Investment Objective
To outperform three month US Dollar LIBOR by 400 basis points per annum (net of fees) over a market cycle prior to hedging the Portfolio back into Australian dollars.

Primary Investments
The Fund invests primarily in Global High Yield Securities (including Emerging Market Securities) and US Senior Loans, and can also invest in Treasury Securities, Treasury Futures, cash, foreign currency forward contracts and derivatives.

Style
Credit focused. Target return offering both defensive and opportunistic characteristics over a credit cycle.

Investment Philosophy
Loomis Sayles’ philosophy is based on the experience that bond markets do not properly assess credit risk and tend to overact to corporate events. Through intensive research, Loomis Sayles can identify mispriced securities to generate a superior excess return.

Investment Management
In determining the investments for the Fund, the Sub-Investment Manager relies on input from its investment staff. These include macroeconomic input from its Research, Economics and Quantitative Research and Risk Management Groups used by the Global Asset Allocation (“GAA”) Team, as well as top down asset allocation from its GAA Team and security selection from its portfolio managers and product teams.

The Sub-Investment Manager’s Senior Loan Product Team uses intensive fundamental credit research as the key driver of its security selection and seeks to ensure that the risk of default is thoroughly analysed and that, in the event of default, there is sufficient collateral/firm value to maximise the chance of recovering the full investment.

The Sub-Investment Manager’s High Yield Product Team emphasises bottom-up, credit research-driven issue selection with awareness of the macro-economic environment. Security selection is its primary driver of performance. Bottom-up investment evaluation drives its portfolio investments and resulting sector allocations. Its resulting portfolios are well diversified and intended to generate superior long-term investment performance when compared to the high yield indices.

Portfolio Fit
Will complement a traditional fixed income portfolio or alternatives strategy by providing diversification benefits and protection during periods of rising interest rates or inflation.

Currency
Generally between 95% and 105% of the Fund's assets are hedged into Australian dollars.

Vehicle
Fully distributing wholesale Australian Registered Managed Investment Scheme. The Fund has daily valuations and is open to applications and redemptions on the 1st and 15th day of each month (or the first business day after those days). Applications and redemptions are subject to the timelines disclosed in the Information Memorandum. Equity Trustees Limited acts as Responsible Entity.

Sub-Investment Manager
Loomis, Sayles & Company, L.P.

Portfolio Team
Three portfolio managers supported by the broader Loomis Sayles credit research and risk management teams.

Loomis Sayles Global Asset Allocation (GAA) team, comprising the senior investment professionals at Loomis Sayles, is responsible for the asset allocation positioning of the Fund.

APIR Code
IAM0004AU

 


Loomis, Sayles & Company, L.P. is exempt from the requirement to hold an AFSL under the Corporations Act 2001 (Cth) in respect of financial services. Loomis, Sayles & Company, L.P. is regulated by the SEC under US laws, which differ from Australian laws.

This page has been issued by Natixis Investment Managers Australia Pty Limited Limited (“Natixis AUST”). Information herein is based on sources Natixis AUST believe to be accurate and reliable as at the date it was made. Natixis AUST reserve the right to revise any information herein at any time without notice. The above Fund data is intended for the general information of financial advisers and wholesale clients only and does not constitute any offer or solicitation to buy or sell securities and no investment advice or recommendation. Investment involves risks. The Fund presented herein may use financial derivatives instruments for investment, hedging risk management, and/or efficient portfolio management purposes. This involves significant risk and is usually more sensitive to price movements. Investors should read the Fund Constitution and Information Memorandum for further details including risk factors before making a decision to invest. Past performance information presented is not indicative of future performance. Positive dividend yield does not imply positive returns. Investment returns may be exposed to exchange rate fluctuations. Source: Natixis.