Natixis launches Loomis Sayles Emerging Markets Opportunities Fund

By Toni Weeks

San Luis Obispo, Calif., Feb. 10 - Loomis, Sayles & Co. announced the launch of the Loomis Sayles Emerging Markets Opportunities Fund, an unconstrained emerging markets bond mutual fund with the flexibility to invest in developing markets around the world and the company's first U.S. mutual fund focused on emerging economies.

"Few investors realize that emerging market countries represent approximately 20% of the world's financial assets, and these markets have been broadening and deepening rapidly over the last decade," Peter Marber, head of emerging market investments, said in a press release.

According to the release, the new fund provides the portfolio managers with the flexibility to invest in opportunities across various developing markets in Asia, Latin America, Africa, Central Europe and the Middle East. The fund will be co-managed by Marber, David Rolley, Edgardo Sternberg and Peter Frick.

"This fund will offer investors a unique opportunity to invest across all three asset classes: hard currency sovereigns, local currency sovereigns and emerging market corporate debt," chief investment officer Jae Park said in the release.

"We believe this approach may give investors exposure to yield curves and asset prices that typically do not move in tandem with developed markets, including the U.S."

The fund, a new series under Natixis Funds Trust II, will offer class A, class C, class N and class Y shares. According to an N-1A filing with the Securities and Exchange Commission, the ticker symbols are LEOAX, LEOCX, LEONX and LEOYX, respectively.

The fund will seek to provide high total investment return through a combination of high current income and capital appreciation. Under normal circumstances it will invest at least 80% of its net assets, plus any borrowings for investment purposes, in investments tied economically to emerging market countries.

Among other things, the investments may include securities, currencies and derivative instruments. The fund may invest in foreign currencies and engage in other foreign currency transactions for investment or hedging purposes. The fund may also invest up to 20% of its assets in equity securities. Securities purchased by the fund may be denominated in any currency.

Shareholder fees consist of a 4.5% maximum sales charge for class A shares and a 1% maximum deferred sales charge for class C shares.

Including management fees of 0.75% and the effects of a fee waiver agreement with the investment adviser, total annual fund operating expenses are expected to be 1.25% for class A, 2% for class C, 0.95% for class N and 1% for class Y shares.

Boston-based Loomis, Sayles & Co., LP will act as the investment adviser.

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