The first ESG-driven target date mutual funds designed to help plan participants invest for the future with purpose.
Eight out of ten plan participants want their investments to reflect their values.1 Interest in sustainable investing runs strong for these investors, and more than six in ten agreed they would be more likely to contribute or increase their contributions to their retirement plan if they knew their investments were doing social good.1 To solve for this growing demand, Natixis has developed the Natixis Sustainable Future FundsSM – target date funds designed to serve as a qualified default investment alternative (QDIA) for plan sponsors.
What is ESG?
- Key environmental issues on which ESG investments focus include air and water pollution, climate change, carbon emissions, energy efficiency, biodiversity, water scarcity, and waste management.
- Important social issues considered when making ESG investment decisions include human rights, gender and diversity policies, labor standards, employee engagement, customer satisfaction, and community relations.
- Board makeup, executive compensation, corruption policies, lobbyist activities, political contributions, and auditing structure are the primary governance factors scrutinized to assess a company's risk/return potential.
Because risky behavior makes for risky investments. ESG investing aims to build portfolios that deliver competitive returns while also helping to advance environmental, social, and governance concerns. Mirova, known globally for its responsible investing solutions, looks at ESG factors at every step of their investment process. They believe investing in companies with good corporate governance, including fair labor, anti-corruption, and fair business practices, as well as solid environmental standards is more important than ever to avoid portfolio risk.
Target a better world. Mirova's research-intensive approach invests in ESG-minded companies that are targeting global megatrends like Population Growth, Climate Change, Aging Population, and Resource Depletion. Companies solving for the world's biggest issues stand to deliver attractive long-term growth potential, Mirova believes.
Read More About ESG Investing
Choosing a Target Date
A target-date fund is structured to address some date in the future, such as retirement. Our target date fund series simplifies the retirement savings process by providing investors with a single fund in which to invest for wide exposure to different asset classes. Over time, the fund’s asset mix of stocks, bonds, and cash is adjusted by a fund manager according to a selected timeframe appropriate for a particular investor.
Retirement spending years. The potential of outliving retirement savings, also known as longevity risk, is a growing concern as people more and more live well into their 80s and 90s. Natixis Sustainable Future FundsSM are designed with a “through retirement” glidepath, which recalibrates the fund’s underlying asset allocation so as to become more conservative as the investor moves to and through the retirement target date.
Our Sustainable Future Funds Family
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Natixis Sustainable Future FundSM Glide Path
2 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.
Three of Natixis' highly-respected affiliated investment managers are involved in the management of the Natixis Sustainable Future FundsSM: Mirova3 (specialists in ESG/sustainable investing), Loomis, Sayles & Company4 (for its fixed income expertise), and Active Index Advisors®5 (veterans of active indexing).
In addition, this comprehensive retirement vehicle's strategic asset allocation and glidepath is managed by Wilshire Associates. To help participants better save for lengthy retirements, Wilshire developed a proprietary asset allocation technique that focuses on both asset growth and retirement liabilities for a "through retirement" target-date solution.
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. 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 each 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 sub-advisers using different styles which may not always complement each other. This could adversely affect performance and may lead to higher fund expenses.
Investments in the Funds are subject to the risks of the underlying funds and separately managed segments.
1 Natixis Investment Managers, Survey of Defined Contribution Plan Participants compiled by CoreData Research, July 2016. Survey included 991 individuals in the US with access to a workplace defined contribution retirement savings plan. Respondents included 661 active participants and 300 non-participants.
3 Mirova operates in the US through Natixis Investment Managers.
4 Loomis, Sayles & Company, L.P. is not an advisor or subadvisor to the Natixis Sustainable Future FundsSM but manages underlying mutual funds that are part of the Funds’ fixed income allocation.
5 Active indexing refers to a type of investment management where a portfolio manager bases the portfolio's initial investment proportions according to a specific benchmark index in which the manager is attempting to track, and then actively adds or subtracts security positions for tax management or other client-specific purposes.
Natixis Distribution, L.P. does not provide legal advice. Please consult with a legal professional prior to making any investing decision.
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.