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Loomis Sayles Bond Fund co-manager departs

Kathleen Gaffney
Kathleen Gaffney, the former co-manager of the Loomis Sayles Bond Fund

Kathleen Gaffney, the longtime co-manager of the Loomis Sayles Bond Fund with Daniel Fuss, is no longer with the firm, according to a filing with the Securities and Exchange Commission.

Ms. Gaffney joined Mr. Fuss on the management team of the $22 billion fund in 1997 and was widely seen as the legendary bond manager's eventual successor. Under the pair's guidance, the Loomis Sayles Bond Fund had an annualized return of 8%, more than 200 basis points better than that of the Barclays Capital Aggregate Bond index.

Ms. Gaffney was a named portfolio manager on numerous other mutual funds, including the $1 billion Loomis Sayles Fixed Income Fund. All told, she was managing more than $73 billion in fixed-income assets for Loomis Sayles.

Mr. Fuss won't be left alone on the fund, however. Matthew Eagan and Elaine Stokes were added as managers in 2007.

Erin Heard, spokeswoman for Loomis Sayles, wasn't immediately available for comment.

It was not immediately known if Ms. Gaffney will be joining another firm, and if so, which one.

Jason Kephart is a reporter with InvestmentNews, a sister publication of Pensions & Investments