Natixis Acquires McDonnell to Broaden Fixed-Income Offerings

Plans are now in the works for a Natixis launch of a municipal bond product in early 2013

Natixis Global Asset Management announced Tuesday that it has signed an acquisition pact with McDonnell Investment Management in a deal that will allow Natixis to broaden its fixed income offerings.

McDonnell, an Oak Brook, Ill.-based investment advisor, had approximately $13.5 billion in assets under management (AUM) for institutions and individuals as of Sept. 30. Natixis, one of the world’s largest asset management companies, is headquartered in Boston and Paris and had AUM totaling $711 billion as of June 30.

As a new Natixis affiliate, McDonnell is expected to expand the fixed-income product range distributed through the larger firm’s global distribution network. For example, plans are now in the works for a Natixis launch of a municipal bond product in early 2013.

“Bringing McDonnell’s fixed income and municipal bond expertise into the NGAM family is a positive step toward fulfilling a critical need for clients who are focused on durable portfolio construction,” said Natixis CEO Pierre Servant in a statement. “McDonnell has consistently demonstrated the entrepreneurial spirit, innovation and solid performance that are all hallmarks of our family of affiliates.”

As part of Natixis’ multi-affiliate business model, McDonnell will continue to operate autonomously with no change in management or professional staff. The firm is a registered investment advisor providing investment management services to institutions, private clients and mutual fund companies and is known for its expertise and specialization in-fixed income investment management.

In addition to separate account portfolios, the firm subadvises three municipal bond funds and offers one private investment fund focused on international bonds.

"We are very pleased to be affiliated with a global financial organization of this size and stature," said Edward Treichel, president and CEO of McDonnell, in a statement. "With this partnership, McDonnell gains greater access to the capital required to continue to serve our clients, build our business and to pursue new product opportunities."

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