Mutual Funds
Bond Fund

The Bond Fund seeks to generate superior, long-term, risk-adjusted investment performance relative to the Barclays Capital US Government/Credit Bond Index

Portfolio Management

Matt Eagan, CFA
Dan Fuss, CFA, CIC
Kathleen Gaffney, CFA
Elaine Stokes

Total Fund Assets (as of 10/31/2011): $19.8 billion

Lipper Category: Corporate Debt Funds BBB-Rated

Morningstar Category: Multisector Bond

Primary Benchmark: Barclays Capital US Government/Credit Index

Goal: Seeks high total investment return

Strategy Highlights
  • Value driven, bottom up, opportunistic approach
  • Allocations to out of benchmark securities provide value and diversification
  • Long term investment horizon
Investment Strategy
  • Invests primarily in investment grade, fixed income securities
  • May invest up to 35% of assets in lower-rated fixed income securities
  • May invest up to 20% of its assets in equity securities such as common stocks and preferred stocks (with up to 10% of its assets in common stocks)
  • May invest up to 20% of assets in foreign securities, including emerging markets
  • May invest any portion of its assets in securities of Canadian issuers
About Risk
  • Mutual funds that invest in bonds can lose their value as interest rates rise and bond prices usually fall; investor can lose principal
  • High yield securities are subject to a high degree of market and credit risk. In addition, the secondary market for these securities may lack liquidity, which in turn may adversely affect the value of these securities and that of the Fund
  • Foreign investments involve special risks including greater economic, political and currency fluctuation risks, which may be even greater in emerging markets
  • Securities issued by US Government agencies are not insured, and may not be guaranteed by the US Government
FUND FACTS as of 10/31/2011
Bond Fund (R-Class)
Ticker LSBRX
Fund Inception 5/16/1991
Class Inception 12/31/1996
CUSIP 543495832
Minimum Initial Investment1 $2,500
Gross Expense Ratio2 0.94%
Net Expense Ratio2 0.94%
Net Asset Value as of 10/31/2011 14.38
30-Day SEC Yield as of 10/31/20114.82%
Unsubsidized 30-Day SEC Yield as of 10/31/20114.82%
Fact SheetProspectus
CommentaryFund Report
Fund Application 

Bond Fund (I-Class)
Ticker LSBDX
Fund Inception 5/16/1991
Class Inception 5/16/1991
CUSIP 543495840
Minimum Initial Investment1 $100,000
Gross Expense Ratio2 0.64%
Net Expense Ratio2 0.64%
Net Asset Value as of 10/31/2011 14.43
30-Day SEC Yield as of 10/31/20115.11%
Unsubsidized 30-Day SEC Yield as of 10/31/20115.11%
Fact SheetProspectus
CommentaryFund Report
Fund Application 

Bond Fund (Admin-Class)
Ticker LBFAX
Fund Inception 5/16/1991
Class Inception 1/2/1998
CUSIP 543495857
Minimum Initial Investment1 No Minimum
Gross Expense Ratio2 1.21%
Net Expense Ratio2 1.20%
Net Asset Value as of 10/31/2011 14.34
30-Day SEC Yield as of 10/31/20114.56%
Unsubsidized 30-Day SEC Yield as of 10/31/20114.56%
Fact SheetProspectus
CommentaryFund Report
Fund Application 
Unsubsidized 30-day SEC yield is calculated using the gross expenses of the fund. Gross expenses do not include any fee waivers or reimbursement.

Investment return and principal value may fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance data quoted represents past performance and current returns may be higher or lower. Past performance is no guarantee of future results.
1 For further detail regarding Minimum Initial Investment, please see the fund prospectus.

2 Unlike net expense ratio, gross expense ratio does not reflect any potential reimbursement/waiver of expenses, if any, as stated in the most recent Fund prospectus. Fund expenses and expense reductions are subject to change. Expense reductions are contractual and are set to expire 1/31/2012. Investors should consult the most recent prospectus for more detailed information.

The Barclays Capital US Government/Credit Bond Index includes Treasurys (public obligations of the US Treasury that have remaining maturities of more than one year) and agencies (publicly issued debt of US government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the US government) as well as other publicly issued investment grade corporate and foreign debentures that meet specified maturity, liquidity, and quality requirements. Indexes are unmanaged, do not incur fees and it is not possible to invest directly in an index.
Before investing, consider the fund's investment objectives, risks, charges, and expenses. You may obtain a prospectus or a summary prospectus, if available, containing this and other information on this web site. Read it carefully.