Jack Janasiewicz, CFA, Multi-asset Portfolio Manager and Lead Portfolio Strategist at Natixis Investment Managers Solutions, joined Keith Black, Managing Director of RIA Channel, to discuss the macroeconomic outlook and how Natixis models are being used by advisors.
Models are institutional-grade, professionally managed products that are easy for advisors to implement and monitor. Models allow advisors flexibility, as they can be implemented on a stand-alone basis, blended with models of different styles, or used alongside the advisor’s best stock or bond ideas. Models can be used to target portfolio risk, with choices ranging from conservative to aggressive. Models can save advisors time, allowing them to spend more time with clients and prospects. Surveyed clients report higher satisfaction when holding model portfolios.
Natixis operates under a multi-affiliate structure with over 15 active managers, including Loomis Sayles, Gateway, and the Oakmark Funds, each with its own independent investment portfolio, providing greater diversification. Natixis models are tax-aware and can make 10 to 15 portfolio adjustments per year, depending on the market environment. Natixis performs in-house due diligence, scheduling quarterly calls with each of its invested managers. The quantitative team blends managers together in a portfolio context. Tactical adjustments are implemented using ETFs. Advisors receive strong client service, with trade rationales, webinars, and monthly market commentaries.
Portfolio risk varies with the team’s macroeconomic views on factors such as growth, inflation, valuation, sentiment, and government policy. Janasiewicz’s macroeconomic view can be summed up by Metallica’s song “Ride the Lightning”: he expects the market to continue on its current trend, with the Fed likely to cut rates at least twice and little evidence of tightening credit conditions. The market has a persistent wall of worry regarding an AI bubble, concerns about concentration and valuation, and the quality of private credit loans. Janasiewicz believes that lower rates, improving earnings estimates, and margin expansion are likely to support the market. This bullish macro view leads the team to position portfolios to continue with the market’s current trend, with an overweight to US large-cap growth equities.
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