Loomis Sayles Sustainable Euro Credit | Natixis Investment Managers

The philosophy

ESG within the Euro Credit team

Four elements to our process

*ESG integration refers to the inclusion of Environmental, Social and Governance issues in investment analysis and decisions. ESG integration doesn't necessarily imply that investment vehicles also seek to generate a positive ESG impact. ESG risk, assessment remains subjective, in particular due to the lack of standardized methodology within the financial industry.

**Exclusion could occur during selection process or upon review.

Reasons to consider

To offer consistent excess return potential versus the benchmark, the team seeks to utilize a conservative alpha investment process.

The strategy combines top-down research with bottom-up fundamental analysis, and is actively managed by seven managers, each of whom is a sector specialist. This results in a collaborative, team-based approach with a focus on risk and relative value.

In managing corporate bond portfolios, we have a beta-driven risk orientation, typically resulting in highly diversified portfolios by sector, ratings and issuers.

The strategy employs a proprietary ESG process emphasizing screening, integration, engagement, and exclusion incorporated into company research. ESG is an integral part of the bottom-up process, and the team uses internal and third-party ESG research. It will also engage issuers and exclude those that they think are a material concern and/or if engagement is unsuccessful.

Adopting a highly specialist and collaborative approach, the strategy aims to outperform the wider Euro Corporate Index with significantly less volatility”

– Rik den Hartog, Portfolio Manager, Loomis, Sayles & Company

The analyses and opinions referenced herein represent the subjective views of the author(s) as referenced, are as of the date shown and are subject to change without prior notice.

Risks to consider

All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income and alternative investments. There is no assurance than any investment will meet its performance objectives of that losses will be avoided. There could be other differences across similar products in the same strategy. Investors should fully understand the risks and other relevant details associated with any investment prior to investing.