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Loomis & Sayles launches Natixis Loomis Sayles Short Duration Income ETF


Loomis, Sayles & Company, an affiliate of Natixis Investment Managers, has launched the Natixis Loomis Sayles Short Duration Income ETF (NYSE Arca: LSST), an actively managed, investment-grade,¹ short-duration fixed income strategy. 

The fund began trading on 28 December, 2017.

Loomis Sayles sub-advises the fund. The portfolio is managed by Christopher Harms, Cliff Rowe and Kurt Wagner, an experienced team who currently co-manage USD18.2 billion in assets across short, intermediate duration and core fixed income strategies at Loomis Sayles (as of 30 September, 2017). The LSST fund’s total gross expense ratio is 0.87 per cent and total net expense ratio is 0.38 per cent.

“We feel that our experience in security selection give us an edge in the active ETF space. Sector and issue selections will be made using the full extent of our proprietary research resources,” says Jae Park, chief investment officer at Loomis Sayles. “LSST gives investors access to a fixed income strategy that draws on Loomis Sayles’ experience in active credit selection and deep research resources in a low-cost, liquid vehicle.”

LSST’s investment objective seeks current income consistent with preservation of capital. The management team maintains a goal to outperform the Bloomberg Barclays US Government/Credit 1-3 Year Index with similar volatility. The fund’s short-duration structure may provide exposure to the short part of the yield curve with a constant interest rate exposure. It also can provide the added flexibility of increasing sector allocations in the form of credit or securitized credit. The investment process combines bottom-up security selection with top-down macroeconomic analysis.

Sector allocation decisions incorporate Loomis Sayles’ Global Asset Allocation Team (GAAT) views on global interest rates, inflation, economic activity and asset class performance under various economic conditions. Active management, coupled with the short-duration profile, seeks to create a portfolio that may be optimal in a rising rate environment.

“Our clients have diverse investment needs and we are happy to offer them access to our affiliates’ expertise via various vehicles,” says David Giunta, CEO for the US and Canada at Natixis Investment Managers. “Utilising the expertise of Loomis Sayles, we can offer an actively managed short-duration fixed income ETF that may help investors construct a more resilient portfolio for 2018 and beyond.”

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