Core Stable Value Fixed Income

The Core Stable Value Fixed Income strategy seeks to outperform the Bloomberg US Aggregate Index while maintaining a benchmark-aware risk return objective
Strategy Assets $16.9 billion As of 9/30/2025
Inception Date 3/1/2016

Overview

Strategy Details

Primary Benchmark
Bloomberg US Aggregate Index

Available Vehicles

  • Institutional Separate Account

Portfolio Managers

Chris Harms

Portfolio Manager, Co-Head of Relative Return

45 yearsIndustry Experience
15 yearsTenure at Loomis Sayles

Cliff Rowe, CFA

Portfolio Manager

33 yearsIndustry Experience
33 yearsTenure at Loomis Sayles

Daniel Conklin, CFA

Portfolio Manager

15 yearsIndustry Experience
13 yearsTenure at Loomis Sayles

About the Team

Relative Return

A comprehensive fixed income platform powered by seasoned investors and focused, benchmark aware investment strategies.

$135.4B assets under management (as of 9/30/2025)

Investment Strategy

  • Stable value portfolios can be customized based on a provider’s restrictions, enabling us to adhere to a mandate’s specific guidelines while providing the same philosophy and process as our Core Fixed Income strategy
  • Individual investment ideas are evaluated on the basis of their investment return potential and contribution to portfolio risk
  • Top-down macroeconomic analysis combined with bottom-up security selection drives portfolio construction
  • Investment flexibility is constrained to the investment grade portion of the US fixed income markets
  • Duration bands: +/- 1 year (typically within +/- 0.25 year) relative to the index
  • Typical portfolio: approximately 150 to 200 issuers, 250 to 300 issues
  • All investments must be US dollar denominated
  • Issuer maximum is 3% or the benchmark weight plus 2%( whichever is greater at the time of purchase), Treasurys and GSEs excluded
  • Industry maximum of 25% of the benchmark weight plus 10%, (whichever is greater at the time of purchase)
  • Investment universe typically includes US Treasurys, agencies, asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), investment grade corporate bonds, mortgage-backed securities (MBS), and Yankee bonds

Documents

Important Disclosures

KEY RISKS: Credit Risk, Issuer Risk, Interest Rate Risk, Liquidity Risk, Prepayment Risk and Extension Risk. Investing involves risk including possible loss of principal.
 
There is no guarantee that the investment objective will be realized or that the strategy will generate positive or excess return.
 
Investment vehicles may not be available to all investors and are subject to eligibility.

The Composite includes all discretionary accounts with market values greater than $20 million managed by Loomis Sayles with stable value investment guidelines prescribing investment in U.S. dollar denominated bonds that do not allow high yield and with the following characteristics. The portfolio has a total rate of return objective with an annualized tracking error target of 75 to 125 basis points over a full market cycle. Proprietary quantitative models are employed in portfolio construction and risk assessment. Loomis Sayles’s security level research and tactical sector allocation are primary alpha sources for this product. Yield curve and duration management are additional tools utilized by the portfolio management team. The Composite inception date is March 1, 2016. The Composite was created in October 2022.