Initiating Coverage on Loomis Sayles Global Equity Fund (Quoted Managed Fund) (ASX:LSGE)

November 9, 2021

Loomis Sayles Global Equity Fund (Quoted Managed Fund), (ASX: LSGE) (the “Fund”) is a newly listed Exchange Traded Managed Fund (ETMF), also known as an Active ETF. The Fund was listed on 1 October 2021 and provides exposure to the Loomis Sayles Global Equity Opportunities Strategy (the “Strategy”), which was established in October 2004. The Responsible Entity (RE) is Investors Mutual Limited who has appointed Loomis, Sayles & Company, L.P as the Investment Manager (“Loomis Sayles” or the “Manager”) of the Fund. Loomis Sayles is a global asset manager that was established in 1926 and had over US$350b AUM as at 30 June 2021 across fixed income and equity investment mandates.

The Fund has a long only investment strategy with a fundamental bottom-up investment approach with the portfolio representing the “best ideas” of the investment team. The Fund seeks to deliver a return (after fees and expenses but before taxes) in excess of the benchmark (MSCI All Country World Index) over a full market cycle, which is considered to be 3-5 years. The Manager has an unconstrained mandate with no sector, style or geographic limitations. Stock selection is driven by the fundamental bottom up analysis undertaken by the investment team. The portfolio is concentrated given the investable universe with 35-65 stocks. The Manager has a long-term investment horizon and as such typically has low levels of portfolio turnover. The portfolio is expected to be largely fully invested at all times, with the portfolio typically having a cash position of less than 5%.

The Manager is paid a management fee of 0.99%p.a (incl. GST) of the gross assets of the Fund. There is no performance fee.

IIR has initiated coverage on LSGE with a Recommended rating. To view the full report click here