The Exciting World of Active Non-Transparent ETFs, According to Natixis

A new type of investment structure is making investors take note: active non-transparent ETFs.

ETF Trends spoke with Nick Elward, Senior VP and Head of Institutional Product and ETFs at Natixis Investment Managers, to discuss Natixis’ foray into active non-transparent ETFs.

Back in December, Natixis received SEC approval to launch a new active non-transparent ETF structure, making them one of five providers to have received approval for this new type of ETF product.

As Elward states, “Natixis is excited about entering the active non-transparent ETF market, with an innovative ETF intended to potentially offer strong investment returns, tax efficiency and cost effectiveness.”

Elward continued, “Natixis researched several ways to potentially bring these innovative ETFs to market, including spending months in due diligence, and ultimately deciding to work with the New York Stock Exchange (NYSE). The NYSE’s service model is a great balance between transparency, a long-held benefit of ETFs, and non-transparency. Specifically, the model allows portfolio managers to provide transparency where they can, such as on stocks where they are not active, and non-transparency where it’s necessary, such as on stocks on which they are establishing or changing a position. Beyond the strength of the approach, NYSE is a strong strategic partner in terms of offering educational support and ETF ecosystem expertise to Natixis and to our investors.”

To expand a bit further on the opportunity, as noted by an article written by Natixis’ Kyle DeTullio, “With trillions of dollars of assets currently residing in active mutual funds, it is not hard to envision widespread investor interest in active non-transparent ETF products, given that they have the ability to combine the portfolio management know-how of skilled portfolio managers with the potential benefits offered by the ETF vehicle.”

Find more information regarding Natixis’ work in the actively managed ETF space in this full article from their website.