Loomis Sayles Investment Grade Bond A (LIGRX) Fund

Bond fund can be essential for short term as well as long term investor. For short term investor, it can provide regular income and higher yield than regular saving account or certificate of deposit (CD). For long term investor, it can provide more stability to its long term portfolio asset. Although bond fund is riskier than traditional saving account, it is certainly less risky than equity fund. Choosing the right fund may be important to protect your investment capital. This next fund, Loomis Sayles Investment Grade Bond fund, is also bond fund with consistent performance for the past decade. It also has a well known management team. Details about this fund are described below.

Loomis Sayles Investment Grade Bond A (Ticker: LIGRX)

As part of Natixis Funds, Loomis Sayles Investment Grade Bond fund seeks high total investment return through a combination of capital appreciation and current income. This fund invest mainly in investment grade fixed income securities or bonds. It may invest <10% of assets in lower rated fixed income securities or non investment grade bonds. It may also invest any portion of its assets in Canadian issuers’ securities and < 20% in foreign issuers’ obligations including emerging market sector.

LIGRX Fund Details
Loomis Sayles Investment Grade Bond
  • Fund Inception Date: December 1996
  • Ticker Symbol: LIGRX
  • CUSIP: 543487136
  • Beta (3yr): 1.79 
  • Rank in category (YTD):  2
  • Category: Intermediate-Term Bond
  • Dividend Yield: 4.53%
  • Distribution frequency: Monthly
  • Sales Load: 4.50%
  • Effective Duration: 6.27 years
  • Average Maturity: 9.61 years
  • Number of holdings: 551
  • Capital Gains: 0.05% (last distributed in May 2011)
  • Number of Years Up: 13 years
  • Number of Years Down: 1 year
updated on June 6th, 2011

This fund is managed by Daniel J. Fuss (Dan Fuss) and Kathleen Gaffney since its inception in December 1996. During his 14 years managing LIGRX, Dan Fuss has brought this fund with 13 years in positive territory and 1 year in negative territory. The best fund performance occurred in 2009 with 26.59% return and the worst performance was in 2008 with -11.58% return. Morningstar has rated this LS bond fund with 4 stars rating. The fund currently has 4.83% year-to-date return. The fund has returned 7.90% over the past 5-years and 8.69% over the past 10 years. The fund expense ratio is 0.81% per year, it is slightly lower than the average of the category which is 0.94%.

This top rated taxable bond fund is available to any new investor with brokerage accounts and IRA account. To invest in this Loomis Sayles fund, investor or trader will need $2,500 initial balance to fund this purchase in brokerage account. You will need $1,000 initial investment in IRA account. Then, investor can invest $100 min for subsequent investment in both accounts. This fund has 0.25% 12b1 fee and 4.50% front-end sales load fee. The fund turnover rate is 25%. Its benchmark is Barclays Capital US Government/ Credit Bond Index. 

Investor can also select other classes of this Loomis Sayles fund such as Class B (LGBBX), Class C (LGBCX), Admin Class (LIGAX), Institutional Class or Y Shares (LSIIX). The LSIIX ticker has only 0.56% annual expense ratio and there is no sales load. Please check with your brokerage for details about this fund. The LIRGX fund can be purchased from 98 brokerages, include JP Morgan, Merrill Lynch, Edward Jones, Td Ameritrade Inc, Schwab Institutional, Pershing Fund Center, E Trade Financial, Royal Alliance, Raymond James, Firstrade, etc.

The top countries distributions of this LS fund are United States (72.12%), Canada (10.69%), Norway (3.59%), New Zealand (2.03%) and Australia (2.01%). The top 10 holdings of this fund as of March 2011 are Canadian Government, U.S. Treasury Bond, New Zealand Government, Intel Corporation, Deutsche Telekom Int Fin, Norwegian Government and Goldman Sachs Group Inc. As of May 2011, the fund is allocated as follows: investment grade credit (47.84%), non-US dollar excluding CAD (15.96%), Canadian dollar (10.21%), high yield credit (9.37%), convertibles (4.18%), asset backed securities (4.07%), commercial mortgage backed securities (3.54%), cash & equivalent (3.3%), and US agency (0.97%).

Investing in this bond fund also involves risks:
  • Interest Rate Risk: This bond fund may lose value as interest rates rise
  • High Yield Risk: High Yield bond are subject to market and credit risk. This high yield bond also may lack liquidity compare to investment grade bond.
  • Foreign Issuers Risk: Foreign investments involve additional risks such as economic, political and currency fluctuation risks.
Disclosure: No Position


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