Natixis to Offer New Retirement Spending Account

• AlphaSimplex Group and Managed Portfolio Advisors® to manage strategy
• Limits volatility; pursues capital preservation and growth; seeks to provide consistent income in retirement

BOSTON--(BUSINESS WIRE)-- Natixis Global Asset Management announced plans today to offer an all-inclusive product for retirees designed to manage the demands on retirement income. Anticipated to be available in mid-May, the Natixis ASG Retirement Spending Accounts will invest retirees’ assets and seek to provide a realistic, steady annual income that can fund both short-term expenses and long-term retirement for investors.

“Retirement remains the number one investment priority for individual investors, and they worry about the costs associated with living longer, such as medical insurance, long-term care and inflation,” said Edward Farrington, executive vice president of Retirement at Natixis Global Asset Management. “Our new Retirement Spending Accounts provide a contemporary approach to the age-old retirement challenge, how to match funding to current and future expenses, that considers market volatility, longevity risk, taxes and other potential financial challenges associated with retirement.”

AlphaSimplex Group will determine the portfolios’ strategic and tactical asset allocation. Managed Portfolio Advisors® will focus on the trading, systematic withdrawal strategy and tax management of the accounts. Both firms are Natixis affiliates.

Contrary to traditional retirement income strategies, Natixis’ retirement accounts will begin with a conservative asset allocation and increase allocations to riskier assets, including equities and alternatives, for a period of time before decreasing risk as investors begin moving toward the end of the planning horizon.

“The allocation of higher-risk assets is low in early retirement to help limit volatility when withdrawals are just beginning,” explains Farrington. “This is the time when an investor is most susceptible to sequence of return risks, since a major market correction at the beginning of retirement could deplete a large percentage of the retirees’ total nest egg. The allocation to risk assets increases during mid-retirement to pursue potential returns to help protect against inflation and longevity risk, and then declines again late in retirement to preserve capital and prepare for transitioning assets to the next generation.”

The accounts will use an Adaptive Retirement Income Glidepath^SM and a risk management framework. The account will seek to generate a steady cash flow calculated on the original investment in the program, at either a four or five percent withdrawal rate, with an annual inflation adjustment. The account remains liquid for investors throughout their lives and maintains flexibility beyond the standard monthly income payment to address life events.

The Retirement Spending Accounts will be made up of portfolios that include Natixis affiliate mutual funds and ETFs. The accounts are currently designed for investors who started retirement on or around years 2000, 2005, 2010 or 2015 and will be sold through registered financial advisors. The minimum investment is $100,000.

“Life changes dramatically for clients entering retirement, and their investment strategy should change with them,” continued Farrington. “The Natixis ASG Retirement Spending Accounts give structure to the conversations that advisors are having with their clients about longevity and the retirement income challenge. With so many variables, it makes sense to work closely with your investment and tax advisors. They can help identify the opportunities and create a plan to optimize your spendable income.”

For more information or to read Natixis’ latest whitepaper on retirement, “A New Chapter, A New Approach. Rewriting the Rules of Retirement Income,” visit http://durableportfolios.com.

About Natixis Global Asset Management

Natixis Global Asset Management, S.A. is a multi-affiliate organization that offers a single point of access to more than 20 specialized investment firms in the U.S., Europe and Asia. The firm ranks among the world’s largest asset managers.¹ Through its Durable Portfolio Construction^® philosophy, the company is dedicated to providing innovative ideas on asset allocation and risk management that can help institutions, advisors and individuals address a range of modern market challenges. Natixis Global Asset Management, S.A brings together the expertise of multiple specialized investment managers based in Europe, the United States and Asia to offer a wide spectrum of equity, fixed-income and alternative investment strategies.

Headquartered in Paris and Boston, Natixis Global Asset Management, S.A.’s assets under management totaled $890.0 billion (€735.5 billion) as of December 30, 2014.² Natixis Global Asset Management, S.A. is part of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Global Asset Management, S.A.’s affiliated investment management firms and distribution and service groups include Active Investment Advisors® ;³ AEW Capital Management; AEW Europe; AlphaSimplex Group; Aurora Investment Management; Axeltis; Capital Growth Management; Darius Capital Partners; Dorval Finance;⁴ Gateway Investment Advisers; H2O Asset Management;⁴ Harris Associates; IDFC Asset Management Company; Loomis, Sayles & Company; Managed Portfolio Advisors®;³ McDonnell Investment Management; Mirova;⁵ Natixis Asset Management; Natixis Environment & Infrastructure Luxembourg; NexGen; Ossiam; Reich & Tang Asset Management; Seeyond ^SM;⁶ Snyder Capital Management; Vaughan Nelson Investment Management; Vega Investment Managers;⁴ and Natixis Global Asset Management Private Equity, which includes Seventure Partners, Naxicap Partners, Alliance Entreprendre, Euro Private Equity, Caspian Private Equity and Eagle Asia Partners. Visit ngam.natixis.com for more information.

¹ Cerulli Quantitative Update: Global Markets 2014 ranked Natixis Global Asset Management, S.A. as the 16th largest asset manager in the world based on assets under management as of December 31, 2013.
²Assets under management (AUM) may include assets for which non-regulatory AUM services are provided. Non- regulatory AUM includes assets which do not fall within the SEC’s definition of ‘regulatory AUM’ in Form ADV, Part 1
³Division of NGAM Advisors, L.P.
⁴ An affiliate of Natixis Asset Management.
⁵ A subsidiary of Natixis Asset Management.
⁶A global investment unit of the Natixis Asset Management organization, operated in the U.S. through Natixis Asset Management U.S., LLC.

This document may contain references to third party copyrights, indexes, and trademarks, each of which is the property of its respective owner. Such owner is not affiliated with Natixis Global Asset Management or any of its related or affiliated companies (collectively “NGAM”) and does not sponsor, endorse or participate in the provision of any NGAM services, funds or other financial products.

The Retirement Spending Accounts are designed to have the assets lasting for a specified time horizon with a prescribed distribution amount, but NGAM Advisors makes no guarantee that the assets will last that long. It is possible that the account’s assets may be drawn down before the end of the time horizon. Additionally, the prescribed distribution amounts are not taking required minimum distributions into account and if required minimum distributions exceed the prescribed distribution amount

and clients take those from this account that may also draw down assets in the account more quickly and will decrease the probability that the account will last through the full time horizon.

There is no assurance that any investment will meet its performance objectives or that losses will be avoided. There can be no guarantee that the investment amount plus earnings will last throughout an investor’s retirement period, or that cash distribution target will be met. Past performance does not guarantee future returns.

Definitions:

Sequence of Return Risk is the risk of receiving lower or negative returns early in a period when withdrawals are made from the underlying investments. The order or sequence of investment returns is a concern for individuals who are retired and living off the income and capital of their investments.

Volatility is the range of variation in the value of a security.

NGAM Distribution, L.P. is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Global Asset Management, S.A.

NGAM Advisors, L.P. provides advisory services through its divisions Active Investment Advisors® and Managed Portfolio Advisors®. Advisory services are generally provided with the assistance of model portfolio providers, some of which are affiliates of Natixis Global Asset Management, L.P.NGAM Advisors, L.P. does not provide tax or legal advice. Please consult with a tax or legal professional prior to making any investment decisions.

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Natixis Global Asset Management

David Snowden, 617-449-2507

[email protected]

Source: Natixis Global Asset Management