SMA Inception Date: 06/1/2008
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- and small-cap companies

Investment Strategy

  • Vaughan Nelson seeks to take advantage of temporary information and marketplace inefficiencies in the small to mid-cap universe 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 team defines value in three ways and seeks to diversify across company types:
  • Undervalued Growth
    • Earning positive return on capital
    • Stable-to-improving returns
    • Not paying for future growth
    Undervalued Assets
    • Priced at a discount to asset value
    • Identifiable catalyst with ability to close valuation gap
    Undervalued Dividend
    • High, secure dividend
    • Minimal perceived downside risk

Portfolio Managers

Dennis G. Alff, CFA®

Senior Portfolio Manager of Equity Investments and Research Specialist

Full Bio

Chad D. Fargason, PhD

Senior Portfolio Management – Equity Investments

Full Bio

Chris D. Wallis, CFA®, CPA

CEO, CIO, Senior Portfolio Manager

Full Bio

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. It is important to note that under the agreement between the model portfolio provider and Natixis Advisors, pursuant to which the model portfolio provider supplies the model portfolio, the model portfolio provider's role is limited to assembling the model portfolios and under certain circumstances, trading certain securities. Portfolio transactions will be effected either by Natixis Advisors or the model portfolio provider. When effected by the model portfolio provider, transactions will be aggregated with transactions of the model portfolio provider's other clients when feasible, in an effort to seek best overall execution. All other investment tasks are the responsibility of Natixis Advisors, the investment advisor, including the discretion of what portion of client accounts will be invested using the model portfolio. Accordingly, the information shown may not be representative of the performance of client accounts managed by Natixis Advisors. For more information, please see Part 2 of Natixis Advisors' most recent Form ADV. The information presented in this report has been developed internally and/or obtained from sources believed to be reliable; however, neither Natixis Advisors, L.P. nor the model portfolio provider guarantees the accuracy, adequacy, or completeness of such information nor do we guarantee the appropriateness of any strategy referred to in this report for any particular investor. This report is provided for information purposes only and is not to be construed as advice or a recommendation for the purchase or sale of any security. 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.

Effective the close of business on June 30, 2020 the Strategy’s name changed from the Natixis/Vaughan Nelson Value Opportunity Strategy to the Natixis/Vaughan Nelson Mid Cap Strategy.