Vaughan Nelson wins AU125m Global SMID equity mandate with IOOF


Louise Watson

Global asset manager, Natixis Investment Managers, has announced that its affiliate, Vaughan Nelson Investment Management (Vaughan Nelson), a Houston-based equity manager has been awarded an AU125m Global Small and Mid-Cap mandate by IOOF in its MultiSeries international shares portfolio.

Diversified listed financial services group IOOF Holdings Ltd (IOOF) is one of the largest investment management and super fund providers in Australia with more than $230 billion of assets under management.

The Vaughan Nelson Global SMID strategy is a concentrated portfolio of 40-80 stocks seeking long-term capital appreciation through investments in companies with a focus on targeted return. It leverages Vaughan Nelson’s 20 year experience investing in US small and mid cap companies. The strategy seeks to take advantage of market inefficiencies through a value-oriented bottom up process and targets a 50% return from every position over a three-year holding period.

Louise Watson, Country Head for Natixis Investment Managers, Australia and New Zealand said: “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. We look forward to helping IOOF’s investors achieve positive outcomes through this new partnership.”

Chris Wallis, CEO and CIO of Vaughan Nelson, said: “Vaughan Nelson has been working with Australian clients who have been invested in our equity strategies 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. We look forward to an enduring relationship between IOOF, Natixis Investment Managers, and Vaughan Nelson.”

Stanley Yeo, IOOF Deputy CIO and Head of Equities, said: “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. 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.”

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