Actively Combating Portfolio Volatility

Has the relative stability of market returns in recent years lulled clients into a false sense of security about passive investing? According to institutional investors and wholesale portfolio managers (i.e., those who manage portfolios for certain insurance investment platforms, fund-of-fund solutions and third-party asset management platforms), this could be a significant issue facing individuals when…

4 Reasons Why the VIX May Double in the Next Year

By: Brett Olsen – Nicholas J. Elward There has been much discussion lately about how stock market volatility is at near historic lows. The Chicago Board Options Exchange Volatility Index® (or VIX)1, a measure of implied or future volatility, is at a level of roughly 11 as of October 24, 2017. If one looks at the…

Tax Efficient Investing: Income Splitting

Robert Handelman, Vice President of Tax & Wealth, explains how shifting assets within a family from a high-income earner to a low-income earner can maximize an investor’s after-tax return by reducing the total amount of income tax paid. Learn how Natixis Tax Class Funds can help maximize your after-tax return.

The Risk Management Challenge

Managing clients and their emotions is no easy task. Investors are looking for nearly double-digit returns, but say if forced to choose they would take safety over performance. Balancing risk and return is a key focus for client conversations. Our latest Global Survey of Individual Investors found that understanding risk is a major area of…

Preferred Share Market Enjoyed a Strong Month in September as Investors Focused on the Favourable Economic Conditions

The preferred share market enjoyed a strong month in September even as other fixed income instruments, such as bonds, struggled. Preferred share investors focussed on the favourable economic conditions and good corporate creditworthiness, and ignored geopolitical events and hurricanes. A somewhat surprising interest rate increase by the Bank of Canada (BOC) had positive ripple effects…

Building Trust with Investors

DAVID GOODSELL Executive Director of the Durable Portfolio Construction Research Center Natixis Investment Managers – U.S. Distribution In today’s complex and uncertain world, trust may be the most valuable of all investor assets. Every day, individuals across the globe are presented with a seemingly endless stream of news and often conflicting analysis. What investors hear…

Trust, Transparency and the Quest for Clarity: Investor Attitudes on Investing

After a decade of extremes, a majority of investors across the globe report they feel financially secure and focused on achieving long-term financial goals, but a deeper look at sentiment reveals that the scars of the global financial crisis may still run deep and many don’t know who to trust. Asset managers have an opportunity…

Tax Efficient Investing: Compound Growth

Robert Handelman, Vice President of Tax & Wealth, explains how a Compound Growth portfolio can maximize an investor’s after-tax return by minimizing tax drag and accelerating the long-term growth of their investment. Learn how Natixis Tax Class Funds can help maximize your after-tax return.

Preferred Share Market Declined in August as Risk-Off Sentiment Permeated Most Financial Markets

The preferred share market declined in August as risk-off sentiment permeated most financial markets. Geopolitical concerns arising from a nuclear shouting match between North Korea and the U.S. were the main cause of the more cautious investor attitude. Terror attacks in Europe and the threat of a U.S. government shutdown exacerbated the risk-off sentiment. In…

Low Volatility in a High Risk World – 3 Reasons for Gateway Low Volatility U.S. Equity Fund

As the aging bull market lumbers into its ninth year, many investors are growing concerned about the increasing chance of pullbacks in stocks – and even about the next bear market. Equity valuations are stretched, interest rates for bonds are still low and set to rise, and volatility could reappear any time. Gateway Investment Advisers…

Is a Tax-Efficient Investment Worth Paying For?

ROBERT HANDELMAN, CPA, CA, CFP, CIM, BBA Vice President, Tax & Wealth Natixis Investment Managers There are not many topics in the investment world that bring unity amongst investors like the pursuit of keeping more. Whether the goal of keeping more is centred around relatives, lifestyle or philanthropy, this single goal drives us to invest and…

Exercise Caution: Gauging the Way Forward in Current Markets

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Global Asset Management — U.S. Distribution Around the globe, equities are advancing or holding near recent highs. Corporate sectors of the bond market are maintaining higher yields than government and agency bond issuances. Credit spreads – or the difference in yield between two bonds…

Understanding the Value of Active Share

How much value does your fund manager add to your equity investments? Active Share is one tool that can help answer the question by accurately measuring how similar the securities in a fund are to its benchmark. Active Share calculates the percentage of a fund’s holdings that deviates from benchmark holdings and/or benchmark weights. In…

2017 Pulse Survey of Canadian Investors: Helping Clients Understand How Taxes Can Affect Portfolios

Investor Insight: The Drag of Taxes In Canada, where top rate taxpayers can lose more than half of their investment income to taxes, we find that investors are acutely aware of the need to more effectively manage tax drag on their portfolio. This should be an important consideration for financial professionals, as 20% of investors…

World Faces Aging Population and Retirement Funding Burdens

Retirement security is being challenged worldwide by aging populations, low interest rates, shrinking government revenues, and growing pension deficits. At the same time, three in four investors worldwide say they now feel the responsibility to fund retirement is increasingly on their shoulders.1 To delve into global economic trends effecting retirement, along with factors investors may…

Looking Back at “Whatever It Takes”: Europe’s Economic Renaissance

By: Josh Pritchard July 26, 2017 marked the fifth anniversary of European Central Bank (ECB) President Mario Draghi’s fateful statement to a panel discussion in London that had gathered to discuss the future of the Eurozone. At the time, there were concerns that Europe’s currency union could collapse as the result of massive debt burdens held…

Preferred Shares Enjoy Another Good Month in July, Prompted by Rising Bond Yields and Interest Rates

The preferred share market enjoyed another good month in July. Rising bond yields and interest rates prompted higher prices for rate reset and floating rate issues, but lower prices for perpetual issues. Fixed rate reset issues gained 2.2% in the month, while perpetual issues declined 1.8%. On balance, the S&P/TSX Preferred Share index returned 1.11%…

The Advisor’s Role as “Chief Financial Officer” in Client Retirement

DAVID GOODSELL Executive Director of the Durable Portfolio Construction Research Center Natixis Investment Managers – U.S. Distribution Retirement income planning should be a simple word problem that can be solved with basic math. Start with estimated annual expenses in retirement. Multiply that figure by the estimated number of years in retirement, then divide by the…

Strong Performance by Rate Reset Issues Propelled Preferred Shares to a Robust Return in June

Strong performance by rate reset issues propelled the S&P/TSX Preferred Share index to a robust 2.84% return in June. Rising bond yields led to increased buying interest in rate reset shares, but growth in preferred share Exchange Traded Funds (ETFs) were also a factor. Approximately $260 million of new deposits flowed into the largest ETFs,…

Understanding Subdued Market Volatility

By: D. David Jilek, RMA, CAIA® On June 2, the Chicago Board Options Exchange Volatility Index® or VIX1 reached a year-to-date closing low of 9.75, just above its all-time low of 9.31 in December 1993. While some have expressed a view that widespread volatility selling2 has driven volatility to “artificially” low levels, we do not share this view. We…