Natixis Funds Trust IV
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Class
N |
Class
Y1 |
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Natixis
Sustainable Future 2015 Fund® |
NSFBX |
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Natixis
Sustainable Future 2020 Fund® |
NSFDX |
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Natixis
Sustainable Future 2025 Fund® |
NSFEX |
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Natixis
Sustainable Future 2030 Fund® |
NSFFX |
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Natixis
Sustainable Future 2035 Fund® |
NSFGX |
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Natixis
Sustainable Future 2040 Fund® |
NSFHX |
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Natixis
Sustainable Future 2045 Fund® |
NSFJX |
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Natixis
Sustainable Future 2050 Fund® |
NSFKX |
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Natixis
Sustainable Future 2055 Fund® |
NSFLX |
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Natixis
Sustainable Future 2060 Fund® |
NSFMX |
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Natixis
Sustainable Future 2065 Fund® |
NSFOX |
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| 1 |
Class
Y shares are not currently available for
purchase. |
The
Securities and Exchange Commission (“SEC”) has not approved or disapproved any
Fund’s shares or determined whether this Prospectus is truthful or
complete. Any representation to the contrary is a crime.
Natixis
Sustainable Future 2015 Fund®
Investment
Goal
The
Fund seeks the highest total return consistent with its current asset
allocation.
Fund
Fees & Expenses
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
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(expenses that you pay each
year as a percentage of the value of your
investment) |
Class N |
Class Y |
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Management
fees |
0.12%
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0.12%
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Distribution
and/or service (12b-1) fees |
0.00%
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0.00%
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Other
expenses |
3.04%
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3.14%1
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Acquired
fund fees and expenses |
0.27%
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0.27%
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Total
annual fund operating expenses |
3.43%
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3.53%
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Fee
waiver and/or expense reimbursement2 |
2.93%
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2.98%
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Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.50%
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0.55%
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| 1 |
Because
Class Y shares of the Fund are not currently available for purchase and do
not have any operating results to report as of the Fund’s fiscal year end,
“Other
expenses” for the class are based on
estimated amounts for the current fiscal
year. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating expenses,
including expenses of the underlying funds in which the Fund invests, to
0.50% and 0.55% of the Fund’s average daily net assets for Class N and Y
shares, respectively,
exclusive of brokerage expenses, interest expense, taxes, organizational
and extraordinary expenses, such as litigation and indemnification
expenses. This undertaking
is in effect through May 31, 2025 and may be
terminated before then only with the consent of the Fund’s Board of
Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below both
(1) the class’ applicable expense
limitation at the time such amounts were waived/reimbursed and (2) the
class’ current applicable expense limitation. The Fund will not be
obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were waived/reimbursed.
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Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that
you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods (except where indicated). The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same except
that the example is
based
on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement assuming
that such waiver and/or reimbursement will only
be in place through the date noted above and on the Total Annual Fund Operating
Expenses for the remaining periods.
The
example does not take into account
brokerage commissions and other fees to financial intermediaries that you may
pay on your purchases and sales of shares of the Fund. Although
your actual
costs may be higher or lower, based on these assumptions your costs would
be:
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1 year |
3 years |
5 years |
10 years |
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Class
N |
$ |
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$ |
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$ |
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$ |
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Class
Y |
$ |
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$ |
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$ |
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$ |
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Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate
higher transaction costs and may result in higher taxes for you if your Fund
shares are held in a taxable account. These costs, which are not reflected
in
annual fund operating expenses or in the example, affect the Fund’s performance.
During
its most recently ended fiscal year, the Fund’s portfolio turnover rate
was 22% of
the average value of its portfolio.
Investments,
Risks and Performance
Principal
Investment Strategies
The
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
The
Fund allocates its assets among investments in segments (or allocable portions
of the Fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, the Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. The Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. The Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after retirement.
The
Fund follows a “sustainable investing approach” that aims to allocate the Fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with the Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to the Fund’s segments and
underlying funds may consider material ESG factors differently in their
investment processes. For example, there may be differences in how they source
ESG-related research (proprietary versus third party), the extent to
which
they actively engage with company management, and/or their focus on companies
whose products and services are designed to directly address and/or
benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that the Fund’s portfolio may
be better
positioned to deliver financial results over time and manage risks related to
negative outcomes (for example, those related to the physical and regulatory
risks related to climate change, poor human rights practices, or poor corporate
governance). Certain strategies may also seek to exclude specific types
of investments as part of the broader investment
approach.
A
brief description of the principal investment policies of the segments and
underlying funds and asset classes in which the Fund may invest from time to
time
as well as the Fund’s target allocations can be found in the “More About Goals
and Strategies” section of the prospectus. Under normal circumstances,
the
Fund may deviate no more than plus or minus 10% from its target allocations. The
Fund’s Adviser, Natixis Advisors, may modify the selection of segments
and
underlying funds for the Fund from time to time. Natixis Advisors also
determines the Fund’s glide path and target
allocations.
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how the Fund’s asset mix becomes more
conservative
as the target date approaches and passes. This reflects individuals’ expected
need for reduced market risks as retirement approaches and for low
portfolio volatility after retirement. The Fund is a “through” target date fund.
This means that the Fund is expected to reach its final allocations approximately
10 years past its target year.
The
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income
investments, such as government bonds, investment grade corporate notes and
bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. The Fund may invest in securities of any market
capitalization.
The
Fund’s Board of Trustees may approve combining the Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Principal
Investment Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose
money by investing in the Fund, including losses near, at, or
after the target year. There is no guarantee that the Fund will provide adequate
income at or after the target
year. Because of the Fund’s investments in the underlying funds, the Fund will
be subject to many of the risks below indirectly through its investments
in
the underlying funds rather than directly through investment in the actual
securities themselves.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government agency,
and are subject to investment risks, including possible loss of the principal
invested.
The
significance of any specific risk to an investment in the Fund will vary over
time, depending on the composition of the Fund’s portfolio, market conditions,
and
other factors. You should read all of the risk information presented below
carefully, because any one or more of these risks may result in losses to the
Fund.
Equity Securities Risk:
The value of the Fund’s investments in equity securities could be subject to
unpredictable declines in the value of individual securities
and periods of below-average performance in individual securities or in the
equity market as a whole. Growth
stocks are generally more sensitive to
market movements than other types of stocks primarily because their stock prices
are based heavily on future expectations. If the Adviser’s
or subadviser’s assessment
of the prospects for a company’s growth is wrong, or if the Adviser’s
or subadviser’s judgment of how other investors will value the company’s
growth
is wrong, then the price of the company’s stock may fall or not approach the
value that the Adviser
or subadviser has placed on it.
Value
stocks can perform
differently from the market as a whole and from other types of stocks. Value
stocks also present the risk that their lower valuations fairly reflect their
business
prospects and that investors will not agree that the stocks represent favorable
investment opportunities, and they may fall out of favor with
investors
and underperform growth stocks during any given period. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s
bonds generally take precedence over the claims of those who own preferred stock
or common stock. Securities
of real estate-related companies and REITs
in which the Fund may invest may be considered equity securities, thus
subjecting the Fund to the risks of investing in equity securities
generally.
ESG Investing Risk:
The Fund’s ESG investment approach could cause the Fund to perform differently
compared to funds that do not have such an approach or
compared to the market as a whole. The Fund’s application of ESG-related
considerations may affect the Fund’s exposure to certain issuers, industries,
sectors,
style factors or other characteristics and may impact the relative performance
of the Fund—positively or negatively—depending on the relative performance
of such investments. Views
on what constitutes “ESG investing,” and therefore what investments are
appropriate for a fund that has an ESG investment
approach, may differ by fund, adviser and investor. In evaluating an investment,
a portfolio manager may be reliant upon information and data that may
turn out to be incomplete, inaccurate or unavailable, which may negatively
impact the portfolio manager’s assessment of an issuer’s ESG performance or
the
Fund’s performance generally. There is no guarantee that the Adviser’s efforts
to select investments based on ESG practices will be
successful.
Foreign Securities Risk:
Investments in foreign securities may be subject to greater political, economic,
environmental, credit/counterparty and information risks.
The
Fund’s investments in foreign securities also are subject to foreign currency
fluctuations and other foreign currency-related risks. Foreign
securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets Risk:
In addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising
from political or economic instability, war, nationalization or confiscatory
taxation, currency exchange or repatriation restrictions, sanctions by other
countries
(such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments, and an
issuer’s
unwillingness or inability to make dividend, principal or interest payments on
its securities. Emerging markets companies may be smaller and have shorter
operating histories than companies in developed
markets.
Mortgage-Related and Asset-Backed Securities
Risk:
In addition to the risks associated with investments in fixed-income securities
generally (for example,
credit, liquidity, inflation and valuation risk), mortgage-related and
asset-backed securities are subject to the risks of the mortgages and assets
underlying
the securities as well as prepayment risk, the risk that the securities may be
prepaid and result in the reinvestment of the prepaid amounts in securities
with lower yields than the prepaid obligations. Conversely, there is a risk that
a rise in interest rates will extend the life of a mortgage-related or
asset-backed
security beyond the expected prepayment time, typically reducing the security’s
value, which is called extension risk. The Fund also may incur a loss
when there is a prepayment of securities that were purchased at a premium. The
Fund’s investments in other asset-backed securities are subject to risks
similar
to those associated with mortgage-related securities, as well as additional
risks associated with the nature of the assets and the servicing of those
assets.
Allocation Risk: This
is the risk that the Adviser’s judgments about, and allocations between, asset
classes and market exposures may adversely affect the Fund’s
performance.
The
Fund’s investment performance depends, in part, on how its assets are
allocated. The
allocation,as
set forth above, may not be optimal
in every market condition. You could lose money on your investment in the Fund
as a result of this allocation.
Credit/Counterparty Risk:
Credit/counterparty risk is the risk that the issuer or guarantor of a
fixed-income security, or the counterparty to a derivative or other
transaction, will be unable or unwilling to make timely payments of interest or
principal or to otherwise honor its obligations. As a result, the Fund may
sustain
losses or be unable or delayed in its ability to realize gains. The Fund will be
subject to credit/counterparty risk with respect to the counterparties to
its
derivatives transactions. This risk will be heightened to the extent the
Fund enters into derivative transactions with a single counterparty (or
affiliated counterparties
that are part of the same organization), causing the Fund to have significant
exposure to such counterparty. Many of the protections afforded to
participants on organized exchanges and clearing houses, such as the performance
guarantee given by a central clearing house, are not available in connection
with over-the-counter
(“OTC”) derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps,
futures and many options, the primary credit/counterparty risk is the
creditworthiness of the Fund’s clearing broker and the central clearing house
itself.
Currency Risk:
Fluctuations in the exchange rates between different currencies may negatively
affect an investment. The Fund may be subject to currency risk
because it may invest in
currency-related instruments and may invest in securities
or other instruments denominated in, or that generate income denominated
in, foreign currencies. The
Fund may elect not to hedge currency risk, or may hedge such risk imperfectly,
which may cause the Fund to incur losses
that would not have been incurred had the risk been
hedged.
Cybersecurity and Technology Risk:
The Fund, its service providers, and
other market participants increasingly depend on complex information
technology
and communications systems, which are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result in
financial losses to the Fund and its
shareholders.
Derivatives Risk:
The Fund will be exposed to derivatives risk primarily through its investments
in the underlying funds. Derivative instruments (such as those
in which the underlying funds may invest, including forward currency contracts,
structured notes, futures transactions and swap transactions) are subject
to changes in the value of the underlying assets or indices on which such
instruments are based. There is no guarantee that an underlying fund’s use
of
derivatives will be effective or that suitable transactions will be available.
Even a small investment in derivatives by an underlying fund may give rise to
leverage
risk and can have a significant impact on the underlying fund’s exposure to
securities market values, interest rates or currency exchange rates. It is
possible
that an underlying fund’s liquid assets may be insufficient to support its
obligations under its derivatives positions. The use of derivatives for other
than
hedging purposes may be considered a speculative activity, and involves greater
risks than are involved in hedging. The use of derivatives by an underlying
fund may cause the Fund to incur losses greater than those that would have
occurred had derivatives not been used. An underlying fund’s use of
derivatives
involves other risks, such as credit/counterparty risk relating to the other
party to a derivative contract (which is greater for forward currency
contracts,
uncleared swaps and other OTC derivatives), the risk of difficulties in pricing
and valuation, the risk that changes in the value of a derivative may
not
correlate as expected with changes in the value of relevant assets, rates or
indices, liquidity risk, allocation risk and the risk of losing more than any
amounts
paid or margin transferred to initiate derivatives positions. There is also the
risk that an underlying fund may be unable to terminate or sell a derivatives
position at an advantageous time or price. An underlying fund’s derivative
counterparties may experience financial difficulties or otherwise be
unwilling
or unable to honor their obligations, possibly resulting in losses to the
Fund.
Inflation-Protected Securities
Risk:
Inflation-protected securities are subject to the risk that the rate of
inflation will be lower than expected. Inflation-protected
securities are intended to protect against inflation by adjusting the interest
or principal payable on the security by an amount based upon an index
intended
to measure the rate of inflation. There can be no assurance that the relevant
index will accurately measure the rate of inflation, in which case the
securities
may not work as intended.
Interest Rate Risk:
Interest rate risk is the risk that the value of the Fund’s investments will
fall if interest rates rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities
with relatively longer durations than for funds that invest in fixed-income
securities with shorter durations. Duration
is a measure of the expected life
of a fixed-income security that is used to determine the sensitivity of a
security’s price to changes in interest rates. A fund with a longer average
portfolio duration
will be more sensitive to changes in interest rates than a fund with a shorter
average portfolio duration.
The
value of zero-coupon and
pay-in-kind bonds
may be more sensitive to fluctuations in interest rates than other
fixed-income securities.
In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities and reduce the Fund’s
ability to sell them, negatively impacting the performance of the Fund.
Potential
future changes in government and/or central bank monetary policy and action may
also affect the level of interest rates. Recently, there have been inflationary
price movements, which have caused the fixed income securities markets to
experience heightened levels of interest volatility and liquidity risk.
Monetary
policy measures have in the past, and may in the future, exacerbate risks
associated with rising interest
rates.
Investments in Other Investment Companies
Risk:
The Fund will indirectly bear the management, service and other fees of any
other investment companies, including
exchange
traded funds, in which it invests in addition to its own expenses.
The
Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the underlying
funds.
Large Investor Risk:
Ownership of shares of the Fund may be concentrated in one or a few large
investors. Such investors may redeem shares in large quantities
or on a frequent basis. Redemptions by a large investor can affect the
performance of the Fund, may increase realized capital gains, including
short-term
capital gains taxable as ordinary income, may accelerate the realization of
taxable income to shareholders and may increase transaction costs. These
transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such
transactions
may also increase the Fund’s
expenses.
Leverage Risk: Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index,
market or asset-price movements into larger changes in value. The use of
leverage increases the impact of gains and losses on the Fund’s returns, and
may
lead to significant losses if investments are not
successful.
Liquidity Risk:
Liquidity risk is the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in the
Fund’s investments or in their capacity or willingness to transact may
increase
the Fund’s exposure to this risk. Events that may lead to increased redemptions,
such as market disruptions or increases in interest rates, may also negatively
impact the liquidity of the Fund’s investments when it needs to dispose of them.
Markets may become illiquid quickly. If the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect the Fund.
During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a private placement, such as Rule
144A securities and
privately negotiated equity and other investments, are generally subject to
significant liquidity risk because they are subject to strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. In other circumstances, liquid investments may become
illiquid. Derivatives, and particularly OTC
derivatives, are generally subject to liquidity risk as well.
Liquidity issues may also make it difficult to value the
Fund’s investments. The Fund may invest in liquid investments that become
illiquid due to financial distress, or geopolitical events such as sanctions,
trading
halts or wars.
Management Risk:
A strategy used by the Fund’s portfolio
managers may fail to produce the intended
result.
Market/Issuer Risk:
The market value of the Fund’s investments will move up and down, sometimes
rapidly and unpredictably, based upon overall market and
economic conditions, as well as a number of reasons that directly relate to the
issuers of the Fund’s investments, such as management performance, financial
condition and demand for the issuers’ goods and services.
Retirement Risk:
The Fund is not a complete retirement program and there is no guarantee that an
investment in the Fund will provide sufficient retirement income
at or through retirement. Although the Fund will become more conservative over
time (meaning that the Fund will allocate more of its assets to
fixed-income
investments than equity investments as it nears the target retirement date), the
Fund will continue to be exposed to market/issuer risk and the share
price
of the Fund will fluctuate, even after the Fund reaches its most conservative
allocation. This means that you could lose money by investing in the Fund,
including
losses near, at, or after the target retirement date. In addition, your risk
tolerance may change over time, including in ways that do not correlate
perfectly
with the Fund’s glide path. Achieving your retirement goals will depend on many
factors, including the amount you save and the period over which you
do so.
Small- and Mid-Capitalization Companies
Risk:
Compared to large-capitalization companies, small- and mid-capitalization
companies are more likely to have
limited product lines, markets or financial resources. Stocks of these companies
often trade less frequently and in limited volume and their prices may
fluctuate
more than stocks of large-capitalization companies. As a result, it may be
relatively more difficult for the Fund to buy and sell securities of small-
and
mid-capitalization companies.
Tracking Error Risk:
Although the Fund does not seek to track any particular index, certain segments
of the Fund are designed to reflect the performance results
and risk characteristics of various indexes. There is a risk that the
performance of a segment will diverge from the performance of its respective
index, potentially
materially.
Risk/Return
Bar Chart and Table
The bar chart and
table shown below provide some indication of the risks of investing in the Fund
by showing changes in the
Fund’s performance from year-to-year and by showing
how the Fund’s average annual returns for the one-year, five-year and
life-of-fund periods compare to those of a broad-based
securities market
index that reflects the performance of the overall market applicable to the Fund
and an additional index that represents the market sectors
in which the Fund primarily
invests. The Fund’s past
performance (before and after taxes) does not necessarily indicate how the Fund
will perform in the future. Updated
performance information is available online at im.natixis.com and/or by calling
the Fund toll-free at 800-225-5478.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been waived or
reimbursed
during the period, total returns would have been
lower.
Total Returns for Class N
Shares
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Highest Quarterly Return:
Second Quarter
2020, 11.42%
Lowest Quarterly Return:
Second Quarter
2022, -10.01%
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The Fund’s Class N
shares total return
year-to-date as of March 31, 2024 was
3.23%.
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Average Annual Total
Returns |
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(for the periods ended
December 31, 2023) |
Past 1 Year |
Past 5 Year |
Life of Fund
(2/28/17) |
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Return
Before Taxes |
12.24%
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6.52%
|
5.84%
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Return
After Taxes on Distributions |
10.86%
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4.00%
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3.53%
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Return
After Taxes on Distributions and Sale of Fund Shares |
7.41%
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4.43%
|
3.94%
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Bloomberg
U.S. Aggregate Bond Index1 |
5.53%
|
1.10%
|
1.20%
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S&P
Target Date 2015® Index |
11.38%
|
6.10%
|
5.07%
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| 1 |
Effective June 1, 2024, the Fund’s primary
broad-based performance index changed to the Bloomberg U.S. Aggregate
Bond Index. The Bloomberg U.S. Aggregate Bond Index is a broad-based
securities market index that represents the overall market applicable to
the Fund. The Fund will retain the S&P Target Date
2015® Index as its additional benchmark for performance
comparison.
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The Fund did not have
Class Y shares outstanding
during the periods shown above. The returns of Class
Y shares would have been substantially similar to the returns
of the Fund’s Class
N shares because they would have been invested in the same portfolio of
securities and would only differ to the extent the Class
N
shares did not have the same
expenses.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns shown are not relevant to investors who
hold their shares
through tax-advantaged arrangements, such as 401(k) plans, qualified plans,
education savings accounts, such as 529 plans, or individual
retirement accounts.
The after-tax returns are shown for only one class
of the Fund. After-tax returns for the other classes of the Fund will
vary.
Index
performance reflects
no deduction for fees, expenses or taxes.
Management
Investment
Adviser
Natixis
Advisors
Portfolio
Managers
The following portfolio managers determine the Fund’s
available underlying funds and separately managed segments, determine the Fund’s
glide path and target allocations and supervise the activities of
the Fund’s subadvisers:
Natixis Advisors
Marina
Gross has served as a co-portfolio manager of the Fund since 2018.
Daniel
Price, CFA®
has served as a co-portfolio manager of the Fund since 2018.
Christopher
Sharpe, CFA®
has served as a
co-portfolio manager of the Fund since 2019 and as lead portfolio manager of the
Fund since 2020.
Purchase
and Sale of Fund Shares
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts (such as wrap
accounts)
where an advisory fee is paid to the broker-dealer or other financial
intermediary. There is no subsequent investment minimum for these shares.
There
is no initial investment minimum for:
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
| • |
Funds of funds
that are distributed by Natixis
Distribution, LLC (the “Distributor”). |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes will
have enough
assets to exceed the investment minimum requirement within a relatively short
period of time following the establishment date of such accounts in Class
N. The Distributor and the Fund, at any time, reserve the right to liquidate
these accounts or any other account that does not meet the eligibility
requirements
of this class.
Class
Y Shares
Class
Y shares are not currently available for purchase.
Class
Y shares of the Fund are generally subject to a minimum initial investment of
$100,000. There is no subsequent investment minimum for these shares.
There
is no minimum initial investment for:
| • |
Fee Based Programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult your financial
representative to determine if your fee based program is subject to
additional or different conditions or
fees. |
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Certain Individual Retirement
Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement plans invested
in the Fund. |
| • |
Clients
of a Registered Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
| • |
Fund Trustees,
former Fund trustees, employees of affiliates of the Natixis Funds and
other individuals who are affiliated with any Natixis Fund (this also
applies
to any spouse, parents, children, siblings, grandparents, grandchildren
and in-laws of those mentioned) and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis
Advisors, clients of Natixis Advisors and its affiliates may purchase Class Y
shares of the Fund below the stated minimums.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and accounts of
registered
investment advisers may be subject to the investment minimums described
above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your investment dealer, directly from the Fund by writing to the
Fund
at Natixis Funds, P.O. Box 219579, Kansas City, MO 64121-9579, by exchange, by
wire, by internet at im.natixis.com (certain restrictions may apply),
through
the Automated Clearing House system, or, in the case of redemptions, by
telephone at 800-225-5478 or by the Systematic Withdrawal
Plan.
Tax
Information
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors that qualify
for
tax-advantaged treatment under U.S. federal income tax law generally.
Investments through such tax-advantaged plans will generally be taxed only upon
withdrawal
of monies from the tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary
for the sale of the Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary
and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Natixis
Sustainable Future 2020 Fund®
Investment
Goal
The
Fund seeks the highest total return consistent with its current asset
allocation.
Fund
Fees & Expenses
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
| |
|
(expenses that you pay each
year as a percentage of the value of your
investment) |
Class N |
Class Y |
|
Management
fees |
0.13%
|
0.13%
|
|
Distribution
and/or service (12b-1) fees |
0.00%
|
0.00%
|
|
Other
expenses |
3.91%
|
4.01%1
|
|
Acquired
fund fees and expenses |
0.26%
|
0.26%
|
|
Total
annual fund operating expenses |
4.30%
|
4.40%
|
|
Fee
waiver and/or expense reimbursement2 |
3.80%
|
3.85%
|
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.50%
|
0.55%
|
| 1 |
Because
Class Y shares of the Fund are not currently available for purchase and do
not have any operating results to report as of the Fund’s fiscal year end,
“Other
expenses” for the class are based on
estimated amounts for the current fiscal
year. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating expenses,
including expenses of the underlying funds in which the Fund invests, to
0.50% and 0.55% of the Fund’s average daily net assets for Class N and Y
shares, respectively,
exclusive of brokerage expenses, interest expense, taxes, organizational
and extraordinary expenses, such as litigation and indemnification
expenses. This undertaking
is in effect through May 31, 2025 and
may be terminated before then only with the consent of the Fund’s Board of
Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below both
(1) the class’ applicable expense
limitation at the time such amounts were waived/reimbursed and (2) the
class’ current applicable expense limitation. The Fund will not be
obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were waived/reimbursed.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that
you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods (except where indicated). The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same except
that the example is
based
on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement assuming
that such waiver and/or reimbursement will only
be in place through the date noted above and on the Total Annual Fund Operating
Expenses for the remaining periods.
The
example does not take into account
brokerage commissions and other fees to financial intermediaries that you may
pay on your purchases and sales of shares of the Fund. Although
your actual
costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
| |
|
|
1 year |
3 years |
5 years |
10 years |
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
Y |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate
higher transaction costs and may result in higher taxes for you if your Fund
shares are held in a taxable account. These costs, which are not reflected
in
annual fund operating expenses or in the example, affect the Fund’s performance.
During
its most recently ended fiscal year, the Fund’s portfolio turnover rate
was 27% of
the average value of its portfolio.
Investments,
Risks and Performance
Principal Investment
Strategies
The
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
The
Fund allocates its assets among investments in segments (or allocable portions
of the Fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, the Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. The Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. The Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after
retirement.
The
Fund follows a “sustainable investing approach” that aims to allocate the Fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with the Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to the Fund’s segments and
underlying funds may consider material ESG factors differently in their
investment processes. For example, there may be differences in how they source
ESG-related research (proprietary versus third party), the extent to
which
they actively engage with company management, and/or their focus on companies
whose products and services are designed to directly address and/or
benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that the Fund’s portfolio may
be better
positioned to deliver financial results over time and manage risks related to
negative outcomes (for example, those related to the physical and regulatory
risks related to climate change, poor human rights practices, or poor corporate
governance). Certain strategies may also seek to exclude specific types
of investments as part of the broader investment
approach.
A
brief description of the principal investment policies of the segments and
underlying funds and asset classes in which the Fund may invest from time to
time
as well as the Fund’s target allocations can be found in the “More About Goals
and Strategies” section of the prospectus. Under normal circumstances,
the
Fund may deviate no more than plus or minus 10% from its target allocations. The
Fund’s Adviser, Natixis Advisors, may modify the selection of segments
and
underlying funds for the Fund from time to time. Natixis Advisors also
determines the Fund’s glide path and target
allocations.
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how the Fund’s asset mix becomes more
conservative
as the target date approaches and passes. This reflects individuals’ expected
need for reduced market risks as retirement approaches and for low
portfolio volatility after retirement. The Fund is a “through” target date fund.
This means that the Fund is expected to reach its final allocations approximately
10 years past its target year.
The
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income
investments, such as government bonds, investment grade corporate notes and
bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. The Fund may invest in securities of any market
capitalization.
The
Fund’s Board of Trustees may approve combining the Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Principal
Investment Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose money by
investing in the
Fund,
including losses near, at, or after the target year. There is no guarantee that
the Fund will provide adequate income at or after the target
year. Because of the Fund’s investments in the underlying funds, the Fund will
be subject to many of the risks below indirectly through its investments
in
the underlying funds rather than directly through investment in the actual
securities themselves.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government agency,
and are subject to investment risks, including possible loss of the principal
invested.
The
significance of any specific risk to an investment in the Fund will vary over
time, depending on the composition of the Fund’s portfolio, market conditions,
and
other factors. You should read all of the risk information presented below
carefully, because any one or more of these risks may result in losses to the
Fund.
Equity Securities Risk:
The value of the Fund’s investments in equity securities could be subject to
unpredictable declines in the value of individual securities
and periods of below-average performance in individual securities or in the
equity market as a whole. Growth
stocks are generally more sensitive to
market movements than other types of stocks primarily because their stock prices
are based heavily on future expectations. If the Adviser’s
or subadviser’s assessment
of the prospects for a company’s growth is wrong, or if the Adviser’s
or subadviser’s judgment of how other investors will value the company’s
growth
is wrong, then the price of the company’s stock may fall or not approach the
value that the Adviser
or subadviser has placed on it.
Value
stocks can perform
differently from the market as a whole and from other types of stocks. Value
stocks also present the risk that their lower valuations fairly reflect their
business
prospects and that investors will not agree that the stocks represent favorable
investment opportunities, and they may fall out of favor with investors
and underperform growth stocks during any given period. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s
bonds generally take precedence over the claims of those who own preferred stock
or common stock. Securities
of real estate-related companies and REITs
in which the Fund may invest may be considered equity securities, thus
subjecting the Fund to the risks of investing in equity securities
generally.
ESG Investing Risk:
The Fund’s ESG investment approach could cause the Fund to perform differently
compared to funds that do not have such an approach or
compared to the market as a whole. The Fund’s application of ESG-related
considerations may affect the Fund’s exposure to certain issuers, industries,
sectors,
style factors or other characteristics and may impact the relative performance
of the Fund—positively or negatively—depending on the relative performance
of such investments. Views
on what constitutes “ESG investing,” and therefore what investments are
appropriate for a fund that has an ESG investment
approach, may differ by fund, adviser and investor. In evaluating an investment,
a portfolio manager may be reliant upon information and data that may
turn out to be incomplete, inaccurate or unavailable, which may negatively
impact the portfolio manager’s assessment of an issuer’s ESG performance or
the
Fund’s performance generally. There is no guarantee that the Adviser’s efforts
to select investments based on ESG practices will be
successful.
Foreign Securities Risk:
Investments in foreign securities may be subject to greater political, economic,
environmental, credit/counterparty and information risks.
The
Fund’s investments in foreign securities also are subject to foreign currency
fluctuations and other foreign currency-related risks. Foreign
securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets Risk:
In addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising
from political or economic instability, war, nationalization or confiscatory
taxation, currency exchange or repatriation restrictions, sanctions by other
countries
(such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments, and an
issuer’s
unwillingness or inability to make dividend, principal or interest payments on
its securities. Emerging markets companies may be smaller and have shorter
operating histories than companies in developed
markets.
Mortgage-Related and Asset-Backed Securities
Risk:
In addition to the risks associated with investments in fixed-income securities
generally (for example,
credit, liquidity, inflation and valuation risk), mortgage-related and
asset-backed securities are subject to the risks of the mortgages and assets
underlying
the securities as well as prepayment risk, the risk that the securities may be
prepaid and result in the reinvestment of the prepaid amounts in securities
with lower yields than the prepaid obligations. Conversely, there is a risk that
a rise in interest rates will extend the life of a mortgage-related or
asset-backed
security beyond the expected prepayment time, typically reducing the security’s
value, which is called extension risk. The Fund also may incur a loss
when there is a prepayment of securities that were purchased at a premium. The
Fund’s investments in other asset-backed securities are subject to risks
similar
to those associated with mortgage-related securities, as well as additional
risks associated with the nature of the assets and the servicing of those
assets.
Allocation Risk: This
is the risk that the Adviser’s judgments about, and allocations between, asset
classes and market exposures may adversely affect the Fund’s
performance.
The
Fund’s investment performance depends, in part, on how its assets are
allocated. The
allocation,
as set forth above, may not be optimal
in every market condition. You could lose money on your investment in the Fund
as a result of this allocation.
Credit/Counterparty Risk:
Credit/counterparty risk is the risk that the issuer or guarantor of a
fixed-income security, or the counterparty to a derivative or other
transaction, will be unable or unwilling to make timely payments of interest or
principal or to otherwise honor its obligations. As a result, the Fund may
sustain
losses or be unable or delayed in its ability to realize gains. The Fund will be
subject to credit/counterparty risk with respect to the counterparties to
its
derivatives transactions. This risk will be heightened to the extent the
Fund enters into derivative transactions with a single counterparty (or
affiliated counterparties
that are part of the same organization), causing the Fund to have significant
exposure to such counterparty. Many of the protections afforded to
participants on organized exchanges and clearing houses, such as the performance
guarantee given by a central clearing house, are not available in connection
with over-the-counter
(“OTC”) derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps,
futures and many options, the primary credit/counterparty risk is the
creditworthiness of the Fund’s clearing broker and the central clearing house
itself.
Currency Risk:
Fluctuations in the exchange rates between different currencies may negatively
affect an investment. The Fund may be subject to currency risk
because it may invest in
currency-related instruments and may invest in securities
or other instruments denominated in, or that generate income denominated
in, foreign currencies. The
Fund may elect not to hedge currency risk, or may hedge such risk imperfectly,
which may cause the Fund to incur losses
that would not have been incurred had the risk been
hedged.
Cybersecurity and Technology Risk:
The Fund, its service providers, and
other market participants increasingly depend on complex information
technology
and communications systems, which are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result in
financial losses to the Fund and its
shareholders.
Derivatives Risk:
The Fund will be exposed to derivatives risk primarily through its investments
in the underlying funds. Derivative instruments (such as those
in which the underlying funds may invest, including forward currency contracts,
structured notes, futures transactions and swap transactions) are subject
to changes in the value of the underlying assets or indices on which such
instruments are based. There is no guarantee that an underlying fund’s use
of
derivatives will be effective or that suitable transactions will be available.
Even a small investment in derivatives by an underlying fund may give rise to
leverage
risk and can have a significant impact on the underlying fund’s exposure to
securities market values, interest rates or currency exchange rates. It is
possible
that an underlying fund’s liquid assets may be insufficient to support its
obligations under its derivatives positions. The use of derivatives for other
than
hedging purposes may be considered a speculative activity, and involves greater
risks than are involved in hedging. The use of derivatives by an underlying
fund may cause the Fund to incur losses greater than those that would have
occurred had derivatives not been used. An underlying fund’s use of derivatives
involves other risks, such as credit/counterparty risk relating to the other
party to a derivative contract (which is greater for forward currency
contracts,
uncleared swaps and other OTC derivatives), the risk of difficulties in pricing
and valuation, the risk that changes in the value of a derivative may
not
correlate as expected with changes in the value of relevant assets, rates or
indices, liquidity risk, allocation risk and the risk of losing more than any
amounts
paid or margin transferred to initiate derivatives positions. There is also the
risk that an underlying fund may be unable to terminate or sell a derivatives
position at an advantageous time or price. An underlying fund’s derivative
counterparties may experience financial difficulties or otherwise be
unwilling
or unable to honor their obligations, possibly resulting in losses to the
Fund.
Inflation-Protected Securities
Risk:
Inflation-protected securities are subject to the risk that the rate of
inflation will be lower than expected. Inflation-protected
securities are intended to protect against inflation by adjusting the interest
or principal payable on the security by an amount based upon an index
intended
to measure the rate of inflation. There can be no assurance that the relevant
index will accurately measure the rate of inflation, in which case the
securities
may not work as intended.
Interest Rate Risk:
Interest rate risk is the risk that the value of the Fund’s investments will
fall if interest rates rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities
with relatively longer durations than for funds that invest in fixed-income
securities with shorter durations. Duration
is a measure of the expected life
of a fixed-income security that is used to determine the sensitivity of a
security’s price to changes in interest rates. A fund with a longer average
portfolio duration
will be more sensitive to changes in interest rates than a fund with a shorter
average portfolio duration.
The
value of zero-coupon and
pay-in-kind bonds
may be more sensitive to fluctuations in interest rates than other
fixed-income securities.
In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities and reduce the Fund’s
ability to sell them, negatively impacting the performance of the Fund.
Potential
future changes in government and/or central bank monetary policy and action may
also affect the level of interest rates. Recently, there have been inflationary
price movements, which have caused the fixed income securities markets to
experience heightened levels of interest volatility and liquidity risk.
Monetary
policy measures have in the past, and may in the future, exacerbate risks
associated with rising interest
rates.
Investments in Other Investment Companies
Risk:
The Fund will indirectly bear the management, service and other fees of any
other investment companies, including
exchange
traded funds, in which it invests in addition to its own expenses.
The
Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the underlying
funds.
Large Investor Risk:
Ownership of shares of the Fund may be concentrated in one or a few large
investors. Such investors may redeem shares in large quantities
or on a frequent basis. Redemptions by a large investor can affect the
performance of the Fund, may increase realized capital gains, including
short-term
capital gains taxable as ordinary income, may accelerate the realization of
taxable income to shareholders and may increase transaction costs. These
transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such
transactions
may also increase the Fund’s expenses.
Leverage Risk: Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index,
market or asset-price movements into larger changes in value. The use of
leverage increases the impact of gains and losses on the Fund’s returns, and
may
lead to significant losses if investments are not
successful.
Liquidity Risk:
Liquidity risk is the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in the
Fund’s investments or in their capacity or willingness to transact may
increase
the Fund’s exposure to this risk. Events that may lead to increased redemptions,
such as market disruptions or increases in interest rates, may also negatively
impact the liquidity of the Fund’s investments when it needs to dispose of them.
Markets may become illiquid quickly. If the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect the Fund.
During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a private placement, such as Rule
144A securities and
privately negotiated equity and other investments, are generally subject to
significant liquidity risk because they are subject to strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. In other circumstances, liquid investments may become
illiquid. Derivatives, and particularly OTC
derivatives, are generally subject to liquidity risk as well.
Liquidity issues may also make it difficult to value the
Fund’s investments. The Fund may invest in liquid investments that become
illiquid due to financial distress, or geopolitical events such as sanctions,
trading
halts or wars.
Management Risk:
A strategy used by the Fund’s portfolio
managers may fail to produce the intended
result.
Market/Issuer Risk:
The market value of the Fund’s investments will move up and down, sometimes
rapidly and unpredictably, based upon overall market and
economic conditions, as well as a number of reasons that directly relate to the
issuers of the Fund’s investments, such as management performance, financial
condition and demand for the issuers’ goods and services.
Retirement Risk:
The Fund is not a complete retirement program and there is no guarantee that an
investment in the Fund will provide sufficient retirement income
at or through retirement. Although the Fund will become more conservative over
time (meaning that the Fund will allocate more of its assets to
fixed-income
investments than equity investments as it nears the target retirement date), the
Fund will continue to be exposed to market/issuer risk and the share
price
of the Fund will fluctuate, even after the Fund reaches its most conservative
allocation. This means that you could lose money by investing in the Fund,
including
losses near, at, or after the target retirement date. In addition, your risk
tolerance may change over time, including in ways that do not correlate
perfectly
with the Fund’s glide path. Achieving your retirement goals will depend on many
factors, including the amount you save and the period over which you
do so.
Small- and Mid-Capitalization Companies
Risk:
Compared to large-capitalization companies, small- and mid-capitalization
companies are more likely to have
limited product lines, markets or financial resources. Stocks of these companies
often trade less frequently and in limited volume and their prices may
fluctuate
more than stocks of large-capitalization companies. As a result, it may be
relatively more difficult for the Fund to buy and sell securities of small-
and
mid-capitalization companies.
Tracking Error Risk:
Although the Fund does not seek to track any particular index, certain segments
of the Fund are designed to reflect the performance results
and risk characteristics of various indexes. There is a risk that the
performance of a segment will diverge from the performance of its respective
index, potentially
materially.
Risk/Return
Bar Chart and Table
The bar chart and
table shown below provide some indication of the risks of investing in the Fund
by showing changes in the
Fund’s performance from year-to-year and by showing
how the Fund’s average annual returns for the one-year, five-year and
life-of-fund periods compare to those of a broad-based
securities market
index that reflects the performance of the overall market applicable to the Fund
and an additional index that represents the market sectors
in which the Fund primarily
invests. The Fund’s past
performance (before and after taxes) does not necessarily indicate how the Fund
will perform in the future.
Updated performance information is available online at im.natixis.com
and/or by calling the Fund toll-free at 800-225-5478.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been waived or
reimbursed
during the period, total returns would have been
lower.
Total Returns for Class N
Shares
|
| |
|
|
Highest Quarterly
Return:
Second Quarter 2020,
12.20%
Lowest Quarterly
Return:
First Quarter 2020,
-10.93% |
The
Fund’s Class N shares total return
year-to-date as of March 31, 2024 was
3.78%.
|
|
|
| |
|
Average Annual Total
Returns |
|
|
|
|
(for the periods ended
December 31, 2023) |
Past 1 Year |
Past 5 Year |
Life of Fund
(2/28/17) |
|
Return
Before Taxes |
14.09%
|
7.48%
|
6.68%
|
|
Return
After Taxes on Distributions |
13.10%
|
4.61%
|
4.02%
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
8.41%
|
5.04%
|
4.47%
|
|
Bloomberg
U.S. Aggregate Bond Index1 |
5.53%
|
1.10%
|
1.20%
|
|
S&P
Target Date 2020® Index |
12.32%
|
6.47%
|
5.40%
|
| 1 |
Effective June 1, 2024, the Fund’s primary
broad-based performance index changed to the Bloomberg U.S. Aggregate
Bond Index. The Bloomberg U.S. Aggregate Bond Index is a broad-based
securities market index that represents the overall market applicable to
the Fund. The Fund will retain the S&P Target Date
2020® Index as its additional benchmark for performance
comparison.
|
The Fund did not have
Class Y shares outstanding
during the periods shown above. The returns of Class
Y shares would have been substantially similar to the returns
of the Fund’s Class
N shares because they would have been invested in the same portfolio of
securities and would only differ to the extent the Class
N
shares did not have the same
expenses.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns shown are not relevant to investors who
hold their shares
through tax-advantaged arrangements, such as 401(k) plans, qualified plans,
education savings accounts, such as 529 plans, or individual
retirement accounts.
The after-tax returns
are shown for only one class of the Fund. After-tax returns for the other
classes of the Fund will vary.
Index
performance reflects
no deduction for fees, expenses or taxes.
Management
Investment
Adviser
Natixis
Advisors
Portfolio
Managers
The following portfolio managers determine the Fund’s
available underlying funds and separately managed segments, determine the Fund’s
glide path and target allocations and supervise the activities of
the Fund’s subadvisers:
Natixis Advisors
Marina
Gross has served as a co-portfolio manager of the Fund since 2018.
Daniel
Price, CFA®
has served as a co-portfolio manager of the Fund since 2018.
Christopher
Sharpe, CFA®
has served as a
co-portfolio manager of the Fund since 2019 and as lead portfolio manager of the
Fund since 2020.
Purchase
and Sale of Fund Shares
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts (such as wrap
accounts)
where an advisory fee is paid to the broker-dealer or other financial
intermediary. There is no subsequent investment minimum for these shares.
There
is no initial investment minimum for:
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
| • |
Funds of funds
that are distributed by Natixis
Distribution, LLC (the “Distributor”). |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes will
have enough
assets to exceed the investment minimum requirement within a relatively short
period of time following the establishment date of such accounts in Class
N. The Distributor and the Fund, at any time, reserve the right to liquidate
these accounts or any other account that does not meet the eligibility
requirements
of this class.
Class
Y Shares
Class
Y shares are not currently available for purchase.
Class
Y shares of the Fund are generally subject to a minimum initial investment of
$100,000. There is no subsequent investment minimum for these shares.
There
is no minimum initial investment for:
| • |
Fee Based Programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult your financial
representative to determine if your fee based program is subject to
additional or different conditions or
fees. |
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Certain Individual Retirement
Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement plans invested
in the Fund. |
| • |
Clients
of a Registered Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
| • |
Fund Trustees,
former Fund trustees, employees of affiliates of the Natixis Funds and
other individuals who are affiliated with any Natixis Fund (this also
applies
to any spouse, parents, children, siblings, grandparents, grandchildren
and in-laws of those mentioned) and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis
Advisors, clients of Natixis Advisors and its affiliates may purchase Class Y
shares of the Fund below the stated minimums.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and accounts of
registered
investment advisers may be subject to the investment minimums described
above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your investment dealer, directly from the Fund by writing to the
Fund
at Natixis Funds, P.O. Box 219579, Kansas City, MO 64121-9579, by exchange, by
wire, by internet at im.natixis.com (certain restrictions may apply),
through
the Automated Clearing House system, or, in the case of redemptions, by
telephone at 800-225-5478 or by the Systematic Withdrawal
Plan.
Tax
Information
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors that qualify
for
tax-advantaged treatment under U.S. federal income tax law generally.
Investments through such tax-advantaged plans will generally be taxed only upon
withdrawal
of monies from the tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary
for the sale of the Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary
and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Natixis
Sustainable Future 2025 Fund®
Investment
Goal
The
Fund seeks the highest total return consistent with its current asset
allocation.
Fund
Fees & Expenses
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
| |
|
(expenses that you pay each
year as a percentage of the value of your
investment) |
Class N |
Class Y |
|
Management
fees |
0.15%
|
0.15%
|
|
Distribution
and/or service (12b-1) fees |
0.00%
|
0.00%
|
|
Other
expenses |
1.87%
|
1.97%1
|
|
Acquired
fund fees and expenses |
0.27%
|
0.27%
|
|
Total
annual fund operating expenses |
2.29%
|
2.39%
|
|
Fee
waiver and/or expense reimbursement2 |
1.78%
|
1.83%
|
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.51%
|
0.56%
|
| 1 |
Because
Class Y shares of the Fund are not currently available for purchase and do
not have any operating results to report as of the Fund’s fiscal year end,
“Other
expenses” for the class are based on
estimated amounts for the current fiscal
year. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating expenses,
including expenses of the underlying funds in which the Fund invests, to
0.51% and 0.56% of the Fund’s average daily net assets for Class N and Y
shares, respectively,
exclusive of brokerage expenses, interest expense, taxes, organizational
and extraordinary expenses, such as litigation and indemnification
expenses. This undertaking
is in effect through May 31, 2025 and
may be terminated before then only with the consent of the Fund’s Board of
Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below both
(1) the class’ applicable expense
limitation at the time such amounts were waived/reimbursed and (2) the
class’ current applicable expense limitation. The Fund will not be
obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were waived/reimbursed.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that
you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods (except where indicated). The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same except
that the example is
based
on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement assuming
that such waiver and/or reimbursement will only
be in place through the date noted above and on the Total Annual Fund Operating
Expenses for the remaining periods.
The
example does not take into account
brokerage commissions and other fees to financial intermediaries that you may
pay on your purchases and sales of shares of the Fund. Although
your actual
costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
| |
|
|
1 year |
3 years |
5 years |
10 years |
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
Y |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate
higher transaction costs and may result in higher taxes for you if your Fund
shares are held in a taxable account. These costs, which are not reflected
in
annual fund operating expenses or in the example, affect the Fund’s performance.
During
its most recently ended fiscal year, the Fund’s portfolio turnover rate
was 37% of
the average value of its portfolio.
Investments,
Risks and Performance
Principal
Investment Strategies
The
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
The
Fund allocates its assets among investments in segments (or allocable portions
of the Fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, the Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. The Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. The Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after
retirement.
The
Fund follows a “sustainable investing approach” that aims to allocate the Fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with the Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to the Fund’s segments and
underlying funds may consider material ESG factors differently in their
investment processes. For example, there may be differences in how they source
ESG-related research (proprietary versus third party), the extent to
which
they actively engage with company management, and/or their focus on companies
whose products and services are designed to directly address and/or
benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that the Fund’s portfolio may
be better
positioned to deliver financial results over time and manage risks related to
negative outcomes (for example, those related to the physical and regulatory
risks related to climate change, poor human rights practices, or poor corporate
governance). Certain strategies may also seek to exclude specific types
of investments as part of the broader investment
approach.
A
brief description of the principal investment policies of the segments and
underlying funds and asset classes in which the Fund may invest from time to
time
as well as the Fund’s target allocations can be found in the “More About Goals
and Strategies” section of the prospectus. Under normal circumstances,
the
Fund may deviate no more than plus or minus 10% from its target allocations. The
Fund’s Adviser, Natixis Advisors, may modify the selection of segments
and
underlying funds for the Fund from time to time. Natixis Advisors also
determines the Fund’s glide path and target
allocations.
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how the Fund’s asset mix becomes more
conservative
as the target date approaches and passes. This reflects individuals’ expected
need for reduced market risks as retirement approaches and for low
portfolio volatility after retirement. The Fund is a “through” target date fund.
This means that the Fund is expected to reach its final allocations approximately
10 years past its target year.
The
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income
investments, such as government bonds, investment grade corporate notes and
bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. The Fund may invest in securities of any market
capitalization.
The
Fund’s Board of Trustees may approve combining the Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Principal
Investment Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose money by
investing in the
Fund,
including losses near, at, or after the target year. There is no guarantee that
the Fund will provide adequate income at or after the target
year. Because of the Fund’s investments in the underlying funds, the Fund will
be subject to many of the risks below indirectly through its investments
in
the underlying funds rather than directly through investment in the actual
securities themselves.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government agency,
and are subject to investment risks, including possible loss of the principal
invested.
The
significance of any specific risk to an investment in the Fund will vary over
time, depending on the composition of the Fund’s portfolio, market conditions,
and
other factors. You should read all of the risk information presented below
carefully, because any one or more of these risks may result in losses to the
Fund.
Equity Securities Risk:
The value of the Fund’s investments in equity securities could be subject to
unpredictable declines in the value of individual securities
and periods of below-average performance in individual securities or in the
equity market as a whole. Growth
stocks are generally more sensitive to
market movements than other types of stocks primarily because their stock prices
are based heavily on future expectations. If the Adviser’s
or subadviser’s assessment
of the prospects for a company’s growth is wrong, or if the Adviser’s
or subadviser’s judgment of how other investors will value the company’s
growth
is wrong, then the price of the company’s stock may fall or not approach the
value that the Adviser
or subadviser has placed on it.
Value
stocks can perform
differently from the market as a whole and from other types of stocks. Value
stocks also present the risk that their lower valuations fairly reflect their
business
prospects and that investors will not agree that the stocks represent favorable
investment opportunities, and they may fall out of favor with investors
and underperform growth stocks during any given period. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s
bonds generally take precedence over the claims of those who own preferred stock
or common stock. Securities
of real estate-related companies and REITs
in which the Fund may invest may be considered equity securities, thus
subjecting the Fund to the risks of investing in equity securities
generally.
ESG Investing Risk:
The Fund’s ESG investment approach could cause the Fund to perform differently
compared to funds that do not have such an approach or
compared to the market as a whole. The Fund’s application of ESG-related
considerations may affect the Fund’s exposure to certain issuers, industries,
sectors,
style factors or other characteristics and may impact the relative performance
of the Fund—positively or negatively—depending on the relative performance
of such investments. Views
on what constitutes “ESG investing,” and therefore what investments are
appropriate for a fund that has an ESG investment
approach, may differ by fund, adviser and investor. In evaluating an investment,
a portfolio manager may be reliant upon information and data that may
turn out to be incomplete, inaccurate or unavailable, which may negatively
impact the portfolio manager’s assessment of an issuer’s ESG performance or
the
Fund’s performance generally. There is no guarantee that the Adviser’s efforts
to select investments based on ESG practices will be
successful.
Foreign Securities Risk:
Investments in foreign securities may be subject to greater political, economic,
environmental, credit/counterparty and information risks.
The
Fund’s investments in foreign securities also are subject to foreign currency
fluctuations and other foreign currency-related risks. Foreign
securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets Risk:
In addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising
from political or economic instability, war, nationalization or confiscatory
taxation, currency exchange or repatriation restrictions, sanctions by other
countries
(such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments, and an
issuer’s
unwillingness or inability to make dividend, principal or interest payments on
its securities. Emerging markets companies may be smaller and have shorter
operating histories than companies in developed
markets.
Mortgage-Related and Asset-Backed Securities
Risk:
In addition to the risks associated with investments in fixed-income securities
generally (for example,
credit, liquidity, inflation and valuation risk), mortgage-related and
asset-backed securities are subject to the risks of the mortgages and assets
underlying
the securities as well as prepayment risk, the risk that the securities may be
prepaid and result in the reinvestment of the prepaid amounts in securities
with lower yields than the prepaid obligations. Conversely, there is a risk that
a rise in interest rates will extend the life of a mortgage-related or
asset-backed
security beyond the expected prepayment time, typically reducing the security’s
value, which is called extension risk. The Fund also may incur a loss
when there is a prepayment of securities that were purchased at a premium. The
Fund’s investments in other asset-backed securities are subject to risks
similar
to those associated with mortgage-related securities, as well as additional
risks associated with the nature of the assets and the servicing of those
assets.
Allocation Risk: This
is the risk that the Adviser’s judgments about, and allocations between, asset
classes and market exposures may adversely affect the Fund’s
performance.
The
Fund’s investment performance depends, in part, on how its assets are
allocated. The
allocation,
as set forth above, may not be optimal
in every market condition. You could lose money on your investment in the Fund
as a result of this allocation.
Credit/Counterparty Risk:
Credit/counterparty risk is the risk that the issuer or guarantor of a
fixed-income security, or the counterparty to a derivative or other
transaction, will be unable or unwilling to make timely payments of interest or
principal or to otherwise honor its obligations. As a result, the Fund may
sustain
losses or be unable or delayed in its ability to realize gains. The Fund will be
subject to credit/counterparty risk with respect to the counterparties to
its
derivatives transactions. This risk will be heightened to the extent the
Fund enters into derivative transactions with a single counterparty (or
affiliated counterparties
that are part of the same organization), causing the Fund to have significant
exposure to such counterparty. Many of the protections afforded to
participants on organized exchanges and clearing houses, such as the performance
guarantee given by a central clearing house, are not available in connection
with over-the-counter
(“OTC”) derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps,
futures and many options, the primary credit/counterparty risk is the
creditworthiness of the Fund’s clearing broker and the central clearing house
itself.
Currency Risk:
Fluctuations in the exchange rates between different currencies may negatively
affect an investment. The Fund may be subject to currency risk
because it may invest in
currency-related instruments and may invest in securities
or other instruments denominated in, or that generate income denominated
in, foreign currencies. The
Fund may elect not to hedge currency risk, or may hedge such risk imperfectly,
which may cause the Fund to incur losses
that would not have been incurred had the risk been
hedged.
Cybersecurity and Technology Risk:
The Fund, its service providers, and
other market participants increasingly depend on complex information
technology
and communications systems, which are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result in
financial losses to the Fund and its
shareholders.
Derivatives Risk:
The Fund will be exposed to derivatives risk primarily through its investments
in the underlying funds. Derivative instruments (such as those
in which the underlying funds may invest, including forward currency contracts,
structured notes, futures transactions and swap transactions) are subject
to changes in the value of the underlying assets or indices on which such
instruments are based. There is no guarantee that an underlying fund’s use
of
derivatives will be effective or that suitable transactions will be available.
Even a small investment in derivatives by an underlying fund may give rise to
leverage
risk and can have a significant impact on the underlying fund’s exposure to
securities market values, interest rates or currency exchange rates. It is
possible
that an underlying fund’s liquid assets may be insufficient to support its
obligations under its derivatives positions. The use of derivatives for other
than
hedging purposes may be considered a speculative activity, and involves greater
risks than are involved in hedging. The use of derivatives by an underlying
fund may cause the Fund to incur losses greater than those that would have
occurred had derivatives not been used. An underlying fund’s use of derivatives
involves other risks, such as credit/counterparty risk relating to the other
party to a derivative contract (which is greater for forward currency
contracts,
uncleared swaps and other OTC derivatives), the risk of difficulties in pricing
and valuation, the risk that changes in the value of a derivative may
not
correlate as expected with changes in the value of relevant assets, rates or
indices, liquidity risk, allocation risk and the risk of losing more than any
amounts
paid or margin transferred to initiate derivatives positions. There is also the
risk that an underlying fund may be unable to terminate or sell a derivatives
position at an advantageous time or price. An underlying fund’s derivative
counterparties may experience financial difficulties or otherwise be
unwilling
or unable to honor their obligations, possibly resulting in losses to the
Fund.
Inflation-Protected Securities
Risk:
Inflation-protected securities are subject to the risk that the rate of
inflation will be lower than expected. Inflation-protected
securities are intended to protect against inflation by adjusting the interest
or principal payable on the security by an amount based upon an index
intended
to measure the rate of inflation. There can be no assurance that the relevant
index will accurately measure the rate of inflation, in which case the
securities
may not work as intended.
Interest Rate Risk:
Interest rate risk is the risk that the value of the Fund’s investments will
fall if interest rates rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities
with relatively longer durations than for funds that invest in fixed-income
securities with shorter durations. Duration
is a measure of the expected life
of a fixed-income security that is used to determine the sensitivity of a
security’s price to changes in interest rates. A fund with a longer average
portfolio duration
will be more sensitive to changes in interest rates than a fund with a shorter
average portfolio duration.
The
value of zero-coupon and
pay-in-kind bonds
may be more sensitive to fluctuations in interest rates than other
fixed-income securities.
In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities and reduce the Fund’s
ability to sell them, negatively impacting the performance of the Fund.
Potential
future changes in government and/or central bank monetary policy and action may
also affect the level of interest rates. Recently, there have been inflationary
price movements, which have caused the fixed income securities markets to
experience heightened levels of interest volatility and liquidity risk.
Monetary
policy measures have in the past, and may in the future, exacerbate risks
associated with rising interest
rates.
Investments in Other Investment Companies
Risk:
The Fund will indirectly bear the management, service and other fees of any
other investment companies, including
exchange
traded funds, in which it invests in addition to its own expenses.
The
Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the underlying
funds.
Large Investor Risk:
Ownership of shares of the Fund may be concentrated in one or a few large
investors. Such investors may redeem shares in large quantities
or on a frequent basis. Redemptions by a large investor can affect the
performance of the Fund, may increase realized capital gains, including
short-term
capital gains taxable as ordinary income, may accelerate the realization of
taxable income to shareholders and may increase transaction costs. These
transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such
transactions
may also increase the Fund’s expenses.
Leverage Risk: Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index,
market or asset-price movements into larger changes in value. The use of
leverage increases the impact of gains and losses on the Fund’s returns, and
may
lead to significant losses if investments are not
successful.
Liquidity Risk:
Liquidity risk is the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in the
Fund’s investments or in their capacity or willingness to transact may
increase
the Fund’s exposure to this risk. Events that may lead to increased redemptions,
such as market disruptions or increases in interest rates, may also negatively
impact the liquidity of the Fund’s investments when it needs to dispose of them.
Markets may become illiquid quickly. If the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect the Fund.
During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a private placement, such as Rule
144A securities and
privately negotiated equity and other investments, are generally subject to
significant liquidity risk because they are subject to strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. In other circumstances, liquid investments may become
illiquid. Derivatives, and particularly OTC
derivatives, are generally subject to liquidity risk as well.
Liquidity issues may also make it difficult to value the
Fund’s investments. The Fund may invest in liquid investments that become
illiquid due to financial distress, or geopolitical events such as sanctions,
trading
halts or wars.
Management Risk:
A strategy used by the Fund’s portfolio
managers may fail to produce the intended
result.
Market/Issuer Risk:
The market value of the Fund’s investments will move up and down, sometimes
rapidly and unpredictably, based upon overall market and
economic conditions, as well as a number of reasons that directly relate to the
issuers of the Fund’s investments, such as management performance, financial
condition and demand for the issuers’ goods and services.
Retirement Risk:
The Fund is not a complete retirement program and there is no guarantee that an
investment in the Fund will provide sufficient retirement income
at or through retirement. Although the Fund will become more conservative over
time (meaning that the Fund will allocate more of its assets to
fixed-income
investments than equity investments as it nears the target retirement date), the
Fund will continue to be exposed to market/issuer risk and the share
price
of the Fund will fluctuate, even after the Fund reaches its most conservative
allocation. This means that you could lose money by investing in the Fund,
including
losses near, at, or after the target retirement date. In addition, your risk
tolerance may change over time, including in ways that do not correlate
perfectly
with the Fund’s glide path. Achieving your retirement goals will depend on many
factors, including the amount you save and the period over which you
do so.
Small- and Mid-Capitalization Companies
Risk:
Compared to large-capitalization companies, small- and mid-capitalization
companies are more likely to have
limited product lines, markets or financial resources. Stocks of these companies
often trade less frequently and in limited volume and their prices may
fluctuate
more than stocks of large-capitalization companies. As a result, it may be
relatively more difficult for the Fund to buy and sell securities of small-
and
mid-capitalization companies.
Tracking Error Risk:
Although the Fund does not seek to track any particular index, certain segments
of the Fund are designed to reflect the performance results
and risk characteristics of various indexes. There is a risk that the
performance of a segment will diverge from the performance of its respective
index, potentially
materially.
Risk/Return
Bar Chart and Table
The bar chart and
table shown below provide some indication of the risks of investing in the Fund
by showing changes in
the Fund’s performance from year-to-year and by
showing how the Fund’s average annual returns for the one-year, five-year and
life-of-fund periods compare to those of a broad-based
securities market
index that reflects the performance of the overall market applicable to the Fund
and an additional index that represents the market sectors
in which the Fund primarily
invests. The Fund’s past
performance (before and after taxes) does not necessarily indicate how the Fund
will perform in the future.
Updated performance information is available online at im.natixis.com
and/or by calling the Fund toll-free at 800-225-5478.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been waived or
reimbursed
during the period, total returns would have been
lower.
Total Returns for Class N
Shares
|
| |
|
|
Highest Quarterly Return:
Second Quarter
2020,
14.19%
Lowest Quarterly Return:
First Quarter
2020,
-13.58%
|
The Fund’s Class N shares
total return
year-to-date as of March 31, 2024 was
4.55%.
|
|
|
| |
|
Average Annual Total
Returns |
|
|
|
|
(for the periods ended
December 31, 2023) |
Past 1 Year |
Past 5 Year |
Life of Fund
(2/28/17) |
|
Return
Before Taxes |
15.01%
|
7.78%
|
6.98%
|
|
Return
After Taxes on Distributions |
13.92%
|
5.88%
|
5.10%
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
9.03%
|
5.61%
|
4.98%
|
|
S&P
500® Index1 |
26.29%
|
15.69%
|
12.76%
|
|
S&P
Target Date 2025® Index |
12.99%
|
7.42%
|
6.13%
|
| 1 |
Effective June 1, 2024, the Fund’s primary
broad-based performance index changed to the S&P 500® Index. The
S&P 500® Index is a broad-based securities market index that
represents the overall market applicable to the Fund. The Fund will retain the S&P Target Date
2025® Index as its additional benchmark for performance
comparison.
|
The Fund did not have
Class Y shares outstanding
during the periods shown above. The returns of Class
Y shares would have been substantially similar to the returns
of the Fund’s Class
N shares because they would have been invested in the same portfolio of
securities and would only differ to the extent the Class
N
shares did not have the same
expenses.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns shown are not relevant to investors who
hold their shares
through tax-advantaged arrangements, such as 401(k) plans, qualified plans,
education savings accounts, such as 529 plans, or individual
retirement accounts.
The after-tax returns are shown for only one class
of the Fund. After-tax returns for the other classes of the Fund will
vary.
Index
performance reflects
no deduction for fees, expenses or taxes.
Management
Investment
Adviser
Natixis
Advisors
Portfolio
Managers
The following portfolio managers determine the Fund’s
available underlying funds and separately managed segments, determine the Fund’s
glide path and target allocations and supervise the activities of
the Fund’s subadvisers:
Natixis Advisors
Marina
Gross has served as a co-portfolio manager of the Fund since 2018.
Daniel
Price, CFA®
has served as a co-portfolio manager of the Fund since 2018.
Christopher
Sharpe, CFA®
has served as a
co-portfolio manager of the Fund since 2019 and as lead portfolio manager of the
Fund since 2020.
Purchase
and Sale of Fund Shares
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts (such as wrap
accounts)
where an advisory fee is paid to the broker-dealer or other financial
intermediary. There is no subsequent investment minimum for these shares.
There
is no initial investment minimum for:
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
| • |
Funds of funds
that are distributed by Natixis
Distribution, LLC (the “Distributor”). |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes will
have enough
assets to exceed the investment minimum requirement within a relatively short
period of time following the establishment date of such accounts in Class
N. The Distributor and the Fund, at any time, reserve the right to liquidate
these accounts or any other account that does not meet the eligibility
requirements
of this class.
Class
Y Shares
Class
Y shares are not currently available for purchase.
Class
Y shares of the Fund are generally subject to a minimum initial investment of
$100,000. There is no subsequent investment minimum for these shares.
There
is no minimum initial investment for:
| • |
Fee Based Programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult your financial
representative to determine if your fee based program is subject to
additional or different conditions or
fees. |
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Certain Individual Retirement
Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement plans invested
in the Fund. |
| • |
Clients
of a Registered Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
| • |
Fund Trustees,
former Fund trustees, employees of affiliates of the Natixis Funds and
other individuals who are affiliated with any Natixis Fund (this also
applies
to any spouse, parents, children, siblings, grandparents, grandchildren
and in-laws of those mentioned) and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis
Advisors, clients of Natixis Advisors and its affiliates may purchase Class Y
shares of the Fund below the stated minimums.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and accounts of
registered
investment advisers may be subject to the investment minimums described
above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your investment dealer, directly from the Fund by writing to the
Fund
at Natixis Funds, P.O. Box 219579, Kansas City, MO 64121-9579, by exchange, by
wire, by internet at im.natixis.com (certain restrictions may apply),
through
the Automated Clearing House system, or, in the case of redemptions, by
telephone at 800-225-5478 or by the Systematic Withdrawal
Plan.
Tax
Information
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors that qualify
for
tax-advantaged treatment under U.S. federal income tax law generally.
Investments through such tax-advantaged plans will generally be taxed only upon
withdrawal
of monies from the tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary
for the sale of the Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary
and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Natixis
Sustainable Future 2030 Fund®
Investment
Goal
The
Fund seeks the highest total return consistent with its current asset
allocation.
Fund
Fees & Expenses
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
| |
|
(expenses that you pay each
year as a percentage of the value of your
investment) |
Class N |
Class Y |
|
Management
fees |
0.16%
|
0.16%
|
|
Distribution
and/or service (12b-1) fees |
0.00%
|
0.00%
|
|
Other
expenses |
1.13%
|
1.23%1
|
|
Acquired
fund fees and expenses |
0.27%
|
0.27%
|
|
Total
annual fund operating expenses |
1.56%
|
1.66%
|
|
Fee
waiver and/or expense reimbursement2 |
1.04%
|
1.09%
|
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.52%
|
0.57%
|
| 1 |
Because
Class Y shares of the Fund are not currently available for purchase and do
not have any operating results to report as of the Fund’s fiscal year end,
“Other
expenses” for the class are based on
estimated amounts for the current fiscal
year. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating expenses,
including expenses of the underlying funds in which the Fund invests, to
0.52% and 0.57% of the Fund’s average daily net assets for Class N and Y
shares, respectively,
exclusive of brokerage expenses, interest expense, taxes, organizational
and extraordinary expenses, such as litigation and indemnification
expenses. This undertaking
is in effect through May 31, 2025 and
may be terminated before then only with the consent of the Fund’s Board of
Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below both
(1) the class’ applicable expense
limitation at the time such amounts were waived/reimbursed and (2) the
class’ current applicable expense limitation. The Fund will not be
obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were waived/reimbursed.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that
you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods (except where indicated). The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same except
that the example is
based
on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement assuming
that such waiver and/or reimbursement will only
be in place through the date noted above and on the Total Annual Fund Operating
Expenses for the remaining periods.
The
example does not take into account
brokerage commissions and other fees to financial intermediaries that you may
pay on your purchases and sales of shares of the Fund. Although
your actual
costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
| |
|
|
1 year |
3 years |
5 years |
10 years |
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
Y |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate
higher transaction costs and may result in higher taxes for you if your Fund
shares are held in a taxable account. These costs, which are not reflected
in
annual fund operating expenses or in the example, affect the Fund’s performance.
During
its most recently ended fiscal year, the Fund’s portfolio turnover rate
was 30% of
the average value of its portfolio.
Investments,
Risks and Performance
Principal
Investment Strategies
The
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
The
Fund allocates its assets among investments in segments (or allocable portions
of the Fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, the Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. The Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. The Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after
retirement.
The
Fund follows a “sustainable investing approach” that aims to allocate the Fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with the Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to the Fund’s segments and
underlying funds may consider material ESG factors differently in their
investment processes. For example, there may be differences in how they source
ESG-related research (proprietary versus third party), the extent to
which
they actively engage with company management, and/or their focus on companies
whose products and services are designed to directly address and/or
benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that the Fund’s portfolio may
be better
positioned to deliver financial results over time and manage risks related to
negative outcomes (for example, those related to the physical and regulatory
risks related to climate change, poor human rights practices, or poor corporate
governance). Certain strategies may also seek to exclude specific types
of investments as part of the broader investment
approach.
A
brief description of the principal investment policies of the segments and
underlying funds and asset classes in which the Fund may invest from time to
time
as well as the Fund’s target allocations can be found in the “More About Goals
and Strategies” section of the prospectus. Under normal circumstances,
the
Fund may deviate no more than plus or minus 10% from its target allocations. The
Fund’s Adviser, Natixis Advisors, may modify the selection of segments
and
underlying funds for the Fund from time to time. Natixis Advisors also
determines the Fund’s glide path and target
allocations.
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how the Fund’s asset mix becomes more
conservative
as the target date approaches and passes. This reflects individuals’ expected
need for reduced market risks as retirement approaches and for low
portfolio volatility after retirement. The Fund is a “through” target date fund.
This means that the Fund is expected to reach its final allocations approximately
10 years past its target year.
The
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income
investments, such as government bonds, investment grade corporate notes and
bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. The Fund may invest in securities of any market
capitalization.
The
Fund’s Board of Trustees may approve combining the Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Principal
Investment Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose money by
investing in the
Fund,
including losses near, at, or after the target year. There is no guarantee that
the Fund will provide adequate income at or after the target
year. Because of the Fund’s investments in the underlying funds, the Fund will
be subject to many of the risks below indirectly through its investments
in
the underlying funds rather than directly through investment in the actual
securities themselves.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government agency,
and are subject to investment risks, including possible loss of the principal
invested.
The
significance of any specific risk to an investment in the Fund will vary over
time, depending on the composition of the Fund’s portfolio, market conditions,
and
other factors. You should read all of the risk information presented below
carefully, because any one or more of these risks may result in losses to the
Fund.
Equity Securities Risk:
The value of the Fund’s investments in equity securities could be subject to
unpredictable declines in the value of individual securities
and periods of below-average performance in individual securities or in the
equity market as a whole. Growth
stocks are generally more sensitive to
market movements than other types of stocks primarily because their stock prices
are based heavily on future expectations. If the Adviser’s
or subadviser’s assessment
of the prospects for a company’s growth is wrong, or if the Adviser’s
or subadviser’s judgment of how other investors will value the company’s
growth
is wrong, then the price of the company’s stock may fall or not approach the
value that the Adviser
or subadviser has placed on it.
Value
stocks can perform
differently from the market as a whole and from other types of stocks. Value
stocks also present the risk that their lower valuations fairly reflect their
business
prospects and that investors will not agree that the stocks represent favorable
investment opportunities, and they may fall out of favor with investors
and underperform growth stocks during any given period. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s
bonds generally take precedence over the claims of those who own preferred stock
or common stock. Securities
of real estate-related companies and REITs
in which the Fund may invest may be considered equity securities, thus
subjecting the Fund to the risks of investing in equity securities
generally.
ESG Investing Risk:
The Fund’s ESG investment approach could cause the Fund to perform differently
compared to funds that do not have such an approach or
compared to the market as a whole. The Fund’s application of ESG-related
considerations may affect the Fund’s exposure to certain issuers, industries,
sectors,
style factors or other characteristics and may impact the relative performance
of the Fund—positively or negatively—depending on the relative performance
of such investments. Views
on what constitutes “ESG investing,” and therefore what investments are
appropriate for a fund that has an ESG investment
approach, may differ by fund, adviser and investor. In evaluating an investment,
a portfolio manager may be reliant upon information and data that may
turn out to be incomplete, inaccurate or unavailable, which may negatively
impact the portfolio manager’s assessment of an issuer’s ESG performance or
the
Fund’s performance generally. There is no guarantee that the Adviser’s efforts
to select investments based on ESG practices will be
successful.
Foreign Securities Risk:
Investments in foreign securities may be subject to greater political, economic,
environmental, credit/counterparty and information risks.
The
Fund’s investments in foreign securities also are subject to foreign currency
fluctuations and other foreign currency-related risks. Foreign
securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets Risk:
In addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising
from political or economic instability, war, nationalization or confiscatory
taxation, currency exchange or repatriation restrictions, sanctions by other
countries
(such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments, and an
issuer’s
unwillingness or inability to make dividend, principal or interest payments on
its securities. Emerging markets companies may be smaller and have shorter
operating histories than companies in developed
markets.
Mortgage-Related and Asset-Backed Securities
Risk:
In addition to the risks associated with investments in fixed-income securities
generally (for example,
credit, liquidity, inflation and valuation risk), mortgage-related and
asset-backed securities are subject to the risks of the mortgages and assets
underlying
the securities as well as prepayment risk, the risk that the securities may be
prepaid and result in the reinvestment of the prepaid amounts in securities
with lower yields than the prepaid obligations. Conversely, there is a risk that
a rise in interest rates will extend the life of a mortgage-related or
asset-backed
security beyond the expected prepayment time, typically reducing the security’s
value, which is called extension risk. The Fund also may incur a loss
when there is a prepayment of securities that were purchased at a premium. The
Fund’s investments in other asset-backed securities are subject to risks
similar
to those associated with mortgage-related securities, as well as additional
risks associated with the nature of the assets and the servicing of those
assets.
Allocation Risk: This
is the risk that the Adviser’s judgments about, and allocations between, asset
classes and market exposures may adversely affect the Fund’s
performance.
The
Fund’s investment performance depends, in part, on how its assets are
allocated. The
allocation,
as set forth above, may not be optimal
in every market condition. You could lose money on your investment in the Fund
as a result of this allocation.
Credit/Counterparty Risk:
Credit/counterparty risk is the risk that the issuer or guarantor of a
fixed-income security, or the counterparty to a derivative or other
transaction, will be unable or unwilling to make timely payments of interest or
principal or to otherwise honor its obligations. As a result, the Fund may
sustain
losses or be unable or delayed in its ability to realize gains. The Fund will be
subject to credit/counterparty risk with respect to the counterparties to
its
derivatives transactions. This risk will be heightened to the extent the
Fund enters into derivative transactions with a single counterparty (or
affiliated counterparties
that are part of the same organization), causing the Fund to have significant
exposure to such counterparty. Many of the protections afforded to
participants on organized exchanges and clearing houses, such as the performance
guarantee given by a central clearing house, are not available in connection
with over-the-counter
(“OTC”) derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps,
futures and many options, the primary credit/counterparty risk is the
creditworthiness of the Fund’s clearing broker and the central clearing house
itself.
Currency Risk:
Fluctuations in the exchange rates between different currencies may negatively
affect an investment. The Fund may be subject to currency risk
because it may invest in
currency-related instruments and may invest in securities
or other instruments denominated in, or that generate income denominated
in, foreign currencies. The
Fund may elect not to hedge currency risk, or may hedge such risk imperfectly,
which may cause the Fund to incur losses
that would not have been incurred had the risk been
hedged.
Cybersecurity and Technology Risk:
The Fund, its service providers, and
other market participants increasingly depend on complex information
technology
and communications systems, which are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result in
financial losses to the Fund and its
shareholders.
Derivatives Risk:
The Fund will be exposed to derivatives risk primarily through its investments
in the underlying funds. Derivative instruments (such as those
in which the underlying funds may invest, including forward currency contracts,
structured notes, futures transactions and swap transactions) are subject
to changes in the value of the underlying assets or indices on which such
instruments are based. There is no guarantee that an underlying fund’s use
of
derivatives will be effective or that suitable transactions will be available.
Even a small investment in derivatives by an underlying fund may give rise to
leverage
risk and can have a significant impact on the underlying fund’s exposure to
securities market values, interest rates or currency exchange rates. It is
possible
that an underlying fund’s liquid assets may be insufficient to support its
obligations under its derivatives positions. The use of derivatives for other
than
hedging purposes may be considered a speculative activity, and involves greater
risks than are involved in hedging. The use of derivatives by an underlying
fund may cause the Fund to incur losses greater than those that would have
occurred had derivatives not been used. An underlying fund’s use of derivatives
involves other risks, such as credit/counterparty risk relating to the other
party to a derivative contract (which is greater for forward currency
contracts,
uncleared swaps and other OTC derivatives), the risk of difficulties in pricing
and valuation, the risk that changes in the value of a derivative may
not
correlate as expected with changes in the value of relevant assets, rates or
indices, liquidity risk, allocation risk and the risk of losing more than any
amounts
paid or margin transferred to initiate derivatives positions. There is also the
risk that an underlying fund may be unable to terminate or sell a derivatives
position at an advantageous time or price. An underlying fund’s derivative
counterparties may experience financial difficulties or otherwise be
unwilling
or unable to honor their obligations, possibly resulting in losses to the
Fund.
Inflation-Protected Securities
Risk:
Inflation-protected securities are subject to the risk that the rate of
inflation will be lower than expected. Inflation-protected
securities are intended to protect against inflation by adjusting the interest
or principal payable on the security by an amount based upon an index
intended
to measure the rate of inflation. There can be no assurance that the relevant
index will accurately measure the rate of inflation, in which case the
securities
may not work as intended.
Interest Rate Risk:
Interest rate risk is the risk that the value of the Fund’s investments will
fall if interest rates rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities
with relatively longer durations than for funds that invest in fixed-income
securities with shorter durations. Duration
is a measure of the expected life
of a fixed-income security that is used to determine the sensitivity of a
security’s price to changes in interest rates. A fund with a longer average
portfolio duration
will be more sensitive to changes in interest rates than a fund with a shorter
average portfolio duration.
The
value of zero-coupon and
pay-in-kind bonds
may be more sensitive to fluctuations in interest rates than other
fixed-income securities.
In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities and reduce the Fund’s
ability to sell them, negatively impacting the performance of the Fund.
Potential
future changes in government and/or central bank monetary policy and action may
also affect the level of interest rates. Recently, there have been inflationary
price movements, which have caused the fixed income securities markets to
experience heightened levels of interest volatility and liquidity risk.
Monetary
policy measures have in the past, and may in the future, exacerbate risks
associated with rising interest
rates.
Investments in Other Investment Companies
Risk:
The Fund will indirectly bear the management, service and other fees of any
other investment companies, including
exchange
traded funds, in which it invests in addition to its own expenses.
The
Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the underlying
funds.
Large Investor Risk:
Ownership of shares of the Fund may be concentrated in one or a few large
investors. Such investors may redeem shares in large quantities
or on a frequent basis. Redemptions by a large investor can affect the
performance of the Fund, may increase realized capital gains, including
short-term
capital gains taxable as ordinary income, may accelerate the realization of
taxable income to shareholders and may increase transaction costs. These
transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such
transactions
may also increase the Fund’s expenses.
Leverage Risk: Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index,
market or asset-price movements into larger changes in value. The use of
leverage increases the impact of gains and losses on the Fund’s returns, and
may
lead to significant losses if investments are not
successful.
Liquidity Risk:
Liquidity risk is the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in the
Fund’s investments or in their capacity or willingness to transact may
increase
the Fund’s exposure to this risk. Events that may lead to increased redemptions,
such as market disruptions or increases in interest rates, may also negatively
impact the liquidity of the Fund’s investments when it needs to dispose of them.
Markets may become illiquid quickly. If the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect the Fund.
During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a private placement, such as Rule
144A securities and
privately negotiated equity and other investments, are generally subject to
significant liquidity risk because they are subject to strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. In other circumstances, liquid investments may become
illiquid. Derivatives, and particularly OTC
derivatives, are generally subject to liquidity risk as well.
Liquidity issues may also make it difficult to value the
Fund’s investments. The Fund may invest in liquid investments that become
illiquid due to financial distress, or geopolitical events such as sanctions,
trading
halts or wars.
Management Risk:
A strategy used by the Fund’s portfolio
managers may fail to produce the intended result.
Market/Issuer Risk:
The market value of the Fund’s investments will move up and down, sometimes
rapidly and unpredictably, based upon overall market and
economic conditions, as well as a number of reasons that directly relate to the
issuers of the Fund’s investments, such as management performance, financial
condition and demand for the issuers’ goods and services.
Retirement Risk:
The Fund is not a complete retirement program and there is no guarantee that an
investment in the Fund will provide sufficient retirement income
at or through retirement. Although the Fund will become more conservative over
time (meaning that the Fund will allocate more of its assets to
fixed-income
investments than equity investments as it nears the target retirement date), the
Fund will continue to be exposed to market/issuer risk and the share
price
of the Fund will fluctuate, even after the Fund reaches its most conservative
allocation. This means that you could lose money by investing in the Fund,
including
losses near, at, or after the target retirement date. In addition, your risk
tolerance may change over time, including in ways that do not correlate
perfectly
with the Fund’s glide path. Achieving your retirement goals will depend on many
factors, including the amount you save and the period over which you
do so.
Small- and Mid-Capitalization Companies
Risk:
Compared to large-capitalization companies, small- and mid-capitalization
companies are more likely to have
limited product lines, markets or financial resources. Stocks of these companies
often trade less frequently and in limited volume and their prices may
fluctuate
more than stocks of large-capitalization companies. As a result, it may be
relatively more difficult for the Fund to buy and sell securities of small-
and
mid-capitalization companies.
Tracking Error Risk:
Although the Fund does not seek to track any particular index, certain segments
of the Fund are designed to reflect the performance results
and risk characteristics of various indexes. There is a risk that the
performance of a segment will diverge from the performance of its respective
index, potentially
materially.
Risk/Return
Bar Chart and Table
The bar chart and
table shown below provide some indication of the risks of investing in the Fund
by showing changes in
the Fund’s performance from year-to-year and by
showing how the Fund’s average annual returns for the one-year, five-year and
life-of-fund periods compare to those of a broad-based
securities market
index that reflects the performance of the overall market applicable to the Fund
and an additional index that represents the market sectors
in which the Fund primarily
invests. The Fund’s past
performance (before and after taxes) does not necessarily indicate how the Fund
will perform in the future.
Updated performance information is available online at im.natixis.com
and/or by calling the Fund toll-free at 800-225-5478.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been waived or
reimbursed
during the period, total returns would have been
lower.
Total Returns for Class N
Shares
|
| |
|
|
Highest Quarterly Return:
Second Quarter
2020,
14.94%
Lowest Quarterly Return:
First Quarter
2020,
-15.01%
|
The Fund’s Class N shares
total return
year-to-date as of March 31, 2024 was
5.21%.
|
|
|
| |
|
Average Annual Total
Returns |
|
|
|
|
(for the periods ended
December 31, 2023) |
Past 1 Year |
Past 5 Year |
Life of Fund
(2/28/17) |
|
Return
Before Taxes |
16.65%
|
8.92%
|
7.92%
|
|
Return
After Taxes on Distributions |
15.59%
|
7.16%
|
6.17%
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
10.07%
|
6.53%
|
5.76%
|
|
S&P
500® Index1 |
26.29%
|
15.69%
|
12.76%
|
|
S&P
Target Date 2030® Index |
14.80%
|
8.42%
|
6.87%
|
| 1 |
Effective June 1, 2024, the Fund’s primary
broad-based performance index changed to the S&P 500® Index. The
S&P 500® Index is a broad-based securities market index that
represents the overall market applicable to the Fund. The Fund will retain the S&P Target Date
2030® Index as its additional benchmark for performance
comparison.
|
The Fund did not have
Class Y shares outstanding
during the periods shown above. The returns of Class
Y shares would have been substantially similar to the returns
of the Fund’s Class
N shares because they would have been invested in the same portfolio of
securities and would only differ to the extent the Class
N
shares did not have the same
expenses.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns shown are not relevant to investors who
hold their shares
through tax-advantaged arrangements, such as 401(k) plans, qualified plans,
education savings accounts, such as 529 plans, or individual
retirement accounts.
The after-tax returns are shown for only one class
of the Fund. After-tax returns for the other classes of the Fund will
vary.
Index
performance reflects
no deduction for fees, expenses or taxes.
Management
Investment
Adviser
Natixis
Advisors
Portfolio
Managers
The following portfolio managers determine the Fund’s
available underlying funds and separately managed segments, determine the Fund’s
glide path and target allocations and supervise the activities of
the Fund’s subadvisers:
Natixis Advisors
Marina
Gross has served as a co-portfolio manager of the Fund since 2018.
Daniel
Price, CFA®
has served as a co-portfolio manager of the Fund since 2018.
Christopher
Sharpe, CFA®
has served as a
co-portfolio manager of the Fund since 2019 and as lead portfolio manager of the
Fund since 2020.
Purchase
and Sale of Fund Shares
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts (such as wrap
accounts)
where an advisory fee is paid to the broker-dealer or other financial
intermediary. There is no subsequent investment minimum for these shares.
There
is no initial investment minimum for:
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
| • |
Funds of funds
that are distributed by Natixis
Distribution, LLC (the “Distributor”). |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes will
have enough
assets to exceed the investment minimum requirement within a relatively short
period of time following the establishment date of such accounts in Class
N. The Distributor and the Fund, at any time, reserve the right to liquidate
these accounts or any other account that does not meet the eligibility
requirements
of this class.
Class
Y Shares
Class
Y shares are not currently available for purchase.
Class
Y shares of the Fund are generally subject to a minimum initial investment of
$100,000. There is no subsequent investment minimum for these shares.
There
is no minimum initial investment for:
| • |
Fee Based Programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult your financial
representative to determine if your fee based program is subject to
additional or different conditions or
fees. |
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Certain Individual Retirement
Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement plans invested
in the Fund. |
| • |
Clients
of a Registered Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
| • |
Fund Trustees,
former Fund trustees, employees of affiliates of the Natixis Funds and
other individuals who are affiliated with any Natixis Fund (this also
applies
to any spouse, parents, children, siblings, grandparents, grandchildren
and in-laws of those mentioned) and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis
Advisors, clients of Natixis Advisors and its affiliates may purchase Class Y
shares of the Fund below the stated minimums.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and accounts of
registered
investment advisers may be subject to the investment minimums described
above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your investment dealer, directly from the Fund by writing to the
Fund
at Natixis Funds, P.O. Box 219579, Kansas City, MO 64121-9579, by exchange, by
wire, by internet at im.natixis.com (certain restrictions may apply),
through
the Automated Clearing House system, or, in the case of redemptions, by
telephone at 800-225-5478 or by the Systematic Withdrawal
Plan.
Tax
Information
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors that qualify
for
tax-advantaged treatment under U.S. federal income tax law generally.
Investments through such tax-advantaged plans will generally be taxed only upon
withdrawal
of monies from the tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary
for the sale of the Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary
and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Natixis
Sustainable Future 2035 Fund®
Investment
Goal
The
Fund seeks the highest total return consistent with its current asset
allocation.
Fund
Fees & Expenses
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
| |
|
(expenses that you pay each
year as a percentage of the value of your
investment) |
Class N |
Class Y |
|
Management
fees |
0.18%
|
0.18%
|
|
Distribution
and/or service (12b-1) fees |
0.00%
|
0.00%
|
|
Other
expenses |
1.08%
|
1.18%1
|
|
Acquired
fund fees and expenses |
0.26%
|
0.26%
|
|
Total
annual fund operating expenses |
1.52%
|
1.62%
|
|
Fee
waiver and/or expense reimbursement2 |
0.99%
|
1.04%
|
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.53%
|
0.58%
|
| 1 |
Because
Class Y shares of the Fund are not currently available for purchase and do
not have any operating results to report as of the Fund’s fiscal year end,
“Other
expenses” for the class are based on
estimated amounts for the current fiscal
year. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating expenses,
including expenses of the underlying funds in which the Fund invests, to
0.53% and 0.58% of the Fund’s average daily net assets for Class N and Y
shares, respectively,
exclusive of brokerage expenses, interest expense, taxes, organizational
and extraordinary expenses, such as litigation and indemnification
expenses. This undertaking
is in effect through May 31, 2025 and
may be terminated before then only with the consent of the Fund’s Board of
Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below both
(1) the class’ applicable expense
limitation at the time such amounts were waived/reimbursed and (2) the
class’ current applicable expense limitation. The Fund will not be
obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were waived/reimbursed.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that
you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods (except where indicated). The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same except
that the example is
based
on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement assuming
that such waiver and/or reimbursement will only
be in place through the date noted above and on the Total Annual Fund Operating
Expenses for the remaining periods.
The
example does not take into account
brokerage commissions and other fees to financial intermediaries that you may
pay on your purchases and sales of shares of the Fund. Although
your actual
costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
| |
|
|
1 year |
3 years |
5 years |
10 years |
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
Y |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate
higher transaction costs and may result in higher taxes for you if your Fund
shares are held in a taxable account. These costs, which are not reflected
in
annual fund operating expenses or in the example, affect the Fund’s performance.
During
its most recently ended fiscal year, the Fund’s portfolio turnover rate
was 28% of
the average value of its portfolio.
Investments,
Risks and Performance
Principal
Investment Strategies
The
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
The
Fund allocates its assets among investments in segments (or allocable portions
of the Fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, the Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. The Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. The Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after
retirement.
The
Fund follows a “sustainable investing approach” that aims to allocate the Fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with the Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to the Fund’s segments and
underlying funds may consider material ESG factors differently in their
investment processes. For example, there may be differences in how they source
ESG-related research (proprietary versus third party), the extent to
which
they actively engage with company management, and/or their focus on companies
whose products and services are designed to directly address and/or
benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that the Fund’s portfolio may
be better
positioned to deliver financial results over time and manage risks related to
negative outcomes (for example, those related to the physical and regulatory
risks related to climate change, poor human rights practices, or poor corporate
governance). Certain strategies may also seek to exclude specific types
of investments as part of the broader investment
approach.
A
brief description of the principal investment policies of the segments and
underlying funds and asset classes in which the Fund may invest from time to
time
as well as the Fund’s target allocations can be found in the “More About Goals
and Strategies” section of the prospectus. Under normal circumstances,
the
Fund may deviate no more than plus or minus 10% from its target allocations. The
Fund’s Adviser, Natixis Advisors, may modify the selection of segments
and
underlying funds for the Fund from time to time. Natixis Advisors also
determines the Fund’s glide path and target
allocations.
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how the Fund’s asset mix becomes more
conservative
as the target date approaches and passes. This reflects individuals’ expected
need for reduced market risks as retirement approaches and for low
portfolio volatility after retirement. The Fund is a “through” target date fund.
This means that the Fund is expected to reach its final allocations approximately
10 years past its target year.
The
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income
investments, such as government bonds, investment grade corporate notes and
bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. The Fund may invest in securities of any market
capitalization.
The
Fund’s Board of Trustees may approve combining the Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Principal
Investment Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose money by
investing in the
Fund,
including losses near, at, or after the target year. There is no guarantee that
the Fund will provide adequate income at or after the target
year. Because of the Fund’s investments in the underlying funds, the Fund will
be subject to many of the risks below indirectly through its investments
in
the underlying funds rather than directly through investment in the actual
securities themselves.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government agency,
and are subject to investment risks, including possible loss of the principal
invested.
The
significance of any specific risk to an investment in the Fund will vary over
time, depending on the composition of the Fund’s portfolio, market conditions,
and
other factors. You should read all of the risk information presented below
carefully, because any one or more of these risks may result in losses to the
Fund.
Equity Securities Risk:
The value of the Fund’s investments in equity securities could be subject to
unpredictable declines in the value of individual securities
and periods of below-average performance in individual securities or in the
equity market as a whole. Growth
stocks are generally more sensitive to
market movements than other types of stocks primarily because their stock prices
are based heavily on future expectations. If the Adviser’s
or subadviser’s assessment
of the prospects for a company’s growth is wrong, or if the Adviser’s
or subadviser’s judgment of how other investors will value the company’s
growth
is wrong, then the price of the company’s stock may fall or not approach the
value that the Adviser
or subadviser has placed on it.
Value
stocks can perform
differently from the market as a whole and from other types of stocks. Value
stocks also present the risk that their lower valuations fairly reflect their
business
prospects and that investors will not agree that the stocks represent favorable
investment opportunities, and they may fall out of favor with investors
and underperform growth stocks during any given period. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s
bonds generally take precedence over the claims of those who own preferred stock
or common stock. Securities
of real estate-related companies and REITs
in which the Fund may invest may be considered equity securities, thus
subjecting the Fund to the risks of investing in equity securities
generally.
ESG Investing Risk:
The Fund’s ESG investment approach could cause the Fund to perform differently
compared to funds that do not have such an approach or
compared to the market as a whole. The Fund’s application of ESG-related
considerations may affect the Fund’s exposure to certain issuers, industries,
sectors,
style factors or other characteristics and may impact the relative performance
of the Fund—positively or negatively—depending on the relative performance
of such investments. Views
on what constitutes “ESG investing,” and therefore what investments are
appropriate for a fund that has an ESG investment
approach, may differ by fund, adviser and investor. In evaluating an investment,
a portfolio manager may be reliant upon information and data that may
turn out to be incomplete, inaccurate or unavailable, which may negatively
impact the portfolio manager’s assessment of an issuer’s ESG performance or
the
Fund’s performance generally. There is no guarantee that the Adviser’s efforts
to select investments based on ESG practices will be
successful.
Foreign Securities Risk:
Investments in foreign securities may be subject to greater political, economic,
environmental, credit/counterparty and information risks.
The
Fund’s investments in foreign securities also are subject to foreign currency
fluctuations and other foreign currency-related risks. Foreign
securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets Risk:
In addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising
from political or economic instability, war, nationalization or confiscatory
taxation, currency exchange or repatriation restrictions, sanctions by other
countries
(such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments, and an
issuer’s
unwillingness or inability to make dividend, principal or interest payments on
its securities. Emerging markets companies may be smaller and have shorter
operating histories than companies in developed
markets.
Mortgage-Related and Asset-Backed Securities
Risk:
In addition to the risks associated with investments in fixed-income securities
generally (for example,
credit, liquidity, inflation and valuation risk), mortgage-related and
asset-backed securities are subject to the risks of the mortgages and assets
underlying
the securities as well as prepayment risk, the risk that the securities may be
prepaid and result in the reinvestment of the prepaid amounts in securities
with lower yields than the prepaid obligations. Conversely, there is a risk that
a rise in interest rates will extend the life of a mortgage-related or
asset-backed
security beyond the expected prepayment time, typically reducing the security’s
value, which is called extension risk. The Fund also may incur a loss
when there is a prepayment of securities that were purchased at a premium. The
Fund’s investments in other asset-backed securities are subject to risks
similar
to those associated with mortgage-related securities, as well as additional
risks associated with the nature of the assets and the servicing of those
assets.
Allocation Risk: This
is the risk that the Adviser’s judgments about, and allocations between, asset
classes and market exposures may adversely affect the Fund’s
performance.
The
Fund’s investment performance depends, in part, on how its assets are
allocated. The
allocation,
as set forth above, may not be optimal
in every market condition. You could lose money on your investment in the Fund
as a result of this allocation.
Credit/Counterparty Risk:
Credit/counterparty risk is the risk that the issuer or guarantor of a
fixed-income security, or the counterparty to a derivative or other
transaction, will be unable or unwilling to make timely payments of interest or
principal or to otherwise honor its obligations. As a result, the Fund may
sustain
losses or be unable or delayed in its ability to realize gains. The Fund will be
subject to credit/counterparty risk with respect to the counterparties to
its
derivatives transactions. This risk will be heightened to the extent the
Fund enters into derivative transactions with a single counterparty (or
affiliated counterparties
that are part of the same organization), causing the Fund to have significant
exposure to such counterparty. Many of the protections afforded to
participants on organized exchanges and clearing houses, such as the performance
guarantee given by a central clearing house, are not available in connection
with over-the-counter
(“OTC”) derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps,
futures and many options, the primary credit/counterparty risk is the
creditworthiness of the Fund’s clearing broker and the central clearing house
itself.
Currency Risk:
Fluctuations in the exchange rates between different currencies may negatively
affect an investment. The Fund may be subject to currency risk
because it may invest in
currency-related instruments and may invest in securities
or other instruments denominated in, or that generate income denominated
in, foreign currencies. The
Fund may elect not to hedge currency risk, or may hedge such risk imperfectly,
which may cause the Fund to incur losses
that would not have been incurred had the risk been
hedged.
Cybersecurity and Technology Risk:
The Fund, its service providers, and
other market participants increasingly depend on complex information
technology
and communications systems, which are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result in
financial losses to the Fund and its
shareholders.
Derivatives Risk:
The Fund will be exposed to derivatives risk primarily through its investments
in the underlying funds. Derivative instruments (such as those
in which the underlying funds may invest, including forward currency contracts,
structured notes, futures transactions and swap transactions) are subject
to changes in the value of the underlying assets or indices on which such
instruments are based. There is no guarantee that an underlying fund’s use
of
derivatives will be effective or that suitable transactions will be available.
Even a small investment in derivatives by an underlying fund may give rise to
leverage
risk and can have a significant impact on the underlying fund’s exposure to
securities market values, interest rates or currency exchange rates. It is
possible
that an underlying fund’s liquid assets may be insufficient to support its
obligations under its derivatives positions. The use of derivatives for other
than
hedging purposes may be considered a speculative activity, and involves greater
risks than are involved in hedging. The use of derivatives by an underlying
fund may cause the Fund to incur losses greater than those that would have
occurred had derivatives not been used. An underlying fund’s use of derivatives
involves other risks, such as credit/counterparty risk relating to the other
party to a derivative contract (which is greater for forward currency
contracts,
uncleared swaps and other OTC derivatives), the risk of difficulties in pricing
and valuation, the risk that changes in the value of a derivative may
not
correlate as expected with changes in the value of relevant assets, rates or
indices, liquidity risk, allocation risk and the risk of losing more than any
amounts
paid or margin transferred to initiate derivatives positions. There is also the
risk that an underlying fund may be unable to terminate or sell a derivatives
position at an advantageous time or price. An underlying fund’s derivative
counterparties may experience financial difficulties or otherwise be
unwilling
or unable to honor their obligations, possibly resulting in losses to the
Fund.
Inflation-Protected Securities
Risk:
Inflation-protected securities are subject to the risk that the rate of
inflation will be lower than expected. Inflation-protected
securities are intended to protect against inflation by adjusting the interest
or principal payable on the security by an amount based upon an index
intended
to measure the rate of inflation. There can be no assurance that the relevant
index will accurately measure the rate of inflation, in which case the
securities
may not work as intended.
Interest Rate Risk:
Interest rate risk is the risk that the value of the Fund’s investments will
fall if interest rates rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities
with relatively longer durations than for funds that invest in fixed-income
securities with shorter durations. Duration
is a measure of the expected life
of a fixed-income security that is used to determine the sensitivity of a
security’s price to changes in interest rates. A fund with a longer average
portfolio duration
will be more sensitive to changes in interest rates than a fund with a shorter
average portfolio duration.
The
value of zero-coupon and
pay-in-kind bonds
may be more sensitive to fluctuations in interest rates than other
fixed-income securities.
In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities and reduce the Fund’s
ability to sell them, negatively impacting the performance of the Fund.
Potential
future changes in government and/or central bank monetary policy and action may
also affect the level of interest rates. Recently, there have been inflationary
price movements, which have caused the fixed income securities markets to
experience heightened levels of interest volatility and liquidity risk.
Monetary
policy measures have in the past, and may in the future, exacerbate risks
associated with rising interest
rates.
Investments in Other Investment Companies
Risk:
The Fund will indirectly bear the management, service and other fees of any
other investment companies, including
exchange
traded funds, in which it invests in addition to its own expenses.
The
Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the underlying
funds.
Large Investor Risk:
Ownership of shares of the Fund may be concentrated in one or a few large
investors. Such investors may redeem shares in large quantities
or on a frequent basis. Redemptions by a large investor can affect the
performance of the Fund, may increase realized capital gains, including
short-term
capital gains taxable as ordinary income, may accelerate the realization of
taxable income to shareholders and may increase transaction costs. These
transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such
transactions
may also increase the Fund’s expenses.
Leverage Risk: Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index,
market or asset-price movements into larger changes in value. The use of
leverage increases the impact of gains and losses on the Fund’s returns, and
may
lead to significant losses if investments are not
successful.
Liquidity Risk:
Liquidity risk is the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in the
Fund’s investments or in their capacity or willingness to transact may
increase
the Fund’s exposure to this risk. Events that may lead to increased redemptions,
such as market disruptions or increases in interest rates, may also negatively
impact the liquidity of the Fund’s investments when it needs to dispose of them.
Markets may become illiquid quickly. If the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect the Fund.
During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a private placement, such as Rule
144A securities and
privately negotiated equity and other investments, are generally subject to
significant liquidity risk because they are subject to strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. In other circumstances, liquid investments may become
illiquid. Derivatives, and particularly OTC
derivatives, are generally subject to liquidity risk as well.
Liquidity issues may also make it difficult to value the
Fund’s investments. The Fund may invest in liquid investments that become
illiquid due to financial distress, or geopolitical events such as sanctions,
trading
halts or wars.
Management Risk:
A strategy used by the Fund’s portfolio
managers may fail to produce the intended
result.
Market/Issuer Risk:
The market value of the Fund’s investments will move up and down, sometimes
rapidly and unpredictably, based upon overall market and
economic conditions, as well as a number of reasons that directly relate to the
issuers of the Fund’s investments, such as management performance, financial
condition and demand for the issuers’ goods and services.
Retirement Risk:
The Fund is not a complete retirement program and there is no guarantee that an
investment in the Fund will provide sufficient retirement income
at or through retirement. Although the Fund will become more conservative over
time (meaning that the Fund will allocate more of its assets to
fixed-income
investments than equity investments as it nears the target retirement date), the
Fund will continue to be exposed to market/issuer risk and the share
price
of the Fund will fluctuate, even after the Fund reaches its most conservative
allocation. This means that you could lose money by investing in the Fund,
including
losses near, at, or after the target retirement date. In addition, your risk
tolerance may change over time, including in ways that do not correlate
perfectly
with the Fund’s glide path. Achieving your retirement goals will depend on many
factors, including the amount you save and the period over which you
do so.
Small- and Mid-Capitalization Companies
Risk:
Compared to large-capitalization companies, small- and mid-capitalization
companies are more likely to have
limited product lines, markets or financial resources. Stocks of these companies
often trade less frequently and in limited volume and their prices may
fluctuate
more than stocks of large-capitalization companies. As a result, it may be
relatively more difficult for the Fund to buy and sell securities of small-
and
mid-capitalization companies.
Tracking Error Risk:
Although the Fund does not seek to track any particular index, certain segments
of the Fund are designed to reflect the performance results
and risk characteristics of various indexes. There is a risk that the
performance of a segment will diverge from the performance of its respective
index, potentially
materially.
Risk/Return
Bar Chart and Table
The bar chart and
table shown below provide some indication of the risks of investing in the Fund
by showing changes in
the Fund’s performance from year-to-year and by
showing how the Fund’s average annual returns for the one-year, five-year and
life-of-fund periods compare to those of a broad-based
securities market
index that reflects the performance of the overall market applicable to the Fund
and an additional index that represents the market sectors
in which the Fund primarily
invests. The Fund’s past
performance (before and after taxes) does not necessarily indicate how the Fund
will perform in the future.
Updated performance information is available online at im.natixis.com
and/or by calling the Fund toll-free at 800-225-5478.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not waived or reimbursed
during the period, total returns would have been
lower.
Total Returns for Class N
Shares
|
| |
|
|
Highest Quarterly
Return:
Second Quarter 2020,
17.06%
Lowest Quarterly
Return:
First Quarter 2020,
-17.91% |
The
Fund’s Class N shares total return
year-to-date as of March 31, 2024 was
6.15%.
|
|
|
| |
|
Average Annual Total
Returns |
|
|
|
|
(for
the periods ended December 31,
2023) |
Past 1 Year |
Past 5 Year |
Life of Fund
(2/28/17) |
|
Return
Before Taxes |
17.89%
|
9.83%
|
8.67%
|
|
Return
After Taxes on Distributions |
16.34%
|
7.75%
|
6.69%
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
11.11%
|
7.21%
|
6.34%
|
|
S&P 500® Index |
26.29%
|
15.69%
|
12.76%
|
|
S&P
Target Date 2035® Index |
16.63%
|
9.44%
|
7.63%
|
| 1 |
Effective June 1, 2024, the Fund’s primary
broad-based performance index changed to the S&P 500® Index. The
S&P 500® Index is a broad-based securities market index that
represents the overall market applicable to the Fund. The Fund will retain the S&P Target Date
2035® Index as its additional benchmark for performance
comparison.
|
The Fund did not have
Class Y shares outstanding
during the periods shown above. The returns of Class
Y shares would have been substantially similar to the returns
of the Fund’s Class
N shares because they would have been invested in the same portfolio of
securities and would only differ to the extent the Class
N
shares did not have the same
expenses.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns shown are not relevant to investors who
hold their shares
through tax-advantaged arrangements, such as 401(k) plans, qualified plans,
education savings accounts, such as 529 plans, or individual
retirement accounts.
The after-tax returns
are shown for only one class of the Fund. After-tax returns for the other
classes of the Fund will vary.
Index
performance reflects
no deduction for fees, expenses or taxes.
Management
Investment
Adviser
Natixis
Advisors
Portfolio
Managers
The following portfolio managers determine the Fund’s
available underlying funds and separately managed segments, determine the Fund’s
glide path and target allocations and supervise the activities of
the Fund’s subadvisers:
Natixis Advisors
Marina
Gross has served as a co-portfolio manager of the Fund since 2018.
Daniel
Price, CFA®
has served as a co-portfolio manager of the Fund since 2018.
Christopher
Sharpe, CFA®
has served as a
co-portfolio manager of the Fund since 2019 and as lead portfolio manager of the
Fund since 2020.
Purchase
and Sale of Fund Shares
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts (such as wrap
accounts)
where an advisory fee is paid to the broker-dealer or other financial
intermediary. There is no subsequent investment minimum for these shares.
There
is no initial investment minimum for:
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
| • |
Funds of funds
that are distributed by Natixis
Distribution, LLC (the “Distributor”). |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes will
have enough
assets to exceed the investment minimum requirement within a relatively short
period of time following the establishment date of such accounts in Class
N. The Distributor and the Fund, at any time, reserve the right to liquidate
these accounts or any other account that does not meet the eligibility
requirements
of this class.
Class
Y Shares
Class
Y shares are not currently available for purchase.
Class
Y shares of the Fund are generally subject to a minimum initial investment of
$100,000. There is no subsequent investment minimum for these shares.
There
is no minimum initial investment for:
| • |
Fee Based Programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult your financial
representative to determine if your fee based program is subject to
additional or different conditions or
fees. |
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Certain Individual Retirement
Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement plans invested
in the Fund. |
| • |
Clients
of a Registered Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
| • |
Fund Trustees,
former Fund trustees, employees of affiliates of the Natixis Funds and
other individuals who are affiliated with any Natixis Fund (this also
applies
to any spouse, parents, children, siblings, grandparents, grandchildren
and in-laws of those mentioned) and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis
Advisors, clients of Natixis Advisors and its affiliates may purchase Class Y
shares of the Fund below the stated minimums.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and accounts of
registered
investment advisers may be subject to the investment minimums described
above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your investment dealer, directly from the Fund by writing to the
Fund
at Natixis Funds, P.O. Box 219579, Kansas City, MO 64121-9579, by exchange, by
wire, by internet at im.natixis.com (certain restrictions may apply),
through
the Automated Clearing House system, or, in the case of redemptions, by
telephone at 800-225-5478 or by the Systematic Withdrawal
Plan.
Tax
Information
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors that qualify
for
tax-advantaged treatment under U.S. federal income tax law generally.
Investments through such tax-advantaged plans will generally be taxed only upon
withdrawal
of monies from the tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary
for the sale of the Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary
and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Natixis
Sustainable Future 2040 Fund®
Investment
Goal
The
Fund seeks the highest total return consistent with its current asset
allocation.
Fund
Fees & Expenses
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
| |
|
(expenses that you pay
each year as a percentage of the value of your
investment) |
Class N |
Class Y |
|
Management
fees |
0.19%
|
0.19%
|
|
Distribution
and/or service (12b-1) fees |
0.00%
|
0.00%
|
|
Other
expenses |
1.05%
|
1.15%1
|
|
Acquired
fund fees and expenses |
0.26%
|
0.26%
|
|
Total
annual fund operating expenses |
1.50%
|
1.60%
|
|
Fee
waiver and/or expense reimbursement2 |
0.96%
|
1.01%
|
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.54%
|
0.59%
|
| 1 |
Because
Class Y shares of the Fund are not currently available for purchase and do
not have any operating results to report as of the Fund’s fiscal year end,
“Other
expenses” for the class are based on
estimated amounts for the current fiscal
year. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating expenses,
including expenses of the underlying funds in which the Fund invests, to
0.54% and 0.59% of the Fund’s average daily net assets for Class N and Y
shares, respectively,
exclusive of brokerage expenses, interest expense, taxes, organizational
and extraordinary expenses, such as litigation and indemnification
expenses. This undertaking
is in effect through May 31, 2025 and
may be terminated before then only with the consent of the Fund’s Board of
Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below both
(1) the class’ applicable expense
limitation at the time such amounts were waived/reimbursed and (2) the
class’ current applicable expense limitation. The Fund will not be
obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were waived/reimbursed.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that
you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods (except where indicated). The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same except
that the example is
based
on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement assuming
that such waiver and/or reimbursement will only
be in place through the date noted above and on the Total Annual Fund Operating
Expenses for the remaining periods.
The
example does not take into account
brokerage commissions and other fees to financial intermediaries that you may
pay on your purchases and sales of shares of the Fund. Although
your actual
costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
| |
|
|
1 year |
3 years |
5 years |
10 years |
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
Y |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate
higher transaction costs and may result in higher taxes for you if your Fund
shares are held in a taxable account. These costs, which are not reflected
in
annual fund operating expenses or in the example, affect the Fund’s performance.
During
its most recently ended fiscal year, the Fund’s portfolio turnover rate
was 27% of
the average value of its portfolio.
Investments,
Risks and Performance
Principal
Investment Strategies
The
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
The
Fund allocates its assets among investments in segments (or allocable portions
of the Fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, the Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. The Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. The Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after
retirement.
The
Fund follows a “sustainable investing approach” that aims to allocate the Fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with the Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to the Fund’s segments and
underlying funds may consider material ESG factors differently in their
investment processes. For example, there may be differences in how they source
ESG-related research (proprietary versus third party), the extent to
which
they actively engage with company management, and/or their focus on companies
whose products and services are designed to directly address and/or
benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that the Fund’s portfolio may
be better
positioned to deliver financial results over time and manage risks related to
negative outcomes (for example, those related to the physical and regulatory
risks related to climate change, poor human rights practices, or poor corporate
governance). Certain strategies may also seek to exclude specific types
of investments as part of the broader investment
approach.
A
brief description of the principal investment policies of the segments and
underlying funds and asset classes in which the Fund may invest from time to
time
as well as the Fund’s target allocations can be found in the “More About Goals
and Strategies” section of the prospectus. Under normal circumstances,
the
Fund may deviate no more than plus or minus 10% from its target allocations. The
Fund’s Adviser, Natixis Advisors, may modify the selection of segments
and
underlying funds for the Fund from time to time. Natixis Advisors also
determines the Fund’s glide path and target
allocations.
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how the Fund’s asset mix becomes more
conservative
as the target date approaches and passes. This reflects individuals’ expected
need for reduced market risks as retirement approaches and for low
portfolio volatility after retirement. The Fund is a “through” target date fund.
This means that the Fund is expected to reach its final allocations approximately
10 years past its target year.
The
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income
investments, such as government bonds, investment grade corporate notes and
bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. The Fund may invest in securities of any market
capitalization.
The
Fund’s Board of Trustees may approve combining the Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Principal
Investment Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose money by
investing in the
Fund,
including losses near, at, or after the target year. There is no guarantee that
the Fund will provide adequate income at or after the target
year. Because of the Fund’s investments in the underlying funds, the Fund will
be subject to many of the risks below indirectly through its investments
in
the underlying funds rather than directly through investment in the actual
securities themselves.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government agency,
and are subject to investment risks, including possible loss of the principal
invested.
The
significance of any specific risk to an investment in the Fund will vary over
time, depending on the composition of the Fund’s portfolio, market conditions,
and
other factors. You should read all of the risk information presented below
carefully, because any one or more of these risks may result in losses to the
Fund.
Equity Securities Risk:
The value of the Fund’s investments in equity securities could be subject to
unpredictable declines in the value of individual securities
and periods of below-average performance in individual securities or in the
equity market as a whole. Growth
stocks are generally more sensitive to
market movements than other types of stocks primarily because their stock prices
are based heavily on future expectations. If the Adviser’s
or subadviser’s assessment
of the prospects for a company’s growth is wrong, or if the Adviser’s
or subadviser’s judgment of how other investors will value the company’s
growth
is wrong, then the price of the company’s stock may fall or not approach the
value that the Adviser
or subadviser has placed on it.
Value
stocks can perform
differently from the market as a whole and from other types of stocks. Value
stocks also present the risk that their lower valuations fairly reflect their
business
prospects and that investors will not agree that the stocks represent favorable
investment opportunities, and they may fall out of favor with investors
and underperform growth stocks during any given period. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s
bonds generally take precedence over the claims of those who own preferred stock
or common stock. Securities
of real estate-related companies and REITs
in which the Fund may invest may be considered equity securities, thus
subjecting the Fund to the risks of investing in equity securities
generally.
ESG Investing Risk:
The Fund’s ESG investment approach could cause the Fund to perform differently
compared to funds that do not have such an approach or
compared to the market as a whole. The Fund’s application of ESG-related
considerations may affect the Fund’s exposure to certain issuers, industries,
sectors,
style factors or other characteristics and may impact the relative performance
of the Fund—positively or negatively—depending on the relative performance
of such investments. Views
on what constitutes “ESG investing,” and therefore what investments are
appropriate for a fund that has an ESG investment
approach, may differ by fund, adviser and investor. In evaluating an investment,
a portfolio manager may be reliant upon information and data that may
turn out to be incomplete, inaccurate or unavailable, which may negatively
impact the portfolio manager’s assessment of an issuer’s ESG performance or
the
Fund’s performance generally. There is no guarantee that the Adviser’s efforts
to select investments based on ESG practices will be
successful.
Foreign Securities Risk:
Investments in foreign securities may be subject to greater political, economic,
environmental, credit/counterparty and information risks.
The
Fund’s investments in foreign securities also are subject to foreign currency
fluctuations and other foreign currency-related risks. Foreign
securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets Risk:
In addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising
from political or economic instability, war, nationalization or confiscatory
taxation, currency exchange or repatriation restrictions, sanctions by other
countries
(such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments, and an
issuer’s
unwillingness or inability to make dividend, principal or interest payments on
its securities. Emerging markets companies may be smaller and have shorter
operating histories than companies in developed
markets.
Mortgage-Related and Asset-Backed Securities
Risk:
In addition to the risks associated with investments in fixed-income securities
generally (for example,
credit, liquidity, inflation and valuation risk), mortgage-related and
asset-backed securities are subject to the risks of the mortgages and assets
underlying
the securities as well as prepayment risk, the risk that the securities may be
prepaid and result in the reinvestment of the prepaid amounts in securities
with lower yields than the prepaid obligations. Conversely, there is a risk that
a rise in interest rates will extend the life of a mortgage-related or
asset-backed
security beyond the expected prepayment time, typically reducing the security’s
value, which is called extension risk. The Fund also may incur a loss
when there is a prepayment of securities that were purchased at a premium. The
Fund’s investments in other asset-backed securities are subject to risks
similar
to those associated with mortgage-related securities, as well as additional
risks associated with the nature of the assets and the servicing of those
assets.
Allocation Risk: This
is the risk that the Adviser’s judgments about, and allocations between, asset
classes and market exposures may adversely affect the Fund’s
performance.
The
Fund’s investment performance depends, in part, on how its assets are
allocated. The
allocation,
as set forth above, may not be optimal
in every market condition. You could lose money on your investment in the Fund
as a result of this allocation.
Credit/Counterparty Risk:
Credit/counterparty risk is the risk that the issuer or guarantor of a
fixed-income security, or the counterparty to a derivative or other
transaction, will be unable or unwilling to make timely payments of interest or
principal or to otherwise honor its obligations. As a result, the Fund may
sustain
losses or be unable or delayed in its ability to realize gains. The Fund will be
subject to credit/counterparty risk with respect to the counterparties to
its
derivatives transactions. This risk will be heightened to the extent the
Fund enters into derivative transactions with a single counterparty (or
affiliated counterparties
that are part of the same organization), causing the Fund to have significant
exposure to such counterparty. Many of the protections afforded to
participants on organized exchanges and clearing houses, such as the performance
guarantee given by a central clearing house, are not available in connection
with over-the-counter
(“OTC”) derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps,
futures and many options, the primary credit/counterparty risk is the
creditworthiness of the Fund’s clearing broker and the central clearing house
itself.
Currency Risk:
Fluctuations in the exchange rates between different currencies may negatively
affect an investment. The Fund may be subject to currency risk
because it may invest in
currency-related instruments and may invest in securities
or other instruments denominated in, or that generate income denominated
in, foreign currencies. The
Fund may elect not to hedge currency risk, or may hedge such risk imperfectly,
which may cause the Fund to incur losses
that would not have been incurred had the risk been
hedged.
Cybersecurity and Technology Risk:
The Fund, its service providers, and
other market participants increasingly depend on complex information
technology
and communications systems, which are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result in
financial losses to the Fund and its
shareholders.
Derivatives Risk:
The Fund will be exposed to derivatives risk primarily through its investments
in the underlying funds. Derivative instruments (such as those
in which the underlying funds may invest, including forward currency contracts,
structured notes, futures transactions and swap transactions) are subject
to changes in the value of the underlying assets or indices on which such
instruments are based. There is no guarantee that an underlying fund’s use
of
derivatives will be effective or that suitable transactions will be available.
Even a small investment in derivatives by an underlying fund may give rise to
leverage
risk and can have a significant impact on the underlying fund’s exposure to
securities market values, interest rates or currency exchange rates. It is
possible
that an underlying fund’s liquid assets may be insufficient to support its
obligations under its derivatives positions. The use of derivatives for other
than
hedging purposes may be considered a speculative activity, and involves greater
risks than are involved in hedging. The use of derivatives by an underlying
fund may cause the Fund to incur losses greater than those that would have
occurred had derivatives not been used. An underlying fund’s use of derivatives
involves other risks, such as credit/counterparty risk relating to the other
party to a derivative contract (which is greater for forward currency
contracts,
uncleared swaps and other OTC derivatives), the risk of difficulties in pricing
and valuation, the risk that changes in the value of a derivative may
not
correlate as expected with changes in the value of relevant assets, rates or
indices, liquidity risk, allocation risk and the risk of losing more than any
amounts
paid or margin transferred to initiate derivatives positions. There is also the
risk that an underlying fund may be unable to terminate or sell a derivatives
position at an advantageous time or price. An underlying fund’s derivative
counterparties may experience financial difficulties or otherwise be
unwilling
or unable to honor their obligations, possibly resulting in losses to the
Fund.
Inflation-Protected Securities
Risk:
Inflation-protected securities are subject to the risk that the rate of
inflation will be lower than expected. Inflation-protected
securities are intended to protect against inflation by adjusting the interest
or principal payable on the security by an amount based upon an index
intended
to measure the rate of inflation. There can be no assurance that the relevant
index will accurately measure the rate of inflation, in which case the
securities
may not work as intended.
Interest Rate Risk:
Interest rate risk is the risk that the value of the Fund’s investments will
fall if interest rates rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities
with relatively longer durations than for funds that invest in fixed-income
securities with shorter durations. Duration
is a measure of the expected life
of a fixed-income security that is used to determine the sensitivity of a
security’s price to changes in interest rates. A fund with a longer average
portfolio duration
will be more sensitive to changes in interest rates than a fund with a shorter
average portfolio duration.
The
value of zero-coupon and
pay-in-kind bonds
may be more sensitive to fluctuations in interest rates than other
fixed-income securities.
In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities and reduce the Fund’s
ability to sell them, negatively impacting the performance of the Fund.
Potential
future changes in government and/or central bank monetary policy and action may
also affect the level of interest rates. Recently, there have been inflationary
price movements, which have caused the fixed income securities markets to
experience heightened levels of interest volatility and liquidity risk.
Monetary
policy measures have in the past, and may in the future, exacerbate risks
associated with rising interest
rates.
Investments in Other Investment Companies
Risk:
The Fund will indirectly bear the management, service and other fees of any
other investment companies, including
exchange
traded funds, in which it invests in addition to its own expenses.
The
Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the underlying
funds.
Large Investor Risk:
Ownership of shares of the Fund may be concentrated in one or a few large
investors. Such investors may redeem shares in large quantities
or on a frequent basis. Redemptions by a large investor can affect the
performance of the Fund, may increase realized capital gains, including
short-term
capital gains taxable as ordinary income, may accelerate the realization of
taxable income to shareholders and may increase transaction costs. These
transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such
transactions
may also increase the Fund’s expenses.
Leverage Risk: Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index,
market or asset-price movements into larger changes in value. The use of
leverage increases the impact of gains and losses on the Fund’s returns, and
may
lead to significant losses if investments are not
successful.
Liquidity Risk:
Liquidity risk is the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in the
Fund’s investments or in their capacity or willingness to transact may
increase
the Fund’s exposure to this risk. Events that may lead to increased redemptions,
such as market disruptions or increases in interest rates, may also negatively
impact the liquidity of the Fund’s investments when it needs to dispose of them.
Markets may become illiquid quickly. If the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect the Fund.
During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a private placement, such as Rule
144A securities and
privately negotiated equity and other investments, are generally subject to
significant liquidity risk because they are subject to strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. In other circumstances, liquid investments may become
illiquid. Derivatives, and particularly OTC
derivatives, are generally subject to liquidity risk as well.
Liquidity issues may also make it difficult to value the
Fund’s investments. The Fund may invest in liquid investments that become
illiquid due to financial distress, or geopolitical events such as sanctions,
trading
halts or wars.
Management Risk:
A strategy used by the Fund’s portfolio
managers may fail to produce the intended
result.
Market/Issuer Risk:
The market value of the Fund’s investments will move up and down, sometimes
rapidly and unpredictably, based upon overall market and
economic conditions, as well as a number of reasons that directly relate to the
issuers of the Fund’s investments, such as management performance, financial
condition and demand for the issuers’ goods and services.
Retirement Risk:
The Fund is not a complete retirement program and there is no guarantee that an
investment in the Fund will provide sufficient retirement income
at or through retirement. Although the Fund will become more conservative over
time (meaning that the Fund will allocate more of its assets to
fixed-income
investments than equity investments as it nears the target retirement date), the
Fund will continue to be exposed to market/issuer risk and the share
price
of the Fund will fluctuate, even after the Fund reaches its most conservative
allocation. This means that you could lose money by investing in the Fund,
including
losses near, at, or after the target retirement date. In addition, your risk
tolerance may change over time, including in ways that do not correlate
perfectly
with the Fund’s glide path. Achieving your retirement goals will depend on many
factors, including the amount you save and the period over which you
do so.
Small- and Mid-Capitalization Companies
Risk:
Compared to large-capitalization companies, small- and mid-capitalization
companies are more likely to have
limited product lines, markets or financial resources. Stocks of these companies
often trade less frequently and in limited volume and their prices may
fluctuate
more than stocks of large-capitalization companies. As a result, it may be
relatively more difficult for the Fund to buy and sell securities of small-
and
mid-capitalization companies.
Tracking Error Risk:
Although the Fund does not seek to track any particular index, certain segments
of the Fund are designed to reflect the performance results
and risk characteristics of various indexes. There is a risk that the
performance of a segment will diverge from the performance of its respective
index, potentially
materially.
Risk/Return
Bar Chart and Table
The bar chart and
table shown below provide some indication of the risks of investing in the Fund
by showing changes in
the Fund’s performance from year-to-year and by
showing how the Fund’s average annual returns for the one-year, five-year and
life-of-fund periods compare to those of a broad-based
securities market
index that reflects the performance of the overall market applicable to the Fund
and an additional index that represents the market sectors
in which the Fund primarily
invests. The Fund’s past
performance (before and after taxes) does not necessarily indicate how the Fund
will perform in the future.
Updated performance information is available online at im.natixis.com
and/or by calling the Fund toll-free at 800-225-5478.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been waived or
reimbursed
during the period, total returns would have been
lower.
Total Returns for Class N
Shares
|
| |
|
|
Highest Quarterly
Return:
Second Quarter 2020,
18.63%
Lowest Quarterly
Return:
First Quarter 2020,
-19.35% |
The
Fund’s Class N shares total return
year-to-date as of March 31, 2024 was
6.93%.
|
|
|
| |
|
Average Annual Total
Returns |
|
|
|
|
(for the periods ended
December 31, 2023) |
Past 1 Year |
Past 5 Year |
Life of Fund
(2/28/17) |
|
Return
Before Taxes |
19.76%
|
10.48%
|
9.23%
|
|
Return
After Taxes on Distributions |
18.66%
|
8.40%
|
7.20%
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
12.04%
|
7.76%
|
6.80%
|
|
S&P
500® Index1 |
26.29%
|
15.69%
|
12.76%
|
|
S&P
Target Date 2040® Index |
18.16%
|
10.22%
|
8.21%
|
| 1 |
Effective June 1, 2024, the Fund’s primary
broad-based performance index changed to the S&P 500® Index. The
S&P 500® Index is a broad-based securities market index that
represents the overall market applicable to the Fund. The Fund will retain the S&P Target Date
2040® Index as its additional benchmark for performance
comparison.
|
The Fund did not have
Class Y shares outstanding
during the periods shown above. The returns of Class
Y shares would have been substantially similar to the returns
of the Fund’s Class
N shares because they would have been invested in the same portfolio of
securities and would only differ to the extent the Class
N
shares did not have the same
expenses.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns shown are not relevant to investors who
hold their shares
through tax-advantaged arrangements, such as 401(k) plans, qualified plans,
education savings accounts, such as 529 plans, or individual
retirement accounts.
The after-tax returns
are shown for only one class of the Fund. After-tax returns for the other
classes of the Fund will vary.
Index
performance reflects
no deduction for fees, expenses or taxes.
Management
Investment
Adviser
Natixis
Advisors
Portfolio
Managers
The following portfolio managers determine the Fund’s
available underlying funds and separately managed segments, determine the Fund’s
glide path and target allocations and supervise the activities of
the Fund’s subadvisers:
Natixis Advisors
Marina
Gross has served as a co-portfolio manager of the Fund since 2018.
Daniel
Price, CFA®
has served as a co-portfolio manager of the Fund since 2018.
Christopher
Sharpe, CFA®
has served as a
co-portfolio manager of the Fund since 2019 and as lead portfolio manager of the
Fund since 2020.
Purchase
and Sale of Fund Shares
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts (such as wrap
accounts)
where an advisory fee is paid to the broker-dealer or other financial
intermediary. There is no subsequent investment minimum for these shares.
There
is no initial investment minimum for:
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
| • |
Funds of funds
that are distributed by Natixis
Distribution, LLC (the “Distributor”). |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes will
have enough
assets to exceed the investment minimum requirement within a relatively short
period of time following the establishment date of such accounts in Class
N. The Distributor and the Fund, at any time, reserve the right to liquidate
these accounts or any other account that does not meet the eligibility
requirements
of this class.
Class
Y Shares
Class
Y shares are not currently available for purchase.
Class
Y shares of the Fund are generally subject to a minimum initial investment of
$100,000. There is no subsequent investment minimum for these shares.
There
is no minimum initial investment for:
| • |
Fee Based Programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult your financial
representative to determine if your fee based program is subject to
additional or different conditions or
fees. |
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Certain Individual Retirement
Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement plans invested
in the Fund. |
| • |
Clients
of a Registered Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
| • |
Fund Trustees,
former Fund trustees, employees of affiliates of the Natixis Funds and
other individuals who are affiliated with any Natixis Fund (this also
applies
to any spouse, parents, children, siblings, grandparents, grandchildren
and in-laws of those mentioned) and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis
Advisors, clients of Natixis Advisors and its affiliates may purchase Class Y
shares of the Fund below the stated minimums.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and accounts of
registered
investment advisers may be subject to the investment minimums described
above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your investment dealer, directly from the Fund by writing to the
Fund
at Natixis Funds, P.O. Box 219579, Kansas City, MO 64121-9579, by exchange, by
wire, by internet at im.natixis.com (certain restrictions may apply),
through
the Automated Clearing House system, or, in the case of redemptions, by
telephone at 800-225-5478 or by the Systematic Withdrawal
Plan.
Tax
Information
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors that qualify
for
tax-advantaged treatment under U.S. federal income tax law generally.
Investments through such tax-advantaged plans will generally be taxed only upon
withdrawal
of monies from the tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary
for the sale of the Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary
and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Natixis
Sustainable Future 2045 Fund®
Investment
Goal
The
Fund seeks the highest total return consistent with its current asset
allocation.
Fund
Fees & Expenses
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
| |
|
(expenses that you pay
each year as a percentage of the value of your
investment) |
Class N |
Class Y |
|
Management
fees |
0.19%
|
0.19%
|
|
Distribution
and/or service (12b-1) fees |
0.00%
|
0.00%
|
|
Other
expenses |
1.16%
|
1.26%1
|
|
Acquired
fund fees and expenses |
0.28%
|
0.28%
|
|
Total
annual fund operating expenses |
1.63%
|
1.73%
|
|
Fee
waiver and/or expense reimbursement2 |
1.09%
|
1.14%
|
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.54%
|
0.59%
|
| 1 |
Because
Class Y shares of the Fund are not currently available for purchase and do
not have any operating results to report as of the Fund’s fiscal year end,
“Other
expenses” for the class are based on
estimated amounts for the current fiscal
year. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating expenses,
including expenses of the underlying funds in which the Fund invests, to
0.54% and 0.59% of the Fund’s average daily net assets for Class N and Y
shares, respectively,
exclusive of brokerage expenses, interest expense, taxes, organizational
and extraordinary expenses, such as litigation and indemnification
expenses. This undertaking
is in effect through May 31, 2025 and
may be terminated before then only with the consent of the Fund’s Board of
Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below both
(1) the class’ applicable expense
limitation at the time such amounts were waived/reimbursed and (2) the
class’ current applicable expense limitation. The Fund will not be
obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were waived/reimbursed.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that
you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods (except where indicated). The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same except
that the example is
based
on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement assuming
that such waiver and/or reimbursement will only
be in place through the date noted above and on the Total Annual Fund Operating
Expenses for the remaining periods.
The
example does not take into account
brokerage commissions and other fees to financial intermediaries that you may
pay on your purchases and sales of shares of the Fund. Although
your actual
costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
| |
|
|
1 year |
3 years |
5 years |
10 years |
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
Y |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate
higher transaction costs and may result in higher taxes for you if your Fund
shares are held in a taxable account. These costs, which are not reflected
in
annual fund operating expenses or in the example, affect the Fund’s performance.
During
its most recently ended fiscal year, the Fund’s portfolio turnover rate
was 31% of
the average value of its portfolio.
Investments,
Risks and Performance
Principal Investment
Strategies
The
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
The
Fund allocates its assets among investments in segments (or allocable portions
of the Fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, the Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. The Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. The Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after
retirement.
The
Fund follows a “sustainable investing approach” that aims to allocate the Fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with the Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to the Fund’s segments and
underlying funds may consider material ESG factors differently in their
investment processes. For example, there may be differences in how they source
ESG-related research (proprietary versus third party), the extent to
which
they actively engage with company management, and/or their focus on companies
whose products and services are designed to directly address and/or
benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that the Fund’s portfolio may
be better
positioned to deliver financial results over time and manage risks related to
negative outcomes (for example, those related to the physical and regulatory
risks related to climate change, poor human rights practices, or poor corporate
governance). Certain strategies may also seek to exclude specific types
of investments as part of the broader investment
approach.
A
brief description of the principal investment policies of the segments and
underlying funds and asset classes in which the Fund may invest from time to
time
as well as the Fund’s target allocations can be found in the “More About Goals
and Strategies” section of the prospectus. Under normal circumstances,
the
Fund may deviate no more than plus or minus 10% from its target allocations. The
Fund’s Adviser, Natixis Advisors, may modify the selection of segments
and
underlying funds for the Fund from time to time. Natixis Advisors also
determines the Fund’s glide path and target
allocations.
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how the Fund’s asset mix becomes more
conservative
as the target date approaches and passes. This reflects individuals’ expected
need for reduced market risks as retirement approaches and for low
portfolio volatility after retirement. The Fund is a “through” target date fund.
This means that the Fund is expected to reach its final allocations approximately
10 years past its target year.
The
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income
investments, such as government bonds, investment grade corporate notes and
bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. The Fund may invest in securities of any market
capitalization.
The
Fund’s Board of Trustees may approve combining the Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Principal
Investment Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose money by
investing in the
Fund,
including losses near, at, or after the target year. There is no guarantee that
the Fund will provide adequate income at or after the target
year. Because of the Fund’s investments in the underlying funds, the Fund will
be subject to many of the risks below indirectly through its investments
in
the underlying funds rather than directly through investment in the actual
securities themselves.
Fund shares are not
bank deposits and are not guaranteed, endorsed or insured by the Federal Deposit
Insurance Corporation or any other government agency, and are subject to
investment risks, including possible loss of the principal
invested.
The
significance of any specific risk to an investment in the Fund will vary over
time, depending on the composition of the Fund’s portfolio, market conditions,
and
other factors. You should read all of the risk information presented below
carefully, because any one or more of these risks may result in losses to the
Fund.
Equity Securities Risk:
The value of the Fund’s investments in equity securities could be subject to
unpredictable declines in the value of individual securities
and periods of below-average performance in individual securities or in the
equity market as a whole. Growth
stocks are generally more sensitive to
market movements than other types of stocks primarily because their stock prices
are based heavily on future expectations. If the Adviser’s
or subadviser’s assessment
of the prospects for a company’s growth is wrong, or if the Adviser’s
or subadviser’s judgment of how other investors will value the company’s
growth
is wrong, then the price of the company’s stock may fall or not approach the
value that the Adviser
or subadviser has placed on it.
Value
stocks can perform
differently from the market as a whole and from other types of stocks. Value
stocks also present the risk that their lower valuations fairly reflect their
business
prospects and that investors will not agree that the stocks represent favorable
investment opportunities, and they may fall out of favor with investors
and underperform growth stocks during any given period. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s
bonds generally take precedence over the claims of those who own preferred stock
or common stock. Securities
of real estate-related companies and REITs
in which the Fund may invest may be considered equity securities, thus
subjecting the Fund to the risks of investing in equity securities
generally.
ESG Investing Risk:
The Fund’s ESG investment approach could cause the Fund to perform differently
compared to funds that do not have such an approach or
compared to the market as a whole. The Fund’s application of ESG-related
considerations may affect the Fund’s exposure to certain issuers, industries,
sectors,
style factors or other characteristics and may impact the relative performance
of the Fund—positively or negatively—depending on the relative performance
of such investments. Views
on what constitutes “ESG investing,” and therefore what investments are
appropriate for a fund that has an ESG investment
approach, may differ by fund, adviser and investor. In evaluating an investment,
a portfolio manager may be reliant upon information and data that may
turn out to be incomplete, inaccurate or unavailable, which may negatively
impact the portfolio manager’s assessment of an issuer’s ESG performance or
the
Fund’s performance generally. There is no guarantee that the Adviser’s efforts
to select investments based on ESG practices will be
successful.
Foreign Securities Risk:
Investments in foreign securities may be subject to greater political, economic,
environmental, credit/counterparty and information risks.
The
Fund’s investments in foreign securities also are subject to foreign currency
fluctuations and other foreign currency-related risks. Foreign
securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets Risk:
In addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising
from political or economic instability, war, nationalization or confiscatory
taxation, currency exchange or repatriation restrictions, sanctions by other
countries
(such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments, and an
issuer’s
unwillingness or inability to make dividend, principal or interest payments on
its securities. Emerging markets companies may be smaller and have shorter
operating histories than companies in developed
markets.
Mortgage-Related and Asset-Backed Securities
Risk:
In addition to the risks associated with investments in fixed-income securities
generally (for example,
credit, liquidity, inflation and valuation risk), mortgage-related and
asset-backed securities are subject to the risks of the mortgages and assets
underlying
the securities as well as prepayment risk, the risk that the securities may be
prepaid and result in the reinvestment of the prepaid amounts in securities
with lower yields than the prepaid obligations. Conversely, there is a risk that
a rise in interest rates will extend the life of a mortgage-related or
asset-backed
security beyond the expected prepayment time, typically reducing the security’s
value, which is called extension risk. The Fund also may incur a loss
when there is a prepayment of securities that were purchased at a premium. The
Fund’s investments in other asset-backed securities are subject to risks
similar
to those associated with mortgage-related securities, as well as additional
risks associated with the nature of the assets and the servicing of those
assets.
Allocation Risk: This
is the risk that the Adviser’s judgments about, and allocations between, asset
classes and market exposures may adversely affect the Fund’s
performance.
The
Fund’s investment performance depends, in part, on how its assets are
allocated. The
allocation,
as set forth above, may not be optimal
in every market condition. You could lose money on your investment in the Fund
as a result of this allocation.
Credit/Counterparty Risk:
Credit/counterparty risk is the risk that the issuer or guarantor of a
fixed-income security, or the counterparty to a derivative or other
transaction, will be unable or unwilling to make timely payments of interest or
principal or to otherwise honor its obligations. As a result, the Fund may
sustain
losses or be unable or delayed in its ability to realize gains. The Fund will be
subject to credit/counterparty risk with respect to the counterparties to
its
derivatives transactions. This risk will be heightened to the extent the
Fund enters into derivative transactions with a single counterparty (or
affiliated counterparties
that are part of the same organization), causing the Fund to have significant
exposure to such counterparty. Many of the protections afforded to
participants on organized exchanges and clearing houses, such as the performance
guarantee given by a central clearing house, are not available in connection
with over-the-counter
(“OTC”) derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps,
futures and many options, the primary credit/counterparty risk is the
creditworthiness of the Fund’s clearing broker and the central clearing house
itself.
Currency Risk:
Fluctuations in the exchange rates between different currencies may negatively
affect an investment. The Fund may be subject to currency risk
because it may invest in
currency-related instruments and may invest in securities
or other instruments denominated in, or that generate income denominated
in, foreign currencies. The
Fund may elect not to hedge currency risk, or may hedge such risk imperfectly,
which may cause the Fund to incur losses
that would not have been incurred had the risk been
hedged.
Cybersecurity and Technology Risk:
The Fund, its service providers, and
other market participants increasingly depend on complex information
technology
and communications systems, which are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result in
financial losses to the Fund and its
shareholders.
Derivatives Risk:
The Fund will be exposed to derivatives risk primarily through its investments
in the underlying funds. Derivative instruments (such as those
in which the underlying funds may invest, including forward currency contracts,
structured notes, futures transactions and swap transactions) are subject
to changes in the value of the underlying assets or indices on which such
instruments are based. There is no guarantee that an underlying fund’s use
of
derivatives will be effective or that suitable transactions will be available.
Even a small investment in derivatives by an underlying fund may give rise to
leverage
risk and can have a significant impact on the underlying fund’s exposure to
securities market values, interest rates or currency exchange rates. It is
possible
that an underlying fund’s liquid assets may be insufficient to support its
obligations under its derivatives positions. The use of derivatives for other
than
hedging purposes may be considered a speculative activity, and involves greater
risks than are involved in hedging. The use of derivatives by an underlying
fund may cause the Fund to incur losses greater than those that would have
occurred had derivatives not been used. An underlying fund’s use of derivatives
involves other risks, such as credit/counterparty risk relating to the other
party to a derivative contract (which is greater for forward currency
contracts,
uncleared swaps and other OTC derivatives), the risk of difficulties in pricing
and valuation, the risk that changes in the value of a derivative may
not
correlate as expected with changes in the value of relevant assets, rates or
indices, liquidity risk, allocation risk and the risk of losing more than any
amounts
paid or margin transferred to initiate derivatives positions. There is also the
risk that an underlying fund may be unable to terminate or sell a derivatives
position at an advantageous time or price. An underlying fund’s derivative
counterparties may experience financial difficulties or otherwise be
unwilling
or unable to honor their obligations, possibly resulting in losses to the
Fund.
Inflation-Protected Securities
Risk:
Inflation-protected securities are subject to the risk that the rate of
inflation will be lower than expected. Inflation-protected
securities are intended to protect against inflation by adjusting the interest
or principal payable on the security by an amount based upon an index
intended
to measure the rate of inflation. There can be no assurance that the relevant
index will accurately measure the rate of inflation, in which case the
securities
may not work as intended.
Interest Rate Risk:
Interest rate risk is the risk that the value of the Fund’s investments will
fall if interest rates rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities
with relatively longer durations than for funds that invest in fixed-income
securities with shorter durations. Duration
is a measure of the expected life
of a fixed-income security that is used to determine the sensitivity of a
security’s price to changes in interest rates. A fund with a longer average
portfolio duration
will be more sensitive to changes in interest rates than a fund with a shorter
average portfolio duration.
The
value of zero-coupon and
pay-in-kind bonds
may be more sensitive to fluctuations in interest rates than other
fixed-income securities.
In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities and reduce the Fund’s
ability to sell them, negatively impacting the performance of the Fund.
Potential
future changes in government and/or central bank monetary policy and action may
also affect the level of interest rates. Recently, there have been inflationary
price movements, which have caused the fixed income securities markets to
experience heightened levels of interest volatility and liquidity risk.
Monetary
policy measures have in the past, and may in the future, exacerbate risks
associated with rising interest
rates.
Investments in Other Investment Companies
Risk:
The Fund will indirectly bear the management, service and other fees of any
other investment companies, including
exchange
traded funds, in which it invests in addition to its own expenses.
The
Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the underlying
funds.
Large Investor Risk:
Ownership of shares of the Fund may be concentrated in one or a few large
investors. Such investors may redeem shares in large quantities
or on a frequent basis. Redemptions by a large investor can affect the
performance of the Fund, may increase realized capital gains, including
short-term
capital gains taxable as ordinary income, may accelerate the realization of
taxable income to shareholders and may increase transaction costs. These
transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such
transactions
may also increase the Fund’s expenses.
Leverage Risk: Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index,
market or asset-price movements into larger changes in value. The use of
leverage increases the impact of gains and losses on the Fund’s returns, and
may
lead to significant losses if investments are not
successful.
Liquidity Risk:
Liquidity risk is the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in the
Fund’s investments or in their capacity or willingness to transact may
increase
the Fund’s exposure to this risk. Events that may lead to increased redemptions,
such as market disruptions or increases in interest rates, may also negatively
impact the liquidity of the Fund’s investments when it needs to dispose of them.
Markets may become illiquid quickly. If the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect the Fund.
During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a private placement, such as Rule
144A securities and
privately negotiated equity and other investments, are generally subject to
significant liquidity risk because they are subject to strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. In other circumstances, liquid investments may become
illiquid. Derivatives, and particularly OTC
derivatives, are generally subject to liquidity risk as well.
Liquidity issues may also make it difficult to value the
Fund’s investments. The Fund may invest in liquid investments that become
illiquid due to financial distress, or geopolitical events such as sanctions,
trading
halts or wars.
Management Risk:
A strategy used by the Fund’s portfolio
managers may fail to produce the intended
result.
Market/Issuer Risk:
The market value of the Fund’s investments will move up and down, sometimes
rapidly and unpredictably, based upon overall market and
economic conditions, as well as a number of reasons that directly relate to the
issuers of the Fund’s investments, such as management performance, financial
condition and demand for the issuers’ goods and services.
Retirement Risk:
The Fund is not a complete retirement program and there is no guarantee that an
investment in the Fund will provide sufficient retirement income
at or through retirement. Although the Fund will become more conservative over
time (meaning that the Fund will allocate more of its assets to
fixed-income
investments than equity investments as it nears the target retirement date), the
Fund will continue to be exposed to market/issuer risk and the share
price
of the Fund will fluctuate, even after the Fund reaches its most conservative
allocation. This means that you could lose money by investing in the Fund,
including
losses near, at, or after the target retirement date. In addition, your risk
tolerance may change over time, including in ways that do not correlate
perfectly
with the Fund’s glide path. Achieving your retirement goals will depend on many
factors, including the amount you save and the period over which you
do so.
Small- and Mid-Capitalization Companies
Risk:
Compared to large-capitalization companies, small- and mid-capitalization
companies are more likely to have
limited product lines, markets or financial resources. Stocks of these companies
often trade less frequently and in limited volume and their prices may
fluctuate
more than stocks of large-capitalization companies. As a result, it may be
relatively more difficult for the Fund to buy and sell securities of small-
and
mid-capitalization companies.
Tracking Error Risk:
Although the Fund does not seek to track any particular index, certain segments
of the Fund are designed to reflect the performance results
and risk characteristics of various indexes. There is a risk that the
performance of a segment will diverge from the performance of its respective
index, potentially
materially.
Risk/Return
Bar Chart and Table
The bar chart and
table shown below provide some indication of the risks of investing in the Fund
by showing changes in
the Fund’s performance from year-to-year and by
showing how the Fund’s average annual returns for the one-year, five-year and
life-of-fund periods compare to those of a broad-based
securities market
index that reflects the performance of the overall market applicable to the Fund
and an additional index that represents the market sectors
in which the Fund primarily
invests. The Fund’s past
performance (before and after taxes) does not necessarily indicate how the Fund
will perform in the future.
Updated performance information is available online at im.natixis.com
and/or by calling the Fund toll-free at 800-225-5478.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been waived or
reimbursed
during the period, total returns would have been
lower.
Total Returns for Class N
Shares
|
| |
|
|
Highest Quarterly
Return:
Second Quarter
2020,
19.22%
Lowest Quarterly
Return:
First Quarter
2020,
-20.32% |
The Fund’s Class N shares
total return
year-to-date as of March 31, 2024 was
7.50%.
|
|
|
| |
|
Average Annual Total
Returns |
|
|
|
|
(for the periods ended
December 31, 2023) |
Past 1 Year |
Past 5 Year |
Life of Fund
(2/28/17) |
|
Return
Before Taxes |
20.65%
|
11.11%
|
9.70%
|
|
Return
After Taxes on Distributions |
19.27%
|
9.15%
|
7.73%
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
12.75%
|
8.32%
|
7.22%
|
|
S&P
500® Index1 |
26.29%
|
15.69%
|
12.76%
|
|
S&P
Target Date 2045® Index |
19.14%
|
10.68%
|
8.55%
|
| 1 |
Effective June
1, 2024, the Fund’s primary broad-based performance index changed to the
S&P 500® Index. The S&P 500® Index is a broad-based securities
market index that represents the overall market applicable to the Fund.
The Fund will retain the S&P Target Date
2045® Index as its additional benchmark for performance
comparison. |
The Fund did not have
Class Y shares outstanding
during the periods shown above. The returns of Class
Y shares would have been substantially similar to the returns
of the Fund’s Class
N shares because they would have been invested in the same portfolio of
securities and would only differ to the extent the Class
N
shares did not have the same
expenses.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes.Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns shown are not relevant to investors who
hold their shares
through tax-advantaged arrangements, such as 401(k) plans, qualified plans,
education savings accounts, such as 529 plans, or individual
retirement accounts.
The after-tax returns
are shown for only one class of the Fund.
After-tax returns for the other
classes of the Fund will vary.
Index
performance reflects
no deduction for fees, expenses or taxes.
Management
Investment
Adviser
Natixis
Advisors
Portfolio
Managers
The following portfolio managers determine the Fund’s
available underlying funds and separately managed segments, determine the Fund’s
glide path and target allocations and supervise the activities of
the Fund’s subadvisers:
Natixis Advisors
Marina
Gross has served as a co-portfolio manager of the Fund since 2018.
Daniel
Price, CFA®
has served as a co-portfolio manager of the Fund since 2018.
Christopher
Sharpe, CFA®
has served as a
co-portfolio manager of the Fund since 2019 and as lead portfolio manager of the
Fund since 2020.
Purchase
and Sale of Fund Shares
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts (such as wrap
accounts)
where an advisory fee is paid to the broker-dealer or other financial
intermediary. There is no subsequent investment minimum for these shares.
There
is no initial investment minimum for:
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
| • |
Funds of funds
that are distributed by Natixis
Distribution, LLC (the “Distributor”). |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes will
have enough
assets to exceed the investment minimum requirement within a relatively short
period of time following the establishment date of such accounts in Class
N. The Distributor and the Fund, at any time, reserve the right to liquidate
these accounts or any other account that does not meet the eligibility
requirements
of this class.
Class
Y Shares
Class
Y shares are not currently available for purchase.
Class
Y shares of the Fund are generally subject to a minimum initial investment of
$100,000. There is no subsequent investment minimum for these shares.
There
is no minimum initial investment for:
| • |
Fee Based Programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult your financial
representative to determine if your fee based program is subject to
additional or different conditions or
fees. |
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Certain Individual Retirement
Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement plans invested
in the Fund. |
| • |
Clients
of a Registered Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
| • |
Fund Trustees,
former Fund trustees, employees of affiliates of the Natixis Funds and
other individuals who are affiliated with any Natixis Fund (this also
applies
to any spouse, parents, children, siblings, grandparents, grandchildren
and in-laws of those mentioned) and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis
Advisors, clients of Natixis Advisors and its affiliates may purchase Class Y
shares of the Fund below the stated minimums.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and accounts of
registered
investment advisers may be subject to the investment minimums described
above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your investment dealer, directly from the Fund by writing to the
Fund
at Natixis Funds, P.O. Box 219579, Kansas City, MO 64121-9579, by exchange, by
wire, by internet at im.natixis.com (certain restrictions may apply),
through
the Automated Clearing House system, or, in the case of redemptions, by
telephone at 800-225-5478 or by the Systematic Withdrawal
Plan.
Tax
Information
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors that qualify
for
tax-advantaged treatment under U.S. federal income tax law generally.
Investments through such tax-advantaged plans will generally be taxed only upon
withdrawal
of monies from the tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary
for the sale of the Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary
and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Natixis
Sustainable Future 2050 Fund®
Investment
Goal
The
Fund seeks the highest total return consistent with its current asset
allocation.
Fund
Fees & Expenses
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
| |
|
(expenses that you pay
each year as a percentage of the value of your
investment) |
Class N |
Class Y |
|
Management
fees |
0.20%
|
0.20%
|
|
Distribution
and/or service (12b-1) fees |
0.00%
|
0.00%
|
|
Other
expenses |
1.20%
|
1.30%1
|
|
Acquired
fund fees and expenses |
0.27%
|
0.27%
|
|
Total
annual fund operating expenses |
1.67%
|
1.77%
|
|
Fee
waiver and/or expense reimbursement2 |
1.12%
|
1.17%
|
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.55%
|
0.60%
|
| 1 |
Because
Class Y shares of the Fund are not currently available for purchase and do
not have any operating results to report as of the Fund’s fiscal year end,
“Other
expenses” for the class are based on
estimated amounts for the current fiscal
year. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating expenses,
including expenses of the underlying funds in which the Fund invests, to
0.55% and 0.60% of the Fund’s average daily net assets for Class N and Y
shares, respectively,
exclusive of brokerage expenses, interest expense, taxes, organizational
and extraordinary expenses, such as litigation and indemnification
expenses. This undertaking
is in effect through May 31, 2025 and
may be terminated before then only with the consent of the Fund’s Board of
Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below both
(1) the class’ applicable expense
limitation at the time such amounts were waived/reimbursed and (2) the
class’ current applicable expense limitation. The Fund will not be
obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were waived/reimbursed.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that
you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods (except where indicated). The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same except
that the example is
based
on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement assuming
that such waiver and/or reimbursement will only
be in place through the date noted above and on the Total Annual Fund Operating
Expenses for the remaining periods.
The
example does not take into account
brokerage commissions and other fees to financial intermediaries that you may
pay on your purchases and sales of shares of the Fund. Although
your actual
costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
| |
|
|
1 year |
3 years |
5 years |
10 years |
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
Y |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate
higher transaction costs and may result in higher taxes for you if your Fund
shares are held in a taxable account. These costs, which are not reflected
in
annual fund operating expenses or in the example, affect the Fund’s performance.
During
its most recently ended fiscal year, the Fund’s portfolio turnover rate
was 23% of
the average value of its portfolio.
Investments,
Risks and Performance
Principal
Investment Strategies
The
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
The
Fund allocates its assets among investments in segments (or allocable portions
of the Fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, the Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. The Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. The Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after
retirement.
The
Fund follows a “sustainable investing approach” that aims to allocate the Fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with the Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to the Fund’s segments and
underlying funds may consider material ESG factors differently in their
investment processes. For example, there may be differences in how they source
ESG-related research (proprietary versus third party), the extent to
which
they actively engage with company management, and/or their focus on companies
whose products and services are designed to directly address and/or
benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that the Fund’s portfolio may
be better
positioned to deliver financial results over time and manage risks related to
negative outcomes (for example, those related to the physical and regulatory
risks related to climate change, poor human rights practices, or poor corporate
governance). Certain strategies may also seek to exclude specific types
of investments as part of the broader investment
approach.
A
brief description of the principal investment policies of the segments and
underlying funds and asset classes in which the Fund may invest from time to
time
as well as the Fund’s target allocations can be found in the “More About Goals
and Strategies” section of the prospectus. Under normal circumstances,
the
Fund may deviate no more than plus or minus 10% from its target allocations. The
Fund’s Adviser, Natixis Advisors, may modify the selection of segments
and
underlying funds for the Fund from time to time. Natixis Advisors also
determines the Fund’s glide path and target
allocations.
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how the Fund’s asset mix becomes more
conservative
as the target date approaches and passes. This reflects individuals’ expected
need for reduced market risks as retirement approaches and for low
portfolio volatility after retirement. The Fund is a “through” target date fund.
This means that the Fund is expected to reach its final allocations approximately
10 years past its target year.
The
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income
investments, such as government bonds, investment grade corporate notes and
bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. The Fund may invest in securities of any market
capitalization.
The
Fund’s Board of Trustees may approve combining the Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Principal
Investment Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose money by
investing in the
Fund,
including losses near, at, or after the target year. There is no guarantee that
the Fund will provide adequate income at or after the target
year. Because of the Fund’s investments in the underlying funds, the Fund will
be subject to many of the risks below indirectly through its investments
in
the underlying funds rather than directly through investment in the actual
securities themselves.
Fund shares are not
bank deposits and are not guaranteed, endorsed or insured by the Federal Deposit
Insurance Corporation or any other government agency, and are subject to
investment risks, including possible loss of the principal
invested.
The
significance of any specific risk to an investment in the Fund will vary over
time, depending on the composition of the Fund’s portfolio, market conditions,
and
other factors. You should read all of the risk information presented below
carefully, because any one or more of these risks may result in losses to the
Fund.
Equity Securities Risk:
The value of the Fund’s investments in equity securities could be subject to
unpredictable declines in the value of individual securities
and periods of below-average performance in individual securities or in the
equity market as a whole. Growth
stocks are generally more sensitive to
market movements than other types of stocks primarily because their stock prices
are based heavily on future expectations. If the Adviser’s
or subadviser’s assessment
of the prospects for a company’s growth is wrong, or if the Adviser’s
or subadviser’s judgment of how other investors will value the company’s
growth
is wrong, then the price of the company’s stock may fall or not approach the
value that the Adviser
or subadviser has placed on it.
Value
stocks can perform
differently from the market as a whole and from other types of stocks. Value
stocks also present the risk that their lower valuations fairly reflect their
business
prospects and that investors will not agree that the stocks represent favorable
investment opportunities, and they may fall out of favor with investors
and underperform growth stocks during any given period. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s
bonds generally take precedence over the claims of those who own preferred stock
or common stock. Securities
of real estate-related companies and REITs
in which the Fund may invest may be considered equity securities, thus
subjecting the Fund to the risks of investing in equity securities
generally.
ESG Investing Risk:
The Fund’s ESG investment approach could cause the Fund to perform differently
compared to funds that do not have such an approach or
compared to the market as a whole. The Fund’s application of ESG-related
considerations may affect the Fund’s exposure to certain issuers, industries,
sectors,
style factors or other characteristics and may impact the relative performance
of the Fund—positively or negatively—depending on the relative performance
of such investments. Views
on what constitutes “ESG investing,” and therefore what investments are
appropriate for a fund that has an ESG investment
approach, may differ by fund, adviser and investor. In evaluating an investment,
a portfolio manager may be reliant upon information and data that may
turn out to be incomplete, inaccurate or unavailable, which may negatively
impact the portfolio manager’s assessment of an issuer’s ESG performance or
the
Fund’s performance generally. There is no guarantee that the Adviser’s efforts
to select investments based on ESG practices will be
successful.
Foreign Securities Risk:
Investments in foreign securities may be subject to greater political, economic,
environmental, credit/counterparty and information risks.
The
Fund’s investments in foreign securities also are subject to foreign currency
fluctuations and other foreign currency-related risks. Foreign
securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets Risk:
In addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising
from political or economic instability, war, nationalization or confiscatory
taxation, currency exchange or repatriation restrictions, sanctions by other
countries
(such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments, and an
issuer’s
unwillingness or inability to make dividend, principal or interest payments on
its securities. Emerging markets companies may be smaller and have shorter
operating histories than companies in developed
markets.
Mortgage-Related and Asset-Backed Securities
Risk:
In addition to the risks associated with investments in fixed-income securities
generally (for example,
credit, liquidity, inflation and valuation risk), mortgage-related and
asset-backed securities are subject to the risks of the mortgages and assets
underlying
the securities as well as prepayment risk, the risk that the securities may be
prepaid and result in the reinvestment of the prepaid amounts in securities
with lower yields than the prepaid obligations. Conversely, there is a risk that
a rise in interest rates will extend the life of a mortgage-related or
asset-backed
security beyond the expected prepayment time, typically reducing the security’s
value, which is called extension risk. The Fund also may incur a loss
when there is a prepayment of securities that were purchased at a premium. The
Fund’s investments in other asset-backed securities are subject to risks
similar
to those associated with mortgage-related securities, as well as additional
risks associated with the nature of the assets and the servicing of those
assets.
Allocation Risk: This
is the risk that the Adviser’s judgments about, and allocations between, asset
classes and market exposures may adversely affect the Fund’s
performance.
The
Fund’s investment performance depends, in part, on how its assets are
allocated. The
allocation,
as set forth above, may not be optimal
in every market condition. You could lose money on your investment in the Fund
as a result of this allocation.
Credit/Counterparty Risk:
Credit/counterparty risk is the risk that the issuer or guarantor of a
fixed-income security, or the counterparty to a derivative or other
transaction, will be unable or unwilling to make timely payments of interest or
principal or to otherwise honor its obligations. As a result, the Fund may
sustain
losses or be unable or delayed in its ability to realize gains. The Fund will be
subject to credit/counterparty risk with respect to the counterparties to
its
derivatives transactions. This risk will be heightened to the extent the
Fund enters into derivative transactions with a single counterparty (or
affiliated counterparties
that are part of the same organization), causing the Fund to have significant
exposure to such counterparty. Many of the protections afforded to
participants on organized exchanges and clearing houses, such as the performance
guarantee given by a central clearing house, are not available in connection
with over-the-counter
(“OTC”) derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps,
futures and many options, the primary credit/counterparty risk is the
creditworthiness of the Fund’s clearing broker and the central clearing house
itself.
Currency Risk:
Fluctuations in the exchange rates between different currencies may negatively
affect an investment. The Fund may be subject to currency risk
because it may invest in
currency-related instruments and may invest in securities
or other instruments denominated in, or that generate income denominated
in, foreign currencies. The
Fund may elect not to hedge currency risk, or may hedge such risk imperfectly,
which may cause the Fund to incur losses
that would not have been incurred had the risk been
hedged.
Cybersecurity and Technology Risk:
The Fund, its service providers, and
other market participants increasingly depend on complex information
technology
and communications systems, which are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result in
financial losses to the Fund and its
shareholders.
Derivatives Risk:
The Fund will be exposed to derivatives risk primarily through its investments
in the underlying funds. Derivative instruments (such as those
in which the underlying funds may invest, including forward currency contracts,
structured notes, futures transactions and swap transactions) are subject
to changes in the value of the underlying assets or indices on which such
instruments are based. There is no guarantee that an underlying fund’s use
of
derivatives will be effective or that suitable transactions will be available.
Even a small investment in derivatives by an underlying fund may give rise to
leverage
risk and can have a significant impact on the underlying fund’s exposure to
securities market values, interest rates or currency exchange rates. It is
possible
that an underlying fund’s liquid assets may be insufficient to support its
obligations under its derivatives positions. The use of derivatives for other
than
hedging purposes may be considered a speculative activity, and involves greater
risks than are involved in hedging. The use of derivatives by an underlying
fund may cause the Fund to incur losses greater than those that would have
occurred had derivatives not been used. An underlying fund’s use of derivatives
involves other risks, such as credit/counterparty risk relating to the other
party to a derivative contract (which is greater for forward currency
contracts,
uncleared swaps and other OTC derivatives), the risk of difficulties in pricing
and valuation, the risk that changes in the value of a derivative may
not
correlate as expected with changes in the value of relevant assets, rates or
indices, liquidity risk, allocation risk and the risk of losing more than any
amounts
paid or margin transferred to initiate derivatives positions. There is also the
risk that an underlying fund may be unable to terminate or sell a derivatives
position at an advantageous time or price. An underlying fund’s derivative
counterparties may experience financial difficulties or otherwise be
unwilling
or unable to honor their obligations, possibly resulting in losses to the
Fund.
Inflation-Protected Securities
Risk:
Inflation-protected securities are subject to the risk that the rate of
inflation will be lower than expected. Inflation-protected
securities are intended to protect against inflation by adjusting the interest
or principal payable on the security by an amount based upon an index
intended
to measure the rate of inflation. There can be no assurance that the relevant
index will accurately measure the rate of inflation, in which case the
securities
may not work as intended.
Interest Rate Risk:
Interest rate risk is the risk that the value of the Fund’s investments will
fall if interest rates rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities
with relatively longer durations than for funds that invest in fixed-income
securities with shorter durations. Duration
is a measure of the expected life
of a fixed-income security that is used to determine the sensitivity of a
security’s price to changes in interest rates. A fund with a longer average
portfolio duration
will be more sensitive to changes in interest rates than a fund with a shorter
average portfolio duration.
The
value of zero-coupon and
pay-in-kind bonds
may be more sensitive to fluctuations in interest rates than other
fixed-income securities.
In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities and reduce the Fund’s
ability to sell them, negatively impacting the performance of the Fund.
Potential
future changes in government and/or central bank monetary policy and action may
also affect the level of interest rates. Recently, there have been inflationary
price movements, which have caused the fixed income securities markets to
experience heightened levels of interest volatility and liquidity risk.
Monetary
policy measures have in the past, and may in the future, exacerbate risks
associated with rising interest
rates.
Investments in Other Investment Companies
Risk:
The Fund will indirectly bear the management, service and other fees of any
other investment companies, including
exchange
traded funds, in which it invests in addition to its own expenses.
The
Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the underlying
funds.
Large Investor Risk:
Ownership of shares of the Fund may be concentrated in one or a few large
investors. Such investors may redeem shares in large quantities
or on a frequent basis. Redemptions by a large investor can affect the
performance of the Fund, may increase realized capital gains, including
short-term
capital gains taxable as ordinary income, may accelerate the realization of
taxable income to shareholders and may increase transaction costs. These
transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such
transactions
may also increase the Fund’s expenses.
Leverage Risk: Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index,
market or asset-price movements into larger changes in value. The use of
leverage increases the impact of gains and losses on the Fund’s returns, and
may
lead to significant losses if investments are not
successful.
Liquidity Risk:
Liquidity risk is the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in the
Fund’s investments or in their capacity or willingness to transact may
increase
the Fund’s exposure to this risk. Events that may lead to increased redemptions,
such as market disruptions or increases in interest rates, may also negatively
impact the liquidity of the Fund’s investments when it needs to dispose of them.
Markets may become illiquid quickly. If the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect the Fund.
During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a private placement, such as Rule
144A securities and
privately negotiated equity and other investments, are generally subject to
significant liquidity risk because they are subject to strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. In other circumstances, liquid investments may become
illiquid. Derivatives, and particularly OTC
derivatives, are generally subject to liquidity risk as well.
Liquidity issues may also make it difficult to value the
Fund’s investments. The Fund may invest in liquid investments that become
illiquid due to financial distress, or geopolitical events such as sanctions,
trading
halts or wars.
Management Risk:
A strategy used by the Fund’s portfolio
managers may fail to produce the intended
result.
Market/Issuer Risk:
The market value of the Fund’s investments will move up and down, sometimes
rapidly and unpredictably, based upon overall market and
economic conditions, as well as a number of reasons that directly relate to the
issuers of the Fund’s investments, such as management performance, financial
condition and demand for the issuers’ goods and services.
Retirement Risk:
The Fund is not a complete retirement program and there is no guarantee that an
investment in the Fund will provide sufficient retirement income
at or through retirement. Although the Fund will become more conservative over
time (meaning that the Fund will allocate more of its assets to
fixed-income
investments than equity investments as it nears the target retirement date), the
Fund will continue to be exposed to market/issuer risk and the share
price
of the Fund will fluctuate, even after the Fund reaches its most conservative
allocation. This means that you could lose money by investing in the Fund,
including
losses near, at, or after the target retirement date. In addition, your risk
tolerance may change over time, including in ways that do not correlate
perfectly
with the Fund’s glide path. Achieving your retirement goals will depend on many
factors, including the amount you save and the period over which you
do so.
Small- and Mid-Capitalization Companies
Risk:
Compared to large-capitalization companies, small- and mid-capitalization
companies are more likely to have
limited product lines, markets or financial resources. Stocks of these companies
often trade less frequently and in limited volume and their prices may
fluctuate
more than stocks of large-capitalization companies. As a result, it may be
relatively more difficult for the Fund to buy and sell securities of small-
and
mid-capitalization companies.
Tracking Error Risk:
Although the Fund does not seek to track any particular index, certain segments
of the Fund are designed to reflect the performance results
and risk characteristics of various indexes. There is a risk that the
performance of a segment will diverge from the performance of its respective
index, potentially
materially.
Risk/Return
Bar Chart and Table
The bar chart and
table shown below provide some indication of the risks of investing in the Fund
by showing changes in
the Fund’s performance from year-to-year and by
showing how the Fund’s average annual returns for the one-year, five-year and
life-of-fund periods compare to those of a broad-based
securities market
index that reflects the performance of the overall market applicable to the Fund
and an additional index that represents the market sectors
in which the Fund primarily
invests. The Fund’s past
performance (before and after taxes) does not necessarily indicate how the Fund
will perform in the future.
Updated performance information is available online at im.natixis.com
and/or by calling the Fund toll-free at 800-225-5478.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been waived or
reimbursed
during the period, total returns would have been
lower.
Total Returns for Class N
Shares
|
| |
|
|
Highest Quarterly
Return:
Second Quarter
2020,
19.95%
Lowest Quarterly
Return:
First Quarter
2020,
-20.86% |
The Fund’s Class N shares
total return
year-to-date as of March 31, 2024 was
7.83%.
|
|
|
| |
|
Average Annual Total
Returns |
|
|
|
|
(for the periods ended
December 31, 2023) |
Past 1 Year |
Past 5 Year |
Life of Fund
(2/28/17) |
|
Return
Before Taxes |
21.31%
|
11.13%
|
9.79%
|
|
Return
After Taxes on Distributions |
20.14%
|
9.04%
|
7.73%
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
13.07%
|
8.26%
|
7.24%
|
|
S&P
500® Index1 |
26.29%
|
15.69%
|
12.76%
|
|
S&P
Target Date 2050® Index |
19.58%
|
10.92%
|
8.74%
|
| 1 |
Effective June
1, 2024, the Fund’s primary broad-based performance index changed to the
S&P 500® Index. The S&P 500® Index is a broad-based securities
market index that represents the overall market applicable to the Fund.
The Fund will retain the S&P Target Date
2050® Index as its additional benchmark for performance
comparison.
|
The Fund did not have
Class Y shares outstanding
during the periods shown above. The returns of Class
Y shares would have been substantially similar to the returns
of the Fund’s Class
N shares because they would have been invested in the same portfolio of
securities and would only differ to the extent the Class
N
shares did not have the same
expenses.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns shown are not
relevant to investors who hold their shares through tax-advantaged arrangements,
such as 401(k) plans, qualified plans, education savings accounts, such as 529
plans, or individual retirement accounts. The after-tax returns are shown for only one class
of the Fund. After-tax returns for the other classes of the Fund will
vary. Index performance reflects no deduction for fees,
expenses or taxes.
Management
Investment
Adviser
Natixis
Advisors
Portfolio
Managers
The following portfolio managers determine the Fund’s
available underlying funds and separately managed segments, determine the Fund’s
glide path and target allocations and supervise the activities of
the Fund’s subadvisers:
Natixis Advisors
Marina
Gross has served as a co-portfolio manager of the Fund since 2018.
Daniel
Price, CFA®
has served as a co-portfolio manager of the Fund since 2018.
Christopher
Sharpe, CFA®
has served as a
co-portfolio manager of the Fund since 2019 and as lead portfolio manager of the
Fund since 2020.
Purchase
and Sale of Fund Shares
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts (such as wrap
accounts)
where an advisory fee is paid to the broker-dealer or other financial
intermediary. There is no subsequent investment minimum for these shares.
There
is no initial investment minimum for:
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
| • |
Funds of funds
that are distributed by Natixis
Distribution, LLC (the “Distributor”). |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes will
have enough
assets to exceed the investment minimum requirement within a relatively short
period of time following the establishment date of such accounts in Class
N. The Distributor and the Fund, at any time, reserve the right to liquidate
these accounts or any other account that does not meet the eligibility
requirements
of this class.
Class
Y Shares
Class
Y shares are not currently available for purchase.
Class
Y shares of the Fund are generally subject to a minimum initial investment of
$100,000. There is no subsequent investment minimum for these shares.
There
is no minimum initial investment for:
| • |
Fee Based Programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult your financial
representative to determine if your fee based program is subject to
additional or different conditions or
fees. |
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Certain Individual Retirement
Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement plans invested
in the Fund. |
| • |
Clients
of a Registered Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
| • |
Fund Trustees,
former Fund trustees, employees of affiliates of the Natixis Funds and
other individuals who are affiliated with any Natixis Fund (this also
applies
to any spouse, parents, children, siblings, grandparents, grandchildren
and in-laws of those mentioned) and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis
Advisors, clients of Natixis Advisors and its affiliates may purchase Class Y
shares of the Fund below the stated minimums.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and accounts of
registered
investment advisers may be subject to the investment minimums described
above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your investment dealer, directly from the Fund by writing to the
Fund
at Natixis Funds, P.O. Box 219579, Kansas City, MO 64121-9579, by exchange, by
wire, by internet at im.natixis.com (certain restrictions may apply),
through
the Automated Clearing House system, or, in the case of redemptions, by
telephone at 800-225-5478 or by the Systematic Withdrawal
Plan.
Tax
Information
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors that qualify
for
tax-advantaged treatment under U.S. federal income tax law generally.
Investments through such tax-advantaged plans will generally be taxed only upon
withdrawal
of monies from the tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary
for the sale of the Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary
and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Natixis
Sustainable Future 2055 Fund®
Investment
Goal
The
Fund seeks the highest total return consistent with its current asset
allocation.
Fund
Fees & Expenses
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
| |
|
(expenses that you pay
each year as a percentage of the value of your
investment) |
Class N |
Class Y |
|
Management
fees |
0.21%
|
0.21%
|
|
Distribution
and/or service (12b-1) fees |
0.00%
|
0.00%
|
|
Other
expenses |
1.41%
|
1.51%1
|
|
Acquired
fund fees and expenses |
0.28%
|
0.28%
|
|
Total
annual fund operating expenses |
1.90%
|
2.00%
|
|
Fee
waiver and/or expense reimbursement2 |
1.35%
|
1.40%
|
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.55%
|
0.60%
|
| 1 |
Because
Class Y shares of the Fund are not currently available for purchase and do
not have any operating results to report as of the Fund’s fiscal year end,
“Other
expenses” for the class are based on
estimated amounts for the current fiscal
year. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating expenses,
including expenses of the underlying funds in which the Fund invests, to
0.55% and 0.60% of the Fund’s average daily net assets for Class N and Y
shares, respectively,
exclusive of brokerage expenses, interest expense, taxes, organizational
and extraordinary expenses, such as litigation and indemnification
expenses. This undertaking
is in effect through May 31, 2025 and
may be terminated before then only with the consent of the Fund’s Board of
Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below both
(1) the class’ applicable expense
limitation at the time such amounts were waived/reimbursed and (2) the
class’ current applicable expense limitation. The Fund will not be
obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were waived/reimbursed.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that
you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods (except where indicated). The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same except
that the example is
based
on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement assuming
that such waiver and/or reimbursement will only
be in place through the date noted above and on the Total Annual Fund Operating
Expenses for the remaining periods.
The
example does not take into account
brokerage commissions and other fees to financial intermediaries that you may
pay on your purchases and sales of shares of the Fund. Although
your actual
costs may be higher or lower, based on these assumptions your costs would
be:
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1 year |
3 years |
5 years |
10 years |
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Class
N |
$ |
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$ |
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$ |
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$ |
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Class
Y |
$ |
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$ |
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$ |
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$ |
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Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate
higher transaction costs and may result in higher taxes for you if your Fund
shares are held in a taxable account. These costs, which are not reflected
in
annual fund operating expenses or in the example, affect the Fund’s performance.
During
its most recently ended fiscal year, the Fund’s portfolio turnover rate
was 31% of
the average value of its portfolio.
Investments,
Risks and Performance
Principal
Investment Strategies
The
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
The
Fund allocates its assets among investments in segments (or allocable portions
of the Fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, the Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. The Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. The Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after
retirement.
The
Fund follows a “sustainable investing approach” that aims to allocate the Fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with the Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to the Fund’s segments and
underlying funds may consider material ESG factors differently in their
investment processes. For example, there may be differences in how they source
ESG-related research (proprietary versus third party), the extent to
which
they actively engage with company management, and/or their focus on companies
whose products and services are designed to directly address and/or
benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that the Fund’s portfolio may
be better
positioned to deliver financial results over time and manage risks related to
negative outcomes (for example, those related to the physical and regulatory
risks related to climate change, poor human rights practices, or poor corporate
governance). Certain strategies may also seek to exclude specific types
of investments as part of the broader investment
approach.
A
brief description of the principal investment policies of the segments and
underlying funds and asset classes in which the Fund may invest from time to
time
as well as the Fund’s target allocations can be found in the “More About Goals
and Strategies” section of the prospectus. Under normal circumstances,
the
Fund may deviate no more than plus or minus 10% from its target allocations. The
Fund’s Adviser, Natixis Advisors, may modify the selection of segments
and
underlying funds for the Fund from time to time. Natixis Advisors also
determines the Fund’s glide path and target
allocations.
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how the Fund’s asset mix becomes more
conservative
as the target date approaches and passes. This reflects individuals’ expected
need for reduced market risks as retirement approaches and for low
portfolio volatility after retirement. The Fund is a “through” target date fund.
This means that the Fund is expected to reach its final allocations approximately
10 years past its target year.
The
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income
investments, such as government bonds, investment grade corporate notes and
bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. The Fund may invest in securities of any market
capitalization.
The
Fund’s Board of Trustees may approve combining the Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Principal
Investment Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose money by
investing in the
Fund,
including losses near, at, or after the target year. There is no guarantee that
the Fund will provide adequate income at or after the target
year. Because of the Fund’s investments in the underlying funds, the Fund will
be subject to many of the risks below indirectly through its investments
in
the underlying funds rather than directly through investment in the actual
securities themselves.
Fund shares are not
bank deposits and are not guaranteed, endorsed or insured by the Federal Deposit
Insurance Corporation or any other government agency, and are subject to
investment risks, including possible loss of the principal
invested.
The
significance of any specific risk to an investment in the Fund will vary over
time, depending on the composition of the Fund’s portfolio, market conditions,
and
other factors. You should read all of the risk information presented below
carefully, because any one or more of these risks may result in losses to the
Fund.
Equity Securities Risk:
The value of the Fund’s investments in equity securities could be subject to
unpredictable declines in the value of individual securities
and periods of below-average performance in individual securities or in the
equity market as a whole. Growth
stocks are generally more sensitive to
market movements than other types of stocks primarily because their stock prices
are based heavily on future expectations. If the Adviser’s
or subadviser’s assessment
of the prospects for a company’s growth is wrong, or if the Adviser’s
or subadviser’s judgment of how other investors will value the company’s
growth
is wrong, then the price of the company’s stock may fall or not approach the
value that the Adviser
or subadviser has placed on it.
Value
stocks can perform
differently from the market as a whole and from other types of stocks. Value
stocks also present the risk that their lower valuations fairly reflect their
business
prospects and that investors will not agree that the stocks represent favorable
investment opportunities, and they may fall out of favor with investors
and underperform growth stocks during any given period. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s
bonds generally take precedence over the claims of those who own preferred stock
or common stock. Securities
of real estate-related companies and REITs
in which the Fund may invest may be considered equity securities, thus
subjecting the Fund to the risks of investing in equity securities
generally.
ESG Investing Risk:
The Fund’s ESG investment approach could cause the Fund to perform differently
compared to funds that do not have such an approach or
compared to the market as a whole. The Fund’s application of ESG-related
considerations may affect the Fund’s exposure to certain issuers, industries,
sectors,
style factors or other characteristics and may impact the relative performance
of the Fund—positively or negatively—depending on the relative performance
of such investments. Views
on what constitutes “ESG investing,” and therefore what investments are
appropriate for a fund that has an ESG investment
approach, may differ by fund, adviser and investor. In evaluating an investment,
a portfolio manager may be reliant upon information and data that may
turn out to be incomplete, inaccurate or unavailable, which may negatively
impact the portfolio manager’s assessment of an issuer’s ESG performance or
the
Fund’s performance generally. There is no guarantee that the Adviser’s efforts
to select investments based on ESG practices will be
successful.
Foreign Securities Risk:
Investments in foreign securities may be subject to greater political, economic,
environmental, credit/counterparty and information risks.
The
Fund’s investments in foreign securities also are subject to foreign currency
fluctuations and other foreign currency-related risks. Foreign
securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets Risk:
In addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising
from political or economic instability, war, nationalization or confiscatory
taxation, currency exchange or repatriation restrictions, sanctions by other
countries
(such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments, and an
issuer’s
unwillingness or inability to make dividend, principal or interest payments on
its securities. Emerging markets companies may be smaller and have shorter
operating histories than companies in developed
markets.
Mortgage-Related and Asset-Backed Securities
Risk:
In addition to the risks associated with investments in fixed-income securities
generally (for example,
credit, liquidity, inflation and valuation risk), mortgage-related and
asset-backed securities are subject to the risks of the mortgages and assets
underlying
the securities as well as prepayment risk, the risk that the securities may be
prepaid and result in the reinvestment of the prepaid amounts in securities
with lower yields than the prepaid obligations. Conversely, there is a risk that
a rise in interest rates will extend the life of a mortgage-related or
asset-backed
security beyond the expected prepayment time, typically reducing the security’s
value, which is called extension risk. The Fund also may incur a loss
when there is a prepayment of securities that were purchased at a premium. The
Fund’s investments in other asset-backed securities are subject to risks
similar
to those associated with mortgage-related securities, as well as additional
risks associated with the nature of the assets and the servicing of those
assets.
Allocation Risk: This
is the risk that the Adviser’s judgments about, and allocations between, asset
classes and market exposures may adversely affect the Fund’s
performance.
The
Fund’s investment performance depends, in part, on how its assets are
allocated. The
allocation,
as set forth above, may not be optimal
in every market condition. You could lose money on your investment in the Fund
as a result of this allocation.
Credit/Counterparty Risk:
Credit/counterparty risk is the risk that the issuer or guarantor of a
fixed-income security, or the counterparty to a derivative or other
transaction, will be unable or unwilling to make timely payments of interest or
principal or to otherwise honor its obligations. As a result, the Fund may
sustain
losses or be unable or delayed in its ability to realize gains. The Fund will be
subject to credit/counterparty risk with respect to the counterparties to
its
derivatives transactions. This risk will be heightened to the extent the
Fund enters into derivative transactions with a single counterparty (or
affiliated counterparties
that are part of the same organization), causing the Fund to have significant
exposure to such counterparty. Many of the protections afforded to
participants on organized exchanges and clearing houses, such as the performance
guarantee given by a central clearing house, are not available in connection
with over-the-counter
(“OTC”) derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps,
futures and many options, the primary credit/counterparty risk is the
creditworthiness of the Fund’s clearing broker and the central clearing house
itself.
Currency Risk:
Fluctuations in the exchange rates between different currencies may negatively
affect an investment. The Fund may be subject to currency risk
because it may invest in
currency-related instruments and may invest in securities
or other instruments denominated in, or that generate income denominated
in, foreign currencies. The
Fund may elect not to hedge currency risk, or may hedge such risk imperfectly,
which may cause the Fund to incur losses
that would not have been incurred had the risk been
hedged.
Cybersecurity and Technology Risk:
The Fund, its service providers, and
other market participants increasingly depend on complex information
technology
and communications systems, which are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result in
financial losses to the Fund and its
shareholders.
Derivatives Risk:
The Fund will be exposed to derivatives risk primarily through its investments
in the underlying funds. Derivative instruments (such as those
in which the underlying funds may invest, including forward currency contracts,
structured notes, futures transactions and swap transactions) are subject
to changes in the value of the underlying assets or indices on which such
instruments are based. There is no guarantee that an underlying fund’s use
of
derivatives will be effective or that suitable transactions will be available.
Even a small investment in derivatives by an underlying fund may give rise to
leverage
risk and can have a significant impact on the underlying fund’s exposure to
securities market values, interest rates or currency exchange rates. It is
possible
that an underlying fund’s liquid assets may be insufficient to support its
obligations under its derivatives positions. The use of derivatives for other
than
hedging purposes may be considered a speculative activity, and involves greater
risks than are involved in hedging. The use of derivatives by an underlying
fund may cause the Fund to incur losses greater than those that would have
occurred had derivatives not been used. An underlying fund’s use of derivatives
involves other risks, such as credit/counterparty risk relating to the other
party to a derivative contract (which is greater for forward currency
contracts,
uncleared swaps and other OTC derivatives), the risk of difficulties in pricing
and valuation, the risk that changes in the value of a derivative may
not
correlate as expected with changes in the value of relevant assets, rates or
indices, liquidity risk, allocation risk and the risk of losing more than any
amounts
paid or margin transferred to initiate derivatives positions. There is also the
risk that an underlying fund may be unable to terminate or sell a derivatives
position at an advantageous time or price. An underlying fund’s derivative
counterparties may experience financial difficulties or otherwise be
unwilling
or unable to honor their obligations, possibly resulting in losses to the
Fund.
Inflation-Protected Securities
Risk:
Inflation-protected securities are subject to the risk that the rate of
inflation will be lower than expected. Inflation-protected
securities are intended to protect against inflation by adjusting the interest
or principal payable on the security by an amount based upon an index
intended
to measure the rate of inflation. There can be no assurance that the relevant
index will accurately measure the rate of inflation, in which case the
securities
may not work as intended.
Interest Rate Risk:
Interest rate risk is the risk that the value of the Fund’s investments will
fall if interest rates rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities
with relatively longer durations than for funds that invest in fixed-income
securities with shorter durations. Duration
is a measure of the expected life
of a fixed-income security that is used to determine the sensitivity of a
security’s price to changes in interest rates. A fund with a longer average
portfolio duration
will be more sensitive to changes in interest rates than a fund with a shorter
average portfolio duration.
The
value of zero-coupon and
pay-in-kind bonds
may be more sensitive to fluctuations in interest rates than other
fixed-income securities.
In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities and reduce the Fund’s
ability to sell them, negatively impacting the performance of the Fund.
Potential
future changes in government and/or central bank monetary policy and action may
also affect the level of interest rates. Recently, there have been inflationary
price movements, which have caused the fixed income securities markets to
experience heightened levels of interest volatility and liquidity risk.
Monetary
policy measures have in the past, and may in the future, exacerbate risks
associated with rising interest
rates.
Investments in Other Investment Companies
Risk:
The Fund will indirectly bear the management, service and other fees of any
other investment companies, including
exchange
traded funds, in which it invests in addition to its own expenses.
The
Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the underlying
funds.
Large Investor Risk:
Ownership of shares of the Fund may be concentrated in one or a few large
investors. Such investors may redeem shares in large quantities
or on a frequent basis. Redemptions by a large investor can affect the
performance of the Fund, may increase realized capital gains, including
short-term
capital gains taxable as ordinary income, may accelerate the realization of
taxable income to shareholders and may increase transaction costs. These
transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such
transactions
may also increase the Fund’s expenses.
Leverage Risk: Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index,
market or asset-price movements into larger changes in value. The use of
leverage increases the impact of gains and losses on the Fund’s returns, and
may
lead to significant losses if investments are not
successful.
Liquidity Risk:
Liquidity risk is the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in the
Fund’s investments or in their capacity or willingness to transact may
increase
the Fund’s exposure to this risk. Events that may lead to increased redemptions,
such as market disruptions or increases in interest rates, may also negatively
impact the liquidity of the Fund’s investments when it needs to dispose of them.
Markets may become illiquid quickly. If the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect the Fund.
During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a private placement, such as Rule
144A securities and
privately negotiated equity and other investments, are generally subject to
significant liquidity risk because they are subject to strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. In other circumstances, liquid investments may become
illiquid. Derivatives, and particularly OTC
derivatives, are generally subject to liquidity risk as well.
Liquidity issues may also make it difficult to value the
Fund’s investments. The Fund may invest in liquid investments that become
illiquid due to financial distress, or geopolitical events such as sanctions,
trading
halts or wars.
Management Risk:
A strategy used by the Fund’s portfolio
managers may fail to produce the intended
result.
Market/Issuer Risk:
The market value of the Fund’s investments will move up and down, sometimes
rapidly and unpredictably, based upon overall market and
economic conditions, as well as a number of reasons that directly relate to the
issuers of the Fund’s investments, such as management performance, financial
condition and demand for the issuers’ goods and services.
Retirement Risk:
The Fund is not a complete retirement program and there is no guarantee that an
investment in the Fund will provide sufficient retirement income
at or through retirement. Although the Fund will become more conservative over
time (meaning that the Fund will allocate more of its assets to
fixed-income
investments than equity investments as it nears the target retirement date), the
Fund will continue to be exposed to market/issuer risk and the share
price
of the Fund will fluctuate, even after the Fund reaches its most conservative
allocation. This means that you could lose money by investing in the Fund,
including
losses near, at, or after the target retirement date. In addition, your risk
tolerance may change over time, including in ways that do not correlate
perfectly
with the Fund’s glide path. Achieving your retirement goals will depend on many
factors, including the amount you save and the period over which you
do so.
Small- and Mid-Capitalization Companies
Risk:
Compared to large-capitalization companies, small- and mid-capitalization
companies are more likely to have
limited product lines, markets or financial resources. Stocks of these companies
often trade less frequently and in limited volume and their prices may
fluctuate
more than stocks of large-capitalization companies. As a result, it may be
relatively more difficult for the Fund to buy and sell securities of small-
and
mid-capitalization companies.
Tracking Error Risk:
Although the Fund does not seek to track any particular index, certain segments
of the Fund are designed to reflect the performance results
and risk characteristics of various indexes. There is a risk that the
performance of a segment will diverge from the performance of its respective
index, potentially
materially.
Risk/Return
Bar Chart and Table
The bar chart and
table shown below provide some indication of the risks of investing in the Fund
by showing changes in
the Fund’s performance from year-to-year and by
showing how the Fund’s average annual returns for the one-year, five-year and
life-of-fund periods compare to those of a broad-based
securities market
index that reflects the performance of the overall market applicable to the Fund
and an additional index that represents the market sectors
in which the Fund primarily
invests. The Fund’s past
performance (before and after taxes) does not necessarily indicate how the Fund
will perform in the future.
Updated performance information is available online at im.natixis.com
and/or by calling the Fund toll-free at 800-225-5478.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been waived or
reimbursed
during the period, total returns would have been
lower.
Total Returns for Class N
Shares
|
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Highest Quarterly
Return:
Second Quarter
2020,
19.68%
Lowest Quarterly
Return:
First Quarter
2020,
-21.18% |
The Fund’s Class N shares
total return
year-to-date as of March 31, 2024 was
8.08%.
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Average Annual Total
Returns |
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|
(for the periods ended
December 31, 2023) |
Past 1 Year |
Past 5 Year |
Life of Fund
(2/28/17) |
|
Return
Before Taxes |
21.74%
|
11.13%
|
9.78%
|
|
Return
After Taxes on Distributions |
20.51%
|
9.00%
|
7.70%
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
13.36%
|
8.27%
|
7.24%
|
|
S&P
500® Index1 |
26.29%
|
15.69%
|
12.76%
|
|
S&P
Target Date 2055® Index |
19.62%
|
10.98%
|
8.80%
|
| 1 |
Effective June
1, 2024, the Fund’s primary broad-based performance index changed to the
S&P 500® Index. The S&P 500® Index is a broad-based securities
market index that represents the overall market applicable to the Fund.
The Fund will retain the S&P Target Date
2055® Index as its additional benchmark for performance
comparison. |
The Fund did not have
Class Y shares outstanding
during the periods shown above. The returns of Class
Y shares would have been substantially similar to the returns
of the Fund’s Class
N shares because they would have been invested in the same portfolio of
securities and would only differ to the extent the Class
N
shares did not have the same
expenses.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes.Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns shown are not relevant to investors who
hold their shares
through tax-advantaged arrangements, such as 401(k) plans, qualified plans,
education savings accounts, such as 529 plans, or individual
retirement accounts.
The after-tax returns
are shown for only one class of the Fund.
After-tax returns for the other
classes of the Fund will vary.
Index
performance reflects
no deduction for fees, expenses or taxes.
Management
Investment
Adviser
Natixis
Advisors
Portfolio
Managers
The following portfolio managers determine the Fund’s
available underlying funds and separately managed segments, determine the Fund’s
glide path and target allocations and supervise the activities of
the Fund’s subadvisers:
Natixis Advisors
Marina
Gross has served as a co-portfolio manager of the Fund since 2018.
Daniel
Price, CFA®
has served as a co-portfolio manager of the Fund since 2018.
Christopher
Sharpe, CFA®
has served as a
co-portfolio manager of the Fund since 2019 and as lead portfolio manager of the
Fund since 2020.
Purchase
and Sale of Fund Shares
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts (such as wrap
accounts)
where an advisory fee is paid to the broker-dealer or other financial
intermediary. There is no subsequent investment minimum for these shares.
There
is no initial investment minimum for:
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
| • |
Funds of funds
that are distributed by Natixis
Distribution, LLC (the “Distributor”). |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes will
have enough
assets to exceed the investment minimum requirement within a relatively short
period of time following the establishment date of such accounts in Class
N. The Distributor and the Fund, at any time, reserve the right to liquidate
these accounts or any other account that does not meet the eligibility
requirements
of this class.
Class
Y Shares
Class
Y shares are not currently available for purchase.
Class
Y shares of the Fund are generally subject to a minimum initial investment of
$100,000. There is no subsequent investment minimum for these shares.
There
is no minimum initial investment for:
| • |
Fee Based Programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult your financial
representative to determine if your fee based program is subject to
additional or different conditions or
fees. |
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Certain Individual Retirement
Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement plans invested
in the Fund. |
| • |
Clients
of a Registered Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
| • |
Fund Trustees,
former Fund trustees, employees of affiliates of the Natixis Funds and
other individuals who are affiliated with any Natixis Fund (this also
applies
to any spouse, parents, children, siblings, grandparents, grandchildren
and in-laws of those mentioned) and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis
Advisors, clients of Natixis Advisors and its affiliates may purchase Class Y
shares of the Fund below the stated minimums.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and accounts of
registered
investment advisers may be subject to the investment minimums described
above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your investment dealer, directly from the Fund by writing to the
Fund
at Natixis Funds, P.O. Box 219579, Kansas City, MO 64121-9579, by exchange, by
wire, by internet at im.natixis.com (certain restrictions may apply),
through
the Automated Clearing House system, or, in the case of redemptions, by
telephone at 800-225-5478 or by the Systematic Withdrawal
Plan.
Tax
Information
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors that qualify
for
tax-advantaged treatment under U.S. federal income tax law generally.
Investments through such tax-advantaged plans will generally be taxed only upon
withdrawal
of monies from the tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary
for the sale of the Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary
and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Natixis
Sustainable Future 2060 Fund®
Investment
Goal
The
Fund seeks the highest total return consistent with its current asset
allocation.
Fund
Fees & Expenses
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
| |
|
(expenses that you pay
each year as a percentage of the value of your
investment) |
Class N |
Class Y |
|
Management
fees |
0.21%
|
0.21%
|
|
Distribution
and/or service (12b-1) fees |
0.00%
|
0.00%
|
|
Other
expenses |
1.86%
|
1.96%1
|
|
Acquired
fund fees and expenses |
0.28%
|
0.28%
|
|
Total
annual fund operating expenses |
2.35%
|
2.45%
|
|
Fee
waiver and/or expense reimbursement2 |
1.80%
|
1.85%
|
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.55%
|
0.60%
|
| 1 |
Because
Class Y shares of the Fund are not currently available for purchase and do
not have any operating results to report as of the Fund’s fiscal year end,
“Other
expenses” for the class are based on
estimated amounts for the current fiscal
year. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating expenses,
including expenses of the underlying funds in which the Fund invests, to
0.55% and 0.60% of the Fund’s average daily net assets for Class N and Y
shares, respectively,
exclusive of brokerage expenses, interest expense, taxes, organizational
and extraordinary expenses, such as litigation and indemnification
expenses. This undertaking
is in effect through May 31, 2025 and
may be terminated before then only with the consent of the Fund’s Board of
Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below both
(1) the class’ applicable expense
limitation at the time such amounts were waived/reimbursed and (2) the
class’ current applicable expense limitation. The Fund will not be
obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were waived/reimbursed.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that
you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods (except where indicated). The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same except
that the example is
based
on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement assuming
that such waiver and/or reimbursement will only
be in place through the date noted above and on the Total Annual Fund Operating
Expenses for the remaining periods.
The
example does not take into account
brokerage commissions and other fees to financial intermediaries that you may
pay on your purchases and sales of shares of the Fund. Although
your actual
costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
| |
|
|
1 year |
3 years |
5 years |
10 years |
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
Y |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate
higher transaction costs and may result in higher taxes for you if your Fund
shares are held in a taxable account. These costs, which are not reflected
in
annual fund operating expenses or in the example, affect the Fund’s performance.
During
its most recently ended fiscal year, the Fund’s portfolio turnover rate
was 31% of
the average value of its portfolio.
Investments,
Risks and Performance
Principal
Investment Strategies
The
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
The
Fund allocates its assets among investments in segments (or allocable portions
of the Fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, the Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. The Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. The Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after
retirement.
The
Fund follows a “sustainable investing approach” that aims to allocate the Fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with the Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to the Fund’s segments and
underlying funds may consider material ESG factors differently in their
investment processes. For example, there may be differences in how they source
ESG-related research (proprietary versus third party), the extent to
which
they actively engage with company management, and/or their focus on companies
whose products and services are designed to directly address and/or
benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that the Fund’s portfolio may
be better
positioned to deliver financial results over time and manage risks related to
negative outcomes (for example, those related to the physical and regulatory
risks related to climate change, poor human rights practices, or poor corporate
governance). Certain strategies may also seek to exclude specific types
of investments as part of the broader investment
approach.
A
brief description of the principal investment policies of the segments and
underlying funds and asset classes in which the Fund may invest from time to
time
as well as the Fund’s target allocations can be found in the “More About Goals
and Strategies” section of the prospectus. Under normal circumstances,
the
Fund may deviate no more than plus or minus 10% from its target allocations. The
Fund’s Adviser, Natixis Advisors, may modify the selection of segments
and
underlying funds for the Fund from time to time. Natixis Advisors also
determines the Fund’s glide path and target
allocations.
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how the Fund’s asset mix becomes more
conservative
as the target date approaches and passes. This reflects individuals’ expected
need for reduced market risks as retirement approaches and for low
portfolio volatility after retirement. The Fund is a “through” target date fund.
This means that the Fund is expected to reach its final allocations approximately
10 years past its target year.
The
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income
investments, such as government bonds, investment grade corporate notes and
bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. The Fund may invest in securities of any market
capitalization.
The
Fund’s Board of Trustees may approve combining the Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Principal
Investment Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose
money by investing in the Fund, including losses near, at, or
after the target year. There is no guarantee that the Fund will provide adequate
income at or after the target year. Because of the Fund’s investments in the
underlying funds, the Fund will be subject to many of the risks below indirectly
through its investments in the underlying funds rather than directly through
investment in the actual securities themselves.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government agency, and are
subject to investment risks, including possible loss of the principal
invested.
The
significance of any specific risk to an investment in the Fund will vary over
time, depending on the composition of the Fund’s portfolio, market conditions,
and
other factors. You should read all of the risk information presented below
carefully, because any one or more of these risks may result in losses to the
Fund.
Equity Securities Risk:
The value of the Fund’s investments in equity securities could be subject to
unpredictable declines in the value of individual securities
and periods of below-average performance in individual securities or in the
equity market as a whole. Growth
stocks are generally more sensitive to
market movements than other types of stocks primarily because their stock prices
are based heavily on future expectations. If the Adviser’s
or subadviser’s assessment
of the prospects for a company’s growth is wrong, or if the Adviser’s
or subadviser’s judgment of how other investors will value the company’s
growth
is wrong, then the price of the company’s stock may fall or not approach the
value that the Adviser
or subadviser has placed on it.
Value
stocks can perform
differently from the market as a whole and from other types of stocks. Value
stocks also present the risk that their lower valuations fairly reflect their
business
prospects and that investors will not agree that the stocks represent favorable
investment opportunities, and they may fall out of favor with investors
and underperform growth stocks during any given period. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s
bonds generally take precedence over the claims of those who own preferred stock
or common stock. Securities
of real estate-related companies and REITs
in which the Fund may invest may be considered equity securities, thus
subjecting the Fund to the risks of investing in equity securities
generally.
ESG Investing Risk:
The Fund’s ESG investment approach could cause the Fund to perform differently
compared to funds that do not have such an approach or
compared to the market as a whole. The Fund’s application of ESG-related
considerations may affect the Fund’s exposure to certain issuers, industries,
sectors,
style factors or other characteristics and may impact the relative performance
of the Fund—positively or negatively—depending on the relative performance
of such investments. Views
on what constitutes “ESG investing,” and therefore what investments are
appropriate for a fund that has an ESG investment
approach, may differ by fund, adviser and investor. In evaluating an investment,
a portfolio manager may be reliant upon information and data that may
turn out to be incomplete, inaccurate or unavailable, which may negatively
impact the portfolio manager’s assessment of an issuer’s ESG performance or
the
Fund’s performance generally. There is no guarantee that the Adviser’s efforts
to select investments based on ESG practices will be
successful.
Foreign Securities Risk:
Investments in foreign securities may be subject to greater political, economic,
environmental, credit/counterparty and information risks.
The
Fund’s investments in foreign securities also are subject to foreign currency
fluctuations and other foreign currency-related risks. Foreign
securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets Risk:
In addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising
from political or economic instability, war, nationalization or confiscatory
taxation, currency exchange or repatriation restrictions, sanctions by other
countries
(such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments, and an
issuer’s
unwillingness or inability to make dividend, principal or interest payments on
its securities. Emerging markets companies may be smaller and have shorter
operating histories than companies in developed
markets.
Mortgage-Related and Asset-Backed Securities
Risk:
In addition to the risks associated with investments in fixed-income securities
generally (for example,
credit, liquidity, inflation and valuation risk), mortgage-related and
asset-backed securities are subject to the risks of the mortgages and assets
underlying
the securities as well as prepayment risk, the risk that the securities may be
prepaid and result in the reinvestment of the prepaid amounts in securities
with lower yields than the prepaid obligations. Conversely, there is a risk that
a rise in interest rates will extend the life of a mortgage-related or
asset-backed
security beyond the expected prepayment time, typically reducing the security’s
value, which is called extension risk. The Fund also may incur a loss
when there is a prepayment of securities that were purchased at a premium. The
Fund’s investments in other asset-backed securities are subject to risks
similar
to those associated with mortgage-related securities, as well as additional
risks associated with the nature of the assets and the servicing of those
assets.
Allocation Risk: This
is the risk that the Adviser’s judgments about, and allocations between, asset
classes and market exposures may adversely affect the Fund’s
performance.
The
Fund’s investment performance depends, in part, on how its assets are
allocated. The
allocation,
as set forth above, may not be optimal
in every market condition. You could lose money on your investment in the Fund
as a result of this allocation.
Credit/Counterparty Risk:
Credit/counterparty risk is the risk that the issuer or guarantor of a
fixed-income security, or the counterparty to a derivative or other
transaction, will be unable or unwilling to make timely payments of interest or
principal or to otherwise honor its obligations. As a result, the Fund may
sustain
losses or be unable or delayed in its ability to realize gains. The Fund will be
subject to credit/counterparty risk with respect to the counterparties to
its
derivatives transactions. This risk will be heightened to the extent the
Fund enters into derivative transactions with a single counterparty (or
affiliated counterparties
that are part of the same organization), causing the Fund to have significant
exposure to such counterparty. Many of the protections afforded to
participants on organized exchanges and clearing houses, such as the performance
guarantee given by a central clearing house, are not available in connection
with over-the-counter
(“OTC”) derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps,
futures and many options, the primary credit/counterparty risk is the
creditworthiness of the Fund’s clearing broker and the central clearing house
itself.
Currency Risk:
Fluctuations in the exchange rates between different currencies may negatively
affect an investment. The Fund may be subject to currency risk
because it may invest in
currency-related instruments and may invest in securities
or other instruments denominated in, or that generate income denominated
in, foreign currencies. The
Fund may elect not to hedge currency risk, or may hedge such risk imperfectly,
which may cause the Fund to incur losses
that would not have been incurred had the risk been
hedged.
Cybersecurity and Technology Risk:
The Fund, its service providers, and
other market participants increasingly depend on complex information
technology
and communications systems, which are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result in
financial losses to the Fund and its
shareholders.
Derivatives Risk:
The Fund will be exposed to derivatives risk primarily through its investments
in the underlying funds. Derivative instruments (such as those
in which the underlying funds may invest, including forward currency contracts,
structured notes, futures transactions and swap transactions) are subject
to changes in the value of the underlying assets or indices on which such
instruments are based. There is no guarantee that an underlying fund’s use
of
derivatives will be effective or that suitable transactions will be available.
Even a small investment in derivatives by an underlying fund may give rise to
leverage
risk and can have a significant impact on the underlying fund’s exposure to
securities market values, interest rates or currency exchange rates. It is
possible
that an underlying fund’s liquid assets may be insufficient to support its
obligations under its derivatives positions. The use of derivatives for other
than
hedging purposes may be considered a speculative activity, and involves greater
risks than are involved in hedging. The use of derivatives by an underlying
fund may cause the Fund to incur losses greater than those that would have
occurred had derivatives not been used. An underlying fund’s use of derivatives
involves other risks, such as credit/counterparty risk relating to the other
party to a derivative contract (which is greater for forward currency
contracts,
uncleared swaps and other OTC derivatives), the risk of difficulties in pricing
and valuation, the risk that changes in the value of a derivative may
not
correlate as expected with changes in the value of relevant assets, rates or
indices, liquidity risk, allocation risk and the risk of losing more than any
amounts
paid or margin transferred to initiate derivatives positions. There is also the
risk that an underlying fund may be unable to terminate or sell a derivatives
position at an advantageous time or price. An underlying fund’s derivative
counterparties may experience financial difficulties or otherwise be
unwilling
or unable to honor their obligations, possibly resulting in losses to the
Fund.
Inflation-Protected Securities
Risk:
Inflation-protected securities are subject to the risk that the rate of
inflation will be lower than expected. Inflation-protected
securities are intended to protect against inflation by adjusting the interest
or principal payable on the security by an amount based upon an index
intended
to measure the rate of inflation. There can be no assurance that the relevant
index will accurately measure the rate of inflation, in which case the
securities
may not work as intended.
Interest Rate Risk:
Interest rate risk is the risk that the value of the Fund’s investments will
fall if interest rates rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities
with relatively longer durations than for funds that invest in fixed-income
securities with shorter durations. Duration
is a measure of the expected life
of a fixed-income security that is used to determine the sensitivity of a
security’s price to changes in interest rates. A fund with a longer average
portfolio duration
will be more sensitive to changes in interest rates than a fund with a shorter
average portfolio duration.
The
value of zero-coupon and
pay-in-kind bonds
may be more sensitive to fluctuations in interest rates than other
fixed-income securities.
In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities and reduce the Fund’s
ability to sell them, negatively impacting the performance of the Fund.
Potential
future changes in government and/or central bank monetary policy and action may
also affect the level of interest rates. Recently, there have been inflationary
price movements, which have caused the fixed income securities markets to
experience heightened levels of interest volatility and liquidity risk.
Monetary
policy measures have in the past, and may in the future, exacerbate risks
associated with rising interest
rates.
Investments in Other Investment Companies
Risk:
The Fund will indirectly bear the management, service and other fees of any
other investment companies, including
exchange
traded funds, in which it invests in addition to its own expenses.
The
Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the underlying
funds.
Large Investor Risk:
Ownership of shares of the Fund may be concentrated in one or a few large
investors. Such investors may redeem shares in large quantities
or on a frequent basis. Redemptions by a large investor can affect the
performance of the Fund, may increase realized capital gains, including
short-term
capital gains taxable as ordinary income, may accelerate the realization of
taxable income to shareholders and may increase transaction costs. These
transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such
transactions
may also increase the Fund’s expenses.
Leverage Risk: Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index,
market or asset-price movements into larger changes in value. The use of
leverage increases the impact of gains and losses on the Fund’s returns, and
may
lead to significant losses if investments are not
successful.
Liquidity Risk:
Liquidity risk is the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in the
Fund’s investments or in their capacity or willingness to transact may
increase
the Fund’s exposure to this risk. Events that may lead to increased redemptions,
such as market disruptions or increases in interest rates, may also negatively
impact the liquidity of the Fund’s investments when it needs to dispose of them.
Markets may become illiquid quickly. If the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect the Fund.
During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a private placement, such as Rule
144A securities and
privately negotiated equity and other investments, are generally subject to
significant liquidity risk because they are subject to strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. In other circumstances, liquid investments may become
illiquid. Derivatives, and particularly OTC
derivatives, are generally subject to liquidity risk as well.
Liquidity issues may also make it difficult to value the
Fund’s investments. The Fund may invest in liquid investments that become
illiquid due to financial distress, or geopolitical events such as sanctions,
trading
halts or wars.
Management Risk:
A strategy used by the Fund’s portfolio
managers may fail to produce the intended
result.
Market/Issuer Risk:
The market value of the Fund’s investments will move up and down, sometimes
rapidly and unpredictably, based upon overall market and
economic conditions, as well as a number of reasons that directly relate to the
issuers of the Fund’s investments, such as management performance, financial
condition and demand for the issuers’ goods and services.
Retirement Risk:
The Fund is not a complete retirement program and there is no guarantee that an
investment in the Fund will provide sufficient retirement income
at or through retirement. Although the Fund will become more conservative over
time (meaning that the Fund will allocate more of its assets to
fixed-income
investments than equity investments as it nears the target retirement date), the
Fund will continue to be exposed to market/issuer risk and the share
price
of the Fund will fluctuate, even after the Fund reaches its most conservative
allocation. This means that you could lose money by investing in the Fund,
including
losses near, at, or after the target retirement date. In addition, your risk
tolerance may change over time, including in ways that do not correlate
perfectly
with the Fund’s glide path. Achieving your retirement goals will depend on many
factors, including the amount you save and the period over which you
do so.
Small- and Mid-Capitalization Companies
Risk:
Compared to large-capitalization companies, small- and mid-capitalization
companies are more likely to have
limited product lines, markets or financial resources. Stocks of these companies
often trade less frequently and in limited volume and their prices may
fluctuate
more than stocks of large-capitalization companies. As a result, it may be
relatively more difficult for the Fund to buy and sell securities of small-
and
mid-capitalization companies.
Tracking Error Risk:
Although the Fund does not seek to track any particular index, certain segments
of the Fund are designed to reflect the performance results
and risk characteristics of various indexes. There is a risk that the
performance of a segment will diverge from the performance of its respective
index, potentially
materially.
Risk/Return
Bar Chart and Table
The bar chart and table shown below provide some
indication of the risks of investing in the Fund by showing changes in the
Fund’s performance from year-to-year and by showing how the Fund’s average
annual returns for the one-year, five-year and life-of-fund periods compare to
those of a broad-based securities market index that reflects the performance of
the overall market applicable to the Fund and an additional index that
represents the market sectors in which the Fund primarily
invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how the Fund will perform in the future. Updated performance
information is available online at im.natixis.com and/or by calling
the Fund toll-free at 800-225-5478.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been waived or
reimbursed
during the period, total returns would have been
lower.
Total Returns for Class N
Shares
|
| |
|
|
Highest Quarterly
Return:
Second Quarter 2020,
20.10%
Lowest Quarterly
Return:
First Quarter 2020,
-21.51% |
The
Fund’s Class N shares total return
year-to-date as of March 31, 2024 was
8.07%.
|
|
|
| |
|
Average Annual Total
Returns |
|
|
|
|
(for the periods ended
December 31, 2023) |
Past 1 Year |
Past 5 Year |
Life of Fund
(2/28/17) |
|
Return
Before Taxes |
21.74%
|
11.51%
|
10.04%
|
|
Return
After Taxes on Distributions |
20.60%
|
9.22%
|
7.83%
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
13.33%
|
8.57%
|
7.44%
|
|
S&P
500® Index1 |
26.29%
|
15.69%
|
12.76%
|
|
S&P
Target Date 2060® Index |
19.74%
|
11.04%
|
8.90%
|
| 1 |
Effective June
1, 2024, the Fund’s primary broad-based performance index changed to
the S&P 500® Index. The S&P 500® Index is a broad-based
securities market index that represents the overall market applicable to
the Fund. The Fund will retain the S&P Target Date
2060® Index as its additional benchmark for performance
comparison.
|
The Fund did not have
Class Y shares outstanding
during the periods shown above. The returns of Class
Y shares would have been substantially similar to the returns
of the Fund’s Class
N shares because they would have been invested in the same portfolio of
securities and would only differ to the extent the Class
N
shares did not have the same
expenses.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns shown are not relevant to investors who
hold their shares
through tax-advantaged arrangements, such as 401(k) plans, qualified plans,
education savings accounts, such as 529 plans, or individual
retirement accounts.
The after-tax returns
are shown for only one class of the Fund.
After-tax returns for the other
classes of the Fund will vary.
Index
performance reflects
no deduction for fees, expenses or taxes.
Management
Investment
Adviser
Natixis
Advisors
Portfolio
Managers
The following portfolio managers determine the Fund’s
available underlying funds and separately managed segments, determine the Fund’s
glide path and target allocations and supervise the activities of
the Fund’s subadvisers:
Natixis Advisors
Marina
Gross has served as a co-portfolio manager of the Fund since 2018.
Daniel
Price, CFA®
has served as a co-portfolio manager of the Fund since 2018.
Christopher
Sharpe, CFA®
has served as a
co-portfolio manager of the Fund since 2019 and as lead portfolio manager of the
Fund since 2020.
Purchase
and Sale of Fund Shares
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts (such as wrap
accounts)
where an advisory fee is paid to the broker-dealer or other financial
intermediary. There is no subsequent investment minimum for these shares.
There
is no initial investment minimum for:
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
| • |
Funds of funds
that are distributed by Natixis
Distribution, LLC (the “Distributor”). |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes will
have enough
assets to exceed the investment minimum requirement within a relatively short
period of time following the establishment date of such accounts in Class
N. The Distributor and the Fund, at any time, reserve the right to liquidate
these accounts or any other account that does not meet the eligibility
requirements
of this class.
Class
Y Shares
Class
Y shares are not currently available for purchase.
Class
Y shares of the Fund are generally subject to a minimum initial investment of
$100,000. There is no subsequent investment minimum for these shares.
There
is no minimum initial investment for:
| • |
Fee Based Programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult your financial
representative to determine if your fee based program is subject to
additional or different conditions or
fees. |
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Certain Individual Retirement
Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement plans invested
in the Fund. |
| • |
Clients
of a Registered Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
| • |
Fund Trustees,
former Fund trustees, employees of affiliates of the Natixis Funds and
other individuals who are affiliated with any Natixis Fund (this also
applies
to any spouse, parents, children, siblings, grandparents, grandchildren
and in-laws of those mentioned) and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis
Advisors, clients of Natixis Advisors and its affiliates may purchase Class Y
shares of the Fund below the stated minimums.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and accounts of
registered
investment advisers may be subject to the investment minimums described
above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your investment dealer, directly from the Fund by writing to the
Fund
at Natixis Funds, P.O. Box 219579, Kansas City, MO 64121-9579, by exchange, by
wire, by internet at im.natixis.com (certain restrictions may apply),
through
the Automated Clearing House system, or, in the case of redemptions, by
telephone at 800-225-5478 or by the Systematic Withdrawal
Plan.
Tax
Information
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors that qualify
for
tax-advantaged treatment under U.S. federal income tax law generally.
Investments through such tax-advantaged plans will generally be taxed only upon
withdrawal
of monies from the tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary
for the sale of the Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary
and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Natixis
Sustainable Future 2065 Fund®
Investment
Goal
The
Fund seeks the highest total return consistent with its current asset
allocation.
Fund
Fees & Expenses
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
| |
|
(expenses that you pay
each year as a percentage of the value of your
investment) |
Class N |
Class Y |
|
Management
fees |
0.21%
|
0.21%
|
|
Distribution
and/or service (12b-1) fees |
0.00%
|
0.00%
|
|
Other
expenses |
5.00%
|
5.10%1
|
|
Acquired
fund fees and expenses |
0.27%
|
0.27%
|
|
Total
annual fund operating expenses |
5.48%
|
5.58%
|
|
Fee
waiver and/or expense reimbursement2 |
4.93%
|
4.98%
|
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.55%
|
0.60%
|
| 1 |
Because
Class Y shares of the Fund are not currently available for purchase and do
not have any operating results to report as of the Fund’s fiscal year end,
“Other
expenses” for the class are based on
estimated amounts for the current fiscal
year. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating expenses,
including expenses of the underlying funds in which the Fund invests, to
0.55% and 0.60% of the Fund’s average daily net assets for Class N and Y
shares, respectively,
exclusive of brokerage expenses, interest expense, taxes, organizational
and extraordinary expenses, such as litigation and indemnification
expenses. This undertaking
is in effect through May 31, 2025 and
may be terminated before then only with the consent of the Fund’s Board of
Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below both
(1) the class’ applicable expense
limitation at the time such amounts were waived/reimbursed and (2) the
class’ current applicable expense limitation. The Fund will not be
obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were waived/reimbursed.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that
you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods (except where indicated). The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same except
that the example is
based
on the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement assuming
that such waiver and/or reimbursement will only
be in place through the date noted above and on the Total Annual Fund Operating
Expenses for the remaining periods.
The
example does not take into account
brokerage commissions and other fees to financial intermediaries that you may
pay on your purchases and sales of shares of the Fund. Although
your actual
costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
| |
|
|
1 year |
3 years |
5 years |
10 years |
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
Y |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate
higher transaction costs and may result in higher taxes for you if your Fund
shares are held in a taxable account. These costs, which are not reflected
in
annual fund operating expenses or in the example, affect the Fund’s performance.
During
its most recently ended fiscal year, the Fund’s portfolio turnover rate
was 18% of
the average value of its portfolio.
Investments,
Risks and Performance
Principal
Investment Strategies
The
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
The
Fund allocates its assets among investments in segments (or allocable portions
of the Fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, the Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. The Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. The Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after
retirement.
The
Fund follows a “sustainable investing approach” that aims to allocate the Fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with the Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to the Fund’s segments and
underlying funds may consider material ESG factors differently in their
investment processes. For example, there may be differences in how they source
ESG-related research (proprietary versus third party), the extent to
which
they actively engage with company management, and/or their focus on companies
whose products and services are designed to directly address and/or
benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that the Fund’s portfolio may
be better
positioned to deliver financial results over time and manage risks related to
negative outcomes (for example, those related to the physical and regulatory
risks related to climate change, poor human rights practices, or poor corporate
governance). Certain strategies may also seek to exclude specific types
of investments as part of the broader investment
approach.
A
brief description of the principal investment policies of the segments and
underlying funds and asset classes in which the Fund may invest from time to
time
as well as the Fund’s target allocations can be found in the “More About Goals
and Strategies” section of the prospectus. Under normal circumstances,
the
Fund may deviate no more than plus or minus 10% from its target allocations. The
Fund’s Adviser, Natixis Advisors, may modify the selection of segments
and
underlying funds for the Fund from time to time. Natixis Advisors also
determines the Fund’s glide path and target
allocations.
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how the Fund’s asset mix becomes more
conservative
as the target date approaches and passes. This reflects individuals’ expected
need for reduced market risks as retirement approaches and for low
portfolio volatility after retirement. The Fund is a “through” target date fund.
This means that the Fund is expected to reach its final allocations approximately
10 years past its target year.
The
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income
investments, such as government bonds, investment grade corporate notes and
bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. The Fund may invest in securities of any market
capitalization.
The
Fund’s Board of Trustees may approve combining the Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Principal
Investment Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose
money by investing in the Fund, including losses near, at, or
after the target year. There is no guarantee that the Fund will provide adequate
income at or after the target year. Because of the Fund’s investments in the
underlying funds, the Fund will be subject to many of the risks below indirectly
through its investments in the underlying funds rather than directly through
investment in the actual securities themselves.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government agency,
and are subject to investment risks, including possible loss of the principal
invested.
The
significance of any specific risk to an investment in the Fund will vary over
time, depending on the composition of the Fund’s portfolio, market conditions,
and
other factors. You should read all of the risk information presented below
carefully, because any one or more of these risks may result in losses to the
Fund.
Equity Securities Risk:
The value of the Fund’s investments in equity securities could be subject to
unpredictable declines in the value of individual securities
and periods of below-average performance in individual securities or in the
equity market as a whole. Growth
stocks are generally more sensitive to
market movements than other types of stocks primarily because their stock prices
are based heavily on future expectations. If the Adviser’s
or subadviser’s assessment
of the prospects for a company’s growth is wrong, or if the Adviser’s
or subadviser’s judgment of how other investors will value the company’s
growth
is wrong, then the price of the company’s stock may fall or not approach the
value that the Adviser
or subadviser has placed on it.
Value
stocks can perform
differently from the market as a whole and from other types of stocks. Value
stocks also present the risk that their lower valuations fairly reflect their
business
prospects and that investors will not agree that the stocks represent favorable
investment opportunities, and they may fall out of favor with investors
and underperform growth stocks during any given period. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s
bonds generally take precedence over the claims of those who own preferred stock
or common stock. Securities
of real estate-related companies and REITs
in which the Fund may invest may be considered equity securities, thus
subjecting the Fund to the risks of investing in equity securities
generally.
ESG Investing Risk:
The Fund’s ESG investment approach could cause the Fund to perform differently
compared to funds that do not have such an approach or
compared to the market as a whole. The Fund’s application of ESG-related
considerations may affect the Fund’s exposure to certain issuers, industries,
sectors,
style factors or other characteristics and may impact the relative performance
of the Fund—positively or negatively—depending on the relative performance
of such investments. Views
on what constitutes “ESG investing,” and therefore what investments are
appropriate for a fund that has an ESG investment
approach, may differ by fund, adviser and investor. In evaluating an investment,
a portfolio manager may be reliant upon information and data that may
turn out to be incomplete, inaccurate or unavailable, which may negatively
impact the portfolio manager’s assessment of an issuer’s ESG performance or
the
Fund’s performance generally. There is no guarantee that the Adviser’s efforts
to select investments based on ESG practices will be
successful.
Foreign Securities Risk:
Investments in foreign securities may be subject to greater political, economic,
environmental, credit/counterparty and information risks.
The
Fund’s investments in foreign securities also are subject to foreign currency
fluctuations and other foreign currency-related risks. Foreign
securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets Risk:
In addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising
from political or economic instability, war, nationalization or confiscatory
taxation, currency exchange or repatriation restrictions, sanctions by other
countries
(such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments, and an
issuer’s
unwillingness or inability to make dividend, principal or interest payments on
its securities. Emerging markets companies may be smaller and have shorter
operating histories than companies in developed
markets.
Mortgage-Related and Asset-Backed Securities
Risk:
In addition to the risks associated with investments in fixed-income securities
generally (for example,
credit, liquidity, inflation and valuation risk), mortgage-related and
asset-backed securities are subject to the risks of the mortgages and assets
underlying
the securities as well as prepayment risk, the risk that the securities may be
prepaid and result in the reinvestment of the prepaid amounts in securities
with lower yields than the prepaid obligations. Conversely, there is a risk that
a rise in interest rates will extend the life of a mortgage-related or
asset-backed
security beyond the expected prepayment time, typically reducing the security’s
value, which is called extension risk. The Fund also may incur a loss
when there is a prepayment of securities that were purchased at a premium. The
Fund’s investments in other asset-backed securities are subject to risks
similar
to those associated with mortgage-related securities, as well as additional
risks associated with the nature of the assets and the servicing of those
assets.
Allocation Risk: This
is the risk that the Adviser’s judgments about, and allocations between, asset
classes and market exposures may adversely affect the Fund’s
performance.
The
Fund’s investment performance depends, in part, on how its assets are
allocated. The
allocation,
as set forth above, may not be optimal
in every market condition. You could lose money on your investment in the Fund
as a result of this allocation.
Credit/Counterparty Risk:
Credit/counterparty risk is the risk that the issuer or guarantor of a
fixed-income security, or the counterparty to a derivative or other
transaction, will be unable or unwilling to make timely payments of interest or
principal or to otherwise honor its obligations. As a result, the Fund may
sustain
losses or be unable or delayed in its ability to realize gains. The Fund will be
subject to credit/counterparty risk with respect to the counterparties to
its
derivatives transactions. This risk will be heightened to the extent the
Fund enters into derivative transactions with a single counterparty (or
affiliated counterparties
that are part of the same organization), causing the Fund to have significant
exposure to such counterparty. Many of the protections afforded to
participants on organized exchanges and clearing houses, such as the performance
guarantee given by a central clearing house, are not available in connection
with over-the-counter
(“OTC”) derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps,
futures and many options, the primary credit/counterparty risk is the
creditworthiness of the Fund’s clearing broker and the central clearing house
itself.
Currency Risk:
Fluctuations in the exchange rates between different currencies may negatively
affect an investment. The Fund may be subject to currency risk
because it may invest in
currency-related
instruments and may invest in securities or other instruments denominated in, or
that generate income denominated
in, foreign currencies. The
Fund may elect not to hedge currency risk, or may hedge such risk imperfectly,
which may cause the Fund to incur losses
that would not have been incurred had the risk been
hedged.
Cybersecurity and Technology Risk:
The Fund, its service providers, and
other market participants increasingly depend on complex information
technology
and communications systems, which are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result in
financial losses to the Fund and its
shareholders.
Derivatives Risk:
The Fund will be exposed to derivatives risk primarily through its investments
in the underlying funds. Derivative instruments (such as those
in which the underlying funds may invest, including forward currency contracts,
structured notes, futures transactions and swap transactions) are subject
to changes in the value of the underlying assets or indices on which such
instruments are based. There is no guarantee that an underlying fund’s use
of
derivatives will be effective or that suitable transactions will be available.
Even a small investment in derivatives by an underlying fund may give rise to
leverage
risk and can have a significant impact on the underlying fund’s exposure to
securities market values, interest rates or currency exchange rates. It is
possible
that an underlying fund’s liquid assets may be insufficient to support its
obligations under its derivatives positions. The use of derivatives for other
than
hedging purposes may be considered a speculative activity, and involves greater
risks than are involved in hedging. The use of derivatives by an underlying
fund may cause the Fund to incur losses greater than those that would have
occurred had derivatives not been used. An underlying fund’s use of derivatives
involves other risks, such as credit/counterparty risk relating to the other
party to a derivative contract (which is greater for forward currency
contracts,
uncleared swaps and other OTC derivatives), the risk of difficulties in pricing
and valuation, the risk that changes in the value of a derivative may
not
correlate as expected with changes in the value of relevant assets, rates or
indices, liquidity risk, allocation risk and the risk of losing more than any
amounts
paid or margin transferred to initiate derivatives positions. There is also the
risk that an underlying fund may be unable to terminate or sell a derivatives
position at an advantageous time or price. An underlying fund’s derivative
counterparties may experience financial difficulties or otherwise be
unwilling
or unable to honor their obligations, possibly resulting in losses to the
Fund.
Inflation-Protected Securities
Risk:
Inflation-protected securities are subject to the risk that the rate of
inflation will be lower than expected. Inflation-protected
securities are intended to protect against inflation by adjusting the interest
or principal payable on the security by an amount based upon an index
intended
to measure the rate of inflation. There can be no assurance that the relevant
index will accurately measure the rate of inflation, in which case the
securities
may not work as intended.
Interest Rate Risk:
Interest rate risk is the risk that the value of the Fund’s investments will
fall if interest rates rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities
with relatively longer durations than for funds that invest in fixed-income
securities with shorter durations. Duration
is a measure of the expected life
of a fixed-income security that is used to determine the sensitivity of a
security’s price to changes in interest rates. A fund with a longer average
portfolio duration
will be more sensitive to changes in interest rates than a fund with a shorter
average portfolio duration.
The
value of zero-coupon and
pay-in-kind bonds
may be more sensitive to fluctuations in interest rates than other
fixed-income securities.
In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities and reduce the Fund’s
ability to sell them, negatively impacting the performance of the Fund.
Potential
future changes in government and/or central bank monetary policy and action may
also affect the level of interest rates. Recently, there have been inflationary
price movements, which have caused the fixed income securities markets to
experience heightened levels of interest volatility and liquidity risk.
Monetary
policy measures have in the past, and may in the future, exacerbate risks
associated with rising interest
rates.
Investments in Other Investment Companies
Risk:
The Fund will indirectly bear the management, service and other fees of any
other investment companies, including
exchange
traded funds, in which it invests in addition to its own expenses.
The
Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the underlying
funds.
Large Investor Risk:
Ownership of shares of the Fund may be concentrated in one or a few large
investors. Such investors may redeem shares in large quantities
or on a frequent basis. Redemptions by a large investor can affect the
performance of the Fund, may increase realized capital gains, including
short-term
capital gains taxable as ordinary income, may accelerate the realization of
taxable income to shareholders and may increase transaction costs. These
transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such
transactions
may also increase the Fund’s expenses.
Leverage Risk: Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index,
market or asset-price movements into larger changes in value. The use of
leverage increases the impact of gains and losses on the Fund’s returns, and
may
lead to significant losses if investments are not
successful.
Liquidity Risk:
Liquidity risk is the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in the
Fund’s investments or in their capacity or willingness to transact may
increase
the Fund’s exposure to this risk. Events that may lead to increased redemptions,
such as market disruptions or increases in interest rates, may also negatively
impact the liquidity of the Fund’s investments when it needs to dispose of them.
Markets may become illiquid quickly. If the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect the Fund.
During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a private placement, such as Rule
144A securities and
privately negotiated equity and other investments, are generally subject to
significant liquidity risk because they are subject to strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. In other circumstances, liquid investments may become
illiquid. Derivatives, and particularly OTC
derivatives, are generally subject to liquidity risk as well.
Liquidity issues may also make it difficult to value the
Fund’s investments. The Fund may invest in liquid investments that become
illiquid due to financial distress, or geopolitical events such as sanctions,
trading
halts or wars.
Management Risk:
A strategy used by the Fund’s portfolio
managers may fail to produce the intended
result.
Market/Issuer Risk:
The market value of the Fund’s investments will move up and down, sometimes
rapidly and unpredictably, based upon overall market and
economic conditions, as well as a number of reasons that directly relate to the
issuers of the Fund’s investments, such as management performance, financial
condition and demand for the issuers’ goods and services.
Retirement Risk:
The Fund is not a complete retirement program and there is no guarantee that an
investment in the Fund will provide sufficient retirement income
at or through retirement. Although the Fund will become more conservative over
time (meaning that the Fund will allocate more of its assets to
fixed-income
investments than equity investments as it nears the target retirement date), the
Fund will continue to be exposed to market/issuer risk and the share
price
of the Fund will fluctuate, even after the Fund reaches its most conservative
allocation. This means that you could lose money by investing in the Fund,
including
losses near, at, or after the target retirement date. In addition, your risk
tolerance may change over time, including in ways that do not correlate
perfectly
with the Fund’s glide path. Achieving your retirement goals will depend on many
factors, including the amount you save and the period over which you
do so.
Small- and Mid-Capitalization Companies
Risk:
Compared to large-capitalization companies, small- and mid-capitalization
companies are more likely to have
limited product lines, markets or financial resources. Stocks of these companies
often trade less frequently and in limited volume and their prices may
fluctuate
more than stocks of large-capitalization companies. As a result, it may be
relatively more difficult for the Fund to buy and sell securities of small-
and
mid-capitalization companies.
Tracking Error Risk:
Although the Fund does not seek to track any particular index, certain segments
of the Fund are designed to reflect the performance results
and risk characteristics of various indexes. There is a risk that the
performance of a segment will diverge from the performance of its respective
index, potentially
materially.
Risk/Return
Bar Chart and Table
The bar chart and
table shown below provide some indication of the risks of investing in the Fund
by showing changes in
the Fund’s performance from year-to-year and by
showing how the Fund’s average annual returns for the one-year and life-of-fund
periods compare to those of a broad-based securities market
index that reflects
the performance of the overall market applicable to the Fund and an additional
index that represents the market sectors in which the Fund
primarily
invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how the Fund will perform in the future.
Updated performance
information is available online at im.natixis.com
and/or by calling the Fund toll-free at 800-225-5478.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been waived or
reimbursed
during the period, total returns would have been
lower.
Total Returns for Class N
Shares
|
| |
|
|
Highest Quarterly
Return:
Fourth Quarter 2023,
12.15%
Lowest Quarterly
Return:
Second Quarter 2022,
-15.69% |
The
Fund’s Class N shares total return
year-to-date as of March 31, 2024 was
8.13%.
|
|
| |
|
Average Annual Total
Returns |
|
|
|
(for the periods ended
December 31, 2023) |
Past 1 Year |
Life of Fund
(12/15/21) |
|
Return
Before Taxes |
22.06%
|
0.65%
|
|
Return
After Taxes on Distributions |
21.60%
|
0.20%
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
13.20%
|
0.37%
|
|
S&P
500® Index1 |
26.29%
|
2.27%
|
|
S&P
Target Date 2065+® Index |
19.84%
|
1.32%
|
| 1 |
Effective June 1, 2024, the Fund’s primary
broad-based performance index changed to the S&P 500® Index. The
S&P 500® Index is a broad-based securities market index that
represents the overall market applicable to the Fund. The Fund will retain the S&P Target Date
2065+® Index as its additional benchmark for performance
comparison.
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The Fund did not have Class Y
shares outstanding during the periods shown above. The
returns of Class Y shares would have been substantially similar to the
returns of the Fund’s Class N shares because they would have been invested in
the same portfolio of securities and would only differ to the extent the Class N
shares did not have the same
expenses.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns shown are not
relevant to investors who hold their shares through tax-advantaged arrangements,
such as 401(k) plans, qualified plans, education savings accounts, such as 529
plans, or individual retirement accounts. The after-tax returns are shown for only one class
of the Fund. After-tax returns for the other classes of the Fund will
vary. Index performance reflects no deduction for fees,
expenses or taxes.
Management
Investment
Adviser
Natixis
Advisors
Portfolio
Managers
The following portfolio managers determine the Fund’s
available underlying funds and separately managed segments, determine the Fund’s
glide path and target allocations and supervise the activities of
the Fund’s subadvisers:
Natixis Advisors
Marina
Gross has served as a co-portfolio manager of the Fund since 2021.
Daniel
Price, CFA®
has served as a co-portfolio manager of the Fund since 2021.
Christopher
Sharpe, CFA®
has served as lead
portfolio manager of the Fund since 2021.
Purchase
and Sale of Fund Shares
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts (such as wrap
accounts)
where an advisory fee is paid to the broker-dealer or other financial
intermediary. There is no subsequent investment minimum for these shares.
There
is no initial investment minimum for:
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
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Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
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Funds of funds
that are distributed by Natixis
Distribution, LLC (the “Distributor”). |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes will
have enough
assets to exceed the investment minimum requirement within a relatively short
period of time following the establishment date of such accounts in Class
N. The Distributor and the Fund, at any time, reserve the right to liquidate
these accounts or any other account that does not meet the eligibility
requirements
of this class.
Class
Y Shares
Class
Y shares are not currently available for purchase.
Class
Y shares of the Fund are generally subject to a minimum initial investment of
$100,000. There is no subsequent investment minimum for these shares.
There
is no minimum initial investment for:
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Fee Based Programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult your financial
representative to determine if your fee based program is subject to
additional or different conditions or
fees. |
| • |
Certain Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or different conditions
or fees imposed by the plan
administrator. |
| • |
Certain Individual Retirement
Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement plans invested
in the Fund. |
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Clients
of a Registered Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
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Fund Trustees,
former Fund trustees, employees of affiliates of the Natixis Funds and
other individuals who are affiliated with any Natixis Fund (this also
applies
to any spouse, parents, children, siblings, grandparents, grandchildren
and in-laws of those mentioned) and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis
Advisors, clients of Natixis Advisors and its affiliates may purchase Class Y
shares of the Fund below the stated minimums.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and accounts of
registered
investment advisers may be subject to the investment minimums described
above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your investment dealer, directly from the Fund by writing to the
Fund
at Natixis Funds, P.O. Box 219579, Kansas City, MO 64121-9579, by exchange, by
wire, by internet at im.natixis.com (certain restrictions may apply),
through
the Automated Clearing House system, or, in the case of redemptions, by
telephone at 800-225-5478 or by the Systematic Withdrawal
Plan.
Tax
Information
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors that qualify
for
tax-advantaged treatment under U.S. federal income tax law generally.
Investments through such tax-advantaged plans will generally be taxed only upon
withdrawal
of monies from the tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary
for the sale of the Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary
and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Investment
Goals, Strategies and Risks
More
About Goals and Strategies
Investment
Goal
Each Fund
seeks the highest total return consistent with its current asset
allocation. The investment goal of each Fund may be changed without shareholder
approval.
Each Fund will provide 60 days’ prior notice to shareholders before changing its
investment goal.
Principal
Investment Strategies
Each
Fund employs an asset allocation strategy designed for investors planning to
retire within a few years of the target year designated in the Fund’s name.
Each
Fund allocates its assets among investments in segments (or allocable portions
of the fund’s assets) and underlying funds managed by the adviser or
affiliated
advisers and subadvisers that invest directly in securities. Through these
allocations, each Fund provides exposure to a variety of asset classes
including
U.S. equity and fixed-income securities; non-U.S. equity and fixed-income
securities, including emerging markets securities; and U.S. government
and/or
agency securities. Each Fund’s asset allocation will become more conservative
over time by reducing its equity exposure and increasing its fixed-income
exposure in accordance with a “glide path” until approximately 10 years
following its target year. Each Fund assumes a retirement age of 65 at the
target
year and is designed for investors who plan to withdraw the value of their
account gradually after retirement.
Each
Fund follows a “sustainable investing approach” that aims to allocate the fund’s
assets to segments and underlying funds whose adviser or subadvisers,
as
part of their broader investment processes, actively consider material
environmental, social and governance (“ESG”) factors in the evaluation and
selection of
portfolio securities and their potential effect on long-term value, performance
and risks. Consistent with each Fund’s multi-disciplinary structure and as
described
in more detail below, the advisers or subadvisers to each of the Fund’s segments
and underlying funds may consider material ESG factors differently
in their investment processes. For example, there may be differences in how they
source ESG-related research (proprietary versus third party), the extent
to which they actively engage with company management, and/or their focus on
companies whose products and services are designed to directly address
and/or benefit from long-term environmental, social or governance trends.
Notwithstanding these differences, it is expected that each Fund’s portfolio
may be better positioned to deliver financial results over time and manage risks
related to negative outcomes (for example, those related to the physical
and regulatory risks related to climate change, poor human rights practices, or
poor corporate governance). Certain strategies may also seek to exclude
specific types of investments as part of the broader investment
approach.
The
following is a brief description of the principal investment policies of the
segments and underlying funds to which each Fund may allocate its assets from
time
to time. More detailed information about each underlying fund is available in
each underlying fund’s prospectus. Natixis Advisors, LLC (“Natixis Advisors”),
the adviser to each Fund, periodically may exclude one or more of the following
segments and/or underlying funds from its allocations. Each Fund’s
allocation to one or more of these segments and underlying funds may vary,
depending on each Fund’s glide path:
Equity
U.S. Equity
Active
Index Advisors® (“AIA”) U.S. Large Cap Core ESG Segment – This segment, managed
by the Natixis Investment Managers Solutions (“Solutions”) division
of Natixis Advisors, consists of a well-diversified portfolio of stocks that is
designed to track the performance results and risk characteristics of the
S&P
500® Index. Solutions creates the investable universe using third party ESG
ratings and controversy scores (i.e., a measurement impacted by a company’s
exposure to negative ESG events and/or practices) and invests in companies that
it believes have median or above ESG ratings, aiming to reduce the
risks associated with poor ESG risk management practices and severe
controversies. Solutions then applies an optimization process that seeks to
construct
a portfolio of stocks that approximates the characteristics and returns of the
index while limiting investments to the universe of companies selected
on
the basis of ESG characteristics. Solutions may sell a security due to a decline
in its ESG rating, to adjust tracking error relative to the index or for risk
management
purposes. Solutions may receive ESG ratings and controversy scores provided by
third-party vendors, and the third-party vendor(s) used by Solutions,
as well as the number of vendors used, may change over time.
AIA
U.S. Large Cap Value ESG Segment – This segment, managed by the Solutions
division of Natixis Advisors, consists of a well-diversified portfolio of
stocks
that is designed to track the performance results and risk characteristics of
the S&P 500® Value Index. Solutions creates the investable universe using
third
party ESG ratings and controversy scores (i.e., a measurement impacted by a
company’s exposure to negative ESG events and/or practices) and invests
in
companies that it believes have median or above ESG ratings, aiming to reduce
the risks associated with poor ESG risk management practices and severe
controversies.
Solutions then applies an optimization process that seeks to construct a
portfolio of stocks that approximates the characteristics and returns of
the
index while limiting investments to the universe of companies selected on the
basis of ESG characteristics. Solutions may sell a security due to a decline
in
its ESG rating, to adjust tracking error relative to the index, if another
security is more attractive or for risk management purposes. Solutions may
receive ESG
ratings and controversy scores provided by third-party vendors, and the
third-party vendor(s) used by Solutions, as well as the number of vendors used,
may
change over time.
AIA
U.S. Small/Mid Cap ESG Segment – This segment, managed by the Solutions division
of Natixis Advisors, consists of a well-diversified portfolio of stocks
that
is designed to track the performance results and risk characteristics of the
S&P 1000®
Index. Solutions creates the investable universe using third party ESG
ratings and controversy scores and invests in companies that it believes have
median or above ESG ratings, aiming to reduce the risks associated with
poor
ESG risk management practices and severe controversies. Solutions then applies
an optimization process that seeks to construct a portfolio of stocks
that
approximates the characteristics and returns of the index while limiting
investments to the universe of companies selected on the basis of ESG
Investment
Goals, Strategies and Risks
characteristics.
Solutions may sell a security due to a decline in its ESG rating, to adjust
tracking error relative to the index, if another security is more attractive
or for risk management purposes. Solutions may receive ESG ratings and
controversy scores provided by third-party vendors, and the third-party
vendor(s)
used by Solutions, as well as the number of vendors used, may change over
time.
Harris
Associates Large Cap Value Segment – This segment seeks long-term capital
appreciation and invests primarily in common stocks of large capitalization
U.S. companies in any industry. Harris Associates L.P. (“Harris Associates”)
uses a value investment philosophy in selecting equity securities which
is based upon the belief that, over time, a company’s stock price converges with
Harris Associates’ estimate of the company’s intrinsic value. By “intrinsic
value,” Harris Associates means its estimate of the price a knowledgeable buyer
would pay to acquire the entire business.
Harris
Associates uses this value investment philosophy to identify companies that it
believes have discounted stock prices compared to what Harris Associates
believes are the companies’ intrinsic values. In assessing such companies, some
of the characteristics Harris Associates looks for are: (i) free cash
flows
and intelligent investment of excess cash; (ii) earnings that are growing, are
reasonably predictable and sustainable; and (iii) high level of management
alignment
with shareholders.
For
each security, Harris Associates carefully assesses all material risks and
opportunities. Material ESG risks and opportunities may be factored into a
company’s
revenue estimates, margin forecasts, and costs of capital to determine an
estimate of intrinsic value. More specifically, the investment team continually
monitors developments on the regulatory, political and technological fronts to
gauge the economic impact to companies from environmental factors,
such as climate change. Harris Associates also monitors how well a company is
positioned to retain key talent, manage supply chain risk and outperform
local product safety and quality regulations, among other metrics. In all
companies in which it invests, Harris Associates seeks robust corporate
governance
practices.
Once
Harris Associates identifies a stock that it believes is selling at a
significant discount to Harris Associates’ estimate of intrinsic value and that
the issuer has
one or more of the additional qualities mentioned above, Harris Associates
generally will consider buying that security for the segment and usually sells a
security
when the price approaches its estimated intrinsic value. Harris Associates
monitors each holding and adjusts these price targets as warranted to
reflect
changes in a company’s fundamentals.
Loomis
Sayles All Cap Growth Segment – This segment seeks to produce long-term, excess
return versus the Russell 3000 Growth Index on a risk-adjusted basis
over a full market cycle through bottom-up stock selection. The segment invests
primarily in equity securities - including common stocks and depositary
receipts
- of companies of any size and in a wide range of sectors and industries. The
segment’s portfolio manager employs a growth style of equity management
that emphasizes companies with sustainable (or enduring) competitive advantages
versus others, long-term structural growth drivers that will lead
to above-average future cash flow growth, attractive cash flow returns on
invested capital, and management teams focused on creating long-term value
for
shareholders. The portfolio manager aims to invest in companies when they trade
at a significant discount to the estimate of intrinsic value (i.e., companies
with share prices trading significantly below what the portfolio manager
believes the share price should be).
With
an owner’s mindset, the portfolio manager seeks to develop a deep understanding
of the drivers, opportunities, and limits of each company, including
material
ESG elements, through a disciplined and thorough bottom-up fundamental analysis.
As with all components of the portfolio manager’s rigorous research,
the portfolio manager seeks to understand the effect of material ESG elements on
the sustainability of a company’s competitive advantages, its intrinsic
value, and ultimately long-term investment performance. Rather than applying
fixed rules or quantitative screens, ESG issues are viewed through an
independent
and forward-looking analysis. The portfolio manager’s proprietary research
framework represents long-standing insights about investing and is structured
around three key criteria: quality, growth, and valuation. ESG considerations
are integral to the analysis of business models, competitive advantages,
operating efficiency, corporate management integrity, profitable growth, and
valuation. The portfolio manager believes a long-term orientation is
fundamental
to a favorable decision-making framework regarding ESG issues and opportunities.
The majority of material ESG considerations is embedded in the
quality assessment phase of the research framework. ESG factors considered
during this phase of the research framework include how company management
teams weigh the interests of various stakeholders; resource stewardship;
governance practices including reporting, transparency, incentive structures,
ethics and ownership structures; and alignment of the business to meet climate
objectives and reporting transparency for ESG targets.
The
segment will consider selling a portfolio investment when the portfolio manager
believes an unfavorable structural change occurs within a given business
or the markets in which it operates, a critical underlying investment assumption
is flawed, when a more attractive reward-to-risk opportunity becomes
available, when the portfolio manager believes the current price fully reflects
intrinsic value, or for other investment reasons which the portfolio
manager
deems appropriate. The segment may also invest up to 25% of its assets in
foreign securities, including depositary receipts and emerging markets
securities.
Although certain equity securities purchased by the segment may be issued by
companies incorporated outside of the United States, Loomis, Sayles
& Company, L.P. (“Loomis Sayles”) does not consider these securities to be
foreign if they are included in the U.S. equity indices published by S&P
Global
Ratings or Russell Investments or if the security’s country of risk defined by
Bloomberg is the United States.
Non-U.S. Equity
AIA
International Developed Markets Equity ESG Segment – This segment, managed by
the Solutions division of Natixis Advisors, invests in stocks and/or
mutual
funds or exchange-traded funds (“ETFs”) that hold stocks of large- and
mid-capitalization companies located in international developed markets and is
designed
to track the performance results and risk characteristics of the MSCI EAFE
Index. Solutions creates the investable universe of stocks using third
party
ESG ratings and controversy scores and invests in companies that it believes
have median or above ESG ratings, aiming to reduce the risks associated
with
poor ESG risk management practices and severe controversies. Solutions then
applies an optimization process that seeks to construct a portfolio of
stocks
that approximates the characteristics and returns of the index while limiting
investments to the universe of companies selected on the basis of
Investment
Goals, Strategies and Risks
ESG characteristics.
Solutions may sell a security due to a decline in its ESG rating, to adjust
tracking error relative to the index, if another security is more attractive
or for risk management purposes. The particular securities and weight that
Solutions holds in each security are managed in a systematic process
that
uses a risk model and optimization. Solutions may receive ESG ratings and
controversy scores provided by third-party vendors, and the third-party
vendor(s)
used by Solutions, as well as the number of vendors used, may change over
time.
Mirova
International Sustainable Equity Fund – This underlying fund normally invests at
least 80% of its assets in equity securities, which may include common
stocks, preferred stocks, depositary receipts and real estate investment trusts
(“REITs”). The fund invests in securities of companies located in no
fewer
than three countries outside the U.S. Under normal circumstances, the fund will
invest at least 65% of its assets in securities of companies located
outside
the U.S. and the fund may invest up to 25% of its assets in securities of
companies located in emerging markets (which generally encompasses markets
that are not included in the MSCI World Developed Markets Index). The fund may
invest in growth and value companies of any size and may also invest
in initial public offerings.
In
making its investment decisions, Mirova US LLC (“Mirova US”) uses a
bottom-up approach focused on individual companies, rather than focusing on
specific
themes, specific industries or economic factors. Mirova US applies a thematic
approach to bottom-up investment idea generation, identifying securities
of companies that it believes offer solutions to the major transitions that our
world is going through. These transitions include (i) demographics, such
as an aging population, (ii) environmental issues, such as water scarcity, (iii)
technological advances, such as cloud computing and (iv) governance changes,
such as the growing importance of corporate responsibility. Mirova US applies a
Minimum Standards Policy, as described further in the underlying fund’s
prospectus, which sets forth criteria for specific exclusions that Mirova US
will consider as part of its ESG analysis.
From
this large universe, Mirova US applies detailed fundamental research to identify
fundamentally and financially sound companies, assessing companies’ (i)
strategic positioning, seeking companies with barriers to entry and
defensibility of business model, (ii) financial structure, looking for cash flow
generation capability
and balance sheet capacity, (iii) management quality, searching for management
teams who think like owners with leadership and strategic vision, and
(iv) ESG integration, seeking companies with good performance on ESG indicators
believed to be material.
Mirova
US seeks to invest in securities that are trading at significant discounts to
what it believes are their intrinsic values. In determining intrinsic value,
Mirova
US focuses on long-term modeling, modeling out a range of potential outcomes and
typically uses a combination of discounted cash flow models and multiples
analysis. Furthermore, Mirova US seeks to invest in companies that are aligned
with the achievement of the United Nations’ Sustainable Development
Goals (the “SDGs”) while avoiding companies whose activities or products
have a negative impact on or create a risk to achieving the SDGs. While
Mirova US does not use exclusions as a central tenet of its sustainability
approach, Mirova US applies a Minimum Standards Policy to evaluate the
level
of involvement of a company in activities that may be detrimental to the
achievement of the SDGs. Mirova US may sell a security due to a deterioration in
the company’s
fundamental quality, a change in thematic exposure or impact relative to the
SDGs, a controversy alert such as one relating to human rights, or if it
believes
the security has little potential for price appreciation or there is greater
relative value in other securities in the fund’s investment
universe.
WCM
Focused International Growth Fund – This underlying fund seeks long-term capital
appreciation and normally invests at least 75% of its net assets in equity
securities of non-U.S. domiciled companies or depository receipts of
non-U.S. domiciled companies located in developed countries and in emerging and
frontier
market countries. Emerging and frontier countries or markets are those countries
or markets with low- to middle-income economies as classified by the
World Bank or included in any of the Morgan Stanley Capital International (MSCI)
emerging markets or frontier markets indices. WCM considers a company
to be in an emerging or frontier country or market if the company has been
organized under the laws of, has its principal offices in, or has its
securities
principally traded in, the emerging or frontier country or market, or if the
company derives at least 50% of its revenues, net profits or incremental
revenue
growth (typically over the past five years) from, or has at least 50% of assets
or production capacities in, the emerging or frontier country or market.
The
fund’s investments in equity securities may include common stocks and depository
receipts.
The
fund’s investments in depository receipts may include American, European,
Canadian and Global Depository Receipts (“ADRs”, “EDRs”, “CDRs” and “GDRs”,
respectively). ADRs are receipts that represent interests in foreign securities
held on deposit by U.S. banks. EDRs and GDRs have the same qualities
as
ADRs, except that they may be traded in several international trading markets.
WCM uses a bottom-up approach that seeks to identify companies with attractive
fundamentals, such as long-term growth in revenue and earnings, and that show a
strong probability for superior future growth. WCM’s investment process
focuses on seeking companies that are industry leaders with strengthening
competitive advantages; corporate cultures emphasizing strong, quality
and
experienced management; low or no debt; and attractive relative valuations. WCM
considers other factors including political risk, monetary policy risk,
and
regulatory risk in selecting securities. WCM may also consider ESG issues, among
others, during its assessment of a company’s attractiveness as a
long-term
holding, as they may impact WCM’s view of the company’s corporate culture and
competitive advantages in particular.
Although
the fund may invest in any size companies, it generally invests in large
capitalization established multinational companies. WCM considers large
capitalization
companies to be those with market capitalization of $5 billion or greater at the
time of investment. The fund generally invests in securities of companies
located in different regions and in at least three different countries. However,
from time to time, the fund may have a significant portion of its assets
invested in the securities of companies in one or a few countries or regions.
The fund may make significant investments in certain sectors or group of
sectors
within a particular industry or industries from time to time.
WCM
may sell all or a portion of a portfolio holding of the fund when, in its
opinion, one or more of the following occurs, among other reasons: (i) the
company’s
fundamentals deteriorate; (ii) there is increased geopolitical or currency risk;
(iii) WCM identifies a more attractive investment opportunity for the
fund;
or (iv) the fund requires cash to meet requests for redemptions of
shares.
Investment
Goals, Strategies and Risks
WCM
Focused Emerging Markets Fund – This underlying fund seeks long-term capital
appreciation and normally invests at least 80% of its net assets (including
amounts borrowed for investment purposes) in equity securities of companies in
emerging or frontier countries or markets. Emerging and frontier countries
or markets are those countries or markets with low- to middle-income economies
as classified by the World Bank or included in any of the Morgan Stanley
Capital International (MSCI) emerging markets or frontier markets indices. WCM
considers a company to be in an emerging or frontier country or market
if the company has been organized under the laws of, has its principal offices
in, or has its securities principally traded in, the emerging or frontier
country
or market, or if the company derives at least 50% of its revenues, net profits
or incremental revenue growth (typically over the past five years) from, or
has
at least 50% of assets or production capacities in, the emerging or frontier
country or market.
The
fund’s equity investments include common stock and depository receipts. The
fund’s investments in depository receipts may include American, European,
Canadian
and Global Depository Receipts (“ADRs”, “EDRs”, “CDRs” and “GDRs”,
respectively).
WCM
uses a bottom-up approach that seeks to identify companies with attractive
fundamentals, such as long-term historical growth in revenue and earnings,
and/or a strong probability for superior future growth. WCM’s investment process
seeks companies that are industry leaders with strengthening competitive
advantages; corporate cultures emphasizing strong, quality and experienced
management; low or no debt; and attractive relative valuations. WCM
considers other factors including political risk, monetary policy risk, and
regulatory risk in selecting securities. WCM may also consider ESG issues,
among
others, during its assessment of a company’s attractiveness as a long-term
holding, as they may impact WCM’s view of the company’s corporate culture
and competitive advantages in particular.
The
fund may invest in securities of any size companies. The fund generally invests
in the securities of companies domiciled in at least three different
countries.
However, from time to time, the fund may have a significant portion of its
assets invested in the securities of companies domiciled in one or a few
countries
or regions. The fund may make significant investments in certain sectors or
group of sectors within a particular industry or industries from time to
time.
WCM
may sell all or a portion of a portfolio holding of the fund when, in its
opinion, one or more of the following occurs, among other reasons: (i) the
company’s
fundamentals deteriorate; (ii) there is increased geopolitical or currency risk;
(iii) WCM identifies a more attractive investment opportunity for the
fund;
or (iv) the fund requires cash to meet requests for redemptions of
shares.
Fixed-Income
Loomis
Sayles Core Fixed Income Segment – This segment seeks to outperform the
Bloomberg U.S. Aggregate Bond Index (“Aggregate Bond Index”) while maintaining
a benchmark-aware risk/return objective. The segment invests primarily in bonds
(or fixed-income securities) which include U.S. government securities,
corporate bonds issued by U.S. or foreign companies that are investment grade
(i.e., rated in the four highest rating categories of a nationally recognized
statistical ratings organization such as Moody’s Investor Service, Inc.
(“Moody’s”), Fitch Investor Services, Inc. (“Fitch”) or S&P’s Global Ratings
(“S&P”)
or, if unrated, which Loomis Sayles determines to be of comparable quality),
investment grade fixed-income securities backed by the interest and principal
payments of various types of mortgages, known as mortgage-backed securities and
investment grade fixed-income securities backed by the interest and
principal payments on loans for other types of assets, such as automobiles,
houses, or credit cards, known as asset-backed securities. The segment may
also
invest in other types of fixed-income securities, and foreign securities in
which the segment invests are denominated in U.S. dollars.
In
deciding which securities to buy or sell, Loomis Sayles may consider a number of
factors related to the bond issue and the current market, including, for
example,
the financial strength of the issuer, financially material ESG considerations
which impact Loomis Sayles credit opinion like carbon intensity, energy
management,
toxic emissions, and board independence, current interest rates and valuations,
the stability and volatility of a country’s bond markets and expectations
regarding general trends in interest rates and currency considerations. ESG
considerations are inherently part of the fixed income research process,
as Loomis Sayles generally takes a long-term view in seeking value and believes
that ESG considerations contribute to the goal of delivering strong long-term
risk-adjusted returns. Loomis Sayles conducts proprietary fixed income credit
and sovereign ESG research, focusing on material ESG issues and incorporating
climate change considerations, all of which are integrated into the firm’s
proprietary fixed income valuation tool. Loomis Sayles also considers
how
purchasing or selling a bond would impact the segment’s overall portfolio risk
profile (for example, its sensitivity to currency risk, interest rate risk and
sector-specific
risk) and potential return (income and capital gains). The portfolio managers
may engage in active and frequent trading of portfolio securities in
managing the segment. The segment typically maintains an average portfolio
duration that is within one year of the average duration of the Aggregate
Bond
Index, although it reserves the right to deviate further from the average
duration of the Aggregate Bond Index when Loomis Sayles believes it to be
appropriate
in light of the segment’s investment objective. As of December 31, 2023, the
average duration of the Aggregate Bond Index was 6.22 years.
Loomis
Sayles Limited Term Government and Agency Fund – This underlying fund seeks high
current return consistent with preservation of capital and normally
invests at least 80% of its net assets (plus any borrowings made for investment
purposes) in investments issued or guaranteed by the U.S. government,
its agencies or instrumentalities. The fund’s adviser follows a total
return-oriented investment approach and seeks securities that will provide
the
fund with an average credit quality equal to the credit rating of the U.S.
Government’s long-term debt and an effective portfolio duration range of two to
four
years (although not all securities selected will have these characteristics and
the fund’s adviser may look for other characteristics if market conditions
change).
The fund’s adviser emphasizes securities that tend to perform particularly well
in response to interest rate changes, such as U.S. Treasury securities
in
a declining interest rate environment and mortgage-backed or U.S. government
agency securities in a steady or rising interest rate environment. To the
extent
this allocation invests primarily in government issued debt in U.S. Treasury
related securities, this fund is ESG neutral from an investment
perspective.
Loomis
Sayles Inflation Protected Securities Fund – This underlying fund seeks high
total investment return through a combination of current income and capital
appreciation. It normally invests at least 80% of its net assets (plus any
borrowings made for investment purposes) in inflation-protected securities.
Investment
Goals, Strategies and Risks
The
emphasis will be on debt securities issued by the TIPS. The principal value of
these securities is periodically adjusted according to the rate of inflation,
and
repayment of the original bond principal upon maturity is guaranteed by the U.S.
government. In deciding which securities to buy and sell, the fund’s
adviser
may consider a number of factors related to the bond issue and the current bond
market, for example, the stability and volatility of a country’s bond
markets,
the financial strength of the issuer, current interest rates, current
valuations, the adviser’s expectations regarding general trends in interest
rates and
currency considerations. The fund’s adviser will also consider how purchasing or
selling a bond would impact the overall portfolio’s risk profile (for
example,
its sensitivity to currency risk, interest rate risk and sector-specific risk)
and potential return (income and capital gains). To the extent this allocation
invests
primarily in government issued debt in U.S. Treasury related securities, this
fund is ESG neutral from an investment perspective.
Mirova
Global Green Bond Fund – This underlying fund normally invests at least 80% of
its net assets (plus any borrowings made for investment purposes) in
green
bonds. Green bonds are issued by a diverse universe of issuers across issuer
type, sector and region to finance environmental projects. The fund invests
in
securities of issuers located in no fewer than three countries, which may
include the U.S. Under normal circumstances, the fund will invest at least 40%
of its
assets in securities of issuers located outside the U.S. and the fund may invest
up to 20% of its assets in securities of issuers located in emerging markets.
The
fund may invest up to 20% of its assets, at the time of purchase, in securities
rated below investment grade (commonly known as “junk bonds”), or, if
unrated,
securities determined by the fund’s adviser to be of comparable quality. The
fund may invest in bonds of any maturity and expects that under normal
circumstances
the modified duration of its portfolio will range between 0 and 10 years. This
flexibility is intended to allow the portfolio managers to reposition
the fund to take advantage of significant interest rate movements. The fund
primarily invests in fixed-income securities issued by companies, banks,
supranational entities, development banks, agencies, regions and governments. In
deciding which securities to buy and sell, Mirova US selects securities
based on their financial valuation profile and an analysis of the global ESG
impact of the issuer or the projects funded with the securities. Mirova
US
applies a Minimum Standards Policy which sets forth criteria for specific
exclusions that Mirova US will consider as part of its ESG analysis. Overall,
the team
aims to identify issuers with strong credit profiles and green bond frameworks
whose bonds are trading at attractive relative valuations.
Additional Information
Each
Fund’s investments, whether directly through its separately managed segments or
indirectly through investments in underlying funds, will generally include
equity securities, such as common and preferred stocks, fixed-income investments
such as government bonds, investment grade corporate notes and bonds,
zero-coupon bonds, securities issued pursuant to Rule 144A under the Securities
Act of 1933 (“Rule 144A securities”), other privately placed investments
such as private credit investments, asset-backed securities and mortgage-related
securities, and may also include derivative transactions, such as
forward currency contracts, structured notes, futures transactions and swap
transactions. Each Fund may invest in securities of any market capitalization.
Each
Fund, whether directly through its separately managed segments or indirectly
through investments in underlying funds, may invest in ETFs in order to
equitize
cash, achieve exposure to a broad basket of securities in a single transaction,
achieve similar exposure when proceeds are available from sales of other
investments, or for other reasons.
Each
Fund’s underlying fund and/or separately managed segment investments are managed
by one or more advisers and subadvisers using their own investment
processes, and ESG strategies vary somewhat across each underlying fund and
separately managed segment as a result. For example, certain strategies
(but not others) may explicitly exclude certain investments, actively integrate
ESG factors to pursue alpha and manage risk, and/or use sustainable themes
to identify investment opportunities.
Natixis
Advisors determines each
Fund’s glide path and target allocations. The following table lists each
Fund’s target allocations as of June 1, 2024. Under normal
market conditions, each
Fund may deviate no more than plus or minus 10% from its target equity and
fixed-income allocations. The fixed-income allocations
include cash allocations.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
2015 Fund |
2020 Fund |
2025 Fund |
2030 Fund |
2035 Fund |
2040 Fund |
2045 Fund |
2050 Fund |
2055 Fund |
2060 Fund |
2065 Fund |
|
Equity |
35.8% |
43.3% |
51.3% |
59.5% |
68.3% |
77.0% |
84.1% |
88.8% |
91.8% |
92.5% |
92.5% |
|
U.S.
Equity |
24.8% |
30.1% |
34.8% |
39.9% |
46.1% |
52.6% |
56.3% |
58.8% |
59.9% |
60.0% |
60.0% |
|
Non-U.S.
Equity |
11.1% |
13.3% |
16.5% |
19.6% |
22.3% |
24.4% |
27.8% |
30.1% |
31.9% |
32.5% |
32.5% |
|
Fixed-Income |
64.2% |
56.7% |
48.8% |
40.6% |
31.7% |
23.1% |
16.0% |
11.2% |
8.3% |
7.5% |
7.5% |
The
following glide path represents the shifting of equity and fixed-income
allocations over time and shows how each
Fund’s asset mix becomes more conservative
as the target date approaches and passes. As investors approach and move through
retirement, they transition from living on active income to relying
on passive income sources, and therefore become more sensitive to capital
losses. As a result, an investor will transition to larger and larger fixed
income
allocations. Additionally, the Fund’s fixed income exposure overall is
purposefully higher in quality, which improves its ballast to equity risk. This
reflects
individuals’ expected need for reduced market risks as retirement approaches and
for low portfolio volatility after retirement. Each
Fund is a “through”
target date fund. This means that each
Fund is expected to reach its final allocations approximately 10 years past its
target year.
Investment
Goals, Strategies and Risks
The
Funds’ Board of Trustees may approve combining a Fund with other Natixis
Sustainable Future Funds® that
have reached their final allocations if the Board
determines that such combination would be in the best interest of such Funds’
shareholders.
Temporary Defensive Measures
Temporary
defensive measures may be used by a Fund during adverse economic, market,
political or other conditions. In this event, a Fund may hold any portion
of its assets in cash (U.S. dollars, foreign currencies or multinational
currency units) and/or invest in cash equivalents such as money market
instruments
or high-quality debt securities as it deems appropriate. A Fund may miss certain
investment opportunities if it uses defensive strategies and thus may
not achieve its investment goal.
Percentage Investment Limitations
Except
as set forth in the SAI, the percentage limitations set forth in this Prospectus
and the SAI apply at the time an investment is made and shall not be
considered
violated unless an excess or deficiency occurs or exists immediately after and
as a result of such investment.
Portfolio Holdings
A
description of each Fund’s policies and procedures with respect to the
disclosure of each Fund’s portfolio securities is available in the section
“Portfolio Holdings
Information” in the SAI. A “snapshot” of each Fund’s investments may be
found in its annual and semiannual reports. In addition, a list of each
Fund’s
full portfolio holdings, which is updated monthly after an aging period of at
least 30 days, is available on the Funds’ website at
im.natixis.com/us/fund-documents
(in the “Daily/Monthly/Quarterly” column under the “Holdings” section, click the
download button for the relevant Fund). These holdings will remain
accessible on the website until each Fund files its respective Form N-CSR
or Form N-PORT with the Securities and Exchange Commission (the “SEC”)
for
the period that includes the date of the information. In addition, a list
of each Fund’s top 10 holdings as of the month end is generally available
within 7 business
days after the month end on the Funds’ website at
https://www.im.natixis.com/us/fund-documents (click Fund name and navigate to
“Top Ten Holdings”
section on the web page).
Investment
Goals, Strategies and Risks
More
About Risks
This
section provides more information on certain principal risks that may affect a
Fund’s portfolio, as well as information on additional risks a Fund may be
subject
to because of its investments or practices. In seeking to achieve its investment
goals, a Fund may also invest in various types of securities and engage
in
various investment practices which are not a principal focus of a Fund and
therefore are not described in this Prospectus. These securities and investment
practices
and their associated risks are discussed in the Funds’ SAI, which is available
without charge upon request (see back cover). Because
of the Funds’
investments
in the underlying funds, each
Fund will be subject to many of the risks below indirectly through its
investments in the underlying funds rather than
directly through investment in the actual securities themselves.
The significance of any specific risk to an investment in a Fund will vary over
time, depending
on the composition of the Fund’s portfolio, market conditions, and other
factors. You should read all of the risk information presented below
carefully,
because any one or more of these risks may result in losses to a
Fund.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government agency,
and are subject to investment risks, including possible loss of the principal
invested.
Recent Market Events Risk
The
COVID-19 pandemic resulted in, among other things, significant market
volatility, exchange trading suspensions and closures, declines in global
financial markets,
higher default rates, and economic downturns and recessions, and may continue to
have similar effects in the future. Such factors, and the effects of
other
infectious illness outbreaks, epidemics, or pandemics, may have a significant
adverse effect on a Fund’s performance, exacerbate other risks that apply
to
a Fund, exacerbate existing economic, political, or social tensions, have the
potential to impair the ability of a Fund’s investment adviser, subadviser, or
other
service providers to serve the Fund, and lead to disruptions that negatively
impact a Fund.
In
addition, Russia’s military invasion of Ukraine in February 2022, the resulting
responses by the United States and other countries, and the potential for
wider
conflict could increase volatility and uncertainty in the financial markets and
adversely affect regional and global economies. These and any related
events
could significantly impact a Fund’s performance and the value of an investment
in the Fund, even if the Fund does not have direct exposure to Russian
issuers
or issuers in other countries affected by the invasion. Other issuers or markets
could be similarly affected by past or future geopolitical or other events
or
conditions.
Equity Securities Risk
The
value of your investment in a Fund is based on the market value (or price) of
the securities the Fund holds. You may lose money on your investment due to
unpredictable
declines in the value of individual securities and/or periods of below-average
performance in individual securities, industries or in the equity market
as a whole. This may impact a Fund’s performance and may result in higher
portfolio turnover, which may increase the tax liability to taxable shareholders
and the expenses incurred by the Fund. The market value of a security can change
daily due to political, economic and other events that affect the
securities markets generally, as well as those that affect particular companies
or governments. These price movements, sometimes called volatility, will
vary
depending on the types of securities a Fund owns and the markets in which they
trade. Historically, the equity markets have moved in cycles, and the
value
of a Fund’s equity securities may fluctuate drastically from day to day.
Individual companies may report poor results or be negatively affected by
industry
and/or economic trends and developments. The prices of securities issued by such
companies may suffer a decline in response to such trends and developments. Rule
144A securities may be less liquid than other equity securities.
Small-capitalization and emerging growth companies may be subject to
more
abrupt price movements, limited markets and less liquidity than larger, more
established companies, which could adversely affect the value of a Fund’s
portfolio.
Growth stocks are generally more sensitive to market movements than other types
of stocks primarily because their stock prices are based heavily on
future expectations. If the Adviser’s assessment of the prospects for a
company’s growth is wrong, or if the Adviser’s judgment of how other investors
will value
the company’s growth is wrong, then the price of the company’s stock may fall or
not approach the value that the Adviser has placed on it.
Value stocks
can perform differently from the market as a whole and from other types of
stocks. Value stocks also present the risk that their lower valuations fairly
reflect
their business prospects and that investors will not agree that the stocks
represent favorable investment opportunities, and they may fall out of favor
with
investors and underperform growth stocks during any given period.
Common stocks represent an equity or ownership interest in an issuer. In the
event an
issuer is liquidated or declares bankruptcy, the claims of owners of the
issuer’s bonds generally take precedence over the claims of those who own
preferred
stock or common stock.
ESG Investing Risk
A
Fund’s ESG investment approach could cause a Fund to perform differently,
including underperforming, compared to funds that do not have such an
approach
or compared to the market as a whole. A
Fund’s application of ESG-related considerations may affect the Fund’s exposure
to certain issuers, industries,
sectors, style factors or other characteristics and may impact the relative
performance of a
Fund—positively or negatively—depending on the relative
performance of such investments (e.g.,
forgoing opportunities to buy or sell certain investments when it might be
advantageous or disadvantageous to
do so). The securities of certain issuers that rate favorably under a given
subadviser’s ESG rating methodology may underperform similar issuers that do
not
rate as well. As a result, certain subadvisers may underperform as compared to
funds that do not screen or rate issuers based on ESG factors or funds
that
use a different ESG methodology. Views on what constitutes “ESG investing”, and
therefore what investments are appropriate for a fund that has an ESG
investment approach, may differ by fund, adviser and investor. In evaluating an
investment, a portfolio manager may be reliant upon information and data
that may turn out to be incomplete, inaccurate or unavailable, which may
negatively impact the portfolio manager’s assessment of an issuer’s
Investment
Goals, Strategies and Risks
ESG performance
or a Fund’s performance generally. There is no guarantee that a portfolio
manager’s efforts to select investments based on ESG practices will
be successful.
Foreign Securities Risk
Foreign
securities risk is the risk associated with investments in issuers located in
foreign countries. A Fund’s investments in foreign securities may experience
more rapid and extreme changes in value than investments in securities of U.S.
issuers. The securities markets of many foreign countries are relatively
small, with a limited number of issuers and a small number of securities. In
addition, foreign companies often are not subject to the same degree of
regulation
as U.S. companies. Reporting, accounting, disclosure, custody and auditing
standards and practices of foreign countries differ, in some cases significantly,
from U.S. standards and practices, and are often not as rigorous. The Public
Company Accounting Oversight Board, which regulates auditors of U.S.
public companies, is unable to inspect audit work papers in certain foreign
countries. Many countries, including developed nations and emerging markets,
are faced with concerns about high government debt levels, credit rating
downgrades, the future of the euro as a common currency, possible government
debt restructuring and related issues, all of which may cause the value of a
Fund’s non-U.S. investments to decline. Nationalization, expropriation
or
confiscatory taxation, currency blockage, the imposition of sanctions or threat
thereof by other countries (such as the United States), political changes or
diplomatic
developments, as well as civil unrest, geopolitical tensions, wars and acts of
terrorism, may impair a Fund’s ability to buy, sell, hold, receive,
deliver,
or otherwise transact in certain securities and may also cause the value of a
Fund’s non-U.S. investments to decline. When imposed, foreign withholding
or other taxes reduce a Fund’s return on foreign securities. In the event of
nationalization, expropriation, confiscation, or other government action,
intervention,
or restriction, a Fund could lose its entire investment in a particular foreign
issuer or country. Investments in emerging markets may be subject to
these
risks to a greater extent than those in more developed markets and securities of
developed market companies that conduct substantial business in emerging
markets may also be subject to greater risk. These risks also apply to
securities of foreign issuers traded in the United States or through depositary
receipt
programs such as American Depositary Receipts. To the extent a Fund invests a
significant portion of its assets in a specific geographic region, the
Fund
may have more exposure to regional political, economic, environmental,
credit/counterparty and information risks. In addition, foreign securities may
be subject
to increased credit/counterparty risk because of the potential difficulties of
requiring foreign entities to honor their contractual commitments.
Emerging Markets Risk
In
addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising from political or
economic
instability, war, nationalization or confiscatory taxation, currency exchange or
repatriation restrictions, sanctions by other countries (such as the
United
States or the European Union), new or inconsistent government treatment of or
restrictions on new issuers and instruments, and an issuer’s unwillingness
or inability to make dividend, principal or interest payments on its securities.
Emerging markets companies may be smaller and have shorter operating
histories than companies in developed markets. In addition, pandemics and
outbreaks of contagious diseases may exacerbate pre-existing problems
in emerging market countries with less established health care
systems.
Economic and Political Risks.
Emerging market countries often experience instability in their political and
economic structures and have less market depth, infrastructure,
capitalization and regulatory oversight than more developed markets. Government
actions could have a significant impact on the economic conditions
in such countries, which in turn would affect the value and liquidity of the
assets of a Fund invested in emerging market securities. Specific risks
that
could decrease a Fund’s return include seizure of a company’s assets,
restrictions imposed on payments as a result of blockages on foreign currency
exchanges
or sanctions and unanticipated social or political occurrences.
The
ability of the government of an emerging market country to make timely payments
on its debt obligations will depend on many factors, including the extent
of its reserves, fluctuations in interest rates and access to international
credit and investments. A country that has non-diversified exports or relies on
certain
key imports will be subject to greater fluctuations in the pricing of those
commodities. Failure to generate sufficient earnings from foreign trade will
make
it difficult for an emerging market country to service its foreign
debt.
Companies
trading in developing securities markets are generally smaller and have shorter
operating histories than companies trading in developed markets. Foreign
investors may be required to register the proceeds of sales. Settlement of
securities transactions in emerging markets may be subject to risk of loss
and
may be delayed more often than transactions settled in the United States, in
part because a Fund will need to use brokers and counterparties that are
less
well capitalized, and custody and registration of assets in some countries may
be unreliable compared to more developed countries. Disruptions resulting
from
social and political factors may cause the securities markets to close. If
extended closings were to occur, the liquidity and value of a Fund’s assets
invested
in corporate debt obligations of emerging market companies would
decline.
Investment Controls; Repatriation.
Foreign investment in emerging market country debt securities is restricted or
controlled to varying degrees. These restrictions
may at times limit or preclude foreign investment in certain emerging market
country debt securities. Certain emerging market countries require government
approval of investments by foreign persons, limit the amount of investments by
foreign persons in a particular issuer, limit investments by foreign
persons
only to a specific class of securities of an issuer that may have less
advantageous rights than the classes available for purchase by domiciliaries of
the
countries and/or impose additional taxes or controls on foreign investors or
currency transactions. Certain emerging market countries may also restrict
investment
opportunities in issuers in industries deemed important to national
interests.
Emerging
market countries may require governmental approval for the repatriation of
investment income, capital or proceeds of sale of securities by foreign
investors.
In addition, if a deterioration occurs in an emerging market country’s balance
of payments, the country could impose temporary restrictions on foreign
capital remittances. A Fund could be adversely affected by delays in, or a
refusal to grant, any required governmental approval for repatriation of
Investment
Goals, Strategies and Risks
capital,
as well as by the application to a Fund of any restrictions on investments.
Investing in local markets in emerging market countries may require a Fund
to
adopt special procedures, seek local governmental approvals or take other
actions, each of which may involve additional costs to a Fund.
Mortgage-Related and Asset-Backed Securities
Risk
In
addition to the risks associated with investments in fixed-income securities
generally (for example, credit, liquidity, inflation and valuation risk),
mortgage-related
and asset-backed securities are subject to the risks of the mortgages and assets
underlying the securities as well as prepayment risk, the risk that the
securities
may be prepaid and result in the reinvestment of the prepaid amounts in
securities with lower yields than the prepaid obligations. Conversely, there
is
a risk that a rise in interest rates will extend the life of a mortgage-related
or asset-backed security beyond the expected prepayment time, typically
reducing
the security’s value, which is called extension risk. A Fund also may incur a
loss when there is a prepayment of securities that were purchased at a
premium. The
value of some mortgage-related securities and other asset-backed securities in
which a Fund invests may be particularly sensitive to changes in prevailing
interest rates, and the ability of a Fund to successfully utilize these
instruments may depend in part upon the ability of the Fund’s Adviser
to
forecast
interest rates and other economic factors correctly. The risk of non-payment is
greater for mortgage-related securities that are backed by loans made
to
borrowers with weakened credit histories or with a lower capacity to make timely
payments on their loans, or which may be negatively impacted by economic
and market conditions, but a level of risk exists for all loans. Market factors
adversely affecting mortgage loan repayments may include a general economic
downturn or recession, high unemployment, a general slowdown in the real estate
market, a drop in the market prices of real estate, or an increase in
interest rates resulting in higher mortgage payments by holders of adjustable
rate mortgages. During periods of difficult economic conditions,
delinquencies
and losses on commercial mortgage-backed investments in particular generally
increase, including as a result of the effects of those conditions on
commercial real estate markets, the ability of commercial tenants to make loan
payments, and the ability of a property to attract and retain commercial
tenants. A
Fund’s investments in other asset-backed securities are subject to risks similar
to those associated with the servicing of those assets. These types of
securities may also decline for reasons associated with the underlying
collateral. A
dollar roll involves potential risks of loss that are different from those
related
to the securities underlying the transactions. A Fund may be required to
purchase securities at a higher price than may otherwise be available on the
open
market. Since the counterparty in the transaction is required to deliver a
similar, but not identical, security to the Fund, the security that the Fund is
required
to buy under the dollar roll may be worth less than an identical security. There
is no assurance that a Fund’s use of cash that it receives from a dollar
roll
will provide a return that exceeds borrowing costs.
Allocation Risk
A
Fund’s allocations between asset classes and market exposures may not be optimal
in every market condition and may adversely affect the Fund’s performance.
You could lose money on your investment in a Fund as a result of this
allocation.
Credit/Counterparty Risk
Credit/counterparty
risk is the risk that the issuer or guarantor of a fixed-income security, or the
counterparty to a derivative or other transaction, will be unable
or unwilling to make timely payments of interest or principal or to otherwise
honor its obligations. As a result, a Fund may sustain losses or be unable
or
delayed in its ability to realize gains. A Fund will be subject to
credit/counterparty risk with respect to the counterparties to its derivatives
transactions. Many
of the protections afforded to participants on organized exchanges and clearing
houses, such as the performance guarantee given by a central clearing
house,
are not available in connection with over-the-counter (“OTC”) derivatives
transactions, such as foreign currency transactions. For centrally cleared
derivatives,
such as cleared swaps, futures and many options, the primary credit/counterparty
risk is the creditworthiness of a Fund’s clearing broker and the central
clearing house itself.
Regulatory
requirements may also limit the ability of a Fund to protect its interests in
the event of an insolvency of a derivatives counterparty.
In the event of a counterparty’s (or its affiliate’s) insolvency, a Fund’s
ability to exercise remedies, such as the termination of transactions,
netting
of obligations and realization on collateral, could be stayed or eliminated
under special resolution regimes adopted in the United States, the European
Union,
the United Kingdom and various other jurisdictions. Such regimes provide
government authorities with broad authority to intervene when a financial
institution
is experiencing financial difficulty. In particular, with respect
to counterparties who are subject to such proceedings in the European Union
and the United
Kingdom, the liabilities of such counterparties to a Fund could be reduced,
eliminated, or converted to equity in such counterparties (sometimes
referred
to as a “bail in”).
Currency Risk
Fluctuations
in the exchange rates between different currencies may negatively affect an
investment. A Fund may be subject to currency risk because it may invest
in currency-related instruments and/or securities or other instruments
denominated in, or that generate income denominated in, foreign currencies. The
market
for some or all currencies may from time to time have low trading volume and
become illiquid, which may prevent a Fund from effecting a position or
from
promptly liquidating unfavorable positions in such markets, thus subjecting the
Fund to substantial losses. A Fund may elect not to hedge currency risk,
or
may hedge such risk imperfectly, which may cause the Fund to incur losses that
would not have been incurred had the risk been hedged.
Cybersecurity and Technology Risk
The
Funds, their service providers,
and other market participants increasingly depend on complex information
technology and communications systems, which are
subject to a number of different threats and risks that could adversely affect
the Funds and their shareholders. These risks include, among others, theft,
misuse,
and improper release of confidential or highly sensitive information relating to
the Funds and their shareholders, as well as compromises or failures
to
systems, networks, devices and applications relating to the operations of the
Funds and their service providers, including those relating to the performance
and
effectiveness of security procedures used by a Fund or its service providers to
protect a Fund’s assets. Power outages, natural disasters, equipment
malfunctions
and processing errors that threaten these systems, as well as market events that
occur at a pace that overloads these systems, may also disrupt
Investment
Goals, Strategies and Risks
business
operations or impact critical data. There may be an increased risk of
cyber-attacks during periods of geopolitical or military conflict, and
geopolitical tensions
may increase the scale and sophistication of deliberate cybersecurity attacks,
particularly those from nation-states or from entities with nation-state
backing.
Any problems relating to the performance and effectiveness of security
procedures used by a Fund or its service providers to protect a Fund’s assets,
such
as algorithms, codes, passwords, multiple signature systems, encryption and
telephone call-backs, may have an adverse impact on an investment in a
Fund.
Cybersecurity and other operational and technology issues may result in
financial losses to the Funds and their shareholders, impede business
transactions,
violate privacy and other laws, subject the Funds to certain regulatory
penalties and reputational damage, and increase compliance costs and
expenses.
Furthermore, as a Fund’s assets grow, it may become a more appealing target for
cybersecurity threats such as hackers and malware. Although the Funds
have developed processes, risk management systems and business continuity plans
designed to reduce these risks, the Funds do not directly control the
cybersecurity defenses, operational and technology plans and systems of their
service providers, financial intermediaries and companies in which they
invest
or with which they do business. The Funds and their shareholders could be
negatively impacted as a result. Similar types of cybersecurity risks also are
present
for issuers of securities in which the Funds invest, which could result in
material adverse consequences for such issuers, and may cause the Funds’
investment
in such securities to lose value.
Derivatives Risk
The
Funds will be exposed to Derivatives Risk both directly and through their
investments in the underlying funds.
As described herein and in the SAI, the use of
derivatives involves special risks. Derivatives are financial contracts whose
value depends upon or is derived from the value of an underlying asset,
reference
rate or index. There is no guarantee that the Fund’s use of derivatives will be
effective or that suitable transactions will be available. Even a small
investment
in derivatives may give rise to leverage risk and can have a significant impact
on a Fund’s exposure to securities market values, interest rates, currency
exchange rates or other markets. It is possible that a Fund’s liquid assets may
be insufficient to support its obligations under its derivatives positions.
A Fund’s use of derivatives, such as forward currency contracts, structured
notes, futures transactions and swap transactions, involves other risks,
such
as credit/counterparty risk relating to the other party to a derivative contract
(which is generally greater for OTC derivatives than for centrally cleared
derivatives),
the risk of difficulties in pricing and valuation, the risk that changes in the
value of a derivative may not correlate as expected with relevant assets,
rates or indices, liquidity risk and the risk of losing more than any amounts
paid or margin transferred to initiate derivatives positions. The Fund may
be
required to sell other securities at inopportune times to meet collateral
requirements on its derivative transactions. There is also the risk that a Fund
may be
unable to terminate or sell a derivatives position at an advantageous time or
price. The use of derivatives may cause a Fund to incur losses greater than
those
which would have occurred had derivatives not been used. Losses resulting from
the use of derivatives will reduce a Fund’s Net Asset Value (“NAV”),
and
possibly income. To the extent that a Fund uses a derivative for purposes other
than as a hedge, or if a Fund hedges imperfectly, the Fund is directly
exposed
to the risks of that derivative and any loss generated by the derivative will
not be offset by a gain. When used, derivatives may affect the amount,
timing,
or character of distributions payable to, and thus taxes payable by,
shareholders. Similarly, for accounting and performance reporting purposes,
income
and gain characteristics may be different than if the Fund held the underlying
securities or other assets directly.
Rule
18f-4 under the Investment Company Act of 1940, as amended (the “1940 Act”),
governs the use of derivative investments and certain financing transactions
by registered investment companies. Among other things, Rule 18f-4 requires
funds that invest in derivative instruments beyond a specified limited
amount to apply a value-at-risk based limit to their use of derivative
instruments and financing transactions and to adopt and implement a derivatives
risk
management program. A fund that uses derivative instruments in a limited amount
is not subject to the full requirements of Rule 18f-4. Compliance with
the
rule by the Funds could, among other things, make derivatives more costly, limit
their availability or utility, or otherwise adversely affect a Fund’s
performance.
Inflation-Protected Securities
Risk
Inflation-protected
securities are fixed-income securities whose principal value is periodically
adjusted according to the rate of inflation. The interest rate on inflation-protected
securities is fixed at issuance, but over the life of the bond this interest may
be paid on an increasing or decreasing principal value that has
been adjusted for inflation based upon an index intended measure the rate of
inflation. Although repayment of the original bond principal upon maturity is
guaranteed,
the market value of inflation protected securities is not guaranteed, and will
fluctuate. There can be no assurance that the relative index will accurately
measure the rate of inflation, in which case the securities may not work as
intended.
Interest Rate Risk
Interest
rate risk is the risk that changes in interest rates will affect the value of a
Fund’s investments in fixed-income securities, such as bonds, notes,
asset-backed
securities and other income-producing securities and derivatives. Fixed-income
securities are obligations of the issuer to make payments of principal
and/or
interest on future dates. Increases in interest rates may cause the value of a
Fund’s investments to decline. In addition, the value of certain derivatives
(such
as interest rate futures) is related to changes in interest rates and their
value may suffer significant decline as a result of interest rate changes. A
prolonged
period of low interest rates may cause a Fund to have a low or negative yield,
potentially reducing the value of your investment. Generally, the value
of fixed-income securities, including short-term fixed-income securities, rises
when prevailing interest rates fall and falls when interest rates rise.
Interest
rate risk generally is greater for funds that invest in fixed-income
securities with relatively longer durations than for funds that invest in
fixed-income securities
with shorter durations. A significant change in interest rates could cause a
Fund’s share price (and the value of your investment) to change. The
value
of zero-coupon and pay-in-kind bonds may be more sensitive to fluctuations in
interest rates than other fixed-income securities. Interest rates can also
change
in response to the supply and demand for credit, inflation rates, and other
factors. Potential future changes in government and/or central bank monetary
policy and action may also affect the level of interest rates. Recently, there
have been inflationary price movements, which have caused the fixed
Investment
Goals, Strategies and Risks
income
securities markets to experience heightened levels of interest volatility and
liquidity risk. Monetary policy measures have in the past, and may in the
future,
exacerbate risks associated with rising interest rates.
Investments in Other Investment Companies
Risk
A Fund
will indirectly bear the management, service and other fees of any other
investment companies, including ETFs, in
which it invests in addition to its own
expenses. A Fund is also indirectly exposed to the same risks as the underlying
funds in proportion to the allocation of the Fund’s assets among the
underlying
funds. In addition, investments in ETFs have unique characteristics, including,
but not limited to, the expense structure and additional expenses associated
with investing in ETFs.
Large Investor Risk
Ownership
of shares of a Fund may be concentrated in one or a few large investors. Such
investors may redeem shares in large quantities or on a frequent basis.
If a large investor redeems a portion or all of its investment in a Fund or
redeems frequently, the Fund may be forced to sell investments at unfavorable
times
or prices, which can affect the performance of the Fund and may increase
realized capital gains, including short-term capital gains taxable as ordinary
income.
In addition, such transactions may accelerate the realization of taxable income
to shareholders if a Fund’s sales of investments result in gains, and
also
may increase transaction costs. These transactions potentially limit the use of
any capital loss carryforwards and certain other losses to offset future
realized
capital gains (if any). Such transactions may also increase a Fund’s expenses or
could result in a Fund’s current expenses being allocated over a smaller
asset base, leading to an increase in the Fund’s expense ratios.
Leverage Risk
Leverage
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small index, market or
asset-price
movements into larger changes in value. Leverage magnifies the potential for
gain and the risk of loss. As a result, a relatively small decline in the
value
of the underlying investments could result in a relatively large loss. The use
of leverage will increase the impact of gains and losses on an underlying
fund’s
returns, and may lead to significant losses if investments are not
successful.
Liquidity Risk
Liquidity
risk is the risk that a Fund may be unable to find a buyer for its
investments when it seeks to sell them or to receive the price it expects.
Decreases in the
number of financial institutions willing to make markets in a Fund’s
investments or in their capacity or willingness to transact may increase the
Fund’s exposure
to this risk. Events that may lead to increased redemptions, such as market
disruptions or increases in interest rates, may also negatively impact the
liquidity
of a Fund’s investments when it needs to dispose of them. Markets may become
illiquid quickly. If a Fund is forced to sell its investments at an unfavorable
time and/or under adverse conditions in order to meet redemption requests, such
sales could negatively affect the Fund. Securities
acquired in a private
placement, such as Rule 144A securities and
privately negotiated credit, equity and other investments, as applicable, are
generally subject to significant
liquidity risk because they are subject to strict restrictions on resale and
there may be no liquid secondary market or ready purchaser for such securities.
Derivatives, and particularly OTC derivatives, are generally subject to
liquidity risk as well.
In other circumstances, liquid investments may become illiquid.
Liquidity issues may also make it difficult to value a Fund’s investments. A
Fund may invest in liquid investments that become illiquid due to financial
distress,
or geopolitical events such as sanctions, trading halts or wars. In some cases,
especially during periods of market turmoil, there may be no buyers or
sellers
for securities in certain asset classes and a redemption may dilute the interest
of the remaining shareholders.
Management Risk
Management
risk is the risk that the portfolio managers’ investment techniques could fail
to achieve a Fund’s objective and could cause your investment in a Fund
to lose value. Each Fund is subject to management risk because each Fund is
actively managed. The portfolio managers will apply their investment
techniques
and risk analyses in making investment decisions for the Funds, but there can be
no guarantee that such decisions will produce the desired results.
For example, securities that the portfolio managers expect to appreciate in
value may, in fact, decline. Similarly, in some cases, derivative and other
investment
techniques may be unavailable or the portfolio managers may determine not to use
them, even under market conditions where their use could have
benefited the Funds.
Market/Issuer Risk
The
market value of a Fund’s investments will move up and down, sometimes rapidly
and unpredictably, based upon political, regulatory, market, economic,
and
social conditions, as well as developments that impact specific economic
sectors, industries, or segments of the market, including conditions that
directly relate
to the issuers of a Fund’s investments, such as management performance,
financial condition, and demand for the issuers’ goods and services. A Fund
is
subject to the risk that geopolitical events will adversely affect global
economies and markets. War, terrorism, and related geopolitical events have led,
and in
the future may lead, to increased short-term market volatility and may have
adverse long-term effects on global economies and markets or on specific
sectors,
industries and countries. Likewise, natural and environmental disasters and
epidemics or pandemics may be highly disruptive to economies and markets
or on specific sectors, industries and countries. Events such as these and
their impact on the Funds may be difficult or impossible to
predict.
Retirement Risk
Each
Fund is not a complete retirement program and there is no guarantee that an
investment in a Fund will provide sufficient retirement income at or through
retirement.
Achieving your retirement goals will depend on many factors, including the
amount you save and the period over which you do so, your expected retirement
date, your individual retirement needs, your other sources of income and other
assets, and inflation. The Funds’ glide path (or allocation
Investment
Goals, Strategies and Risks
methodology)
will not eliminate the market volatility that could reduce the amount available
for you to withdraw when you intend to begin withdrawing your investment
in the Fund. Although each Fund will become more conservative over time (meaning
that the Fund will allocate more of its assets to fixed-income investments
than equity investments as it nears the target retirement date), each Fund will
continue to be exposed to market risk and the share price of the Fund
will fluctuate, even after the Fund reaches its most conservative allocation.
This means that you could lose money by investing in the Fund, including
losses
near, at, or after the target retirement date. In addition, your risk tolerance
may change over time, including in ways that do not correlate perfectly with
the
Funds’ glide path. There can be no assurance that an investment in a Fund will
provide income at, and through the years following, the target retirement
date
in amounts adequate to meet your retirement goals. You should consider these and
other factors when selecting an overall retirement strategy, including
an
investment in a Fund.
Small- and Mid-Capitalization Companies
Risk
Compared
to companies with large market capitalization, small- and mid-capitalization
companies are more likely to have limited product lines, markets or financial
resources, or to depend on a small, inexperienced management group. Securities
of these companies often trade less frequently and in limited volume
and their prices may fluctuate more than stocks of large-capitalization
companies. Securities of small- and mid-capitalization companies may
therefore
be more vulnerable to adverse developments than those of large-capitalization
companies. As a result, it may be relatively more difficult for a Fund
to
buy and sell securities of small- and mid-capitalization companies.
Tracking Error Risk
Although
the Funds do not seek to track any particular index, the AIA U.S. Large Cap
Value ESG Segment, AIA U.S. Small/Mid Cap ESG Segment, AIA International
Developed Markets Equity ESG Segment and AIA U.S. Large Cap Core ESG Segment
(each, an “ AIA Segment”) are each designed to reflect the performance
results and risk characteristics of the S&P 500® Value Index (with respect
to the AIA U.S. Large Cap Value ESG Segment), S&P 1000® Index (with
respect to the AIA U.S. Small/Mid Cap ESG Segment), MSCI EAFE Index (with
respect to the AIA International Developed Markets Equity ESG Segment)
and
S&P 500® Index (with respect to the AIA U.S. Large Cap Core ESG Segment).
There is a risk that the performance of an AIA Segment will diverge from
the
performance of its respective Index, potentially materially.
Management
Team
Meet
the Funds’ Investment Adviser and Subadvisers
The
Natixis Funds family currently includes 35 mutual funds (the “Natixis Funds”).
The Natixis Funds family had combined assets of $49.8 billion as of December
31, 2023. Natixis Funds are distributed through Natixis Distribution, LLC
(the “Distributor”).
Adviser
Natixis
Advisors, located at 888 Boylston Street, Suite 800, Boston, Massachusetts
02199-8197, serves as the adviser to each of the Funds. Natixis Advisors
oversees,
evaluates, and monitors the subadvisory services provided to each Fund. It also
provides general business management and administration to each Fund.
Natixis Advisors, through its Natixis Investment Managers Solutions division,
makes investment decisions with respect to the AIA U.S. Large Cap Value
ESG
Segment, AIA U.S. Small/Mid Cap ESG Segment, AIA International Developed Markets
Equity ESG Segment and AIA U.S. Large Cap Core ESG Segment of
each Fund.
The
maximum aggregate advisory fee payable by each Fund is equal to the sum of: (i)
up to 0.25% of the average daily net assets of each segment managed directly
by Natixis Advisors and (ii) 0.70% of the average daily net assets of any
segment managed by any subadviser. The advisory fee rates currently paid
with
respect to the AIA U.S. Large Cap Value ESG Segment, the AIA U.S. Small/Mid Cap
ESG Segment, the AIA International Developed Markets Equity ESG Segment
and the AIA U.S. Large Cap Core ESG Segment, each managed directly by Natixis
Advisors, are 0.165%, 0.20%, 0.20% and 0.165%, respectively, of the
average daily net assets of such segments. The advisory fee rate currently paid
with respect to the Harris Associates Large Cap Value Segment is 0.52%
of
the average daily net assets of such segment. The advisory fee rate currently
paid with respect to the Loomis Sayles All Cap Growth Segment and the
Loomis
Sayles Core Fixed Income Segment are 0.35% and 0.15%, respectively, of the
average daily net assets of such segment. Each Fund may add additional
segments to be managed by either Natixis Advisors or a subadviser in the future,
provided that the advisory fee rates applicable to such segments do
not exceed 0.25% of the average daily net assets of any segment managed directly
by Natixis Advisors and 0.70% of the average daily net assets of any
segment
managed by any subadviser.
The
following table shows the combined advisory and subadvisory fees paid by the
Funds during the fiscal year ended January 31, 2024 as a percentage of
each
Fund’s average daily net assets (after waiver):
|
| |
|
Fund |
Aggregate Advisory Fee |
|
Natixis
Sustainable Future 2015 Fund |
0.12% |
|
Natixis
Sustainable Future 2020 Fund |
0.13% |
|
Natixis
Sustainable Future 2025 Fund |
0.15% |
|
Natixis
Sustainable Future 2030 Fund |
0.16% |
|
Natixis
Sustainable Future 2035 Fund |
0.18% |
|
Natixis
Sustainable Future 2040 Fund |
0.19% |
|
Natixis
Sustainable Future 2045 Fund |
0.19% |
|
Natixis
Sustainable Future 2050 Fund |
0.20% |
|
Natixis
Sustainable Future 2055 Fund |
0.21% |
|
Natixis
Sustainable Future 2060 Fund |
0.21% |
|
Natixis
Sustainable Future 2065 Fund |
0.21% |
Investment
Subadvisers
Harris Associates,
located at 111 S. Wacker Drive, Suite 4600, Chicago, Illinois 60606, serves as a
subadviser to the Funds. Harris Associates managed approximately
$101.3 billion in assets as of December 31, 2023, and, together with its
predecessor, has managed investments since 1976. It also manages investments
for other mutual funds as well as assets of individuals, trusts, retirement
plans, endowments, foundations, and several private partnerships.
Loomis Sayles,
located at One Financial Center, Boston, Massachusetts 02111, serves as a
subadviser to the Funds. Founded in 1926, Loomis Sayles is one of
the oldest investment advisory firms in the United States with over $335.2
billion in assets under management as of December 31, 2023. Loomis Sayles is
well
known for its professional research staff, which is one of the largest in the
industry.
Information About the Manager-of-Manager
Structure
Natixis
Advisors and the Funds
have received an exemptive order from the SEC (the “Order”), which permits
Natixis Advisors, subject to approval by the Board of
Trustees but without shareholder approval, to hire or terminate, and to modify
any existing or future subadvisory agreement with, subadvisers that are not
affiliated
with Natixis Advisors as well as subadvisers that are indirect or direct
wholly-owned subsidiaries of Natixis Advisors or of another company that,
indirectly
or directly, wholly owns Natixis Advisors. Shareholders of each Fund have
already approved the Fund’s operation under the manager-of-managers
structure
contemplated by the Order. If a new subadviser is hired for each
Fund, shareholders will receive information about the new subadviser within 90
days
of the change.
A
discussion of the factors considered by the Board of Trustees in approving the
Funds’
investment advisory and subadvisory contracts is available in the
Funds’
shareholder report covering the period in which the approval
occurred.
The
Funds consider the series of Natixis Funds Trust I, Natixis Funds Trust II,
Natixis Funds Trust IV, Gateway Trust, Loomis Sayles Funds I, Loomis Sayles
Funds
II, Natixis ETF Trust and Natixis ETF Trust II, all of which are advised or
subadvised by Natixis
Advisors, Loomis Sayles, AEW Capital Management, L.P., Gateway
Investment Advisers, LLC, Mirova US, Harris Associates or Vaughan Nelson
Investment Management, L.P. (collectively, the “Affiliated Investment
Managers”),
to be part of the “same group of investment companies” under Section 12(d)(1)(G)
of the 1940
Act for the purchase of other investment companies.
The Affiliated Investment Managers are all under common control.
Portfolio Trades
In
placing portfolio trades, a Fund’s adviser or subadviser may use brokerage firms
that market the Funds’ shares or are affiliated with any adviser or subadviser.
In placing trades, any adviser or subadviser will seek to obtain the best
combination of price and execution, which involves a number of subjective
factors.
Such portfolio trades are subject to applicable regulatory restrictions and
related procedures adopted by the Board of Trustees.
Meet
the Funds’ Portfolio Managers
The
following portfolio managers have had joint and primary responsibility for
determining each
Fund’s available underlying funds and separately managed segments
and supervising the activities of each
Fund’s subadvisers since the dates indicated below. The portfolio managers also
determine each
Fund’s glide path
and target allocations:
Natixis Advisors
Marina
Gross has been a co-portfolio manager of the Funds since 2018. Ms. Gross joined
Natixis Advisors in 2003 and currently serves as Executive Vice President
and portfolio manager. She received a BSBA from Boston University. Ms. Gross has
over 25 years of investment experience.
Daniel
Price, CFA®,
FRM®
has been a co-portfolio manager of the Funds since 2018. Mr. Price joined
Natixis Advisors in 2006 and currently serves as Chief Investment
Officer of Overlay Management for the Natixis Investment Managers Solutions
division of Natixis Advisors and portfolio manager. He received a BS
in biology from Middlebury College. Mr. Price holds the designation of Chartered
Financial Analyst®
and has over 25 years of investment experience.
Christopher
Sharpe, CFA®
has been a co-portfolio manager of the Funds since 2019 and lead portfolio
manager since 2020. Mr. Sharpe joined Natixis Advisors
in 2019 and currently serves as Chief Investment Officer for the Natixis
Investment Managers Solutions division of Natixis Advisors and portfolio
manager.
Prior to joining Natixis Advisors, he was a portfolio manager at Fidelity
Investments and an investment policy officer at John Hancock. He received
a
BS in applied mathematics from Brown University. Mr. Sharpe holds the
designation of Chartered Financial Analyst®
and has over 35 years of investment experience.
Please
see the SAI for information on portfolio manager compensation, other accounts
under management by the portfolio managers and the portfolio managers’
ownership of securities in the Funds.
Additional
Information
The
Funds enter into contractual arrangements with various parties, including, among
others, the Adviser, Subadvisers, the Distributor and the Funds’ custodian
and transfer agent, who provide services to the Funds. Shareholders are not
parties to, or intended to be third-party beneficiaries of, any of those
contractual
arrangements, and those contractual arrangements are not intended to create in
any individual shareholder or group of shareholders any right to enforce
such arrangements against the service providers or to seek any remedy thereunder
against the service providers, either directly or on behalf of the Funds.
This
Prospectus provides information concerning the Funds that you should consider in
determining whether to purchase shares of the Funds. None of this Prospectus,
the SAI or any contract that is an exhibit to the Funds’ registration statement,
is intended to, nor does it, give rise to an agreement or contract between
the Funds and any investor, or give rise to any contract or other rights in any
individual shareholder, group of shareholders or other person other than
any
rights conferred explicitly by applicable federal or state securities laws that
may not be waived.
Fund
Services
Investing
in the Funds
Choosing
a Share Class
Each
class has different costs associated with buying, selling and holding Fund
shares, which allows you to choose the class that best meets your needs. Which
class is best for you depends upon a number of factors, including the size of
your investment and how long you intend to hold your shares. Certain
share classes and certain shareholder features may not be available to you if
you hold your shares through a financial intermediary. Your financial
representative
can help you decide which class of shares is most appropriate for you. The Funds
may engage financial intermediaries to receive purchase, exchange
and sell orders on their behalf. Accounts established directly with the Funds
will be serviced by the Funds’ transfer agent. The Funds, the Funds’
transfer
agent and the Distributor do not provide investment advice.
Class N Shares
| • |
You
have a minimum initial investment of $1,000,000. There are several ways to
waive this minimum. See the section “Purchase and Sale of Fund
Shares.” |
| • |
You
do not pay a sales charge when you buy Class N shares. All of your money
goes to work for you right away. |
| • |
You
do not pay a sales charge on
redemptions. |
| • |
You
may pay lower annual expenses than Class Y
shares. |
Class Y Shares
| • |
Class Y shares are not currently available for
purchase. |
| • |
You
have a minimum initial investment of $100,000. There are several ways to
waive this minimum. See the section “Purchase and Sale of Fund
Shares.” |
| • |
You
do not pay a sales charge when you buy Class Y shares. All of your money
goes to work for you right away. |
| • |
You
do not pay a sales charge on
redemptions. |
| • |
You
may pay higher annual expenses than Class N
shares. |
For
information about a Fund’s expenses, see the section “Fund Fees & Expenses”
in each Fund Summary. Information about purchasing shares of the Funds
is
available on the Funds’ website at im.natixis.com.
Compensation
to Securities Dealers
The
Funds may make payments to financial intermediaries that provide shareholder
services to shareholders whose shares are held of record in omnibus accounts,
other group accounts (for example, 401(k) plans) or accounts traded through
registered securities clearing agents to compensate those intermediaries
for services they provide to such shareholders, including, but not limited to,
sub-accounting, sub-transfer agency, similar shareholder or participant
recordkeeping, shareholder or participant reporting, or shareholder or
participant transaction processing (“recordkeeping and processing-related
services”).
The actual payments, and the services provided, vary from firm to firm. These
fees are paid by the Funds (with the exception of Class N shares,
which
do not bear such expenses) in light of the fact that other costs may be avoided
by the Funds where the intermediary, not the Funds’ service provider,
provides
services to Fund shareholders.
The
Distributor, the Adviser and each of their respective affiliates may, out
of their own resources, which generally come directly or indirectly from fees
paid by
the Funds, make payments to certain dealers and other financial intermediaries
that satisfy certain criteria established from time to time by the Distributor.
Payments
may vary based on sales, the amount of assets a dealer’s or intermediary’s
clients have invested in the Funds, and other factors. These payments
may
also take the form of sponsorship of seminars or informational meetings or
payments for attendance by persons associated with a dealer or intermediary
at
informational meetings. The Distributor and its affiliates may also make
payments for recordkeeping and processing-related services to financial
intermediaries
that sell Fund shares; such payments will not be made with respect to Class N
shares. These payments may be in addition to payments made by
a Fund for similar services.
The
payments described in this section, which may be significant to the dealers and
the financial intermediaries, may create an incentive for a dealer or
financial
intermediary or their representatives to recommend or sell shares of the
Funds or a particular share class over other mutual funds or share classes.
Additionally,
these payments may result in the Funds receiving certain marketing or servicing
advantages that are not generally available to mutual funds that do
not make such payments, including placement on a sales list, including a
preferred or select sales list, or in other sales programs. These payments,
which are
in addition to any amounts you may pay your dealer or other financial
intermediary, may create potential conflicts of interest between an investor and
a dealer
or other financial intermediary who is recommending a particular mutual fund
over other mutual funds. Before investing, you should consult with your
financial
representative and review carefully any disclosure by the dealer or other
financial intermediary as to the services it provides, what monies it
receives
from mutual funds and their advisers and distributors, as well as how your
financial representative is compensated. Please see the SAI for additional
information
about payments made by the Distributor and its affiliates to dealers and
intermediaries.
How
to Purchase Shares
Each
Fund is generally available for purchase in the United States, Puerto Rico, Guam
and the U.S. Virgin Islands. The Funds will only accept investments from
U.S.
citizens with a U.S. address (including an APO or FPO address) or resident
aliens with a U.S. address (including an APO or FPO address) and a U.S.
taxpayer
identification number. U.S. citizens living abroad are not allowed to purchase
shares in the Funds. Class
N shares are not eligible to be exchanged or purchased
through the website or through the Natixis Funds Automated Voice Response
System.
Each
Fund sells its shares at the NAV next calculated after the Fund receives a
properly completed investment order. The Fund generally must receive your
properly
completed order before the close of regular trading on the New York Stock
Exchange (“NYSE”) for your shares to be bought or sold at the Fund’s NAV
on
that day.
All
purchases made by check should be in U.S. dollars and made payable to Natixis
Funds. Third party checks, travelers checks, starter checks and credit card
convenience
checks will not be accepted, except that third party checks under $10,000 may be
accepted. You may return an uncashed redemption check from
your
account to be repurchased back into your account. Upon redemption of an
investment by check or by periodic account investment, redemption proceeds
may
be withheld until the check has cleared or the shares have been in your account
for 10 days.
A
Fund may periodically close to new purchases of shares or refuse any order to
buy shares if the Fund determines that doing so would be in the best
interests
of the Fund and its shareholders. See the section “Restrictions on Buying,
Selling and Exchanging Shares.”
The
Funds are not available to new SIMPLE IRA plans using the Natixis Funds’
Prototype document.
You
can buy shares of each Fund in several ways:
The
Funds may engage financial intermediaries to receive purchase, exchange and sell
orders on their behalf. Accounts established directly with the Funds
will
be serviced by the Funds’ transfer agent. The Funds, the Funds’ transfer agent
and the Distributor do not provide investment advice.
Through a financial adviser (certain restrictions may
apply).
Your financial adviser will be responsible for furnishing all necessary
documents to Natixis
Funds. Your financial adviser may charge you for these services. Your financial
adviser must receive your request in proper form before the close of
regular
trading on the NYSE for you to receive that day’s NAV.
Through a broker-dealer (certain restrictions may
apply).
You may purchase shares of the Funds through a broker-dealer that has been
approved by the Distributor.
Your broker-dealer may charge you a fee for effecting such transactions. Your
broker-dealer must receive your request in proper form before the close
of regular trading on the NYSE for you to receive that day’s NAV.
Directly from the Fund.
Natixis Funds’ transfer agent must receive your purchase request in proper form
before the close of regular trading on the NYSE in order
for you to receive that day’s NAV.
You
can purchase shares directly from each Fund in several ways:
By mail.
You can buy shares of each Fund by submitting a completed application form,
which is available online at www.im.natixis.com or by calling Natixis
Funds
at 800-225-5478, along with a check payable to Natixis Funds for the amount of
your purchase to:
Regular Mail
Natixis
Funds
P.O.
Box 219579
Kansas
City, MO 64121-9579
Overnight Mail
Natixis
Funds
330
West 9th Street
Kansas
City, MO 64105-1514
After
your account has been established, you may send subsequent investments directly
to Natixis Funds at the above addresses. Please include either the investment
slip from your account statement or a letter specifying the Fund name, your
account number and your name, address and telephone number.
By wire.
You also may wire subsequent investments. Call Natixis Funds at 800-225-5478 to
obtain wire transfer instructions. At the time of the wire transfer,
you
will need to include the Fund name, your class of shares, your account number
and the registered account owner name(s). Your bank may charge you for
such
a transfer.
By telephone.
You can make subsequent investments by calling Natixis Funds at 800-225-5478 if
you have already established electronic transfer privileges.
By exchange.
You may purchase shares of a Fund by exchange of shares of the same class of
another Fund by sending a signed letter of instruction to Natixis
Funds, by calling Natixis Funds at 800-225-5478 or by accessing your account
online at www.im.natixis.com.
Through Automated Clearing House
(“ACH”).
Before you can purchase shares of Natixis Funds through ACH, you must provide
specific instructions to Natixis
Funds in writing (see STAMP2000 Medallion Signature Guarantee below). You may
purchase shares of a Fund through ACH by either calling Natixis Funds
at 800-225-5478 or by accessing your account online at
www.im.natixis.com.
By internet.
If you have established a user name and password and you have established the
electronic transfer privilege, you can make subsequent investments
through your online account at www.im.natixis.com. If you have not established a
user name and password, but you have established the electronic
transfer privilege, go to www.im.natixis.com, click on “Account Access,” and
follow the instructions.
Through systematic investing.
You can make regular investments through automatic deductions from your bank
checking or savings account. If you did not establish
the electronic transfer privilege on your application, you may add the privilege
by obtaining a Service Options Form through your financial adviser, by
calling
Natixis Funds at 800-225-5478 or by visiting www.im.natixis.com. A medallion
signature guarantee may be required to add this option.
Minimum
Investment Requirements for each Fund and share class are described in the
section “Purchase and Sale of Fund Shares.”
Minimum Balance Policy
In
order to address the relatively higher costs of servicing smaller fund
positions, on an annual basis each Fund may close an account and send the
account holder
the proceeds if the account falls below $500. The valuation of account balances
for this purpose and liquidation itself generally occur during October of
each
calendar year, although they may occur at another date in the
year.
Certain
accounts, such as accounts using the Natixis Funds’ prototype document
(including IRAs, Keogh Plans, 403(b)(7) plans and Coverdell Education
Savings
Accounts), accounts associated with fee-based programs (such as wrap programs),
trust networked accounts, accounts initially funded within six months
of the liquidation date, certain retirement accounts, or accounts that fall
below the minimum as a result of an automatic conversion of Class C to
Class
A shares, are excluded from the liquidation.
Due
to operational limitations, the Funds’ ability to apply the Minimum Balance
Policy to shareholder accounts held through an intermediary in an omnibus
fashion
may be limited. The Funds may work with these intermediaries to enforce the
Minimum Balance Policy on these accounts as can best be applied per the
timing and constraints of the intermediaries’ account recordkeeping systems. For
information about the policy for Class N shares, see the section “Purchase
and Sale of Fund Shares” in each Fund summary.
Accounts
held through certain financial intermediaries that have entered into special
arrangements with the Distributor may be subject to a different minimum
balance policy than the one described above. Please see Appendix A to the
Prospectus for more information regarding the minimum balance policies
of specific financial intermediaries, which may differ from those disclosed
elsewhere in the Prospectus or in the SAI. Consult your financial intermediary
for additional information regarding the minimum balance policy applicable to
your investment.
Certain Retirement Plans
Natixis
Funds defines “Certain Retirement Plans” as it relates to load waivers, share
class eligibility, and account minimums as follows:
Certain
Retirement Plans include 401(k), 401(a), 457, (including profit-sharing, money
purchase pension plans), 403(b), 403(b)(7), defined benefit plans,
non-qualified
deferred compensation plans, Taft-Hartley multi-employer plans, and retiree
health benefit plans. Accounts must be plan-level omnibus accounts to
qualify.
Certain
Retirement Plans do not
include individual retirement accounts such as an IRA, SIMPLE IRA, SEP IRA,
SARSEP IRA, and Roth IRA. Any account registered
in the name of a participant does not qualify.
How
to Redeem Shares
You
can redeem shares of each Fund directly from the Fund on any day on which the
NYSE is open for business. The information below details the various
ways
you can redeem shares of a Fund. Except as noted below and in the “Selling
Restrictions” section of this Prospectus, each Fund typically expects to pay
out
redemption proceeds on the next business day after a redemption request is
received in good order. The information below also notes certain fees that
may
be charged by a Fund, its agents, your bank or your financial representative in
connection to your redemption request. The Funds do not currently impose
any
redemption charge. The Funds’ Board of Trustees reserves the right to impose
additional charges at any time.
Each
Fund may fund a redemption request from various sources, including sales of
portfolio securities, holdings of cash or cash equivalents, and borrowings
from
banks (including overdrafts from the Fund’s custodian bank and/or under the
Fund’s line of credit, which is shared across certain other Natixis Funds and
Loomis
Sayles Funds). Each Fund typically will redeem shares for cash; however, as
described in more detail below, each Fund reserves the right to pay the
redemption
price wholly or partly in-kind (i.e., in portfolio securities rather than cash),
if the Fund’s Adviser determines it to be advisable and in the best interest
of shareholders. If a shareholder receives a distribution in-kind, the
shareholder will bear the market risk associated with the distributed securities
and
would incur brokerage or other charges in converting the securities to
cash.
Because
large redemptions are likely to require liquidation by a Fund of portfolio
holdings, payment for large redemptions may be delayed for up to seven
days
to provide for orderly liquidation of such holdings. Under unusual
circumstances, the Funds may suspend redemptions or postpone payment for more
than
seven days as permitted by the SEC.
Redemptions
totaling more than $100,000 from a single fund/account cannot be processed on
the same day unless the proceeds of the redemption are sent via
pre-established banking information on the account. Please see the section
“STAMP2000 Medallion Signature Guarantee” for details.
Generally,
for expedited payment of redemption proceeds, a transaction fee of $5.50 for
wire transfers, $50 for international wire transfers or $36.00 for overnight
delivery will be charged. These fees are subject to change.
Redemptions through your financial
adviser.
Your financial adviser must receive your request in proper form before the close
of regular trading on the NYSE
for you to receive that day’s NAV. Your financial adviser will be responsible
for furnishing all necessary documents to Natixis Funds on a timely basis
and
may charge you for his or her services.
Redemptions through your
broker-dealer.
You may redeem shares of the Funds through a broker-dealer that has been
approved by the Distributor, which can
be contacted at 888 Boylston Street, Suite 800, Boston, MA 02199-8197. Your
broker-dealer may charge you a fee for effecting such transaction. Your
broker-dealer
must receive your request in proper form before the close of regular trading on
the NYSE for you to receive that day’s NAV. Your redemptions generally
will be wired to your broker-dealer on the first business day after your request
is received in good order.
Redemptions directly to the Funds.
Natixis Funds’ transfer agent must receive your redemption request in proper
form before the close of regular trading on
the NYSE in order for you to receive that day’s NAV. Your redemptions generally
will be sent to you on the first business day after your request is
received in
good order, although it may take longer.
You
may make redemptions directly from each Fund in several ways:
By mail.
Send a signed letter of instruction that includes the name of the Fund, the
exact name(s) in which the shares are registered, your address, telephone
number,
account number and the number of shares or dollar amount to be redeemed to the
following address:
Regular Mail
Natixis
Funds
P.O.
Box 219579
Kansas
City, MO 64121-9579
Overnight Mail
Natixis
Funds
330
West 9th Street
Kansas
City, MO 64105-1514
All
owners of shares must sign the written request in the exact names in which the
shares are registered. The owners should indicate any special capacity in
which
they are signing (such as trustee or custodian or on behalf of a partnership,
corporation or other entity).
By exchange.
You may sell some or all of your shares of a Fund and use the proceeds to buy
shares of the same class of another fund by sending a signed letter
of instruction to Natixis Funds, by calling Natixis Funds at 800-225-5478 or by
accessing your account online at www.im.natixis.com.
By internet.
If you have established a user name and password and you have established the
electronic transfer privilege, you can redeem shares through your
online account at www.im.natixis.com. If you have not established a user name
and password but you have established the electronic transfer privilege,
go
to www.im.natixis.com, click on “Account Access,” and follow the
instructions.
By telephone.
You may redeem shares by calling Natixis Funds at 800-225-5478. Proceeds from
telephone redemption requests (less any applicable fees) can
be wired to your bank account, sent electronically by ACH to your bank account
or sent by check in the name of the registered owner(s) to the address of
record.
A wire fee will be deducted from your proceeds. Your bank may charge you a fee
to receive the wire.
The
telephone redemption privilege may be modified or terminated by the Funds
without notice.
You
may redeem by telephone to have a check sent to the address of record for the
maximum amount of $100,000 per day from a single fund/account. For your
protection, telephone or internet redemption requests will not be permitted if
Natixis Funds has been notified of an address change or bank account
information
change for your account within the preceding 30 days. If you prefer, you can
decline telephone redemption and transfer privileges by calling Natixis
Funds at 800-225-5478.
Systematic Withdrawal Plan.
If the value of your account is $10,000 or more, you can have periodic
redemptions automatically paid to you or to someone you
designate. Please call 800-225-5478 for more information or to set up a
systematic withdrawal plan or visit www.im.natixis.com to obtain a Service
Options
Form.
In-Kind.
Shares normally will be redeemed for cash upon receipt of a redemption request
in good order, although each Fund reserves the right to pay the redemption
price wholly or partly in-kind if the Fund’s Adviser or
Subadviser(s) determines it to be advisable and in the best interest of
shareholders. For example,
a Fund may pay a redemption in-kind under stressed market conditions or if the
redemption amount is large.
You
may also request an in-kind redemption of your shares by calling Natixis Funds
at 800-225-5478. In-kind redemptions typically take several weeks to
effectuate
following a redemption request given the operational steps necessary to
coordinate with the redeeming shareholder’s custodian. Typically, the
redemption
date is mutually-agreed upon by the Fund and the redeeming shareholder. A Fund
is not required to pay a redemption in-kind even if requested and
may in its discretion pay the redemption proceeds in cash.
Redemptions
in-kind will generally, but not necessarily, result in a pro rata distribution
of each security held in a Fund’s portfolio. If a shareholder receives a
distribution
in-kind, the shareholder will bear the market risk associated with the
distributed securities and would incur brokerage or other charges in
converting
the securities to cash.
By wire.
Before Natixis Funds can wire redemption proceeds (less any applicable fees) to
your bank account, you must provide specific wire instructions to Natixis
Funds in writing (see “STAMP2000 Medallion Signature Guarantee” below). A wire
fee will be deducted from the proceeds of each wire. Your bank may
charge you a fee to receive the wire.
By ACH.
Before Natixis Funds can send redemptions through ACH, you must provide specific
wiring instructions to Natixis Funds in writing (see “STAMP2000
Medallion Signature Guarantee” below). For ACH redemptions, proceeds will
generally arrive at your bank within three business days.
STAMP2000 Medallion Signature
Guarantee.
You must have your signature guaranteed by a bank, broker-dealer or other
financial institution that can issue
a STAMP2000 Medallion Signature Guarantee for the following types of
redemptions:
| • |
If
you are selling more than $100,000 per day from a single fund/account and
you are requesting the proceeds by check (this does not apply to IRA
transfer of
assets to new custodian). |
| • |
If
you are requesting that the proceeds check (of any amount) be made out to
someone other than the registered owner(s) or sent to an address other
than the
address of record. |
| • |
If
the account registration or bank account information has changed within
the past 30 days. |
| • |
If
you are instructing us to send the proceeds by check, wire or ACH to a
bank not already active on the fund
account. |
The
Funds will only accept STAMP2000 Medallion Signature Guarantees bearing the
STAMP2000 Medallion imprint. The surety amount of the STAMP2000 medallion
imprint must meet or exceed the amount on the request. Please note that a notary
public cannot provide a STAMP2000 Medallion Signature Guarantee.
This signature guarantee requirement may be waived by Natixis Funds in certain
cases.
Exchanging
or Converting Shares
In
general, you may exchange shares of each Fund for shares of the same class of
another Natixis Fund that offers such class of shares (see the
sections “How
to Purchase Shares” and “How to Redeem Shares”) without paying a sales charge or
a contingent deferred sales charge (“CDSC”), if applicable, subject
to restrictions noted below. The exchange must be for at least the minimum
to open an account (or the total NAV of your account, whichever is less),
or,
once the fund minimum is met, exchanges under the Automatic Exchange Plan must
be made for at least $50 (see the section “Additional Investor Services”).
All exchanges are subject to the eligibility requirements of the fund into which
you are exchanging and any other limits on sales of or exchanges
into
that fund. The exchange privilege may be exercised only in those states where
shares of such funds may be legally sold. For U.S. federal income tax
purposes,
an exchange of Fund shares for shares of another fund is generally treated as a
sale on which gain or loss may be recognized. Subject to the applicable
rules of the SEC, the Board of Trustees reserves the right to modify the
exchange privilege at any time. Before requesting an exchange into any
other
fund, please read its prospectus carefully. You may be unable to hold your
shares through the same financial intermediary if you engage in certain
share exchanges.
You should contact your financial intermediary for further details. Please refer
to the SAI for more detailed information on exchanging Fund shares.
Class N shares are not eligible to be exchanged through the website or through
the Natixis Funds Automated Voice Response System.
In
general, you may sell Class Y shares of any Natixis Fund and use the proceeds to
purchase Class I shares in any Loomis Sayles Fund, subject to the eligibility
requirements, including fund minimums, of the fund you are purchasing
into.
Cost Basis Reporting.
Upon the redemption or exchange of your shares in a Fund, the Fund or, if you
purchased your shares through a broker-dealer or other financial
intermediary, your financial intermediary will be required to provide you and
the Internal Revenue Service (“IRS”) with cost basis and certain other
related
tax information about the Fund shares you redeemed or exchanged. The cost basis
reporting requirement is effective for shares purchased, including through
dividend reinvestment, on or after January 1, 2012. Please contact the Fund at
800-225-5478, visit im.natixis.com or consult your financial intermediary,
as appropriate, for more information regarding available methods for cost basis
reporting and how to select a particular method. Please
also consult your tax adviser to determine which available cost basis
method is best for you.
Restrictions
on Buying, Selling and Exchanging Shares
The
Funds discourage excessive short-term trading that may be detrimental to the
Funds and their shareholders. Frequent abusive purchases and redemptions
of
Fund shares by shareholders may present certain risks for other shareholders in
a Fund. This includes the risk of diluting the value of Fund shares held by
long
term shareholders, interfering with the efficient management of each Fund’s
portfolio and increasing brokerage and administrative costs. Funds investing
in
securities that require special valuation processes (such as foreign securities,
below investment grade securities or small capitalization securities), also
may
have increased exposure to these risks. The Board of Trustees has adopted the
following policies to address and discourage such trading.
Each
Fund reserves the right to suspend or change the terms of purchasing or
exchanging shares. Each Fund and the Distributor reserve the right to reject any
purchase
or exchange order for any reason, including if the transaction is deemed not to
be in the best interests of the Fund’s other shareholders or possibly
disruptive
to the management of the Fund. A shareholder whose exchange order has been
rejected may still redeem its shares by submitting a redemption request
as described under “How to Redeem Shares.”
Limits on Frequent Trading.
Excessive trading activity in a Fund is measured by the number of roundtrip
transactions in a shareholder’s account. A round trip
is defined as (1) a purchase (including a purchase by exchange) into a Fund
followed by a redemption (including a redemption by exchange) out of the
same
Fund; or (2) a redemption (including a redemption by exchange) out of a Fund
followed by a purchase (including a purchase by exchange) into the same
Fund.
A round trip transaction is defined as occurring in a single Fund within a
30-day period. Two round trips in a 90-day period will constitute a violation of
the
Fund’s trading limitations. After the detection of a first violation, the Fund
or the Distributor will issue the shareholder and/or their financial
intermediary a written
warning. The written warning will expire one year from the date the warning is
issued, if no further violations occur during the period. After the detection
of a second violation (i.e., two more round trip transactions in the Fund within
a 90-day period), the Fund or the Distributor will restrict the shareholder
from making subsequent purchases (including purchases by exchange) in that Fund
for 90 days. After the detection of a third violation within 12 months
of the second violation, the Fund or the Distributor will restrict the
shareholder and/or their financial intermediary from making purchases (including
purchases
by exchange) into any of the shareholder’s accounts in the violated Fund for one
year from the date the third violation is issued. The above limits are
applicable whether a shareholder holds shares directly with a Fund or indirectly
through a financial intermediary, such as a broker, bank, investment
adviser,
record keeper for retirement plan participants, or other third party. The
preceding is not an exclusive description of activities that a Fund and the
Distributor
may consider to be excessive, and, at its discretion, a Fund and the Distributor
may restrict or prohibit transactions by such identified shareholders
or
intermediaries including a period of restriction with no end date.
Notwithstanding
the above, certain financial intermediaries, such as retirement plan
administrators, may monitor and restrict the frequency of purchase and
redemption
transactions in a manner different from that described above. The policies of
these intermediaries may be more or less restrictive than the generally
applicable policies described above. The Funds may choose to rely on a
financial intermediary’s restrictions on frequent trading in place of the
Funds’
own restrictions if the Fund determines, at its discretion, that the financial
intermediary’s restrictions provide reasonable protection for the Funds from
excessive
short-term trading activity. Please contact your financial representative for
additional information regarding their policies for limiting the frequent
trading
of Fund shares.
This
policy also does not apply with respect to shares purchased by certain
funds-of-funds or similar asset allocation programs that rebalance their
investments
only infrequently. To be eligible for this exemption, the fund-of-funds or asset
allocation program must identify itself to and receive prior written
approval
from a Fund or the Distributor. A Fund and the Distributor may request
additional information to enable them to determine that the fund-of-funds or
asset
allocation program is not designed to and/or is not serving as a vehicle for
disruptive short-term trading, which may include requests for (i) written
assurances
from the sponsor or investment manager of the fund-of-funds or asset allocation
program that it enforces the Fund’s frequent trading policy on investors
or another policy reasonably designed to deter disruptive short-term trading in
Fund shares, and/or (ii) data regarding transactions by investors in
the
fund-of-funds or asset allocation program, for periods and on a frequency
determined by the Fund and the Distributor, so that the Funds can monitor
compliance
by such investors with the trading limitations of the Funds or of the
fund-of-funds or asset allocation program. Under certain circumstances,
waivers
to these conditions (including waivers to permit more frequent rebalancing) may
be approved for programs that in the Fund’s opinion are not vehicles
for
excessive trading and are not likely to engage in abusive
trading.
The
Fund and the Distributor may deem shares acquired, redeemed, or exchanged
through a firm discretionary program where purchases and redemptions are
made
at a home office or firm level on behalf of a client not deemed to be intended
to engage in market timing. In addition to the circumstances previously
noted,
the Funds reserve the right to waive any purchase and exchange restrictions at
each Fund’s sole discretion where it believes such action is in the Fund’s
best interests. The exception would require additional review as noted above for
asset allocation programs.
Trade Activity Monitoring. Trading
activity is monitored selectively on a daily basis in an effort to detect
excessive short-term trading activities. If a Fund or the
Distributor believes that a shareholder or financial intermediary has engaged in
excessive, short-term trading activity, it may, at its discretion, request that
the
shareholder or financial intermediary stop such activities or refuse to process
purchases or exchanges in the accounts. At its discretion, a Fund and the
Distributor,
as well as an adviser to a Fund may ban trading in an account if, in their
judgment, a shareholder or financial intermediary has engaged in
short-term
transactions that, while not necessarily in violation of a Fund’s stated
policies on frequent trading, are harmful to a Fund or its shareholders. A Fund
and the
Distributor also reserve the right to notify financial intermediaries of the
shareholder’s trading activity.
Accounts Held by Financial
Intermediaries.
The ability of a Fund and the Distributor to monitor trades that are placed by
omnibus or other nominee accounts
may be severely limited in those instances in which the financial intermediary
maintains the record of a Fund’s underlying beneficial owners. In general,
each Fund and the Distributor will review trading activity at the omnibus
account level. If a Fund and the Distributor detect suspicious activity, they
may
request and receive personal identifying information and transaction histories
for some or all underlying shareholders (including plan participants) to
determine
whether such shareholders have engaged in excessive short-term trading activity.
If a Fund believes that a shareholder has engaged in excessive short-term
trading activity in violation of the Fund’s policies through an omnibus account,
the Fund will attempt to limit transactions by the underlying shareholder
that engaged in such trading, although it may be unable to do so. A Fund may
also limit or prohibit additional purchases of Fund shares by an intermediary.
Investors should not assume a Fund will be able to detect or prevent all trading
practices that may disadvantage a Fund.
Purchase
Restrictions
Each
Fund is required by federal regulations to obtain certain personal information
from you and to use that information to verify your identity. The Funds may
not
be able to open your account if the requested information is not
provided. Each Fund reserves the right to refuse to open an
account, close an account and redeem your shares at the then-current
price or take other such steps that the Fund deems necessary to comply with
federal regulations if your identity cannot be
verified.
Selling
Restrictions
The
table below describes restrictions placed on selling shares of a
Fund. Please see the SAI for additional information regarding redemption
payment policies.
|
| |
|
Restriction |
Situation |
|
Each
Fund may suspend the right of redemption: |
•
When
the NYSE is closed (other than a weekend/holiday) as permitted by the
SEC.
•
During
an emergency as permitted by the SEC.
•
During
any other period permitted by the SEC. |
|
Each
Fund reserves the right to suspend account services or refuse transaction
requests: |
•
With
a notice of a dispute between registered owners or death of a registered
owner.
•
With
suspicion/evidence of a fraudulent act. |
|
Each
Fund may pay the redemption price in whole or in part by a distribution in
kind of
readily marketable securities in lieu of cash or may take up to 7 days to
pay a redemption
request in order to raise capital: |
•
When
or if it is advisable for the Fund to redeem in-kind, as determined in the
sole discretion
of the Adviser or Subadviser, or if requested by the redeeming
shareholder
and agreed to by the Fund. |
|
Each
Fund may withhold redemption proceeds for 10 days from the purchase
date: |
•
When
redemptions are made within 10 calendar days of purchase by check or ACH
to
allow the check or ACH transaction to
clear. |
The
Funds reserve the right to suspend account services or refuse transaction
requests if a Fund receives notice of a dispute between registered owners or of
the
death of a registered owner or a Fund suspects a fraudulent act. If a Fund
refuses a transaction request because it receives notice of a dispute, the
transaction
will be processed at the NAV next determined after the Fund receives notice that
the dispute has been settled or a court order has been entered adjudicating
the dispute. If a Fund determines that its suspicion of fraud or belief that a
dispute existed was mistaken, the transaction will be processed as of
the
NAV next determined after the transaction request was first received in good
order.
Certificates. Certificates
will not be issued or honored for any class of shares.
Unclaimed Property Laws.
Many states have unclaimed property laws and regulations that provide for
transfer to the state (also known as “escheatment”) of
unclaimed or abandoned property under various circumstances. The particular
circumstances may include inactivity (e.g., no owner-initiated contact for a
certain
period), returned mail (e.g., when mail sent to a shareholder is returned by the
post office as undeliverable), or a combination of both inactivity and
returned
mail. If your account is deemed unclaimed or abandoned under applicable state
property laws or regulations, the Funds may be required to “escheat” or
transfer the assets in your account to the applicable state’s unclaimed property
administration. The state may sell escheated shares and, if you subsequently
seek to reclaim your proceeds of liquidation from the state, you may only be
able to recover the amount received when the shares were sold (and
not the amount those shares are worth currently).
It
is your responsibility to maintain a correct address for your account, to keep
your account active by contacting the Transfer Agent by mail or telephone or
accessing
your account through the Funds’ website, and to promptly cash all checks for
dividends, capital gains and redemptions. Each state’s requirements to
keep an account active can vary and are subject to change. If you invest in a
Fund through a financial intermediary, you are encouraged to contact
the
financial
intermediary regarding applicable state unclaimed property laws. The Funds, the
Transfer Agent and the Distributor will not be liable to shareholders
or
their representatives for good faith compliance with state unclaimed property
laws.
Self-Servicing
Your Account
Shareholders
that hold their accounts directly with the Funds may use the following
self-service options. Shareholders that hold Fund shares through a financial
intermediary should consult their financial intermediary regarding any
self-service options that they may offer.
(Excludes
Class
N shares)
Natixis Funds Website.
You
can access our website at www.im.natixis.com to perform transactions (purchases,
redemptions or exchanges), review your account information and Fund
NAVs, change your address, order duplicate statements or tax forms or obtain a
prospectus, an SAI, an application or periodic reports (certain restrictions
may apply).
Natixis Funds Automated Voice Response
System.
You have access to your account 24 hours a day by calling Natixis Funds’
Automated Voice Response System
at 800-225-5478. You may review your account balance and Fund NAV, order
duplicate statements, order duplicate tax forms, obtain distribution and
performance
information.
Restructuring
and Liquidations
Investors
should note that each Fund reserves the right to merge or reorganize at any
time, or to cease operations or liquidate itself. At any time prior to the
liquidation
of a Fund, shareholders may redeem their shares of the Fund pursuant to the
procedures set forth under “How to Redeem Shares.” The proceeds from
any such redemption will be the NAV of the Fund’s shares, less any applicable
sales charges, redemption fees or other charges. Shareholders may also
exchange
their shares, subject to investment minimums and other restrictions on exchanges
as described under “Exchanging or Converting Shares.” For federal
income tax purposes, an exchange of a fund’s shares for shares of
another Natixis Fund or Loomis Sayles Fund is generally treated as a sale
on which a
gain or loss may be recognized.
Retirement Accounts.
Absent an instruction to the contrary prior to the liquidation date of a Fund,
for shares of a Fund held using a Natixis Funds’ prototype document,
in individual retirement accounts, in custodial accounts under a SEP, SIMPLE,
SARSEP or 403(b) plan, or in certain other retirement accounts, the Distributor
will exchange any shares remaining in the Fund on the liquidation date for
shares of Loomis Sayles Limited Term Government and Agency Fund (or,
if
that fund is no longer in existence, then in shares of another comparable
Natixis Fund or Loomis Sayles Fund) at NAV. Please refer to your plan documents
or
contact your plan administrator or plan sponsor to determine whether the
preceding sentence applies to you.
How
Fund Shares Are Priced
NAV
is the price of one share of a Fund without a sales charge, and is
calculated each business day using this formula:
The
policies and procedures used to determine the NAV of Fund shares
are summarized below:
| • |
A
share’s NAV is determined at the close of regular trading on the NYSE on
the days the NYSE is open for trading. This is normally 4:00 p.m., Eastern
time. |
|
A
Fund’s shares will not be priced on the days on which the NYSE is closed
for trading. In addition, a Fund’s shares will not be priced on the
holidays listed in
the SAI. See the section “Net Asset Value” in the SAI for more
details. |
| • |
The
price you pay for purchasing, redeeming or exchanging a share will be
based upon the NAV next calculated (plus or minus applicable sales charges
as described
earlier in the Fund Summary) after your order is received by the
transfer agent, SS&C Global Investor & Distribution Solutions,
Inc. (formerly, DST Asset
Manager Solutions, Inc.), (rather than when the order arrives at the P.O.
box) “in good order” (meaning that the order is complete and contains all
necessary
information).1 |
| • |
Requests
received by the Funds after the NYSE closes will be processed based upon
the NAV determined at the close of regular trading on the next day
that
the NYSE is open. If the transfer agent receives the order in good order
prior to the NYSE market close (normally 4:00 p.m., Eastern time), the
shareholder
will receive that day’s NAV. Under limited circumstances, the Distributor
may enter into contractual agreements pursuant to which orders
received
by your investment dealer before a Fund determines its NAV and
transmitted to the transfer agent prior to market open on the next
business day are
processed at the NAV determined on the day the order was received by your
investment dealer. Please contact your investment dealer to
determine whether it has entered into such a
contractual agreement. If your investment dealer has not entered into such
a contractual agreement, your order will be processed at the
NAV next determined after your investment dealer submits the order
to a Fund. |
| • |
If a
Fund invests in foreign securities, it may have NAV changes on days when
you cannot buy or sell its shares. |
| 1 |
Please
see the section “How to Purchase Shares,” which provides additional
information regarding who can receive a purchase
order. |
Generally,
during times of substantial economic or market change, it may be difficult to
place your order by phone. During these times, you may send your
order
by mail as described in the sections “How to Purchase Shares” and “How to Redeem
Shares.”
Fund
securities and other investments for which market quotations are readily
available, as outlined in the Funds’ policies and procedures, are valued at
market
value. The Funds may use third-party pricing services to obtain market
quotations and other valuation information, such as evaluated bids.
Generally,
Fund securities and other investments are valued as follows:
| • |
Equity securities (including shares of
closed-end investment companies and ETFs), exchange traded notes, rights,
and warrants
— listed equity
securities are valued at the last sale price quoted on the exchange where
they are traded most extensively or, if there is no reported sale during
the day,
the closing bid quotation as reported by a third-party pricing service.
Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market
and
NASDAQ Capital Market are valued at the NASDAQ Official Closing Price
(“NOCP”), or if lacking an NOCP, at the most recent bid quotations on the
applicable
NASDAQ Market. Unlisted equity securities (except unlisted preferred
equity securities discussed below) are valued at the last sale price
quoted
in the market where they are traded most extensively or, if there is no
reported sale during the day, the closing bid quotation as reported by a
third-party
pricing service. If there is no sale price or closing bid quotation
available, unlisted equity securities will be valued using evaluated bids
furnished by a third-party
pricing service, if available. In some foreign markets, an official close
price and a last sale price may be available from the foreign exchange or
market.
In those cases, the official close price is used. Valuations based on
information from foreign markets may be subject to the Funds’ fair value
policies
described below. If a right is not traded on any exchange, its value is
based on the market value of the underlying security, less the cost to
subscribe
to the underlying security (e.g., to exercise the right), adjusted for the
subscription ratio. If a warrant is not traded on any exchange, a price is
obtained
from a broker-dealer. |
| • |
Debt securities and unlisted preferred equity
securities —
evaluated bids furnished to a Fund by a third-party pricing service
using market information,
transactions for comparable securities and various relationships between
securities, if available, or bid prices obtained from
broker-dealers. |
| • |
Senior Loans —
bid prices supplied by a third-party pricing service, if available,
or bid prices obtained from
broker-dealers. |
| • |
Bilateral Swaps —
bilateral credit default swaps are valued based on mid prices (between the
bid price and the ask price) supplied by a third-party pricing
service. Bilateral interest rate swaps and bilateral standardized
commodity and equity index total return swaps are valued based on prices
supplied by
a third-party pricing service. If prices from a third-party pricing
service are not available, prices from a broker-dealer may be
used. |
| • |
Centrally Cleared
Swaps —
settlement prices of the clearinghouse on which the contracts were traded
or prices obtained from broker-dealers. |
| • |
Options
— domestic exchange-traded index and single name equity options contracts
(including options on ETFs) are valued at the mean of the National
Best
Bid and Offer quotations as determined by the Options Price Reporting
Authority. Foreign exchange-traded single name equity options contracts
are valued
at the most recent settlement price. Options contracts on foreign indices
are priced at the most recent settlement price. Options on futures
contracts
are valued using the current settlement price on the exchange on which,
over time, they are traded most extensively. Other exchange-traded
options
are valued at the average of the closing bid and ask quotations on the
exchange on which, over time, they are traded most extensively. OTC
currency
options and swaptions are valued at mid prices (between the bid price and
the ask price) supplied by a third-party pricing service, if available.
Other
OTC options contracts (including currency options and swaptions not priced
through a third-party pricing service) are valued based on prices obtained
from
broker-dealers. Valuations based on information from foreign markets may
be subject to the Fund’s fair value policies as described
below. |
| • |
Futures — most
recent settlement price on the exchange on which the Adviser or
Subadviser believes that, over time, they are traded most extensively.
Valuations
based on information from foreign markets may be subject to
the Fund’s fair value policies as described
below. |
| • |
Forward Foreign Currency Contracts
—
interpolated rates determined based on information provided by a
third-party pricing service. |
| • |
Mutual Funds
– net asset value. |
Foreign
denominated assets and liabilities are translated into U.S. dollars based upon
foreign exchange rates supplied by a third-party pricing service. Fund
securities
and other investments for which market quotations are not readily available are
valued at fair value as determined in good faith by the Adviser or Subadviser.
A Fund may also value securities and other investments at fair value in other
circumstances such as when extraordinary events occur after the
close
of a foreign market but prior to the close of the NYSE. This may include
situations relating to a single issuer (such as a declaration of bankruptcy or a
delisting
of the issuer’s security from the primary market on which it has traded) as well
as events affecting the securities markets in general (such as market
disruptions
or closings and significant fluctuations in U.S. and/or foreign markets). When
fair valuing its securities or other investments, each Fund may, among
other things, use modeling tools or other processes that may take into account
factors such as securities or other market activity and/or significant
events
that occur after the close of the foreign market and before the time a Fund’s
NAV is calculated. Fair value pricing may require subjective determinations
about the value of a security, and fair values used to determine a Fund’s NAV
may differ from quoted or published prices, or from prices that are
used by others, for the same securities. In addition, the use of fair value
pricing may not always result in adjustments to the prices of securities held by
a Fund.
Valuations for securities traded in the OTC market may be based on factors such
as market information, transactions for comparable securities, various
relationships
between securities or bid prices obtained from broker-dealers. Evaluated prices
from a third-party pricing service may require subjective determinations
and may be different than actual market prices or prices provided by other
pricing services. As of the date of this prospectus, the Adviser serves
as the Funds valuation designee for purposes of compliance with Rule 2a-5 under
the 1940 Act.
Trading
in some of the portfolio securities or other investments of some of the Funds
takes place in various markets outside the United States on days and at
times
other than when the NYSE is open for trading. Therefore, the calculation of
these Funds’ NAV does not take place at the same time as the prices of
many
of its portfolio securities or other investments are determined, and the value
of these Funds’ portfolios may change on days when these Funds are not
open
for business and their shares may not be purchased or redeemed.
Dividends
and Distributions
The
Funds generally distribute annually all or substantially all of their net
investment income (other than capital gains) in the form of dividends. Each Fund
expects
to distribute all or substantially all of its net realized long- and short-term
capital gains annually (or, in the case of short-term capital gains, more
frequently
than annually if determined by the Fund to be in the best interest of
shareholders), after applying any capital loss carryovers. To the extent
permitted
by law, the Board of Trustees may adopt a different schedule for making
distributions as long as payments are made at least annually. A Fund’s
distribution
rate fluctuates over time for various reasons, and there can be no assurance
that a Fund’s distributions will not decrease or that a Fund will make
any
distributions when scheduled. For example, foreign currency losses could
potentially reduce or eliminate regularly scheduled distributions for certain
Funds.
Distributions
will automatically be reinvested in shares of the same class of the distributing
Fund at NAV unless you select one of the following alternatives:
| • |
Participate
in the Dividend Diversification Program, which allows you to have all
dividends and distributions automatically invested at NAV in shares of the
same
class of another Natixis Fund registered in your name. Certain investment
minimums and restrictions may apply. For more information about the
program,
see the section “Additional Investor
Services;” |
| • |
Receive
distributions from dividends and interest in cash while reinvesting
distributions from capital gains in additional shares of the same class of
the Fund,
or in the same class of another Natixis
Fund; |
| • |
Receive
distributions from capital gains in cash while reinvesting distributions
from dividends and interest in additional shares of the same class of the
Fund,
or in the same class of another Natixis Fund;
or |
| • |
Receive
all distributions in cash. |
For
accounts held directly with a Fund, any cash distributions to be paid by check,
in an amount of $10 or less, will instead be automatically reinvested in
additional
Fund shares. If a dividend or capital gain distribution check remains uncashed
for six months and your account is still open, a Fund will reinvest the
dividend
or distribution in additional shares of the Fund promptly after making this
determination and the check will be canceled. In addition, future dividends
and
capital gain distributions will be automatically reinvested in additional shares
of the Fund unless you subsequently contact the Fund and request to receive
distributions by check.
If
you do not select an option when you open your account, all distributions will
be reinvested.
Generally,
if you earn more than $10 annually in taxable income from a Fund held in a
non-retirement plan account, you will receive a Form 1099-DIV to help
you
report the prior calendar year’s distributions on your U.S. federal income tax
return. This information will also be reported to the IRS. Be sure to keep this
Form
1099-DIV as a permanent record. A fee may be charged for any duplicate
information requested.
Tax
Consequences
Except
as noted, the discussion below addresses only the U.S. federal income tax
consequences of an investment in the Funds and does not address any
non-U.S.,
state or local tax consequences.
Each
Fund intends to meet all requirements under Subchapter M of the Internal Revenue
Code of 1986, as amended (the “Code”) necessary to qualify each year
for treatment as a “regulated investment company” and thus does not expect to
pay any U.S. federal income tax on income and capital gains that are
timely
distributed to shareholders.
Unless
otherwise noted, the discussion below, to the extent it describes
shareholder-level tax consequences, pertains solely to taxable shareholders. The
Funds
are not managed with a view toward minimizing taxes imposed on such
shareholders.
Taxation of Distributions from the
Funds.
For U.S. federal income tax purposes, distributions of investment income are
generally taxable to Fund shareholders
as ordinary income. Taxes on distributions of capital gains are determined by
how long a Fund owned (or is deemed to have owned) the
investments
that generated them, rather than how long a shareholder has owned his or her
shares. Distributions attributable to the excess of net long-term capital
gains from the sale of investments that a Fund owned (or is deemed to have
owned) for more than one year over net short-term capital losses from the
sale
of investments that a Fund (or is deemed to have owned) for one year or less,
and that are properly reported by the Fund as capital gain dividends
(“Capital
Gain Dividends”) generally will be taxable to a shareholder receiving such
distributions as long-term capital gain includible in net capital gain and
taxed
to individuals at reduced rates. Distributions attributable to the excess of net
short-term capital gains from the sale of investments that a Fund owned
(or
is deemed to have owned) for one year or less over net long-term capital losses
from the sale of investments that a Fund owned (or is deemed to have
owned)
for more than one year, will be taxable as ordinary income. The Funds’
transactions in options or other derivatives or short sales may cause a larger
portion
of distributions to be taxable to shareholders as ordinary income than would be
the case absent such transactions.
Distributions
of investment income properly reported by a Fund as derived from “qualified
dividend income” will be taxed in the hands of individuals at the reduced
rates applicable to net capital gain, provided that holding period and other
requirements are met at both the shareholder and Fund levels. Income
generated
by investments in fixed-income securities, derivatives and REITs generally
is not eligible for treatment as qualified dividend income. Additionally, a
portion
of the Fund’s distributions may be eligible for the dividends-received deduction
in the case of corporate shareholders, provided certain requirements
are
met.
A
3.8% Medicare contribution tax is imposed on the net investment income of
certain individuals, trusts and estates to the extent their income exceeds
certain
threshold amounts. Net investment income generally includes for this purpose
dividends, including any Capital Gain Dividends paid by a Fund, and net
capital
gains recognized on the sale, redemption, exchange or other taxable disposition
of shares of a Fund.
Fund
distributions are taxable whether shareholders receive them in cash or reinvest
them in additional shares. In addition, Fund distributions are taxable to
shareholders
even if they are paid from income or gains earned by a Fund before a
shareholder’s investment (and thus were included in the price the shareholder
paid for his or her shares). Such distributions are likely to occur in respect
of shares purchased at a time when the Fund’s NAV reflects gains that
are
either unrealized or realized but not distributed.
Dividends
and distributions declared by a Fund and payable to shareholders of record in
October, November or December of one year and paid in January of the
next year generally are taxable in the year in which the distributions are
declared, rather than the year in which the distributions are
received.
Distributions
by a Fund to retirement plans and other investors that qualify for
tax-advantaged treatment under U.S. federal income tax laws generally will not
be
taxable, although distributions by retirement plans to their participants may be
taxable. Special tax rules apply to investments through such retirement
plans.
If your investment is through such a plan, you should consult your tax adviser
to determine the suitability of the Funds as an investment through your
plan
and the tax treatment of distributions to you (including distributions of
amounts attributable to an investment in a Fund) from the plan.
Redemption, Sale or Exchange of Fund
Shares.
A redemption, sale or exchange of Fund shares (including an exchange of Fund
shares for shares of another
Natixis Fund or Loomis Sayles Fund) is a taxable event and generally will result
in recognition of gain or loss in an amount equal to the difference between
your adjusted tax basis in the shares and the amount received. Gain or loss, if
any, recognized by a shareholder on a redemption, sale, exchange or other
taxable disposition of Fund shares generally will be taxed as long-term capital
gain or loss if the shareholder held the shares for more than one year,
and
as short-term capital gain or loss if the shareholder held the shares for one
year or less, assuming in each case that the shareholder held the shares as
capital
assets. Short-term capital gains generally are taxed at the rates applicable to
ordinary income. Any loss realized upon a disposition of shares held for
six
months or less will be treated as long-term, rather than short-term, capital
loss to the extent of any Capital Gain Dividends received by the shareholder
with
respect to the shares. The deductibility of capital losses is subject to
limitations. See “Cost Basis Reporting” above for information about certain cost
basis
reporting obligations. Additionally, any loss realized on a sale of shares of a
Fund may be disallowed under “wash sale” rules to the extent the shares
disposed
of are replaced with other shares of the Fund within a period of 61 days
beginning 30 days before and ending 30 days after the date of disposition,
including
pursuant to a dividend reinvestment in shares of the Fund. If disallowed, the
loss will be reflected in an adjustment to the basis of the shares acquired.
Taxation of Certain Fund
Investments.
A Fund’s investments in foreign securities may be subject to foreign withholding
or other taxes. In that case, the Fund’s
yield on those securities would be decreased. The Funds generally do not expect
that shareholders will be entitled to claim a credit or deduction with
respect
to such foreign taxes incurred by the Funds. In addition, a Fund’s investments
in foreign securities and foreign currency may be subject to special tax
rules
that have the effect of increasing or accelerating the Fund’s recognition of
ordinary income and may affect the timing or amount of the Fund’s distributions
to shareholders. Because the Funds invest in foreign securities, shareholders
should consult their tax advisers about the consequences of their investments
under foreign laws.
A
Fund’s investments in certain debt obligations (such as those with “OID” or
accrued market discount, in each case, as defined in the SAI),
mortgage-backed securities,
asset-backed securities, REITs and derivatives may cause the Fund to recognize
taxable income in excess of the cash generated by such investments.
Thus, a Fund could be required to liquidate investments, including at times when
it is not advantageous to do so, in order to satisfy the distribution
requirements applicable to regulated investment companies under the
Code.
Backup Withholding.
Each Fund is required in certain circumstances to apply backup withholding on
taxable dividends, redemption proceeds and certain other
payments that are paid to any shareholder if the shareholder does not furnish
the Fund with certain information and certifications or the shareholder is
otherwise
subject to backup withholding.
Other Information
Non-U.S.
investors are generally not subject to U.S. withholding tax with respect to
capital gain dividends, short-term capital gain dividends and interest
related
dividends, as defined in the SAI and subject to limitations set forth in the
SAI. With respect to distributions other than capital gain dividends, short
term
capital gain dividends and interest-related dividends, non-U.S. shareholders are
generally subject to U.S. withholding tax as a rate of 30% (or lower
applicable
treaty rate). Non-U.S. investors may also be subject to U.S. state, local, and
estate tax with respect to their Fund shares.
Each
Fund is required to report to you and the Internal Revenue Service annually on
Form 1099-B not only of the gross proceeds of Fund shares you sell or
redeem
but also of their cost basis. Shareholders should contact their intermediaries
with respect to reporting of cost basis and available elections with
respect
to their accounts. You should carefully review the cost basis information
provided by the applicable intermediary and make any additional basis,
holding
period or other adjustments that are required when reporting these amounts on
your federal income tax returns.
Please
see the SAI for additional information on the U.S. federal income tax
consequences of an investment in a Fund.
You
should consult your tax adviser for more information on your own situation,
including possible U.S. federal, state, local, foreign or other applicable
taxes.
Additional
Investor Services
Retirement Plans
Natixis
Funds offer a range of retirement plans, including IRAs and SEPs. For more
information about our Retirement Plans, call us at 800-225-5478.
Investment Builder Program
This
is Natixis Funds’ automatic investment plan. Once you meet the Fund minimum, you
may authorize automatic monthly transfers from your bank checking or
savings account to purchase shares of one or more Natixis Funds. For
instructions on how to join the Investment Builder Program, please refer to the
section
“How to Purchase Shares.”
Dividend Diversification Program
This
program allows you to have all dividends and any other distributions
automatically invested in shares of the same class of another Natixis Fund
subject to
the eligibility requirements of that other fund and to state securities law
requirements. The fund minimum must be met in the new fund prior to establishing
the dividend diversification program. Shares will be purchased at the selected
fund’s NAV without a front-end sales charge or CDSC on the ex dividend
date. Before establishing a Dividend Diversification Program into any other
Natixis Fund, please read its prospectus carefully.
Automatic Exchange Plan
Natixis
Funds have an automatic exchange plan under which shares of a class of a Natixis
Fund are automatically exchanged each month for shares of the same
class of another Natixis Fund. The fund minimum must be met prior to
establishing an automatic exchange plan. There is no fee for exchanges made
under
this plan. Please see the section “Exchanging or Converting Shares” above and
refer to the SAI for more information on the Automatic Exchange
Plan.
Systematic Withdrawal Plan
This
plan allows you to redeem shares and receive payments from a Fund on a regular
schedule. Redemptions of shares that are part of the Systematic Withdrawal
Plan are not subject to a CDSC, however, the amount or percentage you specify in
the plan may not exceed, on an annualized basis, 10% of the value
of your Fund account based upon the value of your Fund account on the day you
establish your plan. For information on establishing a Systematic Withdrawal
Plan, please refer to the section “How to Redeem Shares.”
Financial
Performance
The
financial highlights tables are intended to help you understand each Fund’s
financial performance for the last five years (or, if shorter, the period of the
Fund’s
operations). Certain information reflects financial results for a single Fund
share. The total returns in the table represent the return that an investor
would
have earned (or lost) on an investment in a Fund (assuming reinvestment of all
dividends and distributions). This information has been audited by PricewaterhouseCoopers,
LLP, an independent registered public accounting firm, whose report, along with
each Fund’s financial statements, is included in the Funds’
annual report to shareholders. The annual
report
is incorporated by reference into the SAI, both of which are available free of
charge upon request from
the Distributor.
Class
Y shares of the Funds are currently not available for purchase and had no
performance history as of the date of this Prospectus. Therefore, financial
highlights
tables are not included for Class Y shares of the Funds.
For a share outstanding throughout each
period.
Natixis Sustainable Future 2015
Fund®
|
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Class N |
|
|
Year
Ended
January
31, 2024 |
Year
Ended
January
31, 2023 |
Year
Ended
January
31, 2022 |
Year
Ended
January
31, 2021 |
Year
Ended
January
31, 2020 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income (loss) from Investment
Operations: |
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|
Net
investment income(a) |
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Net
realized and unrealized gain (loss) |
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Total
from Investment Operations |
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|
Less Distributions From: |
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Net
investment income |
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Net
realized capital gains |
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Total
Distributions |
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|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
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Total
return(b) |
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Ratios to Average Net
Assets: |
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|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c) |
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Gross
expenses |
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Net
investment income |
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Portfolio
turnover rate |
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(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have
been higher. |
|
(d) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.50% and 3.43%, respectively. |
|
(e) |
Effective
June 1, 2022, the expense limit decreased from 0.55% to
0.50%. |
|
(f) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.52% and 3.68%, respectively. |
|
(g) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.55% and 3.35%, respectively. |
|
(h) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.55% and 3.32%, respectively. |
|
(i) |
Effective
June 1, 2019, the expense limit decreased from 0.65% to
0.55%. |
|
(j) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.58% and 3.97%,
respectively. |
For a share outstanding throughout each
period.
Natixis Sustainable Future 2020
Fund®
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Year
Ended
January
31, 2024 |
Year
Ended
January
31, 2023 |
Year
Ended
January
31, 2022 |
Year
Ended
January
31, 2021 |
Year
Ended
January
31, 2020 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income (loss) from Investment
Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a) |
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b) |
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(d) |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
Generally
accepted accounting principles require certain adjustments to be made to
the net assets of the Fund for financial reporting purposes only, and as
such, the total returns
based on the adjusted net asset values per share may differ from the total
returns reported in the average annual total return
table. |
|
(d) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have
been higher. |
|
(e) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.50% and 4.30%, respectively. |
|
(f) |
Effective
June 1, 2022, the expense limit decreased from 0.55% to
0.50%. |
|
(g) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.52% and 4.48%, respectively. |
|
(h) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.55% and 3.92%, respectively. |
|
(i) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.55% and 4.11%, respectively. |
|
(j) |
Effective
June 1, 2019, the expense limit decreased from 0.65% to
0.55%. |
|
(k) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.58% and 3.95%,
respectively. |
For a share outstanding throughout each
period.
Natixis Sustainable Future 2025
Fund®
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Year
Ended
January
31, 2024 |
Year
Ended
January
31, 2023 |
Year
Ended
January
31, 2022 |
Year
Ended
January
31, 2021 |
Year
Ended
January
31, 2020 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income (loss) from Investment
Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a) |
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b) |
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(d) |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
Generally
accepted accounting principles require certain adjustments to be made to
the net assets of the Fund for financial reporting purposes only, and as
such, the total returns
based on the adjusted net asset values per share may differ from the total
returns reported in the average annual total return
table. |
|
(d) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have
been higher. |
|
(e) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.51% and 2.29%, respectively. |
|
(f) |
Effective
June 1, 2022, the expense limit decreased from 0.56% to
0.51%. |
|
(g) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.53% and 2.65%, respectively. |
|
(h) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.56% and 2.02%, respectively. |
|
(i) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.56% and 3.23%, respectively. |
|
(j) |
Effective
June 1, 2019, the expense limit decreased from 0.65% to
0.56%. |
|
(k) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.59% and 4.43%,
respectively. |
For a share outstanding throughout each
period.
Natixis Sustainable Future 2030
Fund®
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Year
Ended
January
31, 2024 |
Year
Ended
January
31, 2023 |
Year
Ended
January
31, 2022 |
Year
Ended
January
31, 2021 |
Year
Ended
January
31, 2020 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income (loss) from Investment
Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a) |
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b) |
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(d) |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
Generally
accepted accounting principles require certain adjustments to be made to
the net assets of the Fund for financial reporting purposes only, and as
such, the total returns
based on the adjusted net asset values per share may differ from the total
returns reported in the average annual total return
table. |
|
(d) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have
been higher. |
|
(e) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to<softreturn>average
net assets would have been 0.52% and 1.56%,
respectively. |
|
(f) |
Effective
June 1, 2022, the expense limit decreased from 0.57% to
0.52%. |
|
(g) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.54% and 1.66%, respectively. |
|
(h) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.57% and 1.69%, respectively. |
|
(i) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.57% and 3.11%, respectively. |
|
(j) |
Effective
June 1, 2019, the expense limit decreased from 0.65% to
0.57%. |
|
(k) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.60% and 4.60%,
respectively. |
For a share outstanding throughout each
period.
Natixis Sustainable Future 2035
Fund®
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Year
Ended
January
31, 2024 |
Year
Ended
January
31, 2023 |
Year
Ended
January
31, 2022 |
Year
Ended
January
31, 2021 |
Year
Ended
January
31, 2020 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income (loss) from Investment
Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a) |
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b) |
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c) |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per share net investment income has been calculated using the average shares outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have
been higher. |
|
(d) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.53% and 1.52%, respectively. |
|
(e) |
Effective
June 1, 2022, the expense limit decreased from 0.58% to
0.53%. |
|
(f) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.55% and 1.63%, respectively. |
|
(g) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.58% and 1.87%, respectively. |
|
(h) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.58% and 3.27%, respectively. |
|
(i) |
Effective
June 1, 2019, the expense limit decreased from 0.65% to
0.58%. |
|
(j) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.60% and 4.16%,
respectively. |
For a share outstanding throughout each
period.
Natixis Sustainable Future 2040
Fund®
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Year
Ended
January
31, 2024 |
Year
Ended
January
31, 2023 |
Year
Ended
January
31, 2022 |
Year
Ended
January
31, 2021 |
Year
Ended
January
31, 2020 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income (loss) from Investment
Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a) |
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b) |
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c) |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have
been higher. |
|
(d) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.54% and 1.50%, respectively. |
|
(e) |
Effective
June 1, 2022, the expense limit decreased from 0.59% to
0.54%. |
|
(f) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.56% and 1.88%, respectively. |
|
(g) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.59% and 2.25%, respectively. |
|
(h) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.59% and 3.61%, respectively. |
|
(i) |
Effective
June 1, 2019, the expense limit decreased from 0.65% to
0.59%. |
|
(j) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.61% and 4.67%,
respectively. |
For a share outstanding throughout each
period.
Natixis Sustainable Future 2045
Fund®
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Year
Ended
January
31, 2024 |
Year
Ended
January
31, 2023 |
Year
Ended
January
31, 2022 |
Year
Ended
January
31, 2021 |
Year
Ended
January
31, 2020 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income (loss) from Investment
Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a) |
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b) |
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c) |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have
been higher. |
|
(d) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.54% and 1.63%, respectively. |
|
(e) |
Effective
June 1, 2022, the expense limit decreased from 0.59% to
0.54%. |
|
(f) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.56% and 1.88%, respectively. |
|
(g) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.59% and 2.19%, respectively. |
|
(h) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.59% and 3.85%, respectively. |
|
(i) |
Effective
June 1, 2019, the expense limit decreased from 0.65% to
0.59%. |
|
(j) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.61% and 5.33%,
respectively. |
For a share outstanding throughout each
period.
Natixis Sustainable Future 2050
Fund®
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Year
Ended
January
31, 2024 |
Year
Ended
January
31, 2023 |
Year
Ended
January
31, 2022 |
Year
Ended
January
31, 2021 |
Year
Ended
January
31, 2020 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income (loss) from Investment
Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a) |
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b) |
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c) |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have
been higher. |
|
(d) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.55% and 1.67%, respectively. |
|
(e) |
Effective
June 1, 2022, the expense limit decreased from 0.60% to
0.55%. |
|
(f) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.57% and 2.05%, respectively. |
|
(g) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.60% and 2.38%, respectively. |
|
(h) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.60% and 4.22%, respectively. |
|
(i) |
Effective
June 1, 2019, the expense limit decreased from 0.65% to
0.60%. |
|
(j) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.62% and 5.45%,
respectively. |
For a share outstanding throughout each
period.
Natixis Sustainable Future 2055
Fund®
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Year
Ended
January
31, 2024 |
Year
Ended
January
31, 2023 |
Year
Ended
January
31, 2022 |
Year
Ended
January
31, 2021 |
Year
Ended
January
31, 2020 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income (loss) from Investment
Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a) |
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b) |
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c) |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have
been higher. |
|
(d) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.55% and 1.90%, respectively. |
|
(e) |
Effective
June 1, 2022, the expense limit decreased from 0.60% to
0.55%. |
|
(f) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.57% and 2.37%, respectively. |
|
(g) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.60% and 2.95%, respectively. |
|
(h) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.60% and 4.70%, respectively. |
|
(i) |
Effective
June 1, 2019, the expense limit decreased from 0.65% to
0.60%. |
|
(j) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.62% and 5.83%,
respectively. |
For a share outstanding throughout each
period.
Natixis Sustainable Future 2060
Fund®
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Year
Ended
January
31, 2024 |
Year
Ended
January
31, 2023 |
Year
Ended
January
31, 2022 |
Year
Ended
January
31, 2021 |
Year
Ended
January
31, 2020 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income (loss) from Investment
Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a) |
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b) |
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c) |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per share net investment income has been calculated using the average shares outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have
been higher. |
|
(d) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.55% and 2.35%, respectively. |
|
(e) |
Effective
June 1, 2022, the expense limit decreased from 0.60% to
0.55%. |
|
(f) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.57% and 3.22%, respectively. |
|
(g) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.60% and 3.53%, respectively. |
|
(h) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.60% and 5.47%, respectively. |
|
(i) |
Effective
June 1, 2019, the expense limit decreased from 0.65% to
0.60%. |
|
(j) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.62% and 6.23%,
respectively. |
For a share outstanding throughout each
period.
Natixis Sustainable Future 2065
Fund®
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Year
Ended
January
31, 2024 |
Year
Ended
January
31, 2023 |
Period
Ended
January
31, 2022* |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
|
Income (loss) from Investment
Operations: |
|
|
|
|
|
|
|
Net
investment income(a) |
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
Less Distributions From: |
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
|
Total
return(b) |
|
|
|
|
|
|
|
Ratios to Average Net
Assets: |
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
|
Net
expenses(d) |
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
| |
|
* |
From
commencement of operations on December 15, 2021 through January 31,
2022. |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
Periods
less than one year are not annualized. |
|
(d) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have
been higher. |
|
(e) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.55% and 5.48%, respectively. |
|
(f) |
Effective
June 1, 2022, the expense limit decreased from 0.60% to
0.55%. |
|
(g) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.57% and 5.85%, respectively. |
|
(h) |
Computed
on an annualized basis for periods less than one year. |
|
(i) |
Does
not include expenses of the underlying funds in which the Fund invests.
Had underlying fund expenses been included, the net and gross expense
ratios to average net assets
would have been 0.60% and 8.34%,
respectively. |
Appendix
A - Financial Intermediary Specific Commissions & Investment Minimum
Waivers
Appendix
A - Financial Intermediary Specific Commissions
& Investment Minimum Waivers
UBS Financial
Services, Inc. (“UBS-FS”)
Pursuant
to an agreement with the Funds, Class Y shares may be available on certain
brokerage platforms at UBS-FS. For such platforms, UBS-FS may charge
commissions
on brokerage transactions in the Funds’ Class Y shares. A shareholder should
contact UBS-FS for information about the commissions charged by UBS-FS
for such transactions.
The
minimum for the Class Y shares is waived for transactions through such brokerage
platforms at UBS-FS.
JP
Morgan
There
is no initial investment minimum for shareholders purchasing Class N shares
through Fee Based Programs (such as wrap accounts) where such shares
are
held within a JP Morgan omnibus account. Class N shares purchased through a Fee
Based Program and held within a JP Morgan omnibus account, where the
omnibus account does not have a balance of at least $1,000,000 within two years
of the establishment of the omnibus account, will not be subject to liquidation.
Exemption from Minimum Balance
Policy
Class
N accounts held within an omnibus account are exempt from the $500 minimum
balance policy.
Appendix
B - Additional Index Information
Appendix
B - Additional Index Information
|
| |
|
Bloomberg U.S. Aggregate Bond Index |
A
broad-based index that covers the U.S. dollar-denominated,
investment-grade, fixed-rate, taxable bond market of SEC-registered
securities.
The index includes bonds from the U.S. Treasury, government-related,
corporate, mortgage-backed securities, asset-backed securities,
and collateralized mortgage-backed securities sectors. |
|
S&P 500® Index |
The
index measures the performance of 500 widely held stocks in US equity
market. Standard and Poor’s chooses member companies for
the index based on market size, liquidity and industry group
representation. |
|
S&P Target Date® Index Series |
Consists
of multi-asset class indices, each corresponding to a specific target
retirement date. The asset allocation for each index in the
series
is determined once a year through survey of large fund management
companies that offer target date products. The various asset
class
exposure of the Indices may include equities, fixed income, REITs, and
commodities depending on the allocations reported in the survey.
Index returns are calculated daily. |
If you would like more information about the Funds,
the following documents are available free upon request:
Annual and Semiannual Reports—Provide
additional information about each Fund’s investments. Each annual report
includes a discussion of the market conditions
and investment strategies that significantly affected the Fund’s performance
during its last fiscal year.
Statement of Additional Information
(SAI)—Provides
more detailed information about the Funds and their investment limitations and
policies. The SAI has
been filed with the SEC and is incorporated into this Prospectus by
reference.
For a free copy of the Funds’ annual or semiannual
reports or their SAIs, to request other information about the Funds, and to make
shareholder inquiries generally, contact your
financial representative, visit the Funds’ website at im.natixis.com or call the
Funds at 800-225-5478.
Important Notice Regarding Delivery of Shareholder
Documents:
In
our continuing effort to reduce a fund’s expenses and the amount of mail that
you receive from us, we will combine mailings of prospectuses, annual or
semiannual
reports and proxy statements to your household. If more than one family member
in your household owns the same fund or funds described in a single
prospectus, report or proxy statement, you will receive one mailing unless you
request otherwise. Additional copies of our prospectuses, reports or
proxy
statements may be obtained at any time by calling 800-225-5478. If you are
currently receiving multiple mailings to your household and would like to
receive
only one mailing or if you wish to receive separate mailings for each member of
your household in the future, please call us at the telephone number
listed
above and we will resume separate mailings within 30 days of your
request.
Your financial representative or Natixis Funds will
also be happy to answer your questions or to provide any additional information
that you may require.
Text-only
copies of the Funds’ reports and SAI and other information are available free
from the EDGAR Database on the SEC’s Internet site at: www.sec.gov. Copies
of this information may also be obtained, after paying a duplicating fee, by
electronic request at the following e-mail address:
[email protected].
Portfolio Holdings—A
description of the Funds’ policies and procedures with respect to the disclosure
of each Fund’s portfolio securities is available in the SAI.
|
| |
|
Investment
Company Act File No. 811-09945 |
XSFF51-0624 |
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