Natixis Investment Managers has received approval from the Securities Exchange Commission (SEC) for the use of custom baskets in actively managed semi-transparent exchange-traded funds (ETFs) that follow the New York Stock Exchange (NYSE)’s Proxy Portfolio Methodology approach.
Previously, Natixis active semi-transparent ETFs were required to disclose proxy portfolios that closely track the fund’s actual intraday portfolio performance on a daily basis. This new approval from the SEC enables Natixis to create custom baskets that contain securities not included, or securities in different weights than are in the fund’s Proxy Portfolio when creating or redeeming shares. The use of custom baskets for active semi-transparent ETFs has the potential to reduce trading costs, increase efficiency, and improve secondary markets for the shares.
“This is part of our team’s ongoing commitment to improve investors’ experience by continuing to innovate in the ETF market,” says David Giunta, CEO at Natixis Investment Managers. “Ultimately, investors will continue to have access to highly skilled active managers while benefiting from even lower costs and more tax-efficient investment options.”
“Today’s approval is another step forward in the NYSE’s efforts to optimise product development and innovation in the active ETF market. Access to custom baskets significantly improves the operational efficiency of the NYSE Proxy Portfolio Methodology, which will result in cost-saving benefits for both asset managers and end investors,” says Douglas Yones, Head of Exchange Traded Products at the NYSE.
Natixis Investment Managers entered the active semi-transparent ETF market in September 2020 with the launch of the Natixis US Equity Opportunities ETF (EQOP), Natixis Vaughan Nelson Mid Cap ETF (VNMC), and Natixis Vaughan Nelson Select ETF (VNSE), listed on NYSE Arca, Inc.