Inc., 8.75%, 2/15/2018 |
700,000 | 726,250 | ||||||||
Crown Castle Towers LLC5, 6.113%, 1/15/2020 |
1,045,000 | 1,207,356 | ||||||||
Crown Castle Towers LLC5, 4.883%, 8/15/2020 |
353,000 | 389,568 | ||||||||
SBA Tower Trust5, 5.101%, 4/17/2017 |
575,000 | 609,674 | ||||||||
SBA Tower Trust5, 2.933%, 12/15/2017 |
1,285,000 | 1,302,156 | ||||||||
UPCB Finance VI Ltd. (Netherlands)5, 6.875%, 1/15/2022 |
960,000 | 1,048,800 | ||||||||
|
|
|||||||||
8,384,470 | ||||||||||
|
|
|||||||||
Total Telecommunication Services |
11,060,657 | |||||||||
|
|
|||||||||
Utilities - 0.2% |
||||||||||
Independent Power and Renewable Electricity Producers - 0.2% |
||||||||||
AES Corp.6, 3.234%, 6/1/2019 |
1,145,000 | 1,138,917 | ||||||||
ContourGlobal Power Holdings S.A. (France)5, 7.125%, 6/1/2019 |
1,080,000 | 1,082,700 | ||||||||
NRG Energy, Inc., 6.25%, 7/15/2022 |
1,000,000 | 1,045,000 | ||||||||
RJS Power Holdings LLC5, 5.125%, 7/15/2019 |
740,000 | 736,300 | ||||||||
|
|
|||||||||
Total Utilities |
4,002,917 | |||||||||
|
|
|||||||||
Total Non-Convertible Corporate Bonds |
||||||||||
(Identified Cost $290,615,876) |
296,473,455 | |||||||||
|
|
|||||||||
TOTAL CORPORATE BONDS |
||||||||||
(Identified Cost $293,132,126) |
298,971,205 | |||||||||
|
|
|||||||||
MUTUAL FUNDS - 0.3% |
||||||||||
Direxion Daily 20 Year Plus Treasury Bear 3x Shares* |
30,751 | 1,198,981 | ||||||||
ProShares Short 20+ Year Treasury* |
156,023 | 4,198,579 | ||||||||
|
|
|||||||||
TOTAL MUTUAL FUNDS |
||||||||||
(Identified Cost $6,030,200) |
5,397,560 | |||||||||
|
|
|||||||||
ASSET-BACKED SECURITIES - 0.3% |
||||||||||
Enterprise Fleet Financing LLC, Series 2014-2, Class A25, 1.05%, 3/20/2020 |
1,400,000 | 1,402,060 | ||||||||
FDIC Trust, Series 2011-R1, Class A5, 2.672%, 7/25/2026 |
942,595 | 966,839 | ||||||||
Ford Credit Auto Owner Trust, Series 2012-D, Class A3, 0.51%, 4/15/2017 |
670,034 | 670,050 | ||||||||
Hertz Vehicle Financing LLC, Series 2009-2A, Class A25, 5.29%, 3/25/2016 |
391,667 | 395,574 | ||||||||
Hertz Vehicle Financing LLC, Series 2010-1A, Class A25, 3.74%, 2/25/2017 |
700,000 | 722,154 | ||||||||
SpringCastle America Funding LLC, Series 2014-AA, Class A5, 2.70%, 5/25/2023 |
1,700,000 | 1,701,312 | ||||||||
|
|
|||||||||
TOTAL ASSET-BACKED SECURITIES |
||||||||||
(Identified Cost $5,804,326) |
5,857,989 | |||||||||
|
|
|||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES - 3.3% |
||||||||||
Americold LLC Trust, Series 2010-ARTA, Class A15, 3.847%, 1/14/2029 |
214,682 | 225,154 | ||||||||
Banc of America Commercial Mortgage Trust, Series 2006-2, Class A46, 5.918%, 5/10/2045 |
3,155,000 | 3,315,928 | ||||||||
Banc of America Commercial Mortgage Trust, Series 2006-4, Class A4, 5.634%, 7/10/2046 |
791,488 | 836,051 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR9, Class A4A, 4.871%, 9/11/2042 |
1,622,189 | 1,655,177 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW12, Class A46, 5.891%, 9/11/2038 |
594,257 | 629,451 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW13, Class A4, 5.54%, 9/11/2041 |
662,811 | 702,980 | ||||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T24, Class AM6, 5.568%, 10/12/2041 |
1,180,000 | 1,262,870 | ||||||||
CFCRE Commercial Mortgage Trust, Series 2011-C1, Class A25, 3.759%, 4/15/2044 |
400,145 | 413,860 | ||||||||
Citigroup - Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A46, 5.40%, 7/15/2044 |
398,584 | 407,637 |
The accompanying notes are an integral part of the financial statements.
81
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (continued) |
||||||||||
Commercial Mortgage Pass-Through Certificates, Series 2010-C1, Class A15, 3.156%, 7/10/2046 |
390,208 | $ | 395,629 | |||||||
Commercial Mortgage Trust, Series 2006-GG7, Class A46, 6.014%, 7/10/2038 |
593,944 | 628,908 | ||||||||
Credit Suisse Mortgage Capital Trust, Series 2013-IVR3, Class A15,6, 2.50%, 5/25/2043 |
1,334,125 | 1,269,502 | ||||||||
Credit Suisse Mortgage Capital Trust, Series 2013-TH1, Class A15,6, 2.13%, 2/25/2043 |
1,202,143 | 1,119,758 | ||||||||
DB-UBS Mortgage Trust, Series 2011-LC1A, Class A15, 3.742%, 11/10/2046 |
309,510 | 318,870 | ||||||||
Extended Stay America Trust, Series 2013-ESH7, Class A275, 2.958%, 12/5/2031 |
1,410,000 | 1,431,127 | ||||||||
Fannie Mae Interest Strip, Series 406, Class 7 (IO), 4.50%, 1/25/2041 |
4,699,832 | 957,950 | ||||||||
Fannie Mae Interest Strip, Series 408, Class C1 (IO), 4.00%, 12/25/2040 |
2,068,445 | 396,396 | ||||||||
Fannie Mae Interest Strip, Series 409, Class C15 (IO), 4.00%, 11/25/2039 |
5,800,286 | 1,137,475 | ||||||||
Fannie Mae Interest Strip, Series 413, Class C32 (IO), 4.00%, 1/25/2039 |
7,779,767 | 1,505,789 | ||||||||
Fannie Mae Multifamily REMIC Trust, Series 2012-M13, Class ASQ2, 1.246%, 8/25/2017 |
1,126,106 | 1,128,474 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K009, |
9,865,263 | 627,510 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K014, |
10,226,708 | 683,083 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K016, |
4,312,566 | 377,095 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K017, |
7,605,874 | 612,319 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K021, |
11,872,009 | 1,076,969 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K030, |
47,337,105 | 755,690 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K032, |
30,640,114 | 284,769 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K706, |
6,102,527 | 334,089 | ||||||||
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K-P01, |
1,325,000 | 1,321,445 | ||||||||
Freddie Mac REMICs, Series 4060, Class PS (IO)6, 6.495%, 5/15/2042 |
5,382,108 | 1,155,431 | ||||||||
FREMF Mortgage Trust, Series 2011-K701, Class B5,6, 4.436%, 7/25/2048 |
550,000 | 578,742 | ||||||||
FREMF Mortgage Trust, Series 2011-K702, Class B5,6, 4.936%, 4/25/2044 |
675,000 | 722,606 | ||||||||
FREMF Mortgage Trust, Series 2013-K28, Class X2A (IO)5, 0.10%, 6/25/2046 |
84,832,550 | 543,437 | ||||||||
FREMF Mortgage Trust, Series 2013-K712, Class B5,6, 3.484%, 5/25/2045 |
1,050,000 | 1,058,721 | ||||||||
FREMF Mortgage Trust, Series 2014-K715, Class B5,6, 4.119%, 2/25/2046 |
1,750,000 | 1,802,684 | ||||||||
FREMF Mortgage Trust, Series 2014-K716, Class B5,6, 4.086%, 8/25/2047 |
1,300,000 | 1,330,720 | ||||||||
Ginnie Mae, Series 2009-121, Class QI (IO), 4.50%, 12/20/2039 |
3,770,311 | 818,458 | ||||||||
GS Mortgage Securities Corp. II, Series 2010-C2, Class A15, 3.849%, 12/10/2043 |
673,451 | 698,430 | ||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-CB13, Class A46, 5.419%, 1/12/2043 |
1,605,000 | 1,655,976 | ||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-CB13, Class AM6, 5.46%, 1/12/2043 |
385,000 | 398,346 | ||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP5, Class A46, 5.404%, 12/15/2044 |
325,000 | 333,803 |
The accompanying notes are an integral part of the financial statements.
82
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (continued) |
|
|||||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, |
1,460,000 | $ | 1,538,920 | |||||||||||
JP Morgan Mortgage Trust, Series 2013-1, Class 1A25,6, 3.00%, 3/25/2043 |
1,011,228 | 1,001,273 | ||||||||||||
JP Morgan Mortgage Trust, Series 2013-2, Class A25,6, 3.50%, 5/25/2043 |
1,168,976 | 1,185,078 | ||||||||||||
JP Morgan Mortgage Trust, Series 2014-2, Class 1A15,6, 3.00%, 6/25/2029 |
1,671,948 | 1,714,030 | ||||||||||||
LSTAR Commercial Mortgage Trust, Series 2014-2, Class A25, 2.767%, 1/20/2041 |
1,350,000 | 1,363,865 | ||||||||||||
Morgan Stanley Capital I Trust, Series 2005-IQ10, Class A4A6, 5.23%, 9/15/2042 |
252,563 | 257,975 | ||||||||||||
Morgan Stanley Capital I Trust, Series 2011-C1, Class A25, 3.884%, 9/15/2047 |
765,000 | 785,642 | ||||||||||||
Motel 6 Trust, Series 2012-MTL6, Class A25, 1.948%, 10/5/2025 |
895,000 | 894,118 | ||||||||||||
OBP Depositor LLC Trust, Series 2010-OBP, Class A5, 4.646%, 7/15/2045 |
115,000 | 127,619 | ||||||||||||
Resource Capital Corp., Series 2013-CRE1, Class A (Cayman Islands)5,6, 1.455%, 12/15/2028 |
638,973 | 639,404 | ||||||||||||
SCG Trust, Series 2013-SRP1, Class AJ5,6, 2.105%, 11/15/2026 |
2,600,000 | 2,607,951 | ||||||||||||
Sequoia Mortgage Trust, Series 2013-2, Class A16, 1.874%, 2/25/2043 |
1,110,533 | 994,273 | ||||||||||||
Sequoia Mortgage Trust, Series 2013-7, Class A26, 3.00%, 6/25/2043 |
842,211 | 824,972 | ||||||||||||
Sequoia Mortgage Trust, Series 2013-8, Class A16, 3.00%, 6/25/2043 |
1,151,272 | 1,130,358 | ||||||||||||
Vornado DP LLC Trust, Series 2010-VNO, Class A2FX5, 4.004%, 9/13/2028 |
350,000 | 376,080 | ||||||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2005-C21, |
1,968,552 | 2,018,696 | ||||||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, |
900,000 | 934,722 | ||||||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C26, |
750,000 | 796,890 | ||||||||||||
Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class A25, 4.393%, 11/15/2043 |
600,000 | 653,634 | ||||||||||||
WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class A25, 3.791%, 2/15/2044 |
575,000 | 590,720 | ||||||||||||
WF-RBS Commercial Mortgage Trust, Series 2013-C11, Class A2, 2.029%, 3/15/2045 |
1,465,000 | 1,481,686 | ||||||||||||
|
|
|||||||||||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES |
|
|||||||||||||
(Identified Cost $60,038,253) |
58,827,215 | |||||||||||||
|
|
|||||||||||||
FOREIGN GOVERNMENT BONDS - 1.4% |
|
|||||||||||||
Bonos de la Tesoreria de la Republica en pesos (Chile), 6.00%, 1/1/2018 |
CLP | 805,000,000 | 1,524,695 | |||||||||||
Brazil Notas do Tesouro Nacional (Brazil), 10.00%, 1/1/2019 |
BRL | 1,000,000 | 388,178 | |||||||||||
Brazilian Government International Bond (Brazil), 8.875%, 10/14/2019 |
700,000 | 899,500 | ||||||||||||
Canada Housing Trust No. 1 (Canada)5, 4.10%, 12/15/2018 |
CAD | 385,000 | 374,185 | |||||||||||
Canadian Government Bond (Canada), 1.50%, 9/1/2017 |
CAD | 1,600,000 | 1,432,668 | |||||||||||
Indonesia Treasury Bond (Indonesia), 7.875%, 4/15/2019 |
IDR | 12,000,000,000 | 993,959 | |||||||||||
Ireland Government Bond (Ireland), 5.00%, 10/18/2020 |
EUR | 295,000 | 457,480 | |||||||||||
Italy Buoni Poliennali Del Tesoro (Italy), 5.50%, 9/1/2022 |
EUR | 625,000 | 980,119 | |||||||||||
Italy Buoni Poliennali Del Tesoro (Italy), 5.50%, 11/1/2022 |
EUR | 760,000 | 1,192,834 | |||||||||||
Japan Government Five Year Bond (Japan), 0.30%, 12/20/2016 |
JPY | 100,300,000 | 897,926 | |||||||||||
Korea Treasury Bond (South Korea), 4.50%, 3/10/2015 |
KRW | 940,000,000 | 886,943 | |||||||||||
Korea Treasury Bond (South Korea), 2.75%, 6/10/2016 |
KRW | 460,000,000 | 434,744 | |||||||||||
Malaysia Government Bond (Malaysia), 3.172%, 7/15/2016 |
MYR | 4,320,000 | 1,306,590 | |||||||||||
Malaysia Government Bond (Malaysia), 4.262%, 9/15/2016 |
MYR | 3,275,000 | 1,009,311 | |||||||||||
Mexican Government Bond (Mexico), 8.00%, 12/17/2015 |
MXN | 26,069,000 | 2,036,223 | |||||||||||
Mexican Government Bond (Mexico), 7.25%, 12/15/2016 |
MXN | 5,945,000 | 472,214 | |||||||||||
Mexican Government Bond (Mexico), 5.00%, 6/15/2017 |
MXN | 9,500,000 | 721,869 | |||||||||||
Mexican Government Bond (Mexico), 8.00%, 6/11/2020 |
MXN | 9,400,000 | 790,769 |
The accompanying notes are an integral part of the financial statements.
83
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||||||
FOREIGN GOVERNMENT BONDS (continued) |
|
|||||||||||||
Mexican Government Bond (Mexico), 6.50%, 6/10/2021 |
MXN | 4,000,000 | $ | 312,259 | ||||||||||
Mexican Government Bond (Mexico), 6.50%, 6/9/2022 |
MXN | 6,500,000 | 505,278 | |||||||||||
Mexican Government Bond (Mexico), 7.75%, 5/29/2031 |
MXN | 1,250,000 | 103,474 | |||||||||||
Russian Foreign Bond - Eurobond (Russia)5, 5.00%, 4/29/2020 |
700,000 | 721,084 | ||||||||||||
Singapore Government Bond (Singapore), 2.50%, 6/1/2019 |
SGD | 845,000 | 692,661 | |||||||||||
Spain Government Bond (Spain), 4.50%, 1/31/2018 |
EUR | 325,000 | 455,200 | |||||||||||
Spain Government Bond (Spain), 4.00%, 4/30/2020 |
EUR | 510,000 | 734,983 | |||||||||||
Spain Government Bond (Spain)5, 5.40%, 1/31/2023 |
EUR | 755,000 | 1,209,624 | |||||||||||
United Kingdom Gilt (United Kingdom), 2.00%, 1/22/2016 |
GBP | 800,000 | 1,301,933 | |||||||||||
United Kingdom Gilt (United Kingdom), 1.00%, 9/7/2017 |
GBP | 375,000 | 599,549 | |||||||||||
United Kingdom Gilt (United Kingdom), 5.00%, 3/7/2018 |
GBP | 475,000 | 855,915 | |||||||||||
|
|
|||||||||||||
TOTAL FOREIGN GOVERNMENT BONDS |
|
|||||||||||||
(Identified Cost $24,480,905) |
24,292,167 | |||||||||||||
|
|
|||||||||||||
MUNICIPAL BONDS - 0.1% |
|
|||||||||||||
Puerto Rico Sales Tax Financing Corp., Public Impt., Series A, Revenue Bond, 5.50%, 8/1/2022 |
750,000 | 656,925 | ||||||||||||
Puerto Rico Sales Tax Financing Corp., Public Impt., Series A, Revenue Bond, 5.50%, 8/1/2023 |
2,280,000 | 1,971,151 | ||||||||||||
|
|
|||||||||||||
TOTAL MUNICIPAL BONDS |
|
|||||||||||||
(Identified Cost $2,769,248) |
2,628,076 | |||||||||||||
|
|
|||||||||||||
U.S. GOVERNMENT AGENCIES - 6.8% |
|
|||||||||||||
Mortgage-Backed Securities - 4.3% |
||||||||||||||
Fannie Mae, Pool #888468, 5.50%, 9/1/2021 |
800,372 | 875,090 | ||||||||||||
Fannie Mae, Pool #995233, 5.50%, 10/1/2021 |
58,924 | 64,433 | ||||||||||||
Fannie Mae, Pool #888017, 6.00%, 11/1/2021 |
77,488 | 85,137 | ||||||||||||
Fannie Mae, Pool #995329, 5.50%, 12/1/2021 |
550,060 | 604,107 | ||||||||||||
Fannie Mae, Pool #888136, 6.00%, 12/1/2021 |
98,295 | 108,043 | ||||||||||||
Fannie Mae, Pool #888810, 5.50%, 11/1/2022 |
946,310 | 1,039,451 | ||||||||||||
Fannie Mae, Pool #990895, 5.50%, 10/1/2023 |
74,632 | 81,262 | ||||||||||||
Fannie Mae, Pool #AD0462, 5.50%, 10/1/2024 |
58,153 | 64,085 | ||||||||||||
Fannie Mae, Pool #AO6562, 3.00%, 6/1/2027 |
344,324 | 358,187 | ||||||||||||
Fannie Mae, Pool #AP0000, 3.50%, 7/1/2027 |
772,515 | 817,771 | ||||||||||||
Fannie Mae, Pool #AB7722, 3.50%, 1/1/2028 |
528,471 | 558,931 | ||||||||||||
Fannie Mae, Pool #AR5986, 3.00%, 2/1/2028 |
201,394 | 209,851 | ||||||||||||
Fannie Mae, Pool #AB8457, 3.50%, 2/1/2028 |
934,321 | 988,173 | ||||||||||||
Fannie Mae, Pool #AR6002, 3.00%, 3/1/2028 |
334,626 | 348,369 | ||||||||||||
Fannie Mae, Pool #AR8950, 3.00%, 3/1/2028 |
482,077 | 501,213 | ||||||||||||
Fannie Mae, Pool #MA1423, 3.50%, 4/1/2028 |
39,498 | 41,774 | ||||||||||||
Fannie Mae, Pool #AT8059, 2.50%, 7/1/2028 |
759,702 | 774,263 | ||||||||||||
Fannie Mae, Pool #AU1270, 2.50%, 7/1/2028 |
396,195 | 403,788 | ||||||||||||
Fannie Mae, Pool #AU1783, 2.50%, 8/1/2028 |
449,357 | 457,970 | ||||||||||||
Fannie Mae, Pool #AS0945, 2.50%, 11/1/2028 |
575,143 | 586,168 | ||||||||||||
Fannie Mae, Pool #MA1834, 4.50%, 2/1/2034 |
1,851,523 | 2,021,101 | ||||||||||||
Fannie Mae, Pool #MA1903, 4.50%, 5/1/2034 |
901,641 | 984,317 | ||||||||||||
Fannie Mae, Pool #888021, 6.00%, 12/1/2036 |
128,819 | 145,856 | ||||||||||||
Fannie Mae, Pool #909786, 5.50%, 3/1/2037 |
331,088 | 369,335 | ||||||||||||
Fannie Mae, Pool #995050, 6.00%, 9/1/2037 |
371,292 | 421,090 | ||||||||||||
Fannie Mae, Pool #AB8161, 6.00%, 12/1/2037 |
1,282,594 | 1,456,708 | ||||||||||||
Fannie Mae, Pool #933731, 5.50%, 4/1/2038 |
1,381,203 | 1,540,757 | ||||||||||||
Fannie Mae, Pool #889576, 6.00%, 4/1/2038 |
773,506 | 875,522 | ||||||||||||
Fannie Mae, Pool #889624, 5.50%, 5/1/2038 |
1,568,738 | 1,749,955 | ||||||||||||
Fannie Mae, Pool #889579, 6.00%, 5/1/2038 |
756,523 | 855,775 | ||||||||||||
Fannie Mae, Pool #995196, 6.00%, 7/1/2038 |
41,749 | 47,269 |
The accompanying notes are an integral part of the financial statements.
84
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | PRINCIPAL AMOUNT 4 |
VALUE (NOTE 2) |
||||||||
U.S. GOVERNMENT AGENCIES (continued) |
||||||||||
Mortgage-Backed Securities (continued) |
||||||||||
Fannie Mae, Pool #AD0119, 6.00%, 7/1/2038 |
572,132 | $ | 646,719 | |||||||
Fannie Mae, Pool #AD0207, 6.00%, 10/1/2038 |
2,493,361 | 2,820,848 | ||||||||
Fannie Mae, Pool #AD0220, 6.00%, 10/1/2038 |
67,753 | 76,761 | ||||||||
Fannie Mae, Pool #890294, 5.50%, 1/1/2039 |
2,795,159 | 3,118,091 | ||||||||
Fannie Mae, Pool #AD0307, 5.50%, 1/1/2039 |
1,574,524 | 1,756,410 | ||||||||
Fannie Mae, Pool #AA7681, 4.50%, 6/1/2039 |
1,120,163 | 1,217,381 | ||||||||
Fannie Mae, Pool #AD0527, 5.50%, 6/1/2039 |
246,092 | 274,520 | ||||||||
Fannie Mae, Pool #MA0258, 4.50%, 12/1/2039 |
1,678,091 | 1,823,164 | ||||||||
Fannie Mae, Pool #890326, 5.50%, 1/1/2040 |
2,259,890 | 2,520,948 | ||||||||
Fannie Mae, Pool #AL1595, 6.00%, 1/1/2040 |
1,390,813 | 1,572,130 | ||||||||
Fannie Mae, Pool #AE0061, 6.00%, 2/1/2040 |
1,367,745 | 1,546,054 | ||||||||
Fannie Mae, Pool #AL0152, 6.00%, 6/1/2040 |
1,803,729 | 2,038,876 | ||||||||
Fannie Mae, Pool #AL2581, 6.00%, 6/1/2040 |
1,052,122 | 1,191,253 | ||||||||
Fannie Mae, Pool #890519, 6.00%, 10/1/2040 |
2,569,462 | 2,909,736 | ||||||||
Fannie Mae, Pool #AE0951, 4.50%, 2/1/2041 |
1,041,235 | 1,132,201 | ||||||||
Fannie Mae, Pool #AH9054, 4.50%, 4/1/2041 |
449,114 | 487,834 | ||||||||
Fannie Mae, Pool #AI2468, 4.50%, 5/1/2041 |
335,515 | 364,385 | ||||||||
Fannie Mae, Pool #AL0160, 4.50%, 5/1/2041 |
1,067,950 | 1,160,620 | ||||||||
Fannie Mae, Pool #AJ1415, 4.50%, 9/1/2041 |
262,317 | 284,704 | ||||||||
Fannie Mae, Pool #AL3454, 3.00%, 4/1/2043 |
862,000 | 867,424 | ||||||||
Fannie Mae, Pool #AT3045, 3.00%, 4/1/2043 |
204,176 | 205,461 | ||||||||
Fannie Mae, Pool #AB9782, 3.00%, 7/1/2043 |
471,981 | 474,657 | ||||||||
Fannie Mae, Pool #MA1489, 3.00%, 7/1/2043 |
430,793 | 431,635 | ||||||||
Freddie Mac, Pool #G11850, 5.50%, 7/1/2020 |
311,478 | 332,178 | ||||||||
Freddie Mac, Pool #G12610, 6.00%, 3/1/2022 |
94,665 | 104,091 | ||||||||
Freddie Mac, Pool #G12655, 6.00%, 5/1/2022 |
69,354 | 76,101 | ||||||||
Freddie Mac, Pool #G12988, 6.00%, 1/1/2023 |
52,854 | 58,415 | ||||||||
Freddie Mac, Pool #G13078, 6.00%, 3/1/2023 |
94,829 | 104,762 | ||||||||
Freddie Mac, Pool #G13331, 5.50%, 10/1/2023 |
38,572 | 42,110 | ||||||||
Freddie Mac, Pool #J22427, 3.00%, 2/1/2028 |
382,234 | 396,791 | ||||||||
Freddie Mac, Pool #G14708, 3.50%, 2/1/2028 |
541,259 | 572,427 | ||||||||
Freddie Mac, Pool #C91754, 4.50%, 2/1/2034 |
1,119,550 | 1,221,068 | ||||||||
Freddie Mac, Pool #C91762, 4.50%, 4/1/2034 |
1,370,613 | 1,491,958 | ||||||||
Freddie Mac, Pool #G03332, 6.00%, 10/1/2037 |
139,995 | 157,981 | ||||||||
Freddie Mac, Pool #G03696, 5.50%, 1/1/2038 |
317,223 | 353,493 | ||||||||
Freddie Mac, Pool #G03926, 6.00%, 2/1/2038 |
412,201 | 465,214 | ||||||||
Freddie Mac, Pool #G04264, 5.50%, 4/1/2038 |
977,247 | 1,090,535 | ||||||||
Freddie Mac, Pool #G04731, 5.50%, 4/1/2038 |
590,967 | 659,691 | ||||||||
Freddie Mac, Pool #G08273, 5.50%, 6/1/2038 |
701,425 | 783,470 | ||||||||
Freddie Mac, Pool #G04601, 5.50%, 7/1/2038 |
2,029,890 | 2,260,279 | ||||||||
Freddie Mac, Pool #G05956, 5.50%, 7/1/2038 |
1,439,654 | 1,604,517 | ||||||||
Freddie Mac, Pool #G04587, 5.50%, 8/1/2038 |
2,130,173 | 2,372,475 | ||||||||
Freddie Mac, Pool #G05671, 5.50%, 8/1/2038 |
563,135 | 628,575 | ||||||||
Freddie Mac, Pool #G06172, 5.50%, 12/1/2038 |
1,069,605 | 1,192,747 | ||||||||
Freddie Mac, Pool #G05409, 5.50%, 3/1/2039 |
730,211 | 815,137 | ||||||||
Freddie Mac, Pool #A86522, 4.50%, 5/1/2039 |
1,637,213 | 1,773,583 | ||||||||
Freddie Mac, Pool #A89760, 4.50%, 12/1/2039 |
270,580 | 293,185 | ||||||||
Freddie Mac, Pool #G06021, 5.50%, 1/1/2040 |
331,736 | 370,040 | ||||||||
Freddie Mac, Pool #G05923, 5.50%, 2/1/2040 |
209,509 | 233,864 | ||||||||
Freddie Mac, Pool #G05900, 6.00%, 3/1/2040 |
569,812 | 643,018 |
The accompanying notes are an integral part of the financial statements.
85
Investment Portfolio - October 31, 2014
PRO-BLEND® EXTENDED TERM SERIES | PRINCIPAL AMOUNT 4/ SHARES/ CONTRACTS |
VALUE (NOTE 2) |
||||||||
U.S. GOVERNMENT AGENCIES (continued) |
||||||||||
Mortgage-Backed Securities (continued) |
||||||||||
Freddie Mac, Pool #G05906, 6.00%, 4/1/2040 |
359,664 | $ | 406,566 | |||||||
Freddie Mac, Pool #G07589, 5.50%, 6/1/2041 |
3,390,422 | 3,782,041 | ||||||||
Freddie Mac, Pool #C09026, 2.50%, 2/1/2043 |
887,150 | 854,960 | ||||||||
Freddie Mac, Pool #V80002, 2.50%, 4/1/2043 |
1,106,642 | 1,066,475 | ||||||||
Freddie Mac, Pool #Q19115, 3.00%, 6/1/2043 |
457,907 | 461,072 | ||||||||
|
|
|||||||||
Total Mortgage-Backed Securities |
||||||||||
(Identified Cost $73,184,414) |
75,026,382 | |||||||||
|
|
|||||||||
Other Agencies - 2.5% |
||||||||||
Freddie Mac, 1.75%, 5/30/2019 |
30,000,000 | 30,037,740 | ||||||||
Freddie Mac, 1.25%, 10/2/2019 |
15,000,000 | 14,630,040 | ||||||||
|
|
|||||||||
Total Other Agencies |
||||||||||
(Identified Cost $44,777,027) |
44,667,780 | |||||||||
|
|
|||||||||
TOTAL U.S. GOVERNMENT AGENCIES |
||||||||||
(Identified Cost $117,961,441) |
119,694,162 | |||||||||
|
|
|||||||||
U.S. GOVERNMENT SECURITIES - 4.9% |
||||||||||
U.S. Treasury Bills - 4.9% |
||||||||||
U.S. Treasury Bill8,9, 0.07%, 7/23/2015 |
||||||||||
(Identified Cost $86,345,610) |
86,390,000 | 86,339,721 | ||||||||
|
|
|||||||||
SHORT-TERM INVESTMENT - 2.0% |
||||||||||
Dreyfus Cash Management, Inc. - Institutional Shares10, 0.03%, |
||||||||||
(Identified Cost $34,565,772) |
34,565,772 | 34,565,772 | ||||||||
|
|
|||||||||
TOTAL INVESTMENTS - 99.0% |
||||||||||
(Identified Cost $1,631,109,787) |
1,744,296,843 | |||||||||
OTHER ASSETS, LESS LIABILITIES - 1.0% |
16,801,998 | |||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 1,761,098,841 | ||||||||
|
|
|||||||||
CALL OPTIONS WRITTEN - 0.0%## |
||||||||||
Twenty-First Century Fox, Inc. - Class A, Strike $33.00, Expiring November 22, 2014, |
||||||||||
(Premiums Received $435,819) |
4,075 | $ | (819,075 | ) | ||||||
|
|
|||||||||
PUT OPTIONS WRITTEN - 0.0%## |
||||||||||
Amazon.com, Inc., Strike $260.00, Expiring November 22, 2014, |
376 | (10,528 | ) | |||||||
Facebook, Inc. - Class A, Strike $66.00, Expiring November 22, 2014, |
1,316 | (18,424 | ) | |||||||
Google, Inc. - Class A, Strike $490.00, Expiring November 22, 2014, |
158 | (2,844 | ) | |||||||
Google, Inc. - Class C, Strike $490.00, Expiring November 22, 2014, |
161 | (3,542 | ) | |||||||
Time Warner, Inc., Strike $74.00, Expiring November 7, 2014, |
721 | (2,163 | ) | |||||||
|
|
|||||||||
TOTAL PUT OPTIONS WRITTEN |
||||||||||
(Premiums Received $199,070) |
(37,501 | ) | ||||||||
|
|
FUTURES CONTRACTS: LONG POSITIONS OPEN AT OCTOBER 31, 2014: | ||||||||||||||
CONTRACTS PURCHASED |
ISSUE | EXCHANGE | EXPIRATION | NOTIONAL VALUE4 | UNREALIZED APPRECIATION (DEPRECIATION) |
|||||||||
345 | U.S. Treasury Notes (5 Year) | CBOT | December 2014 | 41,203,242 | $ | (62,501 | ) | |||||||
3,109 | U.S. Treasury Notes (2 Year) | CBOT | December 2014 | 682,619,812 | 1,813,748 | |||||||||
71 | U.S. Ultra Treasury Bonds | CBOT | December 2014 | 11,133,688 | 98,811 | |||||||||
905 | Euro Dollar Futures | CME | June 2015 | 225,367,625 | 100,231 | |||||||||
|
|
|||||||||||||
Total | 1,950,289 | |||||||||||||
|
|
The accompanying notes are an integral part of the financial statements.
86
Investment Portfolio - October 31, 2014
FUTURES CONTRACTS: SHORT POSITIONS OPEN AT OCTOBER 31, 2014: | ||||||||||||
CONTRACTS SOLD | ISSUE | EXCHANGE | EXPIRATION | NOTIONAL VALUE4 | UNREALIZED DEPRECIATION |
|||||||
306 |
U.S. Treasury Bonds (30 Year) |
CBOT | December 2014 | 43,174,687 | $ | (538,367 | ) | |||||
357 |
U.S. Treasury Notes (10 Year) | CBOT | December 2014 | 45,110,297 | (159,992 | ) | ||||||
123 |
Euro Dollar Futures | CME | June 2016 | 30,342,563 | (72,706 | ) | ||||||
269 |
Euro Dollar Futures | CME | September 2016 | 66,187,450 | (165,779 | ) | ||||||
250 |
Euro Dollar Futures | CME | December 2016 | 61,356,250 | (149,413 | ) | ||||||
232 |
Euro Dollar Futures | CME | March 2017 | 56,816,800 | (132,947 | ) | ||||||
271 |
Euro Dollar Futures | CME | June 2017 | 66,235,788 | (151,593 | ) | ||||||
252 |
Euro Dollar Futures | CME | September 2017 | 61,491,150 | (133,939 | ) | ||||||
252 |
Euro Dollar Futures | CME | December 2017 | 61,396,650 | (134,540 | ) | ||||||
253 |
Euro Dollar Futures | CME | March 2018 | 61,567,550 | (141,604 | ) | ||||||
128 |
Euro Dollar Futures | CME | June 2018 | 31,116,800 | (36,095 | ) | ||||||
|
|
|||||||||||
Total |
$ | (1,816,975 | ) | |||||||||
|
|
ADR - American Depositary Receipt
AUD - Australian Dollar
BRL - Brazilian Real
CAD - Canadian Dollar
CBOT - Chicago Board of Trade
CLP - Chilean Peso
CME - Chicago Mercantile Exchange
EUR - Euro
GBP - British Pound
IDR - Indonesian Rupiah
IO - Interest only
JPY - Japanese Yen
KRW - South Korean Won
MXN - Mexican Peso
MYR - Malaysian Ringgit
SGD - Singapore Dollar
*Non-income producing security.
##Less than 0.1%.
1 A factor from a third party vendor was applied to determine the securitys fair value following the close of local trading.
2 Latest quoted sales price is not available and the latest quoted bid price was used to value the security.
3 The rate shown is a fixed rate as of October 31, 2014; the rate becomes floating, based on LIBOR plus a spread, at dates ranging from 2015 to 2022.
4 Amount is stated in USD unless otherwise noted.
5 Restricted securities - Investment in securities that are restricted as to public resale under the Securities Act of 1933, as amended. These securities have been sold under Rule 144A and have been determined to be liquid. These securities amount to $99,885,747 or 5.7%, of the Series net assets as of October 31, 2014 (see Note 2 to the financial statements).
6 The coupon rate is floating and is the effective rate as of October 31, 2014.
7 Represents a Payment-In-Kind bond.
8 All or a portion of security has been pledged in connection with outstanding futures contracts.
9 Represents the annualized yield at time of purchase.
10 Rate shown is the current yield as of October 31, 2014.
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard & Poors, a division of The McGraw-Hill Companies, Inc. (S&P), and is licensed for use by Manning & Napier when referencing GICS sectors. Neither MSCI, S&P, nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification, nor shall any such party have any liability therefrom.
The accompanying notes are an integral part of the financial statements.
87
Statement of Assets and Liabilities - Pro-Blend® Extended Term Series
October 31, 2014
ASSETS: |
||||
Investments, at value (identified cost $1,631,109,787) (Note 2) |
$ | 1,744,296,843 | ||
Deposits at broker for futures contracts |
17,269,384 | |||
Receivable for securities sold |
11,431,818 | |||
Interest receivable |
5,573,626 | |||
Receivable for fund shares sold |
1,740,394 | |||
Dividends receivable |
650,276 | |||
Variation margin receivable on futures contracts |
116,872 | |||
Foreign tax reclaims receivable |
377,503 | |||
|
|
|||
TOTAL ASSETS |
1,781,456,716 | |||
|
|
|||
LIABILITIES: |
||||
Options written, at value (premiums received $634,889) (Note 2) |
856,576 | |||
Accrued foreign capital gains tax (Note 2) |
1,334 | |||
Accrued management fees (Note 3) |
1,100,732 | |||
Accrued shareholder services fees (Class S) (Note 3) |
181,769 | |||
Accrued distribution and service (Rule 12b-1) fees (Class C) (Class R) (Note 3) |
161,937 | |||
Accrued fund accounting and administration fees (Note 3) |
84,088 | |||
Accrued transfer agent fees (Note 3) |
26,612 | |||
Accrued Chief Compliance Officer service fees (Note 3) |
407 | |||
Payable for fund shares repurchased |
12,091,208 | |||
Payable for securities purchased |
5,710,454 | |||
Other payables and accrued expenses |
142,758 | |||
|
|
|||
TOTAL LIABILITIES |
20,357,875 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 1,761,098,841 | ||
|
|
|||
NET ASSETS CONSIST OF: |
||||
Capital stock |
$ | 1,249,795 | ||
Additional paid-in-capital |
1,469,885,988 | |||
Undistributed net investment income |
7,131,536 | |||
Accumulated net realized gain on investments, foreign currency and translation of other assets and liabilities |
169,773,794 | |||
Net unrealized appreciation on investments (net of foreign capital gains tax of $1,334), foreign currency and translation of other assets and liabilities |
113,057,728 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 1,761,098,841 | ||
|
|
The accompanying notes are an integral part of the financial statements.
88
Statement of Assets and Liabilities - Pro-Blend® Extended Term Series
October 31, 2014
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class S ($872,014,027/47,703,482 shares) |
$ | 18.28 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class I ($659,330,897/58,335,442 shares) |
$ | 11.30 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class C ($164,190,947/13,743,914 shares) |
$ | 11.95 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class R ($65,562,970/5,196,705 shares) |
$ | 12.62 | ||
|
|
The accompanying notes are an integral part of the financial statements.
89
Statement of Operations - Pro-Blend® Extended Term Series
For the Year Ended October 31, 2014
INVESTMENT INCOME: |
||||
Interest |
$ | 19,181,536 | ||
Dividends (net of foreign taxes withheld, $694,097) |
16,067,557 | |||
|
|
|||
Total Investment Income |
35,249,093 | |||
|
|
|||
EXPENSES: |
||||
Management fees (Note 3) |
12,580,921 | |||
Shareholder services fees (Class S) (Note 3) |
2,144,937 | |||
Distribution and service (Rule 12b-1) fees (Class C) (Note 3) |
1,486,766 | |||
Distribution and service (Rule 12b-1) fees (Class R) (Note 3) |
315,913 | |||
Fund accounting and administration fees (Note 3) |
299,718 | |||
Transfer agent fees (Note 3) |
202,654 | |||
Directors fees (Note 3) |
37,271 | |||
Chief Compliance Officer service fees (Note 3) |
3,161 | |||
Custodian fees |
136,524 | |||
Miscellaneous |
313,367 | |||
|
|
|||
Total Expenses |
17,521,232 | |||
|
|
|||
NET INVESTMENT INCOME |
17,727,861 | |||
|
|
|||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: |
||||
Net realized gain (loss) on- |
||||
Investments |
172,845,906 | |||
Futures contracts |
(1,415,315 | ) | ||
Options Written |
(672,707 | ) | ||
Foreign currency and translation of other assets and liabilities |
112,831 | |||
|
|
|||
170,870,715 | ||||
|
|
|||
Net change in unrealized appreciation (depreciation) on- |
||||
Investments (net of increase in accrued foreign capital gains tax of $1,054) |
(77,740,758 | ) | ||
Futures contracts |
133,314 | |||
Options Written |
(221,687 | ) | ||
Foreign currency and translation of other assets and liabilities |
(57,860 | ) | ||
|
|
|||
(77,886,991 | ) | |||
|
|
|||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY |
92,983,724 | |||
|
|
|||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 110,711,585 | ||
|
|
The accompanying notes are an integral part of the financial statements.
90
Statements of Changes in Net Assets - Pro-Blend® Extended Term Series
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||
OPERATIONS: |
||||||||
Net investment income |
$ | 17,727,861 | $ | 14,935,581 | ||||
Net realized gain (loss) on investments and foreign currency |
170,870,715 | 98,095,333 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency |
(77,886,991 | ) | 117,871,661 | |||||
|
|
|
|
|||||
Net increase from operations |
110,711,585 | 230,902,575 | ||||||
|
|
|
|
|||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||
From net investment income (Class S) |
(5,851,421 | ) | (6,514,289 | ) | ||||
From net investment income (Class I) |
(8,724,840 | ) | (7,101,607 | ) | ||||
From net investment income (Class C) |
(706,642 | ) | (592,034 | ) | ||||
From net investment income (Class R) |
(534,624 | ) | (435,307 | ) | ||||
From net realized gain on investments (Class S) |
(41,050,473 | ) | (24,653,573 | ) | ||||
From net realized gain on investments (Class I) |
(43,085,027 | ) | (18,872,811 | ) | ||||
From net realized gain on investments (Class C) |
(9,510,512 | ) | (3,954,106 | ) | ||||
From net realized gain on investments (Class R) |
(4,118,550 | ) | (1,729,274 | ) | ||||
|
|
|
|
|||||
Total distributions to shareholders |
(113,582,089 | ) | (63,853,001 | ) | ||||
|
|
|
|
|||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||
Net increase from capital share transactions (Note 5) |
212,524,069 | 38,586,025 | ||||||
|
|
|
|
|||||
Net increase in net assets |
209,653,565 | 205,635,599 | ||||||
NET ASSETS: |
||||||||
Beginning of year |
1,551,445,276 | 1,345,809,677 | ||||||
|
|
|
|
|||||
End of year (including undistributed net investment income of $7,131,536 and |
$ | 1,761,098,841 | $ | 1,551,445,276 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
91
Financial Highlights - Pro-Blend® Extended Term Series - Class S
FOR THE YEARS ENDED | ||||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 18.10 | $ | 16.01 | $ | 15.46 | $ | 15.16 | $ | 13.32 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1 |
0.19 | 0.17 | 0.19 | 0.23 | 0.22 | |||||||||||||||
Net realized and unrealized gain on investments |
1.02 | 2.56 | 1.01 | 0.26 | 1.78 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
1.21 | 2.73 | 1.20 | 0.49 | 2.00 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.13 | ) | (0.14 | ) | (0.19 | ) | (0.19 | ) | (0.16 | ) | ||||||||||
From net realized gain on investments |
(0.90 | ) | (0.50 | ) | (0.46 | ) | | | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(1.03 | ) | (0.64 | ) | (0.65 | ) | (0.19 | ) | (0.16 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 18.28 | $ | 18.10 | $ | 16.01 | $ | 15.46 | $ | 15.16 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 872,014 | $ | 820,370 | $ | 792,804 | $ | 716,536 | $ | 676,524 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return2 |
7.08 | % | 17.56 | % | 8.26 | % | 3.26 | % | 15.17 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
1.06 | % | 1.06 | % | 1.07 | % | 1.08 | % | 1.07 | % | ||||||||||
Net investment income |
1.04 | % | 1.03 | % | 1.20 | % | 1.49 | % | 1.52 | % | ||||||||||
Series portfolio turnover |
65 | % | 64 | % | 58 | % | 65 | % | 62 | % | ||||||||||
*The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
N/A | N/A | N/A | N/A | 0.00 | %3 |
1Calculated based on average shares outstanding during the years.
2Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during certain years.
3Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
92
Financial Highlights - Pro-Blend® Extended Term Series - Class I
FOR THE YEARS ENDED | ||||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||
Net asset value - Beginning of year |
$ | 11.60 | $ | 10.50 | $ | 10.38 | $ | 10.26 | $ | 9.08 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income1 |
0.15 | 0.14 | 0.15 | 0.18 | 0.17 | |||||||||||||||
Net realized and unrealized gain on investments |
0.62 | 1.64 | 0.66 | 0.17 | 1.22 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.77 | 1.78 | 0.81 | 0.35 | 1.39 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.17 | ) | (0.18 | ) | (0.23 | ) | (0.23 | ) | (0.21 | ) | ||||||||||
From net realized gain on investments |
(0.90 | ) | (0.50 | ) | (0.46 | ) | | | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(1.07 | ) | (0.68 | ) | (0.69 | ) | (0.23 | ) | (0.21 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of year |
$ | 11.30 | $ | 11.60 | $ | 10.50 | $ | 10.38 | $ | 10.26 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of year (000s omitted) |
$ | 659,331 | $ | 547,522 | $ | 429,157 | $ | 321,632 | $ | 278,210 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return2 |
7.32 | % | 17.80 | % | 8.60 | % | 3.43 | % | 15.39 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
0.81 | % | 0.81 | % | 0.82 | % | 0.83 | % | 0.83 | % | ||||||||||
Net investment income |
1.29 | % | 1.27 | % | 1.45 | % | 1.74 | % | 1.76 | % | ||||||||||
Series portfolio turnover |
65 | % | 64 | % | 58 | % | 65 | % | 62 | % | ||||||||||
* The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
N/A | N/A | N/A | N/A | 0.00 | %3 |
1Calculated based on average shares outstanding during the years.
2Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during certain years.
3Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
93
Financial Highlights - Pro-Blend® Extended Term Series - Class C
FOR THE YEARS ENDED | FOR THE PERIOD 1/4/101 TO |
|||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | |||||||||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||||||||||
Net asset value - Beginning of period |
$ | 12.21 | $ | 11.02 | $ | 10.86 | $ | 10.74 | $ | 10.00 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income2 |
0.03 | 0.03 | 0.05 | 0.08 | 0.06 | |||||||||||||||
Net realized and unrealized gain on investments |
0.67 | 1.73 | 0.70 | 0.19 | 0.73 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.70 | 1.76 | 0.75 | 0.27 | 0.79 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.06 | ) | (0.07 | ) | (0.13 | ) | (0.15 | ) | (0.05 | ) | ||||||||||
From net realized gain on investments |
(0.90 | ) | (0.50 | ) | (0.46 | ) | | | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(0.96 | ) | (0.57 | ) | (0.59 | ) | (0.15 | ) | (0.05 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of period |
$ | 11.95 | $ | 12.21 | $ | 11.02 | $ | 10.86 | $ | 10.74 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of period (000s omitted) |
$ | 164,191 | $ | 124,854 | $ | 85,588 | $ | 68,436 | $ | 29,468 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
6.28 | % | 16.65 | % | 7.51 | % | 2.49 | % | 7.97 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
1.81 | % | 1.81 | % | 1.82 | % | 1.83 | % | 1.83 | %4 | ||||||||||
Net investment income |
0.29 | % | 0.27 | % | 0.44 | % | 0.71 | % | 0.75 | %4 | ||||||||||
Series portfolio turnover |
65 | % | 64 | % | 58 | % | 65 | % | 62 | % | ||||||||||
* The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
N/A | N/A | N/A | N/A | 0.00 | %4,5 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Represents aggregate total return for the periods indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during the periods. Periods less than one year are not annualized.
4Annualized.
5Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
94
Financial Highlights - Pro-Blend® Extended Term Series - Class R
FOR THE YEARS ENDED | FOR THE PERIOD 6/30/101 TO 10/31/10 |
|||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | |||||||||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||||||||||
Net asset value - Beginning of period |
$ | 12.83 | $ | 11.54 | $ | 11.36 | $ | 11.22 | $ | 10.00 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from investment operations: |
||||||||||||||||||||
Net investment income2 |
0.10 | 0.09 | 0.10 | 0.11 | 0.02 | |||||||||||||||
Net realized and unrealized gain on investments |
0.70 | 1.82 | 0.74 | 0.23 | 1.20 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.80 | 1.91 | 0.84 | 0.34 | 1.22 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.11 | ) | (0.12 | ) | (0.20 | ) | (0.20 | ) | | |||||||||||
From net realized gain on investments |
(0.90 | ) | (0.50 | ) | (0.46 | ) | | | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(1.01 | ) | (0.62 | ) | (0.66 | ) | (0.20 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of period |
$ | 12.62 | $ | 12.83 | $ | 11.54 | $ | 11.36 | $ | 11.22 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of period (000s omitted) |
$ | 65,563 | $ | 58,700 | $ | 38,261 | $ | 8,281 | $ | 112 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return3 |
6.81 | % | 17.28 | % | 8.03 | % | 3.04 | % | 12.20 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses |
1.31 | % | 1.31 | % | 1.33 | % | 1.33 | % | 1.33 | %4 | ||||||||||
Net investment income |
0.79 | % | 0.77 | % | 0.90 | % | 0.97 | % | 0.43 | %4 | ||||||||||
Series portfolio turnover |
65 | % | 64 | % | 58 | % | 65 | % | 62 | % |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Represents aggregate total return for the periods indicated, and assumes reinvestment of all distributions. Periods less than one year are not annualized.
4Annualized.
The accompanying notes are an integral part of the financial statements.
95
Performance Update - Pro-Blend® Maximum Term Series
(unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2014 | ||||||||||||||||
ONE YEAR1 |
FIVE YEAR |
TEN YEAR |
SINCE INCEPTION2 |
|||||||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Maximum Term Series - Class S3 |
8.80 | % | 12.10 | % | 7.87 | % | 9.46 | % | ||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Maximum Term Series - Class I3,4 |
9.10 | % | 12.38 | % | 8.04 | % | 9.55 | % | ||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Maximum Term Series - Class C3,5 |
8.06 | % | 11.27 | % | 7.09 | % | 8.71 | % | ||||||||
Manning & Napier Fund, Inc. - Pro-Blend® Maximum Term Series - Class R3,5 |
8.53 | % | 11.84 | % | 7.63 | % | 9.25 | % | ||||||||
Russell 3000® Index6 |
16.07 | % | 17.01 | % | 8.55 | % | 8.91 | % | ||||||||
65/20/15 Blended Index7 |
10.95 | % | 12.99 | % | 7.81 | % | 8.04 | % |
The following graph compares the value of a $10,000 investment in the Manning & Napier Fund, Inc.- Pro-Blend® Maximum Term Series - Class S for the ten years ended October 31, 2014 to the Russell 3000® Index and the 65/20/15 Blended Index.
1The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
2Performance numbers for the Series and Indices are calculated from November 1, 1995, the Class S inception date.
3The Series performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The Series performance is historical and may not be indicative of future results. The performance returns shown are inclusive of the net expense ratio of the Series. For the year ended October 31, 2014, this net expense ratio was 1.07% for Class S, 0.82% for Class I, 1.82% for Class C and 1.32% for Class R. The gross expense ratio, which does not account for any voluntary or contractual waivers currently in effect, was 1.07% for Class S, 0.82% for Class I, 1.82% for Class C and 1.32% for Class R for the year ended October 31, 2014.
4For the periods through the inception of Class I on March 28, 2008, performance is based on the hypothetical performance of Class S shares. Because Class I shares invest in the same portfolio of securities as Class S, performance will only be different to the extent that the Class S shares have a higher expense ratio.
5For periods through the inception of Class C on January 4, 2010 and Class R on June 30, 2010, the performance figures are hypothetical and reflect the performance of the Manning & Napier Fund, Inc. - Pro-Blend® Maximum Term Series - Class S adjusted for expense differences.
6The Russell 3000® Index is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. The Index returns do not reflect any fees or expenses. Index returns provided by Bloomberg.
96
Performance Update - Pro-Blend® Maximum Term Series
(unaudited)
7The 65/20/15 Blended Index is 65% Russell 3000® Index (Russell 3000), 20% MSCI ACWI ex USA Index (ACWIxUS), and 15% Barclays U.S. Aggregate Bond Index (BAB). Russell 3000 is an unmanaged index that consists of 3,000 of the largest U.S. companies based on total market capitalization. The Index returns are based on a market capitalization-weighted average of relative price changes of the component stocks plus dividends whose reinvestments are compounded daily. Index returns provided by Bloomberg. ACWIxUS is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets and consists of 44 developed and emerging market country indices outside the U.S. The Index is denominated in U.S. dollars. The Index returns assume daily investment of gross dividends (which do not account for applicable dividend taxation) prior to 12/31/ 1998, as net returns were not available. Subsequent to 12/31/1998, the Index returns are net of withholding taxes. They assume daily reinvestment of net dividends, thus accounting for any applicable dividend taxation. Index returns provided by Bloomberg. BAB is an unmanaged index that represents the U.S. domestic investment-grade bond market. It is a market value-weighted index of investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities of one year or more. Index returns provided by Interactive Data. The returns of the indices do not reflect any fees or expenses. Returns provided are calculated monthly using a blended allocation. Because the Series asset allocation will vary over time, the composition of the Series portfolio may not match the composition of the comparative indices.
97
Shareholder Expense Example - Pro-Blend® Maximum Term Series
(unaudited)
BEGINNING ACCOUNT VALUE 5/1/14 |
ENDING ACCOUNT VALUE 10/31/14 |
EXPENSES PAID DURING PERIOD 5/1/14-10/31/14* |
ANNUALIZED EXPENSE RATIO | |||||
Class S |
||||||||
Actual |
$1,000.00 | $1,015.60 | $5.44 | 1.07% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,019.81 | $5.45 | 1.07% | ||||
Class I |
||||||||
Actual |
$1,000.00 | $1,016.40 | $4.17 | 0.82% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,021.07 | $4.18 | 0.82% | ||||
Class C |
||||||||
Actual |
$1,000.00 | $1,012.00 | $9.23 | 1.82% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,016.03 | $9.25 | 1.82% | ||||
Class R |
||||||||
Actual |
$1,000.00 | $1,014.00 | $6.70 | 1.32% | ||||
Hypothetical (5% return before expenses) |
$1,000.00 | $1,018.55 | $6.72 | 1.32% |
*Expenses are equal to the Class annualized expense ratio (for the six-month period), multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period. Expenses are based on the most recent fiscal half year; therefore, the expense ratios stated above may differ from the expense ratios stated in the financial highlights, which are based on one-year data.
98
Portfolio Composition - Pro-Blend® Maximum Term Series
As of October 31, 2014 (unaudited)
99
Investment Portfolio - October 31, 2014
PRO-BLEND® MAXIMUM TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS - 90.0% |
||||||||||
Consumer Discretionary - 21.1% |
||||||||||
Auto Components - 0.1% |
||||||||||
F.C.C. Co. Ltd. (Japan)1 |
7,700 | $ | 131,045 | |||||||
Halla Holdings Corp. (South Korea)1 |
1,468 | 97,070 | ||||||||
Hankook Tire Co. Ltd. (South Korea)1 |
9,740 | 501,842 | ||||||||
Mando Corp. (South Korea)*1 |
1,602 | 302,044 | ||||||||
Musashi Seimitsu Industry Co. Ltd. (Japan)1 |
8,100 | 159,018 | ||||||||
Nissin Kogyo Co. Ltd. (Japan)1 |
11,000 | 170,009 | ||||||||
|
|
|||||||||
1,361,028 | ||||||||||
|
|
|||||||||
Automobiles - 0.0%## |
||||||||||
Hyundai Motor Co. (South Korea)1 |
1,560 | 247,543 | ||||||||
Toyota Motor Corp. (Japan)1 |
2,400 | 144,425 | ||||||||
|
|
|||||||||
391,968 | ||||||||||
|
|
|||||||||
Diversified Consumer Services - 1.0% |
||||||||||
Apollo Education Group, Inc.* |
364,442 | 10,444,908 | ||||||||
Kroton Educacional S.A. (Brazil) |
142,242 | 1,013,759 | ||||||||
|
|
|||||||||
11,458,667 | ||||||||||
|
|
|||||||||
Hotels, Restaurants & Leisure - 1.6% |
||||||||||
Accor S.A. (France)1 |
14,980 | 629,344 | ||||||||
Arcos Dorados Holdings, Inc. - Class A (Argentina) |
27,360 | 168,538 | ||||||||
Darden Restaurants, Inc. |
14,540 | 752,881 | ||||||||
Hyatt Hotels Corp. - Class A* |
3,810 | 225,628 | ||||||||
Whistler Blackcomb Holdings, Inc. (Canada) |
8,110 | 136,936 | ||||||||
Whitbread plc (United Kingdom)1 |
11,030 | 771,004 | ||||||||
Yum! Brands, Inc. |
232,620 | 16,709,095 | ||||||||
|
|
|||||||||
19,393,426 | ||||||||||
|
|
|||||||||
Household Durables - 1.4% |
||||||||||
DR Horton, Inc. |
227,004 | 5,173,421 | ||||||||
Lennar Corp. - Class A |
117,542 | 5,063,709 | ||||||||
LG Electronics, Inc. (South Korea)1 |
8,820 | 538,652 | ||||||||
Nikon Corp. (Japan)1 |
30,000 | 411,050 | ||||||||
PulteGroup, Inc |
22,370 | 429,280 | ||||||||
Toll Brothers, Inc.* |
142,060 | 4,538,817 | ||||||||
TRI Pointe Homes, Inc.* |
8,330 | 114,038 | ||||||||
WCI Communities, Inc.* |
3,200 | 60,032 | ||||||||
|
|
|||||||||
16,328,999 | ||||||||||
|
|
|||||||||
Internet & Catalog Retail - 4.2% |
||||||||||
Amazon.com, Inc.* |
35,160 | 10,739,974 | ||||||||
ASOS plc (United Kingdom)*1 |
15,430 | 657,942 | ||||||||
Expedia, Inc. |
9,090 | 772,377 | ||||||||
Groupon, Inc.* |
292,280 | 2,136,567 | ||||||||
HomeAway, Inc.* |
185,700 | 6,480,930 | ||||||||
MakeMyTrip Ltd. (India)* |
8,850 | 266,695 | ||||||||
Ocado Group plc (United Kingdom)*1 |
26,000 | 103,568 | ||||||||
The Priceline Group, Inc.* |
8,840 | 10,662,896 | ||||||||
Rakuten, Inc. (Japan)1 |
57,010 | 642,872 | ||||||||
Shutterfly, Inc.* |
234,950 | 9,827,959 | ||||||||
TripAdvisor, Inc.* |
94,900 | 8,413,834 | ||||||||
|
|
|||||||||
50,705,614 | ||||||||||
|
|
|||||||||
Media - 10.9% |
||||||||||
AMC Networks, Inc. - Class A* |
315,405 | 19,129,313 | ||||||||
British Sky Broadcasting Group plc (United Kingdom)1 |
36,480 | 517,002 | ||||||||
Discovery Communications, Inc. - Class A* |
32,520 | 1,149,582 | ||||||||
Gannett Co., Inc |
474,420 | 14,944,230 | ||||||||
Global Mediacom Tbk PT (Indonesia)1 |
972,390 | 157,819 | ||||||||
ITV plc (United Kingdom)1 |
29,510 | 95,868 | ||||||||
Lamar Advertising Co. - Class A |
3,770 | 194,721 | ||||||||
Liberty Global plc - Class A - ADR (United Kingdom)* |
133,010 | 6,047,965 | ||||||||
Liberty Global plc - Class C - ADR (United Kingdom)* |
136,440 | 6,067,487 | ||||||||
Mediaset Espana Comunicacion S.A. (Spain)*1 |
87,380 | 1,096,998 | ||||||||
Modern Times Group AB - Class B (Sweden)1 |
3,520 | 108,824 | ||||||||
Morningstar, Inc. |
15,080 | 1,029,210 | ||||||||
Nexstar Broadcasting Group, Inc. - Class A |
120,790 | 5,450,045 | ||||||||
ProSiebenSat.1 Media AG (Germany)1 |
2,640 | 106,646 | ||||||||
Reed Elsevier plc - ADR (United Kingdom) |
3,805 | 250,141 | ||||||||
Sinclair Broadcast Group, Inc. - Class A |
381,430 | 11,080,541 | ||||||||
Societe Television Francaise 1 (France)1 |
27,303 | 407,047 | ||||||||
Starz - Class A* |
355,270 | 10,977,843 | ||||||||
Time Warner, Inc. |
109,080 | 8,668,588 | ||||||||
Tribune Media Co. - Class A* |
103,802 | 6,954,734 | ||||||||
Twenty-First Century Fox, Inc. - Class A |
492,860 | 16,993,813 | ||||||||
Viacom, Inc. - Class B |
231,380 | 16,816,698 | ||||||||
World Wrestling Entertainment, Inc. - Class A |
155,810 | 1,924,253 | ||||||||
|
|
|||||||||
130,169,368 | ||||||||||
|
|
|||||||||
Multiline Retail - 0.0%## |
||||||||||
Marks & Spencer Group plc (United Kingdom)1 |
28,500 | 185,586 | ||||||||
|
|
|||||||||
Specialty Retail - 0.6% |
||||||||||
American Eagle Outfitters, Inc. |
115,770 | 1,489,960 | ||||||||
Belle International Holdings Ltd. (Hong Kong)1 |
666,900 | 848,647 |
The accompanying notes are an integral part of the financial statements.
100
Investment Portfolio - October 31, 2014
PRO-BLEND® MAXIMUM TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Consumer Discretionary (continued) |
||||||||||
Specialty Retail (continued) |
||||||||||
China ZhengTong Auto Services Holdings Ltd. (China)1 |
542,000 | $ | 307,044 | |||||||
Dicks Sporting Goods, Inc. |
37,210 | 1,688,218 | ||||||||
Groupe Fnac S.A. (France)*1 |
246 | 10,343 | ||||||||
Hennes & Mauritz AB - Class B (Sweden)1 |
6,720 | 268,125 | ||||||||
Kingfisher plc (United Kingdom)1 |
296,280 | 1,435,312 | ||||||||
Komeri Co. Ltd. (Japan)1 |
20,000 | 449,591 | ||||||||
Sa Sa International Holdings Ltd. (Hong Kong)1 |
678,000 | 468,743 | ||||||||
|
|
|||||||||
6,965,983 | ||||||||||
|
|
|||||||||
Textiles, Apparel & Luxury Goods - 1.3% |
||||||||||
Adidas AG (Germany)1 |
4,250 | 309,680 | ||||||||
Daphne International Holdings Ltd. (China)1 |
530,000 | 266,798 | ||||||||
Gildan Activewear, Inc. (Canada) |
19,980 | 1,191,407 | ||||||||
Kering (France)1 |
1,965 | 379,215 | ||||||||
lululemon athletica, Inc.* |
318,056 | 13,247,032 | ||||||||
|
|
|||||||||
15,394,132 | ||||||||||
|
|
|||||||||
Total Consumer Discretionary |
252,354,771 | |||||||||
|
|
|||||||||
Consumer Staples - 12.5% |
||||||||||
Beverages - 5.1% |
||||||||||
AMBEV S.A. - ADR (Brazil)* |
2,562,170 | 17,115,296 | ||||||||
Anheuser-Busch InBev N.V. (Belgium)1 |
155,670 | 17,262,911 | ||||||||
Carlsberg A/S - Class B (Denmark)1 |
5,890 | 519,490 | ||||||||
Cia Cervecerias Unidas S.A. - ADR (Chile) |
17,290 | 368,450 | ||||||||
The Coca-Cola Co. |
269,090 | 11,269,489 | ||||||||
Diageo plc (United Kingdom)1 |
417,350 | 12,308,595 | ||||||||
Monster Beverage Corp.* |
9,980 | 1,006,782 | ||||||||
Remy Cointreau S.A. (France)1 |
1,410 | 100,346 | ||||||||
SABMiller plc (United Kingdom)1 |
7,970 | 450,805 | ||||||||
Treasury Wine Estates Ltd. (Australia)1 |
133,438 | 544,824 | ||||||||
Tsingtao Brewery Co. Ltd. - Class H (China)1 |
70,000 | 517,453 | ||||||||
|
|
|||||||||
61,464,441 | ||||||||||
|
|
|||||||||
Food & Staples Retailing - 0.7% |
||||||||||
Carrefour S.A. (France)1 |
23,158 | 678,768 | ||||||||
Casino Guichard-Perrachon S.A. (France)1 |
2,060 | 211,219 | ||||||||
Dairy Farm International Holdings Ltd. (Hong Kong)1 |
35,100 | 336,960 | ||||||||
Raia Drogasil S.A. (Brazil) |
14,500 | 131,605 | ||||||||
Tesco plc (United Kingdom)1 |
2,144,780 | 5,953,861 | ||||||||
Wal-Mart de Mexico S.A.B. de C.V. - Class V (Mexico) |
143,500 | 332,795 | ||||||||
|
|
|||||||||
7,645,208 | ||||||||||
|
|
|||||||||
Food Products - 3.8% |
||||||||||
Biostime International Holdings Ltd. (China)1 |
86,250 | 195,296 | ||||||||
Charoen Pokphand Foods PCL (Thailand)1 |
919,490 | 882,575 | ||||||||
Danone S.A. (France)1 |
115,613 | 7,900,122 | ||||||||
Dean Foods Co. |
77,860 | 1,145,321 | ||||||||
Grupo Bimbo S.A.B. de C.V. - Class A (Mexico) |
128,690 | 378,437 | ||||||||
Ingredion, Inc. |
133,030 | 10,276,567 | ||||||||
Keurig Green Mountain, Inc. |
10,830 | 1,643,453 | ||||||||
M Dias Branco S.A. (Brazil) |
4,800 | 186,661 | ||||||||
Nestle S.A. (Switzerland)1 |
160,357 | 11,759,643 | ||||||||
Tiger Brands Ltd. (South Africa)1 |
9,470 | 285,036 | ||||||||
Unilever plc - ADR (United Kingdom) |
279,650 | 11,250,319 | ||||||||
|
|
|||||||||
45,903,430 | ||||||||||
|
|
|||||||||
Household Products - 1.0% |
||||||||||
Energizer Holdings, Inc. |
89,800 | 11,013,970 | ||||||||
Reckitt Benckiser Group plc (United Kingdom)1 |
4,810 | 405,113 | ||||||||
|
|
|||||||||
11,419,083 | ||||||||||
|
|
|||||||||
Personal Products - 0.9% |
||||||||||
Beiersdorf AG (Germany)1 |
134,290 | 10,888,065 | ||||||||
Natura Cosmeticos S.A. (Brazil) |
19,030 | 276,476 | ||||||||
|
|
|||||||||
11,164,541 | ||||||||||
|
|
|||||||||
Tobacco - 1.0% |
||||||||||
Gudang Garam Tbk PT (Indonesia)1 |
80,390 | 384,703 | ||||||||
Imperial Tobacco Group plc (United Kingdom)1 |
250,930 | 10,900,815 | ||||||||
Swedish Match AB (Sweden)1 |
18,120 | 589,209 | ||||||||
|
|
|||||||||
11,874,727 | ||||||||||
|
|
|||||||||
Total Consumer Staples |
149,471,430 | |||||||||
|
|
|||||||||
Energy - 11.0% |
||||||||||
Energy Equipment & Services - 5.5% |
||||||||||
Baker Hughes, Inc. |
296,860 | 15,721,705 | ||||||||
Cameron International Corp.* |
356,165 | 21,209,626 | ||||||||
CGG S.A. (France)*1 |
9,572 | 55,302 | ||||||||
Core Laboratories N.V. - ADR |
1,340 | 186,970 | ||||||||
Oceaneering International, Inc. |
1,880 | 132,108 | ||||||||
Petroleum Geo-Services ASA (Norway)1 |
18,560 | 92,184 | ||||||||
Saipem S.p.A. (Italy)*1 |
15,450 | 241,869 | ||||||||
Schlumberger Ltd. |
173,700 | 17,137,242 | ||||||||
Spectrum ASA (Norway)1 |
42,030 | 197,775 | ||||||||
SPT Energy Group, Inc. (China)1 |
324,000 | 102,075 | ||||||||
TGS Nopec Geophysical Co. ASA (Norway)1 |
23,780 | 554,735 |
The accompanying notes are an integral part of the financial statements.
101
Investment Portfolio - October 31, 2014
PRO-BLEND® MAXIMUM TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Energy (continued) |
||||||||||
Energy Equipment & Services (continued) |
||||||||||
Trican Well Service Ltd. (Canada) |
12,190 | $ | 109,240 | |||||||
Weatherford International plc - ADR* |
656,920 | 10,786,626 | ||||||||
|
|
|||||||||
66,527,457 | ||||||||||
|
|
|||||||||
Oil, Gas & Consumable Fuels - 5.5% |
||||||||||
Apache Corp. |
109,848 | 8,480,266 | ||||||||
Cameco Corp. (Canada) |
104,555 | 1,817,166 | ||||||||
Cloud Peak Energy, Inc.* |
102,720 | 1,229,558 | ||||||||
Cosan S.A. Industria e Comercio (Brazil) |
7,920 | 110,558 | ||||||||
Encana Corp. (Canada) |
283,250 | 5,276,947 | ||||||||
EOG Resources, Inc. |
113,239 | 10,763,367 | ||||||||
Hess Corp. |
199,280 | 16,900,937 | ||||||||
Koninklijke Vopak N.V. (Netherlands)1 |
7,208 | 361,476 | ||||||||
Pacific Rubiales Energy Corp. (Colombia) |
20,850 | 314,494 | ||||||||
Peabody Energy Corp. |
1,222,850 | 12,754,325 | ||||||||
Petroleo Brasileiro S.A. - ADR (Brazil) |
38,190 | 467,064 | ||||||||
Range Resources Corp. |
82,650 | 5,653,260 | ||||||||
Royal Dutch Shell plc - Class B (Netherlands)1 |
17,214 | 635,976 | ||||||||
Talisman Energy, Inc. (Canada) |
114,602 | 731,102 | ||||||||
Whitehaven Coal Ltd. (Australia)*1 |
77,210 | 103,548 | ||||||||
|
|
|||||||||
65,600,044 | ||||||||||
|
|
|||||||||
Total Energy |
132,127,501 | |||||||||
|
|
|||||||||
Financials - 4.7% |
||||||||||
Banks - 0.9% |
||||||||||
Hong Leong Financial Group Berhad (Malaysia)1 |
105,620 | 581,168 | ||||||||
HSBC Holdings plc (United Kingdom)1 |
29,610 | 301,883 | ||||||||
ICICI Bank Ltd. - ADR (India) |
6,670 | 375,921 | ||||||||
Popular, Inc.* |
260,528 | 8,305,633 | ||||||||
Sumitomo Mitsui Trust Holdings, Inc. (Japan)1 |
92,000 | 375,611 | ||||||||
Synovus Financial Corp. |
34,149 | 866,019 | ||||||||
|
|
|||||||||
10,806,235 | ||||||||||
|
|
|||||||||
Capital Markets - 0.2% |
||||||||||
CETIP S.A. - Mercados Organizados (Brazil) |
12,110 | 153,458 | ||||||||
Daiwa Securities Group, Inc. (Japan)1 |
60,000 | 474,178 | ||||||||
Financial Engines, Inc. |
36,820 | 1,468,013 | ||||||||
|
|
|||||||||
2,095,649 | ||||||||||
|
|
|||||||||
Consumer Finance - 0.1% |
||||||||||
SLM Corp. |
135,510 | 1,294,121 | ||||||||
|
|
|||||||||
Diversified Financial Services - 0.1% |
||||||||||
Berkshire Hathaway, Inc. - Class B* |
980 | 137,357 | ||||||||
JSE Ltd. (South Africa)1 |
35,430 | 344,993 | ||||||||
MSCI, Inc. |
25,637 | 1,196,222 | ||||||||
|
|
|||||||||
1,678,572 | ||||||||||
|
|
|||||||||
Insurance - 0.2% |
||||||||||
Admiral Group plc (United Kingdom)1 |
20,300 | 434,360 | ||||||||
Brasil Insurance Participacoes e Administracao S.A. (Brazil) |
56,630 | 170,262 | ||||||||
Mapfre S.A. (Spain)1 |
196,550 | 673,980 | ||||||||
Zurich Insurance Group AG (Switzerland)1 |
1,410 | 426,706 | ||||||||
|
|
|||||||||
1,705,308 | ||||||||||
|
|
|||||||||
Real Estate Investment Trusts (REITS) - 2.4% |
||||||||||
Agree Realty Corp. |
7,700 | 235,697 | ||||||||
Alexandria Real Estate Equities, Inc. |
2,880 | 239,040 | ||||||||
Alstria Office REIT AG (Germany)1 |
74,270 | 922,064 | ||||||||
American Campus Communities, Inc. |
3,240 | 127,235 | ||||||||
Apartment Investment & Management Co. - Class A |
6,470 | 231,561 | ||||||||
Associated Estates Realty Corp. |
11,450 | 223,618 | ||||||||
AvalonBay Communities, Inc. |
1,300 | 202,592 | ||||||||
BioMed Realty Trust, Inc. |
10,420 | 226,322 | ||||||||
Boston Properties, Inc. |
1,230 | 155,903 | ||||||||
Camden Property Trust |
2,580 | 197,809 | ||||||||
CatchMark Timber Trust, Inc. - Class A |
11,880 | 138,996 | ||||||||
CBL & Associates Properties, Inc. |
61,921 | 1,184,549 | ||||||||
CBS Outdoor Americas, Inc. |
42,490 | 1,292,971 | ||||||||
Chesapeake Lodging Trust |
8,110 | 267,954 | ||||||||
CoreSite Realty Corp. |
5,760 | 213,235 | ||||||||
Corporate Office Properties Trust |
4,520 | 123,577 | ||||||||
Crown Castle International Corp. |
1,620 | 126,554 | ||||||||
CubeSmart |
6,970 | 146,719 | ||||||||
DDR Corp. |
11,000 | 199,540 | ||||||||
Digital Realty Trust, Inc. |
4,280 | 295,277 | ||||||||
Duke Realty Corp. |
10,720 | 203,251 | ||||||||
DuPont Fabros Technology, Inc. |
6,820 | 211,215 | ||||||||
Education Realty Trust, Inc. |
17,660 | 198,852 | ||||||||
Equity Lifestyle Properties, Inc. |
2,950 | 144,845 | ||||||||
Equity One, Inc. |
5,630 | 135,120 | ||||||||
Equity Residential |
3,120 | 217,027 | ||||||||
Essex Property Trust, Inc. |
1,100 | 221,936 | ||||||||
Excel Trust, Inc. |
10,030 | 130,390 | ||||||||
Extra Space Storage, Inc. |
2,160 | 125,626 | ||||||||
Fibra Shop Portafolios Inmobiliarios SAPI de CV (Mexico) |
70,020 | 95,102 | ||||||||
General Growth Properties, Inc. |
8,120 | 210,389 | ||||||||
HCP, Inc. |
7,450 | 327,577 | ||||||||
Health Care REIT, Inc. |
3,840 | 273,062 | ||||||||
Healthcare Trust of America, Inc. |
11,510 | 147,788 |
The accompanying notes are an integral part of the financial statements.
102
Investment Portfolio - October 31, 2014
PRO-BLEND® MAXIMUM TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Financials (continued) |
||||||||||
Real Estate Investment Trusts (REITS) (continued) |
||||||||||
Home Properties, Inc. |
2,140 | $ | 137,623 | |||||||
Host Hotels & Resorts, Inc. |
11,350 | 264,569 | ||||||||
Inland Real Estate Corp. |
12,860 | 136,445 | ||||||||
Kimco Realty Corp. |
14,220 | 354,789 | ||||||||
Kite Realty Group Trust |
10,167 | 263,224 | ||||||||
Mack-Cali Realty Corp. |
9,160 | 171,567 | ||||||||
Mid-America Apartment Communities, Inc. |
3,100 | 219,046 | ||||||||
Pebblebrook Hotel Trust |
6,900 | 293,940 | ||||||||
Pennsylvania Real Estate Investment Trust |
6,450 | 138,223 | ||||||||
Physicians Realty Trust |
15,000 | 230,100 | ||||||||
Plum Creek Timber Co., Inc. |
108,104 | 4,433,345 | ||||||||
Potlatch Corp. |
2,780 | 122,292 | ||||||||
Public Storage |
1,420 | 261,763 | ||||||||
Rayonier, Inc. |
3,770 | 126,182 | ||||||||
Rouse Properties, Inc. |
14,220 | 258,946 | ||||||||
Saul Centers, Inc. |
1,310 | 71,985 | ||||||||
Scentre Group (Australia)*1 |
30,590 | 97,581 | ||||||||
Simon Property Group, Inc. |
4,200 | 752,682 | ||||||||
Sovran Self Storage, Inc. |
3,310 | 281,648 | ||||||||
UDR, Inc. |
7,040 | 212,819 | ||||||||
Ventas, Inc. |
3,690 | 252,802 | ||||||||
Washington Prime Group, Inc. |
8,665 | 152,764 | ||||||||
Washington Real Estate Investment Trust |
4,770 | 134,800 | ||||||||
Westfield Corp. (Australia)1 |
51,450 | 361,540 | ||||||||
Weyerhaeuser Co. |
285,380 | 9,662,967 | ||||||||
|
|
|||||||||
28,787,035 | ||||||||||
|
|
|||||||||
Real Estate Management & Development - 0.8% |
||||||||||
BR Malls Participacoes S.A. (Brazil) |
17,330 | 139,177 | ||||||||
Forest City Enterprises, Inc. - Class A* |
9,690 | 202,424 | ||||||||
Forestar Group, Inc.* |
3,600 | 62,820 | ||||||||
General Shopping Brasil S.A. (Brazil)* |
94,380 | 257,099 | ||||||||
Realogy Holdings Corp.* |
227,944 | 9,347,983 | ||||||||
|
|
|||||||||
10,009,503 | ||||||||||
|
|
|||||||||
Total Financials |
56,376,423 | |||||||||
|
|
|||||||||
Health Care - 11.6% |
||||||||||
Biotechnology - 0.3% |
||||||||||
BioMarin Pharmaceutical, Inc.* |
19,780 | 1,631,850 | ||||||||
Green Cross Corp. (South Korea)1 |
4,349 | 556,583 | ||||||||
Seattle Genetics, Inc.* |
34,100 | 1,250,447 | ||||||||
|
|
|||||||||
3,438,880 | ||||||||||
|
|
|||||||||
Health Care Equipment & Supplies - 1.3% |
||||||||||
BioMerieux (France)1 |
900 | 94,941 | ||||||||
Carl Zeiss Meditec AG (Germany)1 |
16,500 | 443,966 | ||||||||
HeartWare International, Inc.* |
17,470 | 1,347,286 | ||||||||
Intuitive Surgical, Inc.* |
16,340 | 8,101,372 | ||||||||
Neogen Corp.* |
2,950 | 129,505 | ||||||||
Shandong Weigao Group Medical Polymer Co. Ltd. - Class H (China)1 |
873,800 | 883,618 | ||||||||
Thoratec Corp.* |
50,990 | 1,385,908 | ||||||||
Volcano Corp.* |
366,190 | 3,705,843 | ||||||||
|
|
|||||||||
16,092,439 | ||||||||||
|
|
|||||||||
Health Care Providers & Services - 4.5% |
||||||||||
Catamaran Corp.* |
333,940 | 15,918,920 | ||||||||
DaVita HealthCare Partners, Inc.* |
208,780 | 16,299,455 | ||||||||
Express Scripts Holding Co.* |
168,670 | 12,957,229 | ||||||||
Fresenius Medical Care AG & Co. KGaA (Germany)1 |
79,530 | 5,837,315 | ||||||||
Fresenius Medical Care AG & Co. KGaA - ADR (Germany) |
9,300 | 340,473 | ||||||||
KPJ Healthcare Berhad (Malaysia)1 |
120,600 | 143,371 | ||||||||
Life Healthcare Group Holdings Ltd. (South Africa)1 |
153,950 | 582,178 | ||||||||
Odontoprev S.A. (Brazil) |
179,170 | 647,149 | ||||||||
Quest Diagnostics, Inc. |
13,230 | 839,576 | ||||||||
Universal Health Services, Inc. - Class B |
7,470 | 774,714 | ||||||||
|
|
|||||||||
54,340,380 | ||||||||||
|
|
|||||||||
Health Care Technology - 2.5% |
||||||||||
Cerner Corp.* |
462,030 | 29,264,980 | ||||||||
|
|
|||||||||
Life Sciences Tools & Services - 1.0% |
||||||||||
Gerresheimer AG (Germany)1 |
7,180 | 399,509 | ||||||||
QIAGEN N.V.*1 |
9,350 | 219,738 | ||||||||
QIAGEN N.V. - ADR* |
478,280 | 11,220,449 | ||||||||
|
|
|||||||||
11,839,696 | ||||||||||
|
|
|||||||||
Pharmaceuticals - 2.0% |
||||||||||
AstraZeneca plc (United Kingdom)1 |
2,175 | 158,880 | ||||||||
AstraZeneca plc - ADR (United Kingdom) |
12,710 | 927,067 | ||||||||
GlaxoSmithKline plc (United Kingdom)1 |
10,705 | 242,081 | ||||||||
Johnson & Johnson |
79,330 | 8,550,187 | ||||||||
Novartis AG - ADR (Switzerland) |
2,820 | 261,386 | ||||||||
Novo Nordisk A/S - Class B (Denmark)1 |
6,870 | 310,543 | ||||||||
Otsuka Holdings Co. Ltd. (Japan)1 |
4,800 | 168,375 | ||||||||
Roche Holding AG (Switzerland)1 |
690 | 203,620 | ||||||||
Sanofi (France)1 |
3,877 | 351,799 | ||||||||
Sanofi - ADR (France) |
266,100 | 12,304,464 |
The accompanying notes are an integral part of the financial statements.
103
Investment Portfolio - October 31, 2014
PRO-BLEND® MAXIMUM TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
|
|||||||||
Health Care (continued) |
||||||||||
Pharmaceuticals (continued) |
||||||||||
Teva Pharmaceutical Industries Ltd. - ADR (Israel) |
6,650 | $ | 375,525 | |||||||
|
|
|||||||||
23,853,927 | ||||||||||
|
|
|||||||||
Total Health Care |
138,830,302 | |||||||||
|
|
|||||||||
Industrials - 7.2% |
||||||||||
Airlines - 0.5% |
||||||||||
Gol Linhas Aereas Inteligentes S.A. - ADR (Brazil) |
276,729 | 1,430,689 | ||||||||
Latam Airlines Group S.A. - ADR (Chile)* |
180,922 | 2,207,248 | ||||||||
Republic Airways Holdings, Inc.* |
138,520 | 1,734,270 | ||||||||
Ryanair Holdings plc - ADR (Ireland)* |
5,120 | 284,365 | ||||||||
|
|
|||||||||
5,656,572 | ||||||||||
|
|
|||||||||
Building Products - 0.7% |
||||||||||
Owens Corning |
250,830 | 8,041,610 | ||||||||
|
|
|||||||||
Commercial Services & Supplies - 0.1% |
||||||||||
Aggreko plc (United Kingdom)1 |
22,852 | 557,539 | ||||||||
MiX Telematics Ltd. - ADR (South Africa)* |
15,960 | 142,204 | ||||||||
Rollins, Inc. |
4,270 | 136,085 | ||||||||
Tomra Systems ASA (Norway)1 |
29,600 | 221,618 | ||||||||
|
|
|||||||||
1,057,446 | ||||||||||
|
|
|||||||||
Electrical Equipment - 0.1% |
||||||||||
Alstom S.A. (France)*1 |
14,500 | 506,097 | ||||||||
Nexans S.A. (France)*1 |
5,316 | 161,981 | ||||||||
Polypore International, Inc.* |
2,970 | 130,442 | ||||||||
Schneider Electric SE (France)1 |
8,020 | 631,864 | ||||||||
|
|
|||||||||
1,430,384 | ||||||||||
|
|
|||||||||
Industrial Conglomerates - 1.8% |
||||||||||
General Electric Co. |
815,460 | 21,047,023 | ||||||||
Siemens AG (Germany)1 |
10,500 | 1,184,329 | ||||||||
|
|
|||||||||
22,231,352 | ||||||||||
|
|
|||||||||
Machinery - 1.9% |
||||||||||
AGCO Corp. |
4,630 | 205,155 | ||||||||
ANDRITZ AG (Austria)1 |
8,610 | 416,071 | ||||||||
Chart Industries, Inc.* |
15,900 | 740,145 | ||||||||
Deere & Co. |
1,130 | 96,660 | ||||||||
FANUC Corp. (Japan)1 |
4,541 | 800,287 | ||||||||
Joy Global, Inc. |
251,302 | 13,226,024 | ||||||||
Kennametal, Inc. |
2,270 | 87,645 | ||||||||
Komatsu Ltd. (Japan)1 |
9,200 | 217,206 | ||||||||
KUKA AG (Germany)1 |
2,140 | 134,871 | ||||||||
Pall Corp. |
4,110 | 375,736 | ||||||||
Pentair plc (United Kingdom) |
4,990 | 334,579 | ||||||||
Sany Heavy Equipment International Holdings Co. Ltd. (China)*1 |
619,000 | 137,199 | ||||||||
SKF AB - Class B (Sweden)1 |
16,800 | 336,965 | ||||||||
Terex Corp. |
27,340 | 786,572 | ||||||||
Xylem, Inc. |
150,574 | 5,474,871 | ||||||||
|
|
|||||||||
23,369,986 | ||||||||||
|
|
|||||||||
Professional Services - 0.1% |
||||||||||
Experian plc (United Kingdom)1 |
22,420 | 337,109 | ||||||||
SGS S.A. (Switzerland)1 |
206 | 452,896 | ||||||||
|
|
|||||||||
790,005 | ||||||||||
|
|
|||||||||
Road & Rail - 0.3% |
||||||||||
Heartland Express, Inc. |
34,070 | 856,520 | ||||||||
Hertz Global Holdings, Inc.* |
53,460 | 1,171,843 | ||||||||
Kansas City Southern |
1,530 | 187,869 | ||||||||
Swift Transportation Co.* |
38,480 | 950,456 | ||||||||
Union Pacific Corp. |
1,830 | 213,103 | ||||||||
|
|
|||||||||
3,379,791 | ||||||||||
|
|
|||||||||
Trading Companies & Distributors - 1.6% |
||||||||||
Brenntag AG (Germany)1 |
11,082 | 537,716 | ||||||||
Fastenal Co. |
411,742 | 18,133,118 | ||||||||
|
|
|||||||||
18,670,834 | ||||||||||
|
|
|||||||||
Transportation Infrastructure - 0.1% |
||||||||||
Wesco Aircraft Holdings, Inc.* |
64,420 | 1,143,455 | ||||||||
|
|
|||||||||
Total Industrials |
85,771,435 | |||||||||
|
|
|||||||||
Information Technology - 15.1% |
||||||||||
Communications Equipment - 2.1% |
||||||||||
Alcatel-Lucent - ADR (France) |
111,650 | 334,950 | ||||||||
ARRIS Group, Inc.* |
53,190 | 1,596,764 | ||||||||
Ixia* |
131,560 | 1,266,923 | ||||||||
Juniper Networks, Inc. |
965,080 | 20,334,236 | ||||||||
Palo Alto Networks, Inc.* |
620 | 65,534 | ||||||||
Polycom, Inc.* |
63,360 | 828,749 | ||||||||
|
|
|||||||||
24,427,156 | ||||||||||
|
|
|||||||||
Electronic Equipment, Instruments & Components - 0.9% |
||||||||||
Cognex Corp.* |
3,180 | 125,801 | ||||||||
FLIR Systems, Inc. |
290,785 | 9,750,021 | ||||||||
Hitachi Ltd. (Japan)1 |
97,000 | 762,175 | ||||||||
Keyence Corp. (Japan)1 |
1,146 | 555,332 | ||||||||
|
|
|||||||||
11,193,329 | ||||||||||
|
|
|||||||||
Internet Software & Services - 3.2% |
||||||||||
eBay, Inc.* |
360,720 | 18,937,800 | ||||||||
Facebook, Inc. - Class A* |
50,850 | 3,813,241 |
The accompanying notes are an integral part of the financial statements.
104
Investment Portfolio - October 31, 2014
PRO-BLEND® MAXIMUM TERM SERIES | SHARES | VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Information Technology (continued) |
||||||||||
Internet Software & Services (continued) |
||||||||||
Google, Inc. - Class A* |
10,730 | $ | 6,093,245 | |||||||
Google, Inc. - Class C* |
11,100 | 6,205,788 | ||||||||
NetEase, Inc. - ADR (China) |
4,620 | 437,606 | ||||||||
Q2 Holdings, Inc.* |
45,840 | 691,726 | ||||||||
Qihoo 360 Technology Co. Ltd. - ADR (China)* |
18,556 | 1,354,217 | ||||||||
Tencent Holdings Ltd. (China)1 |
29,500 | 474,132 | ||||||||
Youku Tudou, Inc. - ADR (China)* |
7,730 | 151,508 | ||||||||
Zillow, Inc. - Class A* |
5,530 | 601,277 | ||||||||
|
|
|||||||||
38,760,540 | ||||||||||
|
|
|||||||||
IT Services - 4.7% |
||||||||||
Amdocs Ltd. - ADR |
64,445 | 3,063,715 | ||||||||
EVERTEC, Inc. |
679,910 | 15,433,957 | ||||||||
InterXion Holding N.V. - ADR (Netherlands)* |
2,390 | 65,343 | ||||||||
MasterCard, Inc. - Class A |
144,320 | 12,086,800 | ||||||||
VeriFone Systems, Inc.* |
355,105 | 13,231,212 | ||||||||
Visa, Inc. - Class A |
51,000 | 12,312,930 | ||||||||
|
|
|||||||||
56,193,957 | ||||||||||
|
|
|||||||||
Semiconductors & Semiconductor Equipment - 0.0%## |
||||||||||
GCL-Poly Energy Holdings Ltd. (Hong Kong)*1 |
388,000 | 130,765 | ||||||||
REC Silicon ASA (Norway)*1 |
228,010 | 91,157 | ||||||||
|
|
|||||||||
221,922 | ||||||||||
|
|
|||||||||
Software - 1.8% |
||||||||||
ANSYS, Inc.* |
108,970 | 8,560,683 | ||||||||
Aspen Technology, Inc.* |
2,210 | 81,615 | ||||||||
AVEVA Group plc (United Kingdom)1 |
56,646 | 1,391,865 | ||||||||
Check Point Software Technologies Ltd. (Israel)* |
950 | 70,537 | ||||||||
Electronic Arts, Inc.* |
228,340 | 9,355,090 | ||||||||
Fortinet, Inc.* |
2,469 | 64,317 | ||||||||
Imperva, Inc.* |
1,940 | 79,482 | ||||||||
Nuance Communications, Inc.* |
7,720 | 119,120 | ||||||||
Proofpoint, Inc.* |
1,500 | 66,060 | ||||||||
SAP SE (Germany)1 |
13,420 | 914,376 | ||||||||
Temenos Group AG (Switzerland)1 |
6,450 | 225,191 | ||||||||
Totvs S.A. (Brazil) |
41,329 | 602,447 | ||||||||
|
|
|||||||||
21,530,783 | ||||||||||
|
|
|||||||||
Technology Hardware, Storage & Peripherals - 2.4% |
||||||||||
Canon, Inc. (Japan)1 |
10,000 | 306,802 | ||||||||
EMC Corp. |
941,140 | 27,038,952 | ||||||||
Samsung Electronics Co. Ltd. (South Korea)1 |
1,260 | 1,469,340 | ||||||||
Stratasys Ltd.* |
1,100 | 132,396 | ||||||||
|
|
|||||||||
28,947,490 | ||||||||||
|
|
|||||||||
Total Information Technology |
181,275,177 | |||||||||
|
|
|||||||||
Materials - 6.6% |
||||||||||
Chemicals - 5.2% |
||||||||||
Akzo Nobel N.V. (Netherlands)1 |
1,630 | 108,699 | ||||||||
BASF SE (Germany)1 |
7,250 | 640,611 | ||||||||
FMC Corp. |
13,320 | 763,902 | ||||||||
Linde AG (Germany)1 |
5,330 | 983,678 | ||||||||
Monsanto Co. |
218,920 | 25,184,557 | ||||||||
The Mosaic Co. |
386,976 | 17,146,907 | ||||||||
Novozymes A/S - Class B (Denmark)1 |
2,650 | 122,713 | ||||||||
Potash Corp. of Saskatchewan, Inc. (Canada) |
251,990 | 8,610,498 | ||||||||
Sociedad Quimica y Minera de Chile S.A. - ADR (Chile) |
21,185 | 502,720 | ||||||||
Syngenta AG (Switzerland)1 |
1,362 | 421,209 | ||||||||
Tronox Ltd. - Class A |
280,580 | 6,784,424 | ||||||||
Umicore S.A. (Belgium)1 |
9,350 | 366,973 | ||||||||
Wacker Chemie AG (Germany)1 |
1,140 | 138,144 | ||||||||
Yingde Gases Group Co. Ltd. (China)1 |
169,000 | 131,962 | ||||||||
|
|
|||||||||
61,906,997 | ||||||||||
|
|
|||||||||
Construction Materials - 0.1% |
||||||||||
CRH plc (Ireland)1 |
13,570 | 301,527 | ||||||||
Holcim Ltd. (Switzerland)1 |
2,810 | 199,439 | ||||||||
|
|
|||||||||
500,966 | ||||||||||
|
|
|||||||||
Metals & Mining - 1.3% |
||||||||||
Alcoa, Inc |
781,060 | 13,090,566 | ||||||||
Alumina Ltd. (Australia)*1 |
221,510 | 320,148 | ||||||||
Iluka Resources Ltd. (Australia)1 |
31,280 | 200,809 | ||||||||
Impala Platinum Holdings Ltd. (South Africa)*1 |
28,240 | 205,973 | ||||||||
Jastrzebska Spolka Weglowa S.A. (Poland)*1 |
20,710 | 177,974 | ||||||||
Norsk Hydro ASA (Norway)1 |
75,723 | 423,967 | ||||||||
Stillwater Mining Co.* |
76,150 | 999,849 | ||||||||
Teck Resources Ltd. - Class B (Canada) |
25,174 | 397,246 | ||||||||
ThyssenKrupp AG (Germany)*1 |
6,790 | 163,649 | ||||||||
|
|
|||||||||
15,980,181 | ||||||||||
|
|
|||||||||
Total Materials |
78,388,144 | |||||||||
|
|
|||||||||
Telecommunication Services - 0.2% |
||||||||||
Diversified Telecommunication Services - 0.1% |
||||||||||
Telefonica S.A. - ADR (Spain) |
61,730 | 924,715 |
The accompanying notes are an integral part of the financial statements.
105
Investment Portfolio - October 31, 2014
PRO-BLEND® MAXIMUM TERM SERIES | SHARES/ PRINCIPAL AMOUNT3 |
VALUE (NOTE 2) |
||||||||
COMMON STOCKS (continued) |
||||||||||
Telecommunication Services (continued) |
||||||||||
Diversified Telecommunication Services (continued) |
||||||||||
Telenor ASA - ADR (Norway)2 |
7,150 | $ | 481,481 | |||||||
|
|
|||||||||
1,406,196 | ||||||||||
|
|
|||||||||
Wireless Telecommunication Services - 0.1% |
||||||||||
America Movil S.A.B. de C.V. - Class L - ADR (Mexico) |
29,240 | 713,748 | ||||||||
China Mobile Ltd. (China)1 |
40,000 | 497,701 | ||||||||
|
|
|||||||||
1,211,449 | ||||||||||
|
|
|||||||||
Total Telecommunication Services |
2,617,645 | |||||||||
|
|
|||||||||
TOTAL COMMON STOCKS |
||||||||||
(Identified Cost $1,004,996,441) |
1,077,212,828 | |||||||||
|
|
|||||||||
CORPORATE BONDS - 4.1% |
||||||||||
Non-Convertible Corporate Bonds - 4.1% |
||||||||||
Consumer Discretionary - 0.4% |
||||||||||
Auto Components - 0.2% |
||||||||||
Icahn Enterprises LP - Icahn Enterprises Finance Corp., 3.50%, 3/15/2017 |
1,610,000 | 1,601,950 | ||||||||
Icahn Enterprises LP - Icahn Enterprises Finance Corp., 5.875%, 2/1/2022 |
310,000 | 318,525 | ||||||||
|
|
|||||||||
1,920,475 | ||||||||||
|
|
|||||||||
Diversified Consumer Services - 0.1% |
||||||||||
Block Financial LLC, 5.50%, 11/1/2022 |
750,000 | 809,097 | ||||||||
|
|
|||||||||
Household Durables - 0.0%## |
||||||||||
Weekley Homes LLC - Weekley Finance Corp., 6.00%, 2/1/2023 |
425,000 | 416,500 | ||||||||
|
|
|||||||||
Media - 0.1% |
||||||||||
Cogeco Cable, Inc. (Canada)4, 4.875%, 5/1/2020 |
325,000 | 325,000 | ||||||||
Columbus International, Inc. (Barbados)4, 7.375%, 3/30/2021 |
200,000 | 212,000 | ||||||||
Gannett Co., Inc.4, 4.875%, 9/15/2021 |
320,000 | 322,400 | ||||||||
|
|
|||||||||
859,400 | ||||||||||
|
|
|||||||||
Multiline Retail - 0.0%## |
||||||||||
Macys Retail Holdings, Inc., 2.875%, 2/15/2023 |
400,000 | 383,551 | ||||||||
|
|
|||||||||
Specialty Retail - 0.0%## |
||||||||||
The TJX Companies, Inc., 2.75%, 6/15/2021 |
300,000 | 299,506 | ||||||||
|
|
|||||||||
Total Consumer Discretionary |
4,688,529 | |||||||||
|
|
PRINCIPAL AMOUNT 3 |
VALUE (NOTE 2) |
|||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Consumer Staples - 0.2% |
||||||||||
Beverages - 0.0%## |
||||||||||
Anheuser-Busch InBev Worldwide, Inc. (Belgium), 7.75%, 1/15/2019 |
375,000 | 454,771 | ||||||||
|
|
|||||||||
Food & Staples Retailing - 0.1% |
||||||||||
C&S Group Enterprises LLC4, 5.375%, 7/15/2022 |
305,000 | 305,000 | ||||||||
KeHE Distributors LLC - KeHE Finance Corp.4, 7.625%, 8/15/2021 |
235,000 | 249,687 | ||||||||
|
|
|||||||||
554,687 | ||||||||||
|
|
|||||||||
Food Products - 0.1% |
||||||||||
Pinnacle Operating Corp.4, 9.00%, 11/15/2020 |
425,000 | 457,937 | ||||||||
|
|
|||||||||
Household Products - 0.0%## |
||||||||||
Harbinger Group, Inc., 7.75%, 1/15/2022 |
265,000 | 268,975 | ||||||||
|
|
|||||||||
Tobacco - 0.0%## |
||||||||||
Vector Group Ltd., 7.75%, 2/15/2021 |
230,000 | 249,263 | ||||||||
|
|
|||||||||
Total Consumer Staples |
1,985,633 | |||||||||
|
|
|||||||||
Energy - 0.4% |
||||||||||
Energy Equipment & Services - 0.1% |
||||||||||
Calfrac Holdings LP (Canada)4, 7.50%, 12/1/2020 |
310,000 | 316,200 | ||||||||
Parker Drilling Co., 6.75%, 7/15/2022 |
325,000 | 295,750 | ||||||||
Seventy Seven Operating LLC, 6.625%, 11/15/2019 |
195,000 | 193,050 | ||||||||
Shelf Drilling Holdings Ltd. (United Arab Emirates)4, 8.625%, 11/1/2018 |
425,000 | 419,687 | ||||||||
US Shale Solutions, Inc.4, 12.50%, 9/1/2017 |
160,000 | 144,000 | ||||||||
|
|
|||||||||
1,368,687 | ||||||||||
|
|
|||||||||
Oil, Gas & Consumable Fuels - 0.3% |
||||||||||
Energy XXI Gulf Coast, Inc., 7.50%, 12/15/2021 |
425,000 | 352,750 | ||||||||
FTS International, Inc.4, 6.25%, 5/1/2022 |
195,000 | 184,275 | ||||||||
Ithaca Energy, Inc. (United Kingdom)4, 8.125%, 7/1/2019 |
200,000 | 172,000 | ||||||||
PBF Holding Co. LLC - PBF Finance Corp., 8.25%, 2/15/2020 |
380,000 | 397,575 | ||||||||
Petrobras Global Finance B.V. (Brazil)5, 1.852%, 5/20/2016 |
1,300,000 | 1,300,000 | ||||||||
Petroleos Mexicanos (Mexico), 8.00%, 5/3/2019 |
350,000 | 425,215 |
The accompanying notes are an integral part of the financial statements.
106
Investment Portfolio - October 31, 2014
PRO-BLEND® MAXIMUM TERM SERIES | PRINCIPAL AMOUNT 3 |
VALUE (NOTE 2) |
||||||||||
CORPORATE BONDS (continued) |
||||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||||
Energy (continued) |
||||||||||||
Oil, Gas & Consumable Fuels (continued) |
||||||||||||
Sabine Pass Liquefaction LLC, 5.625%, 2/1/2021 |
290,000 | $ | 303,775 | |||||||||
|
|
|||||||||||
3,135,590 | ||||||||||||
|
|
|||||||||||
Total Energy |
4,504,277 | |||||||||||
|
|
|||||||||||
Financials - 1.8% |
||||||||||||
Banks - 0.4% |
||||||||||||
Banco Bilbao Vizcaya Argentaria S.A. (Spain)5, 9.00%, 5/29/2049 |
600,000 | 648,480 | ||||||||||
Banco Santander S.A. (Spain)5, 6.375%, 5/29/2049 |
600,000 | 589,650 | ||||||||||
Barclays plc (United Kingdom)5, 6.625%, 6/29/2049 |
500,000 | 478,500 | ||||||||||
BBVA Bancomer S.A. (Mexico)4, 6.75%, 9/30/2022 |
500,000 | 566,250 | ||||||||||
Citigroup, Inc., 8.50%, 5/22/2019 |
299,000 | 375,161 | ||||||||||
Intesa Sanpaolo S.p.A. (Italy), 3.875%, 1/15/2019 |
390,000 | 406,022 | ||||||||||
Intesa Sanpaolo S.p.A. (Italy)4, 5.017%, 6/26/2024 |
500,000 | 488,657 | ||||||||||
Lloyds Bank plc (United Kingdom)4, 6.50%, 9/14/2020 |
335,000 | 387,441 | ||||||||||
Popular, Inc., 7.00%, 7/1/2019 |
415,000 | 418,113 | ||||||||||
|
|
|||||||||||
4,358,274 | ||||||||||||
|
|
|||||||||||
Capital Markets - 0.3% |
||||||||||||
The Goldman Sachs Group, Inc., 6.15%, 4/1/2018 |
430,000 | 485,900 | ||||||||||
The Goldman Sachs Group, Inc.5, 1.836%, 11/29/2023 |
380,000 | 392,248 | ||||||||||
Morgan Stanley, 2.125%, 4/25/2018 |
390,000 | 391,080 | ||||||||||
Morgan Stanley, 5.75%, 1/25/2021 |
345,000 | 396,149 | ||||||||||
UBS AG (Switzerland)5, 7.25%, 2/22/2022 |
600,000 | 648,930 | ||||||||||
UBS AG (Switzerland)5, 4.75%, 5/22/2023 |
730,000 | 738,213 | ||||||||||
|
|
|||||||||||
3,052,520 | ||||||||||||
|
|
|||||||||||
Consumer Finance - 0.3% |
||||||||||||
Ally Financial, Inc., 6.75%, 12/1/2014 |
425,000 | 426,275 | ||||||||||
Capital One Bank USA National Association, 2.15%, 11/21/2018 |
790,000 | 787,304 | ||||||||||
CNG Holdings, Inc.4, 9.375%, 5/15/2020 |
425,000 | 319,813 | ||||||||||
Discover Bank, 4.20%, 8/8/2023 |
800,000 | 838,204 | ||||||||||
Navient Corp., 6.00%, 1/25/2017 |
1,390,000 | 1,466,450 | ||||||||||
Navient Corp., 6.125%, 3/25/2024 |
295,000 | 304,590 | ||||||||||
|
|
|||||||||||
4,142,636 | ||||||||||||
|
|
|||||||||||
Diversified Financial Services - 0.2% |
||||||||||||
ING Bank N.V. (Netherlands)4, 5.80%, 9/25/2023 |
500,000 | 556,461 | ||||||||||
ING Bank N.V. (Netherlands)5, 4.125%, 11/21/2023 |
723,000 | 740,663 | ||||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.4, 7.375%, 4/1/2020 |
425,000 | 422,875 | ||||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.4, 7.50%, 4/15/2021 |
330,000 | 328,350 | ||||||||||
Jefferies Finance LLC - JFIN Co-Issuer Corp.4, 6.875%, 4/15/2022 |
200,000 | 193,500 | ||||||||||
Jefferies Group LLC, 5.125%, 4/13/2018 |
385,000 | 417,265 | ||||||||||
|
|
|||||||||||
2,659,114 | ||||||||||||
|
|
|||||||||||
Insurance - 0.4% |
||||||||||||
Aegon N.V. (Netherlands)5, 2.549%, 7/29/2049 |
500,000 | 446,250 | ||||||||||
American International Group, Inc., 4.875%, 6/1/2022 |
700,000 | 780,773 | ||||||||||
Assured Guaranty US Holdings, Inc., 5.00%, 7/1/2024 |
950,000 | 988,697 | ||||||||||
AXA S.A. (France)5, 2.663%, 8/29/2049 |
350,000 | 316,750 | ||||||||||
Genworth Holdings, Inc., 7.625%, 9/24/2021 |
790,000 | 962,940 | ||||||||||
Genworth Holdings, Inc.5, 6.15%, 11/15/2066 |
450,000 | 384,750 | ||||||||||
The Hartford Financial Services Group, Inc., 5.125%, 4/15/2022 |
350,000 | 391,117 | ||||||||||
|
|
|||||||||||
4,271,277 | ||||||||||||
|
|
|||||||||||
Real Estate Investment Trusts (REITS) - 0.1% |
||||||||||||
American Tower Corp., 3.40%, 2/15/2019 |
500,000 | 511,421 | ||||||||||
Corrections Corp. of America, 4.125%, 4/1/2020 |
285,000 | 280,725 | ||||||||||
DuPont Fabros Technology LP, 5.875%, 9/15/2021 |
425,000 | 442,000 | ||||||||||
Qualitytech LP - QTS Finance Corp.4, 5.875%, 8/1/2022 |
210,000 | 211,050 |
The accompanying notes are an integral part of the financial statements.
107
Investment Portfolio - October 31, 2014
PRO-BLEND® MAXIMUM TERM SERIES | PRINCIPAL AMOUNT 3 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
|
|||||||||
Non-Convertible Corporate Bonds (continued) |
|
|||||||||
Financials (continued) |
||||||||||
Real Estate Investment Trusts (REITS) (continued) |
|
|||||||||
Rialto Holdings LLC - Rialto Corp.4, 7.00%, 12/1/2018 |
275,000 | $ | 281,188 | |||||||
|
|
|||||||||
1,726,384 | ||||||||||
|
|
|||||||||
Real Estate Management & Development - 0.0%## |
|
|||||||||
Forestar USA Real Estate Group, Inc.4, 8.50%, 6/1/2022 |
185,000 | 189,163 | ||||||||
|
|
|||||||||
Thrifts & Mortgage Finance - 0.1% |
|
|||||||||
Ladder Capital Finance Holdings LLLP - Ladder Capital Finance Corp., 7.375%, 10/1/2017 |
425,000 | 449,437 | ||||||||
Ladder Capital Finance Holdings LLLP - Ladder Capital Finance Corp.4, 5.875%, 8/1/2021 |
265,000 | 262,681 | ||||||||
Prospect Holding Co. LLC - Prospect Holding Finance Co.4, 10.25%, 10/1/2018 |
195,000 | 175,500 | ||||||||
Provident Funding Associates LP - PFG Finance Corp.4, 6.75%, 6/15/2021 |
425,000 | 423,937 | ||||||||
|
|
|||||||||
1,311,555 | ||||||||||
|
|
|||||||||
Total Financials |
21,710,923 | |||||||||
|
|
|||||||||
Health Care - 0.1% |
|
|||||||||
Health Care Equipment & Supplies - 0.0%## |
|
|||||||||
Halyard Health, Inc.4, 6.25%, 10/15/2022 |
205,000 | 209,613 | ||||||||
|
|
|||||||||
Health Care Providers & Services - 0.1% |
|
|||||||||
Fresenius US Finance II, Inc. (Germany)4, 9.00%, 7/15/2015 |
1,275,000 | 1,326,000 | ||||||||
|
|
|||||||||
Total Health Care |
1,535,613 | |||||||||
|
|
|||||||||
Industrials - 0.8% |
||||||||||
Aerospace & Defense - 0.0%## |
|
|||||||||
DigitalGlobe, Inc.4, 5.25%, 2/1/2021 |
316,000 | 307,310 | ||||||||
|
|
|||||||||
Airlines - 0.2% |
|
|||||||||
Allegiant Travel Co., 5.50%, 7/15/2019 |
295,000 | 301,637 | ||||||||
Delta Air Lines Pass-Through Trust, Series 2010-1, Class B4, 6.375%, 1/2/2016 |
200,000 | 208,500 | ||||||||
Delta Air Lines Pass-Through Trust, Series 2010-2, Class B, 6.75%, 11/23/2015 |
1,130,000 | 1,178,025 | ||||||||
Gol LuxCo S.A. (Brazil)4, 8.875%, 1/24/2022 |
315,000 | 309,487 | ||||||||
United Continental Holdings, Inc., 6.375%, 6/1/2018 |
425,000 | 444,125 | ||||||||
|
|
|||||||||
2,441,774 | ||||||||||
|
|
|||||||||
Commercial Services & Supplies - 0.0%## |
|
|||||||||
Modular Space Corp.4, 10.25%, 1/31/2019 |
285,000 | 290,700 | ||||||||
|
|
|||||||||
Machinery - 0.2% |
|
|||||||||
CNH Industrial Capital LLC, 3.875%, 11/1/2015 |
1,040,000 | 1,053,000 | ||||||||
CNH Industrial Capital LLC, 6.25%, 11/1/2016 |
425,000 | 449,438 | ||||||||
SPL Logistics Escrow LLC - SPL Logistics Finance Corp.4, 8.875%, 8/1/2020 |
425,000 | 460,063 | ||||||||
Waterjet Holdings, Inc.4, 7.625%, 2/1/2020 |
250,000 | 261,250 | ||||||||
|
|
|||||||||
2,223,751 | ||||||||||
|
|
|||||||||
Trading Companies & Distributors - 0.4% |
|
|||||||||
Air Lease Corp., 3.375%, 1/15/2019 |
280,000 | 283,500 | ||||||||
Aircastle Ltd., 4.625%, 12/15/2018 |
425,000 | 431,375 | ||||||||
Aviation Capital Group Corp.4, 3.875%, 9/27/2016 |
1,465,000 | 1,504,948 | ||||||||
Fly Leasing Ltd. (Ireland), 6.75%, 12/15/2020 |
210,000 | 216,300 | ||||||||
Fly Leasing Ltd. (Ireland), 6.375%, 10/15/2021 |
320,000 | 318,400 | ||||||||
International Lease Finance Corp., 5.75%, 5/15/2016 |
560,000 | 583,800 | ||||||||
International Lease Finance Corp.5, 2.184%, 6/15/2016 |
355,000 | 353,669 | ||||||||
International Lease Finance Corp., 8.75%, 3/15/2017 |
865,000 | 973,125 | ||||||||
|
|
|||||||||
4,665,117 | ||||||||||
|
|
|||||||||
Total Industrials |
9,928,652 | |||||||||
|
|
|||||||||
Information Technology - 0.0%## |
||||||||||
IT Services - 0.0%## |
|
|||||||||
Xerox Corp., 2.80%, 5/15/2020 |
250,000 | 247,047 | ||||||||
|
|
|||||||||
Materials - 0.2% |
||||||||||
Chemicals - 0.0%## |
|
|||||||||
Consolidated Energy Finance S.A. (Luxembourg)4, 6.75%, 10/15/2019 |
300,000 | 306,000 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
108
Investment Portfolio - October 31, 2014
PRO-BLEND® MAXIMUM TERM SERIES | PRINCIPAL AMOUNT 3 |
VALUE (NOTE 2) |
||||||||
CORPORATE BONDS (continued) |
||||||||||
Non-Convertible Corporate Bonds (continued) |
||||||||||
Materials (continued) |
||||||||||
Containers & Packaging - 0.1% |
||||||||||
Ardagh Packaging Finance plc - Ardagh Holdings USA, Inc. (Ireland)4,5, 3.234%, 12/15/2019 |
295,000 | $ | 288,363 | |||||||
PaperWorks Industries, Inc.4, 9.50%, 8/15/2019 |
205,000 | 209,613 | ||||||||
|
|
|||||||||
497,976 | ||||||||||
|
|
|||||||||
Metals & Mining - 0.1% |
||||||||||
ArcelorMittal (Luxembourg), 10.35%, 6/1/2019 |
255,000 | 314,925 | ||||||||
SunCoke Energy Partners LP - SunCoke Energy Partners Finance Corp.4, 7.375%, 2/1/2020 |
275,000 | 287,375 | ||||||||
|
|
|||||||||
602,300 | ||||||||||
|
|
|||||||||
Paper & Forest Products - 0.0%## |
||||||||||
International Paper Co., 7.50%, 8/15/2021 |
300,000 | 375,324 | ||||||||
|
|
|||||||||
Total Materials |
1,781,600 | |||||||||
|
|
|||||||||
Telecommunication Services - 0.1% |
||||||||||
Wireless Telecommunication Services - 0.1% |
||||||||||
Altice Financing S.A. (Luxembourg)4, 6.50%, 1/15/2022 |
425,000 | 436,687 | ||||||||
America Movil S.A.B. de C.V. (Mexico), 5.00%, 3/30/2020 |
235,000 | 259,052 | ||||||||
CPI International, Inc., 8.75%, 2/15/2018 |
205,000 | 212,688 | ||||||||
UPCB Finance VI Ltd. (Netherlands)4, 6.875%, 1/15/2022 |
250,000 | 273,125 | ||||||||
|
|
|||||||||
Total Telecommunication Services |
1,181,552 | |||||||||
|
|
|||||||||
Utilities - 0.1% |
||||||||||
Independent Power and Renewable Electricity Producers - 0.1% |
||||||||||
AES Corp.5, 3.234%, 6/1/2019 |
315,000 | 313,326 | ||||||||
ContourGlobal Power Holdings S.A. (France)4, 7.125%, 6/1/2019 |
290,000 | 290,725 | ||||||||
NRG Energy, Inc., 6.25%, 7/15/2022 |
260,000 | 271,700 | ||||||||
RJS Power Holdings LLC4, 5.125%, 7/15/2019 |
200,000 | 199,000 | ||||||||
|
|
|||||||||
Total Utilities |
1,074,751 | |||||||||
|
|
|||||||||
TOTAL CORPORATE BONDS |
||||||||||
(Identified Cost $48,841,316) |
48,638,577 | |||||||||
|
|
PRINCIPAL AMOUNT 3/ SHARES CONTRACTS |
VALUE | |||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES - 0.2% |
||||||||||
Commercial Mortgage Pass-Through Certificates, Series 2006-C7, Class A45, 5.949%, 6/10/2046 |
690,415 | $ | 729,705 | |||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.552%, 5/12/2045 |
717,766 | 756,446 | ||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.308%, 11/15/2048 |
1,078,798 | 1,152,020 | ||||||||
|
|
|||||||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES |
||||||||||
(Identified Cost $2,716,134) |
2,638,171 | |||||||||
|
|
|||||||||
U.S. GOVERNMENT AGENCIES - 1.9% |
||||||||||
Mortgage-Backed Securities - 1.0% |
||||||||||
Fannie Mae, Pool #AH1300, 3.50%, 1/1/2026 |
1,577,856 | 1,669,787 | ||||||||
Freddie Mac, Pool #J14734, 3.50%, 3/1/2026 |
2,859,971 | 3,026,510 | ||||||||
Freddie Mac, Pool #G01931, 5.50%, 10/1/2035 |
2,767,624 | 3,098,222 | ||||||||
Freddie Mac, Pool #G05888, 5.50%, 10/1/2039 |
2,925,774 | 3,283,922 | ||||||||
|
|
|||||||||
Total Mortgage-Backed Securities |
||||||||||
(Identified Cost $10,896,870) |
11,078,441 | |||||||||
|
|
|||||||||
Other Agencies - 0.9% |
||||||||||
Fannie Mae, 0.875%, 8/28/2017 |
||||||||||
(Identified Cost $10,958,739) |
11,000,000 | 10,973,006 | ||||||||
|
|
|||||||||
TOTAL U.S. GOVERNMENT AGENCIES |
||||||||||
(Identified Cost $21,855,609) |
22,051,447 | |||||||||
|
|
|||||||||
SHORT-TERM INVESTMENT - 3.5% |
||||||||||
Dreyfus Cash Management, Inc. - Institutional Shares6, 0.03%, |
||||||||||
(Identified Cost $42,024,442) |
42,024,442 | 42,024,442 | ||||||||
|
|
|||||||||
TOTAL INVESTMENTS - 99.7% |
||||||||||
(Identified Cost $1,120,433,942) |
1,192,565,465 | |||||||||
OTHER ASSETS, LESS LIABILITIES - 0.3% |
3,825,394 | |||||||||
|
|
|||||||||
NET ASSETS - 100% |
$ | 1,196,390,859 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
109
Investment Portfolio - October 31, 2014
ADR - American Depositary Receipt
*Non-income producing security.
##Less than 0.1%.
1A factor from a third party vendor was applied to determine the securitys fair value following the close of local trading.
2Latest quoted sales price is not available and the latest quoted bid price was used to value the security.
3Amount is stated in USD unless otherwise noted.
4Restricted securities - Investment in securities that are restricted as to public resale under the Securities Act of 1933, as amended. These securities have been sold under Rule 144A and have been determined to be liquid. These securities amount to $15,083,811, or 1.3%, of the Series net assets as of October 31, 2014 (see Note 2 to the financial statements).
5The coupon rate is floating and is the effective rate as of October 31, 2014.
6Rate shown is the current yield as of October 31, 2014.
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard & Poors, a division of The McGraw-Hill Companies, Inc. (S&P), and is licensed for use by Manning & Napier when referencing GICS sectors. Neither MSCI, S&P, nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification, nor shall any such party have any liability therefrom.
The accompanying notes are an integral part of the financial statements.
110
Statement of Assets and Liabilities - Pro-Blend® Maximum Term Series
October 31, 2014
ASSETS: |
||||
Investments, at value (identified cost $1,120,433,942) (Note 2) |
$ | 1,192,565,465 | ||
Receivable for securities sold |
11,047,929 | |||
Receivable for fund shares sold |
994,104 | |||
Dividends receivable |
862,362 | |||
Interest receivable |
845,231 | |||
Foreign tax reclaims receivable |
390,197 | |||
|
|
|||
TOTAL ASSETS |
1,206,705,288 | |||
|
|
|||
LIABILITIES: |
||||
Accrued management fees (Note 3) |
737,671 | |||
Accrued shareholder services fees (Class S) (Note 3) |
123,306 | |||
Accrued distribution and service (Rule 12b-1) fees (Class C) (Class R) (Note 3) |
60,775 | |||
Accrued fund accounting and administration fees (Note 3) |
43,904 | |||
Accrued transfer agent fees (Note 3) |
39,534 | |||
Accrued Chief Compliance Officer service fees (Note 3) |
407 | |||
Payable for fund shares repurchased |
4,767,882 | |||
Payable for securities purchased |
4,432,977 | |||
Other payables and accrued expenses |
107,973 | |||
|
|
|||
TOTAL LIABILITIES |
10,314,429 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 1,196,390,859 | ||
|
|
|||
NET ASSETS CONSIST OF: |
||||
Capital stock |
$ | 758,864 | ||
Additional paid-in-capital |
964,255,856 | |||
Undistributed net investment income |
2,244,175 | |||
Accumulated net realized gain on investments, foreign currency and translation of other assets and liabilities |
157,025,833 | |||
Net unrealized appreciation on investments, foreign currency and translation of other assets and liabilities |
72,106,131 | |||
|
|
|||
TOTAL NET ASSETS |
$ | 1,196,390,859 | ||
|
|
The accompanying notes are an integral part of the financial statements.
111
Statement of Assets and Liabilities - Pro-Blend® Maximum Term Series
October 31, 2014
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class S |
$ | 20.86 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class I |
$ | 12.51 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class C |
$ | 13.03 | ||
|
|
|||
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE - Class R |
$ | 14.73 | ||
|
|
The accompanying notes are an integral part of the financial statements.
112
Statement of Operations - Pro-Blend® Maximum Term Series
For the Year Ended October 31, 2014
INVESTMENT INCOME: |
||||
Dividends (net of foreign taxes withheld, $626,874) |
$ | 13,827,827 | ||
Interest |
3,238,196 | |||
|
|
|||
Total Investment Income |
17,066,023 | |||
|
|
|||
EXPENSES: |
||||
Management fees (Note 3) |
8,416,823 | |||
Shareholder services fees (Class S) (Note 3) |
1,453,461 | |||
Distribution and service (Rule 12b-1) fees (Class C) (Note 3) |
463,913 | |||
Transfer agent fees (Note 3) |
193,724 | |||
Distribution and service (Rule 12b-1) fees (Class R) (Note 3) |
179,053 | |||
Fund accounting and administration fees (Note 3) |
176,292 | |||
Directors fees (Note 3) |
35,650 | |||
Chief Compliance Officer service fees (Note 3) |
3,161 | |||
Custodian fees |
82,818 | |||
Audit fees |
77,322 | |||
Miscellaneous |
201,001 | |||
|
|
|||
Total Expenses |
11,283,218 | |||
|
|
|||
NET INVESTMENT INCOME |
5,782,805 | |||
|
|
|||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: |
||||
Net realized gain (loss) on- |
||||
Investments |
158,534,287 | |||
Foreign currency and translation of other assets and liabilities |
(26,442 | ) | ||
|
|
|||
158,507,845 | ||||
|
|
|||
Net change in unrealized appreciation on- |
||||
Investments |
(73,402,242 | ) | ||
Foreign currency and translation of other assets and liabilities |
(35,553 | ) | ||
|
|
|||
(73,437,795 | ) | |||
|
|
|||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY |
85,070,050 | |||
|
|
|||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 90,852,855 | ||
|
|
The accompanying notes are an integral part of the financial statements.
113
Statements of Changes in Net Assets - Pro-Blend® Maximum Term Series
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||
OPERATIONS: |
||||||||
Net investment income |
$ | 5,782,805 | $ | 4,384,779 | ||||
Net realized gain on investments and foreign currency |
158,507,845 | 111,763,457 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency |
(73,437,795 | ) | 91,798,212 | |||||
|
|
|
|
|||||
Net increase from operations |
90,852,855 | 207,946,448 | ||||||
|
|
|
|
|||||
DISTRIBUTIONS TO SHAREHOLDERS (Note 8): |
||||||||
From net investment income (Class S) |
(1,197,598 | ) | (1,021,448 | ) | ||||
From net investment income (Class I) |
(3,252,876 | ) | (2,376,519 | ) | ||||
From net investment income (Class C) |
(10,251 | ) | | |||||
From net investment income (Class R) |
(56,176 | ) | (34,515 | ) | ||||
From net realized gain on investments (Class S) |
(45,579,989 | ) | (8,525,711 | ) | ||||
From net realized gain on investments (Class I) |
(57,222,979 | ) | (8,772,271 | ) | ||||
From net realized gain on investments (Class C) |
(4,860,616 | ) | (657,225 | ) | ||||
From net realized gain on investments (Class R) |
(3,765,445 | ) | (458,009 | ) | ||||
|
|
|
|
|||||
Total distributions to shareholders |
(115,945,930 | ) | (21,845,698 | ) | ||||
|
|
|
|
|||||
CAPITAL STOCK ISSUED AND REPURCHASED: |
||||||||
Net increase from capital share transactions (Note 5) |
202,037,395 | 4,537,730 | ||||||
|
|
|
|
|||||
Net increase in net assets |
176,944,320 | 190,638,480 | ||||||
NET ASSETS: |
||||||||
Beginning of year |
1,019,446,539 | 828,808,059 | ||||||
|
|
|
|
|||||
End of year (including undistributed net investment income of $ 2,244,175 and $ 989,950, respectively) |
$ | 1,196,390,859 | $ | 1,019,446,539 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
114
Financial Highlights - Pro-Blend® Maximum Term Series - Class S
FOR THE YEARS ENDED | ||||||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||||
Net asset value - Beginning of year |
$ | 21.01 | $ | 17.00 | $ | 15.66 | $ | 15.59 | $ | 13.35 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from investment operations: |
||||||||||||||||||||||
Net investment income1 |
0.09 | 0.08 | 0.06 | 0.10 | 0.08 | |||||||||||||||||
Net realized and unrealized gain on investments |
1.60 | 4.29 | 1.35 | 0.05 | 2.21 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total from investment operations |
1.69 | 4.37 | 1.41 | 0.15 | 2.29 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Less distributions to shareholders: |
||||||||||||||||||||||
From net investment income |
(0.04 | ) | (0.04 | ) | (0.07 | ) | (0.08 | ) | (0.05 | ) | ||||||||||||
From net realized gain on investments |
(1.80 | ) | (0.32 | ) | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions to shareholders |
(1.84 | ) | (0.36 | ) | (0.07 | ) | (0.08 | ) | (0.05 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value - End of year |
$ | 20.86 | $ | 21.01 | $ | 17.00 | $ | 15.66 | $ | 15.59 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net assets - End of year (000s omitted) |
$ | 597,578 | $ | 530,510 | $ | 467,244 | $ | 512,215 | $ | 539,781 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total return2 |
8.80 | % | 26.13 | % | 9.04 | % | 0.94 | % | 17.17 | % | ||||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||||
Expenses* |
1.07 | % | 1.07 | % | 1.09 | % | 1.09 | % | 1.10 | % | ||||||||||||
Net investment income |
0.45 | % | 0.43 | % | 0.36 | % | 0.59 | % | 0.54 | % | ||||||||||||
Series portfolio turnover |
74 | % | 67 | % | 64 | % | 65 | % | 68 | % | ||||||||||||
*The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||||
N/A | N/A | N/A | N/A | 0.00 | %3 |
1Calculated based on average shares outstanding during the years.
2Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during certain years.
3Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
115
Financial Highlights - Pro-Blend® Maximum Term Series - Class I
FOR THE YEARS ENDED | ||||||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | 10/31/10 | ||||||||||||||||||
Per share data (for a share outstanding throughout each year): |
||||||||||||||||||||||
Net asset value - Beginning of year |
$ | 13.35 | $ | 10.95 | $ | 10.12 | $ | 10.12 | $ | 8.70 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from investment operations: |
||||||||||||||||||||||
Net investment income1 |
0.09 | 0.08 | 0.06 | 0.09 | 0.08 | |||||||||||||||||
Net realized and unrealized gain on investments |
0.96 | 2.72 | 0.88 | 0.03 | 1.43 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total from investment operations |
1.05 | 2.80 | 0.94 | 0.12 | 1.51 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Less distributions to shareholders: |
||||||||||||||||||||||
From net investment income |
(0.09 | ) | (0.08 | ) | (0.11 | ) | (0.12 | ) | (0.09 | ) | ||||||||||||
From net realized gain on investments |
(1.80 | ) | (0.32 | ) | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions to shareholders |
(1.89 | ) | (0.40 | ) | (0.11 | ) | (0.12 | ) | (0.09 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value - End of year |
$ | 12.51 | $ | 13.35 | $ | 10.95 | $ | 10.12 | $ | 10.12 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net assets - End of year (000s omitted) |
$ | 504,866 | $ | 418,785 | $ | 320,999 | $ | 210,597 | $ | 190,344 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total return2 |
9.10 | % | 26.35 | % | 9.42 | % | 1.14 | % | 17.47 | % | ||||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||||
Expenses* |
0.82 | % | 0.82 | % | 0.84 | % | 0.84 | % | 0.85 | % | ||||||||||||
Net investment income |
0.70 | % | 0.66 | % | 0.57 | % | 0.83 | % | 0.81 | % | ||||||||||||
Series portfolio turnover |
74 | % | 67 | % | 64 | % | 65 | % | 68 | % | ||||||||||||
* The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||||
N/A | N/A | N/A | N/A | 0.00 | %3 |
1Calculated based on average shares outstanding during the years.
2Represents aggregate total return for the years indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during certain years.
3Less than 0.01%.
The accompanying notes are an integral part of the financial statements.
116
Financial Highlights - Pro-Blend® Maximum Term Series - Class C
FOR THE YEARS ENDED |
FOR THE PERIOD 1/4/101 TO 10/31/10 |
|||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | |||||||||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||||||||||
Net asset value - Beginning of period |
$ | 13.86 | $ | 11.38 | $ | 10.52 | $ | 10.54 | $ | 10.00 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||
Net investment loss2 |
(0.04 | ) | (0.04 | ) | (0.04 | ) | (0.02 | ) | (0.01 | ) | ||||||||||
Net realized and unrealized gain on investments |
1.01 | 2.84 | 0.91 | 0.04 | 0.58 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
0.97 | 2.80 | 0.87 | 0.02 | 0.57 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.00 | )3 | | (0.01 | ) | (0.04 | ) | (0.03 | ) | |||||||||||
From net realized gain on investments |
(1.80 | ) | (0.32 | ) | | | | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(1.80 | ) | (0.32 | ) | (0.01 | ) | (0.04 | ) | (0.03 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of period |
$ | 13.03 | $ | 13.86 | $ | 11.38 | $ | 10.52 | $ | 10.54 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of period (000s omitted) |
$ | 55,781 | $ | 36,989 | $ | 23,045 | $ | 18,102 | $ | 7,383 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return4 |
8.06 | % | 25.17 | % | 8.27 | % | 0.15 | % | 5.68 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses* |
1.82 | % | 1.82 | % | 1.84 | % | 1.84 | % | 1.85 | %5 | ||||||||||
Net investment loss |
(0.30 | %) | (0.35 | %) | (0.40 | %) | (0.15 | %) | (0.13 | %)5 | ||||||||||
Series portfolio turnover |
74 | % | 67 | % | 64 | % | 65 | % | 68 | % | ||||||||||
* The investment advisor did not impose all or a portion of its management and/or other fees, and in some periods may have paid a portion of the Series expenses. If these expenses had been incurred by the Class, the expense ratio (to average net assets) would have increased by the following amounts: | ||||||||||||||||||||
N/A | N/A | N/A | N/A | 0.01 | %5 |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Less than $0.01.
4Represents aggregate total return for the periods indicated, and assumes reinvestment of all distributions. Total return would have been lower had certain expenses not been waived or reimbursed during the periods. Periods less than one year are not annualized.
5Annualized.
The accompanying notes are an integral part of the financial statements.
117
Financial Highlights - Pro-Blend® Maximum Term Series - Class R
FOR THE YEARS ENDED |
FOR THE PERIOD 10/31/10 |
|||||||||||||||||||
10/31/14 | 10/31/13 | 10/31/12 | 10/31/11 | |||||||||||||||||
Per share data (for a share outstanding throughout each period): |
||||||||||||||||||||
Net asset value - Beginning of period |
$ | 15.39 | $ | 12.56 | $ | 11.63 | $ | 11.64 | $ | 10.00 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||
Net investment income (loss)2 |
0.03 | 0.02 | 0.00 | 3 | 0.00 | 3 | (0.01 | ) | ||||||||||||
Net realized and unrealized gain on investments |
1.13 | 3.15 | 1.00 | 0.09 | 1.65 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total from investment operations |
1.16 | 3.17 | 1.00 | 0.09 | 1.64 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less distributions to shareholders: |
||||||||||||||||||||
From net investment income |
(0.02 | ) | (0.02 | ) | (0.07 | ) | (0.10 | ) | | |||||||||||
From net realized gain on investments |
(1.80 | ) | (0.32 | ) | | | | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions to shareholders |
(1.82 | ) | (0.34 | ) | (0.07 | ) | (0.10 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value - End of period |
$ | 14.73 | $ | 15.39 | $ | 12.56 | $ | 11.63 | $ | 11.64 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net assets - End of period (000s omitted) |
$ | 38,166 | $ | 33,162 | $ | 17,520 | $ | 3,418 | $ | 31 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total return4 |
8.53 | % | 25.81 | % | 8.72 | % | 0.71 | % | 16.40 | % | ||||||||||
Ratios (to average net assets)/Supplemental Data: |
||||||||||||||||||||
Expenses |
1.32 | % | 1.32 | % | 1.34 | % | 1.34 | % | 1.35 | %5 | ||||||||||
Net investment income (loss) |
0.20 | % | 0.14 | % | 0.02 | % | 0.04 | % | (0.38 | %)5 | ||||||||||
Series portfolio turnover |
74 | % | 67 | % | 64 | % | 65 | % | 68 | % |
1Commencement of operations.
2Calculated based on average shares outstanding during the periods.
3Less than $0.01.
4Represents aggregate total return for the periods indicated, and assumes reinvestment of all distributions. Periods less than one year are not annualized.
5Annualized.
The accompanying notes are an integral part of the financial statements.
118
Notes to Financial Statements
1. | Organization |
Pro-Blend® Conservative Term Series, Pro-Blend® Moderate Term Series, Pro-Blend® Extended Term Series and Pro-Blend® Maximum Term Series (each the Series) are no-load diversified series of Manning & Napier Fund, Inc. (the Fund). The Fund is organized in Maryland and is registered under the Investment Company Act of 1940 (the 1940 Act), as amended, as an open-end management investment company.
The Series are asset allocation funds. Each invests in a combination of stocks, bonds and cash and is managed according to specific objectives. The objectives are as follows: Pro-Blend® Conservative Term Series - primary objective is preservation of capital; secondary objective is to provide income and long-term growth of capital. Pro-Blend® Moderate Term Series - equal emphasis on long-term growth of capital and preservation of capital. Pro-Blend® Extended Term Series - primary objective is long-term growth of capital; secondary objective is preservation of capital. Pro-Blend® Maximum Term Series - primary objective is long-term growth of capital.
Each Series is authorized to issue four classes of shares (Class C, R, I and S). Each class of shares is substantially the same, except that class-specific distribution and shareholder servicing expenses are borne by the specific class of shares to which they relate.
The Funds Advisor is Manning & Napier Advisors, LLC (the Advisor). Shares of each Series are offered to investors and employees of the Advisor and its affiliates. The total authorized capital stock of the Fund consists of 15 billion shares of common stock each having a par value of $0.01. As of October 31, 2014, 10.6 billion shares have been designated in total among 42 series, of which 162.5 million have been designated as Pro-Blend® Conservative Term Series Class S common stock, 75 million have been designated as Pro-Blend® Conservative Term Series Class I common stock, 125 million each have been designated as Class S common stock and Class I common stock for Pro-Blend® Moderate Term Series, 125 million each have been designated as Class S common stock for Pro-Blend® Extended Term Series and Pro-Blend® Maximum Term Series, 200 million each have been designated as Class I common stock for Pro-Blend® Extended Term Series and Pro-Blend® Maximum Term Series, 25 million each have been designated as Class C common stock for Pro-Blend® Conservative Term Series, Pro-Blend® Moderate Term Series, Pro-Blend® Extended Term Series and Pro-Blend® Maximum Term Series and 52.5 million each have been designated as Class R common stock for Pro-Blend® Conservative Term Series, Pro-Blend® Moderate Term Series, Pro-Blend® Extended Term Series and Pro-Blend® Maximum Term Series.
2. | Significant Accounting Policies |
The following is a summary of significant accounting policies followed by the Series. Each Series is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946 - Investment Companies, which is part of accounting principles generally accepted in the United States of America (GAAP).
Security Valuation
Portfolio securities, including domestic equities, foreign equities, warrants and options, listed on an exchange other than the NASDAQ Stock Market are valued at the latest quoted sales price of the exchange on which the security is primarily traded. Securities not traded on valuation date or securities not listed on an exchange are valued at the latest quoted bid price provided by the Funds pricing service. Securities listed on the NASDAQ Stock Market are valued in accordance with the NASDAQ Official Closing Price.
Debt securities, including government bonds, foreign bonds, asset-backed securities, structured notes, supranational obligations, sovereign bonds, corporate bonds and mortgage-backed securities will normally be valued on the basis of evaluated bid prices provided directly by an independent pricing service. The pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated defaulted rates, coupon rates, anticipated timing of principal repayments, underlying collateral and other unique security features in order to estimate the relevant cash flows,
119
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Valuation (continued)
which are then discounted to calculate the fair value. Certain investments in securities held by the Series may be valued on a basis of a price provided directly by a principal market maker. These prices may differ from the value that would have been used had a broader market for securities existed.
Short-term investments that mature in sixty days or less are valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at their net asset value per share on valuation date.
Volume and level of activity in established markets for an asset or liability are evaluated to determine whether recent transactions and quoted prices are determinative of fair value. Where there have been significant decreases in volume and level of activity, further analysis and adjustment may be necessary to estimate fair value. The Series measure fair value in these instances by the use of inputs and valuation techniques which may be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry and/or expectation of future cash flows. As a result of trading in relatively thin markets and/or markets that experience significant volatility, the prices used by the Series to value these securities may differ from the value that would be realized if these securities were sold, and the differences could be material.
Securities for which representative valuations or prices are not available from the Series pricing service may be valued at fair value as determined in good faith by the Advisor under procedures approved by and under the general supervision and responsibility of the Funds Board of Directors (the Board). Due to the inherent uncertainty of valuations of such securities, the fair value may differ significantly from the values that would have been used had a ready market for such securities existed. If trading or events occurring after the close of the principal market in which securities are traded are expected to materially affect the value of those securities, then they may be valued at their fair value, taking this trading or these events into account. In accordance with the procedures approved by the Board, the values of certain securities trading outside the U.S. were adjusted following the close of local trading using a factor from a third party vendor. The third party vendor uses statistical analyses and quantitative models, which consider among other things subsequent movement and changes in the prices of indices, securities and exchange rates in other markets, to determine the factors which are used to adjust local market prices. The value of securities used for net asset value calculation under these procedures may differ from published prices for the same securities. It is the Funds policy to classify each foreign equity security where a factor from a third party vendor is provided as a Level 2 security.
Various inputs are used in determining the value of the Series assets or liabilities carried at fair value. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical assets and liabilities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 includes significant unobservable inputs (including the Series own assumptions in determining the fair value of investments). A financial instruments level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to their fair value measure. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuation levels used for major security types as of October 31, 2014 in valuing the Series assets or liabilities carried at fair value:
PRO-BLEND® CONSERVATIVE TERM SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Equity securities: |
||||||||||||||||
Consumer Discretionary |
$ | 118,121,502 | $ | 116,185,507 | $ | 1,935,995 | $ | | ||||||||
Consumer Staples |
68,772,775 | 40,005,235 | 28,767,540 | | ||||||||||||
Energy |
71,529,747 | 70,514,032 | 1,015,715 | | ||||||||||||
Financials |
69,471,374 | 57,901,752 | 11,569,622 | | ||||||||||||
Health Care |
68,382,923 | 63,148,358 | 5,234,565 | | ||||||||||||
Industrials |
39,230,377 | 38,389,115 | 841,262 | |
120
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Valuation (continued)
PRO-BLEND®CONSERVATIVE TERM SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Information Technology |
$ | 92,089,708 | $ | 91,229,942 | $ | 859,766 | $ | | ||||||||
Materials |
36,641,200 | 35,466,635 | 1,174,565 | | ||||||||||||
Telecommunication Services |
3,545,975 | 3,083,362 | 462,613 | | ||||||||||||
Utilities |
2,731,237 | 2,731,237 | | | ||||||||||||
Preferred securities: |
||||||||||||||||
Financials |
3,757,807 | 3,757,807 | | | ||||||||||||
Debt securities: |
||||||||||||||||
U.S. Treasury and other U.S. Government agencies |
388,076,726 | | 388,076,726 | | ||||||||||||
States and political subdivisions (municipals) |
2,352,906 | | 2,352,906 | | ||||||||||||
Corporate debt: |
||||||||||||||||
Consumer Discretionary |
61,156,566 | | 61,156,566 | | ||||||||||||
Consumer Staples |
13,456,897 | | 13,456,897 | | ||||||||||||
Energy |
24,104,722 | | 24,104,722 | | ||||||||||||
Financials |
290,430,484 | | 290,430,484 | | ||||||||||||
Health Care |
8,851,581 | | 8,851,581 | | ||||||||||||
Industrials |
39,813,952 | | 39,813,952 | | ||||||||||||
Information Technology |
12,665,186 | | 12,665,186 | | ||||||||||||
Materials |
21,450,835 | | 21,450,835 | | ||||||||||||
Telecommunication Services |
12,992,480 | | 12,992,480 | | ||||||||||||
Utilities |
3,264,439 | | 3,264,439 | | ||||||||||||
Convertible corporate debt: |
||||||||||||||||
Consumer Discretionary |
1,434,194 | | 1,434,194 | | ||||||||||||
Financials |
521,212 | | 521,212 | | ||||||||||||
Asset-backed securities |
9,486,584 | | 9,486,584 | | ||||||||||||
Commercial mortgage-backed securities |
75,824,423 | | 75,824,423 | | ||||||||||||
Foreign government bonds |
39,894,763 | | 39,894,763 | | ||||||||||||
Mutual funds |
66,555,848 | 66,555,848 | | | ||||||||||||
Other financial instruments*: |
||||||||||||||||
Interest rate contracts |
3,142,626 | 3,142,626 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
1,649,751,049 | 592,111,456 | 1,057,639,593 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Other financial instruments*: |
||||||||||||||||
Equity contracts |
(359,562 | ) | (359,562 | ) | | | ||||||||||
Interest rate contracts |
(2,899,192 | ) | (2,899,192 | ) | | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
(3,258,754 | ) | (3,258,754 | ) | | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 1,646,492,295 | $ | 588,852,702 | $ | 1,057,639,593 | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® MODERATE TERM SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Equity securities: |
||||||||||||||||
Consumer Discretionary |
$ | 207,567,775 | $ | 194,388,837 | $ | 13,178,938 | $ | | ||||||||
Consumer Staples |
82,273,631 | 23,835,972 | 58,437,659 | | ||||||||||||
Energy |
102,660,872 | 100,353,537 | 2,307,335 | | ||||||||||||
Financials |
82,178,761 | 64,445,915 | 17,732,846 | | ||||||||||||
Health Care |
90,880,127 | 85,778,622 | 5,101,505 | | ||||||||||||
Industrials |
53,455,398 | 46,416,067 | 7,039,331 | | ||||||||||||
Information Technology |
133,153,638 | 126,799,335 | 6,354,303 | |
121
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Valuation (continued)
PRO-BLEND® MODERATE TERM SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Materials |
$ | 56,133,693 | $ | 51,720,279 | $ | 4,413,414 | $ | | ||||||||
Telecommunication Services |
2,783,485 | 1,777,367 | 1,006,118 | | ||||||||||||
Preferred securities: |
||||||||||||||||
Financials |
3,271,676 | 3,271,676 | | | ||||||||||||
Debt securities: |
||||||||||||||||
U.S. Treasury and other U.S. Government agencies |
330,095,164 | | 330,095,164 | | ||||||||||||
States and political subdivisions (municipals) |
2,254,620 | | 2,254,620 | | ||||||||||||
Corporate debt: |
||||||||||||||||
Consumer Discretionary |
45,180,059 | | 45,180,059 | | ||||||||||||
Consumer Staples |
11,994,238 | | 11,994,238 | | ||||||||||||
Energy |
22,566,581 | | 22,566,581 | | ||||||||||||
Financials |
213,137,957 | | 213,137,957 | | ||||||||||||
Health Care |
7,177,323 | | 7,177,323 | | ||||||||||||
Industrials |
35,076,111 | | 35,076,111 | | ||||||||||||
Information Technology |
12,424,679 | | 12,424,679 | | ||||||||||||
Materials |
20,009,408 | | 20,009,408 | | ||||||||||||
Telecommunication Services |
12,820,282 | | 12,820,282 | | ||||||||||||
Utilities |
3,963,083 | | 3,963,083 | | ||||||||||||
Convertible corporate debt: |
||||||||||||||||
Consumer Discretionary |
1,388,844 | | 1,388,844 | | ||||||||||||
Financials |
1,048,781 | | 1,048,781 | | ||||||||||||
Asset-backed securities |
8,576,344 | | 8,576,344 | | ||||||||||||
Commercial mortgage-backed securities |
70,305,173 | | 70,305,173 | | ||||||||||||
Foreign government bonds |
24,605,552 | | 24,605,552 | | ||||||||||||
Mutual funds |
48,625,292 | 48,625,292 | | | ||||||||||||
Other financial instruments*: |
||||||||||||||||
Interest rate contracts |
2,658,785 | 2,658,785 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
1,688,267,332 | 750,071,684 | 938,195,648 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Other financial instruments*: |
||||||||||||||||
Equity contracts |
(623,764 | ) | (623,764 | ) | | | ||||||||||
Interest rate contracts |
(2,496,576 | ) | (2,496,576 | ) | | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
(3,120,340 | ) | (3,120,340 | ) | | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 1,685,146,992 | $ | 746,951,344 | $ | 938,195,648 | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® EXTENDED TERM SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Equity securities: |
||||||||||||||||
Consumer Discretionary |
$ | 286,441,870 | $ | 268,321,970 | $ | 18,119,900 | $ | | ||||||||
Consumer Staples |
110,952,843 | 35,975,013 | 74,977,830 | | ||||||||||||
Energy |
138,332,120 | 135,037,097 | 3,295,023 | | ||||||||||||
Financials |
105,800,969 | 84,724,393 | 21,076,576 | | ||||||||||||
Health Care |
125,560,719 | 118,469,305 | 7,091,414 | | ||||||||||||
Industrials |
75,332,506 | 65,606,804 | 9,725,702 | | ||||||||||||
Information Technology |
182,038,063 | 173,467,830 | 8,570,233 | | ||||||||||||
Materials |
76,058,092 | 69,495,953 | 6,562,139 | | ||||||||||||
Telecommunication Services |
3,856,545 | 2,509,551 | 1,346,994 | |
122
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Valuation (continued)
PRO-BLEND® EXTENDED TERM SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Preferred securities: |
||||||||||||||||
Financials |
$ | 3,349,249 | $ | 3,349,249 | $ | | $ | | ||||||||
Debt securities: |
||||||||||||||||
U.S. Treasury and other U.S. Government agencies |
206,033,883 | | 206,033,883 | | ||||||||||||
States and political subdivisions |
2,628,076 | | 2,628,076 | | ||||||||||||
Corporate debt: |
||||||||||||||||
Consumer Discretionary |
35,009,462 | | 35,009,462 | | ||||||||||||
Consumer Staples |
11,961,698 | | 11,961,698 | | ||||||||||||
Energy |
19,934,663 | | 19,934,663 | | ||||||||||||
Financials |
148,398,662 | | 148,398,662 | | ||||||||||||
Health Care |
5,858,461 | | 5,858,461 | | ||||||||||||
Industrials |
29,434,066 | | 29,434,066 | | ||||||||||||
Information Technology |
9,332,220 | | 9,332,220 | | ||||||||||||
Materials |
21,480,649 | | 21,480,649 | | ||||||||||||
Telecommunication Services |
11,060,657 | | 11,060,657 | | ||||||||||||
Utilities |
4,002,917 | | 4,002,917 | | ||||||||||||
Convertible corporate debt: |
||||||||||||||||
Consumer Discretionary |
1,417,187 | | 1,417,187 | | ||||||||||||
Financials |
1,080,563 | | 1,080,563 | | ||||||||||||
Asset-backed securities |
5,857,989 | | 5,857,989 | | ||||||||||||
Commercial mortgage-backed securities |
58,827,215 | | 58,827,215 | | ||||||||||||
Foreign government bonds |
24,292,167 | | 24,292,167 | | ||||||||||||
Mutual funds |
39,963,332 | 39,963,332 | | | ||||||||||||
Other financial instruments*: |
||||||||||||||||
Interest rate contracts |
2,012,790 | 2,012,790 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
1,746,309,633 | 998,933,287 | 747,376,346 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Other financial instruments* |
||||||||||||||||
Equity contracts |
(856,576 | ) | (856,576 | ) | | | ||||||||||
Interest rate contracts |
(1,879,476 | ) | (1,879,476 | ) | | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
(2,736,052 | ) | (2,736,052 | ) | | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 1,743,573,581 | $ | 996,197,235 | $ | 747,376,346 | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® MAXIMUM TERM SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets: |
||||||||||||||||
Equity securities: |
||||||||||||||||
Consumer Discretionary |
$ | 252,354,771 | $ | 239,428,055 | $ | 12,926,716 | $ | | ||||||||
Consumer Staples |
149,471,430 | 66,395,621 | 83,075,809 | | ||||||||||||
Energy |
132,127,501 | 129,782,561 | 2,344,940 | | ||||||||||||
Financials |
56,376,423 | 51,382,359 | 4,994,064 | | ||||||||||||
Health Care |
138,830,302 | 128,233,785 | 10,596,517 | | ||||||||||||
Industrials |
85,771,435 | 79,137,687 | 6,633,748 | | ||||||||||||
Information Technology |
181,275,177 | 174,954,042 | 6,321,135 | | ||||||||||||
Materials |
78,388,144 | 73,480,669 | 4,907,475 | | ||||||||||||
Telecommunication Services |
2,617,645 | 1,638,463 | 979,182 | |
123
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Security Valuation (continued)
PRO-BLEND® MAXIMUM TERM SERIES | ||||||||||||||||
DESCRIPTION | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Debt securities: |
||||||||||||||||
U.S. Treasury and other U.S. Government agencies |
$ | 22,051,447 | $ | | $ | 22,051,447 | $ | | ||||||||
Corporate debt: |
||||||||||||||||
Consumer Discretionary |
4,688,529 | | 4,688,529 | | ||||||||||||
Consumer Staples |
1,985,633 | | 1,985,633 | | ||||||||||||
Energy |
4,504,277 | | 4,504,277 | | ||||||||||||
Financials |
21,710,923 | | 21,710,923 | | ||||||||||||
Health Care |
1,535,613 | | 1,535,613 | | ||||||||||||
Industrials |
9,928,652 | | 9,928,652 | | ||||||||||||
Information Technology |
247,047 | | 247,047 | | ||||||||||||
Materials |
1,781,600 | | 1,781,600 | | ||||||||||||
Telecommunication Services |
1,181,552 | | 1,181,552 | | ||||||||||||
Utilities |
1,074,751 | | 1,074,751 | | ||||||||||||
Commercial mortgage-backed securities |
2,638,171 | | 2,638,171 | | ||||||||||||
Mutual fund |
42,024,442 | 42,024,442 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 1,192,565,465 | $ | 986,457,684 | $ | 206,107,781 | $ | | ||||||||
|
|
|
|
|
|
|
|
Please see the Investment Portfolio for each of the Series for foreign securities where a factor from a third party vendor was applied to determine the securities fair value following the close of local trading. Such securities are included in Level 2 in the table above.
There were no Level 3 securities held by any of the Pro-Blend® Series as of October 31, 2013 or October 31, 2014.
*Other financial instruments are exchange traded options and futures (Level 1). Futures are valued at the unrealized appreciation/ (depreciation) on the instrument and options are shown at market value.
The Funds policy is to recognize transfers in and transfers out of the valuation levels as of the beginning of the reporting period. There were no transfers between Level 1 and Level 2 during the year ended October 31, 2014.
Security Transactions, Investment Income and Expenses
Security transactions are accounted for on trade date. Dividend income is recorded on the ex-dividend date, except that if the ex-dividend date has passed, certain dividends from foreign securities are recorded as soon as the Series is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Interest income, including amortization of premium and accretion of discounts using the effective interest method, is earned from settlement date and accrued daily.
Expenses are recorded on an accrual basis. Most expenses of the Fund can be attributed to a specific series. Expenses which cannot be directly attributed are apportioned among the series in the Fund in such a manner as deemed equitable by the Funds Board, taking into consideration, among other things, the nature and type of expense.
Income, expenses (other than class specific expenses), and realized and unrealized gains and losses are prorated among the classes based on the relative net assets of each class. Class specific expenses are directly charged to that Class.
The Series use the identified cost method for determining realized gain or loss on investments for both financial statement and federal income tax reporting purposes.
Foreign Currency Translation
The books and records of the Series are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the current exchange rates. Purchases and sales of investment securities and income and expenses are translated on the respective dates of such transactions. The Series do not isolate realized and
124
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Foreign Currency Translation (continued)
unrealized gains and losses attributable to changes in the exchange rates from gains and losses that arise from changes in the fair value of investments. Such fluctuations are included with net realized and unrealized gain or loss on investments. Net realized foreign currency gains and losses represent foreign currency gains and losses between trade date and settlement date on securities transactions, gains and losses on disposition of foreign currencies and the difference between the amount of income and foreign withholding taxes recorded on the books of the Series and the amounts actually received or paid.
Option Contracts
The Series may write (sell) or buy call or put options on securities and other financial instruments. When the Series writes a call, the Series gives the purchaser the right to buy the underlying security from the Series at the price specified in the option contract (the exercise price) at any time during the option period. When the Series writes a put option, the Series gives the purchaser the right to sell to the Series the underlying security at the exercise price at any time during the option period. The Series will only write options on a covered basis. This means that the Series will own the underlying security when the Series writes a call or the Series will put aside cash, U.S. Government securities, or other liquid assets in an amount not less than the exercise price at all times the put option is outstanding.
When the Series writes an option, an amount equal to the premium received is reflected as a liability and is subsequently marked-to-market to reflect the current market value of the option. The Series, as a writer of an option, has no control over whether the underlying security or financial instrument may be sold (call) or purchased (put) and, as a result, bears the market risk of an unfavorable change in the price of the security or financial instrument underlying the written option. There is a risk that the Series may not be able to enter into a closing transaction because of an illiquid market.
The Series may also purchase options in an attempt to hedge against fluctuations in the value of its portfolio and to protect against declines in the value of the securities. The premium paid by the Series for the purchase of an option is reflected as an investment and subsequently marked-to-market to reflect the current market value of the option. The risk associated with purchasing options is limited to the premium paid.
When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Series enters into a closing transaction), the Series realizes a gain or loss on the option to the extent of the premium received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium paid or received).
The measurement of the risks associated with option contracts is meaningful only when all related and offsetting transactions are considered. The counterparty for the Series written options contracts outstanding at October 31, 2014 is Pershing LLC, a BNY Mellon Company.
Futures
The Series may purchase or sell exchange-traded futures contracts, which are contracts that obligate the Series to make or take delivery of a financial instrument or the cash value of a security index at a specified future date at a specified price. The Series may use futures contracts to manage exposure to the stock and bond markets or changes in interest rates and currency values, or for gaining exposure to markets. Risks of entering into futures contracts include the possibility that there may be an illiquid market at the time the Adviser to the Series may be attempting to sell some or all the Series holdings or that a change in the value of the contract may not correlate with changes in the value of the underlying securities. Upon entering into a futures contract, the Series is required to deposit either cash or securities (initial margin). Subsequent payments (variation margin) are made or received by the Series, generally on a daily basis. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains or losses. The Series recognize a realized gain or loss when the contract is closed or expires.
Futures transactions involve minimal counterparty risk since futures contracts are guaranteed against default by the exchange on which they trade. The Series futures contracts are not subject to master netting arrangements (the right to close out all transactions traded with a counterparty, and net amounts owed or due across transactions).
125
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
The following table presents the present value of derivatives held at October 31, 2014 as reflected on the Statement of Assets and Liabilities, and the effect of the derivative instruments on the Statement of Operations:
PRO-BLEND® CONSERVATIVE TERM SERIES | ||||||
STATEMENT OF ASSETS AND LIABILITIES | ||||||
Derivative |
Assets Location | |||||
Interest rate contracts |
Net unrealized appreciation/depreciation1 | $ | 3,142,626 | |||
Derivative |
Liabilities Location | |||||
Interest rate contracts |
Net unrealized appreciation/depreciation1 | $ | (2,899,192 | ) | ||
Equity contracts |
Options written, at value | $ | (359,562 | ) | ||
STATEMENT OF OPERATIONS | ||||||
Derivative |
Location of Gain or (Loss) on Derivatives | |
Realized Gain (Loss) on Derivatives |
| ||
Interest rate contracts |
Net realized gain (loss) on futures contracts | $ | (2,325,295 | ) | ||
Equity contracts |
Net realized gain (loss) on options written | $ | (283,161 | ) | ||
Derivative |
Location of Appreciation (Depreciation) on Derivatives | |
Unrealized Appreciation (Depreciation) on Derivatives |
| ||
Interest rate contracts |
Net change in unrealized appreciation (depreciation) on futures contracts | $ | 243,434 | |||
Equity contracts |
Net change in unrealized appreciation (depreciation) on options written | $ | (93,740 | ) | ||
PRO-BLEND® MODERATE TERM SERIES | ||||||
STATEMENT OF ASSETS AND LIABILITIES | ||||||
Derivative |
Assets Location | |||||
Interest rate contracts |
Net unrealized appreciation/depreciation1 | $ | 2,658,785 | |||
Derivative |
Liabilities Location | |||||
Interest rate contracts |
Net unrealized appreciation/depreciation1 | $ | (2,496,576 | ) | ||
Equity contracts |
Options written, at value | $ | (623,764 | ) | ||
STATEMENT OF OPERATIONS | ||||||
Derivative |
Location of Gain or (Loss) on Derivatives | |
Realized Gain (Loss) on Derivatives |
| ||
Interest rate contracts |
Net realized gain (loss) on futures contracts | $ | (1,662,426 | ) | ||
Equity contracts |
Net realized gain (loss) on options written | $ | (493,887 | ) |
126
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
STATEMENT OF OPERATIONS | ||||||
Derivative |
Location of Appreciation (Depreciation) on Derivatives | |
Unrealized Appreciation (Depreciation) on Derivatives |
| ||
Interest rate contracts |
Net change in unrealized appreciation (depreciation) on futures contracts | $ 162,209 | ||||
Equity contracts |
Net change in unrealized appreciation (depreciation) on options written | $ (162,220) | ||||
PRO-BLEND® EXTENDED TERM SERIES | ||||||
STATEMENT OF ASSETS AND LIABILITIES | ||||||
Derivative |
Assets Location |
|||||
Interest rate contracts |
Net unrealized appreciation/depreciation | $ 2,012,790 | ||||
Derivative |
Liabilities Location |
|||||
Interest rate contracts |
Net unrealized appreciation/depreciation1 | $ (1,879,476) | ||||
Equity contracts |
Options written, at value | $ (856,576) | ||||
STATEMENT OF OPERATIONS | ||||||
Derivative |
Location of Gain or (Loss) on Derivatives |
|
Realized Gain (Loss) on Derivatives |
| ||
Interest rate contracts |
Net realized gain (loss) on futures contracts | $ (1,415,315) | ||||
Equity contracts |
Net realized gain (loss) on options written | $ (672,707) | ||||
Derivative |
Location of Appreciation (Depreciation) on Derivatives | |
Unrealized Appreciation (Depreciation) on Derivatives |
| ||
Interest rate contracts |
Net change in unrealized appreciation (depreciation) on futures contracts | $ 133,314 | ||||
Equity contracts |
Net change in unrealized appreciation (depreciation) on options written | $ (221,687) |
1 Includes cumulative appreciation/depreciation on futures contracts as reported in the Investment Portfolios. Only the current days variation margin is reported within the Statements of Assets and Liabilities.
127
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
The average month-end balances for the period July 31, 2014 to October 31, 2014, the period in which such derivatives were outstanding, were as follows:
PRO-BLEND® CONSERVATIVE TERM SERIES |
PRO-BLEND® MODERATE TERM SERIES |
PRO-BLEND® EXTENDED TERM SERIES |
||||||||||||
Futures Contracts: |
||||||||||||||
Average number of contracts purchased |
7,354 | 6,200 | 4,705 | |||||||||||
Average number of contracts sold |
5,225 | 4,405 | 3,343 | |||||||||||
Average notional value of contracts purchased |
$ | 1,553,243,282 | $ | 1,309,705,654 | $ | 993,755,658 | ||||||||
Average notional value of contracts sold |
$ | 1,093,909,378 | $ | 922,225,604 | $ | 699,810,611 | ||||||||
Options: |
||||||||||||||
Average number of option contracts written |
2,656 | 4,791 | 6,516 | |||||||||||
Average notional value of option contracts written |
$ | 11,175,375 | $ | 19,946,775 | $ | 27,242,325 |
Written Option Rollforward
Transactions in options written for the year ended October 31, 2014, were as follows:
PRO-BLEND® CONSERVATIVE TERM SERIES: |
CALLS | PUTS | ||||||||||||||
CONTRACTS | PREMIUMS RECEIVED |
CONTRACTS | PREMIUMS RECEIVED |
|||||||||||||
Outstanding options, beginning of year |
| | | | ||||||||||||
Options written |
5,140 | $ | 796,611 | 7,344 | $ | 274,128 | ||||||||||
Options exercised |
(3,428 | ) | (613,513 | ) | (1,831 | ) | (74,257 | ) | ||||||||
Options expired |
| | (1,197 | ) | (17,645 | ) | ||||||||||
Options closed |
| | (3,182 | ) | (99,502 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Outstanding options, end of year |
1,712 | $ | 183,098 | 1,134 | $ | 82,724 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® MODERATE TERM SERIES: |
CALLS | PUTS | ||||||||||||||
CONTRACTS | PREMIUMS RECEIVED |
CONTRACTS | PREMIUMS RECEIVED |
|||||||||||||
Outstanding options, beginning of year |
| | | | ||||||||||||
Options written |
9,069 | $ | 1,402,735 | 13,331 | $ | 489,752 | ||||||||||
Options exercised |
(6,100 | ) | (1,085,075 | ) | (3,290 | ) | (133,478 | ) | ||||||||
Options expired |
| | (2,293 | ) | (33,059 | ) | ||||||||||
Options closed |
(1 | ) | (234 | ) | (5,778 | ) | (179,097 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Outstanding options, end of year |
2,968 | $ | 317,426 | 1,970 | $ | 144,118 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® EXTENDED TERM SERIES: |
CALLS | PUTS | ||||||||||||||
CONTRACTS | PREMIUMS RECEIVED |
CONTRACTS | PREMIUMS RECEIVED |
|||||||||||||
Outstanding options, beginning of year |
| | | | ||||||||||||
Options written |
12,270 | $ | 1,887,194 | 18,115 | $ | 667,173 | ||||||||||
Options exercised |
(8,195 | ) | (1,451,375 | ) | (4,439 | ) | (180,094 | ) | ||||||||
Options expired |
| | (3,109 | ) | (45,174 | ) | ||||||||||
Options closed |
| | (7,835 | ) | (242,835 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Outstanding options, end of year |
4,075 | $ | 435,819 | 2,732 | $ | 199,070 | ||||||||||
|
|
|
|
|
|
|
|
Securities Purchased on a When-Issued Basis or Forward Commitment
The Fund may purchase securities on a when-issued basis or forward commitment. These transactions involve a commitment by the Fund to purchase securities for a predetermined price with payment and delivery taking place beyond the customary
128
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Securities Purchased on a When-Issued Basis or Forward Commitment (continued)
settlement period. When such purchases are outstanding, the Fund will designate liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and take such fluctuations into account when determining their net asset value. The Fund may sell the when-issued securities before they are delivered, which may result in a capital gain or loss.
In connection with their ability to purchase or sell securities on a forward commitment basis, the Fund may enter into forward roll transactions principally using To Be Announced (TBA) securities. Forward roll transactions require the sale of securities for delivery in the current month, and a simultaneous agreement to repurchase substantially similar (same type, coupon and maturity) securities on a specified future date. Risks of entering into forward roll transactions include the potential inability of the counterparty to meet the terms of the agreement; the potential of the Fund to receive inferior securities at redelivery as compared to the securities sold to the counterparty; counterparty credit risk; and the potential pay down speed variance between the mortgage-backed pools. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund accounts for such dollar rolls as purchases and sales. No such investments were held by the Fund on October 31, 2014.
Interest Only Securities
The Series may invest in stripped mortgage-backed securities issued by the U.S. government, its agencies and instrumentalities. Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. In certain cases, one class will receive all of the interest (the interest-only or IO class), while the other class will receive all of the principal (the principal-only or PO class). The yield to maturity on IOs is sensitive to the rate of principal repayments (including prepayments) on the related underlying mortgage assets, and principal payments may have a material effect on yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, a Series may not fully recoup its initial investment in IOs.
Restricted Securities
Restricted securities are purchased in private placement transactions, are not registered under the Securities Act of 1933, as amended, and may have contractual restrictions on resale. Information regarding restricted securities is included at the end of each applicable Series Investment Portfolio.
Federal Taxes
Each Series policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. The Series are not subject to federal income tax or excise tax to the extent that each Series distributes to shareholders each year its taxable income, including any net realized gains on investments, in accordance with requirements of the Internal Revenue Code. Accordingly, no provision for federal income tax or excise tax has been made in the financial statements.
Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is more likely than not to be sustained assuming examination by taxing authorities. At October 31, 2014, the Series have recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns.
The Series file income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions, as required. No income tax returns are currently under investigation. The statute of limitations on the Series tax returns remains open for the years ended October 31, 2011 through October 31, 2014. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
129
Notes to Financial Statements (continued)
2. | Significant Accounting Policies (continued) |
Foreign Taxes
Based on the Series understanding of the tax rules and rates related to income, gains and currency purchase/repatriation transactions for foreign jurisdictions in which they invest, the Series will provide for foreign taxes, and where appropriate, deferred foreign tax.
Distributions of Income and Gains
Distributions to shareholders of net investment income are made semi-annually. Distributions of net realized gains are made annually. An additional distribution may be necessary to avoid taxation of a Series. Distributions are recorded on the ex-dividend date.
Indemnifications
The Funds organizational documents provide former and current directors and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
3. | Transactions with Affiliates |
The Fund has an Investment Advisory Agreement (the Agreement) with the Advisor, for which each Series pays a fee, computed daily and payable monthly, at an annual rate of 0.60% for Pro-Blend® Conservative Term Series and 0.75% for Pro-Blend® Moderate Term Series, Pro-Blend® Extended Term Series and Pro-Blend® Maximum Term Series, of the Series average daily net assets.
Under the Agreement, personnel of the Advisor provide the Series with advice and assistance in the choice of investments and the execution of securities transactions, and otherwise maintain the Series organization. The Advisor also provides the Fund with necessary office space and fund administration and support services. The salaries of all officers of the Fund (except a percentage of the Funds Chief Compliance Officers salary, which is paid by the Fund), and of all Directors who are affiliated persons of the Fund, or of the Advisor, and all personnel of the Fund, or of the Advisor, performing services relating to research, statistical and investment activities, are paid by the Advisor. Each non-affiliated Director receives an annual stipend, which is allocated among all the active series of the Fund. In addition, these Directors also receive a fee per Board meeting attended plus a fee for each committee meeting attended and are reimbursed for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings. The Fund also has an Audit Committee Chair, who receives an additional annual stipend for this role.
Class S shares of each Series are subject to a shareholder services fee in accordance with a shareholder services plan adopted by the Funds Board. The shareholder services fee is intended to compensate financial intermediaries, including affiliates of the Fund, in connection with the provision of direct client service, personal services, maintenance of shareholder accounts and reporting services. For these services, Class S of each Series pays a fee, computed daily and payable monthly, at an annual rate of 0.20% for Pro-Blend® Conservative Term Series Class S and 0.25% for Pro-Blend® Moderate Term Series Class S, Pro-Blend® Extended Term Series Class S and Pro-Blend® Maximum Term Series Class S, of the Class average daily net assets. The Fund has a Shareholder Services Agreement with the Advisor, for which the Advisor receives the shareholder services fee as stated above.
130
Notes to Financial Statements (continued)
3. | Transactions with Affiliates (continued) |
The Advisor has contractually agreed, until at least February 29, 2016, to waive its management fee and, if necessary, pay other operating expenses of the Series in order to maintain total direct annual fund operating expenses for the Series, exclusive of shareholder services fees and distribution and service fees (12b-1), at no more than the amounts presented in the following table, of average daily net assets each year. Prior to November 20, 2013, the Advisor had voluntarily agreed to waive fees and reimburse expenses during the current fiscal year in order to keep total direct annual fund operating expenses for the Series, inclusive of shareholder services fees and distribution and service fees (12b-1), at no more than the amounts presented in the following table, of average daily net assets each year. The contractual limits during that period may have been higher.
SERIES/CLASS | EXPENSE LIMIT | |||
Pro-Blend® Conservative Term Series |
0.70 | % | ||
Pro-Blend® Moderate Term Series |
0.85 | % | ||
Pro-Blend® Extended Term Series |
0.85 | % | ||
Pro-Blend® Maximum Term Series |
0.85 | % |
The Advisor is not eligible to recoup any expenses that have been waived or reimbursed in prior years.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate of the Advisor, acts as distributor for the Funds shares. Each Series compensates the distributor for distributing and servicing the Series Class C and Class R shares pursuant to a distribution plan adopted under Rule 12b-1 of the 1940 Act, regardless of expenses actually incurred. Under the agreement, each Series pays distribution and services fees to the distributor at an annual rate of 1.00% of average daily net assets attributable to Class C shares and an annual rate of 0.50% of daily net assets attributable to Class R shares. There are no distribution and services fees on the Class S or Class I shares of each Series. The fees are accrued daily and paid monthly.
The Advisor has agreements with BNY Mellon Investment Servicing (U.S.) Inc. (BNY) under which BNY serves as sub-accountant services agent and sub-transfer agent. The Fund pays the Advisor an annual fee related to fund accounting and administration of 0.0175% on the first $3 billion of average daily net assets (excluding Target Series and Strategic Income Series); 0.015% on the next $3 billion of average daily net assets (excluding Target Series and Strategic Income Series); and 0.01% of the average daily net assets in excess of $6 billion (excluding Target Series and Strategic Income Series); plus a base fee of $25,500 per series. Transfer Agent fees are charged to the Fund on a per account basis. Additionally, certain transaction and cusip-based fees and out-of-pocket expenses, including charges for reporting relating to the Funds compliance program, are charged. Effective October 1, 2012, the aforementioned agreements were modified to reduce the annual fee related to fund accounting and administration, as well as transfer agent fees, by 10%, excluding out-of-pocket expenses, until at least October 1, 2015.
Expenses not directly attributable to a series are allocated based on each series relative net assets or number of accounts, depending on the expense.
4. | Purchases and Sales of Securities |
For the year ended October 31, 2014, purchases and sales of securities, other than short-term securities, were as follows:
SERIES | PURCHASES OTHER ISSUERS |
GOVERNMENT | SALES OTHER |
GOVERNMENT | ||||||||||||
Pro-Blend® Conservative Term Series |
$ | 347,134,126 | $ | 389,376,880 | $ | 414,122,210 | $ | 263,572,988 | ||||||||
Pro-Blend® Moderate Term Series |
421,802,491 | 469,693,132 | 576,390,509 | 266,058,329 | ||||||||||||
Pro-Blend® Extended Term Series |
688,549,159 | 425,761,536 | 729,831,066 | 312,448,201 | ||||||||||||
Pro-Blend® Maximum Term Series |
864,480,667 | 27,852,268 | 715,242,977 | 92,746,501 |
131
Notes to Financial Statements (continued)
5. | Capital Stock Transactions |
Transactions in Class S, Class I, Class C and Class R shares:
PRO-BLEND® CONSERVATIVE | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS S: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
24,111,688 | $ | 337,311,590 | 27,050,002 | $ | 372,713,290 | ||||||||||
Reinvested |
4,029,034 | 54,463,964 | 2,561,283 | 34,386,631 | ||||||||||||
Repurchased |
(20,938,169 | ) | (292,530,827 | ) | (28,677,650 | ) | (396,571,291 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
7,202,553 | $ | 99,244,727 | 933,635 | $ | 10,528,630 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® CONSERVATIVE | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS I: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
11,300,148 | $ | 125,008,931 | 13,062,245 | $ | 144,363,136 | ||||||||||
Reinvested |
1,358,752 | 14,529,320 | 751,296 | 8,103,809 | ||||||||||||
Repurchased |
(8,949,011 | ) | (98,758,675 | ) | (8,483,810 | ) | (94,070,475 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
3,709,889 | $ | 40,779,576 | 5,329,731 | $ | 58,396,470 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® CONSERVATIVE | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS C: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
5,058,603 | $ | 54,163,391 | 4,145,701 | $ | 44,420,354 | ||||||||||
Reinvested |
640,590 | 6,612,999 | 273,862 | 2,860,145 | ||||||||||||
Repurchased |
(2,105,463 | ) | (22,537,168 | ) | (1,818,299 | ) | (19,463,938 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
3,593,730 | $ | 38,239,222 | 2,601,264 | $ | 27,816,561 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® CONSERVATIVE | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS R: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
2,093,504 | $ | 22,290,753 | 2,682,830 | $ | 28,683,950 | ||||||||||
Reinvested |
317,817 | 3,280,242 | 145,064 | 1,512,686 | ||||||||||||
Repurchased |
(1,306,682 | ) | (13,992,988 | ) | (1,525,429 | ) | (16,379,144 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
1,104,639 | $ | 11,578,007 | 1,302,465 | $ | 13,817,492 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® MODERATE | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS S: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
12,680,276 | $ | 182,680,917 | 14,267,236 | $ | 197,220,579 | ||||||||||
Reinvested |
2,907,143 | 40,264,747 | 1,772,636 | 23,446,175 | ||||||||||||
Repurchased |
(16,004,216 | ) | (230,430,377 | ) | (14,628,387 | ) | (201,711,224 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
(416,797 | ) | $ | (7,484,713 | ) | 1,411,485 | $ | 18,955,530 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® MODERATE | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS I: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
19,694,870 | $ | 222,731,580 | 17,822,910 | $ | 195,401,918 | ||||||||||
Reinvested |
3,115,979 | 33,937,586 | 1,783,097 | 18,795,420 | ||||||||||||
Repurchased |
(12,780,618 | ) | (144,494,654 | ) | (13,005,509 | ) | (142,840,843 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
10,030,231 | $ | 112,174,512 | 6,600,498 | $ | 71,356,495 | ||||||||||
|
|
|
|
|
|
|
|
132
Notes to Financial Statements (continued)
5. | Capital Stock Transactions (continued) |
PRO-BLEND® MODERATE | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS C: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
4,301,003 | $ | 49,292,968 | 3,678,186 | $ | 40,811,017 | ||||||||||
Reinvested |
608,015 | 6,678,443 | 275,738 | 2,930,108 | ||||||||||||
Repurchased |
(1,462,084 | ) | (16,740,100 | ) | (1,862,292 | ) | (20,683,853 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
3,446,934 | $ | 39,231,311 | 2,091,632 | $ | 23,057,272 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® MODERATE | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS R: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
1,080,045 | $ | 12,734,322 | 1,550,770 | $ | 17,625,342 | ||||||||||
Reinvested |
255,514 | 2,896,168 | 142,562 | 1,560,402 | ||||||||||||
Repurchased |
(1,549,640 | ) | (18,646,733 | ) | (1,120,323 | ) | (12,826,064 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
(214,081 | ) | $ | (3,016,243 | ) | 573,009 | $ | 6,359,680 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® EXTENDED | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS S: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
11,995,408 | $ | 217,438,201 | 9,923,102 | $ | 167,544,175 | ||||||||||
Reinvested |
2,668,346 | 45,711,628 | 1,913,554 | 30,502,482 | ||||||||||||
Repurchased |
(12,280,290 | ) | (221,821,835 | ) | (16,031,300 | ) | (267,269,342 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
2,383,464 | $ | 41,327,994 | (4,194,644 | ) | $ | (69,222,685 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® EXTENDED | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS I: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
22,561,442 | $ | 250,874,157 | 21,092,223 | $ | 224,950,730 | ||||||||||
Reinvested |
2,733,619 | 29,059,194 | 1,477,410 | 15,144,117 | ||||||||||||
Repurchased |
(14,150,623 | ) | (157,274,035 | ) | (16,258,417 | ) | (175,313,005 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
11,144,438 | $ | 122,659,316 | 6,311,216 | $ | 64,781,842 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® EXTENDED | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS C: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
4,268,318 | $ | 50,672,730 | 3,422,909 | $ | 39,443,179 | ||||||||||
Reinvested |
892,662 | 10,037,173 | 414,031 | 4,467,195 | ||||||||||||
Repurchased |
(1,644,334 | ) | (19,647,132 | ) | (1,379,382 | ) | (15,841,552 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
3,516,646 | $ | 41,062,771 | 2,457,558 | $ | 28,068,822 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® EXTENDED | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS R: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
1,342,959 | $ | 16,929,729 | 2,173,917 | $ | 26,054,858 | ||||||||||
Reinvested |
391,474 | 4,643,822 | 191,062 | 2,163,617 | ||||||||||||
Repurchased |
(1,114,209 | ) | (14,099,563 | ) | (1,104,699 | ) | (13,260,429 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
620,224 | $ | 7,473,988 | 1,260,280 | $ | 14,958,046 | ||||||||||
|
|
|
|
|
|
|
|
133
Notes to Financial Statements (continued)
5. | Capital Stock Transactions (continued) |
PRO-BLEND® MAXIMUM | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS S: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
7,689,830 | $ | 158,704,114 | 5,219,708 | $ | 99,757,537 | ||||||||||
Reinvested |
2,378,506 | 45,823,693 | 540,999 | 9,389,515 | ||||||||||||
Repurchased |
(6,672,340 | ) | (137,649,981 | ) | (7,994,377 | ) | (150,241,757 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
3,395,996 | $ | 66,877,826 | (2,233,670 | ) | $ | (41,094,705 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® MAXIMUM | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS I: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
14,883,925 | $ | 182,722,744 | 9,953,438 | $ | 119,890,447 | ||||||||||
Reinvested |
2,360,157 | 27,326,606 | 467,438 | 5,184,567 | ||||||||||||
Repurchased |
(8,244,435 | ) | (101,467,299 | ) | (8,383,672 | ) | (98,322,076 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
8,999,647 | $ | 108,582,051 | 2,037,204 | $ | 26,752,938 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® MAXIMUM | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS C: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
1,597,486 | $ | 20,709,342 | 859,063 | $ | 10,954,031 | ||||||||||
Reinvested |
389,379 | 4,701,150 | 55,571 | 636,289 | ||||||||||||
Repurchased |
(372,809 | ) | (4,857,191 | ) | (271,074 | ) | (3,369,507 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
1,614,056 | $ | 20,553,301 | 643,560 | $ | 8,220,813 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
PRO-BLEND® MAXIMUM | FOR THE YEAR ENDED 10/31/14 | FOR THE YEAR ENDED 10/31/13 | ||||||||||||||
TERM SERIES CLASS R: | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Sold |
698,379 | $ | 10,253,765 | 1,267,093 | $ | 17,719,167 | ||||||||||
Reinvested |
279,080 | 3,803,728 | 38,460 | 489,364 | ||||||||||||
Repurchased |
(541,311 | ) | (8,033,276 | ) | (545,475 | ) | (7,549,847 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
436,148 | $ | 6,024,217 | 760,078 | $ | 10,658,684 | ||||||||||
|
|
|
|
|
|
|
|
At October 31, 2014, the retirement plan of the Advisor and its affiliates owned the following:
SERIES | SHARES OWNED |
PERCENTAGE OF SERIES SHARES OUTSTANDING |
VALUE | |||||||||
Pro-Blend® Conservative Term Series |
121,623 | 0.1 | % | $ | 1,358,534 | |||||||
Pro-Blend® Moderate Term Series |
178,479 | 0.1 | % | $ | 2,034,660 | |||||||
Pro-Blend® Extended Term Series |
2,166,519 | 1.7 | % | $ | 24,481,660 | |||||||
Pro-Blend® Maximum Term Series |
1,815,303 | 2.4 | % | $ | 22,709,442 |
In addition, one shareholder owned 15,179,818 shares of Pro-Blend® Moderate Term Series (11.3% of shares outstanding) valued at $173,049,924. The Target 2040 Series, another series of the Fund, owned 8,530,895 shares of Pro-Blend® Maximum Term Series (11.2% of shares outstanding) valued at $106,721,501. The Target 2030 Series, another series of the Fund, owned 12,833,053 shares of Pro-Blend Extended® Term Series (10.3% of shares outstanding) valued at $145,013,498. Investment activities of these shareholders may have a material effect on the Series.
134
Notes to Financial Statements (continued)
6. | Financial Instruments |
The Series may trade in instruments including written and purchased options, forward foreign currency exchange contracts and futures contracts and other derivatives in the normal course of investing activities to assist in managing exposure to various market risks. The Series may be subject to various elements of risk which may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. These risks include: the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index; counterparty credit risk related to over the counter derivative counterparties failure to perform under contract terms; liquidity risk related to the lack of a liquid market for these contracts allowing the fund to close out its position(s); and documentation risk relating to disagreement over contract terms. At October 31, 2014, Pro-Blend® Conservative Term Series, Pro-Blend® Moderate Term Series and Pro-Blend® Extended Term Series invested in futures contracts (interest rate risk) and written options (equity risk).
7. | Foreign Securities |
Investing in securities of foreign companies and foreign governments involves special risks and considerations not typically associated with investing in securities of domestic companies and the U.S. Government. These risks include revaluation of currencies and future adverse political and economic developments. Moreover, securities of foreign companies and foreign governments and their markets may be less liquid and their prices more volatile than those of comparable domestic companies and the U.S. Government.
8. | Federal Income Tax Information |
The amount and characterization of certain income and capital gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments in the timing of the recognition on net investment income or gains and losses, including foreign currency gains and losses, losses deferred due to wash sales, investments in passive foreign investment companies (PFICs) and real estate investment trusts. The Series may periodically make reclassifications among its capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations, without impacting the Series net asset value. For the fiscal year ended October 31, 2014, $232,476, $40,018, $12,995, and 11,679 was reclassified within the capital accounts from Undistributed Net Investment Income to Accumulated Net Realized Gain on Investments for Pro-Blend® Conservative Term Series, Pro-Blend® Moderate Term Series, Pro-Blend® Extended Term Series and Pro-Blend® Maximum Term Series, respectively. Any such reclassifications are not reflected in the financial highlights.
The tax character of distributions paid were as follows:
PRO-BLEND® CONSERVATIVE TERM SERIES |
PRO-BLEND® MODERATE TERM SERIES |
|||||||||||||||
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||||||||
Ordinary income |
$ | 36,420,340 | $ | 27,273,142 | $ | 32,886,292 | $ | 21,788,120 | ||||||||
Long-term capital gains |
53,877,818 | 25,309,586 | 60,113,225 | 29,266,732 |
PRO-BLEND® EXTENDED TERM SERIES |
PRO-BLEND® MAXIMUM TERM SERIES |
|||||||||||||||
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
FOR THE YEAR ENDED 10/31/14 |
FOR THE YEAR ENDED 10/31/13 |
|||||||||||||
Ordinary income |
$ | 32,878,668 | $ | 23,251,190 | $ | 34,431,429 | $ | 3,432,482 | ||||||||
Long-term capital gains |
80,703,421 | 40,601,811 | 81,514,501 | 18,413,216 |
135
Notes to Financial Statements (continued)
8. | Federal Income Tax Information (continued) |
At October 31, 2014, the tax basis of components of distributable earnings and the net unrealized appreciation based on the identified cost of investments for federal income tax purposes were as follows:
PRO-BLEND® CONSERVATIVE TERM SERIES |
PRO-BLEND® TERM SERIES |
PRO-BLEND® TERM SERIES |
PRO-BLEND® TERM SERIES |
|||||||||||||
Cost for federal income tax purposes |
$ | 1,584,169,742 | $ | 1,594,282,246 | $ | 1,631,444,029 | $ | 1,121,711,323 | ||||||||
Unrealized appreciation |
88,558,326 | 135,143,190 | 164,518,976 | 116,888,429 | ||||||||||||
Unrealized depreciation |
(26,119,645 | ) | (43,816,889 | ) | (51,666,162 | ) | (46,034,287 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net unrealized appreciation |
$ | 62,438,681 | $ | 91,326,301 | $ | 112,852,814 | $ | 70,854,142 | ||||||||
Undistributed ordinary income |
25,257,937 | 25,929,994 | 36,044,277 | 48,261,162 | ||||||||||||
Undistributed long-term gains |
66,644,982 | 113,630,947 | 141,328,609 | 112,286,227 |
136
Report of Independent Registered Public Accounting Firm
To the Board of Directors of Manning & Napier Fund, Inc. and Shareholders of - Pro-Blend® Conservative Term Series, Pro-Blend® Moderate Term Series, Pro-Blend® Extended Term Series and Pro-Blend® Maximum Term Series:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Pro-Blend® Conservative Term Series, Pro-Blend® Moderate Term Series, Pro-Blend® Extended Term Series and Pro-Blend® Maximum Term Series (each a series of Manning & Napier Fund, Inc., hereafter collectively referred to as the Series) at October 31, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Series management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
New York, New York
December 19, 2014
137
Supplemental Tax Information
(unaudited)
All reportings are based on financial information available as of the date of this annual report and, accordingly, are subject to change.
For federal income tax purposes, each of the Series reports for the current fiscal year the amount disclosed below or, if different, the maximum amount allowable under the tax law as qualified dividend income (QDI).
Series | QDI | |||
Pro-Blend® Conservative Term Series |
$ | 9,645,694 | ||
Pro-Blend® Moderate Term Series |
10,738,215 | |||
Pro-Blend® Extended Term Series |
14,135,227 | |||
Pro-Blend® Maximum Term Series |
13,118,959 |
For corporate shareholders, the percentage of investment income (dividend income plus short-term gain, if any) that qualifies for the dividends received deduction (DRD) for the current fiscal year is as follows:
Series | DRD% | |||
Pro-Blend® Conservative Term Series |
16.52 | % | ||
Pro-Blend® Moderate Term Series |
14.90 | % | ||
Pro-Blend® Extended Term Series |
18.80 | % | ||
Pro-Blend® Maximum Term Series |
16.00 | % |
The Series designate Long-Term Capital Gain dividends pursuant to Section 852(b)(3) of the Code for the fiscal year ended October 31, 2014 as follows:
Series | ||||
Pro-Blend® Conservative Term Series |
$ | 70,409,043 | ||
Pro-Blend® Moderate Term Series |
119,484,952 | |||
Pro-Blend® Extended Term Series |
148,583,047 | |||
Pro-Blend® Maximum Term Series |
117,987,990 |
138
Directors and Officers Information
(unaudited)
The Statement of Additional Information provides additional information about the Funds directors and officers and can be obtained without charge by calling 1-800-466-3863, at www.manningnapieradvisors.com, or on the EDGAR Database on the SEC Internet web site (http:// www.sec.gov). The following chart shows certain information about the Funds officers and directors, including their principal occupations during the last five years. Unless specific dates are provided, the individuals have held the listed positions for longer than five years.
Interested Director/Officer
Name: |
B. Reuben Auspitz* | |
Address: | 290 Woodcliff Drive Fairport, NY 14450 | |
Age: | 67 | |
Current Position(s) Held with Fund: | Principal Executive Officer, President, Chairman & Director | |
Term of Office1 & Length of Time Served: | Indefinite - Director since 1984; Principal Executive Officer since 2002; President since 2004; Vice President 1984-2003. | |
Principal Occupation(s) During Past 5 Years: | Executive Vice President since 1993; Chief Compliance Officer since 2004; Vice Chairman since June 2010; Co-Executive Director from 2002-2010 - Manning & Napier Advisors, LLC; President, Director - Manning & Napier Investor Services, Inc. Holds or has held one or more of the following titles for various subsidiaries and affiliates: President, Vice President, Director, Chairman, Treasurer, Chief Compliance Officer or Member. | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Independent Directors
Name: | Stephen B. Ashley | |
Address: | 290 Woodcliff Drive Fairport, NY 14450 | |
Age: | 74 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1996 | |
Principal Occupation(s) During Past 5 Years: | Chairman, Director, President & Chief Executive Officer, The Ashley Group (property management and investment). Director 1995-2008 and Chairman (non-executive) 2004-2008 - Fannie Mae (mortgage) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Fannie Mae (1995-2008) The Ashley Group (1995-2008) Genesee Corporation (1987-2007) | |
Name: | Paul A. Brooke | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 68 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 2007 | |
Principal Occupation(s) During Past 5 Years: | Chairman & CEO (2005-2009) - Alsius Corporation (investments); Managing Member, PMSV Holdings LLC (investments) since 1991; Managing Member, Venbio (investments) since 2010. | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Incyte Corp. (2000-present) ViroPharma, Inc. (2000-present) HLTH Corp (WebMD) (2000-2010) Cheyne Capital International (2000-present) MPM Bio-equities (2000-2009) GMP Companies (2000-present) HoustonPharma (2000-2009) Cytos Biotechnology Ltd. (2012-present) |
139
Directors and Officers Information
(unaudited)
Independent Directors (continued)
Name: | Peter L. Faber | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 76 | |
Current Position(s) Held with Fund: | Director, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1987 | |
Principal Occupation(s) During Past 5 Years: | Senior Counsel (2006-2012), Partner (1995-2006 & 2013-present) - McDermott, Will & Emery LLP (law firm) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | Partnership for New York City, Inc. (non-profit) (1989-2010) New York Collegium (non-profit) (2004-2011) Boston Early Music Festival (non-profit) | |
Name: | Harris H. Rusitzky | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 79 | |
Current Position(s) Held with Fund: | Director, Audit Committee Member, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 1985 | |
Principal Occupation(s) During Past 5 Years: | President, The Greening Group (business consultants) since 1994; Partner, The Restaurant Group (restaurants) since 2006 | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Chester N. Watson | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 64 | |
Current Position(s) Held with Fund: | Director, Audit Committee Chairman, Governance & Nominating Committee Member | |
Term of Office & Length of Time Served: | Indefinite - Since 2012 | |
Principal Occupation(s) During Past 5 Years: | General Auditor (2003-2011) - General Motors Company (auto manufacturer) | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
Officers
Name: | Jeffrey S. Coons, Ph.D., CFA | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 51 | |
Current Position(s) Held with Fund: | Vice President | |
Term of Office1 & Length of Time Served: | Since 2004 | |
Principal Occupation(s) During Past 5 Years: | President since 2010, Co-Director of Research since 2002 - Manning & Napier Advisors, LLC Holds one or more of the following titles for various subsidiaries and affiliates: President, Director, Treasurer or Senior Trust Officer. | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Elizabeth Craig | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 27 | |
Current Position(s) Held with Fund: | Assistant Corporate Secretary | |
Term of Office1 & Length of Time Served: | Since 2011 | |
Principal Occupation(s) During Past 5 Years: | Mutual Fund Compliance Specialist since 2009 - Manning & Napier Advisors, LLC | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
140
Directors and Officers Information
(unaudited)
Officers (continued)
Name: | Christine Glavin | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 48 | |
Current Position(s) Held with Fund: | Principal Financial Officer, Chief Financial Officer | |
Term of Office1 & Length of Time Served: | Principal Financial Officer since 2002; Chief Financial Officer since 2001 | |
Principal Occupation(s) During Past 5 Years: | Director of Fund Reporting since 2011; Fund Reporting Manager (1997-2011) - Manning & Napier Advisors, LLC; Assistant Treasurer since 2008 - Exeter Trust Company | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Jodi L. Hedberg | |
Address: | 290 Woodcliff Drive | |
Fairport, NY 14450 | ||
Age: | 46 | |
Current Position(s) Held with Fund: | Corporate Secretary, Chief Compliance Officer, Anti-Money Laundering Compliance Officer | |
Term of Office1 & Length of Time Served: | Corporate Secretary since 1997; Chief Compliance Officer since 2004; Anti-Money Laundering Compliance Officer | |
Principal Occupation(s) During Past 5 Years: | Director of Compliance, Manning & Napier Advisors, LLC and affiliates since 1990 (title change in 2005 from Compliance Manager to Director of Compliance); Corporate Secretary, Manning & Napier Investor Services, Inc. since 2006 | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A | |
Name: | Richard Yates | |
Address: | 290 Woodcliff Drive Fairport, NY 14450 | |
Age: | 49 | |
Current Position(s) Held with Fund: | Chief Legal Officer | |
Term of Office1 & Length of Time Served: | Chief Legal Officer since 2004 | |
Principal Occupation(s) During Past 5 Years: | Counsel - Manning & Napier Advisors, LLC and affiliates since 2000; Holds one or more of the following titles for various affiliates; Director or Corporate Secretary | |
Number of Portfolios Overseen within Fund Complex: | 42 | |
Other Directorships Held Outside Fund Complex: | N/A |
*Interested Director, within the meaning of the Investment Company Act of 1940 by reason of his position with the Funds investment advisor and distributor. Mr. Auspitz serves as the Executive Vice President and Director, Manning & Napier Advisors, LLC and President and Director, Manning & Napier Investor Services, Inc., the Funds distributor.
1The term of office of all officers shall be one year and until their respective successors are chosen and qualified, or his or her earlier resignation or removal as provided in the Funds By-Laws.
141
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142
Literature Requests
(unaudited)
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the Securities and Exchange | ||||
Commissions (SEC) web site | http://www.sec.gov |
Proxy Voting Record
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
Quarterly Portfolio Holdings
The Series complete schedule of portfolio holdings for the 1st and 3rd quarters of each fiscal year are provided on Form N-Q, and are available, without charge, upon request:
By phone | 1-800-466-3863 | |||
On the SECs web site | http://www.sec.gov |
The Series Form N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Prospectus and Statement of Additional Information (SAI)
For more information about any of the Manning & Napier Fund, Inc. Series, you may obtain a prospectus and SAI at www.manning-napier.com or by calling (800) 466-3863. Before investing, carefully consider the objectives, risks, charges and expenses of the investment and read the prospectus carefully as it contains this and other information about the investment company. In addition, this information can be found on the SECs web site, http://www.sec.gov.
Additional information available at www.manning-napier.com
1. Fund Holdings - Month-End
2. Fund Holdings - Quarter-End
3. Shareholder Report - Annual
4. Shareholder Report - Semi-Annual
The Fund also offers electronic notification or e-delivery when certain documents are available on-line to be downloaded or reviewed.
Direct shareholders can elect to receive electronic notification when shareholder reports, prospectus updates, and/or quarterly statements are available. If you do not currently have on-line access to your account, you can establish access by going
to www.manning-napier.com, click on Login in the top corner of the page, and follow the prompts to self-enroll. Once enrolled, you can set your electronic notification preferences by clicking on the Account Options tab located within the
green toolbar and then select E-Delivery Option. Should you have any questions on either how to establish on-line access or how to update your account settings, please contact Investor Services at
1-800-466-3863.
The Manning & Napier Fund, Inc. is managed by Manning & Napier Advisors, LLC. Manning & Napier Investor Services, Inc., an affiliate of Manning & Napier Advisors, LLC, is the distributor of the Fund shares.
MNPRO-10/14-AR
ITEM 2: CODE OF ETHICS
(a) The registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer and principal
accounting officer. A copy of the registrants code of ethics is filed herewith as
Exhibit 12(a)(1).
(b) During the period covered by this report, no amendments were made to the provisions of the code of ethics adopted in 2 (a) above.
(c) During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics adopted in 2 (a) above were granted.
(d) Not applicable to the registrant due to the response given in 2 (c) above.
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT
All of the members of the Audit committee have been determined by the Registrants Board of Directors to be Audit Committee Financial Experts as defined in this item. The current members of the Audit Committee are: Stephen B. Ashley, Paul A. Brooke, Harris H. Rusitzky, and Chester N. Watson. All Audit Committee members are independent under applicable rules. This designation will not increase the designees duties, obligations or liability as compared to their duties, obligations and liability as a member of the Audit Committee and of the Board.
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES
Principal Accountant Fees and Services
Aggregate fees for professional services rendered for the Manning & Napier Fund, Inc. (Pro-Blend® Conservative Term Series, Pro-Blend® Moderate Term Series, Pro-Blend® Extended Term Series, Pro-Blend® Maximum Term Series, Tax Managed Series, Equity Series, Overseas Series, Dividend Focus Series, Target Income Series, Target 2010 Series, Target 2015 Series, Target 2020 Series, Target 2025 Series, Target 2030 Series, Target 2035 Series, Target 2040 Series, Target 2045 Series, Target 2050 Series, and Target 2055 Series, collectively the Fund) by PricewaterhouseCoopers LLP (PwC) as of and for the years ended October 31, 2014 and 2013 were:
2014 | 2013 | |||||||
|
|
|||||||
Audit Fees (a) |
$402,710 | $379,471 | ||||||
Audit Related Fees (b) |
$0 | $0 |
Tax Fees (c) |
$118,510 | $113,320 | ||||||
All Other Fees (d) |
$0 | $0 | ||||||
|
|
|||||||
$521,220 | $492,791 | |||||||
|
|
(a) | Audit Fees |
These fees relate to professional services rendered by PwC for the audit of the Funds annual financial statements or services normally provided by the accountant in connection with statutory and regulatory filing or engagements. These services include the audits of the financial statements of the Fund, issuance of consents, income tax provision procedures and assistance with review of documents filed with the SEC.
(b) | Audit-Related Fees |
These fees relate to assurance and related services by PwC that are reasonably related to the performance of the audit of the Funds financial statements and are not reported under Audit Fees above.
(c) | Tax Fees |
These fees relate to professional services rendered by PwC for tax compliance, tax advice and tax planning. The tax services provided by PwC related to the review of the Funds federal and state income tax returns, excise tax calculations and returns, a review of the Funds calculations of capital gain and income distributions, and additional tax research for compliance purposes.
(d) | All Other Fees |
These fees relate to products and services provided by PwC other than those reported above under Audit Fees, Audit-Related Fees, and Tax Fees above.
There were no amounts that were approved by the Audit Committee pursuant to the de minimus exception (Rule 2-01(c)(7) of Regulation S-X) for the fiscal years ended October 31, 2014 and 2013.
Non-Audit Services to the Funds Service Affiliates that were Pre-Approved by the Funds Audit Committee
The Funds Audit Committee is required to pre-approve non-audit services which meet both the following criteria:
i) | Directly relate to the Funds operations and financial reporting; and |
ii) | Rendered by PwC to the Funds advisor, Manning & Napier Advisors, LLC, and entities in a control relationship with the advisor (service affiliate) that provide ongoing services to the Fund. For purposes of disclosure, Manning & Napier Investor Services, Inc. is considered to be a service affiliate. |
2014 | 2013 | |||||||
|
|
|||||||
Audit Related Fees |
$1,944 | $1,944 | ||||||
Tax Fees |
$0 | $0 | ||||||
|
|
|||||||
$1,944 | $1,944 | |||||||
|
|
The Audit Related fees for the years ended October 31, 2014 and 2013 were for a license for proprietary authoritative financial reporting and assurance literature library software.
There were no amounts that were approved by the Audit Committee pursuant to the de minimus exception (Rule 2-01(c)(7) of Regulation S-X) for the fiscal years ended October 31, 2014 and 2013.
Aggregate Fees
Aggregate fees billed to the Fund for non-audit services for 2014 and 2013 were $118,510 and $113,320, respectively. Aggregate fees billed to the Funds advisor and service affiliates for non-audit services were $1,944 and $1,944, respectively. These amounts include fees for non-audit services required to be pre-approved and fees for non-audit services that did not require pre-approval since they did not relate to the Funds operations and financial reporting.
The Funds Audit Committee has considered whether the provisions for non-audit services to the Funds advisor and service affiliates, which did not require pre-approval, are compatible with maintaining PwCs independence.
ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6: INVESTMENTS
(a) | See Investment Portfolios under Item 1 on this Form N-CSR. |
(b) | Not applicable. |
ITEM 7: | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
Not applicable.
ITEM 8: PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 9: | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
Not applicable.
ITEM 10: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedure by which shareholders may recommend nominees to the registrants board of directors.
ITEM 11: CONTROLS AND PROCEDURES
(a) Based on their evaluation of the Funds disclosure controls and procedures, as of a date within 90 days of the filing date, the Funds Principal Executive Officer and Principal Financial Officer have concluded that the Funds disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to the Funds officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.
(b) During the second fiscal quarter of the period covered by this report, there have been no changes in the Funds internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, the Funds internal control over financial reporting.
ITEM 12: EXHIBITS
(a)(1) |
Code of ethics that is subject to the disclosure of Item 2 above. | |
(a)(2) |
Separate certifications for the Registrants principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached as EX-99.CERT. | |
(a)(3) |
Not applicable. | |
(b) |
A certification of the Registrants principal executive officer and principal financial officer, as required by 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, is attached as EX-99.906CERT. The certification furnished pursuant to this paragraph is not deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certification is not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference. | |
(12.other) |
Not applicable. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Manning & Napier Fund, Inc.
/s/ B. Reuben Auspitz
B. Reuben Auspitz
President & Principal Executive Officer of Manning & Napier Fund, Inc.
Date: December 26, 2014
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ B. Reuben Auspitz |
B. Reuben Auspitz |
President & Principal Executive Officer of Manning & Napier Fund, Inc. |
Date: December 26, 2014 |
/s/ Christine Glavin |
Christine Glavin |
Chief Financial Officer & Principal Financial Officer of Manning & Napier Fund, Inc. |
Date: December 26, 2014 |
EX-99.CODE ETH
EXETER FUND, INC.
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
PRINCIPAL FINANCIAL OFFICERS
I. | Covered Officers/Purpose of the Code |
Exeter Fund, Inc. (the Company or the Fund) code of ethics (this Code) applies to the Companys Principal Executive Officer (CEO) and Principal Financial Officer (CFO) (the Covered Officers each of whom are set forth in Exhibit A) for the purpose of meeting the standards of the Company for:
| honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; |
| full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission (SEC) and in other public communications made by the Company; |
| compliance with applicable laws and governmental rules and regulations; |
| the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and |
| accountability for adherence to the Code. |
Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.1
II. | Covered Officers Should Handle Actual and Apparent Conflicts of Interest Ethically |
Overview. A conflict of interest occurs when a Covered Officers private interest interferes with the interests of, or his or her service to, the Company. For example, a conflict of interest would arise if a Covered Officer, or a member of his or her family, receives improper personal benefits as a result of his or her position in the Company.
1 | Item 2 of Form N-CSR requires a registered investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so. The registrant must also: (1) file with the SEC a copy of the code as an exhibit to its annual report; (2) post the text of the code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which such request may be made. Disclosure is also required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrants annual report on Form N-CSR or on its website. If the registrant intends to satisfy the requirement to disclose amendments and waivers by posting such information on its website, it will be required to disclose its Internet address and this intention. |
Certain conflicts of interest arise out of the relationships between Covered Officers and the Company and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (the Act). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property held by the Fund) with the Company because of their status as affiliated persons of the Company. Each Covered Officer is an employee of the Companys Investment Advisor (Investment Advisor). The Companys and the Investment Advisors compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.
Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between the Company and the Investment Advisor of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Company or for the Investment Advisor, or for both), be involved in establishing policies and implementing decisions which will have different effects on the Investment Advisor and the Company. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Company and the Investment Advisor and is consistent with the performance by the Covered Officers of their duties as officers of the Company. Thus, if performed in conformity with the provisions of the Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Board of Directors of the Company (the Board) that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other Codes.
Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Company.
Each Covered Officer must:
| not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Company whereby the Covered Officer would benefit personally to the detriment of the Company; |
| not cause the Company to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than for the benefit of the Company; |
| not retaliate against any employee or Covered Officer or affiliated persons for reports of potential violations that are made in good faith; |
| comply with the Companys 17j-1 Code of Ethics. |
- 2 -
There are some potential conflict of interest situations that the Covered Officer will need to discuss with the Companys Chief Legal Officer, and/or Companys Outside counsel. Examples of these include:2
| service as a director on the board of any public or private company; |
| the receipt of any non-nominal gifts (i.e. in excess of $100) from people who have business dealings or prospective business dealings with the Company; |
| the receipt of any entertainment from any company with which the Company has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; |
| any ownership interest in, or any consulting or employment relationship with, any of the Companys service providers, other than its Investment Adviser, principal underwriter, administrator or any affiliated person thereof; |
| effecting portfolio transactions or selling or redeeming shares that result in a direct or indirect financial interest by virtue of such Covered Officer being an interested party (other than an interest arising from the Covered Officers employment, such as compensation or equity ownership). |
III. | Disclosure & Compliance |
A. Disclosure
| Each Covered Officer should familiarize him or herself with the disclosure requirements generally applicable to the Company; |
| Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Company to others, whether within or outside the Company, including to the Companys directors and auditors, and to governmental regulators and self-regulatory organizations; |
| Each Covered Officer should not knowingly permit the preparation or filing of any financial statement which (i) contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered or (ii) does not fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Company as of, and for, the periods presented in such financial statement; |
B. Compliance
| Each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Company and the Companys Investment Adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Company files with, or submit to, the SEC and in other public communications made by the Company; and |
| It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. |
2 | Any activity or relationship that would present a conflict for a Covered Officer would likely also present a conflict for the Covered Officer if a member of the Covered Officers immediate family engages in such an activity or has such a relationship. |
- 3 -
IV. | Reporting and Accountability |
Each Covered Officer must:
| upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he or she has received, read, and understands the Code; |
| annually thereafter affirm to the Board that he or she has complied with the requirements of the Code; and |
| notify the Chief Legal Officer promptly if he or she knows of any violation of this Code. Failure to do so is itself a violation of this Code. |
The Chief Legal Officer is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation with the assistance of outside counsel, if deemed necessary. However, any approvals or waivers3 sought by the Covered Officers will be pre-approved by the Audit Committee of the Board (the Committee).
The Company will follow these procedures in investigating and enforcing this Code:
| the Chief Legal Officer will take all appropriate action to investigate any potential violations reported to him or her; |
| if, after such investigation, the Chief Legal Officer believes that no violation has occurred, the Chief Legal Officer is not required to take any further action; |
| any matter that the Chief Legal Officer believes is a violation will be reported to the Committee; |
| if the Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures, notification to appropriate personnel of the Investment Advisor or its board; |
| the Committee will be responsible for granting waivers, as appropriate; and |
| any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules. |
3 | Item 2 of Form N-CSR defines waiver as the approval by the registrant of a material departure from a provision of the code of ethics and implicit waiver, which must also be disclosed, as the registrants failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer of the registrant. |
- 4 -
V. | Other Policies and Procedures |
This Code shall be the sole code of ethics adopted by the Company for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Company, the Investment Adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superceded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Companys, Investment Advisers, principal underwriters and service providers codes of ethics under Rule 17j-1 under the Act and the Investment Advisers more detailed policies and procedures are separate requirements applying to the Covered Officers and others, and are not part of this Code.
VI. | Amendments |
Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Companys board, including a majority of independent directors.
VII. | Confidentiality |
All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the appropriate Board and its counsel, and the Investment Adviser.
VIII. | Internal Use |
The Code is intended solely for the internal use by the Company and does not constitute an admission, by or on behalf of any Company, as to any fact, circumstance, or legal conclusion.
Date: November 2004
- 5 -
Amended Exhibit A
Persons Covered by Manning & Napier Fund Principal Executive and Financial Officers
Code of Ethics
Effective as of November 2013
Officer Title |
Officer Name | |
President (Principal Executive Officer) |
B. Reuben Auspitz | |
Chief Financial Officer (Principal Financial Officer) |
Christine Glavin | |
Chief Legal Officer |
Richard B. Yates |
- 6 -
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
PRINCIPAL FINANCIAL OFFICERS
The undersigned hereby affirm to the Board of Directors of the Exeter Fund, Inc. that they have received, read and understand the Code of Ethics for Principal Executive and Principal Financial Officers.
/s/ B. Reuben Auspitz
B. Reuben Auspitz
/s/ Christine Glavin
Christine Glavin
Dated: November 8, 2004
- 7 -
Certification
I, B. Reuben Auspitz, certify that:
1. | I have reviewed this report on Form N-CSR of Pro-Blend® Conservative Term Series, Pro-Blend® Moderate Term Series, Pro-Blend® Extended Term Series, Pro-Blend® Maximum Term Series, Tax Managed Series, Equity Series, Overseas Series, Dividend Focus Series, Target Income Series, Target 2010 Series, Target 2015 Series, Target 2020 Series, Target 2025 Series, Target 2030 Series, Target 2035 Series, Target 2040 Series, Target 2045 Series, Target 2050 Series, and Target 2055 Series, each a series of Manning & Napier Fund, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure |
controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: December 26, 2014 |
/s/ B. Reuben Auspitz | |||
|
B. Reuben Auspitz | |||
President & Principal Executive Officer of Manning | ||||
& Napier Fund, Inc. |
Certification
I, Christine Glavin, certify that:
1. | I have reviewed this report on Form N-CSR of Pro-Blend® Conservative Term Series, Pro-Blend® Moderate Term Series, Pro-Blend® Extended Term Series, Pro-Blend® Maximum Term Series, Tax Managed Series, Equity Series, Overseas Series, Dividend Focus Series, Target Income Series, Target 2010 Series, Target 2015 Series, Target 2020 Series, Target 2025 Series, Target 2030 Series, Target 2035 Series, Target 2040 Series, Target 2045 Series, Target 2050 Series, and Target 2055 Series, each a series of Manning & Napier Fund, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure |
controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: December 26, 2014 |
/s/ Christine Glavin | |||
Christine Glavin | ||||
Chief Financial Officer & Principal Financial | ||||
Officer of Manning & Napier Fund, Inc. |
CERTIFICATION
B. Reuben Auspitz, Chief Executive Officer, and Christine Glavin, Chief Financial Officer of Manning & Napier Fund, Inc. (the Registrant), each certify to the best of his or her knowledge that:
1. | The Registrants periodic report on Form N-CSR for the period ended October 31, 2014 (the Form N-CSR) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Chief Executive Officer Manning & Napier Fund, Inc. |
Chief Financial Officer Manning & Napier Fund, Inc. | |
/s/ B. Reuben Auspitz |
/s/ Christine Glavin | |
B. Reuben Auspitz Date: December 26, 2014 |
Christine Glavin Date: December 26, 2014 |
A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Manning & Napier Fund, Inc. and will be retained by Manning & Napier Fund, Inc. and furnished to the Securities and Exchange Commission (the Commission) or its staff upon request.
This certification is being furnished to the Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.
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