Fund Evaluator:

Natixis Vaughan Nelson Small Cap A Overview

Natixis Vaughan Nelson Small Cap A (NEFJX) is an actively managed U.S. Equity Small Blend fund. Natixis Funds launched the fund in 1996.

The investment seeks capital appreciation. The fund normally will invest at least 80% of its net assets (plus any borrowings made for investment purposes) in the equity securities, including common stocks and preferred stocks, of "small-capitalization companies." It may invest in convertible preferred stock and convertible debt securities. The fund may invest in foreign securities, including emerging market securities. It may invest in REITs. The fund may invest in securities offered in initial public offerings ("IPOs").

About Natixis Vaughan Nelson Small Cap A (NEFJX)

There are 2 members of the management team with an average tenure of 13.30 years: James Eisenman (2022), Christopher Wallis (2004). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 2000 Value TR USD index with a weighting of 100%. Natixis Vaughan Nelson Small Cap A has 66 securities in its portfolio. The top 10 holdings constitute 27.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Natixis Vaughan Nelson Small Cap A is part of the Equity global asset class and is within the U.S. Equity fund group. Natixis Vaughan Nelson Small Cap A has 3.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 94.0%. There is 3.9% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Natixis Vaughan Nelson Small Cap A has 2.1% of the portfolio in cash.

Assets Under Management

The fund has $263 million in total assets, which is below the $685 million average for the Small Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

NEFJX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Natixis Vaughan Nelson Small Cap A expense ratio is high compared to funds in the Small Blend category. Natixis Vaughan Nelson Small Cap A has an expense ratio of 1.26%, which is 20% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Natixis Vaughan Nelson Small Cap A has a portfolio turnover rate of 120%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 66% for the Small Blend category.

Recently, in the month of July 2026, Natixis Vaughan Nelson Small Cap A returned -1.4%, which earned it a grade of A, as the Small Blend category had an average return of -2.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Natixis Vaughan Nelson Small Cap A has a trailing yield of 0.67%, which is above the 0.42% category average. The fund normally distributes its income annually and its capital gains semi-annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Natixis Vaughan Nelson Small Cap A Grades

Year to date, the fund has returned 11.3%, 6.9 percentage points worse than the category, which translates into a grade of F. The fund has returned 22.8% over the past year (grade of D), 11.3% over the past three years (grade of D) and 10.2% per year over the past five years (grade of A) and 10.1% per year over the past 10 years (grade of C).

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