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Loomis, Sayles & Company, L.P.

PRI reporting framework 2018

Export Public Responses

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, and how they consider ESG factors and real economy impact.

At the heart of Loomis Sayles’ investment management process is the goal of providing superior long-term, risk-adjusted returns for our clients. We fully recognize the important role that environmental, social and governance (“ESG”) issues play in the global economy, financial markets and society at large. Both because Loomis Sayles generally takes a longer term view in seeking value, and because we take the importance of conducting ourselves as responsible global citizens seriously, consideration of ESG issues is inherently a part of our investment decision making.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

We believe that ESG issues play an important role in the global economy, both from a business and investment perspective. Loomis Sayles embraces its duty to act at all times in our clients' best interests, and we believe that ESG issues impact our goal of achieving superior, risk-adjusted returns. We understand that environmental, social, and corporate governance practices may present risks that need to be evaluated, and we analyze these risks as part of our fundamental research process.With respect to integration, we expect our investment professionals to consider all available macro, fundamental and quantitative research insights, including those related to ESG. With respect to screening, Loomis Sayles does not impose any ESG restrictions or exclusions on the investment process. Any screening is mandated by our clients' guidelines, or by regulation.

SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.


02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Indicate if your organisation’s investment principles, and overall investment strategy is publicly available

02.4. Additional information [Optional].

SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Loomis Sayles may encounter potential conflicts of interest.  The potential for encountering such conflicts may arise as a result of the the types of clients it advises, clients' investment strategies, or the presence of competing interests.  By favoring itself, a related party or another client, Loomis may fail to act in the best interest of a client.  When assessing a potential conflict of interest, Loomis must consider whether it: (1) is likely to make financial gain, or avoid financial loss, at the expense of client; (2) has an interest that is separate and distinct from that of the client in the outcome of the service provided to the client or of a transaction carried out on behalf of the client; (3) has a financial or other incentive to favor the interest of one client over that of another client; or (4) receives from a person other than the client an inducement in relation to the service provided to the client, in the form of higher fees. Loomis Sayles regularly reviews its business to identify potential conflicts of interest and adopt appropriate policies and procedures to manage new conflicts. The firm also has oversight committees to monitor conflicts of interest.  

03.3. Additional information. [Optional]


Although it is impossible to anticipate all possible conflicts, Loomis Sayles has indentified those potential conflicts that the firm believes it is most likely to encounter while pursuing its normal business operations. Loomis Sayles' Conflicts of Interest Policy provides an explanation of the firm's policies and procedures for mitgating and managing risks associated with: (1) production and use of inaccurate and/or misleading sales and marketing materials; (2) affiliated trading that favors broker-dealers employed by Loomis Sayles' parent company against the best interests of Loomis Sayles' clients; (3) use of soft dollars generated by clients' commissions to offset Loomis Sayles' costs otherwise incurred; (4) use of financial benefit from errors in a way not in the best interests of clients; (5) relationships with broker-dealers that provide incentives not in the best interests of clients; (6) receipt of gifts and entertainment that could influence recommendations not in the best interests of clients; (7) allocation of investment opportunities that does not treat clients equitably; (8) payment of performance fees received by investment teams that cause preferential treatment to hedge funds managed side by side with other products; (9) cross trading of securities among client accounts in a manner not in the best interest of all accounts involved; (10) allocation of client transactions to broker dealers as a reward for certain sales that may result in best execution; (11) personal trading not in the best interest of clients; (12) engagement in outside business activities that conflict with the best interest of Loomis Sayles and/or its clients; (13) investing in private placements that may create a conflict of interest; (14) inappropriate pricing of securities for products and accounts that are charged fees based on the value of clients' portfolios.



SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within portfolio companies.

04.2. Describe your process on managing incidents

          Loomis Sayles' research analysts are responsible for identifying and reporting on incidents that occur within portfolio companies as part of their coverage of those companies. We consistently measure and monitor analysts' views, ratings and recommendations relative to outcome.