Loomis Sayles has launched the Loomis Sayles Multi-Asset Real Return Fund, which will invest in a variety of asset classes around the world, including derivatives, commodities and REITs, to combat all types of inflationary environments, including: inflation, debtflation, stagflation and deflation.
Inflation is when prices are growing and purchasing power is declining, according to Investopedia. Stagflation is when the economy is growing only slowing and unemployment is high but consumer prices are rising; and deflation is when prices decline due to a reduction in the supply of money or credit by individuals, corporations or government, according to Investopedia. Debtflation is when the government induces inflation to combat high deficits.
The fund will be managed by three experts in fixed income, equity research, risk and macroeconomic capabilities: Kevin Kearns, fixed income portfolio manager and senior derivatives strategist; David Rolly, global fixed income portfolio manager, global investment strategist and head of the yield curve sector team; and Laura Sarlo, fixed income portfolio manager and senior sovereign analyst.
The fund has been developed for investors looking for solutions beyond single asset class strategies, like TIPS, with the aim of beating the U.S. consumer price index over a full market cycle.
“Many investors, particularly those with fixed incomes or defined retirement portfolios, are concerned with preserving the purchasing power of their assets,” noted Loomis Sayles Chief Investment Officer, Fixed Income Jae Park. “Doing so under a variety of potential future economic scenarios can be challenging, particularly as inflation may not be readily apparent in CPI figures. We believe that this demands deep macroeconomic perspectives and the flexibility and capability to apply this analysis across a wide range of markets, asset classes and security types.”