Natixis Global Asset Management, one of the 15 largest asset managers in the world based on assets under management, launched a new municipal bond fund on Wednesday.
Headquartered in Paris and Boston, Natixis has a total of $734 billion of assets under management as of Sept. 30. The company is a subsidiary of BPCE, France’s second largest banking group.
The new fund, called the McDonnell Intermediate Municipal Bond Fund, is a disciplined and flexible strategy seeking attractive risk-adjusted investment opportunities across sectors and securities, the company said.
“We are pleased to offer the McDonnell Intermediate Municipal Bond Fund as an additional option as investors evaluate their investment goals and build durable portfolios for the long term,” said David Giunta, president and chief executive officer of Natixis — U.S. Distribution. “We are launching this fund in direct response to investors and advisors who have told us they are seeking the benefits of a municipal bond fund.”
The fund is broadly diversified by issuer, state, and sector and focuses on high-quality national municipal bonds with maturities ranging primarily from three to 15 years.
Natixis said the fund’s high-quality investment approach may help to limit credit and interest rate risk while primarily generating federal tax-free income.
The new fund will be managed by Dawn Mangerson, vice president and senior portfolio manager; James Grabovac, managing director and senior portfolio manager; Lawrence Jones, portfolio manager; and Steve Wlodarski, managing director and co-head of fixed income portfolio management.
The managers average over 25 years of experience in the investment industry and have worked together for over 10 years.
The launch of the fund comes shortly after Natixis acquired fixed-income asset manager McDonnell Investment Management, LLC. The acquisition was announced in October and closed on Dec. 31.
“Municipal bonds have been one of the bright spots in this market, offering good relative value and income that is generally exempt from taxation,” said Edward Treichel, president and chief executive officer at McDonnell. “Our new fund provides a research-based vehicle for individuals to gain exposure to this important asset class.”
McDonnell is a registered investment advisor providing investment management services to institutions, private clients and mutual fund companies.
Located in Oak Brook, Illinois, McDonnell has approximately $13.5 billion in assets under management for individuals and institutions, as of Sept. 30.