Gain clarity for your allocation strategy no matter where you stand
Economic data and macro narratives have been driving significant performance differences across asset classes. How you look at the world and where you think the economy will evolve has a sizable impact on your allocation decisions. You probably have a view, but are you seeing a path forward? For greater clarity, our Portfolio Analysis & Consulting Team follows a proprietary methodology called Cyclicality vs. Inflation Analysis. It provides a different perspective on allocation by scoring portfolio exposure to specific asset classes, sectors, and industries that are likely to perform best in specific economic environments.
Explore which sectors tend to outperform during different macro environments
Growth stays resilient but inflation remains sticky
Fixed income: Spreads compress, Treasury yields rise
- Bank Loans
- High Yield Corporates
Equity: Favors cyclical sectors
- Financials
- Industrials
- Materials
- Energy
Growth slows and inflation comes under control
Fixed income: Spreads expand, Treasury yields fall
- Intermediate and Long-Term Treasuries
- Agency MBS
- Municipal Bonds
Equity: Favors defensive growth sectors
- Communication Services
- Health Care
Growth stays resilient and inflation remains sticky
Fixed income: Spreads expand, Treasury yields rise
- Short-Term Treasuries
- Money Market
Equity: Favors defensive sectors
- Real Estate
- Utilities
- Consumer Staples
- Health Care
What style boxes can’t tell you
Adding exposures that align with your outlook may help build a more resilient portfolio. Conversely, if you have holdings concentrated in a scenario you don’t expect to occur, you may want to consider some reallocation options. This proprietary methodology was developed and vetted by a 10-member Investment Committee at Natixis Investment Managers Solutions. It’s the same institutional-quality analysis applied to the model portfolios it manages on behalf of some of the world’s largest wealth managers.
Portfolio evaluation: How does yours stack up?
Why not schedule an objective portfolio evaluation with a member of our experienced Portfolio Analysis and Consulting Team? They use sophisticated diagnostic tools to help identify diversification and yield opportunities and stress test your portfolio for numerous macro scenarios using their proprietary methodology. Call 800-862-4863 to set up an evaluation, or contact us.
Mark J. Cintolo, CFA®, CAIA®
Vice President, Portfolio Consultant - Natixis Investment Managers Solutions
Sean Kaukas, CFA®
Portfolio Consultant - Natixis Investment Managers Solutions
Kevin McCullough, CFA®
Portfolio Consultant - Natixis Investment Managers Solutions
Sean McDade, CFP®, CAIA®
Vice President, Portfolio Consultant - Natixis Investment Managers Solutions
David T. Reilly, CFA®
Vice President, Portfolio Consultant - Natixis Investment Managers Solutions
Vladislav V. Grigorov, CFA®
Portfolio Consultant - Natixis Investment Managers Solutions
Practical applications for your portfolio
Model portfolios
One way to simplify your allocation decision-making is to outsource it to a highly skilled model portfolios provider that shifts positioning to better align with evolving macro scenarios.
If you prefer to make all allocation decisions, diversifying your portfolio’s exposure across growth and cyclical sectors in equities and multiple sectors of fixed income markets may be a smart approach.
NERYX
Loomis Sayles Core Plus Bond Fund
Benchmark-aware, relative return fixed income fund that combines traditional government securities with sectors outside the benchmark to pursue alpha.
LSGRX
Loomis Sayles Growth Fund
High-conviction US stock fund run by Aziz Hamzaogullari. Focuses only on companies believed to have long-term secular growth and sustainable business models.
LSIGX
Loomis Sayles Investment Grade Fixed Income Fund
Pursues total return from a “go anywhere” portfolio that allows veteran management team to seek out the best values in fixed income markets worldwide.
NEJYX
Vaughan Nelson Small Cap Value Fund
High-conviction small-cap value fund that seeks significant returns by investing in stocks of companies with undervalued assets, earnings growth, or dividend yield.
Allocation insight
Get more views on aligning macro outlooks with your equity and fixed income allocation decisions.
Portfolio construction
Investment portfolio trends 2023: Looking in the mirror
A review of more than 200 investment portfolios highlights the benefits of risk-on allocations as inflation fears ease and markets rebound.
Portfolio construction
Five institutional trends dominated in 2H 2023
How E&Fs led in performance, why private debt interest soared, and other institutional portfolio trends are detailed.
Portfolio construction
2024 Investment idea: Quality/growth
Using our proprietary Cyclicality vs. Inflation framework to align portfolio positioning with our economic outlook – lean in on Quality and Growth.
Portfolio construction
Portfolio construction: Growth & cyclical stocks
Portfolio consultants explain how they align equity investments with their current economic outlook using a growth/cyclical barbell strategy.
Fixed income
Fixed income framework: Cyclicality vs. inflation
Framework shows how investors can adjust their bond holdings to align with their outlook for inflation, growth and recession scenarios.
Portfolio construction
Listen to our experts explain the framework
Analysis that combines inflation and growth cycle trends may provide a more nuanced way to understand stock market drivers.
Stress test your portfolio
Our team of Portfolio Analysts can help you stress test your portfolio for varying macro scenarios. Schedule your objective portfolio evaluation today.
This material is provided for informational purposes only and should not be construed as investment advice.
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided. Investors should fully understand the risks associated with any investment prior to investing.
CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.
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