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.
Sustainable Investments May Encourage Greater Retirement Savings
The 2023 Natixis Defined Contribution Plan Participant Survey found that adding ESG (Environmental, Social, Governance) investment options can be a major incentive for boosting plan participation.
83% believe companies that focus on sustainable business practices present significant growth opportunities for their investments1
73% say they would be more likely to participate or increase their contributions if offered investments in companies with good ESG practices1
92% of Millennials would like to see more sustainable investments in their workplace retirement offering1
Competitive Performance Since Inception†
To view most recent performance, click on the fund names listed below.
52 out of 108 funds
15 out of 102 funds
23 out of 135 funds
6 out of 129 funds
43 out of 196 funds
24 out of 178 funds
18 out of 108 funds
14 out of 176 funds
25 out of 189 funds
19 out of 175 funds
59 out of 192 funds
37 out of 176 funds
64 out of 189 funds
32 out of 175 funds
72 out of 190 funds
38 out of 176 funds
86 out of 189 funds
49 out of 175 funds
45 out of 184 funds
4 out of 157 funds
† As of 09/30/2023. 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, Christopher 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. Christopher 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.
Results from the 2023 Natixis Survey of Defined Contribution Plan Participants show American workers are feeling the weight of responsibility for retirement funding and they have strong preferences for the kind of help they want.
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 2023 Natixis Investment Managers Survey of US Defined Contribution Plan Participants conducted by CoreData Research, January and February 2023. Survey included 736 US workers, 587 being plan participants and 149 being non-participants. Of the 736 respondents, 362 were Millennials (age 27–42), 166 were Gen X (age 43–58) and 208 were Baby Boomers (age 59 and above).
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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The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product 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. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10- year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
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.