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Loomis Sayles' bond funds management changes

TheShadowTheShadow
in Fund Discussions
https://www.sec.gov/Archives/edgar/data/917469/000168386320014977/f7564d1.htm

LOOMIS SAYLES FUNDS
LOOMIS SAYLES BOND FUND
LOOMIS SAYLES FIXED INCOME FUND
LOOMIS SAYLES INSTITUTIONAL HIGH INCOME FUND
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND

(each a "Fund" and together the "Funds")

Supplement dated December 7, 2020 to the Loomis Sayles Funds' Summary Prospectuses, Statutory Prospectus and Statement of Additional Information ("SAI"), each dated February 1, 2020 as may be revised or supplemented from time to time.

Effective March 1, 2021, Daniel J. Fuss will take a significant step back from portfolio management and will no longer serve as a Portfolio Manager of the Funds. This is the latest phase of the Loomis Sayles portfolio management team's succession plan, which has been in place for more than 20 years.

Accordingly, effective March 1, 2021, all references to Mr. Fuss as a Portfolio Manager of the Funds in the Summary Prospectuses, Statutory Prospectus and SAI are hereby deleted.

Matthew J. Eagan, Brian P. Kennedy and Elaine M. Stokes will remain as Portfolio Managers of the Loomis Sayles Bond Fund, Loomis Sayles Fixed Income Fund and Loomis Sayles Investment Grade Fixed Income Fund.

Matthew J. Eagan and Elaine M. Stokes will remain as Portfolio Managers of the Loomis Sayles Institutional High Income Fund.

Change to Fiscal Year End of Loomis Sayles Bond Fund and Loomis Sayles Investment Grade Fixed Income Fund

The Board of Trustees of Loomis Sayles Funds I has approved a change to the fiscal year end of Loomis Sayles Bond Fund and Loomis Sayles Investment Grade Fixed Income Fund from September 30th to December 31st. The implementation of the change to the fiscal year end and the expected disposition and realignment of certain foreign currency-denominated positions over the next few weeks are likely to result in additional trading costs, increased realized capital losses and currency losses from the sales of portfolio securities, and increased audit, printing and mailing expenses for the Funds in the short term. Further, these changes are expected to reduce the future impact of currency exchange losses on taxable monthly distributions and reduce the amount of currency-related losses available to offset future taxable ordinary income for Loomis Sayles Bond Fund and Loomis Sayles Investment Grade Fixed Income Fund shareholders. Increased monthly income distributions going forward may result in an increased tax liability for shareholders who are subject to state and federal income taxes on their income distributions from the Funds.

LOOMIS SAYLES HIGH INCOME OPPORTUNITIES FUND

Supplement dated December 7, 2020 to the Summary Prospectus, Statutory Prospectus and Statement of Additional Information ("SAI") of the Loomis Sayles High Income Opportunities Fund (the "Fund"), each dated February 1, 2020 as may be revised or supplemented from time to time.

Effective March 1, 2021, Daniel J. Fuss will take a significant step back from portfolio management and will no longer serve as a Portfolio Manager of the Fund. This is the latest phase of the Loomis Sayles portfolio management team's succession plan, which has been in place for more than 20 years. Accordingly, effective March 1, 2021, all references to Mr. Fuss as a Portfolio Manager of the Fund in the Summary Prospectus, Statutory Prospectus and SAI are hereby deleted.

Matthew J. Eagan, Brian P. Kennedy, Elaine M. Stokes and Todd P. Vandam will remain as Portfolio Managers of the Fund.

Comments

  • Sven
    Egan and Stokes have worked with Dan Fuss for quite a while. So this change should not affect the LS bond fund. Dan Fuss is in his 80's and this move is encouraging going forward.
  • msf
    Fuss promoted himself (to the extent that he did any self-promoting) by pointing out that he is one of the few bond managers around with experience in rising interest rate environments. I can't say how valuable that experience is, but as investors here know, there's a difference between following something on paper (or conceptually) and actually having actual money on the line.
  • Sven
    My impression is that he is rather inflexible in his bond investing. Never quite understand his love of thinly traded junk bonds. Also the large asset base does not help either. Drawdown in 2008 and spring 2020 showed the downside risk.
  • carew388carew388
    +1 Yes-the 22% loss in 2008 was worse than some junk bond funds,so I steer clear of any funds managed by Fuss-too much fuss there !
  • sma3
    I agree. Fuss does great interviews, always seems very smart but I have never made much money in any of his bond funds since the mid 1990s, and their volatility is the poster child for "stomach churning"
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