A Natixis Investment Managers affiliate has won a $125 million global equity mandate from IOOF.
Vaughan Nelson Investment Management will oversee the global small and mid-cap (SMID) mandate that is part of IOOF's MultiSeries international shares portfolio.
Vaughan Nelson is a Houston-based fund manager. Its global SMID strategy is a concentrated portfolio of 40-80 stocks seeking long-term capital appreciation, taking advantage of market inefficiencies via a value-oriented bottom-up process.
The fund manager has been working with Australian clients since 2009.
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Vaughan Nelson chief executive and chief investment officer Chris Wallis said: "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 benefitting fund investors. We look forward to an enduring relationship between IOOF, Natixis Investment Managers and Vaughan Nelson."
Newly appointed Natixis IM country head for Australia and New Zealand Louise Watson said this mandate 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," she said.
IOOF recently reviewed its global equity portfolio and decided a global SMID allocation would improve the outcome for 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," IOOF deputy chief investment officer and head of equities Stanley Yeo said.