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Loomis Sayles High Income Fund
Fund focus
Loomis Sayles High Income Fund invests at least 65% of assets in lower-quality, high yielding bonds that the managers believe offer the potential for both generous yields and capital appreciation.
What you should know
While lower-rated, higher-yielding securities can provide potential for higher returns, they are also 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 goal is to identify attractive total rate of return opportunities in the global high-yield fixed-income sector. Security selection is the primary driver of performance. Bottom-up investment evaluation drives portfolio investments and the resulting sector allocation. The portfolio managers seek to diversify the fund's holdings to reduce risk, generally investing in holdings across many industries. We believe the resulting portfolio is well diversified and positioned to generate superior long-term investment performance when compared to the benchmark.
Portfolio Highlights
| Information is as of 10/31/08* |
| High Yield Credit |
57.57% |
| Convertibles |
11.57% |
| Non-US Dollar (ex CAD) |
11.15% |
| Cash and Equivalents |
9.92% |
| Investment Grade Credit |
5.38% |
| Preferred/Equity |
1.72% |
| Asset-backed securities |
0.90% |
| Canadian Dollar |
0.82% |
| Bank Loans |
0.59% |
| US Agency |
0.37% |
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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| Matthew Egan |
Kathleen Gaffney |
Elaine Stokes |
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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