NATIXIS expands US asset management business
NATIXIS Asset Management US Group is to acquire Gateway Investment Advisers, a Cincinnati-based investment manager with USD7.5 billion in assets under management (as of March 31, 2007), including the Gateway Fund, as well as a variety of sub-advised mandates and private accounts. Terms of the transaction have not been disclosed and completion of the transaction is subject to customary closing conditions, including obtaining any necessary regulatory and other approvals.
Gateway is best known for a risk-adjusted investment approach that seeks to capture the majority of the higher returns associated with equity market investments while exposing investors to significantly less risk and volatility than other equity investments. The firm's strategy is to invest in a broadly diversified common stock portfolio and manage risk and volatility downward by selling cash settled index call options and purchasing index put options.
"Gateway fills an important niche in the NATIXIS family of investment companies, and we are very happy they have chosen to join us," says Pierre Servant, head of the asset management business at NATIXIS and president and chief executive of IXIS Asset Management US Group. "Gateway enjoys a highly competitive long-term track record based on a well-tested risk management methodology. We expect demand for its style of risk-adjusted investment products to be strong and growing, particularly in the rapidly expanding retirement market."
In line with the NATIXIS multi-boutique business model, Gateway will operate as an autonomous organization. The firm will retain its brand name and continue to be headquartered in Cincinnati. The investment team will remain in place and will continue to implement the firm's hedged equity strategy.
"We are very excited about the opportunities we see arising out of our new relationship with NATIXIS, particularly the chance to reach a significantly broadened client base through their distribution organizations in the asset management business," says Gateway President and Chief Executive Officer J Patrick Rogers. "We have been very impressed with the consistently high level of achievement so many of the other NATIXIS affiliates have compiled in the course of their affiliation."
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