The World Credit Asset strategy seeks to maximize return potential by investing in what we consider to be attractive issuers in the global investment grade credit, high yield credit, bank loan, securitized, and emerging markets sectors based on the current phase of the global credit cycle
Primary Benchmark:
50% BBG BARC Global Aggregate Corporate - USD Hedged/25% BBG BARC Global High Yield - USD Hedged/15% JP Morgan Corporate Emerging Markets Bond Index Broad Diversified/10% Morningstar LSTA Leveraged Loan Index
Strategy Highlights
- Multi asset credit (MAC) strategy that seeks to capture credit risk premiums in markets that we believe can offer strong risk-adjusted return potential over a full market cycle
- Asset allocation determined by evaluating the current stage of the global credit cycle and the attractiveness of the various sectors
- Top-down analysis driven by real-time market data, economic releases, and market technicals, coupled with our quantitative models
- Bottom-up analysis is driven by the portfolio management team’s daily interaction with sector teams and the insights the teams generate
Portfolio Construction
- Duration: 0-7 years
- Maximum below investment grade: 100%
- Currency: 10% maximum non-US dollar after hedges
- Derivatives: Yes
- Leverage: None**
**Non-US Dollar-denominated investments may not exceed 10% of the Composite, excluding the Senior Loan Fund, LLC, which allows for up to 5% of its total assets in senior loans denominated in currencies other than USD.
The World Credit Asset Composite includes all discretionary accounts with market values greater than $75 million managed by Loomis Sayles that seek to maximize risk-adjusted returns by allocating across the credit spectrum based on macro analysis of economic regimes and the global credit cycle. Accessing a broad investment opportunity set allows the product team to seek to create a diversified portfolio with what the team believes are the most attractive issuers in the global investment grade credit, high yield credit, bank loan, securitized and emerging markets. Interest rate duration is managed from zero to seven years. The Composite inception date is October 1, 2013. The Composite was created in 2014.
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