Natixis Investment Managers to Close the Natixis Loomis Sayles Short Duration Income ETF (NYSE: LSST)

Rhea-AI Summary

Natixis Investment Managers has announced the liquidation and closure of the Natixis Loomis Sayles Short Duration Income ETF (NYSE: LSST). Key dates include:

• September 16, 2024: Last day for creation unit purchases
• September 25, 2024: Final trading day on NYSE Arca
• September 26, 2024: Fund delisting
• September 30, 2024 (approx.): Liquidation date and distribution of proceeds to shareholders

Shareholders can sell their shares on NYSE Arca until market close on September 25, 2024. The Fund will gradually increase cash holdings and deviate from its investment objective during the liquidation process. For more information, shareholders can call 1-800-458-7452.

Positive

• Shareholders will receive a liquidation distribution based on the current net asset value of their shares

Negative

• The Natixis Loomis Sayles Short Duration Income ETF (LSST) is being liquidated and closed
• The Fund will no longer pursue its investment objective during the liquidation process
• Shareholders may incur transaction fees if selling shares before the liquidation date

Insights

Financial Analyst

The closure of the Natixis Loomis Sayles Short Duration Income ETF (LSST) is a strategic move by Natixis Investment Managers, likely driven by underperformance or lack of investor interest. This decision reflects the competitive nature of the ETF market, where funds that fail to attract sufficient assets or deliver competitive returns are often liquidated. For existing shareholders, the liquidation process is well-structured, providing ample time for investors to sell their shares or await the liquidation distribution. The $1.87 million in assets under management as of July 2023 suggests the fund struggled to gain traction. This closure highlights the importance of regularly reviewing portfolio holdings and being prepared for potential fund closures in the ETF space. Investors should be aware of the tax implications of forced liquidations and consider their options carefully before the September 25, 2024 deadline.

Market Research Analyst

The liquidation of LSST signals a broader trend in the ETF industry towards consolidation and optimization of product offerings. With over 3,000 ETFs in the U.S. market, fund closures are becoming more common as issuers streamline their lineups. The short duration bond ETF space is particularly competitive, with giants like Vanguard and iShares dominating. Natixis' decision likely stems from difficulty in differentiating LSST and attracting assets in this crowded field. This move allows Natixis to reallocate resources to more successful or promising products. For the wider market, this closure reinforces the importance of liquidity and scale in ETF success. Investors should pay attention to an ETF's assets under management, trading volume and expense ratio when selecting funds, as these factors can indicate long-term viability and potential for closure risk.

BOSTON--(BUSINESS WIRE)--

Natixis Investment Managers (Natixis IM) announced today that it will liquidate and close the Natixis Loomis Sayles Short Duration Income ETF (NYSE: LSST). The decision was made by the Board of Trustees of the Natixis ETF Trust on the recommendation of the Fund’s adviser, Natixis Advisors, LLC.

Proceeds of the liquidation are currently expected to be sent to shareholders of the Fund on or about September 30, 2024 (the liquidation date). Effective as of the close of business on September 16, 2024, the Fund will no longer accept orders for the purchase of creation units. It is expected that the final day of trading for the Fund on NYSE Arca will be on September 25, 2024, and subsequently will be delisted on September 26, 2024.

In connection with the liquidation, any shares of the Fund outstanding on the liquidation date will be automatically terminated and canceled on the liquidation date. After payment (or setting aside for later payment) of the Fund’s obligations, shareholders who remain in the Fund until the liquidation date will receive a liquidation distribution based on the current net asset value of the shares of the Fund that such shareholder then holds. The Fund may or may not, depending upon its circumstances, pay one or more dividends or other distributions prior to or along with the liquidation payment on the liquidation date.

Shareholders of the Fund may sell their shares of the Fund on the NYSE Arca until the market close on September 25, 2024, and may incur customary transaction fees from their broker-dealer in connection with such sales. There is not expected to be any market for the purchase or sale of the Fund’s shares during the time between market close on September 25, 2024, and the liquidation date. During the time between September 13, 2024, and the liquidation date, the Fund will be in the process of closing down and liquidating its portfolio. This process will result in the Fund increasing its cash holdings and, as a consequence, not pursuing its investment objective.

For more information, shareholders of the Fund may call 1-800-458-7452.

FUND LIQUIDATION:

FUND NAME	TICKER	EXCHANGE
Natixis Loomis Sayles Short Duration Income ETF	LSST	NYSE Arca, Inc.

Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Visit im.natixis.com/ETFs for a prospectus or a summary prospectus containing this and other information. Read it carefully.

ALPS Distributors, Inc. is the distributor of the Natixis Loomis Sayles Short Duration Income ETF. Natixis Distribution, LLC is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, LLC.

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 | Oakmark; 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 Survey respondents ranked by Investment & Pensions Europe/Top 500 Asset Managers 2024 ranked Natixis Investment Managers as the 19^th largest asset manager in the world based on assets under management as of December 31, 2023.
² Assets under management (“AUM”) of current affiliated entities measured as of June 30, 2024, are $1,320.8 billion (€1,232.3 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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View source version on businesswire.com: https://www.businesswire.com/news/home/20240912751874/en/

Press:

Kelly Cameron

+ 1 617-449-2543

Kelly.Cameron@natixis.com

Source: Natixis Investment Managers

FAQ

When will the Natixis Loomis Sayles Short Duration Income ETF (LSST) stop trading?

The final day of trading for LSST on NYSE Arca will be September 25, 2024.

What is the expected liquidation date for the Natixis Loomis Sayles Short Duration Income ETF (LSST)?

The expected liquidation date for LSST is on or about September 30, 2024.

Can shareholders still sell their LSST shares before the liquidation date?

Yes, shareholders can sell their LSST shares on NYSE Arca until market close on September 25, 2024, potentially incurring customary transaction fees.

What happens to LSST shares after the liquidation date?

Any outstanding LSST shares on the liquidation date will be automatically terminated and canceled, with shareholders receiving a liquidation distribution based on the current net asset value.