• GQI – the first ETF in Gateway’s 47-year history – has blazed
a path to $100 million owing to new flows, cash flow from options
trading strategies, and price appreciation of its equity
holdings
• Gateway Investment Advisers, LLC has exclusively focused on
options-based strategies to manage risk and generate cash flow
since 1977; the investment management team has almost 100
cumulative years of industry experience
• GQI’s net expense ratio is only 0.34% (gross expense ratio is
0.58%1) making it one of the most competitively priced ETFs in this
space
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.
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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.
________________________________________________________________
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.
6791746.1.1
NTX000755
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Press Contacts: Denise Robbi
617-449-2544 Denise.Robbi@natixis.com
Kelly Cameron 617-449-2543 Kelly.Cameron@natixis.com