SMA Inception Date: 12/31/1999
Objective: Seeks capital appreciation.
Why Choose This SMA?
- To pursue potentially strong risk-adjusted returns from small-cap value stocks.
- As a core US small-cap value holding.
- Vaughan Nelson seeks to take advantage of temporary information and marketplace inefficiencies across the market capitalization range to find opportunities to invest in companies at valuations materially below their long-term intrinsic value.
- Managers follow a research-intensive process emphasizing balance sheets and cash flow-based projections.
- The investment team defines value in three ways – as undervalued earnings growth, assets, or dividend yield – and seeks to diversify across company types.
- Undervalued Earnings Growth – Future redeployment of capital is not reflected in current valuation.
- Undervalued Assets – Companies priced at a discount to asset value that have an identifiable catalyst with the ability to close the valuation gap.
- Undervalued Dividend Yield – Companies with a high, stable dividend and minimal perceived downside risk.