LSST Offers Investors a Portfolio Building Block that May Help Address Interest Rate Risk
NEW YORK & BOSTON, May 22, 2018 – Natixis Investment Managers and its affiliate, Loomis, Sayles & Company, celebrated the launch of the Natixis Loomis Sayles Short Duration Income ETF (NYSE Arca: LSST) during the Opening Bell ceremony at the New York Stock Exchange this morning. Executives from both firms attended the event, including David Giunta, Natixis Investment Managers’ CEO for the US and Canada, and Loomis Sayles’ chairman and CEO Kevin Charleston. LSST began trading December 28, 2017.
“We are pleased to offer investors the research expertise and renowned security selection of Loomis Sayles in an active ETF structure,” said David Giunta, President and CEO for the US and Canada at Natixis Investment Managers. “A shorter duration product, like LSST, can help mitigate the effects of rising rates while helping to construct a more diverse portfolio.”
LSST is an actively managed, high quality, short-duration ETF managed by Christopher Harms, Cliff Rowe, CFA, and Kurt Wagner, CFA, an experienced team that currently co-manages $21 billion in assets across short- and intermediate-duration and core fixed income strategies at Loomis Sayles (as of March 31, 2018). The management team looks to allocate to various fixed income asset classes depending on their view of risk-adjusted relative value. The team's philosophy is to seek to reduce risk when market compensation is low and take risk when compensation is high.
“The current interest rate environment gives investors a reason to consider allocating to less interest rate sensitive bonds, and more short duration fixed income assets like LSST,” said Chris Harms, Vice President and Co-Head of the Relative Return Team at Loomis Sayles. “Our strategy for credit selection and allocation allows for flexibility and potential additional yield while managing risk exposures, even as monetary policy tightens.”
Other participants in the Opening Bell ceremony included Natixis Investment Managers representatives Ed Farrington, EVP of Retirement Services; Rosa Licea-Mailloux, Deputy General Counsel and Fund Chief Compliance Officer; and Dan Santaniello, EVP of Sales Management. Loomis Sayles representatives included John Gidman, EVP and Chief Operating Officer; David Waldman, EVP and Deputy Chief Investment Officer; John Gallagher, EVP and Director of Institutional Services; and Chris Harms.
For more information on the Natixis Loomis Sayles Short Duration Income ETF, please visit www.im.natixis.com/us/etfs/natixis-loomis-sayles-short-duration-income-etf/LSST
About Natixis Investment Managers
Natixis Investment Managers serves financial professionals with more insightful ways to construct portfolios. Powered by the expertise of 26 specialized investment managers globally, we apply Active ThinkingSM to deliver proactive solutions that help clients pursue better outcomes in all markets. Natixis ranks among the world’s largest asset management firms1 with more than $1 trillion assets under management2 (€818.1 billion AUM).
Headquartered in Paris and Boston, Natixis Investment Managers is a subsidiary of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Investment Managers’ affiliated investment management firms and distribution and service groups include Active Index Advisors®;3 AEW; AlphaSimplex Group; Axeltis; Darius Capital Partners; DNCA Investments;4 Dorval Asset Management;5 Gateway Investment Advisers; H2O Asset Management;5 Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Managed Portfolio Advisors®;3 McDonnell Investment Management; Mirova;6 Ossiam; Ostrum Asset Management; Seeyond;6 Vaughan Nelson Investment Management; Vega Investment Managers; and Natixis Private Equity Division, which includes Seventure Partners, Naxicap Partners, Alliance Entreprendre, Euro Private Equity, Caspian Private Equity;7 and Eagle Asia Partners. Not all offerings available in all jurisdictions. For additional information, please visit the company’s website at im.natixis.com | LinkedIn: linkedin.com/company/natixis-investment-managers.
Natixis Investment Managers includes all of the investment management and distribution entities affiliated with Natixis Distribution, L.P. and Natixis Investment Managers S.A.
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 $266.7 billion in assets (as of March 31, 2018).
Fund Objective: LSST seeks current income consistent with preservation of capital to pursue higher yield potential in short duration yield securities.
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.
Duration is a bond's price sensitivity to interest rate changes.
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.
Before investing, consider the fund's investment objectives, risks, charges, and expenses. Visit im.natixis.com or call 800-225-5478 for a prospectus or a summary prospectus or a summary prospectus containing this and other information. Read it carefully.
Natixis Distribution, L.P. (member FINRA|SIPC) and Loomis, Sayles & Company, L.P. are affiliated.
1 Cerulli 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.
2 Net asset value as of March 31, 2018 is $1.008 trillion. Assets under management (“AUM”), as reported, may include notional assets, assets serviced, gross assets and other types of non-regulatory AUM.
3 A division of Natixis Advisors, L.P.
4 A brand of DNCA Finance.
5 A subsidiary of Ostrum Asset Management.
6 Operated in the US through Ostrum Asset Management U.S., LLC.
7 Caspian Private Equity is a joint venture between Natixis Investment Managers, L.P. and Caspian Management Holdings, LLC.