Performance & Volatility
Last valuation date : 24-06-2019
Risk / Return from 24-08-2009
All information for an index prior to its Inception Date is back-tested, based on the methodology that was in effect on the Inception Date. Back-tested performance, which is hypothetical and not actual performance, is subject to inherent limitations because it reflects application of an Index methodology and selection of index constituents in hindsight. No theoretical approach can take into account all of the factors in the markets in general and the impact of decisions that might have been made during the actual operation of an index. Actual returns may differ from, and be lower than, back-tested returns.
The key elements of the index methodology are available upon demand.
In volatile market conditions, many institutionals have looked to targeted absolute return funds.
The NXS TARS ER Index aims to provide exposure to a basket of five absolute return funds, selected by Natixis for their performances and risk criteria.
The index strategy includes an additional layer of risk control.
The index strategy is based on an equally weighted and daily rebalanced portfolio of the five funds where one-fifth of the invested portfolio is allocated to each fund.
Additionally, the index looks to provide an additional layer of protection by increasing and decreasing its allocation to the selected managers in order to maintain the volatility of the Index at or below 4.50%.
The portfolio of five funds:
– Carmignac Patrimoine,
– Franklin Templeton Investments – Global Fundamental Strategies Fund,
– Standard Life Investments -Global Absolute Return Strategies Fund,
– BNY Mellon Global Funds – Global Real Return Fund,
Natixis has developed the NXS TARS ER Index, based on alternative investments tested through volatile market conditions.
The objectives adopted by the managers of these funds have allowed them to provide:
– Diversification – across a range of asset classes such as equitities, bonds, credit and foreign exchange investments,
– Flexibility – by not being tied to any one type of asset but adjusting expose to different assets as market conditions dictate,
– Risk Control – through a range of methods designed to limit negative performance under volatile market conditions.