BOSTON and CINCINNATI--(BUSINESS WIRE)--Natixis Investment Managers (Natixis IM) and Gateway Investment Advisers, LLC (Gateway), a pioneer in options-based investment strategies, today announced that the Natixis Gateway Quality Income ETF (GQI) has recently surpassed $100 million in assets. The ETF was launched on December 13, 2023, and has generated a return of 11.43% since inception through June 30, 2024.
This actively managed, income-generating equity ETF seeks to deliver current income in the range of 8-12% per year while maintaining prospects for capital appreciation by combining a factor-based, high-quality focused equity portfolio with the characteristics of an index-option selling overlay program. GQI is available for purchase on several major independent platforms, through select regional broker-dealer firms, and on all major custodial platforms.
“We are delighted with the rapid investor adoption of GQI, Gateway’s first ETF, in recognition of our team’s decades of experience helping clients reduce the risks of stock market investing through actively managed options-based equity strategies,” said Michael T. Buckius, CFA®, CIO of Gateway, and co-portfolio manager of GQI. “Gateway is proud to offer this actively managed ETF for investors who seek consistent income and wish to remain invested in the stock market.”
“The explosive growth of GQI in six short months demonstrates that investors are starving for simple products that solve complex problems. As an active, income-producing ETF, GQI allows investors to stay invested in the stock market – especially important in these volatile times – while offering consistent income,” said Nicholas Elward, SVP and head of institutional product and ETFs at Natixis Investment Managers. “We have long believed in Gateway’s index option-based low-volatility equity strategies, and we’re thrilled that GQI has become such a standout strategy in the portfolios of risk-conscious investors and retirees looking for income.”
Gateway uses a multifactor quantitative model to construct and manage GQI’s stock portfolio. The model evaluates U.S. exchange-traded equities and seeks to maximize exposure to quality characteristics while considering issuer and sector exposures, among other constraints and considerations. The equity portfolio generally consists of approximately 75-125 securities, and can include U.S. exchange-listed common stocks, preferred stocks, American Depositary Receipts, and investment companies (including ETFs).
1 As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or expenses (with certain exceptions) once the expense limitation of the fund has been exceeded. This arrangement is set to expire on 4/30/26. When an expense limitation has not been exceeded, the gross and net expense ratios and/or yields may be the same.
The features of an actively managed options overlay program are built into the GQI strategy and are designed to generate consistent monthly income for investors. Replicating the characteristics of a laddered portfolio of one-month, near-the-money S&P 500® Index call options sold on a rolling weekly basis, the options overlay is implemented on 50 percent of GQI’s equity portfolio to balance capital appreciation with income.
Day-to-day management of GQI is the responsibility of Gateway’s Daniel M. Ashcraft, Vice President and Portfolio Manager; Michael T. Buckius, CEO, CIO, President and Portfolio Manager; Kenneth H. Toft, Senior Vice President and Portfolio Manager; and Mitchell J. Trotta, Portfolio Manager. Together, the team averages 20 years of tenure with Gateway. GQI’s primary listing venue is the New York Stock Exchange (NYSE).
About Gateway Investment Advisers
Based in Cincinnati, Ohio, Gateway Investment Advisers, LLC (Gateway) specializes in quantitatively driven equity portfolio management and index options-based investing. Since 1977, the firm has maintained consistent focus on reducing the risk of equity investing and enhancing cash flow with option strategies. Gateway’s core low-volatility strategy seeks to capture the majority of the returns associated with equity market investments, while exposing investors to less risk than other equity investments. The firm, which has been an affiliate of Natixis Investment Managers since 2008, had approximately $9.1 billion in assets under management as of March 31, 2024.
About Natixis Investment Managers
Natixis Investment Managers’ multi-affiliate approach connects clients to the independent thinking and focused expertise of more than 15 active managers. Ranked among the world’s largest asset managers1 with more than $1.3 trillion assets under management2 (€1.2 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; 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; 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 2023 ranked Natixis Investment Managers as the 17th largest asset manager in the world based on assets under management as of December 31, 2022.
2 Assets under management (“AUM”) of current affiliated entities measured as of March 31, 2024, are $1,321.9 billion (€1,224.9 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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Average annualized total returns (%) † as of 6/30/2024
|
3 months |
YTD |
Since Inception (12/13/23) |
ETF (NAV) |
2.42 |
9.28 |
11.43 |
ETF (Market Price) |
2.36 |
9.44 |
11.43 |
S&P 500® Index |
4.28 |
15.29 |
18.51 |
Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com. An exchange-traded fund’s market price is the price at which shares in the ETF can be bought or sold on the exchanges during trading hours, while the net asset value (NAV) represents the value of each share’s portion of the fund’s underlying assets and cash at the end of the trading day. ETFs calculate the NAV at 4 p.m. ET, after the markets close. †Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. You may not invest directly in an index.
Investment Strategy Risks
Exchange-Traded Funds (ETFs) trade like stocks, are subject to investment risk, and will fluctuate in market value. Unlike mutual funds, ETF shares are not individually redeemable directly with GQI and are bought and sold on the secondary market at market price, which may be higher or lower than the ETF's net asset value (NAV). 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 GQI attempts to track or replicate. Thus, the ability of GQI 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.
Investments in Equity-Linked Notes (ELNs) are subject to liquidity risk, which means there may not be an active market for ELNs which would prevent them from being sold at a fair price. Since ELNs are in note form, they are subject to certain debt securities risks, such as credit or counterparty risk. Should the prices of the underlying instruments move in an unexpected manner, GQI may not achieve the anticipated benefits of an investment in an ELN, and may realize losses, which could be significant and could include GQI’s entire principal investment.
Options may be used for hedging purposes, but also entail risks related to liquidity, market conditions and credit that may increase volatility. The value of GQI's positions in options may fluctuate in response to changes in the value of the underlying asset. Selling call options may limit returns in a rising market.
Equity securities are volatile and can decline significantly in response to broad market and economic conditions.
GQI is new with a limited operating history.
Definitions
The S&P 500® Index is a widely recognized measure of US stock market performance. It is an unmanaged index of 500 common stocks chosen for market size, liquidity, and industry group representation, among other factors; it also measures the performance of the large-cap segment of the US equities market. You may not invest directly in an index.
Before investing, consider GQI’s investment objectives, risks, charges, and expenses. Visit https://www.im.natixis.com/en-us/products/exchange-traded-funds for a prospectus or a summary prospectus containing this and other information. Read it carefully.
Natixis Advisors, LLC is the adviser and Gateway Investment Advisers, LLC is the subadvisor for the Natixis Gateway Quality Income ETF.
ALPS Distributors, Inc. is the distributor of the Natixis Gateway Quality Income ETF. Natixis Distribution, LLC is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, LLC.
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