High Yield Full Discretion

The High Yield Full Discretion strategy seeks to maximize total return through research driven security selection while managing downside risk through careful portfolio construction
Strategy Assets $2.1 billion As of 9/30/2025
Asset Class Fixed
Inception Date 1/1/1989

Overview

Strategy Details

Primary Benchmark
Bloomberg US Corporate High Yield Index

Available Vehicles

  • Institutional Separate Account
  • Mutual Fund
  • Commingled Trust
    Commingled trust may include a collective investment trust, an institutional-only investment structure that is exclusively available to qualified retirement plans which meet certain eligibility requirements. A collective investment trust is not available to retail investors or the general public. For more information, qualified retirement plan sponsors should reach out to their Loomis Sayles Relationship Manager.

Portfolio Managers

Matt Eagan, CFA

Portfolio Manager, Head of Full Discretion

35 yearsIndustry Experience
28 yearsTenure at Loomis Sayles

Brian Kennedy

Portfolio Manager

35 yearsIndustry Experience
31 yearsTenure at Loomis Sayles

Peter Sheehan

Portfolio Manager

18 yearsIndustry Experience
13 yearsTenure at Loomis Sayles

Eric Williams

Portfolio Manager

15 yearsIndustry Experience

Associate Portfolio Manager3

Chris Romanelli, CFA

Portfolio Manager, Associate Portfolio Manager, High Yield Corporate Strategist

20 yearsIndustry Experience
15 yearsTenure at Loomis Sayles

About the Team

Full Discretion

High-conviction, active credit investors focused on results.

$83.9B assets under management (as of 9/30/2025)

Investment Strategy

  • High conviction, active credit manager
  • High yield strategy seeking to exploit cross-sector opportunities across global high yield markets
  • Repeatable, deep value equity-like approach to fundamental research and issue selection
  • Allocations to out-of-benchmark securities can help to provide value and diversification
  • Risk awareness tools overlay fundamental investment process
  • May invest up to 10% in non-US dollar denominated securities
  • May invest up to 5% in equity securities
  • Maximum of 5% per non-government issuer (GSEs excluded)
  • Maximum of 25% per industry

Composite Performance

Cumulative Total Return (%)
As of 9/30/2025
Period Gross Net Index
3 Months 3.19%3.07%2.54%
Year-To-Date 8.26%7.89%7.22%
Annualized Total Return (%)
As of 9/30/2025
Period Gross Net Index
1 Year 9.24%8.74%7.41%
3 Years 11.18%10.66%11.09%
5 Years 5.40%4.90%5.55%
10 Years 5.85%5.34%6.17%
Since 1/1/1989 8.93%8.50%7.57%
Period Performance (%)
As of 9/30/2025
Year Gross Net Index
2024 9.83%9.32%8.19%
2023 11.07%10.56%13.44%
2022 -12.28%-12.69%-11.19%
2021 4.60%4.08%5.28%
2020 8.63%8.09%7.11%
2019 11.50%10.95%14.32%
2018 -2.51%-2.99%-2.08%
2017 8.68%8.15%7.50%
2016 17.74%17.16%17.13%
2015 -6.78%-7.22%-4.47%
Inception Date 1/1/1989

Documents

3Associate Portfolio Managers do not have discretion over the strategy.

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.
 
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 with market values greater than $5 million managed by Loomis Sayles with the objective of maximizing total rate of return, allow greater than 50% in high yield, and are considered fully discretionary (must allow exposure to all of the following non-index sectors: foreign issuers, foreign currency and emerging market debt). Loomis Sayles’s security level research and significant allocations to non-index sectors are primary alpha sources for this product. As of 1/1/2021 the Composite was redefined to include commingled vehicles, previously only separate accounts were included. The Composite inception date is January 1, 1989. The Composite was created in 2003.