- This is an extremely unique market. We are seeing massive selloffs in the equity markets, a rally in fixed income markets, the dollar going back and forth, and a massive selloff in commodities.
- Global volatility has been rising at an exceptional pace.
- Market uncertainty is at levels that we have not seen since 2008.
- How managed futures tends to behave in crisis:
- We are currently in crisis. If we see this continue to extend, we have the ability to adjust positions and capture these prolonged trends.
- We are starting to see crisis alpha type opportunities.
- The AlphaSimplex Managed Futures strategy focuses on trend following. We take a systematic approach by following long and short trends across global futures markets for a wide range of assets, including currencies, commodities, equities and fixed income.
Leverage can increase market exposure and magnify investment risk. Futures and forward contracts, like other derivatives, can involve a high degree of risk and may result in unlimited losses. Because they depend on the performance of an underlying asset, they can be highly volatile and are subject to market, credit, and counterparty risks. Short exposures using derivatives may present various risks. If the value of the asset, asset class or index on which the Fund holds short investment exposure increases, the Fund will incur a loss. The potential risk of loss from a short exposure is theoretically unlimited, and there can be no assurance that securities necessary to cover a short position will be available for purchase. Equity securities are volatile and can decline significantly in response to broad market and economic conditions. 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. Commodity-related investments, including derivatives, may be affected by a number of factors including commodity prices, world events, import controls, and economic conditions and therefore may involve substantial risk of loss. Currency exchange rates between the US dollar and foreign currencies may cause the value of the fund’s investments to decline. Interest rate risk is a major risk to all bondholders. As rates rise, existing bonds that offer a lower rate of return decline in value because newly issued bonds that pay higher rates are more attractive to investors. Concentrated investments in a particular region, sector, or industry may be more vulnerable to adverse changes in that industry or the market as a whole.
No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Visit im.natixis.com or call 800-862-4863 for a prospectus or a summary prospectus containing this and other information. Read it carefully.
This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary. The views and opinions expressed are as of March 13, 2020 and may change based on market and other conditions.
Natixis Distribution, L.P. (Member FINRA | SIPC) is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.