Natixis Vaughan Nelson Select ETF (VNSE) Celebrates Three Year Anniversary

Rhea-AI Summary

Natixis IM and Vaughan Nelson celebrate three-year anniversary of Natixis Vaughan Nelson Select ETF

Positive

• Natixis Vaughan Nelson Select ETF has reached its three-year anniversary
• The ETF is a high-active share, concentrated portfolio of equity stocks
• The ETF seeks to capitalize on information and liquidity inefficiencies in the large cap universe
• The management team uses rigorous bottom-up research to find investment opportunities
• The strategy is also available in a mutual fund format and separately managed accounts

Negative

• None.

• A large cap equity strategy that seeks strong risk-adjusted returns by employing a disciplined investment process focused on stocks with significant upside potential

• A high active share, concentrated portfolio of 20 to 40 stocks, with security selection acting as the largest source of alpha¹

• 5-Star Overall Morningstar Rating™ among 1,286 Funds in the Large Blend category, as of Sept. 30, 2023

^{- Overall rating derived from weighted average of the 3-year Morningstar Rating metrics; other ratings based on risk-adjusted returns.}

BOSTON & HOUSTON--(BUSINESS WIRE)-- Natixis Investment Managers (Natixis IM) and Vaughan Nelson Investment Management (Vaughan Nelson), announce the three-year anniversary of the Natixis Vaughan Nelson Select ETF (VNSE), an active, high-conviction U.S. stock ETF. The ETF is among the $15.1 billion managed by Vaughan Nelson, a Houston-based affiliate of Natixis IM, which has more than $1.2 trillion of assets under management (AUM) globally.

Launched on September 16, 2020, the Natixis Vaughan Nelson Select ETF is a high-active share, concentrated portfolio of equity stocks that seeks to capitalize on information and liquidity inefficiencies in the large cap universe to pursue strong risk adjusted returns for investors. The ETF’s management team deploys rigorous bottom-up research to find opportunities to invest in companies that offer the potential for asymmetrically positive returns driven by idiosyncratic factors.

“We believe that strong investor interest in the Natixis Vaughan Nelson Select ETF demonstrates a continuing desire for true active management in the face of eroding diversification in the broader stock market,” said Chris Wallis, CFA® and CPA, CEO and CIO of Vaughan Nelson Investment Management and senior portfolio manager. “Our research-intensive process, emphasizing balance sheets and cash flow-based projections, seeks to place capital with companies that will use it best and aims to generate the level of return that can help our clients offset future liabilities.”

Scott Weber, CFA®, Senior Portfolio Manager of equity investments, has been the lead manager on the ETF since inception alongside co-portfolio manager Wallis. To provide flexibility and choice for investors, the same strategy is also available in a mutual fund format through the Vaughan Nelson Select Fund (VNSYX), and, for eligible financial advisors and their clients, in separately managed accounts offered by Natixis Investment Managers.

About Vaughan Nelson Investment Management

Founded in 1970, Vaughan Nelson is a Houston-based investment manager with $15.1 billion under management as of June 30, 2023. A globally recognized boutique affiliate of Natixis Investment Managers, S.A., Vaughan Nelson manages six equity products and four domestic fixed income products. Vaughan Nelson focuses on managing active investment strategies that are relevant today and in the future.

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 $1.2 trillion assets under management² (€1.1 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 June 30, 2023 are $1,230.1 billion (€1,127.5 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.

Morningstar Ratings and Rankings (as of 9/30/2023)

Large Blend Category	Overall	3 years
Morningstar Rating (based on risk-adjusted returns)	* * * * *	* * * * *
# of Funds in Category	Out of 1,286 funds	Out of 1,286 funds

Morningstar rankings for the Natixis Vaughan Nelson Select ETF (VNSE) in the Large Blend category are as of September 30, 2023. The fund’s total return percentile rank for the specified time period is relative to all funds that have the same Morningstar category. The highest (or most favorable) percentile rank 1, and the lowest (or least favorable) percentile rank is 100. Rankings are subject to change monthly. Morningstar rankings do not include the effect of sales charges.

Morningstar Star Rating Methodology

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10- year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

© 2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Risks

Equity securities are volatile and can decline significantly in response to broad market and economic conditions. Non-diversified funds invest a greater portion of assets in fewer securities and therefore may be more vulnerable to adverse changes in the market. Value investing carries the risk that a security can continue to be undervalued by the market for long periods of time.

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 the Fund 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 Fund attempts to track or replicate. Thus, the ability of the Fund 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.

This ETF is different from traditional ETFs – traditional ETFs tell the public what assets they hold each day; this ETF will not. This may create additional risks. For example, since this ETF provides less information to traders, they may charge you more money to trade this ETF's shares. Also, the price you pay to buy or sell ETF shares on an exchange may not match the value of the ETF's portfolio. These risks may be even greater in bad or uncertain markets. See the ETF prospectus for more information. The differences between these ETFs and other ETFs may also have advantages. By keeping certain information about the ETFs secret, these ETFs may face less risk that other traders can predict or copy its investment strategy. This may improve the ETFs’ performance. If other traders are able to copy or predict the ETFs’ investment strategy, however, this may hurt the ETFs’ performance. For additional information regarding the unique attributes and risks of these ETFs, see the discussion on the Proxy Portfolio and the “Proxy Portfolio Structure Risk,” “Authorized Participant Concentration Risk,” “Predatory Trading Practices Risk,” “Premium/Discount Risk,” and “Trading Issues Risk” within the prospectus.

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 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 for the Natixis Vaughan Nelson Select ETF. Natixis Distribution, LLC is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, LLC.

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1} Alpha is a measure of the difference between a portfolio's actual returns and its expected performance, given its level of systematic market risk. A positive alpha indicates outperformance and negative alpha indicates underperformance relative to the portfolio's level of systematic risk.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231017559007/en/

Press:

Denise Robbi

508-523-4067

drobbiarena@gmail.com

Kelly Cameron

617-449-2543

Kelly.Cameron@natixis.com

Source: Natixis Investment Managers

FAQ

What is the Natixis Vaughan Nelson Select ETF?

The Natixis Vaughan Nelson Select ETF is an active, high-conviction U.S. stock ETF that seeks strong risk-adjusted returns.

When was the ETF launched?

The ETF was launched on September 16, 2020.

What is the investment strategy of the ETF?

The ETF seeks to capitalize on information and liquidity inefficiencies in the large cap universe to pursue strong risk-adjusted returns.

Who manages the ETF?

The ETF is managed by Chris Wallis, CEO and CIO of Vaughan Nelson Investment Management, and Scott Weber, Senior Portfolio Manager of equity investments.

Is the strategy available in other formats?

Yes, the same strategy is also available in a mutual fund format through the Vaughan Nelson Select Fund and in separately managed accounts offered by Natixis Investment Managers.