Natixis Global Associates this week will announce an expansion of its retirement business, including the appointment of Tracey Flaherty, formerly of
Bank of America Corp. and
Fidelity Investments, to senior vice president of retirement strategy, a new post.
She will be charged with expanding Natixis' defined contribution and individual retirement account rollover businesses, as well as broadening its retirement solutions and educational programs, which are expected to be introduced to advisers in a few months.
"We want to take what's been done in the past and take it to the next level," said David Giunta, president and chief executive of Natixis Global Associates' U.S. operations. "We want to be viewed as the firm to go to for retirement solutions."
Natixis has ownership interests in such well known management companies as Harris Associates LP of Chicago, Loomis Sayles & Co. LP of Boston, Reich & Tang Funds of New York and others.
Headquartered in Paris, Natixis Global Asset Management had $890 billion in assets under management as of June 30; Natixis Global Associates managed $85 billion in assets. Of that, $13.9 billion was defined contribution assets, up from $4.4 billion in 2003.
Observers say Natixis' decision to move into the retirement market will be a challenge.
"They are a late entrant," said Geoff Bobroff, a Greenwich, R.I.-based mutual fund consultant. "They and everybody else in the industry are focused on retirement. It's an uphill battle. Many have already committed themselves to a company."
"It's not a slam-dunk for anybody getting into the marketplace today," said Howard Schneider, president of Practical Perspectives LLC, an industry consulting firm based in Boxford, Mass. "There's lots of competition."
Perhaps, but there's a lot of business to go around, Mr. Giunta says.
"We don't believe we are late to the game," he said. "While other firms have already begun this process, no firm has completely cracked the code. We are uniquely suited to address the needs of the financial adviser community due to our long track record in successfully servicing this industry."
Cerulli Associates Inc. of Boston said retirement assets will grow to $22.5 trillion by 2012, a sizable pool, according to Mr. Giunta. IRA rollover contributions are expected to grow to $472 billion in the same time period, he added.
Part of the company's strategy involves developing more educational materials and seminars for financial advisers, he said, adding that his firm plans to leverage the capabilities of its group of boutique asset managers and develop more solution-based offerings for retirement.
"So much of it is about solutions now, as opposed to individual funds," Mr. Giunta said.
Other U.S. managers in which Natixis holds an interest include: AEW Capital Management LP of Boston, AlphaSimplex Group LLC of Cambridge, Mass., Capital Growth Management LP of Boston, Caspian Capital Management LLC of New York, Delafield Asset Management of New York, Gateway Investment Advisers LLC of Cincinnati, Global Investment Advisors of New York, Hansberger Global Investors Inc. of Fort Lauderdale, Fla., Harris Alternatives LLC of Chicago, Snyder Capital Management LP of San Francisco, Vaughan Nelson Investment Management LP of Houston and Westpeak Global Advisors LP of Boulder, Colo.
Natixis also intends to explore new products. They do not currently offer target date funds or managed-payout funds. "We are looking at all options," Mr. Giunta said.
Advisers would likely welcome additional options. More ideas for portfolio construction are needed, said Cern Basher, chief investment officer at Madison Wealth Management in Cincinnati, which manages $150 million in assets.
"It's a big challenge to structure a portfolio to meet someone's lifetime income needs," Mr. Basher said. "We are looking for more-thoughtful solutions that really work."
To compete, performance may be the most important component, Mr. Schneider said.
"You've got to have the product and the performance," he said. "[Natixis has] some clear advantages, compared to other firms. Loomis Sayles, for example, has done very well. They have some strong managers. And in their separate-account business, they have done a good job."
Natixis has many good managers but needs to distinguish itself in order to compete in the retirement market, Mr. Bobroff said.
E-mail Sue Asci at [email protected].
