Morningstar - Q3 2022 - 53

Strategies
Go Anywhere
Loomis Sayles Global Allocation follows a flexible approach
to global markets
BEST IDEAS: MANAGER
Emory Zink
This article is adapted from the fund's Morningstar Global Fund Report dated
July 5, 2022.
The team behind Loomis Sayles Global Allocation executes a best-ideas
portfolio through a combination of bottom-up fundamental security selection
and collaborative relative-value discussions. The cheapest share classes
earn a Morningstar Analyst Rating of Silver; the most expensive is rated Bronze.
Portfolio managers Matthew Eagan (U.S. fixed-income sleeve) and David Rolley
(non-U.S. fixed-income sleeve) collaborate closely with their colleagues
Eileen Riley and Lee Rosenbaum (co-leads on the global equity sleeve). While
each sleeve sources security selection ideas from the firm's relevant analysts
and traders, asset-allocation decisions result from discussions that tap the
broad experience of the four leads. The output of proprietary valuation models
and risk dashboards provide this group an additional edge when evaluating
investment opportunities across asset classes, sectors, regions, and currencies.
Though veteran manager Dan Fuss retired from this effort in March 2021,
he remains available as a senior advisor to the group.
This quartet of comanagers takes a " go anywhere " approach and generates
ideas from collaborative discussions with credit and equity analysts. The
bond sleeve isn't managed to provide portfolio ballast, as is the case in more
traditional allocation funds. Instead, allocations reflect the team's views
on relative-value opportunities, which can result in significant stakes in
high-yield and emerging-markets debt. Equities have ranged anywhere from
35% to 70% of the portfolio but sat above 60% for the preceding decade.
From May 2013, when three of the four current portfolio managers began
collaborating here, through May 2022, this strategy's N shares generated
a 7.4% annualized return that bested all of its global allocation Morningstar
Category competitors and outpaced both the 5.7% of its Morningstar
Global Allocation Index benchmark and the 5.4% of its 60% MSCI All Country
World Index/40% Bloomberg Global Aggregate Bond Index custom bogy. During
volatile markets, this strategy's more aggressive profile can cause it to lag-
for the year to date through May 2022, the strategy has trailed nearly all rivals.
But the strategy has a compelling risk-adjusted record over longer periods. K
Emory Zink is associate director, multi-asset and alternatives strategies, at Morningstar
Research Services LLC.
Loomis Sayles Global Allocation LSWWX
Stats 06/30/2022
Morningstar Analyst Rating
„
Fee Level
Below Avg
Process
Above Average
Growth of 10K 06/30/2022
$16K
Loomis Sayles Global Allocation
14
Morningstar Global Allocation
06/2019
Value
Blend
06/2020
Morningstar Style Box 05/31/2022
Growth
Snapshot as
of most recent
portfolio.
06/2021
Morningstar Ratings 06/30/2022
Period
Mstar
Return
3-Yr
5-Yr
10-Yr
Mstar
Risk
10.62
10.83
12
10
8
Morningstar Category
Global Allocation
10-Yr Annlzd Return
7.24%
Morningstar Pillars 06/30/2022
People
High
Parent
Average
Expense Ratio
0.87%
10-Yr % Rank in Cat
1
Mstar
Rating
Average Above Avg QQQ
Above Avg Above Avg QQQQ
High
Overall Rating
Top 5 Sectors 05/31/2022
■ Fund ❙ Category Average
a Technology
y Financial Services
d Healthcare
t Consumer Cyclical
p Industrials
0%
18.51
15.60
12.65
10.76 14.33
11.43
10
morningstar.com/products/magazine
20
30
53
10.67
16.33
14.94
25.60
Above Avg QQQQ
QQQQ
Small
Mid
Large
https://www.morningstar.com/authors/1949/emory-zink http://www.morningstar.com/products/magazine
Morningstar - Q3 2022

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