macro analysis
Asset Allocation
The complementarity of economic policies in the United States
The key factor in risk appetite
Focus expertise Absolute return bond funds
April 2009
perspectives
Macroeconomic Analysis The complementarity of economic policies in the United States “‘The current orientation of US economic policy is aimed at supporting activity in order to limit the deterioration in the employment market and encourage inflationary expectations….”
2
by Philippe Waechter, Chief Economist
Asset Allocation Asset allocation: the key factor is risk appetite “The relative performance of equity and bond markets will depend more on the evolution of risk aversion than on economic statistics or corporate results…”
4
by Franck Nicolas, Head of Global Asset Allocation & ALM
Market Data 5
Monthly Market Data 10-year bond rates
Overview of our international product range Summary of Natixis Asset Management’s international offer and of its expertise
6
Monthly Focus: Expertise Natixis Asset Management's expertise in absolute return bond funds “Absolute performance funds are an essential component of a well diversified bond portfolio in a context of historically low returns on bond markets by adding a degree of dynamism to fixed-income allocations. In addition to its excellent reputation in the fixed-income sector, Natixis Asset Management has developed significant expertise in delivering absolute returns”:
9
10
Natixis Absolute Swap Arbitrage
Natixis Absolute Quant Bond 12 M
12
Natixis Absolute Quant Bond 18 M
14
by Nathalie Pistre, Deputy Head of Fixed Income
News The 5th Natixis Asset Management Client Workshop “The 5th Natixis Asset Management Client Workshop brought together 185 clients around the theme “Towards a European zero interest policy in 2009? The investment consequences?”
16
Data as of 02/28/2009 Perspectives is a Natixis Asset Management's publication Contact: communication-nam@am.natixis.fr Publishing Director: F. Lenoir Editorial Committee: F. Delorme, S.de Quelen, H. Henriques, A.Lançon, K.Massicot, P. Le Mée, R. Monclar, F. Nicolas, A. Reynier, M-L. Rouy, Z.Saoudi, Ph. Waechter Coordination - Writing : N. Clémot Head of design: F.Dupertuys Contributors: F. Galène, D. Levadoux, S. Mallet, N. Pistre
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 www.am.natixis.com
Natixis Multimanager Subsidiary of Natixis Asset Management A French simplified joint-stock company Share Capital of 7 536 452 euros RCS Number 438 284 192 Paris Regulated by AMF under n°GP 01-054 Registered Office: 1-3, rue des Italiens 75009 Paris Tel. +33 1 78 40 32 00 www.multimanager.natixis.com
Cover picture: Bandstand Cutural Center, de La Warr Pavilion,Bexhill-on-sea.England. Niall McLaughlin Architects. Photography: Nicholas Kane/Corbis.
Editorial
When crisis strikes, it is imperative to act. Governments and central banks are well aware of this, particularly in the Anglo-Saxon economies but also in China. For months now, governments have been announcing support packages for the economy and stimulus policies one after another. At the current stage, the aim of any stimulus is still to limit the collateral damage from the crisis and restore confidence. Limiting collateral damage from the crisis: in the USA, explains Philippe Waechter, Chief Economist of Natixis Asset Management, the key short-term aim is to limit the risk of a collapse in the labor market. His article compares the solutions currently being proposed with those used during the depression of the 1930s.
Philippe Zaouati Head of Business Development
Quantitative easing, one of the cornerstones of the current approach, proved effective then in dragging the US economy out of its rut. Same problem, same solution? He turns his mind to this question in his Macroeconomic Analysis pages 2 - 3. Restoring confidence: more than economic statistics or corporate earnings, it is the shifting perceptions of risk that are crucial to the relative performance of equities and bonds alike, explains Franck Nicolas, Head of Global Asset Allocation & ALM [Asset Allocation page 4]. In this tough environment, central banks have opted for low policy rates and these are raising new issues for investors. These are issues that Natixis Asset Management was keen to address at its 5th Natixis Asset Management Client Workshop for 185 participants [News section page 16]. In a round-table discussion Natixis Asset Management’s experts exchanged views on the topic “Towards a European zero interest policy in 2009? The investment consequences?” – questions to which Nathalie Pistre, Deputy Head of Fixed Income and CDO management, also offers some possible answers in the monthly Focus Expertise, devoted to absolute performance expertise in fixed-income at Natixis Asset Management [page 9]. Finally, this issue includes a summary of Natixis Asset Management’s international offer [page 6 to 8] with a particular focus on Natixis Asset Management’s absolute performance fixed-income funds [pages 10 to 15]. Enjoy reading it. Philippe Zaouati Head of Business Development
www.am.natixis.com
April 2009
1
Macro Analysis
Philippe Waechter The Context We can draw a parallel between the solutions to the crisis currently being proposed and those used as of 1933, which proved effective in terms of lifting the US economy out of recession. To reiterate, it was first and foremost an expansionist monetary policy (quantitative easing) that then enabled a return to growth.
The Key Point The current orientation of US economic policy is aimed at supporting activity in order to limit the deterioration in the employment market and encourage inflationary expectations. The objective is to force down the real ex ante interest rate in order to reduce the incentive to hold cash, encourage spending and thus economic activity.
The Challenge Given the very low growth of the last few months and the significant deviation from the longterm growth trend, any potential recovery in activity in 2010 will not automatically create nominal strains and will have no immediate impact on the inflation rate. The Fed will thus have time to ‘mop up’ a large part of the liquidity currently being injected.
* Quantitative easing: strategy aimed at increasing the monetary aggregates when interest rates are very close to 0% and can go no lower.
2
April 2009
Chief Economist
The complementarity of economic policies in the United States In April 1933, the convertibility between the dollar and gold was suspended. This sudden change resulted in the devaluation of the green back and a revaluation in gold, prompting a rapid increase in gold stocks in the United States. Associated with significant capital flows as of 1934, the renewed flexibility in the dollar prompted a spectacular increase in the monetary aggregates.
Quantitative easing: a successful historical precedent The US monetary authorities thus deployed a strategy of quantitative easing*. The monetary aggregates then increased very rapidly, lifting the US economy out of recession. As of 1934, US GDP growth ranged from 5% to 10% per year through to 1944 (except in 1938). One of the interesting aspects of the mechanisms used to transmit this monetary strategy to the economy is that it triggered high inflation expectations. Consequently, real ex ante interest rates became very negative, encouraging companies and households to take on debt. As of 1934, a recovery in consumption and investment was seen. The inflation rate was to increase only much later, as of 1942. This episode is instructive in terms of the way the US economy exited from its dramatic downturn lasting from late 1929 until 1933. Very low nominal interest rates and quantitative easing resulted in very negative ex ante real rates which enabled the return to growth. The other instructive aspect is that this proactive monetary policy was accompanied by limited fiscal support. The impetus to economic activity linked to fiscal policy was modest but real nonetheless (only beginning in 1932-33 when the government freed itself from the constraint of systematically
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balancing the public accounts). It was even restrictive in 1937 and 1938, which was to penalize growth. Fiscal policy was not generally the decisive factor in the recovery in activity. This period is very relevant when it comes to understanding the policies currently being implemented in the United States but also to explaining that, even if the activity level remained below its long-term trend until 1942, it was not the Second World War that effectively lifted the US economy out of its rut.
Quantitative easing: an effective source of inspiration? The philosophy of the policy response currently being implemented in the United States is close to that outlined above. The Fed has adopted a strategy of very low interest rates (between 0% and 0.25%) and a sizeable liquidity injection which is reflected in the significant increase in the monetary indicators. This process is, however, being supplemented by a more pro-active fiscal policy in order to reduce, as rapidly as possible, the risk of a freefall in economic activity. The aim of this US Treasury strategy is to contain the rise in unemployment. The reasoning of the US authorities is as follows: the expansionist monetary policy as of 1933-34 enabled the country to emerge from recession. However, had the fiscal policy, at the time, been more pro-active, the unemployment rate would certainly not have risen to close to 25%. The massive stimulus package of the new US administration is thus based on this same rationale and we are currently witnessing the following sequence: a massive fiscal stimulus and quantitative easing from the Fed prompting higher inflation expectations reflected in very low ex ante real rates. In addition, the Fed has implemented a plan aimed at facilitating
Macro Analysis credit to companies and households (TAFL: Term Asset-backed Securities Loan Facility). All these measures have been deployed in order to support shortterm activity and encourage the economic players not to defer spending.
The limits of the model However the ‘copy and paste’ method has its limits which are repeatedly being tested by the current situation. n The first concern is the resolution of the banking problem. The banking system is still penalized by the existence of ‘toxic’ assets whose balance sheet values are low. It is this asset depreciation which is responsible for the banking losses. In 1933, this issue had been resolved and
The current orientation of US economic policy is aimed at supporting activity in order to limit the deterioration in the employment market and encourage inflationary expectations… the functioning of the banking system was governed going forward by a series of new regulations. Currently this is not yet the case and represents the ongoing dilemma for
the new administration since there can be no healthy, solid and sustainable recovery without a robust banking system. And the plan presented by the administration in mid March does not resolve all the outstanding issues in the banking sector. n The second constraint is the historically high level of US household debt. This reduces their short-term room for manoeuvre and their ability to benefit from very low interest rates. It is in order to reduce the impact of this debt constraint that the US administration is multiplying initiatives both in terms of traditional (via the TALF) and real estate credit (via the real estate package that facilitates refinancing).
Revisiting the issues This revisiting of the issues helps to put investor concerns more clearly into focus. n In the short term, the main aim is to reduce the risk of freefall in the jobs market. At the same time, since the usual remedies are becoming less effective, the Central Bank is increasing the monetary aggregates in order to create inflationary expectations and further lower the real ex ante interest rate. With the economy significantly below its long-term trend, effective inflationary tensions do not exist at the time this strategy is being deployed. In view of the situation in the employment market, upwards pressure on salaries is not imminent. There is thus a favorable situation in which the virtuous effects of the two economic policies (fiscal and
monetary) are being compounded. n In the medium term, once the economy has recovered a satisfactory cyclical momentum, the Feb will need to gradually put its accounts in order. In effect, after the recovery in activity, the nominal strains will be more evident and notably on salaries particularly when growth converges with its long-term trend. It is for this reason that the Fed must gradually unwind the portfolio it has constituted in order to absorb a portion of the liquidity previously injected.
Conclusion In the light of the experience of the 1930s, there could be a lag before the recovery in activity is followed by an acceleration in inflation. Since the US economy is well below its long-term trend (as is the global economy), nominal strains will take time to come through. This is why, as soon as the recovery is tangible, the Fed will need to act quickly. For the moment, however, there is no urgency as the real risk of inflation is still low. Written on 03/25/2009
The US National Debt in % of the GDP
Source: US Treasury/Datastream - Calcul : Natixis Asset Management
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April 2009
3
Asset Allocation Franck NICOLAS
Head of Global Asset Allocation & ALM
Asset allocation: the key factor is risk appetite The relative performance of equity and bond markets will depend more on the evolution of risk aversion than on economic statistics or corporate results. All newsflow suggesting a failure of counter-cyclical initiatives or deflation is favorable to low- or no-risk investments, whereas all advances towards a resolution of financial and economic problems will tend to boost the riskier asset classes. A technical rebound of equities markets would therefore suggest that investors have seen convincing details of plans to support the financial sector and of economic stimulus packages implemented by various governments around the world, particularly the United States. In the absence of such convincing evidence, bonds will outperform shares.
Our recommendations by asset class Risk categories
Risk subcategories
Tactical allocation* Feb. 09(1) Mar. 09(2)
Fixed income equities
+ =
+ +
fixed income United States
+
+
Euro UK Emerging countries Japan
+ +
+ +
-
-
=
=
Corporate
-
-
United States Euro
= =
+ +
UK
=
+
Japan
=
=
CURRENCIES
Dollar
=
=
(against the euro)
Yen
=
=
Pound
=
=
-
-
=
+
Euro issuers Equities
COMMODITIES Oil Gold
Scale from -- to ++ *weighting gap vs. strategic allocation of an investor
(1) Investment committee on 01/25/2009. (2) Investment committee on 02/26/2009.
4
April 2009
Fixed income The global recession, the sharp correction of commodity prices over the last 8 months and the financial crisis are all trend-favorable to fixed-income government bonds. The generalized adoption of more accommodative monetary policies to counter deflationary pressures also works in the same direction. However, the low levels of key interest rates already reached by the world’s major banks (some below 1%) limits the potential for the yield curve to acquire additional steepness as a result of rate cuts. And, the rapid increase in government debt levels is introducing the fear of an eviction effect that could have a potentially negative impact on bond markets. For the time being, the deflation fears are preponderant and justify holding long positions on government bonds, mainly in the Euro-zone.
Equities The announcement of the financial-rescue plan by US Treasury Secretary Tim Geithner was badly received by financial markets in the absence of implementation details and notably regarding the question of values to be attributed to toxic assets. This led to sharp corrections on equity markets. Moreover, some economic statistics that looked slightly more stable at the beginning of February further deteriorated during the month. Equity markets, and particularly the S&P500, fell back to their lowest levels since November 21, 2008 landing on technical supports which look quite solid, but which if broken, could lead to a significant additional backslide. Although valuations now look attractive, the sharp deterioration of the macro economic data is leading to further downward revisions of corporate earnings forecasts. More than corporate valuations, it is however
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investor’s appetite for risk (or lack thereof) that will determine the evolution of equity markets. So, for the time being, uncertainty about the environment, both financial and economic, will probably prevent a genuine recovery in stock markets other than a “bear market rebound” that could be sharp… but also short-lived.
Currencies The current slowdown, the fall in oil prices and the increase in the savings rates should help reduce the US trade deficit and could therefore lend some support to the dollar in the medium-term. In February 2008 the euro showed relative stability against the dollar despite the contraction of equity markets and fears of an economic and financial crisis in most Central European countries. The IMF’s support of a number of countries should be sufficient to attenuate the pressures and maintain the euro’s value against the dollar.
Commodities The various government stimulus packages, and particularly that of the United States, should have a positive impact, at least temporarily, on global economic activity that should, in turn, benefit commodity markets. In March, two themes will play a key role: the mid-month OPEC meeting and a possible increase of tensions with Iran. With respect to gold prices, a prudent approach would seem appropriate given that the risk premium is already very high and the level of speculative buying is close to its all time record. After its recent sharp progression, a correction may be expected. Written on 03/18/2009
Market Data
Money Market Rate
France
1 year
2009
CAC 40
2 702.48
-43.59%
-16.02%
CAC Mid 100
4 046.82
-41.35%
8.49%
IT CAC 20
2 541.49
-37.91%
-12.69%
SBF 120
1 956.45
-43.67%
-15.34%
SBF 250
1 909.34
-43.69%
-15.19%
Europe
Value
Value
1 year
2009
MSCI Europe
60.440
-45.76%
-12.95%
Euro Stoxx 50
1 976.230
-46.94%
-19.39%
DAX
3 843.74
-43.04%
-20.09%
Footsie
3 830.09
-35.18%
-13.62%
United States Dow Jones
Value
1 year
2009
7 062.93
-42.42%
-19.52%
S&P 500
735.09
-44.76%
-18.62%
Nasdaq
1 377.84
-39.34%
-12.63%
Brent Crude Future
Asia
46.35
-53.70%
1.67%
Value
1 year
2009
Nikkeï
7 568.42
-44.36%
-14.57%
Hong Kong
12 811.57
-47.35%
-10.95%
Singapore
1 594.87
-47.30%
-9.46%
Shanghaï
131.410
-57.69%
18.47%
World MSCI World
Value 750.860
1 year
2009
-48.41%
-18.40%
1 year
2009
Eonia
1.374%
-2.667%
-0.978%
Euribor 3 months
1.825%
-2.559%
-1.067%
Euribor 6 months
1.933%
-2.521%
-1.038%
Euribor 1 year
2.033%
-2.349%
-1.016%
Fed Funds
0.220%
-2.790%
0.130%
Fixed Income Rate
1 year
2009
5 years French Treasury Bond
2.525%
-1.120%
-0.198%
5 years USTN
1.984%
-0.497%
0.432%
10 years French Treasury Bond
3.604%
-0.497%
0.164%
10 years USTN
3.018%
-0.503%
0.804%
30 years French Treasury Bond
4.014%
-0.616%
0.291%
30 years USTN
3.711%
-0.709%
1.043%
Value
1 year
2009
Currencies Euro/Dollar
1.270
-16.34%
-8.63%
Euro/Yen (100)
124.268
-21.37%
-1.38%
Euro/Sterling
0.891
16.76%
-7.84%
Dollar/Yen
97.845
-6.01%
7.94%
As of 02/28/2009
10-year bond rates 10-year interest rates in the Euro zone and in the United States have moved almost in parallel with each other. Rates have moved in line with market expectations of monetary policy, which are themselves governed by inflationary trends. The point of interest is the gap between the two rates from the end of 2008 until early February 2009. Since December 16, 2008, the Fed key rate has lain within a [0 ; 0.25%] range. Unlike the ECB, the Fed has thus adopted a low-rate strategy, at the same time as indicating that it is giving itself scope to buy Government bonds. This break with precedent is reflected in a spectacular fall in American long rates. The Fed's strong activity suggested a far from negligible risk of deflation. The market promptly Euro zone followed this assumption, since inflation break-evens “went Source: Datastream Calculation: Natixis Asset Management USA back” strongly once more. The trend was also observable via future rates (the 5-year rate in 5 years' time) which retreated noticeably, suggesting market perception of a deflation situation (in a deflation situation, expected future rates are necessarily lower, in line with expectations of falling price trends). Subsequently, massive Fed interventions caused the deflationary risk to recede, with euro and dollar rates returning to comparable levels. Nevertheless, on March 18, 2009, the Fed announced a $300 bn operation to purchase Treasury bonds over a 6-month period. This strong move by the Fed drove a new gap between the rates of the two major economic powers, as can be observed from the closing section of the chart herewith.
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April 2009
5
Overview of our international product range Sub funds of the NIF (Lux) I SICAV managed by Natixis Asset Management
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
Méric
nnée-
e Dela Isabell
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 Euro Aggregate • Minimum recommended investment period: 3 years
I, C R, C
EUR EUR
LU0161120547 LU0161121271
Natixis Global Inflation Fund Potard
Get the most out of diversification in inflation-indexed bonds in a global universe • Investment universe: Mainly Euro denominated government or private issuers rated Investment - Diversifying fixed income assets • Benchmark: Barclays World Government Inflation linked all maturities Index hedged in euro F, C EUR LU0390502424 • Minimum recommended investment period: 2 years I, C EUR LU0255251166 • Risk Indicator: Tracking-error ex ante of 2%(maximum)
Sophie
Natixis Impact Euro Corporate Bond Fund aud
Benefiting from the SRI expertise of Natixis Asset Management through a socially responsible portfolio of investment grade corporate bonds
e Peyr
oph Christ
• 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, C R, C
See the full prospectus which is the only legally binding document.
6
January 2009
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EUR EUR
LU0155376477 LU0155380156
Sub funds of the NIF (Lux) I SICAV managed by Natixis Asset Management
de
ndra u Belo
ret is Thé
o
Franç
ie
Matth
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 • Minimum recommended investment period: 5 years • Risk Indicator: Tracking-error ex ante between 6 and 8
I, C I, C R, C R, C R, D
EUR USD EUR USD USD
LU0147917792 LU0095830922 LU0147918923 LU0084288595 LU0084288678
Natixis Europe Smaller Companies Fund Benefiting from the potential of European Small & Midcaps within the scope of a conviction-based strategy
pers
Cuy Thierry
• Investment universe: European Small and Mid Equities • Benchmark: None (MSCI Europe Small Cap: indicative only) • Minimum recommended investment period: 5 years • Risk Indicator: Tracking-error ex ante between 4 and 7 (indicative)
I, C R, C R, D
EUR EUR EUR
LU0095827381 LU0064070138 LU0064070211
Natixis Euro Value Fund Tapping the potential of Eurozone value equities within the scope of a conviction-based strategy
re
Lefèv Olivier
• Investment universe: Eurozone Equities • Benchmark: None (MSCI EMU DNR: indicative only) • Minimum recommended investment period: 5 years
I, C
EUR
LU0389329003
Natixis Impact Europe Equities Fund ine Christ
Active and responsible investing to maximise SRI value added
ton Lebre
• Investment universe: European equities • Benchmark: MSCI Europe • Minimum recommended investment period: 3 years
I, C I, D R, C R, D
EUR EUR EUR EUR
LU0095828512 LU0095828785 LU0066549592 LU0066549832
See the full prospectus which is the only legally binding document.
www.am.natixis.com
January 2009
7
Overview of our international product range Funds of Natixis Asset Management available through Private Placement
24 complementary funds covering all asset classes are available through Private Placement. This quarterly reviewed list of funds aims to provide Natixis Global Associates' teams* with the most innovative products of Natixis Asset Management and to offer a wider range of expertise.
Balanc. Altern.
Absolute return
Equities
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
FR0000293714
Natixis Souverains Euro 1-3
I: FR0010208421
Natixis Souverains Euro 7-10 Natixis Souverains Euro Natixis Inflation Euro Natixis Impact Nord-Sud Développement Natixis Convertibles Euro
R: FR0007084926
FR0000449092 RC: FR0000003196 I: FR0007475413
R: FR0010170944
C: FR0010532044 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
I: FR0010152967
C: FR0010058529
AAA Actions Agro Alimentaire Natixis Europe Avenir
FR0010231035
Sonic Monde
I: FR0010555797
RC: FR0000993446
Natixis Absolute Quant Bond 12M
I: FR0010297671
R: FR0007035191
Natixis Absolute Quant Bond 18M
I: FR0010232348
R: FR0010249219
Natixis Absolute Swap Arbitrage
IC: FR0010654921
RC: FR0010657924
Natixis Constellation European Event
IC: LU0161071237
HC: LU0161071583
Alpha Hedge +
RC: FR0010058453
Réactis Opportunités
I: FR0010555789
RC: FR0010216846
Réactis Emerging
I: FR0010634345
RC: FR0010626218
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 Global Associates is a global distribution platform which brings their investment expertise of the affilliated investment managers to clients outside France.
8
April 2009
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Monthly Focus: Expertise
Natixis AM 's expertise in absolute return bond funds Deputy Head of Fixed Income
Interview with Nathalie Pistre Why invest today in absolute performance bond funds?
In addition to its excellent reputation in the fixed-income sector, Natixis Asset Management has developed significant expertise in delivering absolute returns.
Absolute performance funds are an essential component of a well diversified bond portfolio in a context of historically low returns on bond markets by adding a degree of dynamism to fixed-income allocations.
Courtesy of this expertise, and with some EUR 1.7 billion under management as of end-February 2009(2), Natixis Asset Management aims to offer investors positive returns whatever the market conditions. Its management teams exploit market trends using a range of fixed-income strategies. Natixis Asset Management’s absolute performance funds aim to outperform the EONIA Total Return Index, while remaining within pre-defined risk parameters (expressed as VaR or a maximum drawdown level).
In fact, while the current crisis has underscored the necessity for risk analysis that goes beyond simple benchmark correlations, it has not removed the need for low risk investment vehicles that generate better returns than standard money-market funds.
With strict risk management controls in place, these absolute performance strategies have been developed in conjunction with the Structuring, Analysis, Modelling and Solutions department (SAMS), which is tasked with optimizing management processes and developing tools to aid analysis and decisionmaking.
How does Natixis Asset Management differentiate itself from its competitors in this type of management? Our absolute performance funds(1) seek to generate – independently of market trends – regular positive returns over the long-term and to minimise the frequency and magnitude of under-performances. Our funds use a panoply of sophisticated financial engineering techniques aimed at protecting the portfolios from market contractions. Our advantage is therefore our capacity to provide clients with a source of performance that is relatively independent from interest rate evolutions and our capacity to choose the best possible allocation for our sources of performance so that our managers can exercise their talents in a range of market situations. We also provide an exceptional level of transparency with regard to our absolute performance strategies. Absolute performance portfolios that combine reliability, transparency, innovation and rigorous risk control are the only vehicles likely to meet clients’ needs and to keep the promises they make.
Written on 03/20/2009
At Natixis Asset Management, absolute performance expertise is provided by the Quantitative Management, Arbitrage and Multi-Strategy teams.
Quantitative strategy: Natixis Absolute Quant Bond 12 M and Natixis Absolute Quant Bond 18 M This type of strategy seeks to exploit yield curve variations using a quantitative model that identifies market trends. For example, the Natixis Absolute Quant Bond 12 M fund invests in securities issued or guaranteed by the French government and has a modified duration range of between -2 and +2. Its annual performance target is to outperform EONIA capitalised by 60 bp over its 12-month investment horizon (I Share). The Natixis Absolute Quant Bond 18 M fund invests in securities issued or guaranteed by euro zone governments and has a modified duration range of between -4 and +4. Its annual performance target is to outperform the EONIA capitalised by 100 bp over its 18-month investment horizon (I Share).
Arbitrage strategy: Natixis Absolute Swap Arbitrage fund An arbitrage strategy aims to exploit inefficiencies on the interest rate swap market, while maintaining a duration of close to zero. The Natixis Absolute Swap Arbitrage fund employs a discretionary investment process based on quantitative filters that identify arbitrage opportunities on 10 interest rate swap curves in OECD countries, but with no currency risk. It targets annual performance in excess of 200 bp above the EONIA capitalised over its twoyear investment horizon (I Share).
Multi-strategy
(1) Cf. Product Focus on Natixis Absolute Swap Arbitrage, Natixis Absolute Quant Bond 12 M and Natixis Absolute Quant Bond 18 M page 10, 12 and 14. (2) Source: Natixis Asset Management.
Multi-strategy managers target optimum risk/return ratios by investing in a large number of asset classes (money market instruments, government and corporate bonds, high-yield bonds, convertible bonds, currencies, volatility) within a broad modified duration range. This approach is based on a highly reactive style of management and the expertise of strategists and specialists in each asset class, and is aimed at achieving the best possible portfolio allocation.
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April 2009
9
Monthly Focus: Product
Natixis Absolute Swap Arbitrage
Absolute performance through arbitrage strategies on interest rate swaps
What is the fund's strategy ? DieudonnĂŠ Djimi Portfolio manager
Key points n Innovative, complementary, and duration neutral arbitrage strategies with no currency risk n Interest rate swaps: standard and liquid instruments n A discretionary investment process based on quantitative tools facilitating the detection of a very large number of arbitrage opportunities
overview Target return Annual performance net of operating and management fees above Eonia capitalized + 2% (I share) Investment universe Interest rate swaps of selected OECD countries*, and Euro denominated debt securities and money market instruments Benchmark Eonia capitalized Minimum recommended investment period 2 years Risk indicator Target annual volatility of 3%
10
April 2009
Over an investment period of 2 years, Natixis Absolute Swap Arbitrage aims to attain an annual performance higher than Eonia + 2%, after operating and management fees (I share), while remaining within predefined risk parameters (target volatility of 3%). The investment team implements three types of swap curve arbitrage strategies, all duration neutral with no currency risk. These arbitrage positions are reached through interest rate swaps, off balance sheet derivative instruments, which are standard and liquid. The fund’s cash is mostly invested in debt securities and money market instruments. Natixis Absolute Swap Arbitrage’s investment philosophy is based on a simple observation: fixed income markets are inefficient by nature. The diversity of players, each with diverging objectives and constraints, creates different expectations with regards to the evolution of swap curves. These differences result in arbitrage opportunities within or between yield curves. The fund benefits from these opportunities through duration neutral arbitrage strategies on 10 swap curves from selected OECD countries*. The investment team has developed an expertise on interest rate swaps, specifically on spot rate spreads (spread between 2 spot rates) and forward rate spreads (spread between 2 future rates anticipated by the market). Spot swap yield curve
1 year forward swap yield curve
Yield
5-10 spot yield spread
Yield
Yield spread between a 5 year spot swap and a 10 year spot swap
4,0%
5-10 forward yield spread
2,0%
Yield spread between a 5 year forward swap and a 10 year forward swap
4,0%
2,0% Maturity (Years) 5
10
15
20
Maturity (Years) 5
10
15
20
Source : Natixis Asset Management
What are the sources of performance ? The fund studies a wide universe in order to identify opportunities for alpha creation. Natixis Asset Management has developed in-house quantitative tools allowing the detection of investment opportunities on a very large number of rate spread combinations (10 swap curves, spreads ranging from very short to very long maturities, several forward expiries). After a quantitative screening, the investment team selects the best opportunities on a discretionary basis. The portfolio combines 3 types of strategies: short term anticipations on the convergence or the divergence between forward and spot rate spreads medium term trend following strategies, capitalizing on lags between spot and forward rate spreads long-term repulsion strategies, in situations where rate spreads reach their historical boundaries
* Australia, Canada, Switzerland, Euro zone, Japan, New-Zealand, United-Kingdom, Sweden, Norway, United States
www.am.natixis.com
INVESTMENT TEAM n Swap curve: yield curve made up of different points corresponding to swap rates for different maturities. An interest rate swap is an over-thecounter contract that allows the exchange of one interest rate for another. n Spot rate: rate corresponding to market expectations for an immediate transaction. n Forward rate: rate anticipated by the market for a transaction which will begin at a future point in time n Rate spread: spread between two rates, spot or forward
The fixed income investment team of Natixis Asset Management comprises 39 specialised managers* with total assets under management of € 138.3 bn for this asset class. An investment team specialized in interest rate swaps is responsible for the management of Natixis Absolute Swap Arbitrage. This team works closely with the quantitative fixed income analysts, which ensure technological support and regularly develop new systems. * Source : Natixis Asset Management as of 31/12/2008.
RISK MANAGEMENT Natixis Absolute Swap Arbitrage is mainly exposed to an arbitrage risk, whitch depends on the portfolio management team’s ability to correctly anticipate the futue relative variations in international fixed income markets. To manage this risk, the team constantly takes into account a target weekly Value at Risk (VaR) of 0.70% with a 95% confidence interval, which corresponds to a target annual volatility of 3%. At all times, the team balances its VaR allocation between the different strategies, favouring positions with low historical correlations and combining tactical and strategic positions. The fund aims to be duration neutral and has therefore little exposure to interest rate markets.
Fund features I Share
R Share
Management Company
Natixis Asset Management
Legal form
French mutual fund (FCP)
UCITS compliant
Yes
Inception date
12 september 2008
Accounting currency
EUR FR0010654921/ Accumulation
FR0010657924/ Accumulation
Maximum operating and management fees including taxes
0.60%(1)
1%(1)
not paid to the fund
None
2%(2)
paid to the fund
None
None
not paid to the fund
None
None
paid to the fund
None
None
30% of the performance above Eonia capitalised + 200bps per year(3)
30% of the performance above Eonia capitalised + 160bps per year(3)
ISIN/Allocation of income
Maximum subscription fee Maximum redemption fee
Performance fee including taxes(2) Minimum share fraction
One ten-thousandth
Minimum initial subscription
€ 50,000
None
Intitial Net Asset Value
€ 50,000
€ 100
Net Asset Value calculation
Daily
Cut-off time
D 12:30pm (CET)
(1) Basis : net assets (2) Excluding any exoneration (3) After substracting management and operating fees and expenses
www.am.natixis.com
April 2009
11
Monthly Focus: Product
Natixis Absolute Quant Bond 12 M Dieudonné Djimi Portfolio manager
n An absolute return strategy in the euro zone’s fixed income markets n Enhance returns on cash by investing in government guaranteed securities n Proprietary quantitative models to capture market trends
overview Target return Annual performance net of operating and management fees above Eonia capitalised + 60 bps (I Share) Investment universe Euro-denominated securities, issued or guaranteed by the French government
A quantitative management approach taking advantage of fluctuations in the euro zone yield curve as part of an absolute return strategy
What is the fund's strategy ? Natixis Euro Aggregate Plus Fund invests in a broad universe of fixed income instruments. The fund’s objective is to outperform the Lehman Euro Aggregate index over a recommended investment period of three years. The portfolio comprises at least two thirds of government bonds and private issuers rated Investment Grade. In addition to this core universe, Natixis Euro Aggregate Plus Fund uses diversifying assets such as foreign currencies, high yield bonds, emerging debt, convertible bonds, and asset backed securities. These diversifying assets aim to improve the portfolio’s risk/ return ratio by spreading risks on decorrelated strategies.
What are the main steps in the investment process ? Natixis Absolute Quant Bond 12 M is distinctive in that it captures the trend in the euro zone yield curve whatever the market configuration. The financial engineers of Natixis Asset Management have perfected quantitative tools used to break down and analyse the elementary movements of the yield curve based on two main elements:
Rise in rates
S H TWIST F T
Négative modified duration
Key points
Benchmark Eonia capitalised
Parallel movement of the curve (rise/fall in rates) or «Shift» Distortion of the curve (steepening or flattening) or «Twist»
Minimum recommended investment period 12 months
9 market scenarios are pre-determined depending on the different Shift and Twist configurations.
Risk indicator Maximum monthly ex-ante VaR of 0.85 % (with a probability of 99 %)
Achat Taux longs The investment team defines a model portfolio for each of the nine scenarios. The purpose of these model portfolios is to optimise performance through long or short positions on short-term and long-term rates, under risk constraints (modified duration by pillars and VaR). Every day, a proprietary quantitative model enables the team to detect the market trend for the Shift and Twist elements, as well as the strength of the trend. This quantitative signal is compared to the expectations obtained from a macroeconomic model, also perfected in-house. Depending on the results (contradictory or not), the model portfolio is more or less weighted within the real portfolio.
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April 2009
Sell short term rates Buy long term rates
Fall in rates
Steepening Positive modified duration
Flattening
Buy long term rates Sell short term rates Vente Taux Courts
www.am.natixis.com
investment team The fixed income investment team of Natixis Asset Management comprises 39 specialised managers* with total assets under management of € 138.3 bn for this asset class. Within the division, a team in charge of quantitative bond strategies is responsible for technological intelligence and regularly perfects new quantitative models. A fund manager/quantitative analyst specialising in fixed income markets is specifically dedicated to managing the Natixis Absolute Quant Bond 12 M fund.
A trend detector identifies trends in the yield curve and determines buy/sell signals. This tool also includes two functions enabling the fund to be particularly responsive to market trends: n Implementation of a dynamic stop loss: strategies are neutralised when the trend becomes less pronounced. The investment team does not persist with a trend against the market.
* Source: Natixis Asset Management as of 31/12/2008.
Risk management The fund has a modified duration bracket of - 2 to + 2. The main risk related to this type of product is the interest rate risk, the risk of depreciation of fixed income instruments resulting from interest rate fluctuations. The maximum monthly ex-ante Value at Risk is 0.85 % with a probability of 99 %. The fund investment process also includes a maximum drawdown limited to 1.40 % under the historical high.
Take Profit strategy: profits are systematically taken when interest rate movements are pronounced.
n
Fund features I Share
R Share
Management Company
Natixis Asset Management
Legal form
French mutual fund (FCP)
UCITS compliant
Yes
Inception date
30 August 1999
Accounting currency
EUR FR0010684266 / Accumulation
FR0010684290 / Accumulation
Maximum operating and management fees including taxes(1)
0.30%
0.50%
Maximum subscription fee
not paid to the fund
None
2%(2)
paid to the fund
None
None
Maximum redemption fee
not paid to the fund
None
None
paid to the fund
None
None
30% of the performance in excess of Eonia capitalised + 60 bps(3)
30 % of the performance in excess of Eonia capitalised + 40 bps(3)
ISIN / Allocation of income
Performance fee including taxes(2) Minimum share fraction
One ten-thousandth
Minimum initial/subsequent subscription
€ 50,000 / One share
One share
€ 100,000
€ 50,000
Intitial Net Asset Value Net Asset Value calculation
Daily
Cut-off time
D 12:30pm (CET)
(1) Basis: net assets. (2) Excluding any exoneration. (3) After substracting management and operating fees and expenses.
www.am.natixis.com
April 2009
13
Monthly Focus: Product
Natixis Absolute Quant Bond 18 M Dieudonné Djimi Portfolio manager
n Enhance returns on cash by investing in government guaranteed securities n Proprietary quantitative models to capture market trends
overview Target return Annual performance net of operating and management fees above Eonia capitalised + 100 bps (I Share) Investment universe Euro-denominated securities, issued or guaranteed by euro zone member states Benchmark Eonia capitalised Minimum recommended investment period 18 months Risk indicator Maximum monthly ex-ante VaR of 1% (with a probability of 99 %)
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April 2009
What is the fund's strategy ? Natixis Absolute Quant Bond 18 M implements a quantitative management approach to take advantage of fluctuations in euro zone interest rates, both upwards and downwards. This absolute return strategy enables the fund to tap opportunities whatever the market configuration. The fund’s investment universe comprises euro-denominated securities, issued or guaranteed by euro zone member states. The fund managers also use fixed income derivatives to hedge or expose the portfolio. The fund’s modified duration bracket is - 4 to + 4. Natixis Absolute Quant Bond 18 M aims to outperform Eonia capitalised over the recommended investment horizon of 18 months.
What are the main steps in the investment process ? Natixis Absolute Quant Bond 18 M is distinctive in that it captures the trend in the euro zone yield curve whatever the market configuration. The financial engineers of Natixis Asset Management have perfected quantitative tools used to break down and analyse the elementary movements of the yield curve based on two main elements: Parallel movement of the curve (rise/fall in rates) or «Shift» Distortion of the curve (steepening or flattening) or «Twist»
Rise in rates
Flattening
9 market scenarios are pre-determined depending on the different Shift and Twist configurations
S H TWIST F T
Sell short term rates Buy long term rates
Fall in rates
Négative modified duration
n An absolute return strategy in the euro zone’s fixed income markets
A quantitative management approach taking advantage of fluctuations in the euro zone yield curve as part of an absolute return strategy
Steepening Positive modified duration
Key points
Buy long term rates Sell short term rates
The investment team defines a model Vente Taux Courts Achat Taux longs portfolio for each of the nine scenarios. The purpose of these model portfolios is to optimise performance through long or short positions on short-term and long-term rates, under risk constraints (modified duration by pillars and VaR). Every day, a proprietary quantitative model enables the team to detect the market trend for the Shift and Twist elements, as well as the strength of the trend. This quantitative signal is compared to the expectations obtained from a macroeconomic model, also perfected in-house. Depending on the results (contradictory or not), the model portfolio is more or less weighted within the real portfolio.
www.am.natixis.com
investment team A trend detector identifies trends in the yield curve and determines buy/sell signals. This tool also includes two functions enabling the fund to be particularly responsive to market trends:
The fixed income investment team of Natixis Asset Management comprises 39 specialised managers* with total assets under management of € 138.3 bn for this asset class. Within the division, a team in charge of quantitative bond strategies is responsible for technological intelligence and regularly perfects new quantitative models. A fund manager/quantitative analyst specialising in fixed income markets is specifically dedicated to managing the Natixis Absolute Quant Bond 18 M fund.
n Implementation of a dynamic stop loss: strategies are neutralised when the trend becomes less pronounced. The investment team does not persist with a trend against the market.
* Source: Natixis Asset Management as of 31/12/2008.
Risk management
Take Profit strategy: profits are systematically taken when interest rate movements are pronounced. n
The fund has a modified duration bracket of - 4 to + 4. The main risk related to this type of product is the interest rate risk, the risk of depreciation of fixed income instruments resulting from interest rate fluctuations. The maximum monthly exante Value at Risk is 1% with a probability of 99 %. The fund investment process also includes a maximum drawdown limited to 2 % under the historical high.
Fund features I Share
R Share
Management Company
Natixis Asset Management
Legal form
French mutual fund (FCP)
UCITS compliant
Yes
Inception date
14 September 2005
Accounting currency
EUR
ISIN / Allocation of income
FR0010232348 / Accumulation
FR0010249219 / Accumulation
0.36%
0.60%
None
2%(3)
Maximum operating and management fees including taxes(1) Maximum subscription fee
not paid to the fund paid to the fund
None
None
Maximum redemption fee
not paid to the fund
None
None
paid to the fund
None
None
23,92% of the performance in excess of Eonia capitalised + 100 bps(4)
23,92% of the performance in excess of Eonia capitalised + 76 bps(4)
Performance fee including taxes(2) Minimum share fraction
One hundredth
Minimum initial/subsequent subscription
€ 50,000 / One share
One share
€ 100,000
€ 100
Intitial Net Asset Value Net Asset Value calculation
Daily
Cut-off time
D 12:30pm (CET)
(1) Basis: net assets. (2) Basis: net assets. (3) Excluding any exoneration. (4) After substracting management and operating fees and expenses.
www.am.natixis.com
April 2009
15
News
NEWS IN BRIEF Natixis Asset Management at the 2009 Forum GI (Institutional Management Forum) Natixis Asset Management participated in the Paris 5th Forum GI (Institutional Management) focused this year on the theme “What new role for long-term investors?” This meeting constitutes an excellent occasion for exchanges of information and ideas between the different players in the world of finance (management companies, banks, investment service providers and providers of risk management solutions…) and institutional investors. During the Forum, Christophe Point, Head of Sales of Natixis Asset Management and his teams dedicated to Institutional Clients and Insurance Strategic Clients, made a number of useful contacts and were able to dialogue with potential and existing clients and present Natixis Asset Management’s commercial offer in detail. In addition, Ibrahima Kobar, Head of Fixed income and CDO Management, made a presentation at the workshop entitled “Fixed-income products and long-term management: what bond allocation model after the crisis?”.
Successful MatiNAM April meeting: “2009 or credit in a fix” The April MatiNAM meeting was attended by 46 participants and focused on the theme “2009 or credit in a fix”. Organized for Natixis Asset Management’s clients, this regular meeting is an occasion for clients to meet Natixis Asset Management’s experts, to hear their analyses of the financial markets and to discuss a specifically targeted theme with them. After an introduction by Christophe Point, Head of Sales, Philippe Waechter, Chief Economist presented his analysis of the current economic context. Then Ibrahima Kobar, Head of Fixed Income and CDO Management and Christophe Peyraud, Senior Credit Manager detailed the specificities of Natixis Asset Management’s bond management and its adaptation to the new market environment.
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April 2009
“Towards a European zero interest policy in 2009? The investment consequences ?” Introduced by Pascal Voisin, Natixis Asset Management’s CEO, the 5th Natixis Asset Management Client Workshop brought together 185 clients around the theme “Towards a European zero interest policy in 2009? The investment consequences ?”. This client event, which takes place three times a year, sees Natixis Asset Management experts participate in a round table format addressing topical issues. According to Philippe Waechter, Chief Economist of Natixis Asset Management, the downwards revision in growth rates and inflation in the Euro zone must prompt the ECB to lower its official rates to 0.75% (or even 0.50%) by June in order to reduce the negative asymmetrical shocks of the crisis in Europe. “However this cut, which mechanically involves a reduction in the return on money market funds, will be partially offset by credit spreads which should remain high for another few months”, explained Alain Richier, Head of Money Market management, who recommends extending investment maturities while naturally respecting the asset-liability constraints. He also advises a high degree of selectivity in terms of issuer. Lastly, other than on an overnight basis, Alain Richier prefers fixed income investments in order to guarantee the level of return. According to Ibrahima Kobar, Head of Fixed Income and CDO management, while it looks too early to switch into inflation-indexed securities, there are opportunities in short-dated Government bonds (given the intercountry spreads which are not justified by the fundamentals), but also in Government-guaranteed debt, corporate bonds (excluding subordinated debt and cyclicals) and in absolute return products. All are products for which the Natixis Asset Management expertise and credit research capability is widely recognized both in France and internationally.
Consult the Newsletter Natixis AM Workshop No.5 on www.am.natixis.com
www.am.natixis.com
Legal information This material has been prepared by Natixis Asset Management and is intended for the sole information of Natixis Global Asset Management, its subsidiaries and Natixis Global Associates. It shall not be disseminated to professional or non professional clients. 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. 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. In certain cases, this material is provided by one of the Natixis Global Associates entities listed below to its clients who qualify as Professional Clients or Qualified Investors. Natixis Global Associates is the global distribution organization of Natixis Global Asset Management, the holding company of a diverse line-up of specialised investment management and distribution entities worldwide. 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: Natixis Global Associates UK Limited, Canon Bridge House, 25 Dowgate Hill, London, EC4R 2YA.
• In the E.U. (outside of Germany, Italy, and the UK): This material is provided 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 Address of Natixis Global Associates S.A.: 2-8 Avenue Charles de Gaulle, L-1653 Luxembourg, Grand Duchy of Luxembourg. Registered Address of Natixis Global Associates International (n.509 471 173 RCS Paris): 21 quai d'Austerlitz, 75013 Paris.
• In the DIFC: This material is provided in and from the Dubai International Financial Center (DIFC) by Natixis Global Associates Middle East. It is 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 Dubai Financial Services Authority (DFSA). This communication should not be delivered to or relied on by any other type of person. Natixis Global Associates Middle East is the trade name for Natixis Global Associates Middle East, a branch of Natixis Global Associates UK Limited, which is duly licensed and regulated by the DFSA. Registered address: PO Box 118257, 5th Floor, Building 8, Gate Village, DIFC, Dubai, United Arab Emirates.
• In Italy: This material is provided 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 address: Via Larga, 4 - 20122, Milan, Italy.
• In Switzerland: This material is provided to Qualified Investors by Natixis Global Associates Switzerland Sàrl.
Contacts
Prospectus and sales documents required for subscription are available on demand: n Natixis Global Associates (Operations): offshoreops@ga.natixis.com n or CACEIS Luxembourg (Prime Transfer Agent): fb-reg-european-ta@eu.fasnetgroup.com n or Natixis Asset Management (Clients servicing): nam-service-clients@am.natixis.com
www.am.natixis.com
(352) 47 67 70 78
April 2009
17
THINK POSITIVE. • No. 1 French asset manager • No. 1 European asset manager
Grands Prix Le Monde Eurofonds - Fundclass 2009
Le Monde, one of France’s most prestigious newspapers, gives Natixis Asset Management its top rankings for consistent performance across its funds range over the past 4 years among asset managers offering more than 101 funds(1)
• Best Bond Group
Lipper Fund Awards 2009 (France)
Lipper gives Natixis Asset Management top ranking in the generalist category for the performance of its range of funds over 3 years(2)
• 1st prize Large Bond Group
La Tribune - Morningstar “Victoires des SICAV” Awards 2009
France’s leading business and financial newspaper, La Tribune, gives Natixis Asset Management top ranking for the performance of its range of funds in the large bond group category over 5 years(3)
Natixis Asset Management has again been recognized for its consistent results over time. With e 277 billion in assets under management as of December 31, 2008 and around 600 employees based in Paris, Natixis Asset Management offers institutional investors, large companies, distributors and banking networks a wide range of products and investments issues across all asset classes.
European expert of Natixis Global Asset Management www.am.natixis.com
Past performance or reference to any rankings or awards cannot be interpreted as indicating the future performance of a fund. (1) Companies with funds rated by Fundclass for at least four years as of 12/31/2008, and with more than 101 funds registered for sale in Europe. (Source: Le Monde Argent of 03/08/2009). (2) Companies with funds registered for sale in France and rated by Lipper for at least three years as of 12/31/2008. (Source: Lipper Thomson Reuters). (3) Companies with funds rated by Morningstar for at least five years as of 06/30/2008, and with more than 15 bond funds registered for sale in France. (Source: Morningstar).
WoZoCo Housing Project, Amsterdam, The Netherlands Natixis Asset Management - Agrément AMF n° GP 90-009 - RCS Paris 329 450 738