Uncovering Portfolio Opportunities Worldwide

Portfolio Manager Eileen Riley discusses how she and her team take a global approach to value discovery

Eileen Riley, Co-Manager for the Loomis Sayles Global Allocation strategy, discusses favoring equities over fixed income in the current environment, identifying three alpha drivers, and her team’s experienced and informed best-ideas approach:

  • The team believes there is a more attractive return profile for equities versus fixed income today. Specifically, the large size of negative yield in government debt globally is something the team is looking to avoid.
  • All equity holdings have to meet three alpha drivers: quality, intrinsic value growth, and valuation.
  • Equity holdings example: Real estate company is capitalizing on the outsourcing trend in property management to create a recurring revenue stream.
  • Fixed income allocation is focused on select opportunities.
  • Overall, this global allocation strategy looks to deliver equity-like returns with lower volatility for clients over time.
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided. Past performance is no guarantee of, and not necessarily indicative of, future results. This video is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed are as of November 7, 2019 and may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted, and actual results may vary.

Risks:
Bonds may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity. Below investment grade bonds may be subject to greater risks (including the risk of default) than other fixed income securities.

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