The Pure Agency MBS strategy seeks to maximize current income consistent with capital preservation
Primary Benchmark:
Bloomberg US Mortgage Backed Securities Index
Strategy Highlights
- Benchmark-aware strategy targeting the full investment universe of agency mortgage-backed securities (Agency MBS); all securities must have an explicit or effective guarantee from the US Government*
- Invests in fixed-rate and adjustable rate agency mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC)
- Investment style combines a top-down approach to inter-sector allocation decisions and an active bottom-up security selection framework
- Subject to client approval, portfolios may utilize mortgage-derivative collateralized mortgage obligations (CMOs), such as IOs and POs and interest rate hedging strategies
*US Government guarantees relate to the timely payment of principal and interest of the strategy's portfolio securities only and not the shares of the underlying fund which will fluctuate in value.
Effective 6/30/2020, the Composite formerly known as Agency MBS changed its name. The Composite includes all discretionary accounts with market values greater than $10 million managed by Loomis Sayles with guidelines that allow for investing in fixed-rate agency mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC), and that allow for interest rate derivatives as well as CMO mortgage derivatives such as IOs and POs in the Agency MBS universe. Portfolios seek a high level of current income consistent with capital preservation. The Composite inception date is June 1, 2013. The Composite was created in 2013.
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