The Multisector Credit strategy seeks to maximize total return and higher levels of portfolio income through research driven security selection while managing downside risk through careful portfolio construction
Primary Benchmark:
Bloomberg US Credit Bond Index
Strategy Highlights
- Consistent approach with flagship Multisector Full Discretion strategy, but with structural emphasis on corporate credit exposure
- Value-driven, opportunistic approach begins with bottom-up research and incorporates top-down macro inputs
- Focus on long-term investment horizon
- Broad opportunity set within credit sectors, making use of out-of-benchmark securities for value and diversification
- Security selection is a primary driver of performance; other sources of excess return consist of sector allocation, country management and yield curve/duration positioning
- Seasoned management team with each portfolio manager having over of 25 years of industry experience, and over 22 years of experience at Loomis Sayles
The Composite includes all discretionary accounts with market values greater than $20 million managed by Loomis Sayles with the objective of maximizing total return and higher levels of portfolio income through individual security selection with a 50% limit in high yield securities and use of out-of-benchmark sectors including but not limited to emerging market debt, convertibles, government debt, bank loans, and securitized debt (but excluding non-dollar and equity securities). Yield curve and duration management provide additional tactical tools for the portfolio management team with strategic allocation to higher yielding credit sensitive sectors employing Loomis Sayles security level research and significant allocation to non-index sectors as primary sources of alpha. Tracking error is not explicitly targeted for this product, however, historically these portfolios have exhibited annualized tracking error of approximately 200-600 basis points. The Composite inception date is January 1, 2010. The Composite was created in 2020.
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