In a stubbornly low interest rate environment, investors are finding it difficult to balance yield generation and rate risk exposure. Benchmark bond indices just aren’t cutting it.
In the upcoming webcast, Need Better Bonds? The Case for Active Management, Kenneth Herold, Senior Vice President and Director of the Investment Strategies Group, Natixis Investment Managers; and Christopher T. Harms, Vice President and Portfolio Manager, Loomis, Sayles & Company, will discuss the benefits of actively managed fixed income strategies given the current interest rate outlook.
As a way to better-manage potential market risks down the road, investors can turn to actively implemented quantitative strategies that try to provide better exposure to the changing market conditions. For example, Natixis Investment Managers offers the actively managed Natixis Loomis Sayles Short Duration Income ETF (NYSEArca: LSST).
The Natixis Loomis Sayles Short Duration Income ETF is supported by Loomis Sayles’ global research platform, which combines top-down macroeconomic analysis with bottom-up security selection. LSST provides dynamic, active approach to sector allocation and security selection by a highly experienced portfolio management team supported by the depth and breadth of Loomis Sayles credit and securitized research. The ETF will try to achieve current income consistent with preservation of capital by investing in fixed income securities such as bonds, notes, and debentures, as well as other investments, with an average duration between one and three years.
When deciding which securities to buy and sell, Loomis Sayles will consider a number of factors related to the bond issue and the current bond market, including the stability and volatility of a country’s bond markets, the financial strength of the issuer, current interest rates, current valuations, and Loomis Sayles’ expectations regarding general trends in interest rates. The active ETF managers will also consider how purchasing or selling a bond would impact the portfolio’s risk profile and potential return.
Financial advisors who are interested in learning more about active bond strategies can register for the Tuesday, May 18 webcast here.