Learn how ESG-driven target date funds allow plan participants to align their investment strategy with their personal values.
82 percent of plan participants surveyed want their investments to reflect their personal values.
Interest in ESG (Environmental, Social, Governance) and sustainable investing runs strong for plan participants, according to Natixis' 2016 Survey of Defined Contribution Plan Participants2. In fact, 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. This desire to invest for more meaningful returns should only intensify in the coming years as Millennials (age 18-34) will constitute a larger portion of the workforce. To solve for this growing demand, Natixis has developed the Natixis Sustainable Future Funds. The funds are intended to serve as a qualified default investment alternative (QDIA) option for plan sponsors.
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.
Why more corporations and governments are going green, areas of expansion, and what exactly makes a green bond green.
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 are living well into their 80s and 90s. Natixis Sustainable Future Funds is designed with a "through retirement" glidepath (a formula that defines an asset allocation mix of a target date fund, becoming more conservative as the date approaches). A "through" approach helps address longevity risk by continuing asset allocation well into retirement.
|Natixis Sustainable Future 2015 Fund|
|Natixis Sustainable Future 2020 Fund|
|Natixis Sustainable Future 2025 Fund|
|Natixis Sustainable Future 2030 Fund|
|Natixis Sustainable Future 2035 Fund|
Three of Natixis' highly-respected affiliated investment managers are involved in the management of Sustainable Future Funds: Mirova3 (specialists in ESG/sustainable investing), Loomis, Sayles & Company (for its fixed-income expertise), and Active Index AdvisorsSM (veterans of active indexing4).
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.
Wilshire Associates - Established in 1972, Wilshire Associates is a global advisory company specializing in investment products, consulting services, and technology solutions. Wilshire began designing/managing glidepath solutions for retirement vehicles in 2005.
Serving clients worldwide since 1926, Loomis, Sayles & Company is research-based and performance-driven.
Greater plan participation is a top priority today. This first-ever ESG-driven target date retirement savings solution was designed with that in mind. Natixis Retirement specialists are excited to discuss how Natixis Sustainable Future Funds may fit into your plan offerings.
Interested in the Natixis Sustainable Future Funds Series?
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1 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% without a shareholder vote.
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 U.S. 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. 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.
2 Natixis Global Asset Management, Survey of Defined Contribution Plan Participants compiled by CoreData Research, July 2016. Survey included 991 individuals in the U.S. with access to a workplace defined contribution retirement savings plan. Respondents included 661 active participants and 300 non-participants.
3 Mirova operates in the U.S. through Natixis Asset Management U.S., LLC.
4 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.
NGAM 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.