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.
- 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.