Loomis Sayles Strategic Income Fund Class C (NECZX)

Overview

The fund is designed to cater to investors looking for income generation from their investment portfolio with a keen focus on diversification across various types of income-producing securities. By investing predominantly in a mix of U.S. corporate bonds, convertible securities, foreign debt instruments, including emerging markets, and U.S. government securities, the fund aims to achieve a balanced risk-reward profile. It does not shy away from including below investment grade securities, colloquially known as "junk bonds", within its portfolio, indicating a higher risk tolerance for potentially greater rewards. Importantly, the fund’s strategy involves significant exposure to foreign currency transactions, underscoring its global approach to income investing.

Products and Services

• U.S. Corporate Bonds

These are debt securities issued by corporations based in the United States. The fund invests in these financial instruments as they typically offer higher yields compared to government securities, making them an attractive option for income-seeking investors.

• Convertible Securities

Convertible securities are a type of investment that can be converted into a predetermined number of another type, usually that of the issuer's common stock. The fund incorporates convertible securities in its portfolio to take advantage of their hybrid nature, offering potential upside in the issuer's equity performance while seeking to provide income through regular interest or dividend payments.

• Foreign Debt Instruments (Including Emerging Markets)

This component of the fund's portfolio includes bonds and other forms of debt issued by foreign governments or corporations. By investing in foreign debt instruments, especially those in emerging markets, the fund aims to capitalize on the higher growth potential of these regions and diversify its income sources geographically.

• Related Foreign Currency Transactions

The fund engages in foreign currency transactions in connection with its investments in foreign debt instruments. These transactions are intended to hedge against currency risk or to profit from fluctuations in the foreign exchange markets, thereby potentially enhancing the fund’s returns.

• U.S. Government Securities

Investments in U.S. government securities form a crucial part of the fund's strategy, offering a relatively safer option compared to corporate bonds and securities within the portfolio. These securities, issued by the U.S. government, provide a stable income stream and serve to balance the fund’s overall risk profile.