Loomis Sayles on Wednesday launched a global absolute-return fixed-income mutual fund, with an institutional version of the strategy to follow in the first quarter.
Matthew Eagan, a co-portfolio manager of the new Loomis Sayles Absolute Strategies fund, said in a telephone interview that the investment team, including Kevin Kearns, senior derivatives strategies, and Todd Vandam, senior credit strategist, will be free to invest opportunistically across the full range of global securities and sectors, while using long/short strategies to hedge volatility and deliver consistent returns.
Although the fund will first be offered to retail investors, a number of institutional investors are poised to seed an institutional commingled version of the product around February, Mr. Eagan said. He declined to name the institutional investors.
Interest in a more tactical, flexible strategy aimed at maximizing returns while minimizing volatility reflects growing concerns among investors that leading buy-and-hold bond indexes won’t offer an attractive risk-reward trade-off for the foreseeable future, he said.