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Subtle Differences Separate These 2 Fine Bond Funds

Despite their differences, Loomis Sayles Bond and Loomis Sayles Strategic Income both demand patience and a long-term perspective, says Morningstar's Sarah Bush.

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Sarah Bush: Gold-rated Loomis Sayles Bond and Silver-rated Loomis Sayles Strategic Income share much in common, but differences in their risk profile could have an impact on their long-term results.

Both funds are managed by the same well-resourced team, anchored by bond fund legend Dan Fuss and veterans Elaine Stokes and Matt Eagan. They both take a contrarian, often value-based approach to investing and aren't afraid to hold significant stakes in high-yield credit and non-dollar currencies. This approach and the strong team has led to strong results over the long term, although both funds are vulnerable to bouts of underperformance when credit markets turn south or when non-dollar currencies struggle.

Sarah Bush does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.