Natixis Global Inflation Fund benefits from the historic expertise of the team of management GT Govie and Inflation of Natixis AM and privileges the OII on a wide geographical universe ranking from G7 to emerging countries. Furthermore, considering the interaction between inflation and currencies, the management team can expose the fund to certain currencies, in particular those were linked to the export of commodities.
The management team so sets up strategies of "core" management (carry on the inflation, the allocation on the curve of real rates, exhibition at the real rates) beside diversification strategies (exhibition in the currencies commodities, the cover of foreign currencies).
Due to its various strategies and its diversification on the emerging countries, Natixis Global Inflation Fund has the capacity to:
- benefit from the context of low rate and the return of the medium-term inflation,
- resist the anticipations of rises of the interest rates,
- continue to generate a regular performance.
The fund invests in inflation-indexed sovereign bonds (real rates) in the developed countries (U.S., Canada, Australia, Sweden, Japan, the U.K. and Euro zone) and to a lesser extent (a maximum of 20%) in inflation-indexed bonds issued by emerging countries.
The fund is exposed to bond and credit markets. It is therefore sensitive to the risk of a fall in bond values as a result of interest rate fluctuations, or credit risk resulting from a downgrading of the issuer´s rating (company or government, etc.).
• Asset management company: NGAM S.A.
• Subadviser: NATIXIS ASSET MANAGEMENT
• Asset class: Fixed Income
• Asset subclass: Sovereign
• Specificity: Inflation
• Investment universe: Global
• Legal form: SICAV with separate sub-funds
• UCITS Compliant: Yes
• AMF (French Market Authority) classification: International fixed income and debt securities
• Inception date: 30/06/2006
• Accounting currency: EUR
• Minimum recommended investment period: > 2 years
• Benchmark: BARC INF LINK WLD GVT HED TR €
Performance Review 2010
Sophie Potard: "Over the quarter, the Fund’s performance was -1.65%. This low lasted throughout the quarter, with a recovery during the final days of December.
In spite of the effective implementation of the QE2 by the Federal Reserve, a strong liquidation movement was introduced, causing an increase of over 1% for the U.S. 10-year.
This movement can be explained by the unwinding of “consensual” positions towards the end of the year. The publication of better than forecasted results and the reduction in appetite for government issues influenced the bond market. Advanced indicators were better than forecast and employment resisted.
This improvement in data caused the market to forget about fears of a “double dip” in the U.S. During September, we had a reaction to the lows reached on rates. The catalyst for the increase in rates was the publication of employment data in U.S. that were better than forecast."
Performance Review 2011
Sophie Potard: "Market Environment
The debt crisis in the Eurozone has once again been the main focus of the concerns for international investors, with the summit in Brussels in October allowing the stresses in the financial markets to be calmed somewhat despite the lack of specific details.
At the same time, uncertainties about global economic prospects continued to affect the financial markets. The “core” countries (France and Italy) were then affected, with tensions peaking in November, threatening the viability of the euro zone. In spite of the changes of government in Italy, Greece and Spain, tensions remain high in the market for the sovereign debt of these countries.
The Europeans are struggling to find a quick solution to the crisis from above. This was evident from the lukewarm enthusiasm of investors for the German initiative on 23 November.
The pragmatic Bundesbank had to buy back German state loans on the primary market, thereby breaking with the protocol. In parallel, the significant downturn in the world economic outlook added to the pressure on the budget positions of member countries, prompting the three main rating agencies to threaten to lower the triple-A ratings of core countries."