Loomis Sayles Growth Fund is described as “a strategy with competitive advantages of its own” in the Morningstar Analyst RatingTM report.
Report noted that “Hamzaogullari has crafted and faithfully followed a worthy approach.”
BOSTON–(BUSINESS WIRE)–Loomis, Sayles & Company today announced that its Loomis Sayles Growth Fund, which is managed by the firm’s Growth Equity Strategies (GES) team, has earned a Morningstar Analyst RatingTM of Gold.
The Loomis Sayles Growth Fund (LSGRX) is among a suite of growth equity products managed by Aziz V. Hamzaogullari, the chief investment officer and founder of the firm’s GES team, which has nearly $52 billion in assets under management. A differentiated investment philosophy – supported by a proprietary seven-step research framework – underpins the GES team’s long-term, private equity approach. In the supporting analysis for awarding the Gold rating, Morningstar cited the Growth Fund’s “attractive and well-executed approach” which earned the fund a “High” rating for the Process pillar.
“The team believes that patient, high-conviction, valuation-sensitive investing in companies with clear and persistent competitive advantages is key to success,” the report asserts. Recognizing the team’s disciplined execution of its process, Morningstar highlights, “The team then walks the walk. It uses an extensive seven-step process to identify effective business models that can produce durable free cash flow growth. Analysts dig into company and industry growth drivers and expect them to persist for five years or longer. They also try to discern whether a stock’s recent price reflects changes in market sentiment or fundamentals, looking for disconnects between the two that create opportunities. They’re willing to spend months on their research. Ultimately, Hamzaogullari constructs a relatively concentrated 30- to 40-stock portfolio that he trades with restraint.”
“We are honored and grateful for Morningstar’s recognition of the Growth Equity Strategies team’s differentiated investment philosophy, rigorous process and disciplined decision-making with a Gold analyst rating for our Growth Fund,” said Hamzaogullari. “Our focus remains on striving to generate long-term value for investors through patient and disciplined adherence to our process by investing in durable growth businesses at attractive valuations.”
“As the leader of Loomis Sayles’ Growth Equity Strategies team for over a decade, Aziz has cultivated both a unique investment process and an exceptionally capable, stable team to follow it,” said Kevin Charleston, chief executive officer of Loomis Sayles. “I am proud that Morningstar’s Gold analyst rating for the Growth Fund reflects the team’s consistency, passion for investing and dedication to serving our clients’ needs.”
ABOUT LOOMIS SAYLES
Since 1926, Loomis, Sayles & Company has helped fulfill the investment needs of institutional and mutual fund clients worldwide. The firm’s performance-driven investors integrate deep proprietary research and risk analysis to make informed, judicious decisions. Teams of portfolio managers, strategists, research analysts and traders collaborate to assess market sectors and identify investment opportunities wherever they may lie, within traditional asset classes or among a range of alternative investments. Loomis Sayles has the resources, foresight and the flexibility to look far and wide for value in broad and narrow markets in its commitment to deliver attractive, risk-adjusted returns for clients. This rich tradition has earned Loomis Sayles the trust and respect of clients worldwide, for whom it manages $277.5 billion* in assets (as of 30 September 2022).
*Includes the assets of both Loomis, Sayles & Co., LP, and Loomis Sayles Trust Company, LLC. ($32.9 billion for the Loomis Sayles Trust Company). Loomis Sayles Trust Company is a wholly owned subsidiary of Loomis, Sayles & Company, L.P.
The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Morningstar’s analysts use this five pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors in their research, but the assessment and weighting of each of the five pillars is driven by the analyst’s overall assessment and overseen by Morningstar’s Analyst Rating Committee. The approach serves not as a formula but as a framework to ensure consistency across Morningstar’s global coverage universe. The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A fund with “Gold” rating distinguishes itself across the five pillars and has garnered the analysts’ highest level of conviction. A fund with a “Silver” rating has notable advantages across several, but perhaps not all, of the five pillars—strengths that give the analysts a high level of conviction. A “Bronze”—rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a “Neutral” rating isn’t seriously flawed across the five pillars, nor does it distinguish itself very positively. A “Negative” rated fund is flawed in at least one if not more pillars and is considered an inferior offering to its peers. For more detailed information about Morningstar’s Analyst Rating, including this methodology, please go to http://corporate.morningstar.com/us/documents/Methodology/Documents/AnalystRatingsFundsMethodology.odf. The Morningstar Analyst Rating should not be used as the sole basis in evaluating a mutual fund. Morningstar Analyst Ratings are based on Morningstar’s current expectations about future events; therefore, in no way does Morningstar represent ratings as a guarantee nor should they be viewed by an investor as such. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly from what we expected.
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