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5 Mutual Funds That Belong in Any Retirement Portfolio

Skilled management will steer your money toward a nice nest egg

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Mutual Fund #5: Loomis Sayles Bond (LSBRX)

funds-retirement-funds-lsbrxIt is clear that many retail investors are warming up to the idea of allocating more assets into the equity market — but let’s not forget that diversified portfolios need bonds to add balance. Loomis Sayles Bond (LSBRX) remains a remarkable fund in the hands of an experienced leader.

Dan Fuss leads a team that oversees this $21.9 billion multi-sector bond fund. This is not a plain-vanilla bond fund — you will find corporate bonds mixed alongside debt from Canada and Norway. About 20% of the fund is in high-yield debt currently, with 20% allocated to non-U.S. dollar-denominated bonds. Recent top holdings include: Canadian government (2.5%), Intel (3.25%), Norway government bond (5%) and Ford (4.25%).

This eclectic mix works quite well, with the fund up 5.5% in 2013, compared to many bond funds that were flat or slightly down last year. Over the long haul, the fund has been a winner as well, growing at an annualized 7.5% over the past decade and placing in the top 7% of its Morningstar category over the period.

The fund features an attractive 4.7% yield over the trailing 12 months and the current 30-day SEC yield is 3.2%. Recently, the fund’s bond portfolio had an average maturity of 8 years and a duration of 5.1 years. This is a fund that is a bit unconventional, yet continues to be a compelling choice for those looking for solid active management in a fixed income portfolio.

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Bill Wysor is the editor of The Relevant Investor. As of this writing he was long VHCOX, FLPSX, FPACX and LSBRX.

Article printed from InvestorPlace Media,

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