Loomis Sayles Bond Fund (LSBRX)

Find Loomis Sayles Bond Fund (LSBRX) review. This best mutual fund provides yield for income.

Bond funds or fixed income funds are typically less volatile than stock funds or equity funds. Bond funds also pay good yield or dividend regularly. This Loomis Sayles Bond Fund also has a monthly distribution. More details about this 4 stars rated fund by Morningstar can be found below.

Loomis Sayles Bond Fund (Ticker: LSBRX)

As the multisector bond fund, the Loomis Sayles Bond Fund seeks to achieve high total investment return through a combination of current income and capital appreciation using long-term and risk-adjusted investment strategy to beat its bond index, Barclays Capital US Government/Credit Bond Index. The Loomis Sayles fund invests majority of its asset in investment-grade fixed-income securities. It may also invest some of its assets in lower rated fixed income securities or junk bonds (<35%), preferred stocks (<20%), foreign debts including emerging markets (<20%), and Canadian issuers’ securities.

With its total net asset of $20 billion, this fund is managed by lead manager, Daniel J. Fuss, since 1989. Dan Fuss has managed this fund since its inception. He joined Loomis Sayles in 1976. As described above, this fund distributes a yield of 5.41% per year. This fund distribution is done monthly. The fund annual expense is 0.93%. This fund is part of no load mutual fund, this means there is no front end sales load and no deferred sales load.

If you have a brokerage account, you can start investing in this fund with $2,500 initial investment. For IRA account, please check with your account administrator or IRA brokerage provider for details. This Loomis Sayles Bond can be bought from 102 brokerages across the country like T. Rowe Price, Fidelity Retail FundsNetwork NTF, Dreyfus NTF, Ameriprise SPS Advantage, TIAA-CREF Brokerage Services, etc.

LSBRX Fact Details

• Fund Inception Date: May 1991
• Ticker Symbol: LSBRX (Retail Class or R-Class)
• CUSIP: 543495832
• Beta (3yr): 1.94
• Rank in category: 13 (ytd)
• Category: Intermediate term bond
• Distribution: Monthly
• Yield: 2.21%
• Expense Fee: 0.91%
• Capital Gains: If necessary, there will be capital gains on December and March
• Number of Years Up: 13 years
• Number of Years Down: 1 year

For the fund performance, this Bond fund has returned 11.66% over the past year and 7.91% over the past five years. The fund has its best return in 2009 with 36.83% return and the worst return in 2008 with -22.12% return. This LSBRX fund has 4 stars rating from Morningstar. The fund annual turnover rate is 27% which is low compare to its category (133.83%).

• Year 2017: 3.88% (YTD)
• Year 2016: 8.40%
• Year 2015: -7.06%
• Year 2014: 4.49%
• Year 2013: 5.52%

As of April 2011, this intermediate term bond fund consists of 643 bonds. The average maturity is 10.18 years and the weighted average duration is 6.08 years. The top 10 sectors distribution include high yield credit (23.15%), investment grade credit (22.73%), non-US dollar excluding CAD (20.79%), convertibles (10.66%), Canadian dollar (9.09%), preferred / equity (3.56%), US treasury (2.39%), MUNI (1.03%), bank loans (0.31%), and MBS (0.19%).Top 5 currency distributions are US dollar (70%), Canadian dollar (9%), New Zealand dollar, Norwegian Krone, and Euro. Top 5 holdings include Canadian government CAD, US Treasury bond, Norwegian government, Intel Corp CVT, and Ford Motor Co CVT.

new: Top Performer Diversified Bond Mutual Funds 2012

Investing in mutual fund involves variety of investment risks such as:

• Interest rate risk – interest rate rise and bond prices fall, investor may lose principal
• Credit risk – high yield bond price is more volatile due to market and credit risk
• Economic risk – foreign investment has greater risk due to global, political and currency risks

This fund is also available in many other classes such as institutional class (LSBDX), and admin class (LBFAX). These classes may provide lower expense fees.

Detail about the fund information and fund performance can be check on my Kip 25 best fund page.

Morningstar analysts has ranked this bond mutual fund with gold rating. For year 2011, this fund has an annualized return of 3.48%. As of April 2012, the top 4 sectors in its assets are corporate bond (51.88%), convertible (16.58%), non-U.S. government (9.92%), and preferred (3.09%). The average effective duration is 5.54 years and the average effective maturity is 10.09 years. The average credit quality is BB.

Loomis Sayles Bond Fund (LSBRX) was part of Kiplinger's best mutual fund before.