Natixis Model Portfolio Program

The Natixis Investment Managers Solutions – US model portfolio program seeks to address a range of investor goals and offers benefits including:

  • Broad network of investment managers
  • Strategic diversification
  • Consistent, reliable implementation
  • Systematic risk management

Capabilities

Natixis IM Solutions has more than 15 years of experience creating and managing multi-asset model portfolios for many types of investors. The model portfolios are managed by a robust team of analysts and portfolio managers with diverse investment experience.

The portfolio managers believe that while financial markets exhibit certain relatively consistent and stable characteristics over the long term, they present periods of dislocation, momentum and other inefficiencies over the short term.

  • Each model portfolio uses a risk-managed allocation framework that guides exposures to maximize desired outcomes.
  • Management teams select individual investment strategies based on specific merits, while also considering compatibility and fit with the other portfolio strategies.
  • The model portfolios combine active and passive investment strategies to allow for flexibility related to timeframe, liquidity, cost, and type of exposure.

Strategies – Specialized model portfolios, managed with a consistent process.

Model Approachmodel
Core – Intended as a primary investment portfolio

Completion – Built to complement a core portfolio and provide exposure to a specific asset class

Thematic – Target a specifc theme, such as ESG investing

 

Construction Approach construction
Quantitative – Use a systematic, rules-based process for asset allocation

Fundamental – Use asset class, market and macroeconomic assumptions to select assets

 

Allocation Approach allocation
Dynamic – Asset allocation focuses on short-term opportunities

Strategic – Asset allocation focuses on long-term opportunities

 

Models – A series of portfolios for conservative, moderate and aggressive investors.

Quantitative Core

Dynamic Core

  • Risk-managed portfolios driven by clear and consistent rules.
  • Seek to maximize return efficiency by allocating to asset classes exhibiting high Sharpe ratio momentum.
Conservative • Moderately Conservative • Moderate • Moderately Aggressive • Aggressive

Risk-Efficient

  • Risk-managed portfolios that can be used as a core holding or as a complement to fundamental investments.
  • Each portfolio has three sleeves: tactical, strategic core, and alternatives.
Conservative • Moderate • Aggressive

Fundamental Core

Tactical Core – Taxable

  • Portfolios of actively managed funds that express tactical asset class views with ETF exposure.
  • Allocations adjusted monthly, based on asset class and market opportunities, with a goal of maximizing return with reasonable risk.
Conservative •  Moderately Conservative • Moderate • Moderately Aggressive • Aggressive

Tactical Core – Tax Aware

  • Portfolios of actively managed funds that express tactical asset class views with ETF exposure.
  • Allocations are adjusted monthly, based on asset class and market opportunities, with a goal of maximizing return with reasonable risk and limiting tax impact.
Conservative •  Moderately Conservative • Moderate • Moderately Aggressive • Aggressive

Completion

Alternative Completion

  • Quantitative portfolios providing alternatives exposure to complement a traditional equity / fixed income core.
  • Each model aligns with the risk profile of the core portfolio, using volatility targeting for a seamless fit.
Conservative • Moderate • Aggressive

Thematic

ESG/Sustainable

  • Portfolios that factor environmental, social, and governance considerations into the investment process.

Risk-Efficient Income

  • Risk-managed, quantitative income-oriented portfolio
  • Portfolio has three sleeves: tactical, strategic core, and alternatives
Risk tolerance is the driving force behind investment decision making, so risk is always the starting point for our portfolio construction and asset allocation decisions.

~ Marina Gross
Executive Vice President and Portfolio Manager, Natixis IM Solutions

Insights

Building a Suite of Model Portfolios for Clients

Explore the pros and cons of four distinct methods of model portfolio construction: customized, optimized, straight line, and straight line thematic.

Building Better Models Requires a Consistent Risk Framework

Amid interest rate uncertainty and evidence of slowing growth, the most effective model portfolios may be those that prioritize risk management.

Using Factor Analysis to Build Better Portfolios

Identifying a portfolio’s risk factors – the underlying investment exposures that drive returns – is a critical step in the asset allocation process.

Alternative Allocations Tailored to Specific Investment Objectives

Overview of alternative investment solutions designed for alpha differentiation, volatility management, downside mitigation, and interest rate mitigation.
  • January 23, 2019

Asset Allocator’s Guide to Equity Beta-Reducing Strategies

Equity substitutes, equity complements, and equity diversifiers. All of these strategies may play a role in risk mitigation, but they do so in different ways.


Contact Us

Financial Professionals: To learn more about Natixis Model Portfolios, download the Model Program Overview Brochure or contact your Natixis Investment Managers sales representative.

Call 800-862-4863


Related Capabilities

Natixis Portfolio Clarity®

Analysis and insight for better portfolio construction – Natixis Portfolio Clarity® is the portfolio consulting service of Natixis Investment Managers.

Overlay Management Solutions

For advisors, managers and institutional clients focused on harmonizing their separate accounts, we offer a wide range of managed account options to address unique tax considerations, portfolio implementation concerns and customized plan requirements through our managed accounts division, Managed Portfolio Advisors® (MPA).

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 Advisors, L.P. provides discretionary advisory services through its divisions Active Index Advisors® and Managed Portfolio Advisors® and Natixis Investment Managers Solutions - U.S. Discretionary advisory services are generally provided with the assistance of model portfolio providers, some of which are affiliates of Natixis Investment Managers, L.P.

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