Fixed Income Mutual Funds
OVERVIEW PERFORMANCE MONTHLY CHARACTERISTICS QUARTERLY CHARACTERISTICS
Intermediate Duration Bond Fund
Effective 5/28/10, the fund, formerly named the Intermediate Duration Fixed Income Fund, changed its name and investment strategy.

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

Portfolio Management

Neil A. Burke
Richard G. Raczkowski
Cliff V. Rowe, CFA

Total Fund Assets (as of 07/31/2010): $32.5 million

Lipper Category: Intermediate Investment Grade Debt Funds

Morningstar Category: Intermediate-Term Bond

Primary Benchmark: Barclays Capital US Intermediate Government/Credit Bond Index

Goal: Seeks above-average total return

Strategy Highlights
  • Fund aims to add value through strong security selection and sector allocation while seeking to minimize risk
  • Emphasis on fundamental credit research to add value versus Treasurys in favorable market environments
  • Looks to add value from all major sectors of the fixed income markets including mortgage-, commercial- and asset-backed securities
Investment Strategy
  • At purchase securities must be rated investment grade
  • Weighted average duration of the portfolio is generally 2-5 years, and is managed within a close range to the index
  • Fund is 100% US dollar
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 the value of the fund
  • Foreign investments involve special risks including greater economic, political and currency fluctuation risks, which may be even greater in emerging markets
FUND FACTS as of 07/31/2010
Intermediate Duration Bond Fund (R-Class)
Ticker LSDRX
Fund Inception 1/28/1998
Class Inception 5/28/2010
CUSIP 543495725
Minimum Initial Investment1 $2,500
Gross Expense Ratio2 1.01%
Net Expense Ratio2 0.65%
Net Asset Value as of 07/31/2010 10.44
30-Day SEC Yield as of 07/31/2010
  Prospectus
Commentary Fund Report
Fund Application  

Intermediate Duration Bond Fund (I-Class)
Ticker LSDIX
Fund Inception 1/28/1998
Class Inception 1/28/1998
CUSIP 543495709
Minimum Initial Investment1 $2,000,000
Gross Expense Ratio2 0.68%
Net Expense Ratio2 0.40%
Net Asset Value as of 07/31/2010 10.43
30-Day SEC Yield as of 07/31/2010 2.73%
Fact Sheet Prospectus
Commentary Fund Report
Fund Application  
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; Class I shares are set to expire 1/31/2011, Class R on 1/31/2012 . Investors should consult the most recent prospectus for more detailed information.

The Barclays Capital US Intermediate Government/Credit Bond Index includes securities which have a remaining maturity of 1-10 years and includes Treasuries (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 non-corporate 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.

Natixis Distributors, L.P. (fund distributor) and Loomis, Sayles & Company L.P. are affiliated.