The Apostle Loomis Sayles Senior Loan Fund gained +3.62% in May, in a month where CCC-rated loans gained +18%.
1 yr return: -9.53%. Annual (Nov 2007): -5.50%
Given the Fund is heavily weighted towards higher quality investments and has a a significant cash holding, it missed out on this impressive result and performed in line with the BB- benchmark. Regardless of this result the manager does not intend to rebalance the Fund's portfolio to capture the risk-rally returns of lower grade loans. The manager also remains cautious regarding the outlook for credit markets, and the global economy as a whole, and continues to search for investments the recent market rallies have overlooked.
