Loomis Sayles on Wednesday launched the Loomis Sayles Absolute Strategies Fund, a flexible, risk-managed absolute return fund.
The fund is designed to be an “all weather” product for investors seeking consistent returns through all market environments.
As the fund is not tied to a benchmark, it can invest across a wide array of global securities and sectors—including fixed income, currencies, securitized assets and derivatives—as well as short the market as a hedge.
Three Loomis Sayles managers are running the fund, representing 55 years of combined experience. The managers are: Matthew Eagan, who is also a co-manager of the firm’s multi-sector bond funds; Kevin Kearns, a senior derivatives strategist who also runs the absolute return portfolio; and Senior Credit Strategist Todd Vandam.
“As we listen to market sentiment, it has become clear that investors are looking for a nimble process that can tactically respond to what we believe are the three biggest drivers in the market today: credit, interest rate curve and currencies,” Eagan said. “We have designed this fund to take full advantage of the best ideas generated by our vast research and analytical resources.”
The investment team goes through three processes in making their portfolio selections, starting by looking at key global macro themes: global inflation scenarios, yield curves, currency outlook and credit cycle. Next, the team looks for best asset class ideas by evaluating each sector from the bottom up. Finally, the team selects individual securities with an eye toward a multi-tiered approach to risk.
“Faced with a host of possible global economic scenarios over the next several years, we are always looking for ways to help investors acquire the flexibility needed to help maximize return while stemming the downside risk associated with volatile markets,” said Loomis Sales Fixed Income Chief Investment Officer Jae Park. “We believe this fund can provide a solution to that challenge.”