The Vaughan Nelson Select Fund, from Vaughan Nelson Investment Management, is designed as a potential return enhancer for long-term equity investors and complement to index fund positions.
The Fund invests in undervalued companies across the market capitalization spectrum. In an investing landscape increasingly dominated by index funds and exchange-traded funds (ETFs), Chris Wallace, president and chief executive of Vaughan Nelson, believes 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. “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,” Wallace said.
The investment process for the Vaughan Nelson Select Fund is an extension of the mandate used for the firm’s two other funds; however, the fund takes a more concentrated approach, holding between 20 and 40 stocks. The fund has the ability to hold preferred and convertible securities, and can short equity securities tactically to express an investment view.