Loomis Sayles Global Growth Strategy Reaches Five Year Anniversary

BOSTON–(BUSINESS WIRE)–Loomis, Sayles & Company, an affiliate of Natixis Investment Managers, marks the five year anniversary of the Loomis Sayles Global Growth strategy. Managed by Aziz Hamzaogullari, founder, chief investment officer and portfolio manager of the Loomis Sayles Growth Equity Strategies (GES) team, the $2.2 billion strategy has delivered its investors an annualized net return of 18.93%, outperforming the MSCI All Country World Index by 6.07%, a return that ranks ahead of 96% of its global growth peers^ (since inception 1/1/2016 through 12/31/2020). The GES team has $78 billion in total assets under management* (as of 12/31/2020).

An active, high-conviction portfolio, the Loomis Sayles Global Growth strategy seeks to produce long-term excess returns by investing in selected high quality companies, globally. The strategy is underpinned by the GES team’s singular and differentiated investment philosophy and supported by their proprietary bottom-up, fundamental, seven-step research framework. With its long-term, private equity approach to investing, the GES team looks to invest in those few high-quality businesses with sustainable competitive advantages and profitable growth when they trade at a significant discount to the team’s estimate of intrinsic value. Because the team believes developing a deep understanding of each investment can also help mitigate risk through investment insights, their active risk management process is integral to its active investment process. The Global Growth portfolio is concentrated, high-conviction and low-turnover, typically holding 30-45 stocks with an annual turnover of 9.0% since inception and active share** typically above 90%.

“We believe the qualities that make a business great are universal in nature, regardless of geographic location. With our structural bottom-up approach, our goal is to identify those businesses with rare qualities in their value chains and profit pools, globally,” said Aziz Hamzaogullari. “Our alpha thesis defines our key differentiators and competitive advantages as a team. We believe these tenets are durable in sustaining alpha generation.”

The team’s investment process is differentiated through its seven-step research framework, which uses disciplined and thorough implementation of bottom-up fundamental analysis to understand the drivers, opportunities and limits of each business. All GES strategies are supported by a single alpha thesis, which encapsulates a deeply held system of persistent beliefs, a rigorous, repeatable investment process and substantive proof points. The GES team believes a focus on the quality of a manager’s investment philosophy, process, and decision-making is essential for assessing the probability of future success.

Aziz brought this differentiated approach to equity investing with him when he joined Loomis Sayles in 2010 to manage the flagship Loomis Sayles Growth Fund. Aziz is also the portfolio manager of the Loomis Sayles All Cap Growth and International Growth long-only strategies, as well as an equity long-short fund. Additionally, he manages the Loomis Sayles Growth and Global Growth mutual funds and offshore strategies. Aziz is also an executive vice president and a member of the firm’s Board of Directors. Under his management, GES platform assets have grown from less than $2 billion to $78 billion. He joined Loomis Sayles in 2010 from Evergreen Investments, where as a managing director and senior portfolio manager, he led the large cap and all cap growth strategies since 2006. He was head of Evergreen’s Berkeley Street Growth Equity team and founded that team’s research and investment processes.

^As of December 31, 2020. Source: eASE Analytics System; eVestment Alliance is the ranking agency. *Ranking out of 790 observations. (eVestment Alliance’s Global, Large Cap and Global All Cap Equity Universe.) Annualized performance is calculated as the geometric mean of the product’s returns with respect to one year. Returns-based data are gross of management fees and net of trading costs. The highest (or most favorable) percentile rank is 1, and the lowest (or least favorable) percentile rank is 100. Rankings are subject to change. Although we believe it is reliable, we cannot guarantee the accuracy of data from a third party source. This information cannot be copied or redistributed in any form.

*Total strategy assets include all assets managed by the respective team.

**Active share indicates the proportion of the portfolio’s holdings (by market value) that are different than the benchmark. A higher active share indicates a larger difference between the benchmark and the portfolio.

LOOMIS SAYLES GLOBAL GROWTH COMPOSITE PERFORMANCE (%) AS OF DECEMBER 31, 2020

    Global Growth (Gross)   Global Growth (Net)   MSCI All Country World Index   MSCI All Country World Growth Index*

4Q 2020

 

13.58

 

13.42

 

14.79

 

13.14

1 Year  

36.30

 

35.53

 

16.82

 

33.94

3 Years  

19.19

 

18.43

 

10.64

 

18.03

Since Inception 1/1/2016  

19.73

 

18.93

 

12.86

 

17.33

Past performance is no guarantee of future results.

*The benchmark for the Global Growth Composite is the MSCI All Country World Index. Performance for the MSCI All Country World Growth Index is shown as supplemental information.

Current performance may be lower or higher than quoted. Returns are shown in US dollars and are annualized for one and multi-year periods. Gross returns are net of trading costs. Net returns are gross returns less effective management fees.

Indices are unmanaged and do not incur fees. It is not possible to invest directly in an index.

Returns may increase or decrease as a result of currency fluctuations

For additional information on this and other Loomis Sayles strategies, please visit our website at www.loomissayles.com.

There is no guarantee that the investment objective will be realized or that the strategy will generate positive or excess return. Any investment that has the possibility for profits also has the possibility of losses.

About Risk: Equity securities are volatile and can decline significantly in response to broad market and economic conditions. Foreign and emerging market securities may be subject to greater political, economic, environmental, credit, currency and information risks. Foreign securities may be subject to higher volatility than US securities due to varying degrees of regulation and limited liquidity. These risks are magnified in emerging markets. Investments in small and mid-size companies can be more volatile than those of larger companies. Growth stocks may be more sensitive to market conditions than other equities as their prices strongly reflect future expectations. Currency exchange rates between the US dollar and foreign currencies may cause the value of the fund’s investments to decline.

ABOUT LOOMIS SAYLES

Since 1926, Loomis, Sayles & Company has helped fulfill the investment needs of institutional and mutual fund clients worldwide. The firm’s performance-driven investors integrate deep proprietary research and integrated risk analysis to make informed, judicious decisions. Teams of portfolio managers, strategists, research analysts and traders collaborate to assess market sectors and identify investment opportunities wherever they may lie, within traditional asset classes or among a range of alternative investments. Loomis Sayles has the resources, foresight and the flexibility to look far and wide for value in broad and narrow markets in its commitment to deliver attractive sustainable returns for clients. This rich tradition has earned Loomis Sayles the trust and respect of clients worldwide, for whom it manages $347.8 billion ** in assets (as of December 31, 2020).

**Includes the assets of Loomis, Sayles & Co., LP, and Loomis Sayles Trust Company, LLC. Loomis Sayles Trust Company is a wholly owned subsidiary of Loomis, Sayles & Company, LP.

ABOUT NATIXIS INVESTMENT MANAGERS

Natixis Investment Managers serves financial professionals with more insightful ways to construct portfolios. Powered by the expertise of more than 20 specialized investment managers globally, we apply Active Thinking® to deliver proactive solutions that help clients pursue better outcomes in all markets. Natixis Investment Managers ranks among the world’s largest asset management firms1 with nearly $1.1 trillion assets under management2 (€910.0 billion).

Headquartered in Paris and Boston, Natixis Investment Managers is a subsidiary of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Investment Managers’ affiliated investment management firms include AEW; Alliance Entreprendre; AlphaSimplex Group; DNCA Investments;3 Dorval Asset Management; Flexstone Partners; Gateway Investment Advisers; H2O Asset Management; Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Mirova; MV Credit; Naxicap Partners; Ossiam; Ostrum Asset Management; Seeyond; Seventure Partners; Thematics Asset Management; Vauban Infrastructure Partners;Vaughan Nelson Investment Management; Vega Investment Managers;4 and WCM Investment Management. Additionally, investment solutions are offered through Natixis Investment Managers Solutions, and Natixis Advisors offers other investment services through its AIA and MPA division. Not all offerings available in all jurisdictions. For additional information, please visit Natixis Investment Managers’ website at im.natixis.com| LinkedIn: linkedin.com/company/natixis-investment-managers.

Natixis Investment Managers’ distribution and service groups include Natixis Distribution, L.P., a limited purpose broker-dealer and the distributor of various U.S. registered investment companies for which advisory services are provided by affiliated firms of Natixis Investment Managers, Natixis Investment Managers S.A. (Luxembourg), Natixis Investment Managers International (France), and their affiliated distribution and service entities in Europe and Asia.

1 Cerulli Quantitative Update: Global Markets 2020 ranked Natixis Investment Managers as the 17th largest asset manager in the world based on assets under management as of December 31, 2019.

2 Assets under management (“AUM”) as of September 30, 2020 is $1,067.3 billion. AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.

3 A brand of DNCA Finance.

4 A wholly-owned subsidiary of Natixis Wealth Management.

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Contacts

Orla O’Brien

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[email protected]

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