Global Allocation: Best Ideas Across the Capital Structure
For the past 25 years, the Loomis Sayles Global Allocation Fund has sidestepped the data storm, using Loomis Sayles’ time-tested approach to uncover its best ideas across equities and fixed income.
With concerns about equity market valuations, rising interest rates, and inflation, this flexible global allocation strategy may be of interest to investors. Focused on fundamental research, and having minimal regional, country, sector or currency constraints, this fund can offer a wider opportunity set to help enhance diversification and pursue attractive risk-adjusted returns.
Opportunistic, Go-anywhere Approach
Every security selection the veteran management team of Loomis Sayles Global Allocation Fund takes is viewed with sustainable, long-term outperformance potential in mind. The team’s bottom-up analysis across all geographies is supported by Loomis, Sayles & Company’s global research platform. A thorough assessment of risk/reward opportunities within each major asset class is also employed. When analyzing equity or fixed income holdings for this high conviction portfolio, the following factors are considered:
Three main alpha drivers from equity research:
- Quality companies
- Intrinsic value growth
- Valuation: base, best, and downside case analysis
- Capitalize on market dislocations to deliver medium to long-term performance
- While many global allocation funds gravitate towards treasuries, this opportunistic, value-driven approach could mean gaining exposure to corporate securities, high yield debt, and emerging markets
25 Years of Outperformance
Loomis Sayles Global Allocation Fund has delivered outperformance over its all equity benchmark, while having a dedicated fixed income allocation. The team views fixed income as a source of not only diversification, but also alpha. Consider LSWWX results compared to its Morningstar category World Allocation peers and its attractive returns through the years.
Performance Analysis (6/30/2021):
Morningstar Ratings and Rankings (Class Y)
Average Annualized Total Returns %
This material is provided for informational purposes only and should not be construed as investment advice. All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments.
Gross expense ratio 0.90% (Class Y share) / 1.15% (Class A share). Net expense ratio 0.90% (Class Y share) / 1.15% (Class A share). As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the fund has been exceeded. This arrangement is set to expire on 1/31/2022. When an expense cap has not been exceeded, gross and net expense ratios may be the same.
Equity securities are volatile and can decline significantly in response to broad market and economic conditions. Fixed income securities may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity. Foreign and emerging market securities may be subject to greater political, economic, environmental, credit, currency and information risks. Foreign securities may be subject to higher volatility than US securities, due to varying degrees of regulation and limited liquidity. These risks are magnified in emerging markets. Below investment grade fixed income securities may be subject to greater risks (including the risk of default) than other fixed income securities. Currency exchange rates between the US dollar and foreign currencies may cause the value of the Fund's investments to decline.
The MSCI All Country World Index (Net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The Blended Index is an unmanaged, blended index composed of the following weights: 60% MSCI ACWI (Net) and 40% Bloomberg Barclays Global Aggregate Bond Index. The Bloomberg Barclays Global Aggregate Bond Index provides a broad-based measure of the global investment-grade fixed income markets. The four major components of this index are the US Aggregate, the Pan-European Aggregate, the Asian-Pacific Aggregate, and the Canadian Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities. You may not invest directly in an index.
The fund’s total return percentile rank for the specified time period is relative to all funds that have the same Morningstar category. The highest (or most favorable) percentile rank is 1, and the lowest (or least favorable) percentile rank is 100. Rankings are subject to change monthly. Morningstar rankings do not include the effect of sales charges. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ used to rank the fund against other funds in the same category. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly excess performance, without any adjustments for loads (front-end, deferred, or redemption fees), placing more emphasis on downward variations and rewarding consistent performance. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star (each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages). Overall rating derived from weighted average of the 3-, 5- and 10-year (if applicable) Morningstar Rating metrics; other ratings based on risk-adjusted returns.
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Natixis Distribution, L.P. (fund distributor, member FINRA | SIPC) and Loomis, Sayles & Company, L.P. are affiliated.