The High Yield Conservative strategy seeks to maximize total return through research driven security selection while managing downside risk through careful portfolio construction
Bloomberg US Corporate High Yield Index
- Typical portfolio holds 125 issuers or more
- 5% maximum per issuer with typical positions of 1%, GSEs excluded
- 25% maximum per industry
- Strategy can allocate up to 25% to emerging markets debt and up to 10% to non-US dollar denominated securities
The Composite includes all discretionary accounts with market values greater than $5 million managed by Loomis Sayles with investment guidelines that allow greater than 50% in high yield but have a threshold on average quality of BB-or higher or restrict the use of securities below BB-to 30%. Where allowed by guidelines, accounts in the Composite may allow limited exposure to one or two of the following non-index sectors: foreign issuers, foreign currency, or emerging market debt. Proprietary quantitative models are employed in portfolio construction and risk assessment. Loomis Sayles’s security level research is a primary alpha source 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.