Institutional Investment Strategies

Access a wide spectrum of strategies and customized solutions from our affiliated managers, some of the most respected names in equities, fixed income, and alternative investments.

AEW Capital Management     AlphaSimplex Group     Flexstone Partners     Gateway Investment Advisers     Harris Associates

Mirova     MV Credit     Vaughan Nelson Investment Management     WCMLogo 140px 424

Through client conversations and insight from our annual Natixis Global Survey of Institutional Investors, we have noticed similar concerns and challenges facing institutions. Among the most common, are:

  • More volatility in 2020: Could it significantly throw my risk budget off?
  • Extended low yield environment: Are portfolios ready for potential asset bubbles?
  • Late cycle, higher valuations: Need for maximum diversification – private investments, market cap, style, geography, factor.
  • Return/risk management: Traditional fixed income no longer fulfills a dual mandate.
Focus on greater diversification
Projections for greater volatility in 2020 suggest the potential for allocations to risk-mitigating and diversifying strategies. Allocating into private assets was also captured in the latest institutional investor survey. Delivering diversification (62%) and generating more attractive returns (61%) are the top reasons cited for turning to private markets.*
Possible substitute and diversification opportunities
Getting the balance right is a critical component of institutional portfolio strategy. While we certainly do not pretend to have all of the answers, we do have numerous ideas to share. For example, the table below includes three equity beta-reducing strategies to consider for today’s complex markets.

Risk-Mitigating Category

Objective

Type

Manager
Equity substitute Manage equity volatility while maintaining upside potential Minimum volatility Seeyond
Equity complement Reduce equity volatility while maintaining market exposure Equity Call/Put Writing Gateway
Equity diversifier Diversify away equity risk and enhance downside protection at the expense of equity upside Managed Futures AlphaSimplex

Actively managed investment capabilities
Many of our active asset managers offer investment strategies that produce high active share, tend to be high conviction, concentrated, alpha-oriented, and risk minded. Also, investments listed below may be available in varying vehicles, including separate accounts, CITs, mutual funds, and active ETFs.** Please talk to your Natixis consultant for more specific information.

Active Equities

  • High-conviction/concentrated
  • Across geography/market
  • Emerging markets
  • Sustainable/ESG-driven
  • Custom index-based solutions
  • Factor-based
  • Long/short
  • Low volatility equity
  • International and global growth equity

Gateway Investment Advisers      Harris Associates      Mirova      Vaughan Nelson Investment Management  WCMLogo 140px 424

Fixed Income

  • Absolute return
  • Across geography/market
  • Sustainable/ESG-driven
  • Liability-driven investing
  • Green bonds
  • Tax-advantaged/taxable

Mirova

Alternatives

  • Crisis risk offset
  • Managed futures
  • Multi-asset solutions
  • Equity risk offset/hedged equity
  • Alternative risk premia
  • Volatility control

AlphaSimplex Group      Gateway Investment Advisers

Private Markets

  • Real assets
  • Infrastructure
  • Private equity
  • Private credit
  • Real estate
  • Sustainable
  • Structured products
  • Direct lending

AEW Capital Management     Flexstone Partners     MV Credit

ESG-Driven, Sustainable

  • Thematic global equities
  • Global green bonds
  • ESG-driven target date funds
  • Voting and engagement services
  • Custom index-based solutions
  • Impact investing

Mirova

Integrated Portfolio Implementation

  • Services for OCIOs
  • Rebalancing/overlay services

Natixis Advisors

Flexstone Partners was established in 2018 by bringing together four specialized private investments firms: Caspian Private Equity, Euro-Private Equity France, Euro-Private Equity Swiss and Eagle Asia Partners. Flexstone Partners is the global name which comprises of the four affiliated entities, but the entity registered to provide any services in the US is Flexstone Partners, LLC (NY affiliate).

Mirova is operated in the US through Mirova US, LLC (Mirova US).

Seeyond operates in the US through a participating affiliate arrangement with Natixis Advisors, LLC.

WCM: Effective April 5, 2019, Natixis Investment Managers owns 24.9% of WCM Investment Management.

All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed-income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

* Natixis Investment Managers, Global Survey of Institutional Investors conducted by CoreData Research in October and November 2019. Survey included 500 institutional investors in 29 countries throughout North America, Latin America, the United Kingdom, Continental Europe, Asia and the Middle East.

** Not all offerings available in all jurisdictions.

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