Plan Sponsor Explains 401(k) Investment Selection
Controller explains why the Shelton Group chose the Natixis Sustainable Future Funds® for their 401(k) plan in 2017. **
The Natixis Sustainable Future Funds® are designed for retirement investors who want to generate sustainable long-term returns. The Funds combine a sophisticated “through retirement” allocation glide path and environmental, social, and governance (ESG) considerations with other factors as part of the investment selection process. They are designed to be suitable as a QDIA (qualified default investment alternative) for ERISA plans.
Participants Are Asking for ESG Investments
Competitive Performance Since Inception.†
To view most recent performance, click on the fund names listed below.
16 out of 117 funds
2 out of 89 funds
8 out of 159 funds
1 out of 127 funds
43 out of 202 funds
4 out of 168 funds
42 out of 201 funds
2 out of 168 funds
56 out of 199 funds
6 out of 165 funds
66 out of 201 funds
6 out of 168 funds
68 out of 199 funds
5 out of 165 funds
69 out of 201 funds
2 out of 168 funds
93 out of 199 funds
3 out of 163 funds
52 out of 188 funds
1 out of 141 funds
† As of 03/31/2022. Overall rating derived from weighted average of the 3-, 5- and 10-year (if applicable) Morningstar Rating metrics; other ratings based on risk-adjusted returns. Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results.
We believe that assessing environmental, social and governance factors can help identify investment opportunities as well as risks, consistent with fiduciary standards. The Funds were designed as a potential default investment option for retirement plans.
Christopher Sharpe helps oversee the firm’s model portfolios and is the Lead Portfolio Manager for the Natixis Sustainable Future Funds target date series. Prior to joining the firm, Mr. Sharpe spent 15 years at Fidelity Investments, managing over $225 billion in multi-asset-class mutual funds and institutional accounts. As lead portfolio manager for the Fidelity Freedom Funds he was responsible for portfolio strategy, design, implementation and due diligence. He also served previously as an investment policy officer at John Hancock, managing the investment and asset/liability strategies backing the insurance company's deferred annuities, and as an investment actuary and retirement plan design consultant at Mercer Consulting. Mr. Sharpe holds a bachelor’s degree in applied mathematics from Brown University. He is a CFA® charterholder and a Fellow of the Society of Actuaries.
The Funds’ broadly diversified portfolios are managed by a proven team, using a variety of active and passive investment strategies from experienced managers:
- ESG equity index strategies: Natixis Investment Managers Solutions
- Active equity strategies: Harris Associates, Loomis, Sayles & Company, and WCM Investment Management
- Active fixed income strategies: Loomis, Sayles & Company
- Thematic equity and fixed income strategies: Mirova
The Funds offer an alternative to traditional target date families
Blend of active and passive strategies and diverse styles to pursue more consistent results.
The Natixis Sustainable Future Funds® are designed to help investors build a nest egg for when they plan to retire. Just choose the fund with the year closest to when you think you will start withdrawing your savings – usually around age 65. To help investors prepare for lengthy retirements, the asset allocation focuses on building and retaining assets to – and through – the designated retirement date.
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.
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.
Investments in the Funds are subject to the risks of the underlying funds and separately managed segments.
Update on the Department of Labor’s proposed regulations related to ESG investing in retirement plans.
Portfolio manager Christopher Sharpe reviews trends in target date investing, with a focus on hybrid funds that combine active and passive strategies.
** Kendra Forsythe of the Shelton Group was not paid for her testimonial. Her experience may not be the experience of other customers and is not indicative of future performance or success.
1 Natixis Investment Managers, Survey of US Defined Contribution Plan Participants conducted by CoreData Research, January and February 2019. Survey included 1,000 US workers, 700 being plan participants and 300 being non-participants. Of the 1,000 respondents, 503 were Millennials (age 23-38), 249 were Gen X (age 39-54) and 248 were Baby Boomers (age 55-73).
2 Managers consider ESG factors differently and may use differing approaches to incorporating ESG considerations.
Before investing, consider the fund's investment objectives, risks, charges, and expenses. You may obtain a prospectus or a summary prospectus containing this and other information. Read it carefully.
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For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ used to rank the fund against other funds in the same category. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly excess performance, without any adjustments for loads (front-end, deferred, or redemption fees), placing more emphasis on downward variations and rewarding consistent performance. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star (each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages). Past performance is no guarantee of future results.
Equity securities are volatile and can decline significantly in response to broad market and economic conditions. 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. The Fund’s ESG investment approach could cause the Fund to perform differently compared to funds that do not have such an approach or compared to the market as a whole. The Fund’s application of ESG-related considerations may affect the Fund’s exposure to certain issuers, industries, sectors, style factors or other characteristics and may impact the relative performance of the Fund — positively or negatively — depending on the relative performance of such investments. 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 sub-advisers using different styles which may not always complement each other. This could adversely affect performance and may lead to higher fund expenses.
Natixis Distribution, LLC does not provide legal advice. Please consult with a legal professional prior to making any investing decision.