Natixis Asset Management launches Natixis Global Risk Parity, a global allocation fund with a balanced risk approach
Diversifying assets, and especially risk, has become paramount for adapting risk to all types of market conditions. This is the approach offered by Natixis Global Risk Parity(1): a risk balanced allocation in a global investment universe, seeking to capture market rallies while mitigating the sensitivity to market reversals over the minimum recommended investment period of three years.
Natixis Global Risk Parity is designed for all types of investors: professional and non-professional.
An innovative approach to all types of asset classes
Unlike a traditional risk parity allocation investing in a single asset class, Natixis Global Risk Parity can invest in a very broad investment universe. This includes bonds, equities and a wide variety of diversification assets, such as commodities, real estate, volatility instruments, private equity, emerging country debt, etc. This strong portfolio diversication makes it possible to tap into as many investment opportunities as possible.
Furthermore, each major asset class represents a third of the portfolio's risk budget and each subcategory is itself risk balanced.
A dynamic risk parity allocation
The risk parity approach aims to achieve a more consistent performance and a better risk/reward ratio than a traditional balanced allocation, in which equities represent a much larger share of overall risk than their relative weight in the portfolio.
Natixis Global Risk Parity's major asset is dynamic allocation steering:
- The weight of each asset class in terms of risk is first determined systematically, using correlation matrices and analysing past volatility; this asset weighting is revised on a monthly basis so as to factor in changes in terms of risk of the portfolio's assets and any corporate events that could affect the portfolio's risk balance.
- In addition to this systematic allocation, the investment management team also performs a tactical control based on fundamental analysis of market cycles.
Cycle analysis is the main source of value
Natixis Global Risk Parity's approach is strictly "top-down" and is enhanced by proprietary quantitative tools: the fund's main sources of performance are the analysis of macroeconomic fundamentals and the determination of the position in terms of market cycle. This UCITS fund prefers liquid instruments such as ETFs and futures.
The investment management team is comprised of Michael Aflalo and Pierre Radot, two global allocation specialists with more than 17 years' experience in the financial markets.
(1) Natixis Global Risk Parity is a sub-fund of the Luxembourg SICAV Natixis AM Funds, managed by Natixis Asset Management.
About Natixis Asset Management
With assets under management of €289.2 billion and 682 employees(1), Natixis Asset Management ranks among the leading European asset managers. Natixis Asset Management offers its clients (institutional investors, companies, private banks, retail banks and other distribution networks) tailored, innovative and efficient solutions organised into 6 investment divisions: Fixed income, European equities, Investment and client solutions, Structured and volatility (developed by Seeyond(2)), Global emerging, and Responsible investing (developed by Mirova(2)). Natixis Asset Management’s offer is distributed through the global distribution platform of Natixis Global Asset Management, which offers access to the expertise of more than twenty management companies in the United States, Asia and Europe.
(1)Source: Natixis Asset Management – 31/06/2013.
(2)Seeyond and Mirova are brands of Natixis Asset Management.
About Natixis Global Asset Management
Natixis Global Asset Management, a wholly-owned subsidiary of Natixis, comprises management and distribution firms based in Europe, the United States and Asia. Assets under management totaled more than €602.5 billion worldwide. It employed more than 3,200 staff as of June 30, 2013.
Natixis is the corporate, investment and financial services arm of Groupe BPCE, the 2nd-largest banking group in France with 21% of total bank deposits and 36 million clients spread over two networks, Banque Populaire and Caisse d’Epargne. With around 22,000 employees, Natixis has a number of areas of expertise which are organized in three main business lines: Wholesale Banking, Investment Solutions and Specialized Financial Services. A global player, Natixis has its own client base of companies, financial institutions and institutional investors as well as the client base of individuals, professionals and small and medium-size businesses of Groupe BPCE’s two retail banking networks. Listed on the Paris stock exchange, it has a solid financial base with a CET1 capital under Basel 3(1) of €12.4 billion, a Basel 3 CET1 Ratio(1) of 9.7% and quality long-term ratings (Standard & Poor’s: A / Moody’s: A2 / Fitch Ratings: A).
(1)Pro forma of the sale of CCIs - Basel 3 impact will depend on final rules – Fully-loaded except on DTAs
Figures as at June 30, 2013
+ 33 (0)1 58 19 47 41
Natixis Asset Management
+33 (0)1 78 40 84 54
1. Technical characteristics of the Natixis Global Risk Parity fund
(1) Extract of the prospectus, which also contains details on all the other share classes.
(2) Total expense ration. This ratio, expressed in percentage, includes the management and administration fee.
(3) Not paid to the sub-fund.
Natixis Global Risk Parity is primarily exposed to the risk of loss of capital, to the equity risk, credit risk, interest rate risk, emerging country risk, currency risk and leverage risk.
2. Profiles of the Natixis Global Risk Parity managers
Head Institutional and Network Solutions, Natixis Asset Management
Michael Aflalo started his career at Crédit Mutuel Finance as an equity index fund manager and structured fund manager, then moved to CAAM as balanced fund manager (quantitative and fundamental management). In 2001, he moved to AXA IM as senior manager in the Balanced Management team, then Head of Investment Management, Flexible Products and Total Return as from 2006. He joined Natixis Asset Management in October 2010 to become head of Balanced Management, Institutional and Retail investors now Institutional and Network Solutions within the Investment & Client Solutions division.
Michael Aflalo is a graduate of Ecole Nationale de la Statistique et de l'Administration Economique (ENSAE), a qualified actuary of Institut de Statistique de Paris (ISUP) and a member of the French Institute of Actuaries (IAF). He also holds a master's degree in Applied Mathematics & Fundamental Science (MASF) of the Pierre & Marie Curie University (Paris IV).
Michael Aflalo has 18 years' experience, of which three at Natixis Asset Management.
Portfolio Manager, Institutional and Network Solutions, Natixis Asset Management
Pierre Radot started his career in 1988 at Banque Monétaire et Financière as a treasury operator. In 1990, he moved to Monte Paschi Banque (Paris) as head of treasury, francs and derivatives. He then joined Cardif Asset Management (BNP Paribas group) as a portfolio manager. He moved to Natixis Asset Management in 2006 and is currently a portfolio manager in the Institutional and Network Solutions team, within the Investment & Client Solutions division.
Pierre Radot is an HEC Paris graduate and has 25 years' experience, of which eight years at Natixis Asset Management.