Loomis Sayles launches absolute return fund

10 Mar 2011
Loomis, Sayles & Company, a subsidiary of Natixis Global Asset Management, has launched the Loomis Sayles Absolute Strategies Bond Fund to address investor demand for absolute return-oriented fixed income strategies in the UK and Europe. Natixis Global Associates is the distribution arm of Natixis Global Asset Management.

The fund is intended to be an "all weather" product for investors seeking consistent returns from their bond portfolio through innumerable market environments and periods of high volatility. The fund, unconstrained by a benchmark, allows for tactical investments in a variety of fixed income securities aimed at preserving income while also offering a disciplined risk management process that seeks to mitigate downside risk.

Capitalising on Loomis Sayles' deep fundamental research capabilities, global macroeconomic analysis and quantitative risk management capability, the investment team may invest in a wide range of asset classes and security types to manage market risks – these securities include fixed income (government, sovereign and corporate), equities, currencies and securitised assets – as well as use long/short positions and derivatives.

The fund, which was registered in the UK on 2 March 2011, is jointly managed by Matthew Eagan, fixed income portfolio manager with 19 years investment experience; Kevin Kearns, fixed income portfolio manager and senior derivatives strategist with 23 years investment experience; and Todd Vandam, fixed income portfolio manager and credit strategist with 15 years investment experience.

Commenting on the launch, Jae Park, chief investment officer for Loomis Sayles Fixed Income group, said: "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 maximise return while stemming the downside risk associated with volatile markets. We believe this Fund can provide a solution to that challenge."