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Launch of Natixis Short Term Global High Income Fund to take advantage of the attractive yield offered by short-term High Yield bonds

18.04.2014

Natixis Short Term Global High Income Fund implements active management strategy focused on bond selection.

Invested in High Yield rated (1) credit bonds from OECD countries, Natixis Short Term Global High Income Fund benefits from a non-benchmarked active management strategy without sector allocation combined with a 100% bottom up approach (2). To deploy this strategy, the fund managers are supported by the expertise of the Natixis Asset Management credit research team comprising 17 analysts based in Europe and United States.

Natixis Short Term Global High Income Fund aims to take advantage of short term High Yield bonds, which are particularly attractive in the current environment:

- Historically they have proven less sensitive to interest rate rises and will be less volatile than the credit market as a whole (3);

- They respond to the demand from clients subject to Solvency II, notably insurance companies, who are seeking investments with a limited cost of capital;

- Over the long term, they offer lower volatility than High Yield across all maturities.

The portfolio of Natixis Short Term Global High Income Fund holds an average of 60 international issues with an average duration of less than two years. The minimum recommended investment horizon in the fund is three years.

 

 

(1) High Yield – Rating below BBB- (Standard & Poor's Ratings Services), Baa3 (Moody's Investors Service, Inc.) or equivalent for Fitch ratings.
(2) An investment approach in which security selection is based on the analysis of its intrinsic qualities.
(3) The figures mentioned are from previous years. Past performance is not a reliable indicator of future performance.

Natixis Short Term Global High Income Fund is a sub-fund of the UCITS under Luxembourg law, Natixis International Funds (Lux) I set up in 2013 and managed by NGAM S.A. The specific risks linked to investments in the Fund concern exposure to derivatives, counterparty risk, securities whose ratings are below Investment Grade, interest rate volatility, geographical concentration, currency risk, and credit and liquidity risk.