Natixis Global Asset Management announced today that it has acquired Gateway Investment Advisers, a Cincinnati-based investment manager with $7.9 billion in assets under management (as of December 31, 2007), including the $4.3 billion Gateway Fund (GATEX), as well as a variety of subadvised mandates and private accounts. Transaction terms were not disclosed.
Along with the acquisition, it was announced that the Gateway Fund (GATEX) has been reorganized as a member of the Natixis Funds family, with the same name, investment strategy and portfolio management and will be available for purchase through financial intermediaries.
“Gateway’s conservative, risk-conscious approach can complement many investors’ portfolios,” said John T. Hailer, president and chief executive officer – U.S. and Asia, Natixis Global Asset Management. “Given growing market volatility, we believe it’s important not only to provide solutions that help investors build wealth but also to provide solutions that help them preserve it – an objective to which Gateway’s hedged equity strategy is well suited.”
Gateway Investment Advisers is known for its risk-conscious investment approach that seeks to capture the majority of the return associated with equity market investments while exposing investors to lower risk and volatility than other equity investments. The firm’s strategy is to invest in a broadly diversified common stock portfolio and manage risk by selling cash settled index call options and purchasing index put options. Gateway’s strategy is designed to take advantage of premium cash flows generated from the sale of index call options which generally increase as a function of increasing market volatility.
“We are very pleased to be affiliated with a global financial organization of the size and stature of Natixis,” said Gateway President and Chief Executive Officer J. Patrick Rogers. “With this partnership, Gateway gains access to a broader distribution base and prospects for a higher growth rate than was possible as an independent organization.”
In accord with the Natixis multi-boutique business model, Gateway will continue to operate autonomously. The firm will retain its brand name and its Cincinnati headquarters. The Gateway investment team will remain in place and will continue to implement the firm’s hedged equity strategy. Representing Natixis Global Asset Management as advisor in the acquisition was Merrill Lynch & Company. Gateway was represented by Mitchell Advisers of Atlanta.
About Gateway Investment Advisers
Founded in 1977, Gateway Investment Advisers, L.P. has one of the industry’s longest-running option hedging programs. Noted for its accomplishment in hedging client portfolios during the market crash of October 1987, the firm extended its hedging strategy to its flagship mutual fund, Gateway Fund, in January 1988. The firm’s hedged equity offerings include two open-end mutual funds, four closed-end funds and one offshore fund, as well as individual, foundation, endowment, pension and insurance accounts.
About Natixis Global Asset Management
Natixis Global Asset Management is one of the 15 largest asset managers in the world(1) based on assets under management. Its affiliated asset management companies provide investment products that seek to enhance and protect the wealth and retirement assets of both institutional and individual investor clients. Its proprietary distribution network helps package and deliver its affiliates’ products around the world. Natixis Global Asset Management brings together the expertise of multiple specialized investment managers based in Europe, the United States and Asia to offer a wide spectrum of equity, fixed income and alternative investment strategies.
Headquartered in Paris and Boston, Natixis Global Asset Management’s assets under management totaled $869 billion (€591 billion) as of December 31, 2007. Natixis Global Asset Management is part of Natixis, the investment and project bank of the Banque Populaire and Caisse d’Epargne groups. Its affiliated investment management firms and distribution and service groups include: AEW Capital Management; AlphaSimplex Group; Capital Growth Management; Caspian Capital Management; Gateway Investment Advisers; Hansberger Global Investors; Harris Alternatives; Harris Associates; Loomis, Sayles & Co.; Natixis Global Associates; Reich & Tang Capital Management; Reich & Tang Funds; Snyder Capital Management; Vaughan Nelson Investment Management; and Westpeak Global Advisors. In addition to the U.S. firms, Natixis Global Asset Management includes four principal affiliates based in Paris: Natixis Asset Management, Natixis Multimanager, AEW Europe and Ecureuil Gestion.
About Natixis
Natixis, the “investments and projects bank,” is the jointly held bank of Caisse d’Epargne and Banque Populaire and is active in corporate and investment banking, asset management, private equity and private banking, financial services and receivables management. Backed by nearly 23,000 employees, with net banking income of €7.3 billion, it is a major player in its sector in Europe. Natixis is recognized worldwide for its expertise in credit insurance (ranked third worldwide), private equity and structured finance (including real estate, commodities, asset-backed finance and leveraged finance)