Loomis Sayles Launches Fund Aimed at
Preserving Long-Term Purchasing Power
Diversified real return strategy designed to address various inflation scenarios
October 04, 2010 09:03 AM Eastern Daylight Time
BOSTON--(EON: Enhanced Online News)--Loomis, Sayles & Company announced today that it has launched the
Loomis Sayles Multi-Asset Real Return Fund (MARYX), a mutual fund featuring multi-asset class diversification
designed to counter a variety of potential global inflationary environments, such as classic inflation, debtflation,
stagflation or deflation. The Fund was developed for investors looking for solutions beyond single asset class
strategies, like TIPS, that may be limited in their ability to combat all forms of inflation. The Fund will be co-managed
by Kevin Kearns, fixed income portfolio manager and senior derivatives strategist; David Rolley, 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 flexible and tactical nature of this strategy is aimed at preserving and growing the purchasing power of investor
portfolios under a variety of economic conditions, while also seeking to limit volatility. The Fund may be well suited
for investors concerned with building long-term purchasing power as well as those uneasy about the overall
diversification level of their investment portfolios.
Using a flexible mandate that allows tactical investments in a wide range of asset classes and security types, the
Fund's performance goal is to beat the US consumer price index (CPI) over a full market cycle. In an effort to meet
this goal, the investment team leverages Loomis Sayles’ deep fundamental fixed income and equity research
capabilities, macroeconomic resources, and quantitative analysis and risk management capabilities. Using this
combination of top-down macroeconomic analysis and fundamental research, the portfolio management team seeks
to identify the nature of global inflationary or deflationary trends and then applies sector and security specific
allocations in an effort to optimize the Fund's risk/reward potential. Based on the team's inflation thesis, the Fund
may invest in a broad range of securities globally including fixed income instruments (TIPS, government, sovereign,
and corporate), equities, ETFs, REITs and commodity instruments. Investment decisions can be implemented in a
flexible manner, including through the use of derivatives and long/short strategies.
The Fund seeks to realize its performance objectives while also minimizing volatility and uses an investment process
that incorporates a disciplined risk management approach to address all the asset classes within the portfolio.
"Many investors, particularly those with fixed incomes or defined retirement portfolios, are concerned with
preserving the purchasing power of their assets. 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. Limiting one's investment approach can be problematic given considerable
future economic uncertainty and likely volatility," said Jae Park, Loomis Sayles' chief investment officer – fixed
"We believe that unlike a single asset class strategy, like TIPS, the adaptable nature of this strategy not only has the
power to capitalize on inflationary trends in their multiple forms but also complements other equity and fixed income
investments one may hold in a portfolio. The strategy has the potential to generate attractive real returns while also
offering overall portfolio diversification benefits," added Kevin Kearns, co-portfolio manager.
About Loomis Sayles
Since 1926, Loomis, Sayles & Company, L.P. has served the investment needs of institutional and mutual fund
clients. As performance-driven investors seeking exceptional opportunities, Loomis Sayles employs actively
managed disciplines that combine fundamental research, systematic risk assessment and experienced portfolio
management. This rich tradition has earned Loomis Sayles the trust and respect of clients worldwide, for whom it
manages more than $141 billion in equity and fixed income assets as of June 30, 2010.
Derivatives, primarily futures and forward contracts, generally have implied leverage (a small amount of money to
make an investment of greater value). Because of this, the fund’s extensive use of derivatives may magnify any gains
or losses on those investments, as well as risk to the fund. Over the Counter (OTC) derivative contracts involve
counterparty risk, or the risk of default to a derivative contract, and liquidity risk; market volatility may prevent the
fund from closing out contracts at the desired time and price.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Please visit
loomissayles.com or call 800-225-5478 for a prospectus or a summary prospectus containing this and
other information. Read it carefully.
Natixis Distributors, L.P. (fund distributor) and Loomis, Sayles & Company are affiliated. Natixis Distributors, L.P.
399 Boylston St. Boston, MA 02116
Loomis, Sayles & Company
Erin Heard, 617-960-2029
Meg Clough, 617-346-9716