Loomis Sayles to liquidate shares due to 'severe tax consequences'

By Aleesia Forni

Columbus, Ohio, Oct. 28 - Loomis Sayles Investment-Grade Bond Fund will liquidate its class J shares due to "severe tax consequences in Japan," according to media relations manager Erin Heard.

The J shares were sold only in Japan, and earlier in the year, the company added the ability for this fund to invest in equities, which caused higher taxes.

"We worked with the team in Japan, and the decision was made to close the J class, because ... the flexibility of the fund wasn't benefit enough to amount [to] what those tax consequences were going to be," Heard told Prospect News.

Clients are able to liquidate their shares now, or there will be an automatic redemption when the shares liquidate on Jan. 11.

Shareholders will receive proceeds equal to the net asset value of their shares as of the liquidation date.

Heard said that as of earlier this week, average assets under management in those shares was $97 million.

Loomis Sayles, a subsidiary of Natixis Global Asset Management LP, is the Boston-based adviser of this fund.

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