- A large cap equity strategy that seeks strong returns by employing a disciplined investment process focused on stocks with significant upside potential.
- A high active share, concentrated portfolio of 20 to 40 stocks, with security selection acting as the largest source of alpha.
Launched on June 29, 2012, the Vaughan Nelson Select Fund is a high-active share, concentrated portfolio of equity stocks that seeks to capitalize on information and liquidity inefficiencies in the large cap universe to pursue strong risk adjusted returns for investors. The fund’s management team deploys a rigorous bottom-up research process to identify companies that offer the potential for asymmetrically positive returns driven by idiosyncratic factors.
“At Vaughan Nelson, we invest with the mindset of offsetting our clients’ future liabilities and we do so in a fundamental, bottom up, research driven, high active share, concentrated, factor diversified manner,” said Chris Wallis, CFA® and CPA, CEO and CIO of Vaughan Nelson Investment Management and senior portfolio manager. “While the Vaughan Nelson Select Fund typically holds 30 stocks or less, its level of risk factor diversification compares favorably with the S&P 500® Index which has declined over time due to a high level of concentration and similarities among the largest S&P 500 names.”
Scott Weber, CFA®, Senior Portfolio Manager of equity investments, has been the lead manager on the Fund since inception alongside co-portfolio manager Wallis. To provide flexibility and choice for investors, the fund’s strategy is also available through an ETF (VNSE) and, for eligible financial advisors and their clients, in separately managed accounts offered by Natixis Investment Managers.
“Vaughan Nelson has been serving investors for more than 50 years, and this milestone is a testament to their focus on generating long-term value for clients while staying true to their unique approach and perspective,” said David Giunta, CEO for the US at Natixis Investment Managers. “Vaughan Nelson and the Select Fund exemplify Natixis Investment Managers’ focus on providing access to a wide range of high-conviction, actively managed investment strategies that seek to provide superior returns for investors.”
About Vaughan Nelson Investment Management
Founded in 1970, Vaughan Nelson is a Houston-based investment manager with $14.7 billion under management as of March 31, 2022. A globally recognized boutique affiliate of Natixis Investment Managers, S.A., Vaughan Nelson manages six equity products and four domestic fixed income products. Vaughan Nelson focuses on managing active investment strategies that are relevant today and in the future.
About Natixis Investment Managers
Natixis Investment Managers’ multi-affiliate approach connects clients to the independent thinking and focused expertise of more than 20 active managers. Ranked among the world’s largest asset managers1 with more than $1.3 trillion assets under management2 (€1.2 trillion), Natixis Investment Managers delivers a diverse range of solutions across asset classes, styles, and vehicles, including innovative environmental, social, and governance (ESG) strategies and products dedicated to advancing sustainable finance. The firm partners with clients in order to understand their unique needs and provide insights and investment solutions tailored to their long-term goals.
Headquartered in Paris and Boston, Natixis Investment Managers is part of the Global Financial Services division of Groupe BPCE, the second-largest banking group in France through the Banque Populaire and Caisse d’Epargne retail networks. Natixis Investment Managers’ affiliated investment management firms include AEW; AlphaSimplex Group; DNCA Investments;3 Dorval Asset Management; Flexstone Partners; Gateway Investment Advisers; Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Mirova; MV Credit; Naxicap Partners; Ossiam; Ostrum Asset Management; Seeyond; Seventure Partners; Thematics Asset Management; Vauban Infrastructure Partners; Vaughan Nelson Investment Management; and WCM Investment Management. Additionally, investment solutions are offered through Natixis Investment Managers Solutions and Natixis Advisors, LLC. Not all offerings are available in all jurisdictions. For additional information, please visit Natixis Investment Managers’ website at im.natixis.com | LinkedIn: linkedin.com/company/natixis-investment-managers.
Natixis Investment Managers’ distribution and service groups include Natixis Distribution, LLC, a limited purpose broker-dealer and the distributor of various U.S. registered investment companies for which advisory services are provided by affiliated firms of Natixis Investment Managers, Natixis Investment Managers S.A. (Luxembourg), Natixis Investment Managers International (France), and their affiliated distribution and service entities in Europe and Asia.
2 Assets under management (“AUM”) of current affiliated entities measured as of March 31, 2022 are $1,320.6 billion (€1,187.6 billion). AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.
3 A brand of DNCA Finance.
Equity securities are volatile and can decline significantly in response to broad market and economic conditions. Non-diversified funds invest a greater portion of assets in fewer securities and therefore may be more vulnerable to adverse changes in the market. Value investing carries the risk that a security can continue to be undervalued by the market for long periods of time.
Exchange-Traded Funds (ETFs) trade like stocks, are subject to investment risk, and will fluctuate in market value. Unlike mutual funds, ETF shares are not individually redeemable directly with the Fund and are bought and sold on the secondary market at market price, which may be higher or lower than the ETF's net asset value (NAV). Transactions in shares of ETFs will result in brokerage commissions, which will reduce returns. Unlike typical exchange-traded funds, there are no indexes that the Fund attempts to track or replicate. Thus, the ability of the Fund to achieve its objectives will depend on the effectiveness of the portfolio manager. There is no assurance that the investment process will consistently lead to successful investing.
Non-transparent ETFs are different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. These ETFs will not. This may create additional risks for your investment. For example: You may have to pay more money to trade these ETFs’ shares. These ETFs will provide less information to traders, who tend to charge more for trades when they have less information. The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for these ETFs compared to other ETFs because they provide less information to traders. These additional risks may be even greater in bad or uncertain market conditions. These ETFs will publish on their websites each day a Proxy Portfolio (“Proxy Portfolio”) designed to help trading in shares of the ETFs. While the Proxy Portfolio includes some of these ETFs’ holdings, it is not the ETFs’ Actual Portfolio (“Actual Portfolio”). The differences between these ETFs and other ETFs may also have advantages. By keeping certain information about the ETFs secret, these ETFs may face less risk that other traders can predict or copy its investment strategy. This may improve the ETFs’ performance. If other traders are able to copy or predict the ETFs’ investment strategy, however, this may hurt the ETFs’ performance. For additional information regarding the unique attributes and risks of these ETFs, see the discussion on the Proxy Portfolio and the “Proxy Portfolio Structure Risk,” “Authorized Participant Concentration Risk,” “Predatory Trading Practices Risk,” “Premium/Discount Risk,” and “Trading Issues Risk” within the prospectus.
The S&P 500® Index is a widely recognized measure of US stock market performance. It is an unmanaged index of 500 common stocks chosen for market size, liquidity, and industry group representation, among other factors; it also measures the performance of the large-cap segment of the US equities market. You may not invest directly in an index.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Visit im.natixis.com/ETFs for a prospectus or a summary prospectus containing this and other information. Read it carefully.
ALPS Distributors, Inc. is the distributor for the Natixis Vaughan Nelson Select ETF. Natixis Distribution, LLC is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, LLC.