Natixis Sustainable Future Funds: Weathering the Pandemic
Portfolio Manager Christopher Sharpe discusses how target date funds can make it easier for investors to stay the course in changing markets.
- Target date funds offer a well-diversified investment strategy tailored to the retirement time horizon of each investor.
- Managing risk and volatility is key to making it easier for investors to stay the course during inevitable market drawdowns.
- The Natixis Sustainable Future Funds performed as designed during the first quarter 2020 market downturn.
- Active manager selection and asset allocation offer opportunities for the funds to outperform the broad market indexes.
The views and opinions expressed may change based on marker and other conditions. There can be no assurance that developments will transpire as forecasted. Actual results may vary.
Fixed income securities may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity. Equity securities are volatile and can decline significantly in response to broad market and economic conditions. Sustainable investing focuses on investments in companies that relate to certain sustainable development themes and demonstrate adherence to environmental, social and governance (ESG) practices; therefore the Fund's universe of investments may be reduced. It may sell a security when it could be disadvantageous to do so or forgo opportunities in certain companies, industries, sectors or countries. This could have a negative impact on performance depending on whether such investments are in or out of favor. Foreign and emerging market securities may be subject to greater political, economic, environmental, credit, currency and information risks. Foreign securities may be subject to higher volatility than US securities, due to varying degrees of regulation and limited liquidity. These risks are magnified in emerging markets. Mortgage-related and asset-backed securities are subject to the risks of the mortgages and assets underlying the securities. Other related risks include prepayment risk, which is the risk that the securities may be prepaid, potentially resulting in the reinvestment of the prepaid amounts into securities with lower yields. Inflation protected securities move with the rate of inflation and carry the risk that in deflationary conditions (when inflation is negative) the value of the bond may decrease. Multi-manager funds may be managed by several subadvisors using different styles which may not always complement each other. This could adversely affect performance and may lead to higher fund expenses.
The Funds are designed for investors who will be age 65 around the year indicated in each Fund's name. When choosing a Fund, investors who anticipate retiring significantly earlier or later than age 65 may want to select a Fund closer to their anticipated retirement year. Besides age, there may be other considerations relevant to fund selection, including personal circumstances, risk tolerance and specific investment goals.
Each fund's asset allocation becomes increasingly conservative as it approaches the target date and beyond. Allocations may deviate plus or minus 10% from their targeted percentages.
Investments in the Funds are subject to the risks of the underlying funds and separately managed segments. Principal invested is not guaranteed against losses. It is possible to lose money by investing in the Funds, including at and after the Funds' target date.
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Past performance is no guarantee of, and not necessarily indicative of, future results.