Natixis Investment Managers presents a nuanced view on global equity allocation. While the overarching Natixis tactical models continue to be overweight in US stocks and exhibit a preference for equities over bonds due to robust US earnings expectations and economic strength, some of its affiliated managers are actively diversifying. For instance, Harris Oakmark, a subsidiary, is significantly underweight in US equities and overweight in Europe, citing improved European earnings expectations (11% this year compared to 7% last year) and attractive valuations in high-quality European businesses. Pictet Wealth Management also recommends reducing US equity allocation while increasing exposure to European and emerging market equities in 2026.
Several Natixis subsidiaries highlight opportunities beyond the US. Mirova notes that the "Magnificent 7" US tech stocks have underperformed this year, while South Korea, Japan, and Europe have seen significant performance. Mabrouk Chetouane of Natixis Investment Managers also sees potential in South Korea, Taiwan, and Latin America. Lombard Odier remains heavily invested in Asia, which constitutes 70% of emerging markets. DNCA Finance points to European equities performing well for three years, with investors diversifying from US assets, though US earnings growth is still projected to be double-digit compared to mid-single digits in Europe.
Despite the broader trend of diversification away from US equities by some managers, particularly into Europe, Japan, and emerging markets, Natixis's tactical models themselves have maintained an overweight position in US stocks. This is supported by their belief in the long-term AI investment cycle, even as market leadership within the theme evolves. They also continue to view US stocks as having better earnings power and are monitoring opportunities in US small caps and regional banks. However, HSBC Private Bank acknowledges investors are actively diversifying from the US, yet notes the resilience of the US market, particularly its energy and dominant tech sectors, during geopolitical conflicts.
