Page 1

June 2010

Perspectives Macro Analysis Europe at a crossroads Asset Allocation What’s next for the euro-zone? Product Focus Natixis Souverains Euro Corporate and Investment Banking / investment Solutions / Specialized Financial Services

Publishing Director: F. Lenoir Editorial Committee: T. Benoist, S. de Quelen, Ph. Le Mée, K. Massicot, R. Monclar, F. Nicolas, Ch. Point, Ch. Lacoste, JP. Snel, B. Thiery, Ph. Waechter Coordination - Writing: N. Clémot Head of design: F. Dupertuys Contributors: D. Levadoux


Macroeconomic Analysis


Asset Allocation


Market Data


Overview of our international product range

11 Product Focus

This material has been prepared by Natixis Asset Management, a subsidiary of Natixis Global Asset Management. Natixis Asset Management is a French asset manager authorized by the Autorité des Marchés Financiers (Code 1200009, Agreement No. GP90009) and licensed to provide investment management services in the EU.

13 News

Legal information The funds mentioned in this material are not registered or authorized in all jurisdictions and may not be available to all investors in a jurisdiction. Natixis International Funds (Lux) I is organized as an investment company with variable capital under the laws of the GrandDuchy of Luxembourg and is authorized by the financial regulator (the CSSF) as a UCITS. Natixis Global Associates S.A. is the management company of the Fund. The provision of this material does not constitute an offer of services, nor an offer or recommendation to purchase or sell shares in any financial instrument. Investors should consider the investment objectives, risks and expenses of any investment carefully before investing. In the case of a fund, these can be found in the fund’s prospectus or offering memorandum, which should be read carefully before investing. If you would like further information about any of the funds, including charges, expenses and risk considerations, contact the sender of this document or your financial advisor for a free prospectus, simplified prospectus, copy of the Articles of Incorporation, the semi and annual reports, and/ or other materials and translations that are relevant to your jurisdiction. Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time. Performance data shown represents past performance and is not a guarantee of future results. More recent performance may be lower or higher. Principal value and returns fluctuate over time (including as a result of currency fluctuations) so that shares, when redeemed, will be worth more or less than their original cost. Performance shown is net of all fund expenses, but does not include the effect of sales charges or correspondent bank charges, and assumes reinvestment of distributions. If such charges were included, returns would have been lower. The analyses, opinions, and certain of the investment themes and processes referenced herein represent the views of the author(s) referenced as of the date indicated. These, as well as the portfolio holdings and characteristics shown, are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material. In certain cases, this material is provided by one of the Natixis Global Associates entities listed below, each of which is a subsidiary of Natixis Global Asset Management, the holding company of a diverse line-up of specialised investment management and distribution entities worldwide, each of which conduct any regulated activities only in and from the jurisdictions in which they are licensed or authorized. Their services and the products they manage are not available to all investors in all jurisdictions. Although Natixis Global Associates believes that the information provided in this material to be reliable, it does not guarantee the accuracy, adequacy, or completeness of such information. • In the UK: This material is provided by Natixis Global Associates UK Limited which is authorised and regulated by the UK Financial Services Authority (register no. 190258). This material is intended to be communicated to and/or directed at persons (1) in the United Kingdom, and should not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell securities in any other jurisdiction than the United Kingdom; and (2) who are authorised under the Financial Services and Markets Act 2000; or are high net worth businesses with called up share capital or net assets of at least £5 million or in the case of a trust assets of at least £10 million; or any other person to whom the

material may otherwise lawfully be distributed in accordance with the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 or the (Promotion of Collective Investment Schemes) (Exemption) Order 2001 (the "Intended Recipients"). To the extent that this material is issued by Natixis Global Associates UK Limited, the fund, services or opinions referred to in this material are only available to the Intended Recipients and this material must not be relied nor acted upon by any other persons. Registered Address: Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA. • In the E.U. (outside of Germany, Austria, Italy and the UK): This material is provided to the investment service provider or other Professional Client or Qualified Investor who has requested it by Natixis Global Associates S.A. or its branch office in France, Natixis Global Associates International. Natixis Global Associates S.A. is a Luxembourg management company that is authorized by the Commission de Surveillance du Secteur Financier and is incorporated under Luxembourg laws and registered under n. B 115843. Registered office of Natixis Global Associates S.A.: 2-8 Avenue Charles de Gaulle, L-1653 Luxembourg, Grand Duchy of Luxembourg. Registered office of Natixis Global Associates International (n.509 471 173 RCS Paris): 21 quai d'Austerlitz, 75013 Paris. • In Germany and Austria: This material is intended to be communicated to and/or directed at persons in Germany and Austria by Natixis Global Associates Germany GmbH, a tied agent of Natixis Global Associates UK Limited. In the case the fund(s) referenced within this material is/are not registered in Germany or Austria, this material is intended to be communicated to and/or directed at persons who are (a) lawfully authorized to receive this material under the provisions of § 2 (11) paragraph of the German Investment Act or (b) Qualified Investors as defined in Article 1 (1) 5a of the Austrian Capital Market Act (“Intended Recipients”). To the extent that this material is issued by Natixis Global Associates Germany GmbH, the fund, services or opinions referred to in this material are only available to the Intended Recipients and this material must not be relied or acted upon by any other person. Registered office of Natixis Global Associates Germany GmbH (Frankfurt am Main HRB 45540): Im Trutz Frankfurt 55, Westend Carrée, 7. Floor, Frankfurt am Main 60322, Germany. • In Italy: This material is provided to the investment service provider or other Professional Client or Qualified Investor who has requested it by Natixis Global Associates Italia SGR, S.p.A., an investment management company (“Societa’ di Gestione del Risparmio”) registered and regulated by the Bank of Italy (registration no. 119, code no. 15143.1). Registered office: Via San Clemente, 1 - 20122, Milan, Italy. • In Switzerland: This material is provided to Qualified Investors by Natixis Global Associates Switzerland Sàrl. Registered office: place de la Fusterie 12, 1204 Genève. • In the DIFC: This material is provided in and from the DIFC financial district by Natixis Global Associates Middle East, a branch of Natixis Global Associates UK Limited, which is regulated by the DFSA. Related financial products or services are only available to persons who have sufficient financial experience and understanding to participate in financial markets within the DIFC, and qualify as Professional Clients as defined by the DFSA. Registered office: PO Box. 118257, 5th Floor, Building 8, Gate Village, DIFC, Dubai, United Arab Emirates.

Contacts Prospectus and sales documents required for subscription are available on demand: n Natixis Global Associates (Operations): n or CACEIS Luxembourg (Prime Transfer Agent): n or Natixis Asset Management (Clients servicing): Cover picture: © Kinetic Imagery / Shutterstock

(352) 47 67 70 78

Editorial With the Greek crisis, which is also endangering other "peripheral" countries, Europe has been shaken by a crisis unprecedented. The financial markets have brought to light uncertainties regarding both the eurozone's capacity to regulate itself and the membership of certain countries of that zone. In the view of Philippe Waechter, Chief Economist, the trade-offs and mistrust that have been witnessed point to genuine anxiety as to whether Europe can return to healthy, sustainable growth. He views the situation as paradoxical, since the news of the global cycles are good and continuing to improve, thus reinforcing perceptions of a sustainable recovery. Franck Nicolas, Head of Global Asset Allocation & ALM, confirms that the interventions by the European Union and the ECB have succeeded in calming fears of default, by deploying a multiplicity of measures designed to lessen uncertainties regarding States' financing. Both nevertheless highlight issues of public deficits, for which the situation is very worrying. In the context of a cyclical upturn, the strong world economic growth can be hoped to have spinoffs for the eurozone. Concerning investors wishing to focus on the opportunities offered by the eurozone, Natixis Asset Management has dedicated its Product Focus for the month to Natixis Souverains Euro. This fixed-income fund seeks to benefit from active management of eurozone sovereign bonds. Rated Lipper Leader for Consistent Return over 3 years , the fund effectively stands out against the background of a complex market steeped in uncertainty…

Philippe zaouati

Head of Business Development

As usual, you can also find the summary of Natixis Asset Management’s international offer [pages 8 to 10 of this issue]. Enjoy reading it,

Awards Le Revenu Trophies – 2010 Natixis Asset Management walked away with 6 trophies over 3 years at the 2010 Le Revenu Trophies(1): Golden Trophy Best range of international bond funds(2) Best range of balanced funds(3) Best overall performance(3) Silver Trophy Best range of euro bond funds (Category "Network banks" for Caisse d’Epargne(4)) Best range of sector funds (Category "Network banks" for Banque Populaire(4))

Bronze Trophy Best range of euro equities funds(3)

In order to win, the funds or fund ranges had to strike the best risk/return profile of their peer groups in the various categories over 3 years. 4Further information on (Awards section) Source: Le Revenu from 28/05 to 03/06/2010

Past performance or reference to any rankings or awards cannot be interpreted as indicating the future performance of a fund or its manager.

(1) Uses the database of UCITSs (SICAVs and FCPs) authorized for sale in France and tracked by EuroPerformance, as of March 31, 2010. (2) Category "Specialist providers". (3) Category “Insurers" for CNP. (4) Category “Network banks” with at least 100 branches.

June 2010


Macro Analysis Europe at a crossroads The economic situation in Europe is somewhat contradictory. News on the economic cycle are good and have been improving for several months, thereby enhancing the perception of a sustainable recovery. But in the meanwhile, the financial markets are sending out a jumble of messages calling into question the existence of the euro-zone and its ability to regulate itself, as well as this monetary zone’s membership of certain countries.

Philippe Waechter Chief Economist of Natixis Asset Management

"The cyclical recovery suggests that activity levels will continue to rise in the coming weeks and months. However, turbulence on the financial markets is puzzling. Arbitrages and a lack of confidence hint at serious doubts..."

n Cyclical recovery appears solid The indicators linked to the economic cycle for the euro-zone are now more robust. Business managers surveys reflects renewed optimism. This change in outlook, especially perceptible since March, reveals that the euro-zone is increasingly inked in the current dynamism of the global economy. As a result, labor market indicators have improved. Following a sharp decline, the euro-zone labor market is now stabilizing – if the surveys are to be believed. These trends also seem to be in place in France. The PMI/ Markit employment survey is consistent with movement in the quarterly job figures: the spring data point to a stabilization of the labor market towards the summer months, which should not be undisturbed by inflationary pressures. With activity levels recovering and a low inflation, there is no reason for the ECB to rush into modifying its monetary policy. The cyclical recovery described above suggests that activity levels will continue to rise in the coming weeks and months. After picking up in Asia, then in the emerging countries and the US, the recovery in global activity is now filtering through to Europe, and the euro’s recent drop in value should provide further benefits. However, turbulence on the financial markets is puzzling. Arbitrages and a lack of confidence hint at serious doubts over Europe’s ability to return to solid and sustainable growth. In order to analyze the issues and have a better understanding of this troubled European


June 2010

environment, it is essential to consider the factors which have their roots in the past and those that will underpin the future.

n Constraints rooted in the past Public deficits, and more generally public finances’ imbalances, are linked to past upheavals, and must be brought under control to avoid harming future growth. Governments, like investors, are well aware of the constraints. So far, they have all done the right thing, indicating that a return to equilibrium would be only a question of time, and would take place in the short term; it was generally hoped that deficits would be curbed to below 3% in 2013 or 2014 at the latest. Three comments on this point: • Forecasters have kept Greece, Portugal and Spain under close scrutiny, but the forecasts for France also show a deep imbalance. In a report prepared for the French president and published on the 20th of May, Paul Champsaur and Jean-Philippe Cothis stated that without a specific correction of the public finances (but with robust growth making up the ground lost during the recession), France’s debt ratio would represent 110% of GDP in 2020, compared with just under 80% at end-2009. A debt level of that magnitude would clearly limit the government’s room for maneuver. • Past experiences suggest that in order for a phase of budgetary consolidation (considerable reduction in the public deficit)

to be effective, it should take place over a period of 5-6 years rather than the 3-4 years announced by governments keen to appear “virtuous at any price”. • Reducing deficits in such as short period of time would surely hamper European growth. This is the concern of the Americans as well as other parties who want to avoid being dragged into a downward spiral. Note too that successful consolidation phases are usually accompanied by a very sharp fall in currency values. Internal constraints are thus offset by increased competitiveness. But all this takes time, and it seems that the Europeans are in too much of a hurry. It is absolutely essential to control, and then reverse the budget imbalances, to give governments scope for managing public finances, especially if they need to combat a further slump in activity. In a period when public debt is “too” high, the pain of shocks to the economy will not be able to be mutualised. Adjustments would therefore affect economic agents, with a higher sustainable unemployment rate in place.

n How to build for the future? Factors rooted in the past are very important. However, they are not enough to grasp the issues and doubts concerning the euro-zone. Three key points to be clarified: • The first relates to the institutions that will support the euro-zone in the future. There has often been discussion of an economic body to coordinate budgetary policy. The obligation to balance the public finances and the risk of exclusion from the euro-zone for countries that do not comply have also been raised, by Germany’s Chancellor Merkel. On the surface, it appears that these two institutional approaches (co-ordinated on

the one hand, autonomous on the other) cannot work in tandem. Which approach does Europe tend to go? Angela Merkel often makes reference to the ECB being in a position of control. But what about the role of the European Commission? While the institutions that brought about the introduction of the euro now need to be overhauled, it is at present unclear which new architecture should be adopted. This is a major source of uncertainty for euro-zone investors. • The second issue concerns the way in which the 750 billion euro aid budget (agreed upon by the EU and IMF on the 9th of May) should be distributed to countries in difficulty. The distribution will probably follow criteria based on compliance with Stability Pact parameters (or similar). Some may believe that this will be sufficient. But is there a plan B in case this fails or a country goes bankrupt? This huge pot is intended to help prevent imbalances, but will it be possible to use these resources if a country defaults, or will it be necessary to put in place a new plan? This issue also represents an area of considerable uncertainty. • Last, but not least: how will each government implement budget rebalancing strategies in the management of its public finances? Any country that decides to go against this will lose credibility, which will push up the risk premium it has to pay on its interest rate. All countries will therefore have to demonstrate some originality when carrying out budgetary consolidation, and investors are likely to become more demanding in terms of the strategies and measures adopted to achieve this. In other words, the implementation of these strategies could affect the interest rates paid by each country, through a risk premium.

given the heterogeneity of euro-zone countries and the fact that each country has its own deficit. Here, the situation in Europe is very different from that in the US, where there is a single public deficit and no question marks over individual components.

n Conclusion The situation in Europe is highly complex. Although it has been worse, with the euro keeping on falling, enabling Europe to benefit more fully from global growth, the current cyclical improvement does not seem to be enough to reassure investors. As with the mutualisation of the crisis of 2008-2009, the imbalances in public finances will dampen growth in the immediate future. And the uncertainties surrounding the institutions to be put in place make it difficult to forecast the euro’s future. In addition to economic adjustments, resolute political decisions will have to be made to allow the euro-zone to continue to function and to emerge a stronger entity from this severe crisis.

Written on 27/05/2010

This would be a new development in Europe, but is necessary nonetheless,

June 2010


Asset Allocation What’s next for the euro-zone? European integration has experienced an unprecedented crisis. The European Union and ECB have worked hard to calm default fears. The ECB has reopened swap lines with the Fed to provide dollar liquidity in the euro-zone, as well as unlimited threeand six-month liquidity windows. It has also made direct interventions on the bond market, but without creating additional money supply (mopping up the liquidity created). The bank has finally unblocked several hundreds of billions euro in loans. These measures may have calmed fears surrounding public finances, but they have done nothing to ease concerns over deficits. The market has been proactive in factoring in the risk of a return to recession, as governments begin to tighten fiscal policy. The situation is obviously extremely worrying, but it can be hoped that strong global growth will benefit the euro-zone, and that the implementation of essential institutional reforms will shore up the credibility of European governments. While it seems that euro-zone growth is set to remain weak for a number of years, at least the risk of dislocation has been avoided. For the moment Natixis Asset Management’s base scenario reflects a slow recovery, while bearing in mind the risks of a relapse.

Franck nicolas

Head of Global Asset Allocation & ALM Risk categories

Risk subcategories

Tactical allocation* 04/10


Fixed income






Fixed income United States



= -

= -





Euro issuers Corporate Invest.Grade




United States Euro zone

+ =

= +




















Euro zone UK Emerging markets Japan

Currencies (against the euro)

Commodities Oil Gold Scale from -- to ++

*weighting gap vs. strategic allocation of an investor


June 2010

n Fixed income It is possible that the ground gained at the long end of the curve on peripheral countries during the crisis will be lost (if yields rise and prices fall), should confidence return to the markets. French and German government bonds have effectively served as safe havens in this period. Any rise in yields will be minimal given that recessionary fears still linger and that the bond market is being “supported” by the ECB.

n Equities A rebound on the equity markets now looks to be in prospect. Firms are posting robust results and have built up considerable cash reserves, facilitating a rise in investment, while sales have been helped by the drop in the euro’s value. These firms have little debt, and restocking is only just beginning. While May’s crisis was not self-fulfilling and has not aroused firms’ mistrust over the business climate, the macroeconomic backdrop should provide the conditions for a recovery in private investment that has yet to get off the ground, and which

would foster growth. This could benefit euro-zone equities, which have markedly under-performed since the start of the year compared to US stocks.

n Currencies The structural difficulties of the euro-zone are still much in evidence, but a slowdown in the rise in risk aversion should boost the euro. However, in the medium term, government failings and comparatively weak growth are likely to continue to dampen the euro/dollar parity.

n Commodities The oil price has risen by more than 10 dollars during this particularly “psychological crisis”. This provides a reasonably accurate indication of speculation levels, since the economic fundamentals have not changed in the space of a few days (activity data remain firm). We could therefore see a modest rise in commodities prices.

Written on 28/05/2010

Markets Data France


CAC 40 CAC Mid 100 IT CAC 20 SBF 120 SBF 250

3 442.89 6 056.50 3 240.51 2 553.70 2 498.74



MSCI Europe EuroStoxx 50 DAX Footsie

84.40 2 573.32 3 497.52 4 916.87

United States


Dow Jones S&P 500 Nasdaq Brent Crude Future

9 774.02 1 030.71 2 109.24 75.01

1 year

1 year

Value 1 041.32

Eonia Euribor 3 months Euribor 6 months Euribor 1 year Fed Funds



-6.27% -7.57% -7.05% -3.75%

1 year

5 years French Treasury Bond 5 years USTN 10 years French Treasury Bond 10 years USTN 30 years French Treasury Bond 30 years USTN


-5.78% 9.52% 21.53% 9.79%

-11.04% -7.97% -2.14% -17.23%

1 year

2.010% 1.793% 3.082% 2.949% 3.742% 3.908%

0.141 -0.332 -0.272 -0.198 -0.130

2010 0.132 0.067 0.047 0.058 0.040

1 year -0.766 -0.757 -0.647 -0.580 -0.608 -0.423

2010 -0.469 -0.893 -0.511 -0.884 -0.518 -0.722

Currencies Value Euro/Dollar Euro/Yen (100) Euro/Sterling Dollar/Yen



0.542% 0.767% 1.041% 1.306% 0.090%

1 year

Fixed Income


15.71% 12.12% 14.94% 8.24%


Money Market Rate

-4.40% -13.21% -2.96% -9.16%

1 year

9 382.64 20 128.99 2 835.51 208.93

MSCI World

-12.54% -0.62% -3.83% -10.69% -10.42%

17.60% 7.15% 20.23% 15.71%

Nikkeï Hong Kong Singapore Shanghaï



9.63% 26.12% 19.15% 11.82% 11.90%


As of 30/06/2010


1.2249 108.3914 0.8188 88.4900

1 year -12.67% -19.91% -3.87% -8.29%

2010 -14.63% -18.85% -7.85% -4.95%

The monthly Index Euro/Dollar parity and its historical average 1.7 1.6 1.5 1.4 1.3 1.2 Historical average 1.1 2004







Following the high-points reached in December 2009 (around 1.5), the euro/dollar parity has dropped dramatically, standing at just above 1.2 at the end of May. Several factors have caused this drop in the European currency, including the changing economic situation between the USA and the euro area. The American recovery suggested that the tightening of the American monetary policy will happen at the same time of the ECB one, revealing a delay in Europe’s return to growth. This phenomenon was accentuated by the defiance shown concerning Greece and, through it, the euro area. This defiance helped to accelerate the fall in the single currency. This level remains nonetheless above the historical average parity between the American and the European currency. This could be interpreted as offering room maneuver for another drop in the euro, which would encourage European growth. As Europeans took considerable measures to adapt to the European currency being very expensive, this fall could give businesses some degree of freedom back and capacity to carve out margins again.

Source: Datastream - Calculations: Natixis Asset Management

June 2010


Overwiew of our international Product range Sub funds of the Natixis International F unds (Lux) I SICAV managed by Natixis AM These 7 sub funds of the Natixis International Funds (Lux) I SICAV reflect the key expertise of Natixis Asset Management

Natixis Euro Aggregate Plus Fund éric


elan belle D


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


LU0161120547 LU0391146155 LU0161121271 LU0390502184

Natixis Global Inflation Fund Get the most out of diversification in inflationindexed bonds in a global universe


Po Sophie

• Investment universe: International inflation-linked bonds • Benchmark: Barclays World Government Inflation linked all maturities Index hedged in euro • Minimum recommended investment period: 2 years • Risk Indicator: Target tracking-error ex ante of 2% (maximum)

H-I, A H-I, D I, A I, D R, A R, D


LU0390502267 LU0390502341 LU0255251166 LU0255251596 LU0255251679 LU0255251752

Natixis Impact Euro Corporate Bond Fund rbier

e Ba hristin


Benefiting from the SRI expertise of Natixis Asset Management through a socially responsible portfolio of investment grade corporate bonds

• Investment universe: Mainly Euro-denominated investment grade debt securities issued by OECD as well as cash, money market instruments or other securities • Benchmark: Barclays Euro Aggregate Corporate Index • Minimum recommended investment period: 3 years

I, A I, D R, A R, D


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.


June 2010

rade elond

Natixis Emerging Europe Fund


ois T


Get the most out of the growth in the emerging European zone as part of a conviction management strategy

ieu B


• Investment universe: Emerging Europe Equities • Benchmark: None (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


LU0147917792 LU0095830922 LU0095831060 LU0147918923 LU0084288595 LU0084288678

Natixis Europe Smaller Companies Fund Benefiting from the potential of European Small & Midcaps within the scope of a convictionbased strategy


Cuy hierry


• Investment universe: European Small and Mid Equities •B  enchmark: None (MSCI Europe Small Caps NDR: indicative only) •M  inimum recommended investment period: 5 years •R  isk Indicator: Target tracking-error ex ante between 4 and 7 (indicative)

I, A I, D R, A R, D


LU0095827381 LU0095828272 LU0064070138 LU0064070211

Natixis Euro Value Fund Tapping the potential of Eurozone value equities within the scope of a conviction-based strategy


efè livier L


• Investment universe: Eurozone Equities • Benchmark: None (MSCI EMU NDR: indicative only) • Minimum recommended investment period: 5 years

I, A I, D R, A R, D


LU0389329003 LU0389329185 LU0389329342 LU0389329425

Natixis Impact Europe Equities Fund Active and responsible investing to maximise SRI value added


e Le hristin


• Investment universe: European equities • Benchmark: None (MSCI Europe: indicative only) • Minimum recommended investment period: 3 years

I, C I, D R, C R, D


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.

June 2010


Overwiew of our international Product range Natixis Asset Management's funds offer a range of expertise and innovation 28 complementary funds covering all asset classes. This quarterly reviewed list of funds aims to highlight Natixis Asset Management's most innovative products and its wide range of expertise.

BalanAltern. Absolute return ced


Fixed income

Money Market

Asset class Fund name

Share and ISIN code

Natixis Cash Première

C: FR0010157834

Natixis Cash A1P1

C: FR0010322438

Natixis Impact Cash

C: FR0010008003

Natixis Cash Eonia

I: FR0010298943

Natixis Tréso Euribor 3 Mois

R: FR0007084926


Natixis Tréso Plus 3 Mois


Natixis Souverains Euro 1-3

I: FR0010208421

Natixis Souverains Euro 3-5


Natixis Souverains Euro 5-7


Natixis Souverains Euro 7-10


Natixis Souverains Euro

RC: FR0000003196

Natixis Inflation Euro

I: FR0007475413

R: FR0010170944

Natixis Obli Opportunités 12 Mois

I : FR0010796391

R : FR0007493226

Natixis Crédit Euro

I: FR0010171108

R: FR0010690966

Natixis Convertibles Euro

I: FR0010658963

R: FR0010660142

Natixis Convertibles Europe

C: FR0010171678

Natixis Actions Europe Dividende

IC: FR0010582478

RC: FR0010573782

Natixis Impact Life Quality

C: FR0010410274

E: FR0010458539

Natixis Actions Europe Convictions

C: FR0010346429

Natixis Actions US Value

I: FR0010256412

Natixis Actions US Growth

I: FR0010256404

R: FR0010236877

Sonic Monde

I: FR0010555797

RC: FR0000993446

Natixis Actions Global Emergents

I: FR0010711051

R: FR0010706960

Natixis Absolute Quant Bond 18 M

I: FR0010232348

R: FR0010249219

IC: FR0010654921

RC: FR0010657924

IC, $: LU0161071237

IC, €: LU0161073951

Natixis Absolute Swap Arbitrage Natixis Constellation European Event Natixis Absolute Multistratégies

R: FR0010236893

IC: FR0010688812

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.


June 2010

Product Focus Natixis Souverains Euro Interview with... Olivier de Larouzière, Head of interest rate and Foreign exchange

Natixis Souverains Euro is a Natixis AM fixed-income fund which aims at benefiting from an active management of eurozone sovereign bonds. Rated Lipper Leader for Consistent Return over 3 years, the fund stands out against the background of a complex market steeped in uncertainty…

What are Natixis Souverains Euro’s added value sources?

An active conviction-based strategy relying on Natixis Asset Management’s fixed income expertise

The fund's management process relies mainly on 4 sources of added value to meet its objective:

In order to outperform the JP Morgan EMU Global index (representing eurozone government bonds of all maturities) over an investment period of at least three years, the Natixis Souverains Euro management team relies on complementary inputs produced by different teams allowing the ranking of the strategies applied to the portfolio:

n active management of duration: depending on its expectations on interest rate trends, the investment team defines a target modified duration within a range of 3 to 9; n dynamic allocation on the yield curve: depending on expectations on distortions in the yield curve (steepening or flattening), the investment team defines an allocation in relation to the benchmark index on short, medium and long-term maturities (0 to 50 years); n relative weighting between eurozone markets: depending on its opinions on domestic markets and the relative expensiveness of government bonds, the investment team takes advantage of interest rate differences between government bonds from the different eurozone countries; n diversification: mainly through inflation-indexed bonds to improve the risk/return ratio and benefit from inflationary tensions in the interest rate markets.

1. The first one is the conclusion made by the Macroeconomic Research strategists; 2. The second one is the analysis of 6 specialised task forces (Sector Teams) which provide opinions on key elements of the fixed income markets: duration, yield curve, relative value, inflation, technical analysis and volatility. The Sector Teams combine members of the following departments: interest rate management, Insurance management, Trading Desk, financial strategists and economists; 3. The last one is the recommendations of the specialist interest rate committees, which integrate all the research inputs and prioritise the strategies to be implemented in the portfolio. This initial phase produces a model portfolio which takes account of ex-ante tracking error constraints by type of strategy. Finally, I build the real portfolio, incorporating its leeway.

Macroeconomic research

Sector Teams Duration

Yield curve

Relative Value


Technical analysis


Analysis of key macroeconomic factors and of the situation on fixed income markets Government Bond Committee Phase 1

Selection and prioritization of asset classes and strategies According to expected returns and strength of team's conviction

Phase 2

Model portfolio construction Fund manager

Phase 3

Compliance with leeway

Conception of real portfolio

Integration, by iteration of the ex ante tracking-error constraints for each strategy

(1) Source Lipper as of 31/05/2010. The Lipper Rating for Consistent Return 3 Years identifies a fund that has provided relatively superior consistency and risk-adjusted returns compared to funds of same category. The overall calculation is based on an equal-weighted average of percentile ranks.

June 2010


The Natixis AM's fixed income expertise awarded Olivier de Larouzière, portfolio manager of Natixis Souverains Euro and Head of Interest Rates & Foreign Exchange, was awarded Manager of the Month by Lipper. This award is made on the basis of the fund’s performance over the preceding month and on its consistency over time. The award thus recognises the strength of its management and its ability to generate returns over the long-term. Past performance or reference to any rankings or awards cannot be interpreted as indicating the future performance of a fund or its manager.

FUND FEATURES I Share Asset Manager

R Share

Natixis Asset Management

Legal Form

French SICAV

UCITS compliant


Inception date

19 January 1994

Accounting currency

EUR FR0010655456/ Accumulation

FR0000003196/ Accumulation FR0000171233/ Distribution

Maximum operating and management fees including taxes



Maximum subscription fee

not paid to the fund



paid to the fund


Maximum redemption fee

not paid to the fund


paid to the fund


ISIN/Allocation income

Performance fee including taxes


Minimum share fraction

One ten-thousandth

Minimum initial subscription

e 100,000


Initial Net Asset Value

e 100,000

e 152.45

Net Asset Value calculation


Cut-off time

D 12.30pm (CET)

* Basis: net assets (excluding Natixis Global Asset Management funds). ** Excluding any exoneration.


June 2010


Natixis AM and microfinance investments

Product News Treasury management: Natixis AM launches Natixis Court Terme 6 Mois Due to the crisis currently affecting the eurozone, the prospects of a rise in interest rates are receding. Investors therefore have to find solutions to adapt to a sustained period of low money market interest rates. In this context, Natixis Asset Management has just launched Natixis Court Terme 6 Mois, a new short-term bond fund that aims to achieve more attractive

n Natixis Court Terme 6 Mois briefly Over its minimum recommended investment period, Natixis Court Terme 6 Mois aims to achieve an annualized performance that exceeds capitalized Eonia by 0.30% in the case of I(C)(1). Active management of modified duration… The Natixis Court Terme 6 Mois investment team relies on the core scenario drawn up by Natixis Asset Management’s Macroeconomic and Money Market Committees. Depending on expectations with regard to the central banks’ monetary policies and yield curve fluctuations, the money market investment team decides on an appropriate allocation between fixed and variable rates. The fund also operates within a modified duration range of 0 to 0.5. …combined with rigorous securities selection criteria Natixis Court Terme 6 Mois purchases all types of debt securities issued by private entities or governments and benefiting from an Investment Grade rating(2). The fund is not permitted to invest in securities issued by securitization vehicles. The investment team relies on the recommendations of Natixis Asset Management’s team of credit analysts for its selection of securities within the money market investment universe. In addition, a division dedicated to Credit Risk in the Risk Department constantly checks compliance with the conditions for eligibility of the securities included in the investment universe.

n Natixis AM’s expertise in treasury management Natixis Asset Management is one of the leaders in treasury management in Europe: • 2 in France - EuroPerformance(3) • 3 in Europe - FeriFund Market(4)


Net of fees.


Their minimum long-term rating will be BBB- or Baa3 (Investment Grade). In the case of issuers not having a long-term rating, and only if the debt securities have a residual maturity of less than one year, the minimum short-term rating will be A3 or P3 or F3. (3)

As of 31/03/2010 in terms au AuM.


As of 31/01/2010 in terms au AuM.

Natixis Asset Management via its existing French microfinance SICAV Natixis Impact Nord-Sud Développement, took part in the transformation of PlaNIS, the entity of the PlaNet Finance Group(1) dealing with advice on Socially Responsible Investment microfinance funds (SRI), which became a Planet Finance subsidiary. This creation will enable PlaNIS to consolidate its position as second in the world and first in France for microfinance investment advice. "This partnership with the PlaNet Finance Group, a major player in originating and following up microfinance projects throughout the world, confirms our ambition to maintain our position as leaders in solidarity financing in France with our SICAV Natixis Impact Nord-Sud Développement", explains Christophe Point, General Director of the SICAV Natixis Impact Nord-Sud Développement and Head of Sales at Natixis Asset Management. The initial funds raised also give PlaNIS the backing of Natixis Asset Management, a pioneer of Responsible Investment and a leader of solidarity in management in France(2). Strengthened by its five years of experience, PlaNIS is entering on a new stage. Its new subsidiary status will give it the means to develop new projects and strengthen its presence on the ground and so to maintain strong control of the quality of its analyses for the funds to which it acts as advisor. PlaNIS will also pursue its 3 major axes of development: - provide finance to more microfinance institutions - consolidate its presence in the different parts of the world - continue its programme MicroFix which aims to connect the microfinance sector to the capital markets by facilitating recourse to exchange risk cover Currently, with a team of 13 permanent staff, PlaNIS manages a portfolio of 165 million USD, spread over 77 Microfinance Institutions (MFI) in 30 countries, with various European microfinance funds. (1) P  laNet Finance is an organisation working for international solidarity. Its mission is to fight against poverty by developing microfinance in order to improve access to financial services for peoples who are poor and who are excluded from such services. It is based in Paris. PlaNet Finance and its international network are active in nearly 80 countries []. (2) S  ource: 2009 Edition of Finansol’s professional barometer of solidarity financing. (Finansol is a professional association whose aim is to develop solidarity in savings and finance.)

June 2010


Perspectives is a Natixis Asset Management's publication - Communications Department - Business Development - - June 2010.

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 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



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