Apostle Loomis Sayles Senior Loan Fund201041164445 by lindayy


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									                                                                       Apostle Loomis Sayles Senior Loan Fund
                                                                                                         Monthly Fact Sheet, 31 October 2009
Investment Style                                                          Performance (% pa)
                                                                          Performance                                                                  Inception>
                DEBT – SENIOR BANK LOANS                                                              1 mth        3 mths      CYTD       1 yr
                                                                          Returns                                                                     (20/11/07)
                                                                          Fund (gross)                  0.44           3.26    36.30     22.82                   0.20
Investment Objective
                                                                          Benchmark*                    0.29           0.86     3.37      4.64                   6.18
The Fund’s investment objective is to seek to provide a high
level of current income and such preservation of capital as is            Active Return                 0.15           2.40    32.93     18.18                  -5.98
consistent with investment in a portfolio of senior bank                                                                                      * USD LIBOR 3 Month in AUD.

Primary Investments                                                       Portfolio Analysis
The Fund seeks to accomplish its investment objective
through investment primarily in a diversified managed                     Portfolio Characteristics
portfolio of predominantly U.S. Senior Loans.
Portfolio construction is driven by bottom-up security
selection and top-down macroeconomic analysis. Individual                 Margin over Libor (%) (USD)                                                           2.62
investment ideas are evaluated by the Fund’s portfolio                    Coupon Rate (%) (USD)                                                                 3.40
management team and credit research analysts based on                     Current Yield (%) (USD)                                                               3.59
investment return potential and contribution to overall
                                                                          Weighted Average Purchase Price (c/$)                                                92.95
portfolio risk.
                                                                          Weighted Average Market Price (c/$)                                                  93.83
Fund Investment Strategy and Allocation Limits                              = Average Coupon Rate/Weighted Avg Market Price

    90-100% of total assets in Senior Loans.
    0-10% of total assets in cash or cash equivalents.                    Allocation Analysis
    0-10% of total assets in other authorised investments.
                                                                          Credit Quality (%)
                                                                          Average Quality                                                                        BB-
Unit Price                                                0.905593        BBB                                                                                   4.06
                                                                          BB                                                                                   55.05
Fund Size (AUD)                                        412,452,272        B                                                                                    33.28
                                                                          CCC & Lower                                                                           2.81
Reporting Benchmark        3 Month USD LIBOR hedged into AUD
                                                                          Not Rated                                                                             2.62
Fund Inception Date                               20 November 2007        Cash & Equivalents                                                                    2.18
                                                                          Total                                                                                 100
Legal Structure          Australian Managed Investment Scheme

Valuation Frequency                                            Daily      Sector Allocation (%)

Liquidity Frequency                                      Fortnightly                                                                                           Fund
                                                                          Industrial                                                                           87.71
Responsible Entity           Apostle Asset Management Limited             Financial                                                                             5.36
                                                                          Utility                                                                               4.75
Investment Manager              Loomis, Sayles & Company, L.P.
                                                                          Cash & Equiv                                                                          2.18
Total Management Fee                                 By Negotiation       Total                                                                                 100

Portfolio Manager                           Kevin Perry, John Bell
                                                                          Country Allocation (%)
Administrator                        State Street Australia Limited
Custodian                            State Street Australia Limited       United States                                                                        99.63
                                                                          Canada                                                                                0.37
                                                                          Total                                                                                 100

Apostle Asset Management Limited
Level 11, 23-25 O’Connell Street

T +61 2 8224 2900
F +61 2 8224 2910

Monthly performance (gross % pa)
Year              Jan         Feb          Mar          Apr       May         Jun           Jul           Aug           Sep       Oct      Nov         Dec         Year
2009             8.30        2.09         1.23         7.21       3.63       3.28         2.77           1.34          1.45      0.44        --          --           --
2008            -2.27       -2.20         1.01         3.25       1.38       0.73         0.08           0.39         -3.74    -17.03    -6.57       -3.55       -26.39
2007                --          --           --           --         --         --           --             --            --        --       --       0.36            --
                                                                                      Apostle Loomis Sayles Senior Loan Fund
                                                                                                                                 Monthly Fact Sheet, 31 October 2009

    Holdings by Industry (%)                                                               Market Performance
                                                                                           While greater risk was rewarded with greater return in loans again in
    Aerospace/Defence                                                     0.87             October, we noted two developments that suggested the risk rally may be
    Automotive                                                            0.74             running out of steam. First, the new issue loan market started to open up
    Banking                                                               1.47             as near-par secondary prices created the right arithmetic for comparable
    Building Materials                                                    1.60             value. Second and not unrelated, BB-rated loans actually went down
    Cash & Equivalents                                                    2.18
                                                                                           slightly in price, most likely reflecting both “fast money” exiting the
    Chemicals                                                             4.00
                                                                                           recovery trade and relative value decisions by accounts wanting to buy new
    Consumer Cyclical Services                                            6.17
                                                                                           issues with BB ratings and higher coupons. We face a choice each day in
    Consumer Products                                                     2.70
    Diversified Manufacturing                                             0.68             this environment: chase yield or hold quality. If we were convinced that
    Electric                                                              4.75             the economic prospects are strong we might be inclined to lower quality in
    Energy                                                                0.60             our search for extra basis points of return. Instead, we think the market
    Entertainment                                                         3.07             will grow weary of the interaction of uninspiring revenue growth and highly
    Environmental                                                         1.49             levered balance sheets. We prefer to accept modest return prospects with
    Food and Beverage                                                     3.72             far less balance sheet risk given our outlook.
    Gaming                                                                0.65
    Health Insurance                                                      0.19             Outlook
    Healthcare                                                           10.62
    Industrials – Other                                                   8.62             It has become increasingly apparent that there is a disparity between the
    Insurance                                                             0.56             way money is flowing in the real economy and the way it is flowing in the
    Media – Cable                                                         4.01             investment markets. In the real economy, unemployment is rising
    Media – NonCable                                                      5.29             (reducing consumer expenditures) and banks are not lending at a torrid
    Metals & Mining                                                       0.28             pace to real businesses. Home prices will not likely find a floor until mid-
    Oil Field Services                                                    2.97             2010 and commercial real estate seems to be in decline. Meanwhile,
    P&C                                                                   2.62             investment cash returns are essentially zero and has been flowing in high
    Packaging                                                             2.65             volume towards anything easily buyable: stocks, bonds, and commodities.
    Paper                                                                 1.05             This disparity is unsustainable, in our opinion. We worry that it will take so
    Pharmaceuticals                                                       1.93             much time for the real economy to show real strength that a significant
    Pipelines                                                             2.32
                                                                                           number of overlevered credits will default. Our skepticism continues to
    Railroads                                                             0.18
                                                                                           drive our portfolio construction.
    REITS                                                                 0.71
    Restaurants                                                           0.63
    Retailers                                                             5.04
    Supermarkets                                                          0.75
    Technology                                                            5.38
    Telecommunications                                                    0.79
    Textile                                                               1.39
    Wireless                                                              3.34
    Wirelines                                                             4.02
    TOTAL                                                                 100

    Top Five Portfolio Holdings (%)
                                                            Amt           S&P
                                                        Portfolio        Rating
    HCA, Inc. Term Loan B                  +225            1.25          BB
    Community Health                       +225            1.19          BB
    Systems, Inc. Term
    CSC Holdings, Inc.                     +175            1.18          BBB-
    Incremental B Term
    DaVita, Inc. Tranche B-                +150            0.97          BB+
    1 Term Loan
    Energy Transfer Equity,                +175            0.97          BB-
    L.P. Term Loan B

Apostle Asset Management Limited ABN 60 088 786 289 AFSL No. 246830 (“Apostle”) APIR Code IAM0006AU
This document is issued by Apostle and relates to the Apostle Loomis Sayles Senior Loan Fund (“Fund”) of which Apostle is the responsible entity. The Investment Manager for the Fund is Loomis, Sayles & Company,
L.P.. Loomis, Sayles & Company, L.P. is licensed to provide investment management services in the US and conducts any portfolio management activities in and from US. Loomis, Sayles & Company, L.P. is exempt
from the requirement to hold an AFSL under the Corporations Act 2001 (Cth) in respect of financial services. Loomis, Sayles & Company, L.P. is regulated by the SEC under US laws which differ from Australian laws.

This material is for information purposes only. It is not an offer or a recommendation to purchase or sell any security and is not intended to substitute for the Fund’s Information Memorandum which will outline the
risks involved and other relevant information. Please note that past investment performance is not a reliable indicator of future investment performance. This information may not have been prepared taking into
account your objectives, financial situation or needs.

This document may contain information provided directly by third parties. To the maximum extent permitted by law, Apostle excludes liability for material provided by third parties. This document is strictly
confidential and is intended solely for the use of the person to whom it has been delivered. It may not be reproduced, distributed or published, in whole or in part, without the prior approval of Apostle.

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