SEC Company Response from Natixis Funds Trust IV (CIK 0001095726) — May 25, 2021
Natixis Funds Trust IV (CIK 0001095726)
Date: May 25, 2021 · CIK: 0001095726 · Accession: 0001683863-21-003749
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File numbers found in text: 811-09945
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CORRESP 1 filename1.htm May 25, 2021 U.S. Securities and Exchange Commission Division of Investment Management 100 F Street, NE Washington, DC 20549-0504 Attention: Elena Stojic, Esq. VIA EDGAR Re: Registrant: Natixis Funds Trust IV File No.: 811-09945 Filing Type: Form N-1A Dear Ms. Stojic: This letter responds to comments of the staff (the "Staff") of the Securities and Exchange Commission (the "Commission") received by telephone on May 18, 2021, regarding the post-effective amendment to Natixis Funds Trust IV (the "Registrant") registration statement on Form N-1A for each of the Natixis Sustainable Future Funds (each a "Fund" and together the "Funds"), which was filed with the Commission on April 1, 2021 (the "Registration Statement"). For your convenience, we have summarized each comment below, followed by the Registrant's response. Any term that is used, but not defined, in this letter retains the same meaning as used by the Registrant in the Registration Statement. Unless otherwise noted, comments and responses relate to each Fund. Please note that the Registration Statement is scheduled to become effective automatically on June 1, 2021. Prospectus – Item 4 Disclosure 1.Comment. Please provide within the correspondence the completed Fund Fees, Expense tables, performance and complete bracketed information for each Fund. Response. The Registrant has included completed Fund Fees, Expense tables, performance and complete bracketed information for each Fund below: Natixis Sustainable Future 2015 Fund® Fund Fees & Expenses The following table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in this table. Shareholder Fees (fees paid directly from your investment) Class N Class Y Maximum sales charge (load) imposed on purchases (as a percentage of offering price) None None Maximum deferred sales charge (load) (as a percentage of original purchase price or redemption proceeds, as applicable) None None Redemption fees None None Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Class N Class Y Management fees 0.14% 0.14% Distribution and/or service (12b-1) fees 0.00% 0.00% Other expenses 2.49% 2.59%1 Acquired fund fees and expenses 0.24% 0.24% Total annual fund operating expenses 2.87% 2.97% Fee waiver and/or expense reimbursement2 2.32% 2.37% Total annual fund operating expenses after fee waiver and/or expense reimbursement 0.55% 0.60% 1Other expenses are estimated for the current fiscal year, as this share class is not currently available for purchase. 2Natixis Advisors, L.P. (the "Adviser") has given a binding contractual undertaking to the Fund to limit the amount of the Fund's total annual fund operating expenses, including expenses of the underlying funds in which the Fund invests, to 0.55% and 0.60% of the Fund's average daily net assets for Class N and Y shares, respectively, exclusive of brokerage expenses, interest expense, taxes, organizational and extraordinary expenses, such as litigation and indemnification expenses. This undertaking is in effect through May 31, 2022 and may be terminated before then only with the consent of the Fund's Board of Trustees. The Adviser will be permitted to recover, on a class-by-class basis, management fees waived and/or expenses reimbursed to the extent that expenses in later periods fall below the applicable expense limitation for Class N and Y shares. The Fund will not be obligated to repay any such waived/reimbursed fees and expenses mor e than one year after the end of the fiscal year in which the fees or expenses were waived/reimbursed. Example This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods (except where indicated). The example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same, except that the example is based on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement assuming that such waiver and/or reimbursement will only be in place through the date noted above and on the Total Annual Fund Operating Expenses for the remaining periods. The example does not take into account brokerage commissions and other fees to financial intermediaries that you may pay on your purchases and sales of shares of the Fund. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class N $ 56 $ 669 $ 1,307 $ 3,027 Class Y $ 61 $ 694 $ 1,353 $ 3,120 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes for you if your Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During its most recently ended fiscal year, the Fund's portfolio turnover rate was 61% of the average value of its portfolio. Risk/Return Bar Chart and Table The bar chart and table shown below provide some indication of the risks of investing in the Fund by comparing the Fund's one-year and life-of-fund performance with a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available online at im.natixis.com and/or by calling the Fund toll-free at 800-225-5478. Total Returns for Class N Shares Highest Quarterly Return: Second Quarter 2020, 11.42% Lowest Quarterly Return: First Quarter 2020, -9.34% The Fund's Class N shares total return year-to-date as of March 31, 2021 was 2.02%. Average Annual Total Returns Life of Fund (for the periods ended December 31, 2020) Past 1 Year (2/28/17) Return Before Taxes 13.41% 9.59% Return After Taxes on Distributions 8.47% 6.99% Return After Taxes on Distributions and Sale of Fund Shares 9.54% 6.75% S&P Target Date 2015® Index 10.28% 7.65% Natixis Sustainable Future 2020 Fund® Fund Fees & Expenses The following table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in this table. Shareholder Fees (fees paid directly from your investment) Class N Class Y Maximum sales charge (load) imposed on purchases (as a percentage of offering price) None None Maximum deferred sales charge (load) (as a percentage of original purchase price or redemption proceeds, as applicable) None None Redemption fees None None Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Class N Class Y Management fees 0.16% 0.16% Distribution and/or service (12b-1) fees 0.00% 0.00% Other expenses 3.27% 3.37%1 Acquired fund fees and expenses 0.23% 0.23% Total annual fund operating expenses 3.66% 3.76% Fee waiver and/or expense reimbursement2 3.11% 3.16% Total annual fund operating expenses after fee waiver and/or expense reimbursement 0.55% 0.60% 1Other expenses are estimated for the current fiscal year, as this share class is not currently available for purchase. 2Natixis Advisors, L.P. (the "Adviser") has given a binding contractual undertaking to the Fund to limit the amount of the Fund's total annual fund operating expenses, including expenses of the underlying funds in which the Fund invests, to 0.55% and 0.60% of the Fund's average daily net assets for Class N and Y shares, respectively, exclusive of brokerage expenses, interest expense, taxes, organizational and extraordinary expenses, such as litigation and indemnification expenses. This undertaking is in effect through May 31, 2022 and may be terminated before then only with the consent of the Fund's Board of Trustees. The Adviser will be permitted to recover, on a class-by-class basis, management fees waived and/or expenses reimbursed to the extent that expenses in later periods fall below the applicable expense limitation for Class N and Y shares. The Fund will not be obligated to repay any such waived/reimbursed fees and expenses mor e than one year after the end of the fiscal year in which the fees or expenses were waived/reimbursed. Example This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods (except where indicated). The example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same, except that the example is based on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement assuming that such waiver and/or reimbursement will only be in place through the date noted above and on the Total Annual Fund Operating Expenses for the remaining periods. The example does not take into account brokerage commissions and other fees to financial intermediaries that you may pay on your purchases and sales of shares of the Fund. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class N $ 56 $ 831 $ 1,627 $ 3,711 Class Y $ 61 $ 856 $ 1,671 $ 3,798 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes for you if your Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During its most recently ended fiscal year, the Fund's portfolio turnover rate was 95% of the average value of its portfolio. Risk/Return Bar Chart and Table The bar chart and table shown below provide some indication of the risks of investing in the Fund by comparing the Fund's one-year and life-of-fund performance with a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available online at im.natixis.com and/or by calling the Fund toll-free at 800-225-5478. Total Returns for Class N Shares Highest Quarterly Return: Second Quarter 2020, 12.20% Lowest Quarterly Return: First Quarter 2020, -10.93% The Fund's Class N shares total return year-to-date as of March 31, 2021 was 2.98%. Average Annual Total Returns Life of Fund (for the periods ended December 31, 2020) Past 1 Year (2/28/17) Return Before Taxes 14.32% 10.41% Return After Taxes on Distributions 5.92% 6.76% Return After Taxes on Distributions and Sale of Fund Shares 10.81% 7.10% S&P Target Date 2020® Index 10.24% 8.03% Natixis Sustainable Future 2025 Fund® Fund Fees & Expenses The following table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in this table. Shareholder Fees (fees paid directly from your investment) Class N Class Y Maximum sales charge (load) imposed on purchases (as a percentage of offering price) None None Maximum deferred sales charge (load) (as a percentage of original purchase price or redemption proceeds, as applicable) None None Redemption fees None None Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Class N Class Y Management fees 0.17% 0.17% Distribution and/or service (12b-1) fees 0.00% 0.00% Other expenses 2.40% 2.50%1 Acquired fund fees and expenses 0.23% 0.23% Total annual fund operating expenses 2.80% 2.90% Fee waiver and/or expense reimbursement2 2.24% 2.29% Total annual fund operating expenses after fee waiver and/or expense reimbursement 0.56% 0.61% 1Other expenses are estimated for the current fiscal year, as this share class is not currently available for purchase. 2Natixis Advisors, L.P. (the "Adviser") has given a binding contractual undertaking to the Fund to limit the amount of the Fund's total annual fund operating expenses, including expenses of the underlying funds in which the Fund invests, to 0.56% and 0.61% of the Fund's average daily net assets for Class N and Y shares, respectively, exclusive of brokerage expenses, interest expense, taxes, organizational and extraordinary expenses, such as litigation and indemnification expenses. This undertaking is in effect through May 31, 2022 and may be terminated before then only with the consent of the Fund's Board of Trustees. The Adviser will be permitted to recover, on a class-by-class basis, management fees waived and/or expenses reimbursed to the extent that expenses in later periods fall below the applicable expense limitation for Class N and Y shares. The Fund will not be obligated to repay any such waived/reimbursed fees and expenses more than one year after the end of the fiscal year in which the fees or expenses were waived/reimbursed. Example This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods (except where indicated). The example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same, except that the example is based on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement assuming that such waiver and/or reimbursement will only be in place through the date noted above and on the Total Annual Fund Operating Expenses for the remaining periods. The example does not take into account brokerage commissions and other fees to financial intermediaries that you may pay on your purchases and sales of shares of the Fund. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 year 3 years 5 years 10 years Class N $ 57 $ 655 $ 1,279 $ 2,965 Class Y $ 62 $ 681 $ 1,325 $ 3,058 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes for you if your Fun