Vaughan Nelson Value Opportunity Fund

Q1 | March 31, 2015
Vaughan Nelson Value Opportunity Fund
Fund Highlights
Morningstar Rating
• A small/mid-cap value fund seeking to capitalize on temporary information and liquidity inefficiencies in
the small- and mid-cap universes to pursue strong risk-adjusted returns
• Follows a research-intensive investment process emphasizing company financials to help uncover value
• May be suitable for investors seeking exposure to value-oriented, small- and mid-cap stocks
Mid-Cap Blend – Class Y
Average annualized total returns†
Overall out of 319 funds
1 year
3 years
5 years
7.00%
12.73%
19.64%
16.48%
Life of class
10/31/08
17.74%
0.84
6.22
17.30
15.12
16.66
7.06
13.05
19.96
16.77
18.04
2.42
11.70
18.60
15.84
18.04
3 months
Class A at NAV
Class A with 5.75%
maximum sales charge
Class Y
Russell Midcap® Value
Index4
Calendar year returns
2005
2006
2007
20081
2009
2010
2011
2012
Class A at NAV (%)
-
-
-
-3.75
30.98 19.64
-2.71
15.93 41.22 10.92
Russell Midcap® Value
Index (%)4
-
-
-
-5.73
34.21 24.75
-1.38
18.51 33.46 14.75
2013
2014
Overall rating derived from weighted average of the
3-, 5- and 10-year (if applicable) Morningstar Rating
metrics; other ratings based on risk-adjusted returns.
Three years out of 319 funds
Five years out of 268 funds
Share Class
Ticker
Cusip
Class A
Class C
Class N
Class Y
VNVAX
VNVCX
VNVNX
VNVYX
63872T-84-4
63872T-83-6
63872T-43-0
63872T-82-8
Class A maximum sales charge of 5.75%
Class C maximum CDSC of 1.00%
Fund Facts
Seeks long-term
capital appreciation
Objective
Investment return – Hypothetical growth of $10,000 investment since inception3
$35,000
Total net assets
$30,000
Inception date
$28,511
$25,000
$911.2 million
10/31/2008
Number of holdings
$20,000
62
Turnover as of 12/31/2014
$15,000
58%
Distribution frequency
$10,000
Annual
2
Gross Expense Ratios (A/Y)
$5,000
$0
★★★★★
★★★★★
★★★★★
10/08 3/09
12/09
9/10
6/11
3/12
12/12
9/13
6/14
3/15
2
Net Expense Ratios (A/Y)
1.41%/1.16%
1.41%/1.16%
Performance data quoted represents past performance and is no guarantee of future results. Total return and value will vary, and you may have a gain or loss when
shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit ngam.natixis.com. Performance for other share
classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. †Performance for periods less than one
year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any.
1 The calendar year performance shown for 2008 is a partial year of performance since inception on 10/31/2008 through 12/31/2008. 2 As of the most recent prospectus,
the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the fund has been exceeded.
This arrangement is set to expire on 4/30/16. When an expense cap has not been exceeded, the gross and net expense ratios may be the same. 3 This chart tracks hypothetical growth of a $10,000 investment in Class A shares without the effect of sales charges. If the maximum sales charge were included, returns would have been lower.
Not all share classes are available for purchase by all investors. See the prospectus for more details.
For funds at least three years old, Morningstar calculates ratings based on a Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance
(including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. Past performance is no guarantee of future results. The top 10% of funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the
next 22.5% receive two stars, and the bottom 10% receive one star. Overall ratings are derived from a weighted average of the performance figures associated with three-,
five-, and ten-year (if applicable) Morningstar metrics. Past performance is no guarantee of future results.
© 2015 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising
from any use of this information.
Q1 | March 31, 2015
Vaughan Nelson Value Opportunity Fund
Manager Overview
Portfolio Overview
Sector breakdown5
Sector
Investment Manager
Fund statistics
Vaughan Nelson Investment Management specializes in value equity investing with a focus on
absolute return. The firm employs a bottom-up,
fundamental research process that seeks to
capitalize on temporary information and liquidity inefficiencies in the equity universe. The
firm’s long-term, consistent investment
approach draws on its in-depth research capabilities.
% of Portfolio
Beta vs. Russell Midcap Value Index
1.1
Information
Technology
Consumer
Discretionary
Financials
20.76
R-Squared vs. Russell Midcap® Value
Index7
84.6
18.27
P/E (Trailing) Ratio
Health Care
12.08
P/B (Trailing) Ratio10
2.6
Industrials
10.52
11
$6.4 billion
Materials
9.31
Top ten equity holdings12
Consumer Staples
3.99
Company
Energy
2.14
1. Rite Aid Corp.
2.72
2. HCA Holdings, Inc.
2.40
3. Jarden Corp.
2.33
4. Crown Holdings, Inc.
2.26
Scott J. Weber, CFA®
5. Ares Capital Corp.
2.23
Chad Fargason, PhD
6. Amsurg Corp.
2.19
7. Catalent, Inc.
2.15
8. PacWest Bancorp
2.14
9. ServiceMaster Global Holdings, Inc.
2.03
10. Sabre Corp.
2.00
20.65
®
6
8
Standard Deviation (%)
9
Median market cap
11.6
19.2
% of Portfolio
Headquarters: Houston, TX
Founded: 1970
Assets under management: $10.0 billion
(as of 9/30/2014)13
Portfolio Managers14
Dennis G. Alff, CFA®
Chris D. Wallis, CFA®
Risks
Small-cap investments carry special risks, including narrower markets, limited financial and management resources, less liquidity and greater volatility than large-company stocks. This fund invests in foreign and emerging market securities, which have special risks. These risks may include political, economic, regulatory and currency
risks. Emerging markets may be more subject to these risks than developed markets. These risks affect your investment’s value. Value investing carries the risk that a
security can continue
to be undervalued by the market for long periods of time. See a prospectus for details.
®
®
4 Russell Midcap Value Index is an unmanaged index that measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth
values. You may not invest directly in an index. Russell Investment Group is the source and owner of the trademarks, service
marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. 5 Source: GICS Sectors via FactSet Research Systems Inc. 6 Beta is calculated for the
three-year period and represents the risk associated with the fund relative to market risks. For example, the market has a beta of 1.00, so if a fund has a beta of 0.85, it can be expected to be
15% less volatile than the overall market. Conversely, if a fund has a beta of 1.08, it can be expected to be 8% more volatile than the overall market. 7 R-squared is calculated for the three-year
period and represents the percentage of the fund’s movements that can be explained by the movements of the market. For example, index funds will tend to have R-squared values very close to
100. 8 Standard deviation measures the risk of a portfolio or market. Beta, R-squared and standard deviation are calculated on a monthly basis for the three-year annualized period as of the
most recent quarter-end. 9 P/E (Trailing) Ratio is the weighted harmonic average of the price-to-earnings (P/E) ratios of all the stocks in the portfolio. P/E ratio is the ratio of a stock’s price to its
earnings per share for the trailing twelve months. This excludes negative earnings. 10 P/B (trailing) Ratio is the weighted harmonic average of the price-to-book (P/B) ratios of all the stocks in
the portfolio. P/B ratio is the ratio of a stock’s price to its book value per share. This excludes negative earnings. 11 Median market cap provides a measure of the market capitalization value of
all the stocks in the portfolio. Market capitalization reflects the total market value of a company, as calculated by multiplying the current share price by the number of outstanding shares. 12
The portfolio is actively managed and holdings are subject to change. References to specific securities or industries should not be considered a recommendation. For current holdings, please
visit our website. 13 Assets under management (AUM) may include assets for which non-regulatory AUM services are provided. Non-regulatory AUM includes assets which do not fall within the
SEC's definition of 'regulatory AUM' in Form ADV, Part 1. 14 CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Visit ngam.natixis.com or call 800-225-5478 for
a prospectus or a summary prospectus containing this and other information. Read it carefully.
NGAM Distribution, L.P. is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by
affiliates of Natixis Global Asset Management, S.A. • NGAM Distribution, L.P. is located at 399 Boylston Street, Boston, MA 02116. • 800-225-5478 • ngam.natixis.com
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
966292.1.4
VNVO59-0315
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