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Mutual Funds

Here’s Hoping You Held on to Loomis Sayles Bond

This member of the Kiplinger 25 has rebounded.

After a brutal 2008 in which Loomis Sayles Bond (symbol LSBRX) shed 22.1%, the fund is again near the top of the charts. Its stakes in medium- and low-quality corporate debt -- the same bonds that bled red ink for shareholders in 2008 -- have fueled terrific gains in 2009 as the market has shifted to rewarding riskier assets.

But lead managers Dan Fuss and Kathleen Gaffney don’t see much more appreciation potential in corporate bonds, so they have been trimming the fund’s best-performing positions. With the proceeds, they are building a stash of dry powder and diversifying the fund’s currency exposure by adding Canadian, Australian and Norwegian debt. The fund sports a current yield of 5.63%.

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