The Fund seeks to maximise risk-adjusted return potential by investing in global investment grade credit, global high yield credit, bank loan, securitised, and emerging markets sectors based on the current phase of the global credit cycle. Portfolio investment decisions are made on the basis of top-down and bottom-up research undertaken by Loomis Sayles’ alpha strategies team. The Fund is co-managed by portfolio managers Andrea DiCenso, Tom Fahey and Kevin Kearns.
Managing Director of Natixis in Australia, Louise Watson, commented, “Investors are telling us they want a range of fixed-interest securities in their portfolios, to provide diverse sources of income – by geography, industry and sector. However, some investors may not have the resources to manage such a diverse portfolio. Outsourcing the asset allocation decisions between the wide range of credit asset classes on offer allows the investors to be nimble and act on opportunities within fixed interest as they arise. Quite a few have told us that by the time they act on an opportunity, it’s too late, and they’ve missed the boat.”
The Fund aims to offer investors a diversified income portfolio, made up of a range of credit securities including global investment grade credit, global high-yield credit, bank loans and emerging markets.
Co-portfolio Manager Kevin Kearns explained, “Our investment process is fundamentally research-driven, but it is also tactically opportunistic in that we move quickly to capture credit risk premiums around the world in a range of asset classes and credit instruments.”
Mr Kearns went on to stress the importance of understanding credit cycles. According to Mr Kearns, to really benefit from potential opportunities in credit markets, an investor must first analyse where a country is in its credit cycle, then determine the securities with the highest risk premia opportunities for that specific regime within the cycle.
“By looking at credit opportunities in this way and adjusting our portfolio accordingly, we offer investors the chance to act quickly, both offensively and defensively, and to increase their exposure to diversified sources of income,” Mr Kearns said.
Ms Watson ended by saying that that she believes that this strategy can deliver strong returns in this low yielding environment.
“Now is the right time for Australian investors to seriously consider a multi-asset credit strategy. These strategies, where the manager understands the global credit cycle and the upside and downside of every single security and what is driving the value of each company, are ideally suited to the current low interest rate, high volatility environment. And they should become even more helpful as rates begin to normalise. Global markets move quickly – and that’s why an active, research-driven approach is the best way to identify where income opportunities are right now, and move quickly to capture them,” Ms Watson said.
About Loomis Sayles
Since 1926, Loomis, Sayles & Company has helped fulfill the investment needs of institutional and mutual fund clients worldwide. The firm’s performance-driven investors integrate deep proprietary research and integrated risk analysis to make informed, judicious decisions. Teams of portfolio managers, strategists, research analysts and traders collaborate to assess market sectors and identify investment opportunities wherever they may lie, within traditional asset classes or among a range of alternative investments. Loomis Sayles has the resources, foresight and flexibility to look far and wide for value in broad and narrow markets in its commitment to deliver attractive sustainable returns for clients. This rich tradition has earned Loomis Sayles the trust and respect of clients worldwide, for whom it manages $249.7 billion* in assets (as of December 31, 2018).
*I ncludes the assets of both Loomis, Sayles & Co., LP, and Loomis Sayles Trust Company, LLC ($22.2 billion for the Loomis Sayles Trust Company). Loomis Sayles Trust Company is a wholly owned subsidiary of Loomis, Sayles & Company, L.P.
About Natixis Investment Managers
Natixis Investment Managers serves financial professionals with more insightful ways to construct portfolios. Powered by the expertise of more than 20 specialised investment managers globally, we apply Active Thinking® to deliver proactive solutions that help clients pursue better outcomes in all markets. Natixis ranks among the world’s largest asset management firms1 ($960.3 billion / €855.4 billion AUM2).
Headquartered in Paris and Boston, Natixis Investment Managers is a subsidiary of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Investment Managers’ affiliated investment management firms and distribution and service groups include Active Index Advisors®;3 AEW; Alliance Entreprendre; AlphaSimplex Group; Darius Capital Partners; DNCA Investments;4 Dorval Asset Management;5 Flexstone Partners;6 Gateway Investment Advisers; H2O Asset Management;5 Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Managed Portfolio Advisors®;3 McDonnell Investment Management;7 Mirova;8 MV Credit; Naxicap Partners; Ossiam; Ostrum Asset Management; Seeyond;8 Seventure Partners; Vaughan Nelson Investment Management; and Vega Investment Managers. Not all offerings available in all jurisdictions. For additional information, please visit the company’s website at im.natixis.com | LinkedIn: linkedin.com/company/natixis-investment-managers.
Natixis Distribution, L.P. is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.
Provided by Natixis Investment Managers Australia Pty Limited (ABN 60 088 786 289)(AFSL No.246830) and is intended for the general information of financial advisers and wholesale clients only.
1 Cerulli Quantitative Update: Global Markets 2018 ranked Natixis Investment Managers as the 16th largest asset manager in the world based on assets under management as of December 31, 2017.
2 Net asset value as of March 31, 2019 . Assets under management (“AUM”), as reported, may include notional assets, assets serviced, gross assets and other types of non-regulatory AUM. AUM does not include Vega Investment Managers, which was transferred to Natixis Wealth Management in December 2018.
3 A division of Natixis Advisors, L.P.
4 A brand of DNCA Finance.
5 A subsidiary of Ostrum Asset Management.
6 Flexstone Partners assets as of 9/30/18. Flexstone was established in 2018 by bringing together four specialised private investments firms: Caspian Private Equity, Euro-Private Equity France, Euro-Private Equity Swiss and Eagle Asia Partners.
7 Natixis Investment Managers transferred ownership of McDonnell Investment Management, LLC to Loomis, Sayles & Company, L.P. on 1/1/19.
8 Operated in the US through Ostrum Asset Management U.S., LLC.