Natixis Global Asset Management has launched the Natixis Seeyond International Minimum Volatility ETF (MVIN) on the NYSE Arca.
MVIN is Natixis’ first exchange-traded fund (ETF) available in the US market.
The fund, an actively managed minimum volatility international equity investment strategy, uses the expertise of Seeyond, which is operated in the US through Natixis Asset Management US.
MVIN seeks to reduce risk through an investment process that focuses on the volatility and correlation of individual holdings.
As an active manager, Seeyond will apply manager discretion at all steps of stock selection, including screening and portfolio rebalancing, based on quantitative inputs and qualitative factors.
The investment strategy seeks long-term capital appreciation while lowering the volatility associated with international equities.
“We are excited to bring our active management expertise to the US ETF market,” says John Hailer, CEO of Natixis Global Asset Management for the Americas and head of global distribution. “Investors are increasingly interested in accessing our investment strategies through ETFs, and MVIN provides them an active strategy which can react to market events and seek to take advantage of opportunities with all the potential benefits of an ETF.”
MVIN seeks to improve risk-adjusted returns by actively mitigating equity volatility and exploiting behavioural biases.
In a recent Natixis Global Asset Management Durable Portfolio Construction Research Center survey of financial advisers, 66 per cent of advisors agreed that actively managed strategies are preferred to provide clients with risk-adjusted returns. The survey also showed that nearly 80 per cent of advisors agreed that these strategies will play an increased role in portfolios as volatility increases.
Natixis Asset Management US is sub-adviser to the fund.
The portfolio is co-managed by Nicolas Just, Frederic Babu, Juan Sebastian Caicedo and Alexander Nary.
The net expense ratio for the fund is 0.55 per cent.
