Loomis Sayles to launch high-yield mutual fund

SEP 17, 2010
By  Bloomberg
Loomis Sayles & Co. said it will start a mutual fund in December that will invest in junk bonds and related derivatives. The Loomis Sayles Absolute Strategies Fund may invest entirely in high-yield bonds, though will generally aim to limit its exposure to no more than half of its assets, according to a prospectus filed yesterday with the Securities and Exchange Commission. The fund also may buy investments that aren't denominated in U.S. currencies. The asset manager's first mutual fund that has the ability to buy derivatives, the Loomis Sayles Multi-Asset Real Return Fund, began operating yesterday, said Erin Heard, a spokeswoman for Boston-based Loomis Sayles. “There's a need for funds that are more flexible, to go where the opportunities are,” she said. She declined to comment on the Absolute Strategies Fund. Matthew Eagan, Kevin Kearns and Todd Vandam will manage the new fund's assets, according to the prospectus. Eagan currently oversees $52.5 billion of investments and Kearns $4.66 billion, the prospectus said. High-yield, high-risk -- or junk -- debt is rated below Baa3 by Moody's Investors Service and BBB- by Standard & Poor's. Boston-based Loomis Sayles, a unit of Natixis Global Asset Management LP, managed $140.9 billion of assets as of June 30, according to its website.

Latest News

Trump greenlights alternative investments in 401(k) accounts – Industry reacts
Trump greenlights alternative investments in 401(k) accounts – Industry reacts

The president signed an executive order late Thursday which he says will broaden choice

After Muni bond fund blow up, broker-dealers Osaic and Stifel Nicolaus face questions
After Muni bond fund blow up, broker-dealers Osaic and Stifel Nicolaus face questions

Plaintiff's lawyers are eying both broker-dealers for potential client complaints.

Retail investors split on AI's place in financial advice
Retail investors split on AI's place in financial advice

Survey research reveals just three-tenths trust AI-generated recommendations, bolstering the case for lasting human relationships with advisors.

Advyzon and SS&C roll out wealth tech platform updates for advisors
Advyzon and SS&C roll out wealth tech platform updates for advisors

Advyzon has launched a new hub for professionally managed model portfolios, while SS&C unveiled a unified suite of wealth solutions under the Black Diamond banner.

Barred investment advisor, former CNBC pundit sentenced to five years for fraud
Barred investment advisor, former CNBC pundit sentenced to five years for fraud

Former LA-based advisor James Arthur McDonald Jr. is facing federal prison time for defrauding investors out millions of dollars in a Ponzi-like scheme after a failed anti-America bet.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.