Multi-asset  

Morningstar OBSR awards Loomis Sayles fund ‘Gold’ rating

Loomis Sayles’s UK-domiciled Strategic Income fund has been given a ‘Gold’ rating by Morningstar OBSR.

The fund, which only recently launched in the UK, replicates a strategy in place in the group’s US-based Bond fund and Dublin-domiciled Multisector Income fund, which both carry the ‘Gold’ rating.

Dan Fuss has managed the funds for more than two decades and Morningstar OSBR said the team of two co-managers alongside Mr Fuss and an “impressive bunch of analysts” meant the company was “well-equipped to execute this mandate”.

Article continues after advert

The rating comes in spite of the recent “high-profile departure” of Kathleen Gaffney, Morningstar OBSR said.

“This corporate-heavy, often deep-value strategy has delivered stellar returns for investors over the long term, albeit with higher risk,” Morningstar OBSR said.

“In particular, the fund may invest up to 20 per cent in equities, and can be significantly exposed to non-dollar denominated issues, which makes for a bumpy ride in times of market stress.”