Loomis Sayles Investments Asia Pte. Ltd., an affiliate of Natixis Investment Managers, has launched Asia Bond Plus strategy, the firm’s first multinational co-managed strategy. The strategy expands Loomis Sayles’ emerging markets capabilities line-up and extends the firm’s reach in Asian markets. The strategy is co-managed by Elisabeth Colleran in Boston and Thu Ha Chow in Singapore, who each have more than 20 years of credit research and investment experience.
Loomis Sayles has a long track record of investing in Asia credit and emerging markets debt. The firm manages approximately US$17.0 billion in emerging markets debt assets, and its institutional Asia Credit and Emerging Markets Corporate Debt strategies each have a track record of over ten years, among the longest in the industry. The Loomis Sayles emerging markets debt team currently manages more than US$2.5 billion in dedicated emerging markets debt portfolios across a range of strategies, including emerging markets corporate debt, local currency debt and short duration credit.
With its rich experience in Asia credit, Loomis Sayles believes there are three key reasons to invest in the region: strong macro fundamentals and growth, a growing issuer universe and regional market dynamics that offer lower correlation to global credit indices. Loomis Sayles seeks to enhance its investment proposition by assessing the global environment through a credit cycle lens and leveraging opportunities in security selection based on market inefficiency.
The Asia Bond Plus strategy invests in emerging markets corporate, quasi-sovereign and sovereign issues across the Asia bond universe. Outside of Asia, the strategy also includes countries in emerging Europe, the Middle East and Africa (the “Plus” regions), providing exposure to neighboring markets to reduce the vulnerabilities of a highly concentrated investment universe and increase diversification. Currently, the strategy’s investment universe offers exposure to 50% of world GDP and captures 75% of the world’s GDP growth that is underrepresented in major bond indices.
Jae Park, chief investment officer, comments, “Through the Asia Bond Plus strategy, we offer investors an opportunity to leverage long-term structural growth in Asia and beyond. The strategy combines the potential benefits of investing in Asia credit with the potential of exposure to parts of Africa, the Middle East and Europe, thus being able to leverage the traditional emerging markets story, infrastructure-supported growth and diversification benefits.”