Changing the Climate of Target Date Funds

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.

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 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.

Our Sustainable Future Funds Family

Find Your Target Date Fund

When do you want to retire1?
Your target fund is:

Natixis Sustainable Future Fund Glide Path

Fund Management

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.

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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?

Call (800) 862-4863

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