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SMA Inception Date: 12/1/2003
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.

Investment Strategy

  • Vaughan Nelson seeks to take advantage of temporary information and marketplace inefficiencies in the small-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

Chris D. Wallis, CFA®, CPA®

CEO, CIO, Senior Portfolio Manager

Full Bio

Stephen A. Davis, CFA®

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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