BOSTON--(BUSINESS WIRE)--Loomis, Sayles & Company, an affiliate of Natixis Investment Managers, today announced the launch of the Natixis Loomis Sayles Short Duration Income ETF (NYSE Arca: LSST), an actively managed, investment-grade,¹ short-duration fixed income strategy. The fund began trading December 28, 2017.
Loomis Sayles subadvises the fund. The portfolio is managed by Christopher Harms, Cliff Rowe and Kurt Wagner, an experienced team who currently co-manage $18.2 billion in assets across short, intermediate duration and core fixed income strategies at Loomis Sayles (as of September 30, 2017). The LSST fund’s total gross expense ratio is 0.87% and total net expense ratio is 0.38%.²
“We feel that our experience in security selection give us an edge in the active ETF space. Sector and issue selections will be made using the full extent of our proprietary research resources,” said Jae Park, chief investment officer at Loomis Sayles. “LSST gives investors access to a fixed income strategy that draws on Loomis Sayles’ experience in active credit selection and deep research resources in a low-cost, liquid³ vehicle.”
LSST’s investment objective seeks current income consistent with preservation of capital. The management team maintains a goal to outperform the Bloomberg Barclays US Government/Credit 1-3 Year Index4 with similar volatility. The fund’s short-duration structure may provide exposure to the short part of the yield curve with a constant interest rate exposure. It also can provide the added flexibility of increasing sector allocations in the form of credit or securitized credit. The investment process combines bottom-up security selection with top-down macroeconomic analysis.
Sector allocation decisions incorporate Loomis Sayles’ Global Asset Allocation Team (GAAT) views on global interest rates, inflation, economic activity and asset class performance under various economic conditions. Active management, coupled with the short-duration profile, seeks to create a portfolio that may be optimal in a rising rate environment.
“Our clients have diverse investment needs and we are happy to offer them access to our affiliates’ expertise via various vehicles,” said David Giunta, CEO for the US and Canada at Natixis Investment Managers. “Utilizing the expertise of Loomis Sayles, we can offer an actively managed short-duration fixed income ETF that may help investors construct a more resilient portfolio for 2018 and beyond.”
For more information on the Natixis Loomis Sayles Short Duration Income ETF, visit www.im.natixis.com/us/active-short-duration-income-etf
ABOUT LOOMIS SAYLES
Since 1926, Loomis, Sayles & Company has helped fulfill the investment needs of institutional and mutual fund clients worldwide. The firm’s performance-driven investors integrate deep proprietary research and integrated risk analysis to make informed, judicious decisions. Using foresight and flexibility, Loomis Sayles looks far and wide for value – across traditional asset classes and alternative investments – to pursue attractive, sustainable returns for clients. This rich tradition has earned Loomis Sayles the trust and respect of clients worldwide, for whom we currently manage approximately $261.3 billion in assets (as of 30th September 2017).
ABOUT NATIXIS INVESTMENT MANAGERS
Natixis Investment Managers serves financial professionals with more insightful ways to construct portfolios. Powered by the expertise of more than 20 specialized investment managers globally, we apply Active Thinking℠ to deliver proactive solutions that help clients pursue better outcomes in all markets. Natixis ranks among the world’s largest asset management firms5 ($961.1 billion AUM6).
Natixis Investment Managers includes all of the investment management and distribution entities affiliated with Natixis Distribution, L.P. and Natixis Investment Managers S.A.
1Investment Grade refers to bonds rated BBB/Baa or higher. Ratings are determined by third-party rating agencies such as Standard & Poor’s or Moody’s and are an indication of a bond’s credit quality.
2Net Expense Ratio refers to the limitation on expenses exclusive of brokerage expenses, interest expense, taxes, acquired fund fees and expenses, organizational and extraordinary expenses, such as litigation and information expenses. 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 the contractual expiration date. When an expense cap has not been exceeded, the gross and net expense ratios and/or yields (if applicable) may be the same. This agreement is set to expire on 4/30/2019.
3Liquidity is the number of shares traded of the stock or ETF on a daily basis.
4The US Government/Credit Index is the non-securitized component of the US Aggregate Index and was the first macro index launched by Barclays Capital. The US Government/Credit Index includes Treasuries (i.e., public obligations of the US Treasury that have remaining maturities of more than one year), government-related issues (i.e., agency, sovereign, supranational, and local authority debt), and corporates. The US Government/Credit Index was launched on January 1, 1979, with index history backfilled to 1973, and is a subset of the US Aggregate Index.
5Cerulli Quantitative Update: Global Markets 2017 ranked Natixis Investment Managers (formerly Natixis Global Asset Management) as the 15th largest asset manager in the world based on assets under management as of December 31, 2016.
6Net asset value as of September 30, 2017. Assets under management (“AUM”), as reported, may include notional assets, assets serviced, gross assets and other types of non-regulatory AUM.
The Fund is new with a limited operating history.
Exchange-Traded Funds (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.
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. There is no assurance that the investment process will consistently lead to successful investing.
Fixed income securities may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity.
Below investment grade fixed income securities may be subject to greater risks (including the risk of default) than other fixed income securities.
Foreign and emerging market securities may be subject to greater political, economic, environmental, credit, currency and information risks. Foreign securities may be subject to higher volatility than US securities, due to varying degrees of regulation and limited liquidity. These risks are magnified in emerging markets.
Interest rate risk is a major risk to all bondholders. As rates rise, existing bonds that offer a lower rate of return decline in value because newly issued bonds that pay higher rates are more attractive to investors.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Please visit www.loomissayles.com or call us at 800-633-3330 for a prospectus and a summary prospectus, if available, containing this and other information. Read it carefully.
ALPS Distributors, Inc. is the distributor for the Natixis Loomis Sayles Short Duration Income ETF. Natixis Distribution, L.P. is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, L.P.
Natixis Distribution, L.P. (member FINRA|SIPC) and Loomis, Sayles & Company, L.P. are affiliated.