N-Q/A 1 d548395dnqa.htm LOOMIS SAYLES FUNDS II Loomis Sayles Funds II

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-06241

 

 

Loomis Sayles Funds II

(Exact name of registrant as specified in charter)

 

 

888 Boylston Street, Suite 800, Boston, Massachusetts 02199-8197

(Address of principal executive offices) (Zip code)

 

 

Russell L. Kane, Esq.

Natixis Distribution, L.P.

888 Boylston Street, Suite 800

Boston, Massachusetts 02199-8197

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (617) 449-2822

Date of fiscal year end: September 30

Date of reporting period: December 31, 2017

 

 

 

 


ITEM 1. SCHEDULE OF INVESTMENTS

 


PORTFOLIO OF INVESTMENTS – as of December 31, 2017 (Unaudited)

Loomis Sayles Small/Mid Cap Growth Fund

 

Shares

    

Description

   Value (†)  
 

Common Stocks – 96.1% of Net Assets

 
  

Aerospace & Defense – 4.1%

 

  3,043     

HEICO Corp.

   $ 287,107  
  3,868     

Hexcel Corp.

     239,236  
  4,751     

Mercury Systems, Inc.(a)

     243,964  
     

 

 

 
        770,307  
     

 

 

 
  

Air Freight & Logistics – 1.8%

 

  3,746     

XPO Logistics, Inc.(a)

     343,096  
     

 

 

 
  

Auto Components – 1.2%

 

  1,791     

LCI Industries

     232,830  
     

 

 

 
  

Banks – 4.3%

 

  4,810     

Columbia Banking System, Inc.

     208,947  
  8,036     

Home BancShares, Inc.

     186,837  
  2,314     

UMB Financial Corp.

     166,423  
  4,344     

Western Alliance Bancorp(a)

     245,957  
     

 

 

 
        808,164  
     

 

 

 
  

Biotechnology – 2.2%

 

  12,257     

Ironwood Pharmaceuticals, Inc.(a)

     183,732  
  2,955     

Neurocrine Biosciences, Inc.(a)

     229,279  
     

 

 

 
        413,011  
     

 

 

 
  

Building Products – 1.5%

 

  2,203     

American Woodmark Corp.(a)

     286,941  
     

 

 

 
  

Capital Markets – 6.1%

 

  1,738     

Cboe Global Markets, Inc.

     216,537  
  1,242     

MarketAxess Holdings, Inc.

     250,574  
  1,810     

MSCI, Inc.

     229,037  
  4,273     

SEI Investments Co.

     307,058  
  2,715     

Stifel Financial Corp.

     161,705  
     

 

 

 
        1,164,911  
     

 

 

 
  

Chemicals – 0.9%

 

  2,341     

Ingevity Corp.(a)

     164,970  
     

 

 

 
  

Commercial Services & Supplies – 3.5%

 

  4,716     

Healthcare Services Group, Inc.

     248,628  
  4,708     

KAR Auction Services, Inc.

     237,801  
  5,657     

Ritchie Bros. Auctioneers, Inc.

     169,314  
     

 

 

 
        655,743  
     

 

 

 
  

Consumer Finance – 0.6%

 

  9,944     

SLM Corp.(a)

     112,367  
     

 

 

 
  

Diversified Consumer Services – 3.2%

 

  3,375     

Bright Horizons Family Solutions, Inc.(a)

     317,250  


Shares

    

Description

   Value (†)  
 

Common Stocks – continued

 
  

Diversified Consumer Services – continued

 

  3,346     

Grand Canyon Education, Inc.(a)

   $ 299,567  
     

 

 

 
        616,817  
     

 

 

 
  

Diversified Telecommunication Services – 1.3%

 

  5,389     

Cogent Communications Holdings, Inc.

     244,122  
     

 

 

 
  

Electrical Equipment – 1.3%

 

  4,813     

Generac Holdings, Inc.(a)

     238,340  
     

 

 

 
  

Electronic Equipment, Instruments & Components – 5.2%

 

  633     

Coherent, Inc.(a)

     178,645  
  5,898     

National Instruments Corp.

     245,534  
  1,650     

Rogers Corp.(a)

     267,168  
  7,040     

Trimble, Inc.(a)

     286,106  
     

 

 

 
        977,453  
     

 

 

 
  

Energy Equipment & Services – 1.3%

 

  2,801     

Dril-Quip, Inc.(a)

     133,608  
  4,351     

Oil States International, Inc.(a)

     123,133  
     

 

 

 
        256,741  
     

 

 

 
  

Food Products – 0.8%

 

  4,912     

Blue Buffalo Pet Products, Inc.(a)

     161,064  
     

 

 

 
  

Health Care Equipment & Supplies – 6.2%

 

  799     

ABIOMED, Inc.(a)

     149,740  
  1,162     

Cantel Medical Corp.

     119,535  
  4,731     

Merit Medical Systems, Inc.(a)

     204,379  
  2,054     

Penumbra, Inc.(a)

     193,281  
  1,657     

STERIS PLC

     144,938  
  1,664     

West Pharmaceutical Services, Inc.

     164,187  
  9,408     

Wright Medical Group NV(a)

     208,858  
     

 

 

 
        1,184,918  
     

 

 

 
  

Health Care Providers & Services – 2.8%

 

  5,204     

HealthEquity, Inc.(a)

     242,819  
  1,451     

WellCare Health Plans, Inc.(a)

     291,810  
     

 

 

 
        534,629  
     

 

 

 
  

Health Care Technology – 2.0%

 

  4,969     

Cotiviti Holdings, Inc.(a)

     160,051  
  3,952     

Veeva Systems, Inc., Class A(a)

     218,467  
     

 

 

 
        378,518  
     

 

 

 
  

Hotels, Restaurants & Leisure – 4.1%

 

  15,788     

Arcos Dorados Holdings, Inc., Class A(a)

     163,406  
  10,182     

Planet Fitness, Inc., Class A(a)

     352,603  
  1,199     

Vail Resorts, Inc.

     254,751  
     

 

 

 
        770,760  
     

 

 

 
  

Internet Software & Services – 3.9%

 

  1,034     

CoStar Group, Inc.(a)

     307,046  


Shares

    

Description

   Value (†)  
 

Common Stocks – continued

 
  

Internet Software & Services – continued

 

  5,909     

GTT Communications, Inc.(a)

   $ 277,428  
  2,133     

j2 Global, Inc.

     160,039  
     

 

 

 
        744,513  
     

 

 

 
  

IT Services – 4.3%

 

  5,011     

Black Knight, Inc.(a)

     221,236  
  2,291     

Broadridge Financial Solutions, Inc.

     207,519  
  1,543     

EPAM Systems, Inc.(a)

     165,764  
  1,868     

Gartner, Inc.(a)

     230,044  
     

 

 

 
        824,563  
     

 

 

 
  

Life Sciences Tools & Services – 1.5%

 

  2,530     

ICON PLC(a)

     283,739  
     

 

 

 
  

Machinery – 8.0%

 

  4,884     

Altra Industrial Motion Corp.

     246,154  
  9,344     

Gardner Denver Holdings, Inc.(a)

     317,042  
  2,039     

John Bean Technologies Corp.

     225,921  
  1,548     

Middleby Corp. (The)(a)

     208,903  
  4,095     

Sun Hydraulics Corp.

     264,905  
  1,717     

WABCO Holdings, Inc.(a)

     246,389  
     

 

 

 
        1,509,314  
     

 

 

 
  

Media – 1.4%

 

  6,138     

Live Nation Entertainment, Inc.(a)

     261,295  
     

 

 

 
  

Oil, Gas & Consumable Fuels – 1.9%

 

  1,771     

Diamondback Energy, Inc.(a)

     223,589  
  4,767     

Parsley Energy, Inc., Class A(a)

     140,340  
     

 

 

 
        363,929  
     

 

 

 
  

Professional Services – 1.5%

 

  5,077     

TransUnion(a)

     279,032  
     

 

 

 
  

Real Estate Management & Development – 1.1%

 

  3,033     

First Service Corp.

     212,067  
     

 

 

 
  

Semiconductors & Semiconductor Equipment – 2.3%

 

  3,069     

Advanced Energy Industries, Inc.(a)

     207,096  
  2,586     

Silicon Laboratories, Inc.(a)

     228,344  
     

 

 

 
        435,440  
     

 

 

 
  

Software – 10.1%

 

  2,581     

Blackbaud, Inc.

     243,879  
  9,593     

Callidus Software, Inc.(a)

     274,839  
  3,614     

Guidewire Software, Inc.(a)

     268,376  
  3,569     

HubSpot, Inc.(a)

     315,500  
  3,556     

Paylocity Holding Corp.(a)

     167,701  
  4,238     

PTC, Inc.(a)

     257,543  
  3,837     

Talend S.A., ADR(a)

     143,811  
  1,075     

Ultimate Software Group, Inc. (The)(a)

     234,597  
     

 

 

 
        1,906,246  
     

 

 

 


Shares

    

Description

   Value (†)  
 

Common Stocks – continued

 
  

Specialty Retail – 2.4%

 

  4,722     

Camping World Holdings, Inc., Class A

   $ 211,215  
  4,848     

Floor & Decor Holdings, Inc., Class A(a)

     236,001  
     

 

 

 
        447,216  
     

 

 

 
  

Textiles, Apparel & Luxury Goods – 1.9%

 

  1,516     

Carter’s, Inc.

     178,115  
  2,448     

Columbia Sportswear Co.

     175,962  
     

 

 

 
        354,077  
     

 

 

 
  

Trading Companies & Distributors – 1.4%

 

  10,460     

BMC Stock Holdings, Inc.(a)

     264,638  
     

 

 

 
  

Total Common Stocks
(Identified Cost $14,038,509)

     18,201,771  
     

 

 

 

Principal

Amount

             
 

Short-Term Investments – 4.0%

 
$ 758,473     

Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/29/2017 at 0.540% to be repurchased at $758,518 on 1/02/2018 collateralized by $770,000 U.S. Treasury Note, 2.250% due 1/31/2024 valued at $774,227 including accrued interest(b)
(Identified Cost $758,473)

     758,473  
     

 

 

 
      

Description

   Value (†)  
  

Total Investments – 100.1%
(Identified Cost $14,796,982)

   $ 18,960,244  
  

Other assets less liabilities – (0.1)%

     (28,161
     

 

 

 
  

Net Assets – 100.0%

   $ 18,932,083  
     

 

 

 


(†) Fund securities and other investments are valued at market value based on market quotations obtained or determined by independent pricing services recommended by the adviser and approved by the Board of Trustees. Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees, as described below. Market value is determined as follows:

Listed equity securities (including shares of closed-end investment companies and exchange-traded funds) are valued at the last sale price quoted on the exchange where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking an NOCP, at the most recent bid quotations on the applicable NASDAQ Market. Unlisted equity securities (except unlisted preferred equity securities) are valued at the last sale price quoted in the market where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. If there is no last sale price or closing bid quotation available, unlisted equity securities will be valued using evaluated bids furnished by an independent pricing service, if available.

In some foreign markets, an official close price and a last sale price may be available from the foreign exchange or market. In those cases, the official close price is used.

Debt securities and unlisted preferred equity securities are valued based on evaluated bids furnished to the Fund by an independent pricing service or bid prices obtained from broker-dealers.

Broker-dealer bid prices may be used to value debt and unlisted equity securities where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security.

Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees. The Fund may also value securities and other investments at fair value in other circumstances such as when extraordinary events occur after the close of a foreign market but prior to the close of the New York Stock Exchange (“NYSE”). This may include situations relating to a single issuer (such as a declaration of bankruptcy or a delisting of the issuer’s security from the primary market on which it has traded) as well as events affecting the securities markets in general (such as market disruptions or closings and significant fluctuations in U.S. and/or foreign markets). When fair valuing its securities or other investments, the Fund may, among other things, use modeling tools or other processes that may take into account factors such as securities or other market activity and/or significant events that occur after the close of the foreign market and before the time the Fund’s net asset value (“NAV”) is calculated. Fair value pricing may require subjective determinations about the value of a security, and fair values used to determine the Fund’s NAV may differ from quoted or published prices, or from prices that are used by others, for the same securities. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities held by the Fund.

The books and records of the Fund are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period.

 

(a) Non-income producing security.
(b) The Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which the Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is the Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon the Fund’s ability to dispose of the underlying securities. As of December 31, 2017, the Fund had an investment in a repurchase agreement for which the value of the related collateral exceeded the value of the repurchase agreement.

 

ADR An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States.

 

SLM Sallie Mae


Fair Value Measurements

In accordance with accounting standards related to fair value measurements and disclosures, the Fund has categorized the inputs utilized in determining the value of the Fund’s assets or liabilities. These inputs are summarized in the three broad levels listed below:

 

    Level 1 - quoted prices in active markets for identical assets or liabilities;

 

    Level 2 - prices determined using other significant inputs that are observable either directly, or indirectly through corroboration with observable market data (which could include quoted prices for similar assets or liabilities, interest rates, credit risk, etc.); and

 

    Level 3 - prices determined using significant unobservable inputs when quoted prices or observable inputs are unavailable such as when there is little or no market activity for an asset or liability (unobservable inputs reflect the Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2017, at value:


Asset Valuation Inputs

 

Description

   Level 1      Level 2      Level 3      Total  

Common Stocks*

   $ 18,201,771      $ —        $ —        $ 18,201,771  

Short-Term Investments

     —          758,473        —          758,473  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 18,201,771      $ 758,473      $ —        $ 18,960,244  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

* Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

For the period ended December 31, 2017, there were no transfers among Levels 1, 2 and 3.


Industry Summary at December 31, 2017 (Unaudited)

 

Software

     10.1

Machinery

     8.0  

Health Care Equipment & Supplies

     6.2  

Capital Markets

     6.1  

Electronic Equipment, Instruments & Components

     5.2  

IT Services

     4.3  

Banks

     4.3  

Hotels, Restaurants & Leisure

     4.1  

Aerospace & Defense

     4.1  

Internet Software & Services

     3.9  

Commercial Services & Supplies

     3.5  

Diversified Consumer Services

     3.2  

Health Care Providers & Services

     2.8  

Specialty Retail

     2.4  

Semiconductors & Semiconductor Equipment

     2.3  

Biotechnology

     2.2  

Health Care Technology

     2.0  

Other Investments, less than 2% each

     21.4  

Short-Term Investments

     4.0  
  

 

 

 

Total Investments

     100.1  

Other assets less liabilities

     (0.1
  

 

 

 

Net Assets

     100.0
  

 

 

 


ITEM 2. CONTROLS AND PROCEDURES.

The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

There were no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS

 

(a)(1) Certification for the Principal Executive Officer pursuant to Rule 30a-2(a) of the Investment Company Act of 1940 (17 CFR 270.30a-2(a)), filed herewith.
(a)(2) Certification for the Principal Financial Officer pursuant to Rule 30a-2(a) of the Investment Company Act of 1940 (17 CFR 270.30a-2(a)), filed herewith.

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Loomis Sayles Funds II
By:  

/s/ David L. Giunta

Name:   David L. Giunta
Title:   Chief Executive Officer
Date:   March 23, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ David L. Giunta

Name:   David L. Giunta
Title:   Chief Executive Officer
Date:  

March 23, 2018

By:  

/s/ Michael C. Kardok

Name:   Michael C. Kardok
Title:   Treasurer
Date:   March 23, 2018