Boston (September 29, 2020) – Loomis, Sayles & Company, an affiliate of Natixis Investment Managers, announced today the launch of the Loomis Sayles Credit Income Fund (LOCAX), a value-driven, long-term fixed income strategy designed to exploit price inefficiencies and market volatility to deliver income and performance over a full market cycle.
The fund combines bottom-up security selection, which is expected to be the primary driver of alpha, with top-down strategic macroeconomic views. A corporate bond-focused portfolio, it draws on a global investment universe that includes investment grade credit, high yield credit, securitized debt, emerging market debt and convertible bonds. The fund is managed by longtime Full Discretion team portfolio managers Matt Eagan, Elaine Stokes and Brian Kennedy and supported by Loomis Sayles’ deep credit expertise and global research capabilities.
The Full Discretion team, led by Matt Eagan and Elaine Stokes, seeks to identify deeply discounted securities with call protection that can build yield advantage into their portfolios and provide long-term capital appreciation. This philosophy, pioneered by Loomis Sayles vice chairman Dan Fuss, is underpinned by credit selection based on enterprise value and convexity.
“We believe the Loomis Sayles Credit Income Fund taps into the team’s core competency as effective bond pickers while addressing important demand for a pure credit product,” said Kevin Charleston, chairman and CEO of Loomis Sayles. “The Full Discretion team’s investment philosophy has been tried and tested over the decades and this product leverages their expertise in credit selection with an approach that is both strategic and opportunistic.”
In general, the fund focuses primarily on fixed income securities with ample flexibility to invest in higher yielding parts of the market to pursue income and enhance diversification. The fund may invest up to 35% of its assets in below investment grade fixed income securities and up to 30% of its assets in US dollar denominated securities of foreign issuers, including emerging markets. To provide flexibility and choice for investors, the Loomis Sayles Credit Income strategy is also available to eligible financial advisors and their clients through retail separately managed accounts (“SMAs”).
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 the 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 $310.9 billion ** in assets (as of June 30, 2020).
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 specialized investment managers globally, we apply Active Thinking® to deliver proactive solutions that help clients pursue better outcomes in all markets. Natixis Investment Managers ranks among the world’s largest asset management firms1 with $908.9 billion / €828.4 billion assets under management.2
Natixis Investment Managers includes all of the investment management and distribution entities affiliated with Natixis Distribution, L.P. and Natixis Investment Managers S.A. Services/ products are not available to all investors in all jurisdictions.
2 Assets under management (“AUM”) as of March 31, 2020. AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.
Before investing, consider the Fund's investment objectives, risks, charges and expenses. Visit loomissayles.com or call 1-800-633-3330 for a prospectus or summary prospectus, if available, containing this and other information. Read it carefully.
Natixis Distribution L.P. (fund distributor FINRA|SIPC) and Loomis, Sayles & Company, L.P. are affiliated.
There is no guarantee that the investment objective will be realized or that the strategy will generate positive or excess return.
Fixed Income Securities Risk:
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
Below Investment Grade Securities Risk:
Below investment grade fixed income securities may be subject to greater risks (including the risk of default) than other fixed income securities.
Foreign and Emerging Market Securities Risk:
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.
Collateralized Loan Obligation ("CLO") Risk:
Investments in CLOs involve risks in addition to the risks associated with investments in debt obligations and other fixed-income securities such as credit risk, interest rate risk, liquidity risk and market/issuer risk. The degree of such risk will generally correspond to the type of underlying assets and the specific tranche in which the Fund is invested.