Emerging Markets Corporate Debt – Investment Grade Plus
Overview
Strategy Details
Available Vehicles
- Institutional Separate Account
Portfolio Managers
Elisabeth Colleran, CFA
Portfolio Manager, Co-Head of Emerging Markets Debt
Dilawer Farazi, ACA
Portfolio Manager, Co-Head of Emerging Markets Debt
Eddy Sternberg
Portfolio Manager
About the Team
Focused on issuer selection as the key to unlocking alpha across sovereign, corporate and local currency markets
Investment Strategy
- Value-oriented portfolio investing primarily in hard currency investment grade emerging markets fixed income securities of corporations
- Seeks to add value by combining top-down macroeconomic analysis with research-driven, bottom-up security selection
- Leverages Loomis Sayles’ extensive macroeconomic and credit research including coverage of more than 70 emerging markets countries and over 650 emerging markets corporate, sovereign and quasi-sovereign issuers*
- Proprietary portfolio construction platform that integrates fundamental research and quantitative measures to guide relative value and risk management decision making
- ESG considerations are integrated into our risk and valuation analysis and into portfolio construction
- Minimum average quality: Baa3
- Maximum allocation to high yield is 15%
- Effective duration: +/- 1 year relative to the benchmark
- Typical portfolio: 125 to 185 issuers
Composite Performance
Cumulative Total Return (%)
As of 9/30/2025| Period | Gross | Net | Index |
|---|---|---|---|
| 3 Months | 3.41% | 3.25% | 3.02% |
| Year-To-Date | 7.90% | 7.38% | 7.28% |
Annualized Total Return (%)
As of 9/30/2025| Period | Gross | Net | Index |
|---|---|---|---|
| 1 Year | 5.96% | 5.28% | 5.57% |
| 3 Years | 8.31% | 7.63% | 7.64% |
| 5 Years | 2.23% | 1.67% | 1.32% |
| 10 Years | 4.28% | 3.76% | 3.49% |
| Since 7/1/2015 | 4.03% | 3.51% | 3.30% |
Period Performance (%)
As of 9/30/2025| Year | Gross | Net | Index |
|---|---|---|---|
| 2024 | 5.16% | 4.48% | 4.93% |
| 2023 | 7.45% | 6.76% | 7.57% |
| 2022 | -11.70% | -12.09% | -14.20% |
| 2021 | 0.10% | -0.33% | 0.08% |
| 2020 | 8.29% | 7.83% | 7.45% |
| 2019 | 13.99% | 13.51% | 12.64% |
| 2018 | -1.10% | -1.53% | -0.59% |
| 2017 | 7.32% | 6.83% | 6.27% |
| 2016 | 7.32% | 6.79% | 5.84% |
| 2015 | -1.05% | -1.30% | -0.91% |
Documents
*A quasi sovereign is defined as being 100% guaranteed or 100% owned by the government. A sovereign is hard currency debt issued by an emerging market government.
Important Disclosures
Performance data shown represents past performance and is no guarantee of future results. Current performance may be lower or higher than quoted. Returns are shown in US dollars and are annualized for one and multi-year periods. Gross returns are net of trading costs. Net returns are gross returns less effective management fees.
KEY RISKS: Credit Risk, Issuer Risk, Interest Rate Risk, Liquidity Risk, Non-US Securities Risk, Currency Risk, Prepayment Risk and Extension Risk. Investing involves risk including possible loss of principal.
Commodity interest and derivative trading involves substantial risk of loss.
Diversification does not ensure a profit or guarantee against a loss.
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 managed by Loomis Sayles with market values of at least $20 million which primarily invest in investment grade hard currency debt of corporate, sovereign, and quasi-sovereign entities located in emerging market economies and that are benchmarked to hard currency emerging market corporate indices. Loomis Sayles’s security level research and significant tactical country and sector allocation are primary alpha sources for this product. The Composite inception date is July 1, 2015. The Composite was created in March 2018.