Vaughan’s 20 years of experience investing in US SMID companies was said to be critical in the award. Their strategy takes advantage of market inefficiencies through a value-oriented bottom-up process, aiming for a 50 per cent return from every position over a three-year holding period.
“In a recent review of our global equities portfolio, we decided the case for a global SMID allocation was compelling to improve the outcome for our investors,” said Stanley Yeo, IOOF deputy CIO and head of equities.
“Following a global search, we were particularly impressed by the Vaughan Nelson team’s proven track record and disciplined investment approach.
“In addition, as a boutique firm, the appointment of Vaughan Nelson is consistent with our preference for boutique asset management firms running niche strategies.”
The Houston-based fund manager’s global SMID approach is the maintenance of a 40-80 equity portfolio, seeking long-term capital appreciation through investments in companies with a focus on targeted return.
“This mandate between IOOF and our affiliate, Vaughan Nelson, means that investors of IOOF’s MultiSeries product have exposure to both international companies, and also active management,” said Louise Watson, country head for Natixis Investment Managers, Australia and New Zealand, on the mandate.
“We look forward to helping IOOF’s investors achieve positive outcomes through this new partnership.”
In undertaking the mandate, Vaughan will also draw on over 10 years of experience in the local market, having served Australian clients since 2009.
“We are pleased to be entrusted with this mandate from IOOF, and believe that Vaughan Nelson’s expertise in global small to mid-cap markets will help further diversify the IOOF portfolio, ultimately benefiting fund investors,” said Chris Wallis, chief executive and CIO of Vaughan Nelson.
“We look forward to an enduring relationship between IOOF, Natixis Investment Managers, and Vaughan Nelson.”
