Natixis Global Asset Management's Hailer Expects Volatility in Markets, U.S. Economy

Makes comments in first of new series of Quarterly Economic Outlook Briefings

Equity markets and the U.S. economy are in for an extended period of volatility throughout this year, according to John Hailer, president and chief executive officer of Natixis Global Asset Management (NGAM) – The Americas & Asia.

"More than ever, we believe investors need to make risk their primary consideration and be thinking about making moves today to minimize volatility and achieve true diversification among asset classes," said Hailer. He made his comments in a quarterly commentary on markets and the economy – the first in a series of discussions to be posted on the NGAM website.

"Investors should look to create more durable portfolios that put risk first, minimize volatility, and employ a diverse set of non-correlated asset classes," Hailer said. "Durable portfolios make smarter use of traditional asset classes like stocks and bonds, utilize alternative investments like commodities and hedged equities, and employ non-correlated investment techniques like hedging and long/short strategies to further reduce the risk in an investor's portfolio."

Economic growth should be stronger at this point in the recovery from the financial crisis of 2008-2009, Hailer said. The U.S. economy grew by an annual rate of less than 3 percent in the first quarter of 2012. And, while employers have hired more than 200,000 workers in each of the last eight months, the unemployment rate remains at 8.3 percent. At that pace, it would take eight years for employment to drop to pre-crisis levels.

Hailer also said:

• Investment managers at NGAM affiliates see good long-term values in the U.S. Earnings should rise 6% to 8% this year, corporate balance sheets are strong, and dividends and share buybacks are increasing.
• While the European debt crisis appears to have stabilized, the continent is entering or already in a recession. If Italy's debt situation worsens, there could be a profound impact on Europe and on bond markets worldwide.
• More than 500 million voters across the world will go to the polls to elect national leaders. The lack of clarity about government policy before those votes take place is expected to add to market volatility.

The full video can be seen at www.ngam.natixis.com.

About Natixis Global Asset Management, S.A.

Natixis Global Asset Management, S.A. is one of the 15 largest asset managers in the world based on assets under management.¹ Its affiliated asset management companies provide investment products that seek to enhance and protect the wealth and retirement assets of both institutional and individual investor clients. Its proprietary distribution network helps package and deliver its affiliates' products around the world. Natixis Global Asset Management, S.A. brings together the expertise of multiple specialized investment managers based in Europe, the United States and Asia to offer a wide spectrum of equity, fixed-income and alternative investment strategies.

Headquartered in Paris and Boston, Natixis Global Asset Management, S.A. has assets under management totaling $706 billion (€544 billion) as of December 31, 2011. Natixis Global Asset Management, S.A. is part of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Global Asset Management, S.A.'s affiliated investment management firms and distribution and service groups include Absolute Asia Asset Management; AEW Capital Management; AEW Europe; AlphaSimplex Group; Aurora Investment Management; Capital Growth Management; Caspian Capital Management; Darius Capital Partners; Gateway Investment Advisers; H2O Asset Management; Hansberger Global Investors; Harris Associates; IDFC Asset Management Company; Loomis, Sayles & Company; Natixis Asset Management; Natixis Multimanager; Ossiam; Reich & Tang Asset Management; Snyder Capital Management; and Vaughan Nelson Investment Management.

¹Cerulli Quantitative Update: Global Markets 2011, based on December 31, 2010 AUM of $713 billion.

The analyses and opinions referenced herein represent the subjective views of John Hailer as of March 26, 2012. They are subject to change at any time based on market and other conditions. There can be no assurance that developments will transpire as forecasted.

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Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50236794&lang=en

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