Our 2025 Mid-Year Update

Manning & Napier's mid-year update indicates that while the S&P 500 and Nasdaq are modestly up year-to-date and approaching record highs, non-US equities have significantly outperformed US equities, driven in part by a weaker USD. The firm, founded in 1970, offers a range of investment solutions and consultative services to a diverse client base including high-net-worth individuals and institutions, focusing on customized solutions that address client-specific problems.

Analysis

Manning & Napier's mid-year update outlines a nuanced market landscape observed as we approach the year's midpoint. The firm notes that the year began with slowing economic growth in the US, yet major US equity indices, specifically the S&P 500 and Nasdaq, are modestly up year-to-date and are nearing record high levels. A significant trend highlighted is the substantial outperformance of non-US equities compared to US equities, a shift attributed in part to a considerable depreciation of the US dollar. This market assessment carries a mixed general sentiment score of 0.1 and a low market impact score of 0.1, indicating that the observations reflect ongoing market dynamics rather than presenting a strong new catalyst. Manning & Napier (NYSE: MN), the provider of this update and an investment solutions firm founded in 1970, itself has a neutral sentiment score of 0.0 in the context of this report, reinforcing the observational nature of the commentary.

Key Decisions for Investors

• Investors should review their portfolio's geographic asset allocation, considering the reported significant outperformance of non-US equities and the role of US dollar weakness in this trend.
• Given that US equity indices are approaching record highs despite earlier reports of slowing US economic growth, it is prudent to closely monitor leading economic indicators and market breadth for signs of divergence or confirmation.
• The impact of currency movements on international equity returns remains a key factor; therefore, investors should continue to assess foreign exchange risks and opportunities within their global investment strategy.