NEW YORK & BOSTON--(BUSINESS WIRE)--Today, Natixis Global Asset Management (Natixis) celebrated the launch of the Natixis Seeyond International Minimum Volatility ETF (NYSE Arca: MVIN) during the opening bell ceremony at the New York Stock Exchange. MVIN began trading on the NYSE Arca on October 27, 2016. MVIN is Natixis’ first exchange-traded fund (ETF) available in the U.S. market. Executives David Giunta, President and CEO for the U.S. and Canada, John Hailer, the retiring CEO in the Americas and Asia, Emmanuel Bourdeix, co-CIO of Natixis Asset Management and head of Seeyond, Marina Gross, EVP of the Natixis Portfolio Research and Consulting Group, and Robert Hussey, EVP and head of Natixis Institutional Sales, along with colleagues and clients, were onsite to mark the event.
The fund, an actively managed minimum volatility international equity investment strategy, uses the expertise of Seeyond, which is operated in the U.S. through Natixis Asset Management U.S., LLC. MVIN seeks to reduce risk through an investment process that selects stocks based on standard deviation, or historical volatility, and correlations of individual holdings, rather than purely investment fundamentals. The investment strategy differentiates itself by actively rebalancing the portfolio and actively monitoring risk to help maximize diversification and minimize the volatility associated with international equities.
“We are excited to offer investors the investment and research expertise of Seeyond, a global investment unit especially well-known for its active management through a quantitative approach,” said David Giunta, President and CEO for the U.S. and Canada. “Addressing volatility is an essential part of managing risk, so we are pleased to offer investors another tool to potentially help regulate the risk in their portfolios.”
MVIN seeks to outperform the broad international equity markets over a full market cycle, while reducing risk. Recent Natixis Global Asset Management Durable Portfolio Construction Research Center surveys1 have indicated that both investment professionals and institutions are favoring active management over passive management in anticipation of higher volatility. Sixty-four percent of institutional investors and 66% of financial advisors say active management provides better risk-adjusted returns than passive. Furthermore, 80% of advisors agree that these strategies will play an increased role in portfolios and 73% of institutions responded that the current market environment is likely favorable to active management.
“Our research indicates that low volatility stocks, combined with active portfolio implementation, may actually have the potential to enhance the risk/return profile of investor’s equity portfolios,” said Emmanuel Bourdeix, co-CIO of Natixis Asset Management and head of Seeyond. “Taking less risk by purchasing low-volatility stocks may not necessarily mean reduced performance.”
Natixis Asset Management U.S., LLC (Natixis AM U.S.) is subadvisor to the fund and manages $423 million in assets under management. Natixis AM U.S. is a subsidiary of Natixis Asset Management, which manages more than $355 billion2 in assets globally. The portfolio is co-managed by Nicolas Just, Frederic Babu, Juan Sebastian Caicedo and Alexander Nary. The gross expense ratio is 2.89%. The net expense ratio for the fund is 0.55%.
For more information about the Natixis Seeyond Minimum Volatility ETF, visit: https://ngam.natixis.com/us/active-international-minimum-volatility
A replay of the Opening Bell ceremony is available at: http://players.brightcove.net/44079309001/ryUSVZ3Ux_default/index.html?videoId=5349181893001
ETFs trade like stocks, are subject to investment risk, and will fluctuate in market value. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than the ETF's net asset value. Transactions in shares of ETFs will result in brokerage commissions, which will reduce returns.
Active ETF, unlike typical exchange-traded funds, there are no indexes that the Fund attempts to track or replicate. Thus, the ability of the Fund to achieve its objectives will depend on the effectiveness of the portfolio manager.
Equity securities are volatile and can decline significantly in response to broad market and economic conditions.
Foreign securities may involve heightened risk due to currency fluctuations. Additionally, they may be subject to greater political, economic, environmental, credit, and information risks. Foreign securities may be subject to higher volatility than U.S. securities, due to varying degrees of regulation and limited liquidity.
Currency exchange rates between the U.S. dollar and foreign currencies may cause the value of the fund’s investments to decline.
The Fund is new with a limited operating.
Diversification does not guarantee a profit or protect against a loss.
The Advisor has agreed to limit the amount of the total annual fund operating expenses to 0.55% (exclusive of brokerage expenses, interest expense, taxes, acquired fund fees and expenses, etc.) in effect through April 30, 2018.
Before investing, consider the fund's investment objectives, risks, charges, and expenses. Visit ngam.natixis.com for a prospectus or a summary prospectus containing this and other information. Read it carefully.
ALPS Distributors, Inc. is the distributor for the Natixis Seeyond International Minimum Volatility ETF. NGAM Distribution, L.P. is a marketing agent. ALPS Distributors, Inc. is not affiliated with NGAM Distribution, L.P.
1 Natixis’ 2016 financial advisor research was conducted in
July 2016 with 300 financial advisors in the United States. The survey
is part of a larger global study of 2,550 advisors in 15 countries and
territories in Asia, Europe, Latin America, the United Kingdom and the
Americas. Natixis surveyed 500 institutional investors about their
opinions on risk, predictions on asset allocation, and views on market
performance in October and November 2016. The respondents included
managers of corporate and public pension funds, foundations, endowments,
insurance funds and sovereign wealth funds in North America, Latin
America, the United Kingdom, Continental Europe, Asia and the Middle
East. Data was gathered for both surveys by the research firm CoreData.
For more information, visit http://durableportfolios.com.
2 AUM of Natixis Asset Management U.S., LLC and Natixis Asset Management as of 12/31/16.
About Natixis Global Asset Management
Natixis Global Asset Management serves thoughtful investment professionals worldwide with more insightful ways to invest. Through our Durable Portfolio Construction® approach, we focus on risk to help them construct more strategic portfolios that seek to endure today’s unpredictable markets. We draw from deep investor and industry insights and partner closely with our clients to put objective data behind the discussion.
Natixis Global Asset Management is ranked among the world’s largest asset management firms.1 Uniting over 20 specialized investment managers globally ($877 billion AUM2), we bring a diverse range of solutions to every strategic opportunity. From insight to action, Natixis Global Asset Management helps our clients better serve their own with more durable portfolios.
Headquartered in Paris and Boston, Natixis Global Asset Management, S.A. is part of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Global Asset Management, S.A.’s affiliated investment management firms and distribution and service groups include Active Index Advisors®;3 AEW Capital Management; AEW Europe; AlphaSimplex Group; Axeltis; Darius Capital Partners; DNCA Investments;4 Dorval Finance;5 Emerise;6 Gateway Investment Advisers; H2O Asset Management;5 Harris Associates; IDFC Asset Management Company; Loomis, Sayles & Company; Managed Portfolio Advisors®;3 McDonnell Investment Management; Mirova;5 Natixis Asset Management; Ossiam; Seeyond;7 Vaughan Nelson Investment Management; Vega Investment Managers; and Natixis Global Asset Management Private Equity, which includes Seventure Partners, Naxicap Partners, Alliance Entreprendre, Euro Private Equity, Caspian Private Equity and Eagle Asia Partners. Visit ngam.natixis.com for more information.
1 Cerulli Quantitative Update: Global Markets 2016
ranked Natixis Global Asset Management, S.A. as the 16th
largest asset manager in the world based on assets under management
($870.3 billion) as of December 31, 2015.
2 Net asset value as of December 31, 2016. 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.
3 A division of NGAM Advisors, L.P.
4 A brand of DNCA Finance.
5 A subsidiary of Natixis Asset Management.
6 A brand of Natixis Asset Management and Natixis Asset Management Asia Limited, based in Singapore and Paris.
7 A brand of Natixis Asset Management.
About Natixis Asset Management U.S., LLC and Seeyond
Natixis AM U.S. provides access to investment solutions that benefit from the extensive resources of a leading European asset management group. Natixis AM U.S. launched in 2014, is a U.S.-based investment adviser, majority-owned by Natixis Asset Management with $423 million in assets under management (as of 12/31/16) and utilizes the expertise of Seeyond, a global investment unit of the Natixis Asset Management organization.
SeeyondSM is dedicated to non-traditional investment strategies that specialize in extracting value from risk. Seeyond is known for its active quant investing and global asset allocation expertise. It manages $15.5 billion in assets, as of December 31, 2016.