We have a legacy of independent thinking and leaning into the market when others may be pulling away. We take a deep-value, equity-like approach to credit selection across global fixed income markets. Our disciplined process helps gives us confidence in seeking to identify macro trends, formulate a clear view on market sectors, and invest throughout the credit cycle.
For more than 40 years, we have been applying our distinctive style of bond picking to deliver portfolios designed to provide excess yield potential and have low correlations to traditional benchmark-focused fixed income strategies.
During our decades as bond investors, we’ve managed through all sorts of credit conditions.
And we have consistently observed that the market is inefficient at pricing specific risk.
We use repeatable credit selection strategies to capitalize on this persistent inefficiency and drive excess return potential.
Full Discretion Team
Range of Institutional Strategies and Mutual Funds
The Loomis Sayles Full Discretion team were among those who pioneered multisector investing with a long-term, flexible, benchmark-agnostic approach. The team manages a range of institutional strategies and mutual funds to help meet different investor needs. Each seeks to identify and capitalize on mispricings throughout market cycles using fundamental research and active management.
The credit cycle has advanced to the later stages of the ‘Expansion’ phase characterized by higher expected volatility and a greater risk of a downturn scenario. Risk premiums currently appear attractive relative to history, but catalysts for spread tightening appear limited given concerns over persistent inflation and the current geopolitical landscape.
Many bond investors are in an uncomfortable
position today. Yields are low, spreads are tight, and durations have extended out. There’s not a lot of cushion for making mistakes. In an environment like this, we do not want to be boxed in by an index.
On December 9, 2020, Full Discretion portfolio managers Elaine Stokes, Matt Eagan and Brian Kennedy joined Jim Sia, Head of Relationship Management, for a live call with institutional clients and consultants to discuss Dan Fuss’ step back from portfolio management, the deep investment resources of the Full Discretion team, and the team’s outlook going into 2021. Read on for the highlights.
Credit markets are frequently moving. During our decades as bond investors, we’ve seen them frozen during times of crisis, frothy when investors have seemed desperate for yield, and everything in between.
Explore the deep-dive articles written by Matt Eagan on LinkedIn.
Low Yield Landscape Amid Interest Rate Unknowns Call for Active Bottom-Up Security Selection Through the Credit Cycle.
Elaine Stokes is an executive vice president, portfolio manager and co-head of the full discretion team at Loomis, Sayles & Company. She has 33 years of investment industry experience and joined Loomis Sayles in 1988. Elaine is also a member of the firm’s Board of Directors. Elaine is a co-portfolio manager for the firm’s flagship Loomis Sayles Bond Fund, as well as a variety of mutual fund and institutional strategies, including the Credit Income, Fixed Income, High Income, High Income Opportunities, Institutional High Income, Investment Grade Bond, Investment Grade Fixed Income, Strategic Alpha and Strategic Income funds, and the Loomis Sayles Multisector Full Discretion, Core Plus Full Discretion, High Yield Conservative, High Yield Full Discretion and US High Yield strategies.
Meet the 30 investment professionals whose experience and expertise help drive alpha across Full Discretion strategies