Natixis Global Asset Management has launched a concentrated equity fund, the Vaughan Nelson Select Fund, from Vaughan Nelson Investment Management.
Managed by Vaughan Nelson’s value equity team, the new fund is designed as a potential return enhancer for long-term equity investors and could be a complement to index fund positions.
The fund invests in undervalued companies across the market capitalisation spectrum. Lead portfolio manager for the fund is Scott J. Weber, along with co-managers Chris D. Wallis and Dennis Alff.
Weber and Wallis co-manage the Vaughan Nelson Small Cap Value Fund, while Alff is lead manager for the Vaughan Nelson Value Opportunity Fund.
"In an investing landscape increasingly dominated by index funds and ETFs, we believe there is demand for an actively managed fund with high active share, as measured by the percentage of a portfolio not held by its relevant benchmark index," says Wallis. "A concentrated approach allows us to focus on investment ideas in which we have the greatest conviction, fully expressing the views of Vaughan Nelson’s experienced investment team in a single product."
The investment process for the Vaughan Nelson Select Fund is an extension of the process used for the firm’s two other funds; however, the fund takes a more concentrated approach, holding between 20 and 40 stocks. In addition, the fund has the ability to hold preferred and convertible securities and can short equity securities tactically to express an investment view. Investment ideas are generated by the firm’s equity research analyst team using a bottom-up fundamental research process informed by macro economic and risk analysis.
"The Vaughan Nelson Select Fund is another example of NGAM’s commitment to offering a wide range of portfolio solutions focused on helping investors as they build durable investment portfolios," says David Giunta (pictured), president and chief executive, Natixis Global Asset Management – US distribution. "It rounds out our current offerings with a flexible approach to equities, thus reinforcing our overall mission of providing innovative solutions to clients."