Institutional

The Global High Yield in EUR strategy seeks to outperform the ICE BofA Merrill Lynch Global High Yield Index through diversified and actively managed exposure to the global high yield credit market

Primary Benchmark:

ICE BofA ML Global High Yield in EUR Index

Strategy Highlights

• Primarily seeks to leverage the insights of Loomis Sayles’ global high yield sector team to outperform through issue and sector selection
• Modify relative market exposure based on macro views of credit cycle
• Seeks to add value through limited exposure of off-benchmark positions
• Seeks to achieve gross returns of 100-150 basis points in excess of the ICE BofA Merrill Lynch Global High Yield Index with a tracking error of 200-300* basis points over a market cycle

Portfolio Construction

• Typical portfolio: 100 to 200 issuers
• 3% maximum per issuer with typical positions of 1% (Government & GSEs excluded), or benchmark weighting +/-2%, as determined at the time of purchase
• 25% maximum per industry or benchmark weighting +/-15%, as determined at the time of purchase
• Typical average duration range: +/- 2 years relative to the duration of the index
• Minimum average quality: B- or higher at purchase. There is no minimum credit quality requirement for any individual investment

Primary Benchmark:
ICE BofA ML Global High Yield in EUR Index