Loomis Sayles Strategic Alpha Fund Class A (LABAX)

Overview

The fund is designed for investors looking for opportunities in higher risk and potentially higher return investments through exposure to below investment grade fixed-income securities. It strategically allocates its assets to tap into the high-yield bond market, while also opening the doors to international markets through investments denominated in non-U.S. currencies. The utilization of derivatives related to below investment grade fixed-income securities adds a layer of diversification and strategy to the fund's operations, aiming to maximize returns under the framework of controlled risk management.

Products and Services

• Below Investment Grade Fixed-Income Securities:

These are bonds that have a higher risk of default but offer higher interest rates compared to investment-grade bonds. The fund invests up to 100% of its assets in these securities, aiming to capture the high yield potential they offer.

• Derivatives Related to Below Investment Grade Fixed-Income Securities:

Derivatives are financial instruments that derive their value from the performance of an underlying asset, in this case, below investment grade fixed-income securities. The fund uses these derivatives as a tool for hedging and enhancing returns, contributing to strategy diversification.

• Non-U.S. Currency Denominated Investments:

Investments made in currencies other than the U.S. dollar, up to 50% of the fund's total assets. This allows the fund to gain exposure to non-U.S. markets and benefit from currency appreciation against the dollar, in addition to the interest and capital gains from the securities themselves.

• Related Derivatives:

This includes financial derivatives that are linked to investments denominated in non-U.S. currencies. They are used to manage currency risk, hedge against fluctuations in exchange rates, and enhance returns derived from currency movements, further broadening the fund’s investment strategy.