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SMA Inception Date: 6/30/2006
Objective: Seeks long-term capital appreciation

Why Choose This SMA?

  • To pursue potentially strong risk-adjusted returns from a research-driven value strategy.
  • To gain exposure to undervalued mid-cap companies.

Investment Strategy

  • 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.

Portfolio Managers

Dennis G. Alff, CFA®, CPA

Senior Portfolio Manager of Equity Investments

Chad D. Fargason, PhD

Senior Portfolio Manager

Investment Risks: All securities are subject to risk, including possible loss of principal. Please read the risks associated with each investment prior to investing. Detailed discussions of each investment’s risks are included in Part 2A of each firm's respective Form ADV. The investments highlighted in this presentation may be subject to certain additional risks. The views and opinions expressed may change based on market and other conditions. This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary. This document may contain references to third party copyrights, indexes, and trademarks, each of which is the property of its respective owner. Such owner is not affiliated with Natixis Investment Managers or any of its related or affiliated companies (collectively “Natixis”) and does not sponsor, endorse or participate in the provision of any Natixis services, funds or other financial products. The index information contained herein is derived from third parties and is provided on an “as is” basis. The user of this information assumes the entire risk of use of this information. Each of the third party entities involved in compiling, computing or creating index information disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to such information.

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