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Loomis Sayles Strategic Income Fund
Fund focus
The fund pursues high current income and capital growth by combining investments in corporate, high yield, international, and government bonds.
What you should know
The fund's foreign investing includes different currency, political, and economic conditions, and different accounting standards. The fund also may invest in higher-yielding securities, which are considered riskier than investment-grade securities because there is a higher rate of default among the issuers of such securities. Mutual funds that invest in bonds can lose their value as interest rates rise, and an investor can lose principal.
Investment strategy
Loomis Sayles seeks undervalued bonds with favorable current yields and strong prospects for price appreciation, before they are recognized by the marketplace. It takes advantage of Loomis Sayles' extensive research to support their bottom-up bond picking style.
Portfolio Highlights
| Information is as of 8/31/08* |
| Investment Grade Credit |
35.08% |
| High Yield Credit |
21.60% |
| Non-US Dollar (ex CAD) |
17.98% |
| Canadian Dollar |
8.45% |
| Preferred/Equity |
5.26% |
| Convertibles |
4.87% |
| US Treasury |
2.13% |
| Municipals |
1.76% |
| Bank Loans |
1.54% |
| Asset-backed securities |
0.67% |
| Cash & Equivalents |
0.31% |
| US Agency |
0.27% |
| Emerging Markets Debt |
0.08% |
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.
| Lead Portfolio Managers |
Associate Portfolio Managers |
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| Daniel Fuss |
Kathleen Gaffney |
Matthew Eagan |
Elaine Stokes |
"We like to buy bonds at a discount that offer a nice yield advantage to the market and that in our view have room to go up in price. With Loomis Sayles Strategic Income Fund, we have maximum flexibility to find these opportunities in a wide range of markets, both domestically and overseas. We also have the freedom to purchase high-yielding stocks that can help to enhance the shareholder's total return."
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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