Seeyond believes that integrating an ESG angle when screening for sources of volatility makes a lot of sense for strategies such as the Natixis Seeyond International Minimum Volatility ETF (MVIN), which are specifically designed to seek long-term capital appreciation with less volatility than typically experienced by international equity markets.
But we also believe that sustainability is closely linked to how strategies are designed. Indeed, a key tenet of sustainable development is a mindful use of resources. In the financial world, the essential resource is arguably risk budgeting. That is why we believe that efficient use of risk and capital is a cornerstone to sustainable finance, for the betterment of portfolios and the world around us. In other words, we believe that – contrary to popular belief – it is not about how much risk you take, it is about how you get paid for the risk you take, or taking on risk responsibly.
Seeing Past Lenses
MVIN is a good illustration of Seeyond’s core belief in pushing the definition of sustainable investing beyond simply applying ESG lenses to investments. Through putting risk first, seeking smarter uses of traditional asset classes, and fostering consistency in investment processes, we believe that a quest for more sustainable return profiles has the potential to positively affect long-term performance, help our clients live better financial lives, and further align investment strategies with the greater good of our communities.
Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results.1 Environmental, social and governance (ESG) investing focuses on investments in companies that demonstrate adherence to environmental, social and governance (ESG) practices, therefore the universe of investments may be reduced. An ESG strategy may sell a security when it could be disadvantageous to do so or forgo opportunities in certain companies, industries, sectors or countries. This could have a negative impact on performance depending on whether such investments are in or out of favor.
2 Ostrum Asset Management U.S., LLC (“Ostrum US”) is the investment subadviser to the Natixis Seeyond International Minimum Volatility ETF. Ostrum US had $409.7B assets under management, and Seeyond oversees 9.8B as of June 30, 2018. Seeyond is operated in the US through Ostrum US
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. Volatility management techniques may result in periods of loss and underperformance, may limit the Fund's ability to participate in rising markets and may increase transaction costs. 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 US securities, due to varying degrees of regulation and limited liquidity. Currency exchange rates between the US dollar and foreign currencies may cause the value of the fund’s investments to decline.
All investing involves risk, including the risk of loss. Diversification does not guarantee a profit or protect against a loss.
Shares of ETFs are not individually redeemable directly with the Fund. Shares are bought and sold on the secondary market at market price, which may be higher or lower than the net asset value (NAV).
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed above may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted.
Before investing, consider the fund's investment objectives, risk, charges, and expenses. Visit im.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. Natixis Distribution, L.P. is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, L.P.
Operated in the US through Ostrum Asset Management U.S., LLC.