Senior Floating Rate and Fixed Income Fund
Y shares are only available to certain institutional investors. Please click here for other share classes.
The Senior Floating Rate and Fixed Income Fund seeks to provide a high level of current income
Primary Benchmark:
Morningstar LSTA Leveraged Loan Index
Portfolio Management
John Bell
Michael Klawitter, CFA
Heather Young, CFA
Total Fund Assets (as of 5/31/2023):
$933.2 million
Strategy Highlights
- Portfolio selection is based on value driven, opportunistic approach to investing in senior secured floating rate loans and other fixed income securities
- Allocations to out of benchmark securities for offensive and defensive purposes
- Macro-guided portfolio construction
- Long term investment horizon
- Draws on Loomis Sayles’s deep fundamental credit research capabilities and experience
Investment Strategy
- Will invest at least 65% in floating rate loans
- May invest up to 35% of assets in other fixed income securities
- May invest up to 20% of assets in non-US issuers, including 10% in emerging market debt securities
- May use leverage to enhance the potential to add value during recovery and expansion
About Risk
- Floating-rate loans are often lower-quality debt securities and may involve greater risk of price changes and greater risk of default on interest and principal payments. The market for floating-rate loans is largely unregulated and these assets usually do not trade on an organized exchange. As a result, floating-rate loans can be relatively illiquid and hard to value.
- LIBOR Floor Risk As short-term market rates rise, floating rate loans will not pay higher interest until prevailing rates exceed the floor rate stated in the loan documents. If the fund uses floating rate leverage, the fund’s leverage costs will likely increase before its loan portfolio income increases, and the additional income provided by leverage may diminish until market rates exceed the LIBOR floor level.
- Fixed income securities may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity.
- Below investment grade fixed income securities may be subject to greater risks (including the risk of default) than other fixed income securities.
- Leverage can increase market exposure and magnify investment risk.
- Foreign and emerging market securities may be subject to greater political, economic, environmental, credit, currency and information risks. Foreign securities may be subject to higher volatility than US securities due to varying degrees of regulation and limited liquidity. These risks are magnified in emerging markets.
- Non-diversified funds invest a greater portion of assets in fewer securities and therefore may be more vulnerable to adverse changes in the market.
Class N shares of the Fund are subject to a $1,000,000 initial investment minimum. There is no initial investment
minimum for Certain Retirement Plans and funds of funds that are distributed by Natixis Distribution, LLC (the “Distributor”).
1 As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense limitation of the fund has been exceeded. This arrangement is set to expire on 3/31/24. When an expense limitation has not been exceeded, the fund may have similar expense ratios and/or yields.
2The 30-day SEC yield is a standardized calculation, calculated by dividing the net investment income per share for the 30-day period by the maximum offering price per share at the end of the period and annualizing the result. Treasury Inflation-Protected Securities (TIPS) are designed to provide protection against inflation through monthly adjustments to the principal value of TIPS, which increases with inflation and decreases with deflation as measured by the Consumer Price Index. Monthly principal adjustments for inflation (increases and decreases) are excluded from the 30-day SEC yield calculation. Such adjustments can vary substantially from one month to the next, and if they were included, may materially impact the 30-day SEC yield either higher or lower. A subsidized 30-day SEC yield reflects the effect of fee waivers and expense reimbursements. The SEC yield is not based upon distributions of the fund and actual income distributions may be higher or lower than the 30-day SEC yield amounts. During periods of unusual market conditions and/or activity in the sales or redemptions of fund shares, the fund’s 30-day SEC yield amounts may be materially higher or lower than its actual income distributions. Unsubsidized 30-day SEC yield is calculated using the gross expenses of the fund. Gross expenses do not include any fee waivers or reimbursement.
The Morningstar LSTA Leveraged Loan Index reflects the market-weighted performance of institutional leveraged loans based upon real-time market weightings, spreads and interest payments. Indexes are unmanaged and do not incur fees. It is not possible to invest directly in an index.
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Fund Facts as of 5/31/2023
| Ticker |
| Class Inception |
| CUSIP |
| Minimum Initial Investment |
| Gross Expense Ratio1 |
| Net Expense Ratio1 |
| Ticker |
| Class Inception |
| CUSIP |
| Minimum Initial Investment |
| Gross Expense Ratio1 |
| Net Expense Ratio1 |
| Net Asset Value |
Our Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Investment return and value will vary and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, please see the following tab labeled “Performance”.
Primary Benchmark:
Morningstar LSTA Leveraged Loan Index
Year-to-Date Performance as of 6/5/2023 | | Class N | Class Y |
|---|
| | 3.96% | 4.06% |
Month-End Performance as of 5/31/2023 Cumulative
Total Return | Class N | Class Y |
|---|
| 3 month | 0.24% | 0.36% | | Year-to-date | 3.57% | 3.67% |
Average Annualized
Total Return | Class N | Class Y |
|---|
| Inception Date | 3/31/2017 | 9/30/2011 | | 1 Year | 2.45% | 2.53% | | 3 Years | 4.89% | 4.93% | | 5 Years | 1.77% | 1.75% | | 10 Years | N/A | 3.09% | | Since Inception | 2.34% | 4.32% |
Quarter-End Performance as of 3/31/2023 Cumulative
Total Return | Class N | Class Y |
|---|
| 3 month | 2.86% | 2.85% | | Year-to-date | 2.86% | 2.85% |
Average Annualized
Total Return | Class N | Class Y |
|---|
| Inception Date | 3/31/2017 | 9/30/2011 | | 1 Year | -1.34% | -1.49% | | 3 Years | 7.61% | 7.60% | | 5 Years | 1.73% | 1.70% | | 10 Years | N/A | 3.12% | | Since Inception | 2.29% | 4.31% |
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Lipper Ranking as of 5/31/2023 | | Class N | Class Y |
|---|
| 1 Year | N/A | N/A | | 3 Years | N/A | N/A | | 5 Years | N/A | N/A | | 10 Years | N/A | N/A | | Lipper Category: NA |
Morningstar Ranking as of 5/31/2023 | | Class N | Class Y |
|---|
| 1 Year | N/A | N/A | | 3 Years | N/A | N/A | | 5 Years | N/A | N/A | | 10 Years | N/A | N/A | | Morningstar Category: NA |
Lipper and Morningstar rankings are based on total returns calculated by each ranking entity. Rankings do not take into account sales charges, if applicable, but include reinvestment of dividends and capital gains, if any.
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Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. Returns include changes in share price and reinvestment of dividends and capital gains, if any.
Lipper Analytical Services Inc., a Thomson Reuters Company, is a nationally recognized organization that provides performance information for mutual funds. Copyright 2023 © Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
© 2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Monthly as of 4/30/2023
| Characteristics | |
|---|
| Number of Issues | 289 | | Average Maturity | 4.36 | | Weighted Average Duration | 0.32 | | Annual Turnover (11/30/2022) | 65.33% |
| Currency Distribution | |
|---|
| US Dollar | 100.0% | | Duration Distribution | |
|---|
| Less than 1 Yr. | 84.7% | | 1 to 3 Yrs. | 4.5% | | 3 to 5 Yrs. | 2.3% | | 7 to 10 Yrs. | 0.5% | | Cash & Equivalents | 7.9% | |
| Sector Distribution (Fixed) * | |
|---|
| 0.0% | | Country Distribution | |
|---|
| United States | 91.9% | | Luxembourg | 1.9% | | Canada | 1.5% | | Australia | 0.9% | | France | 0.8% | | Netherlands | 0.6% | | Spain | 0.6% | | India | 0.6% | | New Zealand | 0.4% | | Other | 0.7% | | Maturity Distribution | |
|---|
| Less than 1 Yr. | 1.6% | | 1 to 3 Yrs. | 8.4% | | 3 to 5 Yrs. | 41.0% | | 5 to 7 Yrs. | 39.6% | | 7 to 10 Yrs. | 1.5% | | Cash & Equivalents | 7.9% | | Credit Quality | |
|---|
| US Treasurys | 0.5% | | AAA | 0.0% | | AA | 0.0% | | A | 0.0% | | BAA | 1.0% | | BA | 24.9% | | B | 52.0% | | CAA & Lower | 11.4% | | Not Rated | 2.3% | | Cash & Equivalents | 7.9% | |
Portfolio composition statistics are from the adviser’s internal system and may not match the fund’s regulatory documents.
Credit Quality reflects the highest credit rating assigned to individual holdings of the fund among Moody’s, S&P or Fitch; ratings are subject to change. The fund’s shares are not rated by any rating agency and no credit rating for fund shares is implied. Bond credit ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest).
Cash & Equivalents reflects unsettled trades, fees and derivatives. Negative Cash & Equivalents reflect the market value of future trade commitments for the fund. ABS/RMBS: Asset-Backed Securities/Residential Mortgage-Backed Securities. Agency MBS: Agency Mortgage-Backed Securities. CMBS: Commercial Mortgage-Backed Securities.
Due to rounding, Sector, Currency, Country, Duration, Maturity and Quality distribution totals may not equal 100%.
Quarterly as of 3/31/2023
| Characteristics | Fund | Index |
|---|
| Number of Issues | 279 | 1495 | | Average Maturity | 4.4 | 4.33 | | Weighted Average Duration | .33 | .1 | | Annual Turnover (11/30/2022) | 65.33% | |
| Currency Distribution | Fund | Index |
|---|
| US Dollar | 100.0% | 100.0% | | Duration Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 84.1% | 96.2% | | 1 to 3 Yrs. | 4.1% | 3.8% | | 3 to 5 Yrs. | 2.8% | 0.0% | | 7 to 10 Yrs. | 0.5% | 0.0% | | Cash & Equivalents | 8.4% | 0.0% |
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| Sector Distribution (Fixed) * | Fund | Index |
|---|
| 0.0% | 0.0% | | 0.0% | 0.0% | | Country Distribution | Fund | Index |
|---|
| United States | 92.3% | 88.7% | | Luxembourg | 1.9% | 1.2% | | Canada | 1.5% | 2.8% | | Australia | 0.8% | 0.2% | | Spain | 0.6% | 0.4% | | Netherlands | 0.6% | 0.7% | | India | 0.6% | 0.1% | | France | 0.6% | 0.8% | | United Kingdom | 0.5% | 2.2% | | Other | 0.8% | 3.0% | | Maturity Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 1.6% | 0.7% | | 1 to 3 Yrs. | 7.7% | 16.7% | | 3 to 5 Yrs. | 35.3% | 37.5% | | 5 to 7 Yrs. | 45.9% | 44.9% | | 7 to 10 Yrs. | 1.1% | 0.1% | | Cash & Equivalents | 8.4% | 0.0% | | Credit Quality | Fund | Index |
|---|
| US Treasurys | 0.5% | 0.0% | | AAA | 0.0% | 0.0% | | AA | 0.0% | 0.0% | | A | 0.0% | 0.0% | | BAA | 1.0% | 6.4% | | BA | 24.6% | 26.3% | | B | 51.5% | 60.4% | | CAA & Lower | 11.6% | 5.8% | | Not Rated | 2.3% | 1.1% | | Cash & Equivalents | 8.4% | 0.0% |
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Portfolio composition statistics are from the adviser’s internal system and may not match the fund’s regulatory documents.
Credit Quality reflects the highest credit rating assigned to individual holdings of the fund among Moody’s, S&P or Fitch; ratings are subject to change. The fund’s shares are not rated by any rating agency and no credit rating for fund shares is implied. Bond credit ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest).
Cash & Equivalents reflects unsettled trades, fees and derivatives. Negative Cash & Equivalents reflect the market value of future trade commitments for the fund. ABS/RMBS: Asset-Backed Securities/Residential Mortgage-Backed Securities. Agency MBS: Agency Mortgage-Backed Securities. CMBS: Commercial Mortgage-Backed Securities.
Due to rounding, Sector, Currency, Country, Duration, Maturity and Quality distribution totals may not equal 100%.
Top Ten Holdings
as of 5/31/2023 | % Assets |
|---|
| U S TREASURY | 6.8% | | US DOLLAR | 1.6% | | AMERICAN AIRLINES GROUP INC | 1.2% | | DIRECTV | 1.1% | | INSTINET GROUP INC | 1.0% | | ELLIOTT MANAGEMENT CORP | 1.0% | | ULTIMATE SOFTWARE GROUP INC/THE | 1.0% | | TRICO | 0.9% | | EVERGREEN / SAVERS TLC | 0.9% | | ASURION CORP | 0.9% | | Total | 16.5% |
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