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Loomis Sayles Core Plus Bond Fund
Fund focus
Loomis Sayles Core Plus Bond Fund seeks income as well as stability of principal by investing at least 80% of its net assets in investment-grade bonds. The fund also has the flexibility to invest up to 20% of total assets in higher-yielding securities.
What you should know
Though investments in higher-yielding securities may boost the fund's income potential, these securities are considered riskier than investment-grade securities because there is a greater rate of default. Mutual funds that invest in bonds can lose their value as interest rates rise, and an investor can lose principal.
Investment strategy
The fund invests primarily in quality corporate and U.S. government bonds, generally maintaining an average effective maturity of ten years or less. Portfolios are structured with benchmark-aware risk and return objectives. Tactical investments in non-benchmark sectors are a key source of potential return. Portfolio construction is driven by bottom-up security selection and top-down macroeconomic analysis. We believe the resulting portfolio is well diversified and positioned to generate strong long-term risk-adjusted investment performance.
Portfolio Highlights
| Information is as of 7/31/08* |
| Mortgage-backed securities |
32.83% |
| Investment Grade Credit |
26.51% |
| High Yield Credit |
11.61% |
| Non-US Dollar (ex CAD) |
7.99% |
| US Treasury |
7.67% |
| Commercial mortgage-backed secs. |
5.82% |
| Asset-backed securities |
2.80% |
| US Agency |
2.54% |
| Cash & Equivalents |
1.13% |
| Preferred/Equity |
0.56% |
| Emerging Markets Debt |
0.55 |
View a list of the most recent top ten holdings for this fund.
View a complete list of holdings
for this fund.
Portfolio Managers
Managed by Loomis Sayles & Company, L.P.
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| Peter Palfrey |
Richard Raczkowski |
"One important characteristic of Loomis Sayles Core Plus Fund is that we can combine intermediate government and corporate bonds. In this way, we can try to take advantage of opportunities across different sectors for attractive overall returns. The Fund's long-term record demonstrates our commitment to that goal."
The following information regarding this Fund is also available:
Because the Fund can invest a significant percentage of assets in foreign securities the value of the Fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The Fund is subject to currency risk, which is the risk that fluctuations in exchange rates between the U.S. dollar and foreign currencies may cause the value of a Fund's investments to decline. Funds that invest in securities denominated in, or receive revenues in, foreign currency are subject to currency risk. Accordingly, the purchase of fund shares should be viewed as a long-term investment.
Because the Fund can invest a significant percentage of assets in debt securities that are rated below investment grade the value of fund shares can be adversely affected by changes in economic conditions or other circumstances. These events could reduce or eliminate the capacity of issuers of these securities to make principal and interest payments. Lower rated debt securities have speculative characteristics because of the credit risk of their issuers and may be subject to greater price volatility than higher rated investments. In addition, the secondary market for these securities may lack liquidity which, in turn, may adversely affect the value of these securities and that of the Fund. Accordingly, the purchase of fund shares should be viewed as a long-term investment.
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