The World is Getting Older − Policy Needs to be Wiser

Retirement security is challenged on many fronts across the globe. Slow growth, low interest rates, and the looming threat of inflation stretch the economics of retirement funding. Debates about the viability of entitlement programs, the prioritization of short-term goals for lower taxes, and deficit reductions over ensuring long-term sustainability of retirement benefits make the politics…

Time to Prepare Portfolios for Volatility’s Return?

All has been relatively quiet across global markets for some time now. Except for a few short-lived volatility flare-ups, stocks have been climbing higher in many markets. In fact, the U.S. stock market, as measured by the S&P 500®,1 was up more than 15%* for the one-year period ending June 1, 2017, while the STOXX Europe…

Goals-based Investing: A Different Approach to Managing Risk

Most clients view risk as losing assets, market volatility or underperforming the benchmark, but isn’t the more relevant risk whether or not they will reach their goals? Isn’t that what really counts? Perhaps their financial plans should be structured around those goals – and so should client discussions.

Following Strong Gains Earlier in the Year, Investors Pull Back from Preferred Share Market in May

In last month’s commentary, we noted the potential for the preferred share market to consolidate during May, and that is what transpired, as the S&P/TSX Preferred Share index returned -1.67%. Following strong gains earlier in the year, investors appeared to pull back from the market leading to declines in prices of most issues. The weakness…

What’s Ahead for Stocks and Bonds in Second Half of 2017?

What markets have room to grow? When might volatility reappear? How do bonds look relative to equities for the next six months? Where are the opportunities? Varying views on global markets are expressed by investment professionals from across Natixis Global Asset Management in this midyear outlook. OUR PANEL RESPONSES DAVID G. HERRO CFA® Deputy Chairman,…

Retirement, Death, and Taxes. Are Investors Prepared for the Inevitable?

It’s been said that the only certainties in life are death and taxes. But now, as individuals are accountable for a greater share of post-work income, retirement is a third certainty that must be factored into long-term financial success. Despite this, many respondents in our 2017 Global Survey of Individual Investors are not taking all…

Interesting Times: What the Shift from Monetary to Fiscal Policy May Mean for Stocks

By: Dan Hughes The U.S. economy has added jobs for over 77 months in a row. Unemployment is at the lowest levels seen post-World War II. In many parts of the country, there is a shortage of skilled labor. In sum, the economy is doing well. With the S&P 500® up 15.75% for the one-year period…

Understanding the U.K. Snap Election Results

By: Lynda Coye – Josh Pritchard British Prime Minister Theresa May called for a “snap election” on June 8 – but the results were, to say the least, not what she and fellow members of her Conservative Party expected. The basics Under the United Kingdom’s parliamentary system of government, voters do not elect the prime minister…

The Long Bull Run: Is It Too Late for Investors to Consider Stocks?

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Global Asset Management — U.S. Distribution Global equity markets have now entered the ninth year of their rally off the March 2009 bottom. “How long can the equity rally last?” is the most frequent question we get from clients and advisors. In one recent…

Brexit Update: One Year After the UK Voted to Leave the EU

TRACEY E. FLAHERTY Senior Vice President, Government Relations and Retirement Strategy Natixis Global Asset Management It’s been a year since voters in the United Kingdom surprised the world by voting to take their leave of the European Union. In March 2017, Prime Minister Theresa May invoked Article 50 of the Treaty of the European Union,…

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…

Preferred Shares Rally into Early April, But Finish the Month Slightly Lower

The Canadian preferred share market initially extended its rally into early April, but prices declined over the balance of the month to finish slightly lower than where they began. In part, the pullback later in the month could have been market fatigue as preferred share prices have risen almost continuously since mid-November. As well, some…

What Macron’s Victory Could Mean for International Equities

By: Josh Pritchard  Voters in France have elected former economic minister Emmanuel Macron of the nascent En Marche! party as president. Macron’s victory is likely to be seen as a rejection of the populist, anti-European Union sentiment that saw Brexit approved in the United Kingdom in 2016. The defeat of National Front candidate Marine Le…

POTUS and Portfolios: The First 100 Days and Beyond

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Global Asset Management — U.S. Distribution April 29 marked President Donald Trump’s 100th day in office. Since FDR, the first hundred days of a presidency have acquired near mythical status as a measuring stick, although it is to some degree a ridiculous standard. To…

Risk Budgeting

This video offers a fresh perspective on the function of risk in evaluating investments and constructing portfolios. From examining the relative long-term stability of risk as compared to that of returns, to establishing a risk budget, to identifying investments that can act as risk reducers or return enhancers, this video provides unique insights with practical…

Canadian Preferred Shares Continue Their Upward Pattern in March

Canadian preferred share prices continued to move upward in a seesaw pattern during March. An absence of new issues and occasional ETF flows were contributing factors behind the market strength. Interestingly, increased purchases of preferred share ETFs had a delayed reaction to underlying preferred share prices. As well, when ETF volumes declined, it led to…

Canadian Preferred Shares Continued to Move Upward in Price in February

Following their very strong gains in January, Canadian preferred shares continued to move upward in price in February, but at a more subdued pace. Reduced activity in preferred share Exchange Traded Funds (ETFs) probably accounted for the smaller preferred share gains. The Bank of Montreal Laddered Rate Reset ETF (ZPR) experienced a 45% drop in…

Advisor Atlas: Understanding Brexit

SUSAN R. OLSON Vice President of Government Relations Natixis Global Asset Management — U.S. Distribution The June 2016 decision by voters in the United Kingdom to approve the country’s withdrawal from the European Union (EU) was one of last year’s biggest surprises. As the UK government undertakes the formal process of exiting the EU trading…

Trumponomics: Hope vs. Reality

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Global Asset Management — U.S. Distribution Throughout most of 2015-16, we had been writing about central banks and the effects of their extremely accommodative policies. It seemed to be all that mattered for global markets. When would the Fed raise and by how much?…

Double Down: Faced With Increased Volatility, Institutions Embrace Risk

Faced with greater volatility and continued rate pressures, the 500 decision makers included in this, our fifth annual Global Survey of Institutional Investors, appear to be doubling down on their bets by increasing allocations to equities, private equities, and other high-risk assets seeking to generate returns. Institutional investors will have their hands full balancing three…