"We've added two bond fund's to our buy list: PIMCO Total Return (PTTDX) and Loomis Sayles Bond (LSBRX)," says Mark Salzinger.

The editor of The No-Load Fund Investor explains, "We favor both funds for many of the same reasons: both have experienced, top-flight management supported by robust credit-research staffs." Here's his reviews.

"Both bond funds have performed stronlgy over the long-term and during recent market turbulence. And each has a relatively open mandate that allows their respective management teams the flexilibity to scoop up attractive bonds from diverse sectors of the bond market in pursuit of both capital appreciation and income.

"PIMCO Total Return is the world's biggest bond fund, and second large mutual fund of any stripe, with $128 billion in assets. The fund's popularity is a product of the outstanding track record and enormous reputation of its manager, Bill Gross.

"The fund's 10-year annualized return of 6% puts the fund in the top 5% of all intermediate-term bond funds over that time.

"PIMCO Total is a reliable core bond fund holding for most any investors. Gross' approach is both deliberate and opportunistic. He builds the portfolio around PIMCO's macroeconomic outlook, which is developed on a firm-wide bases and looks out three to five years.

"This outlook is honed and refined quarterly, and specific shorter-term impacts to interest rates, credit and economic factors are considered and used to shape individual security selection.

"The fund invests mainly in investment grade bonds of intermediate maturity. That means it typically does not make significant interest rate bets. Despite this moderate sensibility, Gross has made several moves that should bolster returns.

"One, PIMCO Total Return has avoided Treasuries and TIPS, which Gross thinks provide poor protection from inflation at current levels. The fund has also benefited from exposure to foreign interest rates and currencies.

"Gross has stated his preference for the 'compelling value' of high quality mortgages, which have attractive yields relative to Treasuries. And, the fund has emphasized short duration (that is, lower interest-rate sensitivity).

"Loomis Sayles Bond is co-managed by Dan Fuss and Kathleen Gaffney. The $17.9 billion fund is run in a 'go-anywhere' fashion, and they are not afraid to make significant bets on interest rates or sectors of the economy or the bond market.

"Their portfolio's broad reach makes it reasonably well-diversified, though, and an able core bond holding despite its harder-charging approach.

"Performance has been outstanding. The fund's 10-year annualized return of 8.5% outpaces the Lehman Brothers Aggregate Bond index by 2.7% annual, an enormous disparity in bond returns.

"The fund's performance over the past year has been solid (4.1% return) but has lagged its more conservative peers, owing to its narrow holdings of Treasuries.

"On the surface, the fund's average maturity (recently 13.8 years) and duration (7 years) expose it to significantly more interest rate risk than PIMCO Total Return. However, the managers favor securities tha thave low correlations to the broader bond market and less sensitivity to flucatuations in interest rates.

"Storng research capabilities allows Fuss and Gaffney to identify securities they believe to be undervalued, and the fund's broad mandate allows them to invest wherever such opportunities arise.

"While we are impressed with Fuss and Gaffney's long-term record and aparent managerial acument, much of the fund's appeal to us stems from its current positioning, with major stakes in investment-grade corporate and high-yield bonds."