2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
INVESTOR INSIGHTS SERIES
CLOSE ENOUGH ISN’T GOOD ENOUGH Investor expectations and the need for concrete financial plans
E XECUTIVE SUMMARY Optimism or overconfidence? In this, our fourth Global Survey of Individual Investors, 80% of respondents believe they will do just as well this year, if not better than last year. Large numbers of the 7,0001 investors we spoke with in 17 countries say equity markets will be the year’s top performers. But investor optimism may be leading to unrealistic expectations. When asked, investors believe the average annual return they will need to achieve their goals actually increased to 9.7% above inflation – almost a full point higher than the 9% they anticipated in our 2014 survey.2 Conflicting views on returns and risk Even after seeing positive results over the past three years, the number of investors who say they are conflicted between pursuing returns and protecting capital increased (73% in 2015, compared to 67% in 2013 3). The number of individuals who said they would choose safety over performance also increased to 84%, up 6% from 2014. Investors face a planning gap Investors may be lacking basic tools that could help them resolve these conflicted feelings. Among those surveyed, 57% said they have no financial goals, 67% have no financial plans and 77% rely on gut instincts to make investment decisions. As a result, many investors may be relying on broad return assumptions and emotional measures of risk which could be detrimental to their success. Retirement – one chance to get it right Retirement is the Number One priority for investors worldwide. Yet, despite their lack of plans, about two-thirds of investors (66%) claim to have a strong knowledge of what they will need for income in retirement: 63% of pre-retirement income on average, far short of the 75–80% used in many planning scenarios. Looking for alternatives Individuals appear to recognize challenges presented by today’s markets, and are open to new approaches. In fact, 69% say they believe a traditional stock and bond portfolio is no longer enough to pursue returns and preserve capital. This may lead to a discussion of some form of alternative investments, but investors want to know more, and 76% say they would consider alternative investments if their advisor recommended them. Demand for a new level of advice These challenges are leading investors to a new kind of advisory relationship – one in which their advisor is more of a coach, helping to make more informed investment decisions and educating them about investing and the markets. With modern markets presenting more complex choices and complicated decisions, investors seem to understand instinctually the need to get more information and advice to help guide them.
1 See page 6 for survey respondent breakdown. 2 Natixis Global Asset Management, Global Survey of Individual Investors, May 2014. Survey included 5,950 investors in 14 countries. 3 Natixis Global Asset Management, Global Survey of Individual Investors, July 2013. Survey included 5,650 investors in 14 countries.
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
3
TABLE OF CONTENTS
2015 Global Survey of Individual Investors 5
INTRODUCTION Close enough isn’t good enough
9
SECTION ONE Risk, return and the continuing conflict
13
SECTION TWO Getting real about retirement
17
SECTION THREE What are the alternatives?
21
CONCLUSION Refining goals and redefining advice
24
PROGRAM OVERVIEW Natixis Global Asset Management’s Investor Insights Series
Underneath a positive facade, investors still struggle with volatility, risk and the safety of their assets.
intro INTRODUC TION
Close enough isn’t good enough Investor expectations and the need for concrete financial plans
Individuals around the world are optimistic about their investment prospects in 2015. But underneath a positive facade, investors still struggle with volatility, risk and the safety of their assets and face a significant planning gap that could leave them without the solid footing needed to reconcile their desire for investment returns and their lingering aversion to taking risk. What lies in the balance is their ability to successfully meet retirement goals at a time when they will need to shoulder a greater part of the burden. Optimism? With the U.S. in a six-year bull market run that produced a 13.7% return for the S&P 5004 in 2014, and markets in Spain, Japan, and Singapore all delivering annual returns above 8%, 80% of the 7,000 individuals we surveyed said they expect their investment will perform just as well, if not better, in the year ahead. This may be what fuels their convictions about stock markets around the world, with the largest number of investors (34%) citing stocks or shares, whether in their home country or abroad, as their prediction for 2015’s top-performing asset class.
Lacking a strong understanding of investment principles and concrete plans, investors are left to make broad assumptions about their goals and expectations.
Or overconfidence? Is this really optimism, or overconfidence? Certainly, with improving market conditions around the globe, low interest rates, and low to no inflation, experts in behavioral finance might say investor sentiment in 2015 reflects a recency bias, and individuals who have experienced good results today may allow themselves to assume that results will be just as good, if not better, tomorrow. 4 The S&P 500 ® Index is a widely recognized measure of U.S. stock market performance. It is an unmanaged index of 500 common stocks chosen for market size, liquidity, and industry group representation, among other factors. It also measures the performance of the large–cap segment of the U.S. equities market.
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
5
2015 Global Survey of Individual Investors ABOUT THE SURVEY Natixis Global Asset Management surveyed 7,000 individual investors globally in February 2015 with the goal of understanding their views on the markets, investing and measuring their progress toward financial goals. Investors from the Americas, Asia, Europe, the Middle East and Oceania are represented in the survey.
750 U.S.
250
500
750
France
U.K.
Canada
500
Germany
500 Italy
350
Switzerland
500 Spain
350
Mexico
350
Australia
200
Colombia
350 UAE
200 Chile
200
350
Argentina
Japan
500
Hong Kong
500
Singapore
7,000
total respondents
PROJECT BACKGROUND AND METHODOLOGY 2015 marks the sixth year in which Natixis Global Asset Management has conducted its Individual Investor Survey in the U.S., and the fourth year it has conducted its global survey. CoreData Research was commissioned by Natixis to conduct the study of investors in 17 countries in order to better understand their attitudes toward portfolio construction, risk, advice, and saving, their market sentiments, and their perceptions on benchmarking investment performance. An online quantitative survey was developed and hosted by CoreData Research. A sample of 7,000 individual investors with a minimum net worth of US$200,000 (or Purchase Price Parity [PPP] equivalent) was obtained for the purposes of this study. Results are analyzed with segmentation from a range of perspectives.
6
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
INTRODUCTION
Perhaps an even stronger influence on investor outlook may be the political and demographic realities that are shifting greater responsibility for retirement funding onto the shoulders of individuals. Our study confirms that retirement is the Number One priority for investors worldwide. To be successful in achieving this weighty goal, investors may feel they have to be optimistic about their prospects of growing assets to meet their goals. In fact, 69% of investors tell us that asset growth is increasingly a priority, with 59% of the pre-Baby Boomer generation – those age 69 and above, who have the most at risk in pursuing returns – saying it is their priority as well.
Investors may not actually view the world through rosecolored glasses.
Investors may not actually view the world through rose-colored glasses. Their true feelings and concerns come through in their attitudes about risk and return, prospects for retirement, and increased interest in alternative investments. In this, our fourth edition of the Natixis Global Asset Management Global Survey of Individual Investors, we see three themes as defining the investor mindset: • Return expectations must be grounded with clear goals and financial plans. • Abstract notions of retirement must be met with concrete investment
strategies. • Demand for risk management and diversification must be met with
enhanced education on alternative investments. Investors are faced with many critical choices that will affect their financial future. Lacking a strong understanding of investment principles and concrete plans, they are left to make broad assumptions about their goals and expectations. But they recognize the limitations of going it alone, and many believe professional advice is
intro
the right route forward. One thing is clear: Now is the time to help investors set clear goals and plans, while also enhancing their knowledge and understanding of markets, investments and strategies to help them meet their goals.
INVESTORS EXPRESS OPTIMISM, BUT STILL HAVE DOUBTS Large numbers expect this year's returns will be at least as good as last year's, if not better.
92%
90%
Chile
89%
89%
84%
83%
Australia
U.K.
75%
Germany
U.S.
Spain
74%
Japan
Mexico
87%
Canada
78%
Singapore
74%
Hong Kong
86%
86%
78%
76%
Colombia
Switzerland
68%
Argentina
UAE
Italy
68%
France
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
7
With the reality of greater self-reliance in funding retirement hanging over investors worldwide, reality cannot take a back seat to optimism.
SEC TION ONE
Risk, return and the continuing conflict one
Return Risk
Investors should not be faulted for their optimism; after all, it can be a helpful, if not necessary, view to maintain when considering the future. It allows individuals to feel good about what they have accomplished to date, and feel as though critical life goals, such as retirement funding, are attainable in the long term. After living through twenty years of asset bubbles, financial crisis, volatility and uncertainty, investors should have this opportunity to take a breath and think about what is possible, rather than worrying about what could possibly be the next crisis to interrupt their investment plans. But with the reality of greater self-reliance in funding retirement hanging over
One place where investors may need to temper their optimism is in their expectations on investment returns.
investors worldwide, reality cannot take a back seat to optimism. There is simply too much riding on their success to rely on wishful thinking.
Great expectations If there is one place where investors may need to temper their optimism, it is in their expectations on investment returns. Globally, investors tell us they believe they will need average returns of 9.7% above inflation in order to achieve their goals. Colombian investors expressed the highest expectations at 12.2% above inflation, while Swiss and German investors demonstrated the lowest at 8%. Based on a historic inflation rate of about 3%, these expectations translate into real returns of between 11% and 15% over the long term – a rate of return that history shows is not sustainable.
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
9
SECTION ONE
As if to confirm that they may be treading close to the wishful, seven in ten (72%) of the investors we spoke with say their return expectations are realistic. Given an annualized return of 6.59% for the MSCI World Index5 over the past 25 years, it would seem that investors could be setting themselves up for a major disappointment should they not be able to moderate expectations. Based on their projections, one might also question whether, after a prolonged
one
period of low to negative levels of inflation throughout most of the developed world, inflation even factors into the long-range investment plans of individual investors at all. CONFLICTED BY RISK AND RETURN, INVESTORS SIDE WITH SAFETY I am sometimes conflicted between obtaining return and preserving capital
If forced to choose, I would take safety over performance
Risk attitudes out of alignment with return expectations Risk may be the most significant factor tempering investor expectations worldwide. Despite a positive outlook in 2015, and expectations for a high level of returns over the long term, individuals worldwide still struggle to rationalize return expectations with risk tolerances. In fact, the number of investors who report they are conflicted between pursuing investment returns and preserving capital has increased by 6% since 2013, with 73% expressing this opinion in 2015. When it comes down to making a decision, however, investors worldwide are abundantly clear in how they reconcile their feelings, with 84% stating that if they were forced to choose, they would take safety over investment performance.
Volatility: a tangible risk For many individuals, their strong aversion to loss is fueled by market volatility and they express great concerns about its influence on their portfolios. More than six in ten investors (65%) see volatility as a roadblock to achieving their goals. More than seven in ten (72%) say they feel helpless in trying to protect their portfolio during volatile times. Investors clearly recognize the sway these powerful feelings can hold over them, and six in ten (60%) report that they struggle to avoid emotional decisions when market shocks occur. Overall, it would also seem that investors are beginning to recognize the negative impact that emotional decisions can have on their investment performance. The number of respondents who believe that they would stand a better chance of achieving their goals if they stopped making emotional decisions has doubled over last year’s study. But the number of investors who understand the need to make more rational investment decisions is still less than four in ten (39%).
Getting back to basics Investors may be feeling greater pressure in making decisions during periods of volatility because they lack a fundamental grounding that would help them put risk in perspective. Traditionally, that grounding is delivered through a financial plan or investment policy statement which outlines explicitly not just what investors are looking to accomplish, but how they will pursue their goals and how their investments will be managed across market cycles.
5 The MSCI World Index captures large and mid-cap representation across 23 Developed Markets (DM) countries. With 1,610 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Date range: 2/1/1990-12/31/2014.
10
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
INDIVIDUALS MAY BE MISSING A FOUNDATION FOR INVESTMENT DECISIONS
of investors have not set financial goals
are making decisions on gut instinct
have no financial plan
This is an area where we find that investors worldwide lack fundamental investing tools that could help them keep volatility in perspective. When asked, 57% of those we spoke with said they do not have clear financial goals and 67% said they do not have a financial plan. Without these basic investment tools in place, individuals are left to rely solely on their instincts. In fact, 77% of respondents globally said they rely on gut instincts when making investment decisions. This is especially challenging considering that just two out of ten investors claim that their investment knowledge INDIVIDUALS MAY BE MISSING A FOUNDATION is very strong. FOR INVESTMENT DECISIONS
Ready to put goals first Although lacking in concrete goals and specific financial plans, individuals still think these tools can be valuable measures of investment success. More than seven in ten (73%) say they are willing to set a target return that is independent of the market, and almost the same number (75%) say they would be happy if they achieved their goals but underperformed the market. When it comes down to it, 65% of investors
Just two out of ten investors claim that their investment knowledge is very strong.
worldwide said they worry more about the risk of not achieving their goals than the risk of not beating the benchmark. One clear point of distinction may be the difference of opinion among age groups within our study. Nearly six in ten (59%) of Millennial investors (ages 18–33) and are making decisions on gut instinct
54% of Generation X (ages 34–49) said they worry more about the risk of failing have time no horizon, to beat the market than the risk of losing money. Given their longer financial plan of investors have not
these younger individuals have more time to make up for any potential losses in set financial goals
their portfolio. Conversely, older investors are more sensitive to investment loss, and only 36% of Baby Boomers (ages 50–68) and 34% of pre-Baby Boomer (age 69+) generations said their concern with beating the market is greater.6 This more conservative view is directly in line with the financial concerns of individuals who are either past retirement age or nearing it, and have little time to make up for past losses. In looking closely at how our respondents feel about retirement, Millennials and Generation X investors have much they can learn from investors in older age groups who have experienced the irrational exuberance of a charging bull market and the effects of a subsequent market collapse in both 2000 and 2008.
6 Of the 7,000 respondents, 2,247 are Millennials, 2,578 are Generation X, 1,968 are Baby Boomers and 207 are pre-Baby Boomers.
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
11
Two-thirds of investors worldwide believe it is increasingly their responsibility to fund retirement.
two
SECTION T WO
Getting real about retirement
Employer
Government
Individual
Retirement is an abstract concept for many, especially younger investors. Globally the financial industry has worked hard to paint a positive picture as encouragement for saving and investing to fund future financial needs. Images of seniors traveling the world, playing golf, surfing, or waterskiing have helped form an idealized view of what life in retirement can be. These positive images may help initiate and encourage retirement savings, but given the growing necessity for self-reliance in retirement funding, the emotional appeal of financial and personal freedom may need to be balanced with a more pragmatic consideration of how much individuals will need to save, how long it will need to last, and what costs those funds will actually cover.
The pressure is on
The emotional appeal of financial and personal freedom may need to be balanced with a more pragmatic consideration of how much individuals will need to save.
As demonstrated in the Natixis Global Asset Management 2015 Global Retirement Index,7 retirement funding is under pressure globally. Shifting fiscal policies and strained funding for social services are leading to decreased funding for government programs. In the private sector the pressure to meet the liabilities presented by increased lifespans is driving a trend to replace defined benefit plans with defined contribution plans that put the onus of retirement funding on individual employees.
7 Analysis as of January 2015; provides insight into the environment for retirees in 150 countries based on 20 economic, regulatory and health factors. See page 25 for more details.
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
13
SECTION T WO
two
THREATS TO FINANCIAL SECURITY IN RETIREMENT Asia & The Pacific
Europe
Latin America
Middle East
North America
Inflation
53%
43%
62%
47%
52%
Long-term care costs not covered by insurance
49%
39%
45%
49%
48%
Health care costs not covered by insurance
51%
36%
41%
52%
53%
Not saving enough
47%
33%
63%
40%
47%
My government pension won’t cover enough of my costs*
40%
38%
43%
24%
27%
My government’s financial situation
24%
33%
43%
23%
27%
Insufficient investment returns
34%
24%
37%
26%
38%
Financial support needed by family members
20%
15%
32%
29%
16%
Insufficient sale proceeds from primary residence
18%
17%
28%
25%
12%
* or government programs like Social Security
Investors around the world feel this pressure, with two-thirds of respondents reporting they believe it is increasingly their responsibility to fund retirement. As one would expect, the pressure is greatest for those who are closest to retirement age,
three
with three-quarters of Baby Boomers reporting they believe it is increasingly their responsibility. INVESTORS ARE UNCLEAR OF RETIREMENT INCOME NEEDS
From abstract to concrete Almost seven in ten (69%) of investors say retirement is their top financial goal, and nearly the same number (66%) also report that they have a strong knowledge of the annual income they will need to live comfortably in retirement. This may be a case of going on gut in evaluating their savings and investment plans, since on average, individuals say that they will need 63% of their pre-retirement income, a number far short of the 75%–80% traditionally assumed for retirement plans. In this case, individuals’ lack of clear goals and a solid financial plan may prevent them from establishing a realistic view on retirement needs. Even without a formal plan in place, investors readily identify key threats to their retirement security: Among all investors inflation is the most commonly cited threat to retirement success, with 49% of investors identifying this factor. Yet we also see that investors may not be factoring this into their overall return expectations. In essence, inflation is a force that is most likely to be viewed in only absolute terms, such as the loss of purchasing power.
Percentage of pre-retirement income individuals say they will need, far short of the 75%–80% traditionally assumed.
Again those closer to retirement have the strongest understanding of the impact inflation can have on their income, with 56% of Baby Boomers citing it as a threat. Beyond this economic force, long-term care costs (46%), healthcare costs (44%), not saving enough (41%) and a government pension shortfall (36%) round out the top five. All but one of these factors are out of the direct control of the investor, making the case clear for increased savings and a focus on how these assets are invested.
14
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
The wisdom that comes with age Retirement is a milestone that represents one of the biggest financial changes individuals may experience in a lifetime. Accumulation of assets is no longer the sole singular focus, and many investors are challenged with drawing an income from their portfolio. Segmenting the results from our survey by age suggests that there is much to be learned by those who have retired and those who are nearing retirement age. In the end, we get a better sense of the reality of retirement. When asked at what age they would like to retire, younger investors are clearly focused on early retirement: Millennials say age 58, while Generation X say 62. When asked when they think they will actually retire, their aspirations moderate only slightly at age 60 and age 63 respectively. Asked the same questions, Baby Boomers say age 68 on both counts. Pre-Boomers respond with 73 on both counts. In reality, for members of those generations who are already retired, the day came much earlier at age 59 and 63 respectively. This underscores a critical point of consideration in retirement planning. Those who have retired may have done so because they have achieved financial success earlier in life. But early retirement may not always be a reason to celebrate. Illness or disability may force individuals to stop working, as can the need to care for a family member. In many cases, a layoff in late career quickly becomes an unplanned retirement. The lesson to be learned is that investors should set their sights on maximizing retirement savings throughout life to ensure they build sufficiently to
Investors should set their sights on maximizing retirement savings to ensure they build sufficient assets to weather an unplanned or early retirement.
weather an unplanned or early retirement.
three
Plan B for retirement income Should they fall short on their retirement savings, investors have clear plans on how they will make up the difference. The largest number (45%) say employment will be the answer, followed by support from their spouse or significant other (36%), government programs (35%), and family (23%). Here is another case where it will be useful to consider the life experience of older investors. Only 20% of pre-Boomers consider employment a Plan B for retirement funding. The reasons can be many: individuals may not be physically able to work, they may have family care obligations that prevent them from working, or finding gainful employment may be harder to come by. The lesson to keep in mind is that no matter how easy it may look in youth, it can be difficult to account for the challenges that life may present as one ages.
AGE OF RETIREMENT: PERCEPTIONS VS. REALITY 73 68
58
60
62
73
At what age do you want to retire?
68 63
63 59
At what age do you believe you will actually retire? At what age did you actually retire?
Millennials age 18–33
Generation X age 34–49
Baby Boomers age 50–68
Pre-Baby Boomers age 69+
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
15
Almost seven in ten investors say traditional stock and bond approaches are no longer enough to pursue returns and manage risk in modern markets.
threeº
SEC TION THREE
What are the alternatives?
Increased pressure to fund retirement, coupled with conflicted sentiments about return expectations and risk tolerances, is leading investors to consider new investment choices. Knowing they will need to generate assets to cover them through a retirement lasting 20 to 30 years or longer, investors are eager to generate attractive investment returns. Yet after experiencing significant investment losses in the past decade, they are averse to risk and state they prefer safety over investment performance. Traditional strategies challenged Large numbers inherently recognize that they will need to take new measures to balance these two competing forces in their portfolio. Almost seven in ten (69%) say traditional stock and bond approaches are no longer enough to pursue returns and manage risk in modern markets. Respondents in our 2014 Global Survey of Institutional Investors8 express similar views. More than six in ten (62%) of the decision makers we spoke with said institutions should go beyond traditional diversification and portfolio construction techniques. More than seven in ten
Three-quarters of institutional investors say individuals should go beyond traditional asset classes and incorporate alternatives in their portfolios.
(76%) say individuals should go beyond traditional asset classes and incorporate alternatives in their portfolios. While individuals worldwide see the need to incorporate a broader range of investments in portfolio construction, they express reservations about these new strategies and asset classes, and need help understanding how alternative investments may fit into their investment plans.9
8 Natixis Global Asset Management, Global Survey of Institutional Investors, December 2014. Survey included 642 institutional investors in 27 countries. 9 Alternative investments involve specific risks that may be greater than those associated with traditional investments, and there is no assurance that any investment will meet its performance objectives or that losses will be avoided.
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
17
SECTION THREE
Time for a new conversation Alternative investments have come to the fore of the investment industry in recent years as asset managers, distributors, advisors and their clients have looked for solutions to help address highly correlated markets and persistent volatility. But the term “alternative investments” has become a catch basin for a wide array of investments including hedge funds, long-short equity, private real estate and commodities, among others, and herein lies the challenge for individual investors.
Three-quarters of investors say that if their advisor were to recommend alternative investments, they would consider them for their portfolio.
We see significant differences in how individuals perceive their grasp of alternative investments and how advisors see their clients’ understanding of the subject. According to our survey, 47% of investors worldwide believe they understand alternative investments very well and 50% claim that they already invest in alternatives. The conviction around these sentiments was strongest among Millennials (57% and 61% respectively) followed by Generation X investors (50% and 53% respectively). Yet advisors do not see the same level of understanding or acceptance among their clients. In our 2014 Global Survey of Financial Advisors,10 conducted in September of 2014, 68% of advisors worldwide felt investors did not understand these strategies. In fact, 24% of advisors themselves said they found alternatives too complicated to explain. Digging deeper reveals that individuals may not be as sure of their convictions as they report. Most telling may be the 52% of investors who say individuals do not have access to alternative investments and the 67% who believe they are riskier than traditional investments. Despite these inconsistencies, large numbers of individuals (76%) say that if their advisor were to recommend alternative investments, they would consider them for their portfolio.
three
A GENERATIONAL LOOK AT ALTERNATIVE USAGE
Millennials age 18–33 I invest in alternative investments
Generation X age 34–49
61%
I understand alternative investments well
57%
As an individual investor, I don't have access to alternatives
55%
Alternatives are riskier than most other investments Most alternatives have high fees I would need to learn more about alternatives before I invest in them If my advisor recommended alternatives, I would consider them for my portfolio
Baby Boomers age 50–68
53%
35%
50%
80% 75%
30%
48%
66%
67%
26%
35%
53%
66%
65%
42% 67% 63%
80% 76%
10 Natixis Global Asset Management, Global Survey of Financial Advisors, September 2014. Survey included 1,800 financial advisors in 10 countries.
18
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
Pre-Baby Boomers age 69+
80% 75%
80% 76%
78% 74%
INVESTOR PORTFOLIO CONCERNS LEAD TO A DISCUSSION OF ALTERNATIVE INVESTMENTS
of individuals said they want strategies to better help them balance risk and return
of investors said they want strategies that will enhance portfolio diversification
of investors said they want strategies that can help insulate their portfolios against volatile markets
Ask not just what they are, but what they’re intended to do Recent innovations in the asset management industry have made alternative investments more accessible to individual investors. With the rise in liquid alternatives, improved access to non-correlated asset classes such as managed futures, and the availability of ETF strategies focused on precious metals and other commodities, investors and advisors now have more tools at their disposal for portfolio construction. While the discussion of any alternative investment must always begin with client goals and risk tolerances, and provide a comprehensive view of the strategy or asset class and the associated risks, it should also include the role that these investments
Eight in ten investors want strategies to better help them balance risk and return.
are intended to play within the portfolio overall. The investors we surveyed express a clear desire for this type of information. Of the 7,000 individuals we spoke with, 77% said they want strategies that are less tied to the broad markets. Another 80% of individuals said they want strategies to better help them balance risk and return, and more than three-quarters (76%) of investors said they want strategies that will enhance portfolio diversification. More than three-quarters of investors want strategies that can help insulate their portfolios against volatile markets. Each is an area that may lead to a discussion of some form of alternative investments. The challenge for financial advisors is not just that of investment management but also client communication. Knowing that 79% of individuals say they only invest in products they understand and 80% say they would need to know about alternatives more before investing, advisors will need to take on the role of educator and help individuals see if, how, and when alternative investments should be implemented within a client portfolio.
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
19
Nearly three-quarters of those we surveyed said professional advice is increasingly necessary to manage their investments and meet their retirement goals.
conclusion CONCLUSION
Refining goals and redefining advice
Investing is a complicated proposition for individuals around the world in 2015. A prolonged period of market upheaval has left an indelible impression. Investors are challenged by risk and volatility and say they value the safety of their assets over the performance of their portfolio. But they are also conflicted. With growing pressure to assume greater responsibility for retirement funding, individuals are also feeling lofty aspirations for investment returns. Striking a better balance Rationalizing these two competing forces is no easy task, yet our respondents inherently understand the need to approach investing differently. They tell us they want access to new strategies that will help them balance risk and reward, that will help them better diversify their portfolios, and that go beyond the traditional stock and bond portfolios.
Investors see the advisory relationship as a partnership that makes them better equipped to stay on track with their plans.
The biggest need: Advice Beyond help with the selection of investments – both alternative and traditional – they may need something more fundamental: advice.
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
21
CONCLUSION
In fact, nearly three-quarters (74%) of those we surveyed said professional advice is increasingly necessary to manage their investments and meet their retirement goals. It starts with helping investors establish clearly defined goals and a specific financial plan for meeting them, and large numbers of investors (36%) cite help in this area among their top needs from an advisor.
A new advisory relationship Along with meeting these basic financial planning needs, investors see the advisory relationship as a partnership that makes them better equipped to stay on track with their plans over the long term. When asked what they want from their advisor, most frequently individuals say they want help making informed investment decisions (46%). Another 35% say they want their advisor to educate them on how to become a better investor, and the same number say they want their advisor to provide an education on how investments work.
conclusion
We think this is a critical opportunity to enhance traditional advisory models to meet these needs. Recent moves to adopt goal-based investing practices open the door
to helping clients grow as investors. The next step forward will mean teaching them about more durable ways to approach investing.
INVESTORS WITH ADVISORS REPORT A HIGHER LEVEL OF KNOWLEDGE ON KEY INVESTMENT GOALS11
Advised
Non-advised
Annual income needed to live comfortably in retirement
72% 56% 65%
Investment strategies that produce stable income
47%
Annualized return on investments to reach my goals
46%
The impact of inflation on my assets
46%
66%
64%
61%
Impact of taxes on investment decisions Investment strategies to achieve steady returns through bull and bear market cycles Investment strategies that hedge against inflation Investment strategies that don't correlate to the broad market (alternative strategies)
11 4,112 respondents are advised, 2,888 are non-advised.
22
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
45% 56% 38% 55% 37% 50% 34%
FIVE TENETS OF DURABLE PORTFOLIO CONSTRUCTION ®
Put risk first
Maximize diversification
Use alternative investments
Make smarter use of traditional asset classes
Be consistent
Toward more durable portfolios In markets across the globe we have seen investors of all types challenged to meet the competing priorities of generating returns through short-term market cycles and funding long-term financial liabilities. In our view, meeting these modern market challenges demands a more consistent investment framework. We believe Durable Portfolio Construction® can make a difference to individuals, advisors and institutions as they look to build portfolios that can help address risk concerns while also pursuing long-term asset growth. Our tenets for Durable Portfolio Construction include: Put risk first – Risk profiles for some indexes have been relatively stable in recent years, while returns have been widely varied. Targeting a consistent range of risk, rather than a potential range of returns, may lead to more predictable results. Maximize diversification – Considering the broadest possible range of asset classes and investment strategies such as long and short exposures to equities, fixed-income and commodities is one way to manage portfolio volatility. Use alternatives – Alternative investments may help lower correlations, temper volatility and offer new sources of return. Make smarter use of traditional asset classes – Applying new, efficient ways to capitalize on the long-term return potential of stocks and bonds can potentially enhance long-term returns or reduce short-term risks. Be consistent – Following a consistent investment philosophy is a critical first step to ensuring portfolio durability, but equally important is establishing a consistent, personal measure of investment performance to guide decisions and gauge progress.
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
23
PROGRAM OVERVIEW About the Durable Portfolio Construction Research Center Investing can be complicated: Event risk is greater and more frequent. Volatility is persistent despite market gains. And investment products are more complex. These factors and others weigh on the psyche of investors and shape their attitudes and perceptions, which ultimately influence their investment decisions. Through the Durable Portfolio Construction Research Center, Natixis Global Asset Management conducts research with investors around the globe to gain an understanding of their feelings about risk, their attitudes toward the markets, and their perceptions of investing. Research agenda Our annual research program offers insights into the perceptions and motivations of individuals, institutions and financial advisors around the globe and looks at financial, economic and public policy factors that shape retirement globally with: • Global Survey of Individual Investors – reaches out to 7,000 investors in 17 countries. • Global Survey of Financial Advisors – reaches out to 1,800 advisors, consultants and decision-makers in 10 countries. • Global Survey of Institutional Investors – reaches out to more than 600 investors, consultants and decision-makers in 27 countries. • Natixis Global Retirement Index – provides insight into the environment for retirees in 150 countries based on 20 economic, regulatory and health factors. The end result is a comprehensive look into the minds of investors – and the challenges they face as they pursue long-term investment goals.
2014 INVESTOR INSIGHT SERIES
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
This communication is for information only. Analyses of the survey referenced herein are as of September 2014. There can be no assurance that developments will transpire as may be forecasted in this material. This material may not be distributed, published, or reproduced, in whole or in part. Although Natixis Global Asset Management believes the information provided in this material to be reliable, it does not guarantee the accuracy, adequacy or completeness of such information.
In the EU (ex UK) Distributed by NGAM S.A., a Luxembourg management company authorized by the CSSF, or one of its branch offices. NGAM S.A., 2 rue Jean Monnet, L-2180 Luxembourg, Grand Duchy of Luxembourg.
In the EU (ex UK) Distributed by NGAM S.A., a Luxembourg management company authorized by the CSSF, or one of its branch offices. NGAM S.A., 2 rue Jean Monnet, L-2180 Luxembourg, Grand Duchy of Luxembourg.
In Switzerland Provided to Qualified Investors by NGAM, Switzerland Sàrl.
In Switzerland Provided to Qualified Investors by NGAM, Switzerland Sàrl.
In the UK Approved for use by NGAM UK Limited, authorized and regulated by the Financial Conduct Authority.
In the UK Approved for use by NGAM UK Limited, authorized and regulated by the Financial Conduct Authority.
In the DIFC Distributed in and from the DIFC financial district to Professional Clients only by NGAM Middle East, a branch of NGAM UK Limited, which is regulated by the DFSA. Registered office: Office 603 - Level 6, Currency House Tower 2, PO Box 118257, DIFC, Dubai, United Arab Emirates.
In the DIFC Distributed in and from the DIFC financial district to Professional Clients only by NGAM Middle East, a branch of NGAM UK Limited, which is regulated by the DFSA. Registered office: Office 603 - Level 6, Currency House Tower 2, PO Box 118257, DIFC, Dubai, United Arab Emirates.
In Singapore Provided by NGAM Singapore (name registration no. 5310272FD), a division of Absolute Asia Asset Management Limited, to Institutional Investors and Accredited Investors for information only. Absolute Asia Asset Management Limited is authorized by the Monetary Authority of Singapore (Company registration No. 199801044D) and holds a Capital Markets Services License to provide investment management services in Singapore. Address of NGAM Singapore: 10 Collyer Quay, #14- 07/08 Ocean Financial Centre, Singapore 049315.
In Singapore Provided by NGAM Singapore (name registration no. 5310272FD), a division of Absolute Asia Asset Management Limited, to Institutional Investors and Accredited Investors for information only. Absolute Asia Asset Management Limited is authorized by the Monetary Authority of Singapore (Company registration No. 199801044D) and holds a Capital Markets Services License to provide investment management services in Singapore. Address of NGAM Singapore: 10 Collyer Quay, #14- 07/08 Ocean Financial Centre, Singapore 049315.
In Taiwan This material is provided by NGAM Securities Investment Consulting (Taipei) Co., Ltd., a Securities Investment Consulting Enterprise, regulated by the Taiwan Financial Supervisory Commission. Registered address: 16F-1, No. 76, Section 2, Tun Hwa South Road, Taipei, Taiwan, Da-An District, 106 (Ruentex Financial Building I), R.O.C., license number 2012 FSC SICE No. 039, Tel. +886 2 2784 5777.
In Taiwan This material is provided by NGAM Securities Investment Consulting (Taipei) Co., Ltd., a Securities Investment Consulting Enterprise, regulated by the Taiwan Financial Supervisory Commission. Registered address: 16F-1, No. 76, Section 2, Tun Hwa South Road, Taipei, Taiwan, Da-An District, 106 (Ruentex Financial Building I), R.O.C., license number 2012 FSC SICE No. 039, Tel. +886 2 2784 5777.
In Japan Provided by Natixis Asset Management Japan Co., Registration No.: Director-General of the Kanto Local Financial Bureau (kinsho) No. 425. Content of Business: The Company conducts discretionary asset management business and investment advisory and agency business as a Financial Instruments Business Operator. Registered address: 2-2-3 Uchisaiwaicho, Chiyoda- ku, Tokyo.
In Japan Provided by Natixis Asset Management Japan Co., Registration No.: Director-General of the Kanto Local Financial Bureau (kinsho) No. 425. Content of Business: The Company conducts discretionary asset management business and investment advisory and agency business as a Financial Instruments Business Operator. Registered address: 2-2-3 Uchisaiwaicho, Chiyoda- ku, Tokyo.
In Hong Kong This document is issued by NGAM Hong Kong Limited and is provided solely for general information only and does not constitute a solicitation to buy or an offer to sell any financial products or services. Certain information included in this material is based on information obtained from other sources considered reliable. However, NGAM Hong Kong Limited does not guarantee the accuracy of such information.
In Hong Kong This document is issued by NGAM Hong Kong Limited and is provided solely for general information only and does not constitute a solicitation to buy or an offer to sell any financial products or services. Certain information included in this material is based on information obtained from other sources considered reliable. However, NGAM Hong Kong Limited does not guarantee the accuracy of such information.
In Latin America This material is provided by NGAM S.A.
In Latin America This material is provided by NGAM S.A.
The above referenced entities are business development units of Natixis Global Asset Management, the holding company of a diverse line-up of specialized investment management and distribution entities worldwide. The investment management subsidiaries of Natixis Global Asset Management conduct any regulated activities only in and from the jurisdictions in which they are licensed or authorized. Their services and the products they manage are not available to all investors in all jurisdictions.
The above referenced entities are business development units of Natixis Global Asset Management, the holding company of a diverse line-up of specialized investment management and distribution entities worldwide. The investment management subsidiaries of Natixis Global Asset Management conduct any regulated activities only in and from the jurisdictions in which they are licensed or authorized. Their services and the products they manage are not available to all investors in all jurisdictions.
In Mexico This material is provided by NGAM Mexico, S. de R.L. de C.V., which is not a regulated financial entity or an investment advisor and is not regulated by the Comisión Nacional Bancaria y de Valores or any other Mexican authority. Registered address: NGAM México, S. de R.L. de C.V., Torre Magenta, Piso 17, Paseo de la Reforma 284, Colonia Juárez 06600, México D.F., México. This material should not be considered investment advice of any type and does not represent the performance of any regulated financial activities. Any products, services or investments referred to herein are rendered or offered in a jurisdiction other than Mexico. In order to request the products or services mentioned in these materials it will be necessary to contact Natixis Global Asset Management outside Mexican territory. NGAM Mexico, S. de R.L. de C.V. is a business development unit of Natixis Global Asset Management, a subsidiary of Natixis that is the holding company of a diverse line-up of specialized investment management and distribution entities worldwide.
In Mexico This material is provided by NGAM Mexico, S. de R.L. de C.V., which is not a regulated financial entity or an investment advisor and is not regulated by the Comisión Nacional Bancaria y de Valores or any other Mexican authority. Registered address: NGAM México, S. de R.L. de C.V., Torre Magenta, Piso 17, Paseo de la Reforma 284, Colonia Juárez 06600, México D.F., México. This material should not be considered investment advice of any type and does not represent the performance of any regulated financial activities. Any products, services or investments referred to herein are rendered or offered in a jurisdiction other than Mexico. In order to request the products or services mentioned in these materials it will be necessary to contact Natixis Global Asset Management outside Mexican territory. NGAM Mexico, S. de R.L. de C.V. is a business development unit of Natixis Global Asset Management, a subsidiary of Natixis that is the holding company of a diverse line-up of specialized investment management and distribution entities worldwide.
In Canada NGAM Distribution, L.P. (“NGAM Distribution”), with its principal office located in Boston, MA, is not registered in Canada and any dealings with prospective clients or clients in Canada are in reliance upon an exemption from the dealer registration requirement in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. There may be difficulty enforcing legal rights against NGAM Distribution because it is resident outside of Canada and all or substantially all of its assets may be situated outside of Canada. The agent for service of process in Alberta is Borden Ladner Gervais LLP (Jonathan Doll), located at Centennial Place, East Tower, 1900, 520 - 3rd Avenue SW, Calgary, Alberta T2P 0R3. The agent for service of process in British Columbia is Borden Ladner Gervais LLP (Jason Brooks), located at 1200 Waterfront Centre, 200 Burrard Street, P.O. Box 48600, Vancouver, BC V7X 1T2. The agent for service of process in Ontario is Borden Ladner Gervais LLP (John E. Hall), located at Scotia Plaza, 40 King St. W, Toronto, ON M5H 3Y4. The agent for service of process in Quebec is Borden Ladner Gervais LLP (Christian Faribault), located at 1000 de La Gauchetiere St. W, Suite 900, Montreal, QC H3B 5H4.
In Canada NGAM Distribution, L.P. (“NGAM Distribution”), with its principal office located in Boston, MA, is not registered in Canada and any dealings with prospective clients or clients in Canada are in reliance upon an exemption from the dealer registration requirement in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. There may be difficulty enforcing legal rights against NGAM Distribution because it is resident outside of Canada and all or substantially all of its assets may be situated outside of Canada. The agent for service of process in Alberta is Borden Ladner Gervais LLP (Jonathan Doll), located at Centennial Place, East Tower, 1900, 520 - 3rd Avenue SW, Calgary, Alberta T2P 0R3. The agent for service of process in British Columbia is Borden Ladner Gervais LLP (Jason Brooks), located at 1200 Waterfront Centre, 200 Burrard Street, P.O. Box 48600, Vancouver, BC V7X 1T2. The agent for service of process in Ontario is Borden Ladner Gervais LLP (John E. Hall), located at Scotia Plaza, 40 King St. W, Toronto, ON M5H 3Y4. The agent for service of process in Quebec is Borden Ladner Gervais LLP (Christian Faribault), located at 1000 de La Gauchetiere St. W, Suite 900, Montreal, QC H3B 5H4.
CLOSE ENOUGH ISN’T GOOD ENOUGH
GETTING TO THE GOAL
Investor expectations and the need for concrete financial plans
Markets, emotions and the risks advisors must manage
In the United States Furnished by NGAM Distribution, L.P., 399 Boylston St., Boston, MA 02116.
In the United States Furnished by NGAM Distribution, L.P., 399 Boylston St., Boston, MA 02116.
Natixis Global Asset Management consists of Natixis Global Asset Management, S.A., NGAM Distribution, L.P., NGAM Advisors, L.P., NGAM S.A., and NGAM S.A.’s business development units across the globe, each of which is an affiliate of Natixis Global Asset Management, S.A. The affiliated investment managers and distribution companies are each an affiliate of Natixis Global Asset Management, S.A. ngam.natixis.com
Copyright © 2014 NGAM Advisors, L.P. – All rights reserved.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Natixis Global Asset Management consists of Natixis Global Asset Management, S.A., NGAM Distribution, L.P., NGAM Advisors, L.P., NGAM S.A., and NGAM S.A.’s business development units across the globe, each of which is an affiliate of Natixis Global Asset Management, S.A. The affiliated investment managers and distribution companies are each an affiliate of Natixis Global Asset Management, S.A. ngam.natixis.com
This material should not be considered investment advice nor a solicitation to buy or an offer to sell any product or service to any person in any jurisdiction where such activity would be unlawful.
24
2014 INVESTOR INSIGHT SERIES
This communication is for information only. Analyses of the survey referenced herein are as of September 2014. There can be no assurance that developments will transpire as may be forecasted in this material. This material may not be distributed, published, or reproduced, in whole or in part. Although Natixis Global Asset Management believes the information provided in this material to be reliable, it does not guarantee the accuracy, adequacy or completeness of such information.
This material should not be considered investment advice nor a solicitation to buy or an offer to sell any product or service to any person in any jurisdiction where such activity would be unlawful. Copyright © 2014 NGAM Advisors, L.P. – All rights reserved.
1020542 WP102-0914
1068548.1.1 NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
WP110-1214
2015 GLOBAL RETIREMENT INDEX An in-depth assessment of welfare in retirement around the world
UNDER PRESSURE Facing up to the challenge of balancing short-term performance needs with long-term liabilities
About the surveys referenced in this paper 2014 Global Survey of Institutional Investors – Natixis Global Asset Management commissioned CoreData Research to conduct a global study of institutional investors, with the aim of gaining insight as to how they are managing investments and meeting various challenges in today’s world. Interviews were conducted throughout October and November 2014. Globally, the study involved 642 decision-makers working in institutional investment who collectively manage $31 trillion in assets in 27 countries across six geographical regions. 2014 Global Survey of Financial Advisors – Natixis Global Asset Management commissioned CoreData Research to conduct an international study of financial advisors, with the aim of better understanding the contemporary attitudes and needs of this key collective of individuals to the financial services industry. Data was gathered over a five-week period spanning June and July 2014. The survey was delivered through an online quantitative survey of approximately 40 questions and was hosted by CoreData Research. Globally, the study involved 1,800 financial advisors in ten countries and across four continents. 2015 Global Retirement Index – Natixis Global Asset Management and CoreData Research produce the Global Retirement Index Report, an international comparison tool with the objective of providing a global benchmark for retirees and future retirees to evaluate the suitability of nations in meeting retirement needs and expectations. Analyses and rankings are as of January 2015. The Index provides insight into the environment for retirees in 150 countries based on 20 economic, regulatory and health factors. Building more durable portfolios Natixis Global Asset Management is committed to helping investors and advisors build better portfolios that stand up to the challenges of modern markets. To learn more about our Durable Portfolio Construction® philosophy, visit durableportfolios.com.
2015 GLOBAL SURVEY OF INDIVIDUAL INVESTORS
25
This communication is for information only. Analyses of the survey referenced herein are as of February 2015. There can be no assurance that developments will transpire as may be forecasted in this material. This material may not be distributed, published, or reproduced, in whole or in part. In Australia: This document is issued by NGAM Australia Limited (“NGAM AUST”) (ABN 60 088 786 289) (AFSL No. 246830) and is intended for the general information of financial advisers and wholesale clients only and does not constitute any offer or solicitation to buy or sell securities and no investment advice or recommendation. Investment involves risks. This document may not be reproduced, distributed or published, in whole or in part, without the prior approval of NGAM AUST. Information herein is based on sources NGAM AUST believe to be accurate and reliable as at the date it was made. NGAM AUST reserve the right to revise any information herein at any time without notice. In the E.U. (outside of the U.K.): This material is provided by NGAM S.A. or one of its branch offices listed below. NGAM 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 office of NGAM S.A.: 2, rue Jean Monnet, L-2180 Luxembourg, Grand Duchy of Luxembourg. France: NGAM Distribution (n.509 471 173 RCS Paris). Registered office: 21 quai d’Austerlitz, 75013 Paris. Italy: NGAM S.A., Succursale Italiana (Bank of Italy Register of Italian Asset Management Companies no 23458.3). Registered office: Via Larga, 2 - 20122, Milan, Italy. Germany: NGAM S.A., Zweigniederlassung Deutschland (Registration number: HRB 88541). Registered office: Im Trutz Frankfurt 55, Westend Carrée, 7. Floor, Frankfurt am Main 60322, Germany. Netherlands: NGAM, Nederlands filiaal (Registration number 50774670). Registered office: World Trade Center Amsterdam, Strawinskylaan 1259, D-Tower, Floor 12, 1077 XX Amsterdam, the Netherlands. Sweden: NGAM, Nordics Filial (Registration number 516405-9601 - Swedish Companies Registration Office). Registered office: Kungsgatan 48 5tr, Stockholm 111 35, Sweden. Spain: NGAM, Sucursal en España. Registered office: Torre Colon II Plaza Colon, 2 - 28046 Madrid, Spain. In Switzerland: Provided to Qualified Investors by NGAM, Switzerland Sàrl. In the U.K.: This material is provided by NGAM UK Limited which is authorised and regulated by the UK Financial Conduct 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 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 (FSMA 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 FSMA 2000 (Financial Promotion) Order 2005 or the FSMA 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001 (the “Intended Recipients”). To the extent that this material is issued by NGAM 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 Office: NGAM UK Limited, Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA. In the DIFC: Distributed in and from the DIFC financial district to Professional Clients only by NGAM Middle East, a branch of NGAM UK Limited, which is regulated by the DFSA. Registered office: Office 603 - Level 6, Currency House Tower 2, PO Box 118257, DIFC, Dubai, United Arab Emirates.
In Hong Kong: This document is issued by NGAM Hong Kong Limited and is provided solely for general information only and does not constitute a solicitation to buy or an offer to sell any financial products or services. Certain information included in this material is based on information obtained from other sources considered reliable. However, NGAM Hong Kong Limited does not guarantee the accuracy of such information. This document has not been reviewed or approved by the Securities and Futures Commission (“SFC”). In Latin America (outside Mexico and Uruguay): This material is provided by NGAM S.A., 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 office of NGAM S.A.: 2, rue Jean Monnet, L-2180 Luxembourg, Grand Duchy of Luxembourg. In Mexico: This material is provided by NGAM Mexico, S. de R.L. de C.V., which is not a regulated financial entity or an investment advisor and is not regulated by the Comisión Nacional Bancaria y de Valores or any other Mexican authority. This material should not be considered investment advice of any type and does not represent the performance of any regulated financial activities. Any products, services or investments referred to herein are rendered or offered in a jurisdiction other than Mexico. In order to request the products or services mentioned in these materials it will be necessary to contact Natixis Global Asset Management outside Mexican territory. In Canada: NGAM Distribution, L.P. (“NGAM Distribution”), with its principal office located in Boston, MA, is not registered in Canada and any dealings with prospective clients or clients in Canada are in reliance upon an exemption from the dealer registration requirement in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. There may be difficulty enforcing legal rights against NGAM Distribution because it is resident outside of Canada and all or substantially all of its assets may be situated outside of Canada. The agent for service of process in Alberta is Borden Ladner Gervais LLP (Jonathan Doll), located at Centennial Place, East Tower, 1900, 520 - 3rd Avenue SW, Calgary, Alberta T2P 0R3. The agent for service of process in British Columbia is Borden Ladner Gervais LLP (Jason Brooks), located at 1200 Waterfront Centre, 200 Burrard Street, P.O. Box 48600, Vancouver, BC V7X 1T2. The agent for service of process in Ontario is Borden Ladner Gervais LLP (John E. Hall), located at Scotia Plaza, 40 King St. W, Toronto, ON M5H 3Y4. The agent for service of process in Quebec is Borden Ladner Gervais LLP (Christian Faribault), located at 1000 de La Gauchetiere St. W, Suite 900, Montreal, QC H3B 5H4. In the United States: Furnished by NGAM Distribution, L.P., 399 Boylston St., Boston, MA 02116. In Uruguay: This material is provided by NGAM Uruguay S.A. NGAM Uruguay S.A. is a duly registered investment advisor, authorised and supervised by the Central Bank of Uruguay (“CBU”). Please find the registration communication issued by the CBU at www.bcu.gub.uy. Registered office: WTC - Luis Alberto de Herrera 1248, Torre 3, Piso 4, Oficina 474, Montevideo, Uruguay, CP 11300. The sale or offer of any units of a fund qualifies as a private placement pursuant to section 2 of Uruguayan law 18,627 dated December 2, 2009. The units must not be offered or sold to the public in Uruguay, except in circumstances which do not constitute a public offering or distribution under Uruguayan laws and regulations. The units are not and will not be registered with the Financial Services Superintendent of the Central Bank of Uruguay. The units correspond to investment funds that are not investment funds regulated by Uruguayan law 16.774 dated September 27, 1996, as amended.
In Singapore: Provided by NGAM Singapore (name registration no. 5310272FD), a division of Natixis Asset Management Asia Limited, formerly known as Absolute Asia Asset Management Limited, to Institutional Investors and Accredited Investors for information only. Natixis Asset Management Asia Limited is authorised by the Monetary Authority of Singapore (Company registration No. 199801044D) and holds a Capital Markets Services Licence to provide investment management services in Singapore. Address of NGAM Singapore: 10 Collyer Quay, #14- 07/08 Ocean Financial Centre, Singapore 049315. Hotline No: 63099649.
The above referenced entities are business development units of Natixis Global Asset Management, the holding company of a diverse line-up of specialized investment management and distribution entities worldwide. The investment management subsidiaries of Natixis Global Asset Management conduct any regulated activities only in and from the jurisdictions in which they are licensed or authorized. Their services and the products they manage are not available to all investors in all jurisdictions. It is the responsibility of each investment service provider to ensure that the offering or sale of fund shares or third party investment services to its clients complies with the relevant national law.
In Taiwan: This material is provided by NGAM Securities Investment Consulting (Taipei) Co., Ltd., a Securities Investment Consulting Enterprise, regulated by the Taiwan Financial Supervisory Commission. Registered address: 16F-1, No. 76, Section 2, Tun Hwa South Road, Taipei, Taiwan, Da-An District, 106 (Ruentex Financial Building I), R.O.C., license number 2012 FSC SICE No. 039, Tel. +886 2 2784 5777.
Natixis Global Asset Management consists of Natixis Global Asset Management, S.A., NGAM Distribution, L.P., NGAM Advisors, L.P., NGAM S.A., and NGAM S.A.’s business development units across the globe, each of which is an affiliate of Natixis Global Asset Management, S.A. The affiliated investment managers and distribution companies are each an affiliate of Natixis Global Asset Management, S.A.
In Japan: Provided by Natixis Asset Management Japan Co., Registration No.: Director-General of the Kanto Local Financial Bureau (kinsho) No. 425. Content of Business: The Company conducts discretionary asset management business and investment advisory and agency business as a Financial Instruments Business Operator. Registered address: 2-2-3 Uchisaiwaicho, Chiyoda- ku, Tokyo.
ngam.natixis.com The provision of this material and/or reference to specific securities, sectors, or markets within this material does not constitute investment advice, or a recommendation or an offer to buy or to sell any security, or an offer of services. Copyright © 2015 NGAM Advisors, L.P. – All rights reserved.
1149893.1.1 NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
WP80-0315
