Capturing yield in Asia and beyond

Elisabeth Colleran and Thu Ha Chow, Co-Portfolio Managers of the strategy, explain why investors should consider Asia High Yield bonds with a broader approach to emerging markets.

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The fund provides the opportunity to capture attractive yield while allocations to “Plus” countries diversifies away from China’s dominance in the index.

~ Thu Ha Chow
Co-Portfolio Manager, Senior Credit Strategist, Loomis, Sayles & Co.


Strategy

Loomis Sayles Asia Bond Plus invests in emerging market corporates, quasi-sovereign and sovereign issues across Asia. Actively managed by Loomis Sayles’ emerging markets debt team, it also seeks to capture attractive income and diversification benefits outside of Asia in countries in the Middle East, Africa and emerging Europe.

Greater Yield Potential in Asia

Compared to other areas of the world today, Asia offers attractive yield opportunities. It also exhibits one of the highest growing regions. In fact, according to the IMF, Asia contributes to 60% of world GDP growth and is expected to grow to 65% by 2024.1

Broader Opportunity Set

The strategy’s flexibility to invest in the “Plus” regions introduces complementary investment opportunities in the Middle East, Africa, and Eastern Europe. That said, Plus region country exposure is managed with tight risk controls.

Deep Credit Research

Loomis Sayles has long been known for its credit research expertise and has utilized a proprietary credit rating system since the 1930s. In dislocated and fast-moving markets, the rating agencies can struggle to keep up and mounting investor fear on downgrades often lead to overcorrections. Disconnects between valuations and fundamentals lead to anomalies that investors like Loomis Sayles seek to exploit.

Localized Expertise

The fund’s management team includes localized credit experts headquartered in Singapore that help to create proprietary frameworks focused on extracting value in the region. It is also supported by Loomis Sayles’ renowned global research platform.

Investment Universe

Capturing Yield in Asia and Beyond - In Pursuit of Income in the Emerging World
Capturing yield in Asia and beyond - In pursuit of income in the emerging world


Loomis Sayles Research

Loomis Sayles fund managers use an active, high-conviction approach, supported by the firm’s deep research capabilities. In fact, 75% of investment professionals at Loomis Sayles are dedicated to research and trading, and $105 million was committed to proprietary research in 2020.
The bedrock of what we do is the deep fundamental credit analysis. We come to understand what is driving the companies, and delve into the valuations.

~ Elisabeth Colleran, CFA®
VP, Co-Portfolio Manager, Loomis, Sayles & Co.