February 2011
Perspectives
Is inflation the solution? //////// Macroeconomic analysis Change of course or “January effect”? //////// Asset Allocation Focus on H2O Asset Management //////// Expertise Focus
www.am.natixis.com CORPORATE AND INVESTMENT BANKING / INVESTMENT SOLUTIONS / SPECIALIZED FINANCIAL SERVICES
SOMMAIRE Macroeconomic Analysis //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 4 Asset Allocation //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 6 Market Data ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 7 Expertise Focus //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 8 our international product range ////////////////////////////////////////////////////////////////////////////////////////////////////// 10 News ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 14
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Publishing Director: F. Lenoir /// Editorial Committee: Th. Benoist, Ch. Lacoste, K. Massicot, Ph. Le Mée, R. Monclar, F. Nicolas, Ch. Point, S. de Quelen, ML. Rouy, JP. Snel, B. Thiery, Ph. Waechter ///
Coordination - Writing: C. Boutou, N. Clémot /// Graphic Design : F. Dupertuys /// Contributors: B. Boulay-Mégard, A. Demode D. Levadoux.
PAGE 3
Editorial
We are witnessing a rebound in activity, as evidenced by the magnitude of China’s economic growth, the decline in the risk of recession in developed countries, and US growth that depends less on public stimulus aid. According to Franck Nicolas, Head of Global Asset Allocation & ALM, the positive announcements about companies’ growing momentum reflect this rebound in activity. However, he warns that sovereign risk still remains. In fact, debt arising from expanding public spending has not been settled. According to some, inflation is a solution for doing away with debt and finding more robust and sustainable growth. Philippe Waechter, Chief Economist of Natixis Asset Management, stated that the relationship between debt and inflation should be modified as it raises many questions. Natixis Asset Management is currently expanding its expertise made available to its clients through a strategic partnership with H2O Asset Management – a new affiliate created in London by Bruno Crastes, CEO, and Vincent Chailley, CIO. Both of these men are recognized specialists in global macro multi-strategy investing, global and emerging-market bonds, and currencies. With H2O Asset Management, Natixis Asset Management is looking to include a development strategy into its multi-boutique model. See pages 8 and 9 of this issue for a look at this new team’s areas of expertise. As usual, you can also find the summary of Natixis Asset Management's international offer [pages 10 to 13]. Enjoy reading it,
Philippe zaouati Deputy CEO, Head of Business Development
Natixis Asset Management
Perspectives /// February 2011
PAGE 4
Macroeconomic analysis
Inflation is sometimes perceived as the magic solution which is spontaneously going "to erase" the excesses of past.
Is inflation the solution? Is inflation the solution? This is often the argument put forward to deal with the debt and return to stronger, more sustainable growth. The debt, which is widely seen as excessive, raises some doubt as to the sustainability and magnitude of the recovery. By constraining behavior, private and public debt leads to inertia, thereby limiting everyone’s ability to react. A prolonged period of price acceleration could be the solution. By reducing the real value of the debt, a higher inflation rate would again give each economic agent additional room for manœuvre. The underlying idea is to imagine that the acceleration in inflation would iron out all the root causes of the crisis or even make them disappear, the economy then suddenly regaining its lost virtues. This approach raises, however, a number of questions.
Debt and income distribution The first question is the following: were the debt to rapidly disappear, would western economies regain the qualities that underpinned the strong and sustainable growth of the past? This question can be reformulated by asking ourselves whether the increase in debt is not the consequence of an inability to renew the sources of revenue and growth. The causality is then not exactly the same.
Philippe waechter Chief Economist of Natixis Asset Management
On this point, the United States is illuminating. We can’t rule out the possibility that the rise in private household debt may have been the result of another economic transformation. In other words, the failure of income distribution since the mid-1980s. Since that period, there has been a profound change in income distribution that has favored the highest incomes. By way of illustration, Emmanuel Saez(1) of the University of Berkeley shows that, between 2002 and 2007, 65% of income growth was appropriated by 1% of the households with the highest revenues. This had not been the case during the postwar period when income distribution had been stable. We note that the increase in private household debt has been accelerating since the mid-1980s, coinciding with the emergence of a greater disparity in income distribution. Consumption growth is then only explained by an increase in resources resulting in a higher level of debt. In France, work arguing along the lines of a distortion in income distribution has recently
been produced, supporting the idea that it may also be a factor behind the rise in private debt. In modifying the resources of the middle classes, the change in income distribution resulted in an increase in private debt. Could eroding this debt with inflation enable a return to more balanced income distribution?
Reduce debt with inflation? Generally speaking, inflation brings about income redistribution that particularly impacts those on fixed incomes. Those living on unearned income are thus penalized while employees benefit provided their salaries are, at least partially, inflation indexed. This impact on redistribution is, however, not the same as in the past since the highest incomes are no longer systematically fixed. In the United States, earned income is now a very significant proportion of the highest revenues. Emmanuel Saez(1) has calculated that, in 2004, 60% of the revenues of the 1% of households with the highest incomes came from work. In 1916, this proportion was only 20%. Inflation would thus not have the desired redistribution effect. Even were it to enable the debt to be gradually wiped out, income distribution would not return to the previous situation given, notably, the distortions that emerged during the mid-1980s. It would thus not have the desired qualities for a rapid, healthy and sustainable return to growth.
(1) Source: "Striking it richer: The evolution of top incomes in the United States" – Emmanuel Saez – 17/07/2010.
Perspectives /// February 2011
Natixis Asset Management
PAGE 5
Macroeconomic analysis
Inflation for sure but for what growth? This raises a third question: we need to establish whether the acceleration in inflation would enable the return of strong growth via investment. The experience of the 2000s raises some doubt. In a low-inflation environment with limited uncertainty, the Lisbon agenda, signed in 2000, was effectively inadequately applied within Europe. This strategy should have enabled Europe to enjoy strong and sustainable growth but it was not embraced with sufficient commitment. Analysis of the inflation during the 1970s clearly shows that too much inflation leads to uncertainty and is reflected, for the economic agents, in a reduction in their time horizons. A more uncertain world, such as that of the 2000s, would not necessarily encourage the massive investment required to underpin renewed growth.
Inflation and commodities Which brings us to our fourth and last observation: the recent acceleration in inflation comes from rising commodity prices. This reflects a tax or a transfer of wealth and purchasing power from the consumer countries to the producer countries. In the 1974-76 period, fearing the cornering of this purchasing power by the oil producers, France introduced an offsetting strategy aimed at supporting demand. This was reflected in a rapid acceleration in inflation above 10% through to the early 1980s without, however, creating the conditions for renewed growth. This so-called "second round" effect is not desirable. In the light of this experience, central bankers therefore do not want to create the conditions for an extended period of high and inflation.
Natixis Asset Management
Conclusion Inflation is sometimes seen as the magic solution that will suddenly "erase" past excesses and enable a return to a more positive trend. The arguments explored above do not validate this assertion. A sustained acceleration in inflation remains bad for employees with debt due to inadequate salary indexation and the constraints coming from the past on income distribution.
In a highly competitive global environment, the risk associated with rapidly-increasing consumer prices is to trigger renewed uncertainty for indebted countries and modest long-term growth that would then benefit their emerging counterparts. ///
Written on 02/02/2011
Experience since the early 1960s suggests that there are two levels of equilibrium for inflation in developed countries: a low level close to that seen over the past two decades and another of above 10%. Between these two clearly-identified levels, the inflation rate does not seem stable. This being so, to which level of equilibrium should we converge knowing that a low inflation rate does not rapidly erode debt? Furthermore, the level of long-term interest rates is governed by that of inflation. If the latter were to accelerate, interest rates would be higher and so would the cost of growth.
United states: Part of the consumption in the GDP and the domestic debt ratio Consumption in the GDP 72
quarter 3 2010
70 68 2000’s
66
1990’s 1980’s
64
1970’s 1960’s
62 60 50
60
70
80
90
100
110
120
130
140
Domestic debt ratio (debt on disposable income) Source: Datastream - Natixis Asset Management
Perspectives /// February 2011
PAGE 6
asset allocation
Change of course or "January effect"? In January, the market regained some color after a few uncertain months. The strength of economic growth in China, the receding risks of relapse into recession for the developed countries and growth less dependent on government stimulus in the United States all gave the financial markets some renewed visibility. While still very much to the fore, sovereign risk now seems to be being viewed with more equanimity.
Fixed income
franck nicolas Head of Global Asset Allocation & ALM Risk categories
Risk subcategories
Tactical allocation* 12/10(1) 01/11(2)
Fixed income Equities Fixed income United States Euro zone UK Emerging markets Japan
= + = = = = -
++ = + -
Euro issuers
Corporate Invest. Grade
+
+
Equities
United States Euro zone UK Japan Emerging markets
+ + + = =
= ++ + = -
Currencies
Dollar Yen Sterling
= = =
= -
+
+
=
-
+
++
(against the euro)
Commodities Oil Gold Industrial materials
(1) Investment committee as of 25/11/2010. (2) Investment committee as of 06/01/2011.
Scale from -- to ++ * Weighting gap vs. strategic allocation of investor.
Perspectives /// February 2011
The Natixis Asset Management Strategic Investment Committee neutralized the bond sensitivity around the reference indices considering that the lows had been reached on the ten-year Bund. It is still too early to again take on exposure to the peripheral countries in the euro zone. While the current spreads are higher than those of some corporates, visibility on the future of the debt in circulation remains low. Ireland, plunged into difficulty by its banking system, seems to be gradually normalizing despite the reduction in leverage effects which will take time in the zone. Portugal’s situation remains a concern since household debt there is higher than GDP and its AuM is modest in absolute terms. Spanish debt is mostly in the hands of residents (55%) and the country’s exports remain strong. Greece also remains a worry with access to new revenues and control over expenditure still looking difficult to achieve. The review process underway on the support fund and the purchases of Portuguese debt issues by Asian banks has relieved the pressure on these segments. Since the situation has, however, yet to stabilize, Natixis Asset Management's preference is for corporate credit in portfolios.
Equities The proliferation of positive news testifying to the solidity of the corporate dynamic continued. The euro zone staged a significant catch up over the month as fears linked to sovereign risk were gradually assuaged.
Natixis Asset Management remains positive on this asset class with a preference for the euro zone. Also from a slightly contrarian perspective, exposure to the most cyclical sectors has been reduced and emerging investments lightened. The upwards pressure on commodity prices is effectively raising increasingly serious concerns regarding emerging growth which looks to be more inflationary than in the past. The central banks in these zones should react but the direction of equity markets, from their currently somewhat stretched valuation levels, now looks more uncertain in the short term.
Currencies In the euro zone, the euro/dollar parity moved from 1.29 to 1.37 over the month even if there is still a long way to go. This parity seems to have reached its high for the moment, effectively showing that the dollar looks set to depreciate against every other currency once the crisis is behind us. Investing in emerging currencies, as opposed to equities in these zones, looks to be sensible as we begin the year (the prospect of monetary tightening in several countries potentially contributing to their appreciation).
Commodities Commodities directly sensitive to growth are continuing to forge ahead. Oil should plateau in the short term while industrial metals and agricultural raw materials could continue their run. Given its status as a safe haven, gold, on the other hand, loses some of its relevance in this configuration. ///
Written on 01/02/2011
Natixis Asset Management
PAGE 7
markets data
As of 31/12/2010 France
Value
CAC 40 CAC Mid 100 IT CAC 20 SBF 120 SBF 250
3 804.78 7 234.18 3 690.94 2 861.15 2 800.66
Europe
Value
MSCI Europe EuroStoxx 50 DAX Footsie
95.38 2 792.82 4 053.71 5 899.94
United States
Value
Dow Jones S&P 500 Nasdaq Brent Crude Future
11 577.51 1 257.64 2 652.87 94.75
Asia
Value
Nikkeï Hong Kong Singapore Shanghaï
10 228.92 23 035.45 3 190.04 304.35
World
Value
MSCI World
1 280.07
2010 -3.34 % 18.70 % 9.53 % 0.06 % 0.41 %
2010 8.04 % -5.81 % 12.48 % 9.00 %
Money market Rate Eonia Euribor 3 months Euribor 6 months Euribor 1 year Fed Funds
2010 -3.01 % 5.32 % 10.09 % 20.58 %
2010 9.55 %
0.407 0.306 0.233 0.259 0.080
Fixed income
2010 11.02 % 12.78 % 16.91 % 21.58 %
2010
0.817 % 1.006 % 1.227 % 1.507 % 0.130 %
Rate 5 years French Treasury Bond 5 years USTN 10 years French Treasury Bond 10 years USTN 30 years French Treasury Bond 30 years USTN
2.137 % 2.008 % 3.362 % 3.287 % 3.881 % 4.339 %
2010 -0.342 -0.678 -0.231 -0.546 -0.379 -0.291
Currencies Value Euro/Dollar Euro/Yen (100) Euro/Sterling Dollar/Yen
1.3416 108.8064 0.8569 81.1050
2010 -6.50 % -18.54 % -3.56 % -12.88 %
The monthly index Yield curve in the euro zone (%) 6 5 4 3 2 1
10 years 5 years 2 years Euribor 3 months ECB EONIA
Since the summer of 2010, the long end of the yield curve has seen significant volatility due to its role as a safe haven during the concerns about peripheral countries then under the influence of US interest rates. The United States effectively heavily discounted the effect of the massive treasury securities purchasing strategy implemented by the Fed before revising it. Expectations of more robust US growth following early December’s fiscal agreement subsequently drove yields higher. More recently, uncertainties triggered by the ECB’s statement on inflation risk have seen a change in investor attitudes.
The two-year rate has markedly increased given the prospect of a possible ECB move to combat 2009 2010 2011 slightly higher inflation. This change has had a significant impact on bond yields across the board. Source: Datastream - Natixis Asset Management The ECB is unlikely to make any rapid shifts in monetary policy. The mentioned expectations thus appear excessive at the long end of the curve. 0 2008
The Eonia has had a distinctive configuration since the summer of 2010, reflecting a more heterogeneous banking system. While some banks would no longer require the ECB’s liquidity support, others are still very much in need of this and most probably for some time to come. This is one of the reasons for the required status quo from the ECB.
Natixis Asset Management
Perspectives /// February 2011
PAGE 8
expertise focus
Questions to...
Bruno Crastes CEO and co-founder of H2O Asset Management
focus ON
Natixis Asset Management has formed a strategic partnership with H2O Asset Management, a company specialized in global macro multistrategies, global and emerging-markets bonds. Diversification is at the heart of the management strategy for the four funds that currently comprise the H2O products range.
Why H2O Asset Management?
A diversified approach…
After more than twenty years’ experience in large asset management firms, Vincent Chailley(1) and I were tempted to take the plunge and set up an asset management company. Our ambition is to offer investors a range of funds that generate superior returns while offering liquidity and transparency, hence the choice of our company name: H2O Asset Management.
The H2O Asset Management team is convinced that diversification, whether in terms of asset class or geographical region, is a source of sustainable alpha. The team’s investment universe is thus very extensive, spanning the bond, currency and equity markets(2). Each of these asset classes is equally well represented in both developed and emerging countries.
…and global macro multi-strategies The H2O Asset Management approach is resolutely top down. The managers use macroeconomic analysis as the basis for their decisions to invest in: • Directional positions, both bull and bear, on the various asset classes,
How is the firm positioned? H2O Asset Management is positioned at the frontier between the traditional asset management universe and that of alternative management. We offer investors global macro multistrategy-type investment solutions within the framework of UCITs benefiting from daily liquidity.
• Relative value positions, aimed at playing the trend in one market segment relative to another (e.g. long US ten-year bonds/short ten-year Bunds). These strategies are supplemented with specific overlays involving stock selection within each market segment and trading positions.
a g io a n d H 2 O M u lt i b o n H2O A d ds od e ra to a n d H 2 O P atr im oi n e H 2O M
Why this partnership with Natixis Asset Management?
ren
Sector Allocation
s
Emerging currencies
Inter-bloc Allocation Intra-bloc Allocation
Go v
G4 country allocation G4 yield curve allocation
Exposure
Duration
USD Exposure
s
Stock picking
Off-G4 gvt. bonds & bond picking
itie
ern me nt Bo nd s
Bond picking
cie
Equ
We were impressed by Natixis Global Asset Management’s multi-boutique model. The partnership with Natixis Asset Management enables us to retain the flexibility and responsiveness of a boutique while benefiting from the support teams and the power of the distribution network of a company like Natixis, both in France and internationally, through its international distribution platform, Natixis Global Associates.
Cur
dit
Cre
Region Allocation Sector Allocation
Exposure
Directional
Relative value
Specific
Type of strategy
Investment universe and outperformance's sources of H2O range (1) CIO and co-founder of H2O Asset Management. (2) Except the H2O Adagio and H2O Multibonds funds.
Perspectives /// February 2011
Natixis Asset Management
PAGE 9
expertise focus
The H 2O product range currently comprises two absolute return funds, one benchmarked fund and one fund focused on wealth preservation, all invested in a wide spectrum of asset classes.
H2O Adagio
H2O Multibonds
• An absolute return fund in an international fixed income and currency universe.
• A benchmarked international bond fund with currency diversification
• Investment objective (I shares): Capitalized EONIA + 1% annually over the recommended investment horizon.
• Investment objective (I shares): JP Morgan Government Bond Index Broad + 2% annually over the recommended investment horizon.
H2O Patrimoine • A wealth preservation approach aimed at benefiting from rising markets while mitigating their declines. • Investment objective (I shares): outperform the benchmark (30% MSCI World All Countries + 70% JP Morgan Global Government Bond Index Broad in €) over the recommended investment horizon.
ISIN Code
H2O Moderato • An absolute return fund in an international equity, fixed income and currency universe • Investment objective (I shares): Capitalized EONIA + 2% annually over the recommended investment horizon
H2O Adagio
H2O Moderato
H2O Multibonds
H2O Patrimoine
FR0010929794 (IC)
FR0010929836 (IC)
FR0010930735 (IC)
FR0010930446 (IC)
Management company
Natixis Asset Management
Financial manager by delegation
H2O Asset Management
Investment universe
Fixed income + credit + currencies
Fixed income + credit + currencies + Equities
Investment horizon
1 year
2 years
Risk indicator
Target ex post volatility of 1.25% annually
Target ex post volatility of 2.5% annually
Fixed income + credit + currencies
Fixed income + credit + currencies + equities
3 years Indicative ex ante tracking error of between 0% and 6% annually
Annual ex ante volatility of below 10% (with an interval of confidence of 66%)
The capital and the performance are not guaranteed. The risks are described in the prospectus. The prospectus must be given to the investor prior to the subscription and are available on the Natixis Asset Management website to: www.am.natixis.com.
Further information : www.am.natixis.com [Our products section]
Natixis Asset Management
Perspectives /// February 2011
PAGE 10
our international Product range
Brief overview of our international product range The key expertise of Natixis Asset Management dedicated to international clients are gathered in n 8 sub-funds of the Natixis International Funds (Lux) I SICAV and the Impact Funds SICAV (pages 10 to 11), n and in a selection of 27 complementary funds covering all asset classes (listed on page 12).
Sub-funds of the Natixis International Funds SICAV
Matthieu Belondrade & François Théret
Natixis Emerging Europe Fund Get the most out of the growth in the emerging European zone as part of a conviction management strategy • Investment universe: Emerging Europe Equities • Benchmark: MSCI Emerging Europe Index (indicative only) • Minimum recommended investment period: 5 years • Risk Indicator: Target tracking-error ex ante between 6 and 10
I, A I, A I, D R, A R, A R, D
EUR USD USD EUR USD USD
LU0147917792 LU0095830922 LU0095831060 LU0147918923 LU0084288595 LU0084288678
Thierry Cuypers
Natixis Europe Smaller Companies Fund Make the most of attractive European small and mid caps in a conviction investment style • I nvestment universe: European Equities •B enchmark: MSCI Europe Small Caps NDR (indicative only) •M inimum recommended investment period: 5 years •R isk Indicator: Target tracking-error ex ante between 2 and 7 (indicative, barring crisis context)
I, A I, D R, A R, D
EUR EUR EUR EUR
LU0095827381 LU0095828272 LU0064070138 LU0064070211
Christine Lebreton
Natixis Impact Europe Equities Fund Benefit from the growth potential of socially responsible European companies through conviction-based management • Investment universe: European equities • Benchmark: MSCI Europe (indicative only) • Minimum recommended investment period: 5 years
I, A I, D R, A R, D
EUR EUR EUR EUR
LU0095828512 LU0095828785 LU0066549592 LU0066549832
See the full prospectus which is the only legally binding document. See the Legal Information on page 2 for important information about the funds.
Perspectives /// February 2011
Natixis Asset Management
PAGE 11
our international Product range
Sub-funds of the Natixis International Funds SICAV
Clothilde Malaussene
Natixis Euro Aggregate Plus Fund Benefit from a broad range of fixed income investment opportunities • Investment universe: Mainly Euro denominated government or private issuers rated Investment / Diversifying fixed income assets • Benchmark: Barclays Capital Euro Aggregate • Minimum recommended investment period: 3 years
I, A I, D R, A R, D
EUR EUR EUR EUR
LU0161120547 LU0391146155 LU0161121271 LU0390502184
Sophie Potard
Natixis Global Inflation Fund Get the most out of diversification in inflation-indexed bonds in a global universe • Investment universe: International inflation-linked bonds • Benchmark: Barclays World Government Inflation linked all maturities Index hedged in euro • Minimum recommended investment period: 2 years
H-I, A H-I, D I, A I, D R, A R, D
USD USD EUR EUR EUR EUR
LU0390502267 LU0390502341 LU0255251166 LU0255251596 LU0255251679 LU0255251752
Hanna Stekelorom
Natixis Impact Euro Corporate Bond Fund Combining responsability and conviction-based strategies in the eurocredit universe • Investment universe: Mainly Euro-denominated investment grade debt securities • Benchmark: Barclays Euro Aggregate Corporate Index • Minimum recommended investment period: 3 years
I, A I, D R, A R, D
EUR EUR EUR EUR
LU0155376477 LU0391146072 LU0155380156 LU0390502770
See the full prospectus which is the only legally binding document. See the Legal Information on page 2 for important information about the funds.
Natixis Asset Management
Perspectives /// February 2011
PAGE 12
our international Product range
Sub-funds of the Natixis International Funds SICAV
Philippe Berthelot
Natixis Euro High Income Bond Fund High total investment return through a combination of high current income and capital appreciation • Investment universe: The fund invests primarily in sub-investmentgrade euro-denominated debt securities • Benchmark: BofA Merrill Lynch Euro High Yield, BB-B Rated Constrained Index • Minimum recommended investment period: 3 years
R, C I, C S, C RE, C Y, C I, D R, D S, D
EUR EUR EUR EUR EUR EUR EUR EUR
LU0556617156 LU0556616935 LU0556617313 LU0556617586 LU0556617743 LU0593537219 LU0593537482 LU0593537565
Sub-fund of the Impact Funds SICAV
Clotilde Basselier & Suzanne Senellart
Impact Funds Climate Change Reconciling climate change with a performance oriented strategy in a global equity fund • Investment universe: Global equities • Benchmark: The MSCI World index (indicative only). • Minimum recommended investment period: 5 years
I, C I, C J, C
USD EUR EUR
LU0448199025 LU0448199371 LU0448199454
See the full prospectus which is the only legally binding document. See the Legal Information on page 2 for important information about the funds.
Perspectives /// February 2011
Natixis Asset Management
PAGE 13
our international Product range
A selection of 27 complementary funds This quarterly reviewed list of funds aims to highlight Natixis Asset Management's most innovative products and its wide range of expertise. Fund name
Fixed income
Money market
Asset Class
Natixis Cash Première
IA: FR0010157834
Natixis Cash A1P1
IA: FR0010322438
Natixis Cash Eonia
IA: FR0010298943
Natixis Tréso Euribor 3 mois
IA: FR0010831693
Natixis Tréso Plus 3 mois
IA: FR0007075122
Natixis Court Terme 6 mois
IA: FR0010885236
Natixis Souverains Euro 1-3
IA: FR0010208421
Natixis Souverains Euro 3-5
IA: FR0010036400
Natrixis Souverains Euro 5-7
A: FR0010201699
Natixis Souverains Euro 7-10
A: FR0000449092
Natixis Souverains Euro
IA: FR0010655456
Natixis Inflation Euro Natixis Obli Opportunités 12 mois
Equity
Natixis Crédit Euro
I: FR0010680223 IA: FR0010796391 I: FR0010171108
Natixis Convertibles Euro
IA: FR0010658963
Natixis Convertibles Europe
IA: FR0010171678
H2O Multibonds
IA: FR0010930438
Natixis Actions Euro Value
IA: FR0010270025
Natixis Actions US Growth
IA: FR0010256404
Sonic Monde Natixis Actions Global émergents Impact Funds Climate Change
Alternative investment
Share and ISIN code
Natixis Performance Active Allocation Natixis Constellation European Event
IA €: FR0010555797 IA: FR0010711051 IA $: LU0448199025 IA: FR0010688812 IA €: LU0161071237 IA $: LU0161073951
H2O Adagio
IA: FR0010929794
H2O Moderato
IA: FR0010929836
H2O Patrimoine
IA: FR0010930446
These funds are authorized for sale in France and possibly in other country(ies) where their sale is not contrary to local legislation. Please refer to legal information of this material.
Natixis Asset Management
Perspectives /// February 2011
PAGE 14
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Natixis AM's Workshop "2011: Squaring the circle?" "The broad-based recovery in activity allows us to again take on risk in some asset classes: equities but also high-yield bonds." Pascal Voisin, CEO of Natixis Asset Management
Dedicated to the 2011 Outlook, Natixis Asset Management’s Workshop gathered, on January 19, some 380 participants around the question "2011: Squaring the circle?".
Natixis Actions US Growth Focus on Natixis Actions US Growth, a US large cap equities fund managed in accordance with a fundamental growth approach. As the US equity market is expected to indirectly benefit from the Fed’s second round of quantitative easing as well as from the rise in household consumption in 2011, investing in Natixis Actions US Growth fund could be a good opportunity to gain exposure to this bullish market. Distinguishing features of Natixis Actions US Growth The portfolio managers adopt a long term approach while investing, as the portfolio turnover is a mere circa 25%*. Investment management decisions are not driven by the events that affect the value assessment of companies in the short term but rather by the fundamentals and the business model of each company and their impact over time. The investment management team carries out in-depth research with a view to identifying: • High quality businesses with sustainable competitive advantages • Companies with profitable growth expected in the long term. • Companies trading at significant discounts to intrinsic value
Macroeconomics, investment strategies and key asset allocation preferences: the scenarios retained by Natixis Asset Management for 2011 were interpreted by Philippe Waechter, Chief Economist, Ibrahima Kobar, CIO Fixed Income, Emmanuel Bourdeix, CIO, Equity, Asset Allocation and Structured Products and Franck Nicolas, Head of Asset Allocation and ALM. According to the Natixis Asset Management experts, "2011 will be a year of recovery but a recovery subject to constraints particularly given the issues surrounding employment in the United States and commodities. In terms of our asset allocation preferences, high yield and credit are attractive. We need to remain vigilant on sovereign risks. We expect equities, particularly in Europe, to return to favor. Periods of low volatility alternating with sharp corrections should, however, still be expected".
As companies that meet these various criteria set by the management are scarce, the portfolio holds only 30 to 40 securities, which reflects the managers' strong beliefs in just a handful of companies. The management has a pure "bottom up” approach and macro factors exercise a somewhat minor influence on investment decisions. A sharp expertise on the “growth” management Since 20 December 2010, Natixis Asset Management has decided to delegate the financial management of the Natixis Actions US Growth fund to the American investment management company Loomis, Sayles & Co. L.P., an affiliated asset manager which is part of the Natixis Global Asset Management’s multi-boutique model. Sayles managed more than 150 billion USD in assets as of the end of 2010*. An investment management team dedicated to the "US large cap growth" strategy gathers of a portfolio manager and three experienced analysts. The AuM of this strategy amounted to 2 billion USD as of the end of 2010*. * Source: Loomis, Sayles & Co. L.P.
Further information: www.am.natixis.com
Perspectives /// February 2011
The Natixis AM Workshop gathered some 380 participants.
Further information: see the Natixis AM's Workshop Newsletter on: www.am.natixis.com
Natixis Asset Management
www.am.natixis.com Natixis Multimanager Subsidiary of Natixis Asset Management A French simplified joint-stock company Share Capital of 7 536 452 € RCS Number 438 284 192 Paris Regulated by AMF under n°GP 01-054 Registered Office: 21 quai d’Austerlitz 75 634 Paris, Cedex 13 - Tel. +33 1 78 40 32 00 www.multimanager.natixis.com
communication-nam@am.natixis.fr - February 2011. Cover picture : © maximino / Shutterstock
Perspectives is a Natixis Asset Management's publication - Natixis Asset Management - Communications Department - Business Development -
Natixis Asset Management Limited Liability Company Share Capital 50 434 604,76 € RCS Number 329 450 738 Paris Regulated by AMF under n°GP 90-009 Registered Office: 21 quai d’Austerlitz 75 634 Paris, Cedex 13 - Tel. +33 1 78 40 80 00