Wednesday, December 15, 2010
Loomis Sayles Launches an 'All Weather' Fund
Reported by Armie Margaret Lee
has rolled out what company officials are pitching as an "all weather" fund, aimed at investors who want consistent returns in all market environments. Matthew Eagan, Kevin Kearns and Todd Vandam are running the Loomis Sayles Absolute Strategies Fund
"As we listen to market sentiment, it has become clear that investors are looking for a nimble process that can tactically respond to what we believe are the three biggest drivers in the market today – Credit, Curve (interest rates) and Currencies," Eagan said in a press release.
Company Press Release
Loomis Sayles Launches Flexible Risk-Managed Absolute Return Fund
Unconstrained by benchmark; Enables tactical responsiveness to shifting economic environments
BOSTON-- Loomis, Sayles & Company today launched the Loomis Sayles Absolute Strategies fund (LASYX), a global absolute return-oriented fixed income strategy. The Fund, co-managed by three fixed income veterans, is intended to be an "all weather" product for investors seeking consistent returns through all market environments. In pursuing this objective, it has the freedom to invest in opportunities across a span of global securities and sectors. The Fund also has the ability to engage long/short strategies that aim to hedge against or capitalize on unfolding events that influence market moves.
Utilizing Loomis Sayles' deep fundamental research capabilities, global macroeconomic analysis and quantitative risk management, the investment team may opportunistically invest in a variety of asset classes and security types, including fixed income (government, sovereign and corporate), currencies, securitized assets, and derivatives. The Fund's portfolio management team is comprised of three seasoned investment professionals, representing 55 years of combined experience: Matthew Eagan, also a co-manager of Loomis Sayles award-winning Multisector Bond funds; Kevin Kearns, senior derivatives strategist and absolute return portfolio manager; and Todd Vandam, senior credit strategist.
"As we listen to market sentiment, it has become clear that investors are looking for a nimble process that can tactically respond to what we believe are the three biggest drivers in the market today – Credit, Curve (interest rates) and Currencies," said Matt Eagan, co-portfolio manager of the Fund. "We have designed this Fund to take full advantage of the best ideas generated by our vast research and analytical resources."
The investment process begins by identifying key global macro themes through the extensive analysis provided by Loomis Sayles' specialized research teams – including global inflation scenarios, yield curves, currency outlook, and credit cycle. Next, the team assesses top-down risk/return opportunities to find, in their view, the best cross-asset class ideas and evaluates their best bottom-up investment strategies by assessing the value of each sector. The team constructs the portfolio integrating a multi-tiered approach to risk management throughout the security selection and allocation process.
Commenting on the Fund's launch, Jae Park, chief investment officer for Loomis Sayles Fixed Income group, said: "Faced with a host of possible global economic scenarios over the next several years, we are always looking for ways to help investors acquire the flexibility needed to help maximize return while stemming the downside risk associated with volatile markets. We believe this Fund can provide a solution to that challenge."
About Loomis Sayles
Since 1926, Loomis, Sayles & Company, L.P. has served the investment needs of institutional and mutual fund clients. As performance-driven investors seeking exceptional opportunities, Loomis Sayles employs actively managed disciplines that combine fundamental research, systematic risk assessment and experienced portfolio management. This rich tradition has earned Loomis Sayles the trust and respect of clients worldwide, for whom it manages more than $149.8 billion in equity and fixed income assets as of September 30, 2010.
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