Portfolio Evaluation for 4 Macro Outlooks | Natixis Investment Managers

Gain clarity for your allocation strategy no matter where you stand

Economic data and macro narratives have been driving significant performance differences across asset classes. How you look at the world and where you think the economy will evolve has a sizable impact on your allocation decisions. You probably have a view, but are you seeing a path forward? For greater clarity, our Portfolio Analysis & Consulting Team follows a proprietary methodology called Cyclicality vs. Inflation Analysis. It provides a different perspective on allocation by scoring portfolio exposure to specific asset classes, sectors, and industries that are likely to perform best in specific economic environments.

Explore which sectors tend to outperform during different macro environments.

Soft Landing

Growth stays resilient and inflation comes under control
Reflation

Growth stays resilient but inflation remains sticky
Hard Landing

Growth slows and inflation comes under control
Stagflation

Growth slows and inflation remains sticky

Fixed Income:
Spreads compress, Treasury yields fall

Equity:
Favors cyclical growth sectors

Intermediate and Long-Term Corporates

Emerging Market Debt

High Yield Municipal Bonds

Consumer Discretionary

Technology

Fixed Income:
Spreads compress, Treasury yields rise

Equity:
Favors cyclical sectors

Bank Loans

High Yield Corporates

Financials

Industrials

Materials

Energy

Fixed Income:
Spreads expand, Treasury yields fall

Equity:
Favors defensive growth sectors

Intermediate and Long-Term Treasuries

Agency MBS

Municipal Bonds

Communication Services

Health Care

Fixed Income:
Spreads expand, Treasury yields rise

Equity:
Favors defensive sectors

Short-Term Treasuries

Money Market

Real Estate

Utilities

Consumer Staples

Health Care

What Style Boxes Can’t Tell You

Adding exposures that align with your outlook may help build a more resilient portfolio. Conversely, if you have holdings concentrated in a scenario you don’t expect to occur, you may want to consider some reallocation options. This proprietary methodology was developed and vetted by a 10-member Investment Committee at Natixis Investment Managers Solutions. It’s the same institutional-quality analysis applied to the model portfolios it manages on behalf of some of the world’s largest wealth managers.

Portfolio Evaluation: How Does Yours Stack Up?

Why not schedule an objective portfolio evaluation with a member of our experienced Portfolio Analysis and Consulting Team? They use sophisticated diagnostic tools to help identify diversification and yield opportunities and stress test your portfolio for numerous macro scenarios using their proprietary methodology. Call 800-862-4863 to set up an evaluation, or contact us.