Loomis Sayles Limited Term Government and Agency Fund Class N (LGANX)

Overview

This investment fund is primarily focused on allocating its resources in assets that are issued or ensured by the U.S. government, its agencies, or instrumentalities, dedicating at least 80% of its net assets towards these types of investments. It displays flexibility in its investment approach by considering securities that either match or exceed the credit quality of the U.S. government's long-term debt. In addition, the fund diversifies its portfolio by investing in a variety of financial instruments including investment grade corporate notes and bonds, collateralized loan obligations, and other securities.

Products and Services

• U.S. Government-Issued or Guaranteed Securities: The backbone of the fund's investment strategy, focusing on securities which are either issued or backed by the full faith and credit of the United States government.

These include Treasury bills, notes, bonds, and securities from agencies or instrumentalities of the U.S. government. This concentration affords the fund a high level of stability and security, given the creditworthiness of the U.S. government.

• Corporate Notes and Bonds: In pursuit of diversification and potential yield enhancement, the fund invests in investment grade corporate notes and bonds.

These investments are selected based on their credit quality, with a focus on companies that have a stable financial outlook and the ability to meet their debt obligations. This provides an opportunity to achieve higher returns compared to solely government-issued securities.

• Collateralized Loan Obligations (CLOs): The fund allocates a portion of its assets to CLOs, which are securities backed by a pool of debt, typically corporate loans.

These investments offer higher yields than more traditional fixed-income securities, albeit with a higher risk profile. CLOs can provide diversified exposure to the corporate loan market.

• Zero-Coupon Bonds: To capitalize on interest rate movements, the fund may invest in zero-coupon bonds, which are sold at a discount and do not pay periodic interest.

The attraction of these bonds lies in their potential price appreciation and their ability to be bought at a price lower than their face value, offering a lump-sum payment at maturity.

• Securities Issued Under Rule 144A: The fund may invest in private placement securities that are tradable among qualified institutional buyers under Rule 144A of the Securities Act of 1933.

This enables the fund to access a broader range of securities, potentially enhancing yield and diversification, but also involves a greater degree of risk due to the limited marketability of these securities.

• Asset-Backed Securities (ABS) and Mortgage-Related Securities: To further diversify its portfolio, the fund invests in ABS and various mortgage-related securities, including mortgage dollar rolls.

These investments are backed by real estate assets or other types of collateral, offering returns that are influenced by the performance of the underlying assets. They provide a way to gain exposure to the real estate market and the consumer debt market, respectively.