BOSTON & SAN FRANCISCO, November 10, 2022 – Natixis Investment Managers Solutions is celebrating the 20-year anniversary of its AIA S&P 500® direct indexing strategy. Launched in November 2002, Active Index Advisors Strategies – the direct indexing business of Natixis Investment Managers Solutions – has grown from $4 million in assets under management (AUM) to nearly $8 billion today, and the flagship AIA S&P 500® strategy has tracked its benchmark index to within 12 basis points annualized since inception, outperforming on an after-tax basis by over 370 basis points on an average annualized basis.

The strategy is a part of Natixis Investment Managers Solutions Direct Indexing business and seeks to outperform on an after-tax basis, while providing a pre-tax return similar to the S&P 500® Index. Each separately managed account is unique and can incorporate existing holdings and stock restrictions. Key features include consistent and diversified exposure to the S&P 500® Index, a proprietary stratified sampling methodology to represent the index with a subset of stocks, and customization at the individual account level.

”For 20 years we have been dedicated to providing investors with customized, active indexing strategies that help our clients to maximize their after-tax returns while addressing their unique needs, such as ESG considerations or concentrated equity positions,” said Curt Overway, Co-Head of Natixis Investment Managers Solutions. “Direct indexing has gained substantial visibility in recent months, so we are proud to have one of the longest and most consistent track records of all direct indexers in the market, and we are proud to celebrate its 20-year anniversary.”

Natixis Investment Managers Solutions Direct Indexing provides fully customizable SMAs aligned to a variety of indices, spanning different market capitalization segments and geographic regions. These separately managed account portfolios can be customized for tax purposes, to align with investor values and concerns, to tilt towards factors, or a combination of objectives. All accounts are actively managed and provide beta exposure to an index.

“Investors have become more sophisticated and attuned to the impact of taxes on their investments, while others have shown increasing interest in customizing for ESG or other values,” said Kevin Maeda, Chief Investment Officer, Direct Indexing, Natixis Investment Managers Solutions. “Every account is unique and seeks to maximize the after-tax return for each individual investor, something conventional index mutual funds and ETFs are unable to do. Direct Indexing provides a great solution for clients looking for a highly customizable portfolio.”


Performance Overview (as of 9/30/2022)

AIA S&P 500® (Large Cap) Strategy

Period returns1 (Gross %) – Maximum Federal and State Tax Rates

  AIA S&P 500® Pre-Tax S&P 500® Index Pre-Tax Pre-Tax Difference AIA S&P 500® After-Tax S&P 500® Index After-Tax After-Tax Difference Tax Alpha
3 Months -4.88 -4.88 0.00 -3.83 -5.23 1.40 1.40
YTD -23.37 -23.87 0.50 -18.17 -24.71 6.54 6.04
1 Year -14.84 -15.47 0.63 -8.77 -16.74 7.98 7.35
3 years 7.73 8.16 -0.43 12.24 6.50 5.74 6.18
5 Years 9.32 9.24 0.08 12.67 7.59 5.08 4.99
10 Years 11.41 11.70 -0.29 13.45 10.21 3.24 3.53
Since Inception (11/2002) 9.54 9.42 0.12 12.10 8.35 3.75 3.63

Period returns1 (Net %)2 – Maximum Federal and State Tax Rates

  AIA S&P 500® Pre-Tax S&P 500® Index Pre-Tax Pre-Tax Difference AIA S&P 500® After-Tax S&P 500® Index After-Tax After-Tax Difference Tax Alpha
3 Months -5.61 -4.88 -0.73 -4.81 -5.12 0.31 1.04
YTD -25.13 -23.87 -1.26 -21.30 -24.43 3.13 4.39
1 Year -17.40 -15.47 -1.93 -12.94 -16.31 3.37 5.30
3 years 4.56 8.16 -3.61 8.02 7.09 0.93 4.53
5 Years 6.11 9.24 -3.13 9.13 8.17 0.96 4.09
10 Years 8.14 11.70 -3.56 10.55 10.67 -0.12 3.44
Since Inception (11/2002) 6.32 9.42 -3.10 9.36 8.68 0.68 3.78

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results.
Gross performance does not take into account transaction costs, investment advisory fees, custody fees, or other expenses that were charged to clients’ accounts or deductions for income taxes. The pure gross of fees returns are supplemental information. After-tax returns are only applicable to taxable accounts. The net performance reflects the deduction of investment advisory fees charged to client accounts, as well as transactional fees. Such fees will reduce investment performance over time. Indexes are not investments and do not incur fees and expenses and are not professionally managed. It is not possible to invest directly in an index.
1 Performance for less than one year is not annualized.
2 The assumed model bunded fee used is 3.0% retroactively applied since inception.
After-Tax growth calculated using the maximum federal and state tax rates.

Investment Risks: All securities are subject to risk, including possible loss of principal. Please read the risks associated with each investment prior to investing. Detailed discussions of each investment’s risks are included in Part 2A of each firm’s respective Form ADV. The investments highlighted in this presentation may be subject to certain additional risks. The views and opinions expressed may change based on market and other conditions. This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary.

This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted. Actual results may vary.


About Natixis Investment Managers Solutions
Natixis Investment Managers Solutions1 provides design, development and execution of portfolio strategies tailored to specific investment objectives and unique portfolio constraints. Fully integrated services combine investment expertise with portfolio analysis and construction capabilities to deliver a wide range of customized solutions and $45.2 billion in Assets2, 33 investment professionals, and 20 years of solutions partnerships.

1 A division of Natixis Advisors, LLC. Natixis Advisors, LLC is one of the independent asset managers affiliated with Natixis Investment Managers.
2 Assets under administration ("AUA") as of June 30, 2022. AUA, as reported, may include assets for which non-Regulatory AUM services are provided. NonRegulatory AUM includes assets which do not fall within the SEC's definition of Regulatory AUM in Form ADV, Part 1.


About Natixis Investment Managers
Natixis Investment Managers' multi-affiliate approach connects clients to the independent thinking and focused expertise of more than 20 active managers. Ranked among the world's largest asset managers1 with more than $1.1 trillion assets under management2 (€1.1 trillion), Natixis Investment Managers delivers a diverse range of solutions across asset classes, styles, and vehicles, including innovative environmental, social, and governance (ESG) strategies and products dedicated to advancing sustainable finance. The firm partners with clients in order to understand their unique needs and provide insights and investment solutions tailored to their long-term goals.

Headquartered in Paris and Boston, Natixis Investment Managers is part of the Global Financial Services division of Groupe BPCE, the second-largest banking group in France through the Banque Populaire and Caisse d'Epargne retail networks. Natixis Investment Managers' affiliated investment management firms include AEW; AlphaSimplex Group; DNCA Investments;3 Dorval Asset Management; Flexstone Partners; Gateway Investment Advisers; Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Mirova; MV Credit; Naxicap Partners; Ossiam; Ostrum Asset Management; Seeyond; Seventure Partners; Thematics Asset Management; Vauban Infrastructure Partners; Vaughan Nelson Investment Management; and WCM Investment Management. Additionally, investment solutions are offered through Natixis Investment Managers Solutions and Natixis Advisors, LLC. Not all offerings are available in all jurisdictions. For additional information, please visit Natixis Investment Managers' website at im.natixis.com | LinkedIn: linkedin.com/company/natixis-investment-managers.

Natixis Investment Managers' distribution and service groups include Natixis Distribution, LLC, a limited purpose broker-dealer and the distributor of various US registered investment companies for which advisory services are provided by affiliated firms of Natixis Investment Managers, Natixis Investment Managers S.A. (Luxembourg), Natixis Investment Managers International (France), and their affiliated distribution and service entities in Europe and Asia.

1 Cerulli Quantitative Update: Global Markets 2022 ranked Natixis Investment Managers as the 18th largest asset manager in the world based on assets under management as of December 31, 2021.

2 Assets under management (“AUM”) of current affiliated entities measured as of June 30, 2022 are $1,156.7 billion (€1,106.7 billion). AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.

3 A brand of DNCA Finance.

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