Natixis Funds Trust II

N-CSRS 1 dncsrs.htm NATIXIS FUNDS TRUST II Natixis Funds Trust II

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-00242

Natixis Funds Trust II

(Exact name of Registrant as specified in charter)


399 Boylston Street, Boston, Massachusetts		02116
(Address of principal executive offices)		(Zip code)

Coleen Downs Dinneen, Esq.

Natixis Distributors, L.P.

399 Boylston Street

Boston, Massachusetts 02116

(Name and address of agent for service)

Registrant’s telephone number, including area code: (617) 449-2810

Date of fiscal year end: December 31

Date of reporting period: June 30, 2008

Item 1.

Reports to Stockholders.

The Registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:

LOGO

EQUITY FUNDS

SEMIANNUAL REPORT

June 30, 2008

CGM Advisor Targeted Equity Fund

Hansberger International Fund

Harris Associates Focused Value Fund

Harris Associates Large Cap Value Fund

Vaughan Nelson Small Cap Value Fund

Natixis U.S. Diversified Portfolio

BlackRock Investment Management

Harris Associates

Loomis, Sayles & Company

LOGO

TABLE OF CONTENTS

Management Discussion and Performance page 1

Portfolio of Investments page 22

Financial Statements page 35

CGM ADVISOR TARGETED EQUITY FUND

PORTFOLIO PROFILE

Objective:

Seeks long-term growth of capital through investments in equity securities of companies whose earnings are expected to grow at a faster rate than the overall U.S. economy

Strategy:

Generally invests in a focused portfolio of common stocks of large-cap companies

Inception Date:

November 27, 1968

Manager:

G. Kenneth Heebner

Symbols:


Class A		NEFGX
Class B		NEBGX
Class C		NEGCX
Class Y		NEGYX

What You Should Know:

The fund invests in a small number of securities, which may result in greater volatility than more diversified funds. Growth stocks can be more sensitive to market movements because their prices are based in part on future expectations. The fund may invest in foreign securities that involve risks not associated with domestic securities.

Management Discussion

Amid a worsening credit crisis, flat consumer spending and a looming recession, U.S. equities struggled during the first half of 2008.

In this troubled environment, CGM Advisor Targeted Equity Fund emphasized companies doing business globally, which helped reduce the fund’s risk in pursuit of capital growth. For the six months ended June 30, 2008, the fund returned -5.07%, based on the net asset value of Class A shares, after reinvesting $0.44 in capital gains and less than $0.01 in dividends. Consequently, we were gratified that the fund outperformed its benchmark, the S&P 500 Index, which returned -11.91% for the period, and the -10.38% average return on Morningstar’s Large Growth category.

FUND’S COMMITMENT TO GLOBAL BUSINESSES SUPPORTED PERFORMANCE

Throughout the period, the fund remained fully invested in anticipation of continued healthy growth in the global economy. While the U.S. economy was weakened by a serious decline in housing prices and new construction, as well as slower consumer spending, the fund emphasized companies whose fundamentals were positively impacted by favorable trends in foreign countries. We also invested in ADRs (American Depositary Receipts) of some foreign companies. An ADR makes it easier for foreign stocks to trade on U.S. stock exchanges.

Energy was the fund’s largest sector allocation, increasing from 20% of the portfolio at the beginning of the year to over 30% of assets as of June 30, 2008. During the period, the fund established a new position in Texas-based Fluor Corporation, a leading provider of engineering, construction and maintenance services to energy companies worldwide. Late in the quarter, we also added some railroad stocks, including CSX Corporation and Burlington Northern Santa Fe Corporation, both of which are benefiting from increased demand for exports of grain and coal.

Funding for these purchases came from sales of some financial stocks, including Bank of America, Wells Fargo and MetLife, as well as from the sale of Monsanto, a multinational agricultural biotechnology holding, and pharmaceutical giant Johnson & Johnson.

ENERGY STOCKS AND CREDIT CARD ISSUES CONTRIBUTE POSITIVE RESULTS

Although most stocks in the fund lost ground with the market, Petroleo Brasileiro (better known as Petrobras), Halliburton, and MasterCard climbed, reflecting positive earnings growth and prospects. Petrobras, Brazil’s state-run oil company, announced that its estimated recoverable reserves at the offshore Tupi oil field range from five to eight billion barrels, which would make it one of the biggest oil discoveries in the last 20 years. Halliburton, a major oil service provider, benefited from continued strength in oil exploration and development globally, as well as an improved outlook for exploration and development in North America. MasterCard, one of the two leading transaction processors to the credit card industry, continued to report solid earnings growth, which helped support its share price.

SEVERAL ISSUES DETRACTED FROM PERFORMANCE

Ford Motor Company, Apple, and Prudential Financial were the fund’s worst performers for the period. Ford was hurt by declining sales of SUVs and trucks, as gasoline prices reached new highs. Although company fundamentals remained solid, Apple witnessed a drop in share price due to weak conditions in the personal computer market. We continue to hold both issues. However, we sold Prudential, which declined on unfavorable developments in the financial industry.

OUTLOOK FOR GLOBAL ECONOMY REMAINS FAVORABLE

Going forward, we expect the global economy to continue to benefit from strength in developing markets. At the same time, we believe U.S. businesses may benefit as the weak dollar makes goods and services cheaper in other parts of the world. As always, our strategy is to focus on a small number of companies we believe offer superior growth potential.

CGM ADVISOR TARGETED EQUITY FUND

Investment Results through June 30, 2008

PERFORMANCE IN PERSPECTIVE

The charts comparing the fund’s performance to an index provide a general sense of how it performed. The fund’s total return for the period shown below appears with and without sales charges and includes fund expenses and fees. An index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged and does not have expenses that affect the results. It is not possible to invest directly in an index. Investors would incur transaction costs and other expenses if they purchased the securities necessary to match the index.

Growth of a $10,000 Investment in Class A Shares

LOGO

Average Annual Total Returns — June 30, 2008



	6 MONTHS		1 YEAR		5 YEARS		10 YEARS		SINCE INCEPTION
Class A (Inception 11/27/68)
Net Asset Value¹	-5.07	%	14.07	%	16.39	%	5.83	%	—
With Maximum Sales Charge²	-10.51		7.48		15.01		5.20		—

Class B (Inception 2/28/97)
Net Asset Value¹	-5.52		13.08		15.53		5.03		—
With CDSC³	-10.05		8.08		15.30		5.03		—

Class C (Inception 9/1/98)
Net Asset Value¹	-5.44		13.22		15.53		—		6.77	%
With CDSC³	-6.34		12.22		15.53		—		6.77

Class Y (Inception 6/30/99)
Net Asset Value¹	-5.03		14.29		16.75		—		5.68



COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS		SINCE CLASS C INCEPTION⁶		SINCE CLASS Y INCEPTION⁶
S&P 500 Index⁴	-11.91	%	-13.12	%	7.58	%	2.88	%	4.69	%	0.88	%
Morningstar Large Growth Fund Avg.⁵	-10.38		-6.02		7.81		2.61		4.68		0.43

All returns represent past performance and do not guarantee future results. Periods of less than one year are not annualized. Share price and return will vary, and you may have a gain or loss when you sell your shares. All results include reinvestment of dividends and capital gains. Current returns may be higher or lower than those noted. For performance current to the most recent month-end, visit www.funds.natixis.com. Class Y shares are only available to certain investors, as outlined in the prospectus.

The table and graph do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

PORTFOLIO FACTS



	% of Net Assets as of
FUND COMPOSITION	6/30/08	12/31/07
Common Stocks	97.7	95.8
Short-Term Investments and Other	2.3	4.2

	% of Net Assets as of
TEN LARGEST HOLDINGS	6/30/08	12/31/07
Petroleo Brasileiro SA, ADR	10.1	9.1
Schlumberger Ltd.	6.5	6.6
Halliburton Co.	5.4	4.5
MasterCard, Inc., Class A	5.4	5.2
Chevron Corp.	5.2	—
Apple, Inc.	5.1	5.4
Banco Itau Holding Financeira SA, ADR	5.0	5.6
ConocoPhillips	4.9	—
Air Products & Chemicals, Inc.	4.9	—
Barrick Gold Corp.	4.9

	% of Net Assets as of
FIVE LARGEST INDUSTRIES	6/30/08	12/31/07
Oil, Gas & Consumable Fuels	20.2	9.1
Energy Equipment & Services	12.0	11.1
Chemicals	9.2	10.7
Computers & Peripherals	7.8	5.4
Road & Rail	6.9	—

Portfolio holdings and asset allocations will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS


Share Class	Gross Expense Ratio		Net Expense Ratio
A	1.17	%	1.17	%
B	1.92		1.92
C	1.93		1.93
Y	0.90		0.90

NOTES TO CHARTS

¹	Does not include a sales charge.

²	Includes the maximum sales charge of 5.75%.

Performance for Class B shares assumes a maximum 5.00% contingent deferred sales charge (“CDSC”) applied when you sell shares, which declines annually between years 1-6 according to the following schedule: 5, 4, 3, 3, 2, 1, 0%. Class C share performance assumes a 1.00% CDSC applied when you sell shares within one year of purchase.

⁴	S&P 500 Index is an unmanaged index of U.S. common stocks.

⁵	Morningstar Large Growth Fund Average is the average performance without sales charges of funds with similar investment objectives, as calculated by Morningstar, Inc.

⁶	The since-inception comparative performance figures shown for each Class of fund shares are calculated as follows: Class C from 9/1/98; and Class Y from 7/1/99.

HANSBERGER INTERNATIONAL FUND

PORTFOLIO PROFILE

Objective:

Seeks long-term growth of capital

Strategy:

Invests in common stocks of small-, mid- and large-cap companies located outside the United States. Assets are invested across developed and emerging markets

Inception Date:

December 29, 1995

Managers:

Growth:

Trevor Graham

Barry A. Lockhart

Patrick H. Tan

Thomas R.H. Tibbles

Value:

Ronald Holt

Lauretta Reeves

Symbols:


Class A		NEFDX
Class B		NEDBX
Class C		NEDCX

What You Should Know:

Foreign securities involve risks not associated with domestic securities, such as currency fluctuations, differing political and economic conditions and different accounting standards. Growth stocks can be more sensitive to market movements because their prices are based in part on future expectations. Value stocks may fall out of favor and underperform the overall market during any given period.

Management Discussion

The credit crunch that shook world financial markets in 2007 continued into 2008. Although very few markets were positive during the first half, rising energy and materials prices provided some support in the second quarter. However, the six-month period was one of the worst on record for world stock prices.

For the six months ended June 30, 2008, Hansberger International Fund’s total return was -9.30% based on the net asset value of Class A shares, after reinvesting $0.42 in capital gains and $0.04 in dividends. By comparison, the fund’s benchmarks, the MSCI EAFE Index and the MSCI ACWI ex USA Index, returned -10.58% and -9.84%, respectively. The average performance of the fund’s Morningstar peer group, the Foreign Large Blend category, was -10.71%. All returns are expressed in U.S. dollars. Neither the fund nor its benchmarks include U.S. stocks, and the Morningstar category has only limited exposure to domestic equities.

Two teams of Hansberger’s international equity specialists manage the fund. One focuses on value and the other seeks growth potential.

VALUE TEAM DID WELL IN EMERGING MARKETS AND MATERIALS

Materials and resource stocks in the emerging markets region contributed to the value segment’s performance. The segment’s top performer during the period was Evraz Group in Russia, one of the world’s largest steel producers, which benefited from higher prices for steel, iron and coke. Its acquisition of Oregon Steel in 2007 also added to the firm’s profits. Brazilian utility CEMIG (Companhia Energetica de Minas Gerais) was the second best performer. The stock has a high dividend and the company is benefiting from an improved regulatory environment in Brazil.

The financial sector has led world markets in a downward spiral since last year. One of the segment’s worst performers was HBOS PLC, the holding company for Bank of Scotland. The largest mortgage lender in the U.K., HBOS operates banking and insurance companies in Australia as well as the U.K. The worldwide credit crunch caused investors to flee, but the value team believes it will emerge as one of the strongest players once the credit crisis clears. Siemens AG, a European industrial company with operations in 190 countries, also proved disappointing. European industrials in general have done poorly recently, but the value team believes Siemens will emerge as a strong performer in time.

HANSBERGER’S GROWTH TEAM SEEKS SECULAR GROWTH COMPANIES

Secular growth companies seek to create their own opportunities rather than waiting for market trends to turn their way. These are often innovative companies seeking affordable solutions to such universal problems as finding renewable, clean sources of energy. Denmark’s Vestas Wind Systems, a specialist in equipment that uses wind power to generate electricity, is one such company; it has been a strong performer for the fund for several years. A more recent acquisition is Q-Cells, a rapidly growing manufacturer of photovoltaic modules. Both stocks did well during the period, countering trends in other sectors.

However, not even the best ideas lead to consistently strong stock prices. The growth team had disappointing results with Renewable Energy Corp, as this and other solar stocks were caught in a general sell-off recently. Although the stock fell in price, the growth team is holding it in anticipation of good results long term. Another example is Foxconn, one of the world’s leading manufacturers of handsets, supplying components for Motorola, Nokia and Sony. The company had a difficult first quarter and the stock declined, but the growth team believes it is a quality manufacturer and is anticipating a turnaround.

OUTLOOK IS FOR DECELERATING GLOBAL GROWTH

Hansberger expects to see continued global growth, but at a slower pace, especially in developed markets. Characteristics we look for are attractive valuations, strong balance sheets, and the potential to generate growth even in difficult times through innovation and restructuring.

HANSBERGER INTERNATIONAL FUND

Investment Results through June 30, 2008

PERFORMANCE IN PERSPECTIVE

Growth of a $10,000 Investment in Class A Shares⁷

LOGO

Average Annual Total Returns — June 30, 2008⁷



	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
CLASS A (Inception 12/29/95)
Net Asset Value¹	-9.30	%	-6.41	%	16.47	%	7.94	%
With Maximum Sales Charge²	-14.50		-11.80		15.10		7.31

CLASS B (Inception 12/29/95)
Net Asset Value¹	-9.66		-7.07		15.61		7.16
With CDSC³	-14.06		-11.16		15.38		7.16

CLASS C (Inception 12/29/95)
Net Asset Value¹	-9.64		-7.09		15.61		7.15
With CDSC³	-10.52		-7.91		15.61		7.15

COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
MSCI EAFE Index⁴	-10.58	%	-10.15	%	17.16	%	6.23	%
MSCI ACWI ex USA Index⁵	-9.84		-6.20		19.42		7.73
Morningstar Foreign Large Blend Fund Avg.⁶	-10.71		-9.04		15.90		5.28

All results represent past performance and do not guarantee future results. Periods of less than one year are not annualized. Share price and return will vary, and you may have a gain or loss when you sell your shares. All results include reinvestment of dividends and capital gains. Current returns may be higher or lower than those shown. For performance current to the most recent month-end, visit www.funds.natixis.com.

The table and graph do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

PORTFOLIO FACTS



	% of Net Assets as of
FUND COMPOSITION	6/30/08	12/31/07
Common Stocks	98.0	97.3
Preferred Stock	1.8	1.3
Short-Term Investments and Other	0.2	1.4

TEN LARGEST HOLDINGS	6/30/08	12/31/07
Nintendo Co., Ltd.	2.5	1.9
Petroleo Brasileiro SA, ADR	2.2	2.2
Saipem SpA	1.9	1.6
Infosys Technologies, Ltd., Sponsored ADR	1.6	1.3
Roche Holding AG	1.6	0.8
Banco Santander Central Hispano SA	1.6	1.7
OAO Gazprom, Sponsored ADR	1.4	0.6
UniCredito Italiano SpA	1.4	1.6
Adidas AG	1.4	1.9
Axa	1.4	1.5

FIVE LARGEST COUNTRIES	6/30/08	12/31/07
Japan	14.0	14.0
United Kingdom	12.1	13.0
France	9.5	9.9
Switzerland	8.4	8.9
Germany	8.2	6.6

Portfolio holdings and asset allocations will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS


Share Class	Gross Expense Ratio	Net Expense Ratio
A	1.45%	1.45%
B	2.20	2.20
C	2.20	2.20

NOTES TO CHARTS

¹	Does not include a sales charge.

²	Includes the maximum sales charge of 5.75%.

⁴	Morgan Stanley Capital International Europe Australasia and Far East Index (MSCI EAFE Index) is an unmanaged index designed to measure developed market equity performance, excluding the United States and Canada.

⁵	Morgan Stanley Capital International All Countries World Index ex USA (MSCI ACWI ex USA Index) is an unmanaged index designed to measure equity market performance in developed and emerging markets, excluding the United States.

⁶	Morningstar Foreign Large Blend Fund Average is the average performance without sales charges of funds with similar investment objectives, as calculated by Morningstar, Inc.

⁷	Fund performance has been increased by expense reductions/reimbursements, without which performance would have been lower.

HARRIS ASSOCIATES FOCUSED VALUE FUND

PORTFOLIO PROFILE

Objective:

Seeks long-term capital appreciation

Strategy:

Focuses on 25 to 30 stocks of mid- to large-cap U.S. companies

Inception Date:

March 15, 2001

Managers:

Robert M. Levy

Michael J. Mangan

Symbols:


Class A		NRSAX
Class B		NRSBX
Class C		NRSCX

What You Should Know:

The fund invests in a small number of securities, which may result in greater volatility than more diversified funds. Value stocks may fall out of favor with investors and underperform the overall market during any given period.

Management Discussion

Stocks began 2008 with a sharp descent and then rallied as the Federal Reserve Board moved aggressively to address the credit crisis. However, the rally turned around late in the period as renewed credit and inflation concerns triggered another selloff.

Despite the fund’s emphasis on the weak financial sector and its lack of exposure to energy, Harris Associates Focused Value Fund kept pace with the benchmark for most of the first half of 2008. However, as most sectors fell sharply in June, the fund trailed its benchmark for the period as a whole. For the six months ended June 30, 2008, the fund returned -15.52% based on the net asset value of Class A shares, after reinvesting $0.15 in capital gains. The fund’s benchmark, the S&P 500 Index, returned -11.91% for the period, and the average return on the funds in Morningstar’s Large Blend category was -11.18%.

HEALTHCARE AND INDUSTRIAL COMPANIES SHOWED SOLID GAINS

Shares of Tenet Healthcare rose in the first half of 2008 as a turnaround in operations took hold. Favorable prices realized on the sale of some underperforming hospitals also reduced the company’s debt levels. Increasing volumes and better results in weaker regions of the country further contributed to the rise in the price of the stock. PerkinElmer, a maker of life sciences products, had been selling at a discount to its competitors, even though its balance sheet and prospects seemed strong. Recent increases in the price of the stock reflect widening recognition of the company’s improved results, but we continue to believe the current price still does not fully reflect the company’s outlook. Conglomerate ITT was a leader among the fund’s industrial holdings. The company is focusing on areas of strength, including defense electronics, and it has solid growth prospects in fluid technology, motion and flow control.

NO ENERGY STOCKS, STRONG EMPHASIS ON FINANCIALS HURT PERFORMANCE

Energy was the period’s strongest sector, but the fund had no exposure to it. We continue to believe that energy stock valuations are unreasonably high and that increased awareness by businesses and consumers may start to cut into demand.

Our sizeable weighting in financial stocks also hurt the fund’s performance. Decliners in the portfolio included such leading companies as Merrill Lynch, Morgan Stanley and Legg Mason. We capitalized on price weakness to add to the fund’s stake in Merrill because we believe their ownership interests in money management firms could attract buyers as a shift in investor sentiment works its way through the system. All three companies remain in the portfolio.

SOME STOCKS’ POTENTIAL FAILED TO TRANSLATE INTO GAINS

Economic concerns drove down shares of Starwood Hotels despite its expanding hotel inventory. Starwood franchises its properties to others, collecting fees while avoiding infrastructure costs. Technology leader Intel is the fund’s largest position. We have been adding to it for some time and we still like the stock, but it has faced selling pressure this year with no news to account for it. We remain optimistic about Intel’s long-term outlook. Micron Technology stock has been volatile, reflecting fears that the economic slowdown might shrink demand for memory chips. Micron’s quarterly financial results are trending higher and we believe its strong finances position the firm to capture additional market share if less well-capitalized competitors weaken.

We believe that volatility in recent quarters may have produced opportunities to acquire good companies at attractive valuations. The fund’s portfolio now stands at a steep discount to our assessment of the companies’ long-term growth potential, suggesting that good gains may be possible once current pressures ease. We think the credit and housing crises will work their way through the system in time and that the market will improve as conditions stabilize.

HARRIS ASSOCIATES FOCUSED VALUE FUND

Investment Results through June 30, 2008

PERFORMANCE IN PERSPECTIVE

Growth of a $10,000 Investment in Class A Shares⁷

LOGO

Average Annual Total Returns — June 30, 2008⁷



	6 MONTHS		1 YEAR		5 YEARS		SINCE INCEPTION
CLASS A (Inception 3/15/01)
Net Asset Value¹	-15.52	%	-26.59	%	3.46	%	2.83	%
With Maximum Sales Charge²	-20.36		-30.82		2.24		2.00

CLASS B (Inception 3/15/01)
Net Asset Value¹	-15.93		-27.13		2.66		2.06
With CDSC³	-20.05		-30.13		2.42		2.06

CLASS C (Inception 3/15/01)
Net Asset Value¹	-15.81		-27.09		2.69		2.08
With CDSC³	-16.63		-27.69		2.69		2.08

COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		SINCE INCEPTION⁶
S&P 500 Index ⁴	-11.91	%	-13.12	%	7.58	%	3.18	%
Morningstar Large Blend Fund Avg.⁵	-11.18		-12.27		7.64		3.33

All returns represent past performance and do not guarantee future results. Periods of less than one year are not annualized. Share price and return will vary, and you may have a gain or loss when you sell your shares. All results include reinvestment of dividends and capital gains. Current returns may be higher or lower than those shown. For performance current to the most recent month-end, visit www.funds.natixis.com.

The table and graph do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

PORTFOLIO FACTS



	% of Net Assets as of
FUND COMPOSITION	6/30/08	12/31/07
Common Stocks	98.7	100.0
Short-Term Investments and Other	1.3	0.0

	% of Net Assets as of
TEN LARGEST HOLDINGS	6/30/08	12/31/07
Intel Corp.	7.7	9.0
PerkinElmer, Inc.	6.0	5.2
National Semiconductor Corp.	6.0	6.1
Robert Half International, Inc.	6.0	4.9
Dell, Inc.	5.9	1.1
Teradata Corp.	5.3	1.3
Virgin Media, Inc.	5.2	5.2
Tiffany & Co.	4.9	2.7
Hospira, Inc.	4.7	4.9
Starwood Hotels & Resorts Worldwide, Inc.	4.5	—

	% of Net Assets as of
FIVE LARGEST INDUSTRIES	6/30/08	12/31/07
Semiconductors & Semiconductor Equipment	15.9	21.7
Capital Markets	12.0	5.0
Computers & Peripherals	10.9	2.4
Life Sciences Tools & Services	8.5	9.2
Specialty Retail	7.7	2.7

Portfolio holdings and asset allocations will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS


Share Class	Gross Expense Ratio⁸	Net Expense Ratio⁹
A	1.39%	1.39%
B	2.14	2.14
C	2.14	2.14

NOTES TO CHARTS

¹	Does not include a sales charge.

²	Includes the maximum sales charge of 5.75%.

⁴	S&P 500 Index is an unmanaged index of U.S. common stocks.

⁵	Morningstar Large Blend Fund Average is the average performance without sales charges of funds with similar investment objectives, as calculated by Morningstar, Inc.

⁶	The since-inception comparative performance figures shown are calculated from 4/1/01.

⁷	Fund performance has been increased by expense reductions/reimbursements, without which performance would have been lower.

⁸	Before reductions and reimbursements.

⁹	After reductions and reimbursements. Expense reductions are contractual and are set to expire on 4/30/09.

HARRIS ASSOCIATES LARGE CAP VALUE FUND

PORTFOLIO PROFILE

Objective:

Seeks opportunities for long-term capital growth and income

Strategy:

Invests primarily in common stock of large- and mid-cap companies in any industry

Inception Date:

May 6, 1931

Managers:

Edward S. Loeb

Michael J. Mangan

Diane L. Mustain

Symbols:


Class A		NEFOX
Class B		NEGBX
Class C		NECOX
Class Y		NEOYX

What You Should Know:

Value stocks may fall out of favor with investors and underperform the overall market during any given period.

Management Discussion

After slumping early in the year, stocks staged a spring rally that was cut short in mid-May as the ongoing credit crisis and record energy prices dimmed prospects for the economy. Harris Associates Large Cap Value Fund posted disappointing returns for the period, with most of the shortfall occurring amid June’s market turbulence.

For the six months ended June 30, 2008, the fund’s return was -14.98% based on the net asset value of Class A shares, after reinvesting less than $0.01 in dividends. The fund’s results trailed its benchmark and its Morningstar peer group. The Russell 1000 Value Index returned -13.57%, while the average return on the funds in Morningstar’s Large Blend category was -11.18%.

ABSENCE OF ENERGY OVERWHELMED POSITIVE RESULTS IN OTHER SECTORS

Coming into June, the fund’s returns were stronger than its benchmark, although both were negative. However, by the end of June, shares in most sectors had fallen sharply. Energy was the exception. The absence of energy companies in the portfolio was the primary reason for the fund’s underperformance in the first half of 2008. The fund’s industrials stocks were strong, and good stock selection in financials was a net positive despite the weakness in the sector as a whole.

LEADERS WERE IN DIVERSE SECTORS

Renowned railroad company Union Pacific (UP) continued to be a strong contributor. Shippers have found railroads more cost efficient than trucks during periods of high energy costs, and UP is also still benefiting from restructuring started three years ago. Pharmaceutical company Schering-Plough was another strong holding during the period. We had sold Schering following negative reports on the firm’s cholesterol drugs, but lowered valuations subsequently led us to repurchase shares, which soon recovered. We increased the fund’s stake in Home Depot when the slump in home construction caused shares to decline. A subsequent rebound put this holding in positive territory for the period. Comcast rose modestly, reflecting its ability to maintain market share in the face of strong competition. Medtronic, a medical technology company, also added to returns as investors grew more confident of its business prospects.

FINANCIALS AND SOME TECHNOLOGY STOCKS DECLINED

Merrill Lynch was the fund’s worst performer during the period. Our investment in Merrill is based on the value we see in their non-investment banking businesses, including private wealth management and their partial ownership of BlackRock Advisors and Bloomberg. Other leading financial firms in the portfolio, including Bank of New York Mellon, Morgan Stanley and American Express also declined, in value, but less than the sector overall.

In technology, a deteriorating competitive position led us to sell communications leader Motorola at a loss. Shares of Intel, one of the fund’s largest commitments, declined in the first few days of January. We expanded the fund’s position and shares subsequently stabilized. Intel is a bellwether company and we believe its earlier weakness may reflect concerns about the economy. Shares of cruise operator Carnival Corp. fell as shrinking travel volumes and high fuel prices pressured earnings.

PORTFOLIO STANDS AT DEEP DISCOUNT TO POTENTIAL VALUE

By this time next year we believe that credit problems will have diminished and the market will react favorably. Our stock selection process continues to lead us away from energy companies. We think investors have focused on the sector’s momentum despite diminishing fundamental support for current price levels, especially as the economy slows and individuals and businesses take steps to curb usage.

Based on our analysis, stocks in the fund’s portfolio as a group are trading at the widest discount to potential future value that we have seen in years. Assuming the current cycle reverses, we believe the fund’s holdings have substantial upside potential.

HARRIS ASSOCIATES LARGE CAP VALUE FUND

Investment Results through June 30, 2008

PERFORMANCE IN PERSPECTIVE

Growth of a $10,000 Investment in Class A Shares⁷

LOGO

Average Annual Total Returns — June 30, 2008⁷



	6 MONTHS		1 YEAR		5 YEARS		10 YEARS		SINCE INCEPTION
CLASS A (Inception 5/6/31)
Net Asset Value¹	-14.98	%	-22.22	%	3.45	%	-0.14	%	—
With Maximum Sales Charge²	-19.85		-26.69		2.23		-0.73		—

CLASS B (Inception 9/13/93)
Net Asset Value¹	-15.26		-22.80		2.66		-0.88		—
With CDSC³	-19.50		-26.66		2.30		-0.88		—

CLASS C (Inception 5/1/95)
Net Asset Value¹	-15.28		-22.83		2.69		-0.89		—
With CDSC³	-16.13		-23.60		2.69		-0.89		—

CLASS Y (Inception 11/18/98)
Net Asset Value¹	-14.81		-21.97		3.79		—		0.61	%

COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS		SINCE CLASS Y INCEPTION⁶
Russell 1000 Value Index⁴	-13.57	%	-18.78	%	8.92	%	4.91	%	5.17	%
Morningstar Large Blend Fund Avg.⁵	-11.18		-12.27		7.64		3.32		3.47

All returns represent past performance and do not guarantee future results. Periods of less than one year are not annualized. Share price and return will vary, and you may have a gain or loss when you sell your shares. All results include reinvestment of dividends and capital gains. Current returns may be higher or lower than those shown. For performance current to the most recent month-end, visit www.funds.natixis.com. Class Y shares are only available to certain investors, as outlined in the prospectus.

The table and graph do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

PORTFOLIO FACTS



	% of Net Assets as of
FUND COMPOSITION	6/30/08	12/31/07
Common Stocks	97.3	96.5
Short-Term Investments and Other	2.7	3.5

	% of Net Assets as of
TEN LARGEST HOLDINGS	6/30/08	12/31/07
Intel Corp.	6.5	6.9
Dell, Inc.	5.4	4.5
Hewlett-Packard Co.	5.1	5.0
Carnival Corp.	4.7	4.3
Merrill Lynch & Co., Inc.	4.6	—
Bank of New York Mellon Corp.	4.5	4.9
Schering-Plough Corp.	4.2	—
Union Pacific Corp.	4.2	5.5
Capital One Financial Corp.	3.6	3.6
McDonald’s Corp.	3.5	—

	% of Net Assets as of
FIVE LARGEST INDUSTRIES	6/30/08	12/31/07
Capital Markets	16.3	10.2
Computers & Peripherals	10.5	10.9
Hotels, Restaurants & Leisure	9.9	7.4
Semiconductors & Semiconductor Equipment	8.9	9.4
Media	8.6	—

Portfolio holdings and asset allocations will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS


Share Class	Gross Expense Ratio⁸	Net Expense Ratio⁹
A	1.28%	1.28%
B	2.04	2.04
C	2.04	2.04
Y	0.91	0.91

NOTES TO CHARTS

¹	Does not include a sales charge.

²	Includes the maximum sales charge of 5.75%.

⁴	Russell 1000 Value Index is an unmanaged index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

⁵	Morningstar Large Blend Fund Average is the average performance without sales charges of funds with similar investment objectives, as calculated by Morningstar, Inc.

⁶	The since-inception comparative performance figures shown for Class Y are calculated from 12/1/98.

⁷	Fund performance has been increased by expense reductions/reimbursements, without which performance would have been lower.

⁸	Before reductions and reimbursements.

⁹	After reductions and reimbursements. Expense reductions are contractual and are set to expire on 4/30/09.

VAUGHAN NELSON SMALL CAP VALUE FUND

PORTFOLIO PROFILE

Objective:

Seeks capital appreciation

Strategy:

Invests in small-cap companies with a focus on absolute return, using a bottom-up, value-oriented investment process

Inception Date:

December 31, 1996

Managers:

Chris D. Wallis

Scott J. Weber

Symbols:


Class A		NEFJX
Class B		NEJBX
Class C Class Y		NEJCX NEJYX

What You Should Know:

Investing in small-cap stocks carries special risk, including narrower markets, limited financial and management resources, less liquidity and greater volatility than large company stocks. Value stocks may fall out of favor with investors and underperform the overall market during any given period.

Management Discussion

Strategies we initiated more than a year ago helped insulate Vaughan Nelson Small Cap Value Fund from the worst impacts of the ongoing credit crisis. Good stock selection, an emphasis on economically vigorous sectors, and avoiding the most troubled areas of financial services helped the fund hold up well during one of the most difficult periods ever for stock prices.

For the six months ended June 30, 2008, the fund’s total return was -1.36% based on the net asset value of Class A shares, after reinvesting $0.03 in capital gains. For the same period, the Russell 2000 Value Index, the fund’s benchmark, returned -9.84%, while the average performance of funds in Morningstar’s Small Blend category was -8.93%.

FOCUSED ON AREAS OF MARKET STRENGTH

Markets that were volatile early in the year quieted after the Federal Reserve Board made a series of aggressive rate cuts and unprecedented policy moves designed to restore liquidity to the financial markets. However, renewed credit fears and soaring energy costs brought fresh waves of volatility in May, and weakness accelerated as the period closed. Amid early indications of impending credit problems last year, we took decisive action to reduce the fund’s exposure to financial services, where prospects for improvement appeared slight. Our value-focused research team led us to emphasize industrial and energy issues. These positions, together with strong performance in select technology issues, keyed the fund’s strong relative returns.

ENERGY COMPANIES WERE TOP PERFORMERS

Most of the fund’s top performers were energy companies. Consistent with our established discipline, we sold Continental Resources and Petrohawk, two independent exploration companies, when their valuations surpassed our targets; we also trimmed other energy holdings as prices rose. Encore Acquisition Company, a small exploration and development company, benefited from publicity on its holdings in North Dakota. With the dollar weak and overseas growth exceeding that in the U.S., the fund also benefited from several smaller industrial and manufacturing companies. Lincoln Electric Holdings enjoyed strong worldwide demand for its welding products used in road, bridge and pipeline projects. Shares of aerospace provider DRS Technologies rose when the company agreed to be acquired. Iron ore producer Cleveland-Cliffs also rose in value and we sold it at a profit.

CONSUMER AND FINANCIAL ISSUES WERE WEAK

Tempur-Pedic International, makers of high-end mattresses and pillows, fell as economic pressures constrained consumer spending. We are using price declines to expand the fund’s holdings in this well-run company. High raw materials costs squeezed margins at garden products marketer Scotts Miracle-Gro, whose sales also suffered from weak consumer spending, but we continue to like the stock. Affiliated Managers Group, owner of several investment management companies, declined along with the weak financial sector. We have added to the fund’s position in Affiliated. Negative sentiment toward financials hurt casualty insurer HCC Insurance, but we believe the company has an attractive business and solid underwriting practices and we added to holdings on weakness.

CONTINUED VOLATILITY MAY YIELD OPPORTUNITIES AS ECONOMY RECOVERS

We believe near-term conditions are likely to remain challenging, although we think housing prices will eventually stabilize, restoring consumer confidence. This should also benefit banks whose losses have mounted amid defaulting mortgages.

A positive side effect of the market’s weakness is that our research team is uncovering good companies at what appear to be attractive valuations. We have trimmed the number of stocks in the portfolio in order to focus commitments on those we especially favor. Two long-term themes will guide us: As the world develops and industrializes, demand for resources and infrastructure will continue to expand. We will also remain focused on smaller energy firms that can increase reserves through acquisitions and discoveries rather than speculating on energy prices.

VAUGHAN NELSON SMALL CAP VALUE FUND

Investment Results through June 30, 2008

PERFORMANCE IN PERSPECTIVE

Growth of a $10,000 Investment in Class A Shares⁶

LOGO

Average Annual Total Returns — June 30, 2008⁶



	6 MONTHS		1 YEAR		5 YEARS		10 YEARS		SINCE INCEPTION
Class A (Inception 12/31/96)
Net Asset Value¹	-1.36	%	-4.18	%	13.63	%	6.42	%	—
With Maximum Sales Charge²	-7.04		-9.69		12.30		5.79		—

Class B (Inception 12/31/96)
Net Asset Value¹	-1.74		-4.90		12.78		5.62		—
With CDSC³	-6.65		-9.65		12.53		5.62		—

Class C (Inception 12/31/96)
Net Asset Value¹	-1.74		-4.90		12.79		5.62		—
With CDSC³	-2.72		-5.85		12.79		5.62		—

Class Y (Inception 8/31/06)
Net Asset Value¹	-1.13		-3.82		—		—		8.11	%

COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS		SINCE CLASS Y INCEPTION⁷
Russell 2000 Value Index⁴	-9.84	%	-21.63	%	10.02	%	7.47	%	-5.84	%
Morningstar Small Blend Fund Avg.⁵	-8.93		-17.03		10.62		6.99		-0.77

The table and graph do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

PORTFOLIO FACTS



	% of Net Assets as of
FUND COMPOSITION	6/30/08	12/31/07
Common Stocks	83.9	95.4
Exchange Trade Funds	3.0	—
Short-Term Investments and Other	13.1	4.6

	% of Net Assets as of
TEN LARGEST HOLDINGS	6/30/08	12/31/07
iShares Russell 2000 Value Index Fund	3.0	—
Encore Acquisition Co.	2.7	—
Vectren Corp.	2.0	1.8
Sybase, Inc.	1.9	1.9
Lincoln Electric Holdings, Inc.	1.9	1.6
Affiliated Managers Group, Inc.	1.9	2.3
Raymond James Financial, Inc.	1.9	2.3
Superior Energy Services, Inc.	1.8	1.0
Pediatrix Medical Group, Inc.	1.8	1.6
Airgas, Inc.	1.8	1.5

	% of Net Assets as of
FIVE LARGEST INDUSTRIES	6/30/08	12/31/07
Oil, Gas & Consumable Fuels	7.8	8.9
Machinery	6.2	6.8
Health Care Providers & Services	5.6	5.2
Capital Markets	5.3	7.3
Insurance	4.9	5.9

Portfolio holdings and asset allocations will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS


Share Class	Gross Expense Ratio⁸		Net Expense Ratio⁹
A	1.58	%	1.46	%
B	2.32		2.21
C	2.33		2.21
Y	1.19		1.19

NOTES TO CHARTS

¹	Does not include a sales charge.

²	Includes the maximum sales charge of 5.75%.

⁴	Russell 2000 Value Index is an unmanaged index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

⁵	Morningstar Small Blend Fund Average is the average performance without sales charges of funds with similar investment objectives, as calculated by Morningstar, Inc.

⁶	Fund performance has been increased by expense reductions/reimbursements, without which performance would have been lower.

⁷	The since-inception comparative performance figures shown are calculated from 9/1/06.

⁸	Before reductions and reimbursements.

⁹	After reductions and reimbursements. Expense reductions are contractual and are set to expire 4/30/09.

NATIXIS U.S. DIVERSIFIED PORTFOLIO

PORTFOLIO PROFILE

Objective:

Seeks long-term growth of capital

Strategy:

Features growth and value investments through a diversified portfolio of complementary equity investment disciplines provided by specialized money managers

Inception Date:

July 7, 1994

Subadvisors:

BlackRock Investment Management, LLC

Harris Associates, L.P.

Loomis, Sayles & Company, L.P.

Symbols:


Class A		NEFSX
Class B		NESBX
Class C Class Y		NECCX NESYX

What You Should Know:

Growth stocks can be more sensitive to market movements because their values are based on future expectations. Value stocks may fall out of favor with investors and underperform the overall market. Small-cap stocks carry special risks, including narrower markets, limited financial and management resources, less liquidity and greater volatility.

Management Discussion

Concerns about an economic downturn, rising inflation and tight credit markets took a toll on stocks during the first half of 2008. Although most stock indexes produced negative returns, growth stocks declined less than value stocks, and small- and mid-cap shares generally did better than large-cap shares.

Each of Natixis U.S. Diversified Portfolio’s four segments is managed using a different discipline, providing investors with exposure to a wide spectrum of large-, medium- and small-cap stocks using both growth and value investment styles. The BlackRock segment seeks long-term growth of capital in companies of any size, with an emphasis on those with capitalizations greater than $2 billion. The segment managed by Harris Associates invests primarily in common stocks of large- and mid-cap companies that the manager believes are trading at a substantial discount to their “true business value.” Loomis Sayles manages two portfolio segments. One invests in mid-cap growth stocks, and the other focuses on small-cap value stocks.

For the six months ended June 30, 2008, the portfolio returned -9.81% based on the net asset value of Class A shares, after reinvesting $0.42 in capital gains. The fund outperformed the -11.91% return of the S&P 500 Index, but underperformed the -3.90% return of the S&P MidCap 400 Index. The portfolio also underperformed the -8.48% return of the Dow Jones Wilshire 4500 Index, but outperformed the -10.38% average return of the funds in Morningstar’s Large Growth category.

BLACKROCK POSITIVE ON LONG-TERM OUTLOOK FOR GLOBAL MARKETS

This segment’s emphasis on materials was a positive for the period, but it was underweight in energy relative to the benchmark, and energy was one of the best performing sectors. Despite its relatively small position in energy, one of the segment’s top performers was CONSOL Energy, which owns and operates coal mines that benefited from strong global demand. In healthcare, Celgene Corporation, a biotechnology company, added value, although, a medical equipment company, Hologic was a disappointment. The segment’s relatively large position in industrials dampened return, as General Electric Corporation fell short of expectations. In information technology, NVIDIA did poorly. Hologic, General Electric and NVIDIA remain in the portfolio because BlackRock believes they have the potential to do well over time. Among business services companies, Visa Inc. was one of the best performers in the segment, benefiting from the growing global use of credit cards. BlackRock’s near-term outlook is cautious, but they remain constructive on many global markets, especially in the Asia-Pacific region.

HARRIS ASSOCIATES’ OUTLOOK IS POSITIVE FOR VALUE-ORIENTED INVESTORS

Most energy companies produced strong returns during the first half of 2008, but Harris Associates elected to de-emphasize energy based on their belief that energy stocks are overpriced, and that there are better opportunities elsewhere in the market. Two technology holdings – Motorola and Sun Microsystems – were among the worst performers for the period and both stocks were sold. Intel also fell short of expectations, as the market reacted negatively to the company’s fourth-quarter earnings announcement. However, Harris Associates believes investors’ reaction to Intel’s announcement may have been overdone, and the stock remains in the segment. Largely because of the credit crisis, Merrill Lynch hurt the segment’s performance, but it remains in the portfolio because Harris Associates believes it is undervalued.

Stock selection, especially in industrials and healthcare, was the biggest contributor to performance. Lack of exposure to telecommunications, an underperforming area, was also beneficial. The best performing stocks in the segment were Union Pacific, Schering-Plough and Pulte Homes. Union Pacific continues to report solid earnings, and Harris Associates thinks the strong pricing environment (combined with an aggressive pursuit of operational improvements) should allow the company to expand margins. Recent flooding in the Midwest caused

NATIXIS U.S. DIVERSIFIED PORTFOLIO

Management Discussion

network disruptions that might impact earnings, but Harris Associates has confidence in the company’s management team. Schering-Plough’s revenues beat forecasts on almost all its key products, and the firm’s gross margin was higher than expected. Prescriptions for some of Schering-Plough’s drugs have stabilized, which could be a positive indicator for the company. Pulte Homes was a strong contributor to performance early in the year, but Harris Associates sold the position when they felt conditions in the housing market were deteriorating.

As the second half unfolds, this segment’s portfolio stands at a steep discount to Harris Associates’ assessment of the long-term growth potential of the underlying companies.

LOOMIS SAYLES’ MID CAP PORTFOLIO BENEFITED FROM RISING ENERGY AND COMMODITY PRICES

The most important change to this segment during the six-month period was a major increase in the energy sector, which moved from an equal weight to a substantial overweight relative to the benchmark. Driven by soaring commodity prices, investments in energy and the materials and processing sectors had the biggest positive effect on the segment. The segment’s holdings in MasterCard were a bright spot in the otherwise depressed financials sector. Healthcare stocks were disappointing, as were consumer discretionary stocks, which suffered as consumer spending declined.

As a result of profit-taking, some of the segment’s strongest performers in 2007 were among the weakest holdings early in 2008. These included solar companies, certain energy companies, futures exchanges and wireless telecommunications companies. Specific companies included FCStone Group, a commodities broker that came under pressure due to perceived exposure to credit risk; SunPower, a solar power company that corrected sharply with solar stocks in general in the first quarter; and Foster Wheeler, a global engineering and construction company that sold off sharply after reporting disappointing earnings. All three positions were sold. The segment’s top-performing stocks for the six-months included Alpha Natural Resources, a coal producer that supplies utility companies; Petrohawk Energy Corporation, which has a large inventory of natural gas reserves in the United States; and Cleveland-Cliffs, a global mining company with assets primarily in the United States, although it is expanding into Australia and Brazil.

LOOMIS SAYLES’ SMALL CAP VALUE PORTFOLIO FAVORED INNOVATIVE COMPANIES

This segment entered the period with slightly underweight positions (relative to the benchmark) in consumer and energy stocks. The underweight in energy was offset, in part, by its emphasis on diversified utilities with significant oil and gas divisions. For example, MDU Resources, an electric utility with significant oil and gas holdings, was a positive performer. In energy, Tetra Technologies, a diversified energy services company, benefited from increasing demand for its services. Among the segment’s healthcare positions, CorVel Corporation, a provider of medical cost containment and managed care services, benefited from the increasing focus on trimming healthcare costs. In transportation, Wabtec, a worldwide provider of parts and services to the rail industry, benefited from strong spending on rail transit cars, as high gasoline prices drove many commuters to mass transportation.

Some of the segment’s positive return was offset by its conservative positioning in the energy sector, which featured diversified utilities with significant oil and gas divisions. These stocks performed well but were less volatile than pure energy stocks and gains were not as strong. Finance was one of the weakest sectors, but the segment had a low exposure to credit-sensitive financials like banks and savings and loans. One disappointment in this sector was National Financial Partners Corporation, which acquires and operates financial planning firms. thinkorswim Canada, which provides investor education and a fast-growing online options brokerage service, reversed strong performance in the fourth quarter of 2007. We sold both positions. We took profits on GeoEye early in the year and later sold the remaining shares of this commercial satellite imagery company after some negative earnings news hurt the price of the stock. Declining consumer confidence weighed on the segment’s consumer discretionary holdings. Borders Group, a national book retailer, and Pier 1 Imports, a home accessories retailer, both declined. Borders was sold.

NATIXIS U.S. DIVERSIFIED PORTFOLIO

Investment Results through June 30, 2008

PERFORMANCE IN PERSPECTIVE

Growth of a $10,000 Investment in Class A Shares

LOGO

Average Annual Total Returns — June 30, 2008



	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
CLASS A (Inception 7/7/94)
Net Asset Value¹	-9.81	%	-7.83	%	10.67	%	5.48	%
With Maximum Sales Charge²	-14.99		-13.14		9.38		4.86
CLASS B (Inception 7/7/94)
Net Asset Value¹	-10.11		-8.48		9.85		4.69
With CDSC³	-14.51		-12.90		9.58		4.69
CLASS C (Inception 7/7/94)
Net Asset Value¹	-10.14		-8.51		9.85		4.69
With CDSC³	-11.02		-9.40		9.85		4.69
CLASS Y (Inception 11/15/94)
Net Asset Value¹	-9.67		-7.59		11.14		5.96

COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
S&P 500 Index⁴	-11.91	%	-13.12	%	7.58	%	2.88	%
Dow Jones Wilshire 4500 Index⁵	-8.48		-11.52		12.45		5.95
S&P MidCap 400 Index⁶	-3.90		-7.34		12.61		9.84
Morningstar Large Growth Fund Avg.⁷	-10.38		-6.02		7.81		2.61

All returns represent past performance and do not guarantee future results. Periods of less than one year are not annualized. Share price and return will vary, and you may have a gain or loss when you sell your shares. All results include reinvestment of dividends and capital gains. Current returns may be higher or lower than those shown. For performance current to the most recent month-end, visit www.funds.natixis.com. Class Y shares are only available to certain investors, as outlined in the prospectus.

The table and graph do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

PORTFOLIO FACTS



	% of Net Assets as of
FUND COMPOSITION	6/30/08	12/31/07
Common Stocks	97.1	98.0
Short-Term Investments and Other	2.9	2.0

	% of Net Assets as of
TEN LARGEST HOLDINGS	6/30/08	12/31/07
Intel Corp.	1.9	2.1
Dell, Inc.	1.3	1.2
Hewlett-Packard Co.	1.2	1.6
Merrill Lynch & Co., Inc.	1.2	0.7
McDonald's Corp.	1.2	1.1
Carnival Corp.	1.1	1.1
Bank of New York Mellon Corp.	1.1	1.3
Schering-Plough Corp.	1.0	—
Union Pacific Corp.	1.0	1.4
Broadridge Financial Solutions, Inc.	1.0	1.1

	% of Net Assets as of
FIVE LARGEST INDUSTRIES	6/30/08	12/31/07
Capital Markets	6.8	4.2
Oil, Gas & Consumable Fuels	5.6	1.5
Energy Equipment & Services	5.1	3.1
Computers & Peripherals	4.7	5.0
IT Services	4.3	2.4

Portfolio holdings and asset allocations will vary

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS


Share Class	Gross Expense Ratio⁸		Net Expense Ratio⁹
A	1.47	%	1.40	%
B	2.21		2.15
C	2.22		2.15
Y	1.12		1.12

NOTES TO CHARTS

¹	Does not include a sales charge.

²	Includes the maximum sales charge of 5.75%.

⁴	S&P 500 Index is an unmanaged index of U.S. common stocks.

⁵	Dow Jones Wilshire 4500 Index is an unmanaged index of 4,500 mid- and small-sized companies.

⁶	S&P MidCap 400 Index is an unmanaged index of U.S. mid-sized companies.

⁷	Morningstar Large Growth Fund Average is the average performance without sales charges of funds with similar investment objectives, as calculated by Morningstar, Inc.

⁸	Before reductions and reimbursements.

⁹	After reductions and reimbursements. Expense reductions are contractual and are set to expire on 4/30/09.

ADDITIONAL INFORMATION

The views expressed in this report reflect those of the portfolio managers as of the dates indicated. The managers’ views are subject to change at any time without notice based on changes in market or other conditions. References to specific securities or industries should not be regarded as investment advice. Because the funds are actively managed, there is no assurance that they will continue to invest in the securities or industries mentioned.

For more complete information on any Natixis Fund, contact your financial professional or call Natixis Funds and ask for a free prospectus, which contains more complete information, including charges and other ongoing expenses. Investors should consider a fund’s objective, risks and expenses carefully before investing. This and other fund information can be found in the prospectus. Please read the prospectus carefully before investing.

PROXY VOTING INFORMATION

A description of the funds’ proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the funds’ website at www.funds.natixis.com; and on the Securities and Exchange Commission’s (SEC) website at www.sec.gov. Information regarding how the funds voted proxies relating to portfolio securities during the 12-month period ended June 30, 2008 is available from the funds’ website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

The funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.


NOT FDIC INSURED		MAY LOSE VALUE		NO BANK GUARANTEE

UNDERSTANDING FUND EXPENSES

As a mutual fund shareholder, you incur different costs: transaction costs, including sales charges (loads) on purchases and certain exchange fees and ongoing costs, including management fees, distribution fees (12b-1 fees), and other fund expenses. In addition, each fund assesses a minimum balance fee of $20 on an annual basis for accounts that fall below the required minimum to establish an account. Certain exemptions may apply. These costs are described in more detail in the funds’ prospectus. The examples below are intended to help you understand the ongoing costs of investing in the funds and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table of each class of fund shares shows the actual account values and actual fund expenses you would have paid on a $1,000 investment in the fund from January 1, 2008 through June 30, 2008. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example $8,600 account value divided by $1,000 = 8.60) and multiply the result by the number in the Expenses Paid During Period column as shown below for your class.

The second line in the table of each class of fund shares provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid on your investment for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown reflect ongoing costs only, and do not include any transaction costs, such as sales charges or exchange fees. Therefore, the second line in the table of each fund is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. If transaction costs were included, total costs would be higher.


CGM ADVISOR TARGETED EQUITY FUND	BEGINNING ACCOUNT VALUE 1/1/2008	ENDING ACCOUNT VALUE 6/30/2008	EXPENSES PAID DURING PERIOD* 1/1/2008 – 6/30/2008
Class A
Actual	$1,000.00	$949.30	$5.38
Hypothetical (5% return before expenses)	$1,000.00	$1,019.34	$5.57
Class B
Actual	$1,000.00	$944.80	$8.99
Hypothetical (5% return before expenses)	$1,000.00	$1,015.61	$9.32
Class C
Actual	$1,000.00	$945.60	$9.00
Hypothetical (5% return before expenses)	$1,000.00	$1,015.61	$9.32
Class Y
Actual	$1,000.00	$949.70	$4.07
Hypothetical (5% return before expenses)	$1,000.00	$1,020.69	$4.22

Expenses are equal to the Fund’s annualized expense ratio (after fee reductions/reimbursements): 1.11%, 1.86%, 1.86% and 0.84%, for Class A, B, C, and Y, respectively, multiplied by the average account value over the period multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

UNDERSTANDING FUND EXPENSES (continued)


HANSBERGER INTERNATIONAL FUND	BEGINNING ACCOUNT VALUE 1/1/2008	ENDING ACCOUNT VALUE 6/30/2008	EXPENSES PAID DURING PERIOD* 1/1/2008 – 6/30/2008
Class A
Actual	$1,000.00	$907.00	$6.78
Hypothetical (5% return before expenses)	$1,000.00	$1,017.75	$7.17
Class B
Actual	$1,000.00	$903.40	$10.32
Hypothetical (5% return before expenses)	$1,000.00	$1,014.02	$10.92
Class C
Actual	$1,000.00	$903.60	$10.32
Hypothetical (5% return before expenses)	$1,000.00	$1,014.02	$10.92

Expenses are equal to the Fund’s annualized expense ratio (after fee reductions/reimbursements): 1.43%, 2.18%, and 2.18% for Class A, B, and C, respectively, multiplied by the average account value over the period multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).


HARRIS ASSOCIATES FOCUSED VALUE FUND	BEGINNING ACCOUNT VALUE 1/1/2008	ENDING ACCOUNT VALUE 6/30/2008	EXPENSES PAID DURING PERIOD* 1/1/08 – 6/30/08
Class A
Actual	$1,000.00	$844.80	$7.38
Hypothetical (5% return before expenses)	$1,000.00	$1,016.86	$8.07
Class B
Actual	$1,000.00	$840.70	$10.80
Hypothetical (5% return before expenses)	$1,000.00	$1,013.13	$11.81
Class C
Actual	$1,000.00	$841.90	$10.76
Hypothetical (5% return before expenses)	$1,000.00	$1,013.18	$11.76

Expenses are equal to the Fund’s annualized expense ratio (after fee reductions/reimbursements): 1.61%, 2.36% and 2.35%, for Class A, B and C, respectively, multiplied by the average account value over the period multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

UNDERSTANDING FUND EXPENSES (continued)


HARRIS ASSOCIATES LARGE CAP VALUE FUND	BEGINNING ACCOUNT VALUE 1/1/2008	ENDING ACCOUNT VALUE 6/30/2008	EXPENSES PAID DURING PERIOD* 1/1/2008 – 6/30/2008
Class A
Actual	$1,000.00	$850.20	$5.98
Hypothetical (5% return before expenses)	$1,000.00	$1,018.40	$6.52
Class B
Actual	$1,000.00	$847.40	$9.42
Hypothetical (5% return before expenses)	$1,000.00	$1,014.67	$10.27
Class C
Actual	$1,000.00	$847.20	$9.42
Hypothetical (5% return before expenses)	$1,000.00	$1,014.67	$10.27
Class Y
Actual	$1,000.00	$851.90	$4.28
Hypothetical (5% return before expenses)	$1,000.00	$1,020.24	$4.67

Expenses are equal to the Fund's annualized expense ratio (after fee reductions/reimbursements): 1.30%, 2.05%, 2.05%, and 0.93% for Class A, B, C, and Y, respectively, multiplied by the average account value over the period multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).


VAUGHAN NELSON SMALL CAP VALUE FUND	BEGINNING ACCOUNT VALUE 1/1/2008	ENDING ACCOUNT VALUE 6/30/2008	EXPENSES PAID DURING PERIOD* 1/1/2008 – 6/30/2008
Class A
Actual	$1,000.00	$986.40	$7.16
Hypothetical (5% return before expenses)	$1,000.00	$1,017.65	$7.27
Class B
Actual	$1,000.00	$982.60	$10.84
Hypothetical (5% return before expenses)	$1,000.00	$1,013.92	$11.02
Class C
Actual	$1,000.00	$982.60	$10.84
Hypothetical (5% return before expenses)	$1,000.00	$1,013.92	$11.02
Class Y
Actual	$1,000.00	$988.70	$5.44
Hypothetical (5% return before expenses)	$1,000.00	$1,019.39	$5.52

Expenses are equal to the Fund's annualized expense ratio (after fee reductions/reimbursements): 1.45%, 2.20%, 2.20% and 1.10% for Class A, B, C and Y, respectively, multiplied by the average account value over the period multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

UNDERSTANDING FUND EXPENSES (continued)


NATIXIS U.S. DIVERSIFIED PORTFOLIO	BEGINNING ACCOUNT VALUE 1/1/2008	ENDING ACCOUNT VALUE 6/30/2008	EXPENSES PAID DURING PERIOD* 1/1/2008 – 6/30/2008
Class A
Actual	$1,000.00	$901.90	$6.86
Hypothetical (5% return before expenses)	$1,000.00	$1,017.65	$7.27
Class B
Actual	$1,000.00	$898.90	$10.39
Hypothetical (5% return before expenses)	$1,000.00	$1,013.92	$11.02
Class C
Actual	$1,000.00	$898.60	$10.39
Hypothetical (5% return before expenses)	$1,000.00	$1,013.92	$11.02
Class Y
Actual	$1,000.00	$903.30	$5.58
Hypothetical (5% return before expenses)	$1,000.00	$1,019.00	$5.92

Expenses are equal to the Fund's annualized expense ratio (after fee reductions/reimbursements): 1.45%, 2.20%, 2.20% and 1.18%, for Class A, B, C, and Y, respectively, multiplied by the average account value over the period multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

BOARD APPROVAL OF THE EXISTING ADVISORY AND SUBADVISORY AGREEMENTS

The Board of Trustees, including the Independent Trustees, considers matters bearing on each Fund’s advisory and sub-advisory agreements (collectively, the “Agreements”) at most of its meetings throughout the year. Each year, usually in the spring, the Contract Review and Governance Committee of the Board meets to review the Agreements to determine whether to recommend that the full Board approve the continuation of the Agreements, typically for an additional one-year period. After the Committee has made its recommendation, the full Board, including the Independent Trustees, determines whether to approve the continuation of the Agreements.

In connection with these meetings, the Trustees receive materials that the Funds’ investment advisers believe to be reasonably necessary for the Trustees to evaluate the Agreements. These materials generally include, among other items, (i) information on the investment performance of the Funds and the performance of peer groups of funds and the Funds’ performance benchmarks, (ii) information on the Funds’ advisory and sub-advisory fees, if any, and other expenses, including information comparing the Funds’ expenses to those of peer groups of funds and information about any applicable expense caps and fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Funds’ advisers and sub-advisers (collectively, the “Advisers”), and (v) information obtained through the completion of a questionnaire by the Advisers (the Trustees are consulted as to the information requested through that questionnaire). The Board of Trustees, including the Independent Trustees, also consider other matters such as (i) each Adviser’s financial results and financial condition, (ii) each Fund’s investment objective and strategies and the size, education and experience of the Advisers’ respective investment staffs and their use of technology, external research and trading cost measurement tools, (iii) arrangements in respect of the distribution of the Funds’ shares and the related costs, (iv) the procedures employed to determine the value of the Funds’ assets, (v) the allocation of the Funds’ brokerage, if any, including allocations to brokers affiliated with the Advisers and the use of “soft” commission dollars to pay Fund expenses and to pay for research and other similar services, (vi) the resources devoted to, and the record of compliance with, the Funds’ investment policies and restrictions, policies on personal securities transactions and other compliance policies, and (vii) the general economic outlook with particular emphasis on the mutual fund industry. Throughout the process, the Trustees are afforded the opportunity to ask questions of and request additional materials from the Advisers.

In addition to the materials requested by the Trustees in connection with the annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board of Trustees that provide detailed information about the Funds’ investment performance and the fees charged to the Funds for advisory and other services. This information generally includes, among other things, an internal performance rating for each Fund (and segment, in the case of Funds managed by multiple sub-advisers) based on agreed-upon criteria, graphs showing performance and fee differentials against each Fund’s peer group, performance ratings provided by a third-party, total return information for various periods, and third-party performance rankings for various periods comparing a Fund against its peer group. The portfolio management team for each Fund makes periodic presentations to the Contract Review and Governance Committee and/or the full Board of Trustees, and Funds identified as presenting possible performance concerns may be subject to more frequent board presentations and reviews. In addition, each quarter the Trustees are provided with detailed statistical information about each Fund’s portfolio.

The Board of Trustees most recently approved the continuation of the Agreements at their meeting held in June 2008. The Agreements were continued for a one-year period for all Funds. In considering whether to approve the continuation of the Agreements, the Board of Trustees, including the Independent Trustees, did not identify any single factor as determinative. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included the following:

The nature, extent and quality of the services provided to the Funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by the Advisers and their affiliates to the Funds and the resources dedicated to the Funds by the Advisers and their affiliates, including recent or planned investments by certain of the Advisers in additional personnel or other resources. They also took note of the competitive market for talented personnel, in particular, for personnel who have contributed to the generation of strong investment performance. They considered the need for the Advisers to offer competitive compensation in order to attract and retain capable personnel.

The Trustees considered not only the advisory services provided by the Advisers to the Funds, but also the monitoring and oversight services provided by Natixis Advisors with respect to sub-advised Funds and the Funds for which Natixis Advisors provides advisory oversight services. They also considered the administrative services provided by Natixis Advisors and its affiliates to the Funds.

For each Fund, the Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds that offers shareholders the right to exchange shares of one type of fund for shares of another type of fund, and provides a variety of fund and shareholder services.

BOARD APPROVAL OF THE EXISTING ADVISORY AND SUBADVISORY AGREEMENTS

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the nature, extent and quality of services provided supported the renewal of the Agreements.

Investment performance of the Funds and the Advisers. As noted above, the Trustees received information about the performance of the Funds over various time periods, including information which compared the performance of the Funds to the performance of peer groups of funds and the Funds’ respective performance benchmarks. In addition, the Trustees also reviewed data prepared by an independent third party which analyzed the performance of the Funds using a variety of performance metrics, including metrics which also measured the performance of the Funds on a risk adjusted basis.

With respect to each Fund, the Board concluded that the Fund’s performance or other relevant factors supported the renewal of the Agreement(s) relating to that Fund. In the case of each Fund that had performance that lagged that of a relevant peer group for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Funds’ Agreements. These factors varied from Fund to Fund, but included one or more of the following: (1) that the underperformance was attributable, to a significant extent, to investment decisions (such as security selection or sector allocation) by the Fund’s Advisers that were reasonable and consistent with the Fund’s investment objective and policies; (2) that the Fund’s Adviser had taken or is taking steps designed to help improve the Fund’s investment performance; (3) that the Fund’s advisory fee had recently been, or is proposed to be, reduced or the Fund’s expenses capped, with the goal of helping the Fund’s net return to shareholders become more competitive; and (4) that reductions in the Fund’s expense levels resulting from decreased expenses and/or increased assets were not yet fully reflected in the Fund’s performance results.

The Trustees also noted that some Funds were recently formed and therefore performance comparisons were unavailable or related to a time period that was too short for a comparison to be meaningful.

The Trustees also considered each Adviser’s performance and reputation generally, the Funds’ performance as a fund family generally (as noted by certain financial publications), and the historical responsiveness of the Advisers to Trustee concerns about performance and the willingness of the Advisers to take steps intended to improve performance.

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the performance of the Funds and the Advisers supported the renewal of the Agreements.

The costs of the services to be provided and profits to be realized by the Advisers and their affiliates from their respective relationships with the Funds. The Trustees considered the fees charged to the Funds for advisory and sub-advisory services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and also by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Advisers to comparable accounts. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage mutual fund assets. In evaluating each Fund’s advisory and sub-advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund. The Trustees considered that over the past several years, management had made recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense caps for various Funds in the Fund family. They noted that, as of December 31, 2007, four of the seven Natixis Equity Funds in this report have expense caps in place, and they considered the amounts waived or reimbursed by the Advisers under these caps. The Trustees noted that several Funds had total expense ratios or advisory fee rates that were above the median of a peer group of Funds. The Trustees considered the circumstances that accounted for such relatively higher expenses. The Trustees also noted that for several of these Funds, the relatively higher expense ratios resulted to a significant extent from relatively higher expenses relating to items other than advisory fees. The Trustees also noted that management was recommending an additional advisory fee reduction for Harris Associates Focused Value Fund, effective July 1, 2008. The Trustees noted that management was proposing an expense cap for the Natixis U.S. Diversified Portfolio, effective July 1, 2008.

The Trustees also considered the compensation directly or indirectly received by the Advisers and their affiliates from their relationships with the Funds. The Trustees reviewed information provided by management as to the profitability of the Advisers’ and their affiliates’ relationships with the Funds, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management about the effect of distribution costs and Fund growth on the Advisers’ profitability,

BOARD APPROVAL OF THE EXISTING ADVISORY AND SUBADVISORY AGREEMENTS

including information regarding resources spent on distribution activities and the increase in net sales for the family of funds. When reviewing profitability, the Trustees also considered information about court cases in which adviser profitability was an issue, the performance of the relevant Funds, the expense levels of the Funds, and whether the Advisers had implemented breakpoints and/or expense caps with respect to such Funds.

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the advisory fees charged to each of the Funds were fair and reasonable, and that the costs of these services generally and the related profitability of the Advisers and their affiliates in respect of their relationships with the Funds supported the renewal of the Agreements.

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Advisers and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense waivers. The Trustees noted that five Funds had breakpoints in their advisory fees and that the remaining Funds were subject to expense caps. The Trustees also considered management’s representation that for certain Funds, the Funds’ Advisers did not benefit from economies of scale in providing services to the Funds (because of the investment style of the Fund or for other reasons) or were capacity constrained with respect to the relevant investment strategy. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Advisers and their affiliates of their relationships with the Funds, as discussed above.

After reviewing these and related factors, the Trustees considered, within the context of their overall conclusions regarding each of the Agreements, that the extent to which economies of scale were shared with the Funds supported the renewal of the Agreements.

The Trustees also considered other factors, which included but were not limited to the following:

whether each Fund has operated in accordance with its investment objective and the Fund’s record of compliance with its investment restrictions, and the compliance programs of the Funds and the Advisers. They also considered the compliance-related resources the Advisers and their affiliates were providing to the Funds.

the nature, quality, cost and extent of administrative and shareholder services performed by the Advisers and their affiliates, both under the Agreements and under separate agreements covering administrative services.

so-called “fallout benefits” to the Advisers, such as the engagement of affiliates of the Advisers to provide distribution, administrative and brokerage services to the Funds, and the benefits of research made available to the Advisers by reason of brokerage commissions generated by the Funds’ securities transactions. The Trustees also considered the fact that Natixis Advisors’ parent company benefits from the retention of affiliated Advisers. The Trustees considered the possible conflicts of interest associated with these fallout and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest.

Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Trustees, including the Independent Trustees, concluded that each of the existing advisory and sub-advisory agreements should be continued through June 30, 2009.

CGM ADVISOR TARGETED EQUITY FUND — PORTFOLIO OF INVESTMENTS

Investments as of June 30, 2008 (Unaudited)


Shares	Description	Value (†)

Common Stocks — 97.7% of Net Assets
	Automobiles — 3.5%
7,100,000	Ford Motor Co.(b)(c)	$	34,151,000

	Chemicals — 9.2%
485,000	Air Products & Chemicals, Inc.		47,947,100
456,200	Praxair, Inc.		42,992,288

			90,939,388

	Commercial Banks — 5.9%
450,000	Banco Bradesco SA, Sponsored ADR		9,207,000
2,416,250	Banco Itau Holding Financeira SA, ADR		49,074,038

			58,281,038

	Computers & Peripherals — 7.8%
300,000	Apple, Inc.(c)		50,231,999
230,000	IBM Corp.		27,261,900

			77,493,899

	Construction & Engineering — 4.5%
240,000	Fluor Corp.		44,659,200

	Electrical Equipment — 3.9%
1,350,000	ABB Ltd., Sponsored ADR(c)		38,232,000

	Energy Equipment & Services — 12.0%
1,010,000	Halliburton Co.(b)		53,600,700
600,000	Schlumberger Ltd.		64,458,000

			118,058,700

	IT Services — 5.4%
200,000	MasterCard, Inc., Class A(b)		53,104,000

	Metals & Mining — 6.7%
520,000	Alcoa, Inc.		18,522,400
1,052,000	Barrick Gold Corp.		47,866,000

			66,388,400

	Oil, Gas & Consumable Fuels — 20.2%
515,000	Chevron Corp.		51,051,950
510,000	ConocoPhillips		48,138,900
1,410,000	Petroleo Brasileiro SA, ADR		99,870,300

			199,061,150

	Personal Products — 4.4%
1,205,000	Avon Products, Inc.		43,404,100

	Road & Rail — 6.9%
240,000	Burlington Northern Santa Fe Corp.		23,973,600
700,000	CSX Corp.		43,967,000

			67,940,600

	Textiles, Apparel & Luxury Goods — 3.9%
645,000	NIKE, Inc., Class B		38,448,450

	Tobacco — 3.4%
680,000	Philip Morris International, Inc.		33,585,200

	Total Common Stocks (Identified Cost $846,229,294)		963,747,125


Principal Amount/ Shares		Description	Value (†)

	Short-Term Investments — 12.6%
$	33,610,000	American Express Credit Corp. Commercial Paper, 1.970%, due 7/01/2008	$	33,610,000
	91,236,998	State Street Navigator Securities Lending Prime Portfolio(d)		91,236,998

		Total Short-Term Investments (Identified Cost $124,846,998)		124,846,998


		Total Investments — 110.3% (Identified Cost $971,076,292)(a)		1,088,594,123
		Other assets less liabilities—(10.3)%		(101,663,952	)

		Net Assets — 100%	$	986,930,171


	(†)	See Note 2a of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.):
		At June 30, 2008, the net unrealized appreciation on investments based on a cost of $971,076,292 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	160,072,260
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(42,554,429	)

		Net unrealized appreciation	$	117,517,831


	(b)	All or a portion of this security was on loan to brokers at June 30, 2008.
	(c)	Non-income producing security.
	(d)	Represents investment of securities lending collateral.

	ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs are significantly influenced by trading on exchanges not located in the United States.

Net Asset Summary at June 30, 2008 (unaudited)


Oil, Gas & Consumable Fuels	20.2	%
Energy Equipment & Services	12.0
Chemicals	9.2
Computers & Peripherals	7.8
Road & Rail	6.9
Metals & Mining	6.7
Commercial Banks	5.9
IT Services	5.4
Construction & Engineering	4.5
Personal Products	4.4
Textiles, Apparel & Luxury Goods	3.9
Electrical Equipment	3.9
Automobiles	3.5
Tobacco	3.4
Short-Term Investments	12.6

Total Investments	110.3
Other assets less liabilities	(10.3	)

Net Assets	100.0	%

See accompanying notes to financial statements.

HANSBERGER INTERNATIONAL FUND — PORTFOLIO OF INVESTMENTS

Investments as of June 30, 2008 (Unaudited)


Shares	Description	Value (†)

Common Stocks — 98.0% of Net Assets
	Australia — 3.5%
43,301	BHP Billiton Ltd.	$	1,842,902
12,913	Rio Tinto Ltd.(b)		1,670,775
39,324	Westpac Banking Corp.		755,293
20,090	Woodside Petroleum Ltd.		1,298,538

			5,567,508

	Austria — 0.7%
18,601	Erste Bank Der Oesterreichischen Sparkassen AG(b)		1,150,406

	Brazil — 4.8%
49,584	Banco Itau Holding Financeira SA, ADR(b)		1,007,046
49,653	Companhia Energetica de Minas Gerais, ADR(b)		1,218,988
52,365	Companhia Vale do Rio Doce, ADR		1,875,714
48,063	Petroleo Brasileiro SA, ADR		3,404,302

			7,506,050

	Canada — 4.5%
16,802	Bank of Nova Scotia		769,000
44,902	Cameco Corp.		1,924,949
16,084	IGM Financial, Inc.		666,578
36,711	Manulife Financial Corp.		1,274,239
23,309	Rogers Communications, Inc., Class B		904,290
25,118	Suncor Energy, Inc.		1,459,858

			6,998,914

	China — 3.8%
1,088,000	Agile Property Holdings Ltd.		949,597
209,000	China Communications Construction Co. Ltd., Class H		358,302
11,561	China Medical Technologies, Inc., Sponsored ADR(b)		571,114
55,000	China Mobile Ltd.		738,256
246,500	China Shenhua Energy Co. Ltd., Series H		970,146
1,926,410	Denway Motors Ltd.		744,185
36,572	Focus Media Holding Ltd., ADR(b)(c)		1,013,776
160,000	Weichai Power Co. Ltd., Class H		688,972

			6,034,348

	Denmark — 1.3%
16,076	Vestas Wind Systems A/S(c)		2,093,045

	France — 9.5%
14,702	ArcelorMittal		1,445,757
74,440	Axa(b)		2,193,436
10,340	BNP Paribas(b)		930,774
21,791	Carrefour SA(b)		1,228,310
12,374	Electricite de France		1,172,198
15,857	Iliad SA(b)		1,536,135
7,911	LVMH Moet Hennessy Louis Vuitton SA(b)		825,249
5,687	PPR(b)		627,801
9,704	Schneider Electric SA		1,043,938
41,215	Societe Television Francaise 1(b)		686,110
18,711	Suez SA(b)		1,268,370
14,179	Total SA		1,206,893
20,362	Vivendi SA		767,775

			14,932,746

	Germany — 7.4%
34,911	Adidas AG(b)		2,198,440
11,781	Bayer AG		991,232
32,638	Commerzbank AG(b)		969,602
7,484	Deutsche Boerse AG		845,992
5,321	E.ON AG		1,072,415


Shares	Description	Value (†)

	Germany — continued
4,323	Merck KGaA	$	614,305
8,466	Q-Cells AG(b)(c)		857,614
26,554	SAP AG(b)		1,389,766
20,291	SAP AG, ADR(b)		1,057,364
7,395	Siemens AG (Registered)		819,810
4,160	Wacker Chemie AG		869,060

			11,685,600

	Greece — 1.6%
27,261	Folli - Follie SA		635,745
24,183	National Bank of Greece SA		1,088,399
26,537	Piraeus Bank SA		722,238

			2,446,382

	Hong Kong — 1.4%
142,500	Esprit Holdings Ltd.		1,483,781
751,000	Foxconn International Holdings Ltd.(c)		728,667

			2,212,448

	India — 2.1%
10,510	HDFC Bank Ltd., ADR		753,146
59,258	Infosys Technologies Ltd., Sponsored ADR(b)		2,575,353

			3,328,499

	Israel — 0.7%
22,328	Teva Pharmaceutical Industries Ltd., Sponsored ADR(b)		1,022,622

	Italy — 4.0%
30,923	ENI SpA		1,148,798
63,584	Saipem SpA(b)		2,971,762
363,608	UniCredito Italiano SpA		2,211,769

			6,332,329

	Japan — 14.0%
166,000	Bank of Yokohama (The) Ltd.		1,147,935
16,800	Canon, Inc.(b)		864,795
29,800	Denso Corp.		1,026,353
131	KDDI Corp.		810,552
54,000	NGK Insulators Ltd.		1,052,764
11,700	Nidec Corp.		779,328
6,900	Nintendo Co. Ltd.		3,912,804
25,100	Nitto Denko Corp.		964,853
69,200	Nomura Holdings, Inc.		1,024,739
6,380	Orix Corp.		913,788
39,200	Promise Co. Ltd.		1,095,987
31,100	Shin-Etsu Chemical Co. Ltd.		1,929,913
42,000	Shionogi & Co. Ltd.		831,593
56,100	Sumitomo Corp.(b)		737,057
196,000	Sumitomo Trust & Banking Co. Ltd.		1,369,280
44,100	THK Co. Ltd.		858,123
18,800	Toyota Motor Corp.		887,435
13,400	Yamada Denki Co. Ltd.(b)		954,726
86,000	Yaskawa Electric Corp.		843,946

			22,005,971

	Korea — 2.0%
11,477	Kookmin Bank, Sponsored ADR		671,519
2,089	Samsung Electronics Co. Ltd.		1,248,048
4,086	Samsung Electronics Co. Ltd., GDR, 144A		1,204,349

			3,123,916

See accompanying notes to financial statements.

HANSBERGER INTERNATIONAL FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of June 30, 2008 (Unaudited)


Shares	Description	Value (†)

	Luxembourg — 1.0%
14,711	Millicom International Cellular SA	$	1,522,588

	Mexico — 1.3%
22,474	America Movil SAB de CV, Series L, ADR		1,185,504
23,533	Wal-Mart de Mexico SA de CV, Sponsored ADR, Series V(b)		936,378

			2,121,882

	Netherlands — 0.9%
17,856	ING Groep NV		564,564
27,476	Koninklijke (Royal) Philips Electronics NV		928,689

			1,493,253

	Norway — 1.4%
38,697	Renewable Energy Corp. A/S(b)(c)		999,095
46,500	Subsea 7, Inc.(b)(c)		1,176,047

			2,175,142

	Russia — 5.3%
15,314	Evraz Group SA, GDR, 144A		1,784,081
13,647	LUKOIL, Sponsored ADR		1,345,594
59,847	MMC Norilsk Nickel, ADR		1,514,129
9,704	Mobile Telesystems, Sponsored ADR		743,423
39,148	OAO Gazprom, Sponsored ADR		2,270,584
6,243	Wimm-Bill-Dann Foods, ADR(b)(c)		656,889

			8,314,700

	Singapore — 1.9%
89,000	DBS Group Holdings Ltd.		1,238,253
114,000	Keppel Corp. Ltd.(b)		935,081
229,000	Keppel Land Ltd.		836,400

			3,009,734

	South Africa — 0.6%
55,495	MTN Group Ltd.		878,430

	Spain — 3.1%
59,759	Banco Bilbao Vizcaya Argentaria SA(b)		1,138,633
134,500	Banco Santander Central Hispano SA		2,453,827
46,003	Telefonica SA		1,217,411

			4,809,871

	Switzerland — 8.4%
43,937	ABB Ltd.(c)		1,243,674
45,647	Credit Suisse Group		2,077,714
10,788	Holcim Ltd., (Registered)		872,015
4,901	Lonza Group AG		677,308
47,080	Nestle SA		2,127,368
28,371	Nobel Biocare Holding AG		922,459
34,512	Novartis AG		1,899,270
13,963	Roche Holding AG		2,510,160
2,893	Syngenta AG		937,253

			13,267,221

	Taiwan — 0.7%
482,619	Taiwan Semiconductor Manufacturing Co. Ltd.		1,025,497

	United Kingdom — 12.1%
490,294	ARM Holdings PLC(b)		827,702
13,048	AstraZeneca PLC		554,783
87,865	Autonomy Corp. PLC(c)		1,575,041
33,843	BHP Billiton PLC		1,297,889
164,391	British Sky Broadcasting PLC		1,540,791
52,460	HBOS PLC, Nil Paid Rights(c)		11,233


Shares		Description	Value (†)

		United Kingdom — continued
	131,151	HBOS PLC	$	718,032
	68,600	HSBC Holdings PLC		1,057,388
	148,614	ICAP PLC		1,591,851
	125,311	Man Group PLC		1,548,018
	190,312	Michael Page International PLC		881,526
	110,067	Prudential PLC		1,160,966
	150,928	Smith & Nephew PLC		1,655,905
	297,992	Tesco PLC		2,179,618
	399,524	Vodafone Group PLC		1,177,129
	49,144	Wellstream Holdings PLC(c)		1,270,233

				19,048,105

		Total Common Stocks (Identified Cost $135,421,333)		154,107,207


	Preferred Stocks — 1.8%
		Brazil — 1.0%
	52,634	Companhia Vale do Rio Doce, Sponsored ADR		1,570,598

		Germany — 0.8%
	5,610	Fresenius		484,700
	17,875	Henkel KGaA		710,318

				1,195,018

		Total Preferred Stocks (Identified Cost $1,853,849)		2,765,616


Shares/ Principal Amount
	Short-Term Investments — 16.1%
	24,814,239	State Street Navigator Securities Lending Prime Portfolio(d)		24,814,239
$	476,549	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2008 at 1.300% to be repurchased at $476,566 on 7/01/2008, collateralized by $485,000 Federal Home Loan Mortgage Corp., 3.500% due 5/05/2011 valued at $488,638 including accrued interest (Note 2g of Notes to Financial Statements)		476,549

		Total Short-Term Investments (Identified Cost $25,290,788)	$	25,290,788

		Total Investments — 115.9% (Identified Cost $162,565,970)(a)		182,163,611
		Other assets less liabilities — (15.9)%		(24,929,618	)

		Net Assets — 100%	$	157,233,993

	(†)	See Note 2a of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales and gain realized from passive foreign investment companies.):
		At June 30, 2008, the net unrealized appreciation on investments based on a cost of $162,565,970 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	30,099,030
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(10,501,389	)

		Net unrealized appreciation	$	19,597,641


	(b)	All or a portion of this security was on loan to brokers at June 30, 2008.
	(c)	Non-income producing security.
	(d)	Represents investment of securities lending collateral.

See accompanying notes to financial statements.

HANSBERGER INTERNATIONAL FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of June 30, 2008 (Unaudited)


144A		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At June 30, 2008, the value of these securities amounted to $2,988,430 or 1.9% of net assets.
ADR/GDR		An American Depositary Receipt or Global Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs and GDRs are significantly influenced by trading on exchanges not located in the United States.

Net Asset Summary at June 30, 2008 (unaudited)


Commercial Banks	12.8	%
Oil, Gas & Consumable Fuels	9.6
Metals & Mining	8.3
Wireless Telecommunication Services	5.1
Software	5.1
Pharmaceuticals	4.7
Capital Markets	4.4
Electrical Equipment	4.0
Chemicals	3.6
Energy Equipment & Services	3.4
Insurance	2.9
Food & Staples Retailing	2.8
Semiconductors & Semiconductor Equipment	2.7
Media	2.6
Textiles, Apparel & Luxury Goods	2.3
Health Care Equipment & Supplies	2.3
Electric Utilities	2.2
Other Investments, less than 2% each	21.0
Short-Term Investments	16.1

Total Investments	115.9
Other assets less liabilities	(15.9	)

Net Assets	100.0	%

Currency Exposure at June 30, 2008 as a Percentage of Net Assets (Unaudited)


United States Dollar	37.6	%
Euro	26.8
Japanese Yen	14.0
British Pound	11.4
Swiss Franc	8.4
Australian Dollar	3.5
Hong Kong Dollar	4.9
Other, less than 2% each	9.3

Total Investments	115.9
Other assets less liabilities	(15.9	)

Net Assets	100.0	%

See accompanying notes to financial statements.

HARRIS ASSOCIATES FOCUSED VALUE FUND — PORTFOLIO OF INVESTMENTS

Investments as of June 30, 2008 (Unaudited)


Shares	Description	Value (†)

Common Stocks — 98.7% of Net Assets
	Capital Markets — 12.0%
89,900	Legg Mason, Inc.	$	3,916,943
109,400	Merrill Lynch & Co., Inc.		3,469,074
82,400	Morgan Stanley		2,972,168

			10,358,185

	Chemicals — 3.3%
72,700	International Flavors & Fragrances, Inc.		2,839,662

	Commercial Services & Supplies — 6.0%
215,100	Robert Half International, Inc.(b)		5,155,947

	Computers & Peripherals — 10.9%
221,900	Dell, Inc.(c)		4,855,172
196,300	Teradata Corp.(c)		4,542,382

			9,397,554

	Consumer Finance — 3.6%
236,200	Discover Financial Services(b)		3,110,754

	Health Care Equipment & Supplies — 4.7%
102,200	Hospira, Inc.(b)(c)		4,099,242

	Health Care Providers & Services — 1.9%
293,200	Tenet Healthcare Corp.(b)(c)		1,630,192

	Hotels, Restaurants & Leisure — 7.4%
98,000	Starwood Hotels & Resorts Worldwide, Inc.(b)		3,926,860
68,800	Yum! Brands, Inc.		2,414,192

			6,341,052

	Internet & Catalog Retail — 3.4%
198,700	Liberty Media Holding Corp. - Interactive, Class A(c)		2,932,812

	Life Sciences Tools & Services — 8.5%
130,200	MDS, Inc.(c)		2,109,240
186,000	PerkinElmer, Inc.		5,180,100

			7,289,340

	Machinery — 2.2%
30,500	ITT Corp.(b)		1,931,565

	Media — 7.2%
114,100	Liberty Media Corp. - Capital, Series A(c)		1,643,040
332,600	Virgin Media, Inc.(b)		4,526,686

			6,169,726

	Personal Products — 4.0%
94,800	Avon Products, Inc.		3,414,696

	Semiconductors & Semiconductor Equipment — 15.9%
300,000	Intel Corp.		6,444,000
356,000	Micron Technology, Inc.(b)(c)		2,136,000
251,200	National Semiconductor Corp.		5,159,648

			13,739,648

	Specialty Retail — 7.7%
63,100	Advance Auto Parts, Inc		2,450,173
103,500	Tiffany & Co.(b)		4,217,625

			6,667,798

	Total Common Stocks (Identified Cost $98,844,598)		85,078,173


Shares/ Principal Amount		Description	Value (†)

	Short-Term Investments — 22.8%
	18,699,354	State Street Navigator Securities Lending Prime Portfolio(d)	$	18,699,354
$	943,687	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2008 at 1.300% to be repurchased at $943,721 on 7/1/2008, collateralized by $960,000 Federal Home Loan Mortgage Corporation, 3.500% due 5/5/2011 valued at $967,200, including accrued interest (Note 2g of Notes to Financial Statements)		943,687

		Total Short-Term Investments (Identified Cost $19,643,041)		19,643,041


		Total Investments — 121.5% (Identified Cost $118,487,639)(a)		104,721,214
		Other assets less liabilities — (21.5)%		(18,548,627	)

		Net Assets — 100%	$	86,172,587


	(†)	See Note 2a of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales):
		At June 30, 2008, the net unrealized depreciation on investments based on a cost of $118,487,639 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	3,336,629
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(17,103,054	)

		Net unrealized depreciation	$	(13,766,425	)


	(b)	All or a portion of this security was on loan to brokers at June 30, 2008.
	(c)	Non-income producing security.
	(d)	Represents investment of securities lending collateral.

Net Asset Summary at June 30, 2008 (unaudited)


Semiconductors & Semiconductor Equipment	15.9	%
Capital Markets	12.0
Computers & Peripherals	10.9
Life Sciences Tools & Services	8.5
Specialty Retail	7.7
Hotels, Restaurants & Leisure	7.4
Media	7.2
Commercial Services & Supplies	6.0
Health Care Equipment & Supplies	4.7
Personal Products	4.0
Consumer Finance	3.6
Internet & Catalog Retail	3.4
Chemicals	3.3
Machinery	2.2
Health Care Providers & Services	1.9
Short-Term Investments	22.8

Total Investments	121.5
Other assets less liabilities	(21.5	)

Net Assets	100.0	%

See accompanying notes to financial statements.

HARRIS ASSOCIATES LARGE CAP VALUE FUND — PORTFOLIO OF INVESTMENTS

Investments as of June 30, 2008 (Unaudited)


Shares	Description	Value (†)

Common Stocks — 97.3% of Net Assets
	Air Freight & Logistics — 3.5%
74,700	FedEx Corp.	$	5,885,613

	Automobiles — 1.5%
68,300	Harley-Davidson, Inc.(b)		2,476,558

	Beverages — 0.8%
11,300	Coca-Cola Co. (The)		587,374
11,700	Diageo PLC, Sponsored ADR(b)		864,279

			1,451,653

	Capital Markets — 16.3%
200,400	Bank of New York Mellon Corp.		7,581,132
31,500	Franklin Resources, Inc.		2,886,975
116,600	Legg Mason, Inc.		5,080,262
259,200	Merrill Lynch & Co., Inc.		8,219,232
108,000	Morgan Stanley		3,895,560

			27,663,161

	Chemicals — 2.2%
106,200	Dow Chemical Co. (The)(b)		3,707,442

	Computers & Peripherals — 10.5%
420,500	Dell, Inc.(c)		9,200,540
193,600	Hewlett-Packard Co.		8,559,056

			17,759,596

	Consumer Finance — 8.5%
128,600	American Express Co.		4,844,362
160,800	Capital One Financial Corp.(b)		6,112,008
260,350	Discover Financial Services(b)		3,428,810

			14,385,180

	Diversified Financial Services — 3.3%
163,200	JPMorgan Chase & Co.		5,599,392

	Electronic Equipment & Instruments — 0.5%
26,200	Tyco Electronics Ltd.		938,484

	Food & Staples Retailing — 1.2%
28,600	CVS Caremark Corp.		1,131,702
27,000	Walgreen Co.		877,770

			2,009,472

	Health Care Equipment & Supplies — 3.0%
100,100	Medtronic, Inc.		5,180,175

	Hotels, Restaurants & Leisure — 9.9%
240,700	Carnival Corp.(b)		7,933,472
105,300	McDonald’s Corp.		5,919,966
72,500	Starwood Hotels & Resorts Worldwide, Inc.		2,905,075

			16,758,513

	Household Durables — 1.8%
48,100	Fortune Brands, Inc.(b)		3,001,921

	Media — 8.6%
114,800	Comcast Corp., Special Class A(b)		2,153,648
33,510	Liberty Media Corp. - Capital, Series A(c)		482,544
73,500	Omnicom Group, Inc.		3,298,680
203,000	Time Warner, Inc.		3,004,400
70,400	Viacom, Inc., Class B(c)		2,150,016
110,200	Walt Disney Co. (The)		3,438,240

			14,527,528

	Office Electronics — 0.5%
64,900	Xerox Corp.		880,044


Shares		Description	Value (†)

		Pharmaceuticals — 6.7%
	96,700	GlaxoSmithKline PLC, Sponsored ADR	$	4,276,074
	361,800	Schering-Plough Corp.		7,123,842

				11,399,916

		Road & Rail — 4.2%
	93,500	Union Pacific Corp.		7,059,250

		Semiconductors & Semiconductor Equipment — 8.9%
	515,600	Intel Corp.		11,075,088
	141,700	Texas Instruments, Inc.		3,990,272

				15,065,360

		Specialty Retail — 4.0%
	72,100	Best Buy Co., Inc.(b)		2,855,160
	114,600	Home Depot, Inc.		2,683,932
	71,800	Limited Brands, Inc.(b)		1,209,830

				6,748,922

		Textiles, Apparel & Luxury Goods — 1.4%
	39,800	NIKE, Inc., Class B		2,372,478

		Total Common Stocks (Identified Cost $174,918,765)		164,870,658

Shares/ Principal Amount
	Short-Term Investments — 18.5%
	26,183,678	State Street Navigator Securities Lending Prime Portfolio(d)		26,183,678
$	5,101,048	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2008 at 1.300% to be repurchased at $5,101,233 on 7/1/2008, collateralized by $5,165,000 Federal Home Loan Mortgage Corporation, 3.500% due 5/5/2011 valued at $5,203,738, including accrued interest (Note 2g of Notes to Financial Statements)		5,101,048

		Total Short-Term Investments (Identified Cost $31,284,726)		31,284,726


		Total Investments — 115.8% (Identified Cost $206,203,491)(a)		196,155,384
		Other assets less liabilities — (15.8)%		(26,798,122	)

		Net Assets — 100%	$	169,357,262


	(†)	See Note 2a of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.):
		At June 30, 2008, the net unrealized depreciation on investments based on a cost of $206,203,491 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	15,546,646
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(25,594,753	)

		Net unrealized depreciation	$	(10,048,107	)


	(b)	All or a portion of this security was on loan to brokers at June 30, 2008.
	(c)	Non-income producing security.
	(d)	Represents investment of securities lending collateral.
	ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs are significantly influenced by trading on exchanges not located in the United States.

See accompanying notes to financial statements.

HARRIS ASSOCIATES LARGE CAP VALUE FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of June 30, 2008 (Unaudited)

Net Asset Summary at June 30, 2008 (unaudited)


Capital Markets	16.3	%
Computers & Peripherals	10.5
Hotels, Restaurants & Leisure	9.9
Semiconductors & Semiconductor Equipment	8.9
Media	8.6
Consumer Finance	8.5
Pharmaceuticals	6.7
Road & Rail	4.2
Specialty Retail	4.0
Air Freight & Logistics	3.5
Diversified Financial Services	3.3
Health Care Equipment & Supplies	3.0
Chemicals	2.2
Other Investments, less than 2% each	7.7
Short-Term Investments	18.5

Total Investments	115.8
Other assets less liabilities	(15.8	)

Net Assets	100.0	%

See accompanying notes to financial statements.

VAUGHAN NELSON SMALL CAP VALUE FUND — PORTFOLIO OF INVESTMENTS

Investments as of June 30, 2008 (Unaudited)


Shares	Description	Value (†)

Common Stocks — 83.9% of Net Assets
	Aerospace & Defense — 1.9%
17,070	Alliant Techsystems, Inc.(b)(c)	$	1,735,677
58,837	Moog, Inc., Class A(b)		2,191,090

			3,926,767

	Air Freight & Logistics — 1.1%
66,700	Forward Air Corp.(c)		2,307,820

	Capital Markets — 5.3%
45,075	Affiliated Managers Group, Inc.(b)(c)		4,059,454
153,669	Raymond James Financial, Inc.(c)		4,055,325
85,050	Waddell & Reed Financial, Inc., Class A		2,977,601

			11,092,380

	Chemicals — 2.3%
62,950	Airgas, Inc.		3,675,651
66,400	Scotts Miracle-Gro Co. (The), Class A(c)		1,166,648

			4,842,299

	Commercial Banks — 4.0%
31,350	City National Corp.(c)		1,318,895
59,600	Cullen/Frost Bankers, Inc.(c)		2,971,060
94,300	Prosperity Bancshares, Inc.(c)		2,520,639
73,975	United Bankshares, Inc.(c)		1,697,726

			8,508,320

	Commercial Services & Supplies — 4.2%
103,368	Healthcare Services Group, Inc.(c)		1,572,227
30,815	Team, Inc.(b)		1,057,571
100,427	Waste Connections, Inc.(b)(c)		3,206,634
56,100	Watson Wyatt Worldwide, Inc., Class A(c)		2,967,129

			8,803,561

	Communications Equipment — 1.7%
67,925	CommScope, Inc.(b)(c)		3,584,402

	Construction & Engineering — 3.1%
82,550	Chicago Bridge & Iron Co., N.V.		3,287,141
77,475	URS Corp.(b)		3,251,626

			6,538,767

	Consumer Finance — 1.2%
165,025	First Cash Financial Services, Inc.(b)		2,473,725

	Containers & Packaging — 3.0%
148,850	Pactiv Corp.(b)		3,160,085
62,450	Silgan Holdings, Inc.(c)		3,168,713

			6,328,798

	Electric Utilities — 1.5%
143,305	Westar Energy, Inc.(c)		3,082,491

	Electrical Equipment — 2.7%
52,325	General Cable Corp.(b)(c)		3,183,976
58,375	Regal-Beloit Corp.(c)		2,466,344

			5,650,320

	Energy Equipment & Services — 4.2%
83,100	Complete Production Services, Inc.(b)(c)		3,026,502
29,600	Oil States International, Inc.(b)(c)		1,877,824
69,500	Superior Energy Services, Inc.(b)(c)		3,832,230

			8,736,556

	Food Products — 4.0%
68,775	Corn Products International, Inc.(c)		3,377,540
60,925	Ralcorp Holdings, Inc.(b)		3,012,132


Shares	Description	Value (†)

	Food Products — continued
85,400	TreeHouse Foods, Inc.(b)(c)	$	2,071,804

			8,461,476

	Gas Utilities — 3.6%
117,900	Atmos Energy Corp.(c)		3,250,503
136,850	Vectren Corp.(c)		4,271,088

			7,521,591

	Health Care Equipment & Supplies — 0.3%
51,637	Medical Action Industries, Inc.(b)		535,476

	Health Care Providers & Services — 5.6%
136,200	Healthspring, Inc.(b)		2,299,056
59,525	inVentiv Health, Inc.(b)(c)		1,654,200
126,050	LHC Group, Inc.(b)		2,930,662
25,200	Owens & Minor, Inc.(c)		1,151,388
75,500	Pediatrix Medical Group, Inc.(b)(c)		3,716,865

			11,752,171

	Hotels, Restaurants & Leisure — 1.3%
152,775	AFC Enterprises, Inc.(b)		1,220,672
248,350	Triarc Cos., Inc., Class B		1,572,056

			2,792,728

	Household Durables — 0.6%
168,450	Tempur-Pedic International, Inc.(c)		1,315,595

	Industrial Conglomerates — 1.5%
58,375	Teleflex, Inc.(c)		3,245,066

	Insurance — 4.9%
100,700	Aspen Insurance Holdings Ltd.(c)		2,383,569
170,862	HCC Insurance Holdings, Inc.		3,612,023
100,700	IPC Holdings Ltd.(c)		2,673,585
62,820	United Fire & Casualty Co.		1,691,742

			10,360,919

	Machinery — 6.2%
89,525	Actuant Corp., Class A(c)		2,806,609
41,125	Kaydon Corp.(c)		2,114,236
51,625	Lincoln Electric Holdings, Inc.(c)		4,062,887
24,940	Nordson Corp.(c)		1,817,877
70,450	Rofin-Sinar Technologies, Inc.(b)		2,127,590

			12,929,199

	Marine — 0.3%
20,400	Eagle Bulk Shipping, Inc.		603,228

	Oil, Gas & Consumable Fuels — 7.8%
76,875	Approach Resources, Inc.(b)(c)		2,059,481
51,625	Arena Resources, Inc.(b)		2,726,833
79,975	Concho Resources, Inc.(b)(c)		2,983,067
75,250	Encore Acquisition Co.(b)		5,658,047
110,625	PetroQuest Energy, Inc.(b)		2,975,813

			16,403,241

	Semiconductors & Semiconductor Equipment — 4.9%
85,975	ATMI, Inc.(b)(c)		2,400,422
74,950	Brooks Automation, Inc.(b)(c)		619,836
133,450	Microsemi Corp.(b)(c)		3,360,271
59,525	Ultra Clean Holdings, Inc.(b)(c)		473,819
99,250	Varian Semiconductor Equipment Associates, Inc.(b)(c)		3,455,885

			10,310,233

	Software — 3.9%
75,415	MICROS Systems, Inc.(b)(c)		2,299,403

See accompanying notes to financial statements.

VAUGHAN NELSON SMALL CAP VALUE FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of June 30, 2008 (Unaudited)


Shares		Description	Value (†)

		Software —continued
	138,825	Sybase, Inc.(b)(c)	$	4,084,232
	140,900	Tyler Technologies, Inc.(b)		1,912,013

				8,295,648

		Specialty Retail — 1.4%
	127,890	Aaron Rents, Inc.		2,855,784

		Textiles, Apparel & Luxury Goods — 1.4%
	79,175	Phillips-Van Heusen Corp.(c)		2,899,389

		Total Common Stocks (Identified Cost $170,729,230)		176,157,950


	Exchange Traded Fund — 3.0%
	98,450	iShares Russell 2000 Value Index Fund(c) (Identified Cost $6,798,341)		6,300,800

Shares/ Principal Amount
	Short-Term Investments — 29.8%
	45,881,710	State Street Navigator Securities Lending Prime Portfolio(d)		45,881,710
$	16,632,365	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2008 at 1.300% to be repurchased at $16,632,966 on 7/1/2008, collateralized by $16,840,000 Federal Home Loan Mortgage Corp., 3.500% due 5/05/2011 valued at $16,966,300 including accrued interest (Note 2g of Notes to Financial Statements)		16,632,365

		Total Short-Term Investments (Identified Cost $62,514,075)		62,514,075


		Total Investments — 116.7% (Identified Cost $240,041,646)(a)		244,972,825
		Other assets less liabilities — (16.7)%		(35,111,005	)

		Net Assets — 100%	$	209,861,820


	(†)	See Note 2a of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.):
		At June 30, 2008, the net unrealized appreciation on investments based on a cost of $240,041,646 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	18,281,025
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(13,349,846	)

		Net unrealized appreciation	$	4,931,179


	(b)	Non-income producing security.
	(c)	All or a portion of this security was on loan to brokers at June 30, 2008.
	(d)	Represents investment of securities lending collateral.

Net Asset Summary at June 30, 2008 (unaudited)


Oil, Gas & Consumable Fuels	7.8	%
Machinery	6.2
Health Care Providers & Services	5.6
Capital Markets	5.3
Insurance	4.9
Semiconductors & Semiconductor Equipment	4.9
Commercial Services & Supplies	4.2
Energy Equipment & Services	4.2
Commercial Banks	4.0
Food Products	4.0
Software	3.9
Gas Utilities	3.6
Construction & Engineering	3.1
Exchange Traded Fund	3.0
Containers & Packaging	3.0
Electrical Equipment	2.7
Chemicals	2.3
Other Investments, less than 2% each	14.2
Short-Term Investments	29.8

Total Investments	116.7
Other assets less liabilities	(16.7	)

Net Assets	100.0	%

See accompanying notes to financial statements.

NATIXIS U.S. DIVERSIFIED PORTFOLIO — PORTFOLIO OF INVESTMENTS

Investments as of June 30, 2008 (Unaudited)


Shares	Description	Value (†)

Common Stocks — 97.1% of Net Assets
	Aerospace & Defense — 0.9%
34,558	BE Aerospace, Inc.(b)	$	804,856
6,700	Boeing Co. (The)		440,324
15,400	Lockheed Martin Corp.		1,519,364
24,400	Spirit Aerosystems Holdings, Inc., Class A(b)		467,992
16,800	United Technologies Corp.		1,036,560

			4,269,096

	Air Freight & Logistics — 0.8%
51,400	FedEx Corp.		4,049,806

	Auto Components — 0.3%
7,590	Federal Mogul Corp., Class A(b)		122,427
29,378	WABCO Holdings, Inc.		1,364,902

			1,487,329

	Automotive — 0.4%
48,400	Harley-Davidson, Inc.(c)		1,754,984

	Beverages — 1.1%
33,362	Central European Distribution Corp.(b)(c)		2,473,793
25,300	Coca-Cola Co. (The)		1,315,094
8,300	Diageo PLC, Sponsored ADR(c)		613,121
40,890	Dr Pepper Snapple Group, Inc.(b)		857,872

			5,259,880

	Biotechnology — 1.1%
27,000	Celgene Corp.(b)		1,724,490
37,800	Gilead Sciences, Inc.(b)		2,001,510
20,023	Myriad Genetics, Inc.(b)(c)		911,447
25,389	Onyx Pharmaceuticals, Inc.(b)		903,848

			5,541,295

	Building Products — 0.4%
71,771	Armstrong World Industries, Inc.(c)		2,097,149

	Capital Markets — 6.8%
140,300	Bank of New York Mellon Corp.		5,307,549
57,500	Charles Schwab Corp. (The)		1,181,050
55,858	Eaton Vance Corp.		2,220,914
26,500	Franklin Resources, Inc.(c)		2,428,725
127,219	Janus Capital Group, Inc.(c)		3,367,487
82,700	Legg Mason, Inc.(c)		3,603,239
182,800	Merrill Lynch & Co., Inc.		5,796,588
79,800	Morgan Stanley		2,878,386
13,000	Northern Trust Corp.		891,410
71,260	Raymond James Financial, Inc.(c)		1,880,552
21,800	State Street Corp.		1,394,982
40,881	T Rowe Price Group, Inc.(c)		2,308,550

			33,259,432

	Chemicals — 3.4%
25,717	Agrium, Inc.		2,765,606
8,600	Air Products & Chemicals, Inc.(c)		850,196
15,724	CF Industries Holdings, Inc.		2,402,627
17,538	Cytec Industries, Inc.		956,873
75,100	Dow Chemical Co. (The)(c)		2,621,741
26,625	Intrepid Potash, Inc.(b)(c)		1,751,393
15,500	Monsanto Co.		1,959,820
3,600	Mosaic Co. (The)(b)		520,920
2,400	Potash Corp. of Saskatchewan, Inc.		548,568
16,700	Praxair, Inc.		1,573,808
57,174	Zep, Inc.(c)		850,749

			16,802,301


Shares	Description	Value (†)

	Commercial Banks — 0.7%
61,554	BOK Financial Corp.(c)	$	3,290,061

	Commercial Services & Supplies — 2.5%
115,446	Comfort Systems USA, Inc.		1,551,594
165,510	Duff & Phelps Corp., Class A(b)(c)		2,740,846
21,646	Dun & Bradstreet Corp.		1,897,055
41,659	Exponent, Inc.(b)		1,308,509
58,187	Hill-Rom Holdings, Inc.(c)		1,569,885
5,864	Huron Consulting Group, Inc.(b)		265,874
72,289	PHH Corp.(b)		1,109,636
40,081	Stericycle, Inc.(b)		2,072,188

			12,515,587

	Communications Equipment — 1.3%
97,800	Cisco Systems, Inc.(b)		2,274,828
61,356	EchoStar Corp., Class A(b)(c)		1,915,534
44,200	QUALCOMM, Inc.		1,961,154

			6,151,516

	Computers & Peripherals — 4.7%
20,200	Apple, Inc.(b)		3,382,288
297,800	Dell, Inc.(b)		6,515,864
70,600	EMC Corp.(b)		1,037,114
86,447	Emulex Corp.(b)		1,007,108
137,100	Hewlett-Packard Co.		6,061,191
111,282	NCR Corp.(b)		2,804,306
93,437	Teradata Corp.(b)		2,162,132

			22,970,003

	Construction & Engineering — 1.2%
5,100	Fluor Corp.		949,008
22,852	Granite Construction, Inc.(c)		720,523
8,000	Jacobs Engineering Group, Inc.(b)		645,600
58,111	KBR, Inc.		2,028,655
105,044	Orion Marine Group, Inc.(b)(c)		1,484,272

			5,828,058

	Construction Materials — 0.2%
16,237	Texas Industries, Inc.(c)		911,383

	Consumer Finance — 2.4%
87,800	American Express Co.		3,307,426
112,400	Capital One Financial Corp.(c)		4,272,324
309,484	Discover Financial Services(c)		4,075,904

			11,655,654

	Containers & Packaging — 0.4%
83,169	Crown Holdings, Inc.(b)		2,161,562

	Diversified Consumer Services — 0.3%
67,131	Hillenbrand, Inc.(c)		1,436,603

	Diversified Financial Services — 0.8%
113,800	JPMorgan Chase & Co.		3,904,478

	Electric Utilities — 0.6%
37,199	Allete, Inc.(c)		1,562,358
60,319	Portland General Electric Co.		1,358,384

			2,920,742

	Electrical Equipment — 2.0%
39,521	Acuity Brands, Inc.(c)		1,900,170
36,398	AMETEK, Inc.		1,718,714
28,500	Emerson Electric Co.		1,409,325
7,406	First Solar, Inc.(b)		2,020,505
44,284	General Cable Corp.(b)(c)		2,694,681

			9,743,395

See accompanying notes to financial statements.

NATIXIS U.S. DIVERSIFIED PORTFOLIO — PORTFOLIO OF INVESTMENTS (continued)

Investments as of June 30, 2008 (Unaudited)


Shares	Description	Value (†)

	Electronic Equipment & Instruments — 1.2%
78,107	Amphenol Corp., Class A	$	3,505,442
17,210	Mettler-Toledo International, Inc.(b)		1,632,541
18,325	Tyco Electronics Ltd.		656,401

			5,794,384

	Energy Equipment & Services — 5.1%
20,997	Atwood Oceanics, Inc.(b)		2,610,767
55,660	Complete Production Services, Inc.(b)		2,027,137
80,213	Helix Energy Solutions Group, Inc.(b)(c)		3,340,069
25,331	Helmerich & Payne, Inc.		1,824,339
67,791	Nabors Industries Ltd.(b)(c)		3,337,351
47,907	National-Oilwell Varco, Inc.(b)		4,250,309
14,600	Schlumberger Ltd.		1,568,478
146,725	Tetra Technologies, Inc.(b)(c)		3,478,850
8,624	Transocean, Inc.(b)		1,314,211
24,200	Weatherford International Ltd.(b)		1,200,078

			24,951,589

	Food & Staples Retailing — 2.2%
20,500	Costco Wholesale Corp.(c)		1,437,870
66,600	CVS Caremark Corp.		2,635,362
171,427	Spartan Stores, Inc.		3,942,821
42,100	Wal-Mart Stores, Inc.		2,366,020
18,500	Walgreen Co.		601,435

			10,983,508

	Gas Utilities — 1.7%
41,577	Oneok, Inc.		2,030,205
26,845	Questar Corp.		1,907,069
152,528	UGI Corp.		4,379,079

			8,316,353

	Health Care Equipment & Supplies — 3.6%
6,800	Alcon, Inc.		1,106,972
41,016	Beckman Coulter, Inc.		2,769,811
26,296	Cooper Cos., Inc. (The)(c)		976,896
52,318	Hologic, Inc.(b)(c)		1,140,532
114,013	Hospira, Inc.(b)		4,573,061
9,059	Intuitive Surgical, Inc.(b)(c)		2,440,495
70,800	Medtronic, Inc.(c)		3,663,900
27,777	NuVasive, Inc.(b)		1,240,521

			17,912,188

	Health Care Providers & Services — 0.5%
45,701	CorVel Corp.(b)		1,547,893
14,000	Express Scripts, Inc.(b)		878,080

			2,425,973

	Hotels, Restaurants & Leisure — 3.4%
169,700	Carnival Corp.(c)		5,593,312
102,100	McDonald’s Corp.		5,740,062
51,400	Starwood Hotels & Resorts Worldwide, Inc.(c)		2,059,598
75,285	Wyndham Worldwide Corp.		1,348,354
58,944	Yum! Brands, Inc.		2,068,345

			16,809,671

	Household Durables — 0.4%
33,400	Fortune Brands, Inc.(c)		2,084,494

	Household Products — 0.7%
36,828	Church & Dwight Co., Inc.		2,075,258
22,300	Procter & Gamble Co.		1,356,063

			3,431,321


Shares	Description	Value (†)

	Independent Power Producers & Energy Traders — 0.4%
41,906	NRG Energy, Inc.(b)(c)	$	1,797,767

	Industrial Conglomerates — 0.5%
30,900	General Electric Co.		824,721
25,999	Teleflex, Inc.		1,445,284

			2,270,005

	Insurance — 1.5%
146,993	American Equity Investment Life Holding Co.(c)		1,197,993
49,444	Assurant, Inc.		3,261,326
91,136	Employers Holdings, Inc.		1,886,515
100,401	Fidelity National Financial, Inc., Class A(c)		1,265,053

			7,610,887

	Internet & Catalog Retail — 0.5%
9,800	Amazon.com, Inc.(b)(c)		718,634
14,495	Priceline.com, Inc.(b)(c)		1,673,593

			2,392,227

	Internet Software & Services — 2.6%
97,361	Akamai Technologies, Inc.(b)(c)		3,387,189
19,524	Equinix, Inc.(b)(c)		1,741,931
7,500	Google, Inc., Class A(b)		3,948,150
169,684	United Online, Inc.(c)		1,701,931
224,709	Website Pros, Inc.(b)(c)		1,871,826

			12,651,027

	IT Services — 4.3%
53,401	Alliance Data Systems Corp.(b)(c)		3,019,826
234,098	Broadridge Financial Solutions, Inc.		4,927,763
84,224	Fidelity National Information Services, Inc.(c)		3,108,708
20,500	Infosys Technologies Ltd., ADR(c)		890,930
17,353	MasterCard, Inc., Class A(c)		4,607,569
68,964	Total System Services, Inc.(c)		1,532,380
12,000	Visa, Inc., Class A(b)		975,720
82,108	Wright Express Corp.(b)		2,036,278

			21,099,174

	Life Sciences Tools & Services — 1.6%
10,900	Covance, Inc.(b)(c)		937,618
29,698	Illumina, Inc.(b)(c)		2,586,993
81,544	PerkinElmer, Inc.		2,271,000
35,300	Thermo Fisher Scientific, Inc.(b)(c)		1,967,269

			7,762,880

	Machinery — 2.6%
98,513	Actuant Corp., Class A(c)		3,088,383
40,210	Bucyrus International, Inc.		2,936,134
8,200	Deere & Co.(c)		591,466
27,535	Flowserve Corp.		3,764,035
45,741	Wabtec Corp.		2,223,927

			12,603,945

	Media — 2.7%
81,200	Comcast Corp., Special Class A		1,523,312
130,920	Interactive Data Corp.		3,290,020
23,605	Liberty Media Corp. - Capital, Series A(b)		339,912
52,100	Omnicom Group, Inc.(c)		2,338,248
141,000	Time Warner, Inc.		2,086,800
49,300	Viacom, Inc., Class B(b)		1,505,622
78,000	Walt Disney Co. (The)		2,433,600

			13,517,514

See accompanying notes to financial statements.

NATIXIS U.S. DIVERSIFIED PORTFOLIO — PORTFOLIO OF INVESTMENTS (continued)

Investments as of June 30, 2008 (Unaudited)


Shares	Description	Value (†)

	Metals & Mining — 2.4%
33,044	Cleveland-Cliffs, Inc.	$	3,938,514
23,783	Freeport-McMoRan Copper & Gold, Inc.		2,787,130
49,902	Steel Dynamics, Inc.(c)		1,949,671
17,624	United States Steel Corp.		3,256,563

			11,931,878

	Multi Utilities — 1.0%
139,294	MDU Resources Group, Inc.		4,855,789

	Multiline Retail — 0.7%
53,488	Big Lots, Inc.(b)(c)		1,670,965
48,712	Dollar Tree, Inc.(b)		1,592,395
11,500	J.C. Penney Corp., Inc.(c)		417,335

			3,680,695

	Office Electronics — 0.1%
46,000	Xerox Corp.		623,760

	Oil, Gas & Consumable Fuels — 5.6%
45,713	Alpha Natural Resources, Inc.(b)		4,767,409
26,800	Comstock Resources, Inc.(b)		2,262,724
36,278	CONSOL Energy, Inc.(c)		4,076,559
33,173	EXCO Resources, Inc.(b)		1,224,415
24,211	Massey Energy Co.		2,269,781
94,038	Petrohawk Energy Corp.(b)		4,354,900
15,600	Petroleo Brasileiro SA, ADR		1,104,948
38,379	SandRidge Energy, Inc.(b)(c)		2,478,516
54,323	Southwestern Energy Co.(b)		2,586,318
23,119	Whiting Petroleum Corp.(b)		2,452,464

			27,578,034

	Personal Products — 0.6%
118,270	Alberto-Culver Co.		3,106,953

	Pharmaceuticals — 3.3%
25,500	Abbott Laboratories		1,350,735
55,374	Elan Corp. PLC, Sponsored ADR(b)		1,968,546
68,400	GlaxoSmithKline PLC, Sponsored ADR		3,024,648
22,000	Johnson & Johnson		1,415,480
65,643	Perrigo Co.(c)		2,085,478
256,300	Schering-Plough Corp.		5,046,547
30,900	Teva Pharmaceutical Industries Ltd., Sponsored ADR		1,415,220

			16,306,654

	Real Estate Management & Development — 0.4%
110,534	Forestar Real Estate Group, Inc.(b)(c)		2,105,673

	REITs — 0.6%
70,888	Potlatch Corp.(c)		3,198,467

	Road & Rail — 1.0%
66,200	Union Pacific Corp.		4,998,100

	Semiconductors & Semiconductor Equipment — 4.3%
73,550	Broadcom Corp., Class A(b)		2,007,179
436,200	Intel Corp.		9,369,576
121,715	Marvell Technology Group Ltd.(b)		2,149,487
44,900	NVIDIA Corp.(b)		840,528
234,457	ON Semiconductor Corp.(b)(c)		2,149,971
100,400	Texas Instruments, Inc.		2,827,264
46,065	Varian Semiconductor Equipment Associates, Inc.(b)(c)		1,603,983

			20,947,988

	Software — 2.9%
37,000	Adobe Systems, Inc.(b)		1,457,430
38,312	Ansys, Inc.(b)		1,805,262
33,067	Concur Technologies, Inc.(b)(c)		1,098,816


Shares		Description	Value (†)

		Software — continued
	71,994	McAfee, Inc.(b)	$	2,449,956
	52,270	MICROS Systems, Inc.(b)		1,593,712
	66,700	Microsoft Corp.		1,834,917
	72,700	Oracle Corp.(b)		1,526,700
	37,493	Salesforce.com, Inc.(b)		2,558,147

				14,324,940

		Specialty Retail — 3.2%
	72,900	Best Buy Co., Inc.(c)		2,886,840
	19,900	GameStop Corp., Class A(b)(c)		803,960
	81,200	Home Depot, Inc.		1,901,704
	55,400	Limited Brands, Inc.(c)		933,490
	58,100	Lowe’s Cos., Inc.		1,205,575
	130,844	Monro Muffler, Inc.(c)		2,026,774
	173,412	Pier 1 Imports, Inc.(b)(c)		596,537
	68,468	Ross Stores, Inc.(c)		2,431,983
	314,889	Sally Beauty Holdings, Inc.(b)(c)		2,034,183
	29,800	TJX Cos., Inc.		937,806

				15,758,852

		Textiles, Apparel & Luxury Goods — 1.4%
	27,100	Coach, Inc.(b)		782,648
	71,871	Fossil, Inc.(b)(c)		2,089,290
	94,157	Hanesbrands, Inc.(b)(c)		2,555,421
	28,200	NIKE, Inc., Class B		1,681,002

				7,108,361

		Thrifts & Mortgage Finance — 0.5%
	32,300	Federal National Mortgage Association(c)		630,173
	112,474	People’s United Financial, Inc.		1,754,594

				2,384,767

		Tobacco — 0.3%
	26,100	Philip Morris International, Inc.		1,289,079

		Water Utilities — 0.2%
	50,651	American Water Works Co., Inc.(b)		1,123,439

		Wireless Telecommunication Services — 0.8%
	40,314	American Tower Corp., Class A(b)		1,703,267
	14,682	Millicom International Cellular SA		1,519,587
	14,200	SBA Communications Corp., Class A(b)(c)		511,342

				3,734,196

		Total Common Stocks (Identified Cost $438,464,020)		477,482,846

Shares/ Principal Amount
	Short-Term Investments — 28.5%
	124,936,950	State Street Navigator Securities Lending Prime Portfolio(d)		124,936,950
$	15,125,258	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2008 at 1.300% to be repurchased at $15,125,804 on 7/1/2008, collateralized by $15,325,000 Federal Home Loan Mortgage Corp., 3.500% due 5/05/2011 valued at $15,439,938 including accrued interest (Note 2g of Notes to Financial Statements)		15,125,258

		Total Short-Term Investments (Identified Cost $140,062,208)		140,062,208


		Total Investments — 125.6% (Identified Cost $578,526,228)(a)		617,545,054

		Other assets less liabilities — (25.6)%		(125,765,125	)

		Net Assets — 100%	$	491,779,929

See accompanying notes to financial statements.

NATIXIS U.S. DIVERSIFIED PORTFOLIO — PORTFOLIO OF INVESTMENTS (continued)

Investments as of June 30, 2008 (Unaudited)


(†)	See Note 2a of Notes to Financial Statements.
(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales and return of capital included in dividends received from the Fund’s investments in REITs.):
	At June 30, 2008, the net unrealized appreciation on investments based on a cost of $578,553,664 for federal income tax purposes was as follows:

	Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	70,888,065
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(31,896,675	)

	Net unrealized appreciation	$	38,991,390


(b)	Non-income producing security.
(c)	All or a portion of this security was on loan to brokers at June 30, 2008.
(d)	Represents investment of securities lending collateral.
ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs are significantly influenced by trading on exchanges not located in the United States.
REITs	Real Estate Investment Trusts

Net Asset Summary at June 30, 2008 (unaudited)


Capital Markets	6.8	%
Oil, Gas & Consumable Fuels	5.6
Energy Equipment & Services	5.1
Computers & Peripherals	4.7
IT Services	4.3
Semiconductors & Semiconductor Equipment	4.3
Health Care Equipment & Supplies	3.6
Hotels, Restaurants & Leisure	3.4
Chemicals	3.4
Pharmaceuticals	3.3
Specialty Retail	3.2
Software	2.9
Media	2.7
Internet Software & Services	2.6
Machinery	2.6
Commercial Services & Supplies	2.5
Metals & Mining	2.4
Consumer Finance	2.4
Food & Staples Retailing	2.2
Electrical Equipment	2.0
Other Investments, less than 2% each	27.1
Short-Term Investments	28.5

Total Investments	125.6
Other assets less liabilities	(25.6	)

Net Assets	100.0	%

See accompanying notes to financial statements.

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2008 (Unaudited)



	CGM Advisor Targeted Equity Fund		Hansberger International Fund			Harris Associates Focused Value Fund

ASSETS
Investments at cost	$	971,076,292	$	162,565,970		$	118,487,639
Net unrealized appreciation (depreciation)		117,517,831		19,597,641			(13,766,425	)

Investments at value (a)		1,088,594,123		182,163,611			104,721,214
Cash		3,260		—			—
Foreign currency at value (identified cost $0, $118,763, $0, $0, $0, $0)		—		118,744			—
Receivable for Fund shares sold		5,980,421		60,093			17,215
Receivable for securities sold		—		—			945,965
Receivable from investment advisor (Note 5)		—		—			—
Dividends and interest receivable		960,011		302,693			94,984
Tax reclaims receivable		3,535		114,631			—
Securities lending income receivable		58,732		38,038			7,675

TOTAL ASSETS		1,095,600,082		182,797,810			105,787,053

LIABILITIES
Collateral on securities loaned, at value (Note 2)		91,236,998		24,814,239			18,699,354
Payable for securities purchased		15,222,476		126,561			—
Payable for Fund shares redeemed		546,134		236,746			647,943
Management fees payable (Note 5)		556,052		108,207			70,207
Deferred Trustees’ fees (Note 5)		847,229		137,886			105,582
Administrative fees payable (Note 5)		41,952		8,378			4,757
Other accounts payable and accrued expenses		219,070		131,800			86,623

TOTAL LIABILITIES		108,669,911		25,563,817			19,614,466

NET ASSETS	$	986,930,171	$	157,233,993		$	86,172,587

NET ASSETS CONSIST OF:
Paid-in capital	$	831,526,631	$	132,137,448		$	105,888,983
Undistributed (overdistributed) net investment income (loss)		912,945		(732,731	)		(592,280	)
Accumulated net realized gain (loss) on investments and foreign currency transactions		36,972,764		6,216,089			(5,357,691	)
Net unrealized appreciation (depreciation) on investments and foreign currency translations		117,517,831		19,613,187			(13,766,425	)

NET ASSETS	$	986,930,171	$	157,233,993		$	86,172,587

COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	864,111,203	$	113,785,699		$	27,881,405

Shares of beneficial interest		72,695,879		5,789,057			3,711,174

Net asset value and redemption price per share	$	11.89	$	19.66		$	7.51

Offering price per share (100/94.25 of net asset value) (Note 1)	$	12.62	$	20.86		$	7.97

Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	25,135,831	$	20,472,267		$	29,225,346

Shares of beneficial interest		2,349,329		1,169,133			4,226,176

Net asset value and offering price per share	$	10.70	$	17.51		$	6.92

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	62,410,842	$	22,976,027		$	29,065,836

Shares of beneficial interest		5,839,797		1,316,485			4,202,464

Net asset value and offering price per share	$	10.69	$	17.45		$	6.92

Class Y shares :
Net assets	$	35,272,295	$	—		$	—

Shares of beneficial interest		2,893,034		—			—

Net asset value, offering and redemption price per share	$	12.19	$	—		$	—

(a) Including securities on loan with market values of:	$	85,855,899	$	23,910,236		$	18,114,814

See accompanying notes to financial statements.


Harris Associates Large Cap Value Fund			Vaughan Nelson Small Cap Value Fund			Natixis U.S. Diversified Portfolio


$	206,203,491		$	240,041,646		$	578,526,228
	(10,048,107	)		4,931,179			39,018,826

	196,155,384			244,972,825			617,545,054
	—			103,070			—
	—			—			—
	61,466			16,915,259			86,072
	1,523,413			857,971			6,125,456
	865			1,069			—
	222,213			143,494			359,331
	—			—			18,165
	8,690			25,775			52,496

	197,972,031			263,019,463			624,186,574


	26,183,678			45,881,710			124,936,950
	1,424,612			6,717,289			5,118,895
	369,970			193,490			1,136,527
	119,854			144,555			380,211
	354,776			142,358			484,417
	8,486			8,420			22,208
	153,393			69,821			327,437

	28,614,769			53,157,643			132,406,645

$	169,357,262		$	209,861,820		$	491,779,929


$	239,590,951		$	199,874,112		$	446,583,746
	234,241			(392,509	)		(870,092	)
	(60,419,823	)		5,449,038			7,045,819
	(10,048,107	)		4,931,179			39,020,456

$	169,357,262		$	209,861,820		$	491,779,929



$	133,966,546		$	133,009,578		$	361,492,080

	10,541,170			6,106,218			15,845,753

$	12.71		$	21.78		$	22.81

$	13.49		$	23.11		$	24.20


$	15,065,197		$	18,575,284		$	79,282,581

	1,286,447			939,431			3,980,291

$	11.71		$	19.77		$	19.92


$	11,198,492		$	22,421,437		$	39,443,392

	957,905			1,133,378			1,978,969

$	11.69		$	19.78		$	19.93


$	9,127,027		$	35,855,521		$	11,561,876

	693,339			1,636,721			472,300

$	13.16		$	21.91		$	24.48

$	25,413,262		$	44,437,621		$	120,726,870

STATEMENTS OF OPERATIONS

For the Six Months Ended June 30, 2008 (Unaudited)


	CGM Advisor Targeted Equity Fund			Hansberger International Fund			Harris Associates Focused Value Fund

INVESTMENT INCOME
Dividends	$	6,746,991		$	3,023,759		$	579,369
Interest		326,068			10,257			13,215
Securities lending income (Note 2)		246,461			178,697			45,874
Less net foreign taxes withheld		(417,753	)		(322,876	)		—

		6,901,767			2,889,837			638,458

Expenses
Management fees (Note 5)		3,060,055			666,161			478,650
Service fees - Class A (Note 5)		1,000,553			148,210			41,316
Service and distribution fees - Class B (Note 5)		134,626			120,710			182,199
Service and distribution fees - Class C (Note 5)		180,718			119,151			184,369
Trustees’ fees and expenses (Note 5)		14,617			6,374			5,863
Administrative fees (Note 5)		228,725			42,919			27,431
Custodian fees and expenses		18,533			51,659			9,057
Transfer agent fees and expenses - Class A (Note 5)		347,308			104,961			38,690
Transfer agent fees and expenses - Class B (Note 5)		11,737			21,410			42,614
Transfer agent fees and expenses - Class C (Note 5)		15,410			21,097			43,113
Transfer agent fees and expenses - Class Y (Note 5)		7,581			—			—
Audit and tax services fees		18,897			22,212			17,722
Legal fees		14,730			3,317			3,728
Shareholder reporting expenses		38,675			16,529			25,269
Registration fees		30,462			21,050			22,399
Miscellaneous expenses		15,718			6,165			7,822

Total expenses		5,138,345			1,371,925			1,130,242
Less fee reduction and/or expense reimbursement (Note 5)		(11,293	)		(2,114	)		(1,348	)

Net expenses		5,127,052			1,369,811			1,128,894

Net investment income (loss)		1,774,715			1,520,026			(490,436	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		43,121,202			6,565,486			(5,343,146	)
Foreign currency transactions		—			(126,182	)		—
Net change in unrealized appreciation (depreciation) on:
Investments		(93,042,394	)		(25,045,598	)		(13,676,947	)
Foreign currency translations		—			12,221			—

Net realized and unrealized loss on investments and foreign currency transactions		(49,921,192	)		(18,594,073	)		(19,020,093	)

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(48,146,477	)	$	(17,074,047	)	$	(19,510,529	)

*	Amount includes a special dividend of $368,055 in which the source of the dividend has not been determined by the issuer.

See accompanying notes to financial statements.


Harris Associates Large Cap Value Fund			Vaughan Nelson Small Cap Value Fund			Natixis U.S. Diversified Portfolio


$	1,848,183		$	838,752		$	3,401,086	*
	53,508			69,930			120,175
	52,109			126,979			344,506
	—			(484	)		(14,723	)

	1,953,800			1,035,177			3,851,044


	680,306			708,680			2,325,173
	190,354			136,912			460,094
	94,019			103,278			471,078
	64,768			105,740			206,882
	7,689			6,144			10,954
	50,122			40,545			133,175
	10,366			12,456			18,125
	171,934			114,393			344,113
	21,262			21,855			88,269
	14,630			22,231			38,698
	4,015			574			11,200
	18,046			17,057			21,595
	4,770			2,716			11,487
	23,476			20,151			53,843
	27,821			30,202			31,345
	8,913			7,138			14,525

	1,392,491			1,350,072			4,240,556
	(28,799	)		(62,426	)		(6,559	)

	1,363,692			1,287,646			4,233,997

	590,108			(252,469	)		(382,953	)



	2,511,109			5,557,464			8,248,900
	—			—			1,605

	(35,096,970	)		(7,236,911	)		(65,704,290	)
	—			—			246

	(32,585,861	)		(1,679,447	)		(57,453,539	)

$	(31,995,753	)	$	(1,931,916	)	$	(57,836,492	)

STATEMENTS OF CHANGES IN NET ASSETS


	CGM Advisor Targeted Equity Fund						Hansberger International Fund						Harris Associates Focused Value Fund
	Six Months Ended June 30, 2008 (unaudited)			Year Ended December 31, 2007			Six Months Ended June 30, 2008 (unaudited)			Year Ended December 31, 2007			Six Months Ended June 30, 2008 (unaudited)			Year Ended December 31, 2007

FROM OPERATIONS:
Net investment income (loss)	$	1,774,715		$	3,198,576		$	1,520,026		$	1,002,480		$	(490,436	)	$	(2,024,847	)
Net realized gain (loss) on investments and foreign currency transactions		43,121,202			80,201,690			6,439,304			20,165,643			(5,343,146	)		26,572,372
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(93,042,394	)		149,502,525			(25,033,377	)		5,253,593			(13,676,947	)		(35,355,327	)

Net increase (decrease) in net assets resulting from operations		(48,146,477	)		232,902,791			(17,074,047	)		26,421,716			(19,510,529	)		(10,807,802	)

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(55,857	)		(7,741,811	)		(198,627	)		(2,121,366	)		—			—
Class B		(2,292	)		(251,226	)		(44,583	)		(325,097	)		—			—
Class C		(2,959	)		(80,296	)		(44,589	)		(304,997	)		—			—
Class Y		(1,748	)		(178,444	)		—			—			—			—
Net realized capital gain
Class A		(28,890,996	)		(68,451,630	)		(2,454,423	)		(12,588,474	)		(589,535	)		(6,965,375	)
Class B		(1,056,920	)		(3,157,063	)		(534,401	)		(3,324,922	)		(700,775	)		(8,645,512	)
Class C		(1,410,865	)		(1,397,920	)		(547,933	)		(2,884,783	)		(699,005	)		(9,181,053	)
Class Y		(858,144	)		(1,283,819	)		—			—			—			—

Total distributions		(32,279,781	)		(82,542,209	)		(3,824,556	)		(21,549,639	)		(1,989,315	)		(24,791,940	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 9)		170,904,598			2,733,857			(6,277,034	)		10,155,626			(29,527,784	)		(55,787,929	)

Redemption fees
Class A		13,562			10,214			590			6,284			372			103
Class B		469			448			126			1,563			412			126
Class C		555			171			119			1,306			418			136
Class Y		399			191			—			—			—			—

		14,985			11,024			835			9,153			1,202			365

Net increase (decrease) in net assets		90,493,325			153,105,463			(27,174,802	)		15,036,856			(51,026,426	)		(91,387,306	)

NET ASSETS
Beginning of the period		896,436,846			743,331,383			184,408,795			169,371,939			137,199,013			228,586,319

End of the period	$	986,930,171		$	896,436,846		$	157,233,993		$	184,408,795		$	86,172,587		$	137,199,013

UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME (LOSS)	$	912,945		$	(798,914	)	$	(732,731	)	$	(1,964,958	)	$	(592,280	)	$	(101,844	)

See accompanying notes to financial statements.


Harris Associates Large Cap Value Fund						Vaughan Nelson Small Cap Value Fund						Natixis U.S. Diversified Portfolio
Six Months Ended June 30, 2008 (unaudited)			Year Ended December 31, 2007			Six Months Ended June 30, 2008 (unaudited)			Year Ended December 31, 2007			Six Months Ended June 30, 2008 (unaudited)			Year Ended December 31, 2007


$	590,108		$	546,870		$	(252,469	)	$	(527,258	)	$	(382,953	)	$	(2,828,122	)
	2,511,109			22,651,455			5,557,464			14,196,089			8,250,505			87,656,235
	(35,096,970	)		(28,970,313	)		(7,236,911	)		(6,164,382	)		(65,704,044	)		(7,024,685	)

	(31,995,753	)		(5,771,988	)		(1,931,916	)		7,504,449			(57,836,492	)		77,803,428



	(13,160	)		(1,054,288	)		—			—			—			—
	(244	)		(108,220	)		—			—			—			—
	(1,197	)		(53,175	)		—			—			—			—
	(864	)		(117,660	)		—			—			—			—

	—			—			(131,996	)		—			(6,526,030	)		(4,889,025	)
	—			—			(28,303	)		—			(1,841,377	)		(1,624,487	)
	—			—			(29,715	)		—			(822,425	)		(642,678	)
	—			—			(7,146	)		—			(205,454	)		(217,377	)

	(15,465	)		(1,333,343	)		(197,160	)		—			(9,395,286	)		(7,373,567	)

	(22,472,446	)		(39,807,186	)		60,189,106			7,783,917			(31,132,324	)		(88,754,703	)


	—			—			444			5,305			—			—
	—			—			89			1,559			—			—
	—			—			88			1,134			—			—
	—			—			19			38			—			—

	—			—			640			8,036			—			—

	(54,483,664	)		(46,912,517	)		58,060,670			15,296,402			(98,364,102	)		(18,324,842	)


	223,840,926			270,753,443			151,801,150			136,504,748			590,144,031			608,468,873

$	169,357,262		$	223,840,926		$	209,861,820		$	151,801,150		$	491,779,929		$	590,144,031

$	234,241		$	(340,402	)	$	(392,509	)	$	(140,040	)	$	(870,092	)	$	(487,139	)

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period.


	Income (Loss) from Investment Operations:											Less Distributions:

	Net asset value, beginning of the period		Net investment income (loss) (b)(f)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income (f)			Distributions from net realized capital gains			Total distributions			Redemption fees (f)

CGM ADVISOR TARGETED EQUITY FUND
Class A
6/30/2008(g)	$	13.01	$	0.03		$	(0.71	)	$	(0.68	)	$	(0.00	)	$	(0.44	)	$	(0.44	)	$	0.00
12/31/2007		10.70		0.05			3.54			3.59			(0.13	)		(1.15	)		(1.28	)		0.00
12/31/2006		10.22		0.08			0.78			0.86			(0.07	)		(0.31	)		(0.38	)		0.00
12/31/2005		9.05		0.07			1.12			1.19			(0.02	)		—			(0.02	)		0.00
12/31/2004		7.94		0.01			1.10			1.11			—			—			—			0.00
12/31/2003		5.56		(0.03	)		2.41			2.38			—			—			—			—
Class B
6/30/2008(g)		11.81		(0.02	)		(0.65	)		(0.67	)		(0.00	)		(0.44	)		(0.44	)		0.00
12/31/2007		9.84		(0.04	)		3.24			3.20			(0.08	)		(1.15	)		(1.23	)		0.00
12/31/2006		9.48		0.00			0.74			0.74			(0.07	)		(0.31	)		(0.38	)		0.00
12/31/2005		8.45		0.00			1.04			1.04			(0.01	)		—			(0.01	)		0.00
12/31/2004		7.47		(0.04	)		1.02			0.98			—			—			—			0.00
12/31/2003		5.28		(0.07	)		2.26			2.19			—			—			—			—
Class C
6/30/2008(g)		11.79		(0.02	)		(0.64	)		(0.66	)		(0.00	)		(0.44	)		(0.44	)		0.00
12/31/2007		9.84		(0.03	)		3.22			3.19			(0.09	)		(1.15	)		(1.24	)		0.00
12/31/2006		9.48		0.00			0.74			0.74			(0.07	)		(0.31	)		(0.38	)		0.00
12/31/2005		8.45		0.00			1.04			1.04			(0.01	)		—			(0.01	)		0.00
12/31/2004		7.47		(0.04	)		1.02			0.98			—			—			—			0.00
12/31/2003		5.27		(0.07	)		2.27			2.20			—			—			—			—
Class Y
6/30/2008(g)		13.32		0.04			(0.73	)		(0.69	)		(0.00	)		(0.44	)		(0.44	)		0.00
12/31/2007		10.93		0.09			3.61			3.70			(0.16	)		(1.15	)		(1.31	)		0.00
12/31/2006		10.42		0.11			0.82			0.93			(0.11	)		(0.31	)		(0.42	)		0.00
12/31/2005		9.23		0.10			1.14			1.24			(0.05	)		—			(0.05	)		0.00
12/31/2004		8.07		0.04			1.12			1.16			—			—			—			0.00
12/31/2003		5.63		0.01			2.43			2.44			—			—			—			—
HANSBERGER INTERNATIONAL FUND
Class A
6/30/2008(g)	$	22.17	$	0.21		$	(2.26	)	$	(2.05	)	$	(0.04	)	$	(0.42	)	$	(0.46	)	$	0.00
12/31/2007		21.50		0.18			3.29			3.47			(0.40	)		(2.40	)		(2.80	)		0.00
12/31/2006		19.88		0.16			4.51			4.67			(0.35	)		(2.70	)		(3.05	)		0.00
12/31/2005		17.12		0.11			2.65			2.76			—			—			—			0.00
12/31/2004		15.07		0.02			2.03			2.05			—			—			—			0.00
12/31/2003		10.84		(0.04	)		4.27			4.23			—			—			—			—
Class B
6/30/2008(g)		19.88		0.11			(2.02	)		(1.91	)		(0.04	)		(0.42	)		(0.46	)		0.00
12/31/2007		19.51		0.01			2.98			2.99			(0.22	)		(2.40	)		(2.62	)		0.00
12/31/2006		18.27		0.01			4.11			4.12			(0.18	)		(2.70	)		(2.88	)		0.00
12/31/2005		15.85		0.00			2.42			2.42			—			—			—			0.00
12/31/2004		14.06		(0.09	)		1.88			1.79			—			—			—			0.00
12/31/2003		10.19		(0.12	)		3.99			3.87			—			—			—			—

(a)	A sales charge for Class A and Class C (prior to February 1, 2004) shares and a contingent deferred sales charge for Class B and Class C shares are not reflected in total return calculations. Periods less than one year, if applicable, are not annualized.

(b)	Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(c)	Had certain expenses not been reduced during the period, if applicable, total return would have been lower.

(d)	The investment adviser and/or administrator has agreed to reimburse a portion of the Fund’s expenses and/or reduce its fees during the period. Without this reimbursement/fee reduction, if applicable, expenses would have been higher.

See accompanying notes to financial statements.


						Ratios to Average Net Assets:

Net asset value, end of the period		Total return (%) (a)(c)		Net assets, end of the period (000’s)		Net expenses (%) (d)(h)	Gross expenses (%) (e)(h)	Net investment income (loss) (%) (h)		Portfolio turnover rate (%)



$	11.89	(5.1	)	$	864,111	1.11	1.11	0.45		104
	13.01	34.4			826,867	1.17	1.17	0.45		179
	10.70	8.5			679,897	1.16	1.16	0.76		171
	10.22	13.2			694,121	1.28	1.28	0.78		196
	9.05	14.0			689,967	1.42	1.42	0.16		265
	7.94	42.8			724,214	1.57	1.57	(0.40	)	261

	10.70	(5.5	)		25,136	1.86	1.86	(0.29	)	104
	11.81	33.4			32,297	1.92	1.92	(0.34	)	179
	9.84	7.8			43,032	1.91	1.91	0.02		171
	9.48	12.4			53,005	2.03	2.03	0.03		196
	8.45	13.1			57,527	2.17	2.17	(0.58	)	265
	7.47	41.5			56,880	2.32	2.32	(1.14	)	261

	10.69	(5.4	)		62,411	1.86	1.87	(0.33	)	104
	11.79	33.5			19,753	1.93	1.93	(0.24	)	179
	9.84	7.7			8,688	1.90	1.90	0.04		171
	9.48	12.4			5,133	2.04	2.04	0.03		196
	8.45	13.1			3,214	2.17	2.17	(0.58	)	265
	7.47	41.8			2,647	2.32	2.32	(1.14	)	261

	12.19	(5.0	)		35,272	0.84	0.84	0.72		104
	13.32	34.8			17,520	0.90	0.90	0.74		179
	10.93	9.0			11,714	0.87	0.87	1.05		171
	10.42	13.4			11,181	1.07	1.07	0.99		196
	9.23	14.4			9,145	1.08	1.08	0.51		265
	8.07	43.3			7,773	1.03	1.03	0.16		261


$	19.66	(9.3	)	$	113,786	1.43	1.43	2.06		21
	22.17	16.4			128,224	1.45	1.45	0.79		47
	21.50	24.1			112,814	1.49	1.49	0.75		49
	19.88	16.1			89,663	1.81	1.81	0.62		45
	17.12	13.6			73,707	1.91	1.92	0.14		81
	15.07	39.0			59,762	2.30	2.32	(0.34	)	92

	17.51	(9.7	)		20,472	2.18	2.18	1.20		21
	19.88	15.6			29,770	2.20	2.20	0.06		47
	19.51	23.2			33,016	2.25	2.25	0.03		49
	18.27	15.3			33,388	2.55	2.55	(0.02	)	45
	15.85	12.7			45,213	2.66	2.67	(0.60	)	81
	14.06	38.0			60,296	3.05	3.07	(1.09	)	92

(e)	Represents the total expenses prior to fee reduction and/or reimbursement of a portion of the Fund’s expenses, if applicable.

(f)	Amount rounds to less than $0.01 per share, if applicable.

(g)	For the six months ended June 30, 2008 (Unaudited).

(h)	Computed on an annualized basis for periods less than one year, if applicable.

FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period.


	Income (Loss) from Investment Operations:											Less Distributions:

	Net asset value, beginning of the period		Net investment income (loss) (b)(f)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income (f)			Distributions from net realized capital gains			Total distributions			Redemption fees (f)

HANSBERGER INTERNATIONAL FUND (continued)
Class C
6/30/2008(k)	$	19.81	$	0.12		$	(2.02	)	$	(1.90	)	$	(0.04	)	$	(0.42	)	$	(0.46	)	$	0.00
12/31/2007		19.48		0.01			2.97			2.98			(0.25	)		(2.40	)		(2.65	)		0.00
12/31/2006		18.28		0.00			4.11			4.11			(0.21	)		(2.70	)		(2.91	)		0.00
12/31/2005		15.86		(0.02	)		2.44			2.42			—			—			—			0.00
12/31/2004		14.06		(0.09	)		1.89			1.80			—			—			—			0.00
12/31/2003		10.19		(0.12	)		3.99			3.87			—			—			—			—
HARRIS ASSOCIATES FOCUSED VALUE FUND
Class A
6/30/2008(k)	$	9.06	$	(0.02	)	$	(1.38	)	$	(1.40	)	$	—		$	(0.15	)	$	(0.15	)	$	0.00
12/31/2007		11.56		(0.06	)		(0.68	)(h)		(0.74	)		—			(1.76	)		(1.76	)		0.00
12/31/2006		12.08		(0.02	)		1.50			1.48			—			(2.00	)		(2.00	)		0.00
12/31/2005		13.06		(0.00	)		0.76			0.76			—			(1.74	)		(1.74	)		0.00
12/31/2004		11.79		(0.02	)		1.29			1.27			—			—			—			0.00
12/31/2003		9.24		(0.03	)		2.58			2.55			—			—			—			—
Class B
6/30/2008(k)		8.39		(0.04	)		(1.28	)		(1.32	)		—			(0.15	)		(0.15	)		0.00
12/31/2007		10.92		(0.14	)		(0.63	)(h)		(0.77	)		—			(1.76	)		(1.76	)		0.00
12/31/2006		11.59		(0.10	)		1.43			1.33			—			(2.00	)		(2.00	)		0.00
12/31/2005		12.69		(0.10	)		0.74			0.64			—			(1.74	)		(1.74	)		0.00
12/31/2004		11.55		(0.11	)		1.25			1.14			—			—			—			0.00
12/31/2003		9.12		(0.10	)		2.53			2.43			—			—			—			—
Class C
6/30/2008(k)		8.39		(0.04	)		(1.28	)		(1.32	)		—			(0.15	)		(0.15	)		0.00
12/31/2007		10.92		(0.14	)		(0.63	)(h)		(0.77	)		—			(1.76	)		(1.76	)		0.00
12/31/2006		11.59		(0.10	)		1.43			1.33			—			(2.00	)		(2.00	)		0.00
12/31/2005		12.69		(0.10	)		0.74			0.64			—			(1.74	)		(1.74	)		0.00
12/31/2004		11.55		(0.11	)		1.25			1.14			—			—			—			0.00
12/31/2003		9.12		(0.10	)		2.53			2.43			—			—			—			—
HARRIS ASSOCIATES LARGE CAP VALUE FUND
Class A
6/30/2008(k)	$	14.97	$	0.05		$	(2.31	)	$	(2.26	)	$	(0.00	)	$	—		$	(0.00	)	$	—
12/31/2007		15.49		0.05			(0.48	)(h)		(0.43	)		(0.09	)		—			(0.09	)		—
12/31/2006		13.33		0.06			2.13			2.19			(0.03	)		—			(0.03	)		—
12/31/2005		13.37		0.05			(0.08	)		(0.03	)		(0.01	)		—			(0.01	)		—
12/31/2004		12.25		0.04			1.08			1.12			—			—			—			—
12/31/2003		9.42		0.01			2.82			2.83			—			—			—			—
Class B
6/30/2008(k)		13.84		(0.00	)		(2.13	)		(2.13	)		(0.00	)		—			(0.00	)		—
12/31/2007		14.39		(0.06	)		(0.45	)(h)		(0.51	)		(0.04	)		—			(0.04	)		—
12/31/2006		12.48		(0.04	)		1.98			1.94			(0.03	)		—			(0.03	)		—
12/31/2005		12.62		(0.04	)		(0.09	)		(0.13	)		(0.01	)		—			(0.01	)		—
12/31/2004		11.64		(0.05	)		1.03			0.98			—			—			—			—
12/31/2003		9.02		(0.07	)		2.69			2.62			—			—			—			—

(a)	A sales charge for Class A and Class C (prior to February 1, 2004) shares and a contingent deferred sales charge for Class B and Class C shares are not reflected in total return calculations. Periods less than one year, if applicable, are not annualized.

(b)	Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(c)	The investment adviser and/or administrator has agreed to reimburse a portion of the Fund’s expenses and/or reduce its fees during the period. Without this reimbursement/fee reduction, if applicable, expenses would have been higher.

(d)	Had certain expenses not been reduced during the period, if applicable, total return would have been lower.

(e)	Portfolio turnover excludes the impact of assets resulting from a merger with another fund.

See accompanying notes to financial statements.


						Ratios to Average Net Assets:

Net asset value, end of the period		Total return (%) (a)(d)		Net assets, end of the period (000’s)		Net expenses (%) (c)(l)		Gross expenses (%) (g)(l)		Net investment income (loss) (%) (l)		Portfolio turnover rate (%)



$	17.45	(9.6	)	$	22,976	2.18		2.18		1.29		21
	19.81	15.5			26,414	2.20		2.20		0.04		47
	19.48	23.1			23,541	2.25		2.25		0.01		49
	18.28	15.3			19,388	2.56		2.56		(0.11	)	45
	15.86	12.8			17,046	2.66		2.67		(0.63	)	81
	14.06	38.0			12,557	3.05		3.07		(1.09	)	92


$	7.51	(15.5	)	$	27,881	1.61		1.61		(0.40	)	27
	9.06	(6.8	)		40,869	1.49		1.49		(0.51	)	51
	11.56	12.7			62,603	1.51		1.51		(0.12	)	36
	12.08	5.7			82,298	1.68		1.68		(0.04	)	39
	13.06	10.8			108,042	1.70		1.70		(0.15	)	26
	11.79	27.6			95,957	1.70		1.84		(0.28	)	30

	6.92	(15.9	)		29,225	2.36		2.36		(1.15	)	27
	8.39	(7.4	)		47,194	2.24		2.24		(1.26	)	51
	10.92	11.9			78,950	2.26		2.26		(0.87	)	36
	11.59	5.0			97,256	2.43		2.43		(0.80	)	39
	12.69	9.9			110,275	2.45		2.45		(0.90	)	26
	11.55	26.6			107,017	2.45		2.59		(1.03	)	30

	6.92	(15.8	)		29,066	2.35		2.36		(1.16	)	27
	8.39	(7.4	)		49,136	2.24		2.24		(1.26	)	51
	10.92	11.9			87,033	2.27		2.27		(0.88	)	36
	11.59	5.0			122,745	2.43		2.43		(0.79	)	39
	12.69	9.9			144,780	2.45		2.45		(0.90	)	26
	11.55	26.6			124,427	2.45		2.59		(1.03	)	30


$	12.71	(15.0	)	$	133,967	1.30		1.33		0.71		20
	14.97	(2.9	)		172,468	1.28	(i)(j)	1.28	(i)	0.35		30
	15.49	16.5			195,714	1.30		1.30		0.44		23
	13.33	(0.2	)		188,763	1.30		1.46		0.40		39
	13.37	9.1			222,434	1.30		1.49		0.30		27
	12.25	30.0			215,259	1.45		1.62		0.07		30	(e)

	11.71	(15.3	)		15,065	2.05		2.08		(0.03	)	20
	13.84	(3.7	)		23,916	2.04	(i)(j)	2.04	(i)	(0.44	)	30
	14.39	15.6			42,894	2.05		2.07		(0.33	)	23
	12.48	(1.0	)		59,035	2.05		2.21		(0.35	)	39
	12.62	8.4			79,949	2.05		2.24		(0.46	)	27
	11.64	29.1			91,085	2.20		2.37		(0.69	)	30	(e)

(f)	Amount rounds to less than $0.01 per share, if applicable.

(g)	Represents the total expenses prior to fee reduction and/or reimbursement of a portion of the Fund’s expenses, if applicable.

(h)	Includes a litigation payment of $0.02 per share.

(i)	Includes expense recapture of 0.00%, and 0.02% for Class A and B, respectively.

(j)	Effect of voluntary waiver of expenses by adviser was less than 0.005%.

(k)	For the six months ended June 30, 2008 (Unaudited).

(l)	Computed on an annualized basis for periods less than one year, if applicable.

FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period.


	Income (Loss) from Investment Operations:											Less Distributions:

	Net asset value, beginning of the period		Net investment income (loss) (b)(m)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income (m)			Distributions from net realized capital gains			Total distributions			Redemption fees (m)

HARRIS ASSOCIATES LARGE CAP VALUE FUND (continued)
Class C
6/30/2008(k)	$	13.82	$	(0.00	)	$	(2.13	)	$	(2.13	)	$	(0.00	)	$	—		$	(0.00	)	$	—
12/31/2007		14.37		(0.06	)		(0.45	)(j)		(0.51	)		(0.04	)		—			(0.04	)		—
12/31/2006		12.46		(0.04	)		1.98			1.94			(0.03	)		—			(0.03	)		—
12/31/2005		12.60		(0.04	)		(0.09	)		(0.13	)		(0.01	)		—			(0.01	)		—
12/31/2004		11.63		(0.05	)		1.02			0.97			—			—			—			—
12/31/2003		9.01		(0.07	)		2.69			2.62			—			—			—			—
Class Y
6/30/2008(k)		15.47		0.08			(2.39	)		(2.31	)		(0.00	)		—			(0.00	)		—
12/31/2007		16.01		0.12			(0.51	) (j)		(0.39	)		(0.15	)		—			(0.15	)		—
12/31/2006		13.72		0.12			2.20			2.32			(0.03	)		—			(0.03	)		—
12/31/2005		13.74		0.09			(0.10	)		(0.01	)		(0.01	)		—			(0.01	)		—
12/31/2004		12.54		0.07			1.13			1.20			—			—			—			—
12/31/2003		9.59		0.06			2.89			2.95			—			—			—			—
VAUGHAN NELSON SMALL CAP VALUE FUND
Class A
6/30/2008(k)	$	22.11	$	(0.01	)	$	(0.29	)	$	(0.30	)	$	—		$	(0.03	)	$	(0.03	)	$	0.00
12/31/2007		20.90		(0.02	)		1.23			1.21			—			—			0.00			0.00
12/31/2006		17.69		(0.05	)		3.26			3.21			—			—			0.00			0.00
12/31/2005		16.07		(0.08	)		1.70			1.62			—			—			0.00			0.00
12/31/2004		13.94		(0.13	)		2.26			2.13			—			—			0.00			0.00
12/31/2003		10.05		(0.19	)		4.08			3.89			—			—			—			—
Class B
6/30/2008(k)		20.15		(0.09	)		(0.26	)		(0.35	)		—			(0.03	)		(0.03	)		0.00
12/31/2007		19.19		(0.17	)		1.13			0.96			—			—			0.00			0.00
12/31/2006		16.36		(0.20	)		3.03			2.83			—			—			0.00			0.00
12/31/2005		14.97		(0.19	)		1.58			1.39			—			—			0.00			0.00
12/31/2004		13.08		(0.22	)		2.11			1.89			—			—			0.00			0.00
12/31/2003		9.51		(0.26	)		3.83			3.57			—			—			—			—
Class C
6/30/2008(k)		20.16		(0.09	)		(0.26	)		(0.35	)		—			(0.03	)		(0.03	)		0.00
12/31/2007		19.19		(0.17	)		1.14			0.97			—			—			0.00			0.00
12/31/2006		16.37		(0.19	)		3.01			2.82			—			—			0.00			0.00
12/31/2005		14.98		(0.19	)		1.58			1.39			—			—			0.00			0.00
12/31/2004		13.09		(0.22	)		2.11			1.89			—			—			0.00			0.00
12/31/2003		9.51		(0.26	)		3.84			3.58			—			—			—			—
Class Y
6/30/2008(k)		22.20		0.03			(0.29	)		(0.26	)		—			(0.03	)		(0.03	)		0.00
12/31/2007		20.91		0.04			1.25			1.29			—			—			0.00			0.00
12/31/2006(n)		19.02		0.02			1.87			1.89			—			—			—			—

(a)	A sales charge for Class A and Class C (prior to February 1, 2004) shares and a contingent deferred sales charge for Class B and Class C shares are not reflected in total return calculations. Periods less than one year, if applicable, are not annualized.

(b)	Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(c)	The investment adviser and/or administrator has agreed to reimburse a portion of the Fund’s expenses and/or reduce its fees during the period. Without this reimbursement/fee reduction, if applicable, expenses would have been higher.

(d)	Had certain expenses not been reduced during the period, if applicable, total return would have been lower.

(e)	Portfolio turnover excludes the impact of assets resulting from a merger with another fund.

(f)	Represents the total expenses prior to fee reduction and/or reimbursement of a portion of the Fund’s expenses, if applicable.

See accompanying notes to financial statements.


						Ratios to Average Net Assets:

Net asset value, end of the period		Total return (%) (a)(d)		Net assets, end of the period (000’s)		Net expenses (%) (c)(l)		Gross expenses (%) (f) (l)		Net investment income (loss) (%) (l)		Portfolio turnover rate (%)



$	11.69	(15.3	)	$	11,198	2.05		2.08		(0.04	)	20
	13.82	(3.7	)		15,616	2.04	(h)(i)	2.04	(h)(i)	(0.41	)	30
	14.37	15.6			18,089	2.05		2.06		(0.32	)	23
	12.46	(1.0	)		20,308	2.05		2.21		(0.35	)	39
	12.60	8.3			26,392	2.05		2.24		(0.42	)	27
	11.63	29.1			15,553	2.20		2.37		(0.69	)	30	(e)

	13.16	(14.8	)		9,127	0.93		0.93		1.08		20
	15.47	(2.6	)		11,840	0.91	(i)	0.91		0.72		30
	16.01	17.0			14,057	0.91	(g)	0.91	(g)	0.82		23
	13.72	(0.0	)		14,226	1.05		1.09		0.65		39
	13.74	9.6			18,027	0.99		0.99		0.58		27
	12.54	30.8			26,545	1.01		1.01		0.51		30	(e)


$	21.78	(1.4	)	$	133,010	1.45		1.53		(0.13	)	57
	22.11	5.8			103,719	1.49		1.57		(0.11	)	78
	20.90	18.1			85,285	1.59		1.59		(0.28	)	88
	17.69	10.1			58,963	1.92		1.92		(0.47	)	80
	16.07	15.3			45,138	2.01		2.01		(0.89	)	172
	13.94	38.7			45,442	2.33		2.33		(1.69	)	156

	19.77	(1.7	)		18,575	2.20		2.28		(0.92	)	57
	20.15	5.1			25,076	2.24		2.31		(0.84	)	78
	19.19	17.2			32,606	2.37		2.37		(1.10	)	88
	16.36	9.3			38,732	2.66		2.66		(1.24	)	80
	14.97	14.5			54,652	2.76		2.76		(1.65	)	172
	13.08	37.5			55,662	3.08		3.08		(2.44	)	156

	19.78	(1.7	)		22,421	2.20		2.28		(0.90	)	57
	20.16	5.1			21,765	2.24		2.32		(0.85	)	78
	19.19	17.2			18,186	2.35		2.35		(1.04	)	88
	16.37	9.3			13,667	2.67		2.67		(1.23	)	80
	14.98	14.4			13,549	2.76		2.76		(1.63	)	172
	13.09	37.6			12,042	3.08		3.08		(2.44	)	156

	21.91	(1.1	)		35,856	1.10		1.10		0.30		57
	22.20	6.1			1,241	1.19	(g)	1.19	(g)	0.17		78
	20.91	9.9			427	1.35		1.90		0.35		88

(g)	Includes expense recapture of 0.04%.

(h)	Includes expense recapture of 0.01%.

(i)	Effect of voluntary waiver of expenses by adviser was less than 0.005%.

(j)	Includes a litigation payment of $0.02 per share.

(k)	For the six months ended June 30, 2008 (Unaudited).

(l)	Computed on an annualized basis for periods less than one year, if applicable.

(m)	Amount rounds to less than $0.01 per share, if applicable.

(n)	From commencement of Class operations on August 31, 2006 through December 31, 2006.

FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period.


	Income (Loss) from Investment Operations:											Less Distributions:

	Net asset value, beginning of the period		Net investment income (loss) (b)(e)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income		Distributions from net realized capital gains			Total distributions

NATIXIS U.S. DIVERSIFIED PORTFOLIO
Class A
6/30/2008(h)	$	25.76	$	0.00	(i)	$	(2.53	)	$	(2.53	)	$	—	$	(0.42	)	$	(0.42	)
12/31/2007		22.94		(0.06	)		3.19			3.13			—		(0.31	)		(0.31	)
12/31/2006		20.17		0.04			2.73			2.77			—		—			—
12/31/2005		18.75		(0.11	)		1.53			1.42			—		—			—
12/31/2004		16.61		(0.12	)		2.26			2.14			—		—			—
12/31/2003		12.43		(0.13	)		4.31			4.18			—		—			—
Class B
6/30/2008(h)		22.63		(0.07	)(i)		(2.22	)		(2.29	)		—		(0.42	)		(0.42	)
12/31/2007		20.33		(0.22	)		2.83			2.61			—		(0.31	)		(0.31	)
12/31/2006		18.01		(0.11	)		2.43			2.32			—		—			—
12/31/2005		16.87		(0.22	)		1.36			1.14			—		—			—
12/31/2004		15.06		(0.23	)		2.04			1.81			—		—			—
12/31/2003		11.35		(0.22	)		3.93			3.71			—		—			—
Class C
6/30/2008(h)		22.65		(0.07	)(i)		(2.23	)		(2.30	)		—		(0.42	)		(0.42	)
12/31/2007		20.36		(0.22	)		2.82			2.60			—		(0.31	)		(0.31	)
12/31/2006		18.03		(0.11	)		2.44			2.33			—		—			—
12/31/2005		16.89		(0.22	)		1.36			1.14			—		—			—
12/31/2004		15.08		(0.23	)		2.04			1.81			—		—			—
12/31/2003		11.37		(0.22	)		3.93			3.71			—		—			—
Class Y
6/30/2008(h)		27.58		0.04	(i)		(2.72	)		(2.68	)		—		(0.42	)		(0.42	)
12/31/2007		24.45		0.03			3.41			3.44			—		(0.31	)		(0.31	)
12/31/2006		21.41		0.14			2.90			3.04			—		—			—
12/31/2005		19.82		(0.03	)		1.62			1.59			—		—			—
12/31/2004		17.46		(0.05	)		2.41			2.36			—		—			—
12/31/2003		12.98		(0.04	)		4.52			4.48			—		—			—

(a)	A sales charge for Class A and Class C (prior to February 1, 2004) shares and a contingent deferred sales charge for Class B and Class C shares are not reflected in total return calculations. Periods less than one year, if applicable, are not annualized.

(b)	Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(c)	The investment adviser and/or administrator has agreed to reimburse a portion of the Fund’s expenses and/or reduce its fees during the period. Without this reimbursement/fee reduction, if applicable, expenses would have been higher.

See accompanying notes to financial statements.


						Ratios to Average Net Assets:

Net asset value, end of the period		Total return (%) (a)(d)		Net assets, end of the period (000’s)		Net expenses (%) (c)(g)	Gross expenses (%) (f)(g)	Net investment income (loss) (%) (g)		Portfolio turnover rate (%)



$	22.81	(9.8	)	$	361,492	1.45	1.45	0.04		52
	25.76	13.7			407,228	1.47	1.47	(0.24	)	82
	22.94	13.7			393,430	1.46	1.46	0.17		83
	20.17	7.6			386,084	1.73	1.73	(0.57	)	97
	18.75	12.9			392,726	1.87	1.87	(0.71	)	104
	16.61	33.6			354,755	1.99	1.99	(0.94	)	102

	19.92	(10.1	)		79,283	2.20	2.20	(0.70	)	52
	22.63	12.8			119,028	2.21	2.21	(1.00	)	82
	20.33	12.9			147,819	2.22	2.22	(0.60	)	83
	18.01	6.8			174,745	2.48	2.48	(1.32	)	97
	16.87	12.0			223,349	2.62	2.62	(1.50	)	104
	15.06	32.7			272,533	2.74	2.74	(1.69	)	102

	19.93	(10.1	)		39,443	2.20	2.20	(0.71	)	52
	22.65	12.8			47,239	2.22	2.22	(0.99	)	82
	20.36	12.9			46,064	2.22	2.22	(0.59	)	83
	18.03	6.8			48,262	2.48	2.48	(1.32	)	97
	16.89	12.0			58,883	2.62	2.62	(1.48	)	104
	15.08	32.6			60,783	2.74	2.74	(1.69	)	102

	24.48	(9.7	)		11,562	1.18	1.18	0.30		52
	27.58	14.0			16,649	1.12	1.12	0.10		82
	24.45	14.2			21,155	1.03	1.03	0.60		83
	21.41	8.0			20,445	1.32	1.32	(0.16	)	97
	19.82	13.5			25,060	1.33	1.33	(0.27	)	104
	17.46	34.5			47,485	1.34	1.34	(0.30	)	102

(d)	Had certain expenses not been reduced during the period, if applicable, total return would have been lower.

(e)	Amount rounds to less than $0.01 per share, if applicable.

(f)	Represents the total expenses prior to fee reduction and/or reimbursement of a portion of the Fund’s expenses, if applicable.

(g)	Computed on an annualized basis for periods less than one year, if applicable.

(h)	For the six months ended June 30, 2008 (Unaudited).

(i)	Includes a special dividend of $0.02 per share in which the source of the dividend has not been determined by the issuer.

NOTES TO FINANCIAL STATEMENTS

June 30, 2008 (Unaudited)

1. Organization. Natixis Funds Trust I, Natixis Funds Trust II, and Natixis Funds Trust III (the “Trusts” and each a “Trust”) are each organized as a Massachusetts business trust. Each Trust is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. Each Declaration of Trust permits the Board of Trustees to authorize the issuance of an unlimited number of shares of the Trust in multiple series. Information presented in these financial statements pertains to certain equity funds of the Trusts; the financial statements for the other funds of the Trusts are presented in separate reports. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:

Natixis Funds Trust I:

CGM Advisor Targeted Equity Fund (the “Targeted Equity Fund”)

Hansberger International Fund (the “International Fund”)

Vaughan Nelson Small Cap Value Fund (the “Small Cap Value Fund”)

Natixis U.S. Diversified Portfolio (the “U.S. Diversified Portfolio”)

Natixis Funds Trust II:

Harris Associates Large Cap Value Fund (the “Large Cap Value Fund”)

Natixis Funds Trust III:

Harris Associates Focused Value Fund (the “Focused Value Fund”)

Each Fund offers Class A and Class C shares. Targeted Equity Fund, Small Cap Value Fund, Large Cap Value Fund and U.S. Diversified Portfolio also offer Class Y shares. Effective October 12, 2007, Class B shares are no longer offered. Existing Class B shareholders may continue to reinvest dividends into Class B shares and exchange their Class B shares for Class B shares of other Natixis Funds subject to existing exchange privileges as described in the Prospectus.

Class A shares are sold with a maximum front-end sales charge of 5.75%. Class B shares do not pay a front-end sales charge, but pay higher Rule 12b-1 fees than Class A shares for eight years (at which point they automatically convert to Class A shares), and are subject to a contingent deferred sales charge (“CDSC”) if those shares are redeemed within six years of purchase. Class C shares do not pay a front-end sales charge, do not convert to any other class of shares and pay higher Rule 12b-1 fees than Class A shares and may be subject to a CDSC of 1.00% if those shares are redeemed within one year. Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class Y shares are generally intended for institutional investors with a minimum initial investment of $100,000, though some categories of investors are exempted from the minimum investment amount as outlined in the Funds’ prospectus.

Most expenses of the Trusts can be directly attributed to a fund. Expenses which cannot be directly attributed to a fund are generally apportioned based on the relative net assets of each of the funds in the Trusts. Expenses of a fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (including the Rule 12b-1 service and distribution fees and transfer agent fees applicable to such class). In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of a fund if the fund were liquidated. The Trustees approve separate dividends from net investment income on each class of shares.

2. Significant Accounting Policies. The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

a. Security Valuation. Equity securities, including closed-end investment companies and exchange-traded funds, for which market quotations are readily available are valued at market value, as reported by pricing services recommended by the investment adviser and the subadvisers and approved by the Board of Trustees. Such pricing services generally use the security’s last sale price on the exchange or market where the security is primarily traded or, if there is no reported sale during the day, the closing bid price. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Markets are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking a NOCP, at the most recent bid quotation on the applicable NASDAQ Market. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Funds by a pricing service recommended by the investment adviser and the subadvisers and approved by the Board of Trustees, which service determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security.

In instances where broker-dealer bid quotations are not available, certain securities held by the Funds may be valued on the basis of a price provided by a principal market maker. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser or subadviser using consistently applied procedures under the general supervision of the Board of Trustees. Investments in other open-end investment companies are valued at their net asset value each day.

NOTES TO FINANCIAL STATEMENTS (continued)

June 30, 2008 (Unaudited)

Certain Funds may hold securities traded in foreign markets. Foreign securities are valued at the market price in the foreign market. However, if events occurring after the close of the foreign market (but before the close of regular trading on the New York Stock Exchange) are believed to materially affect the value of those securities, such securities are fair valued pursuant to procedures approved by the Board of Trustees. When fair valuing securities, the Funds may, among other things, use modeling tools or other processes that may take into account factors such as securities market activity and/or significant events that occur after the close of the foreign market and before the Funds calculate their net asset values. As of June 30, 2008, approximately 64% of the market value of the investments for the Hansberger International Fund was fair valued pursuant to procedures approved by the Board of Trustees.

b. Security Transactions and Related Investment Income. Security transactions are accounted for on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as the Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. Investment income is recorded net of foreign taxes withheld when applicable. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

c. Foreign Currency Translation. The books and records of the Funds are maintained in U.S. dollars. The value of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions.

Since the values of investment securities are presented at the foreign exchange rates prevailing at the end of the period, it is not practical to isolate that portion of the results of operations arising from changes in exchange rates from fluctuations which arise due to changes in market prices of the investment securities. Such changes are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, at the end of the fiscal period, resulting from changes in exchange rates.

Each Fund may use foreign currency exchange contracts to facilitate transactions in foreign-denominated investments. Losses may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts’ terms.

Each Fund may purchase investments of foreign issuers. Investing in securities of foreign issuers involves special risks and considerations not typically associated with investing in U.S. companies and securities of the U.S. government. These risks include revaluation of currencies and the risk of appropriation. Moreover, the markets for securities of many foreign issuers may be less liquid and the price of such securities may be more volatile than those of comparable U.S. companies and the U.S. government.

d. Forward Foreign Currency Contracts. The International Fund and the U.S. Diversified Portfolio may enter into forward foreign currency contracts. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell generally are used to hedge a Fund’s investments against currency fluctuation. Also, a contract to buy or sell can offset a previous contract. These contracts involve market risk in excess of the unrealized gain or loss reflected in the Funds’ Statement of Assets and Liabilities. The U.S. dollar value of the currencies a Fund has committed to buy or sell represents the aggregate exposure to each currency a Fund has acquired or hedged through currency contracts outstanding at period end.

All contracts are “marked-to-market” daily at the applicable exchange rates and any gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. At June 30, 2008, there were no open forward currency contracts.

e. Federal and Foreign Income Taxes. Each Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of the Funds’ tax positions taken on federal and state tax returns that remain subject to examinations (tax years December 31, 2004 – 2007) and has concluded that no provisions for income tax are required. Fund management is not aware of any events that are reasonably possible to occur in the next six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

A Fund may be subject to foreign taxes on income and gains on investments that are accrued based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign governments may also impose taxes or other payments on investments with respect to foreign securities. Such taxes are accrued as applicable.

NOTES TO FINANCIAL STATEMENTS (continued)

June 30, 2008 (Unaudited)

f. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for book and tax purposes of items such as net operating losses, foreign currency transactions and gains realized from passive foreign investment companies (“PFICs”). Permanent book and tax basis differences relating to shareholder distributions, net investment income, distributions from Real Estate Investment Trusts (“REITs”) and net realized gains will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to deferred Trustees’ fees, capital loss carryforwards, post October losses, wash sales, distributions from REITs and gains realized from PFICs. Distributions from net investment income and short-term capital gains are considered to be ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the year ended December 31, 2007 was as follows:


	2007 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
Targeted Equity Fund	$	52,469,601	$	30,072,608	$	82,542,209
International Fund		6,107,517		15,442,122		21,549,639
Focused Value Fund		2,372,807		22,419,133		24,791,940
Large Cap Value Fund		1,333,343		—		1,333,343
U.S. Diversified Portfolio		—		7,373,567		7,373,567

As of December 31, 2007, the capital loss carryforwards were as follows:


	Targeted Equity Fund	International Fund	Focused Value Fund	Large Cap Value Fund			Small Cap Value Fund	U.S. Diversified Portfolio
Capital loss carryforward:
Expires December 31, 2009	—	—	—	$	28,235,961	*	—	—
Expires December 31, 2010	—	—	—		24,633,843	*	—	—
Expires December 31, 2011	—	—	—		9,965,466		—	—

Total capital loss carryforward	—	—	—	$	62,835,270		—	—

*	Some of the losses expiring in 2009 and 2010 were obtained in the Fund’s merger with the Nvest Balanced Fund. These losses are subject to limitations.

g. Repurchase Agreements. Each Fund, through its custodian, receives delivery of the underlying securities collateralizing repurchase agreements. It is each Fund’s policy that the market value of the collateral be at least equal to 100% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held at the custodian bank in a segregated account for the benefit of the Fund and on behalf of the counterparty. It is each Fund’s policy, regarding tri-party arrangements, that the market value of the collateral be at least equal to 102% of the repurchase price, including interest. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities.

h. Securities Lending. The Funds have entered into an agreement with State Street Bank and Trust Company (“State Street Bank”), as agent of the Funds, to lend securities to certain designated borrowers. The loans are collateralized with cash or securities in an amount equal to at least 105% or 102% of the market value of the loaned international or domestic securities, respectively, when the loan is initiated. Thereafter, the value of the collateral must remain at least 102% of the market value of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value of loaned securities for non-U.S. equities; and at least 100% of the market value of loaned securities for U.S. government securities, sovereign debt issued by non-U.S. governments and non-U.S. corporate debt. In the event that the market value of the collateral falls below the required percentages described above, the borrower will deliver additional collateral on the next business day. As with other extensions of credit, the Funds may bear the risk of loss with respect to the investment of the collateral. The Funds invest cash collateral in short-term investments, a portion of the income from which is remitted to the borrowers and the remainder allocated between the Funds and State Street Bank as lending agent. The value of securities on loan to borrowers and the value of collateral held by the Funds with respect to such loans at June 30, 2008 were as follows:


Fund	Value of Securities on Loan		Value of Collateral
Targeted Equity Fund	$	85,855,899	$	91,236,998
International Fund		23,910,236		24,814,239
Focused Value Fund		18,114,814		18,699,354
Large Cap Value Fund		25,413,262		26,183,678
Small Cap Value Fund		44,437,621		45,881,710
U.S. Diversified Portfolio		120,726,870		124,936,950

NOTES TO FINANCIAL STATEMENTS (continued)

June 30, 2008 (Unaudited)

i. Indemnifications. Under the Trusts’ organizational documents, their officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

j. New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (“FAS 161”), was issued and will be effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requires enhanced disclosures about funds’ derivative and hedging activities. Management is currently evaluating the impact the adoption of FAS 161 will have on the Funds’ financial statement disclosures.

3. Fair Value Measurements. The Funds adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), effective January 1, 2008. For net asset value determination purposes, various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in the three broad levels listed below.

•

Level 1 – quoted prices in active markets for identical investments

•

Level 2 – other significant observable inputs (which could include quoted prices for similar investments, interest rates, credit risk, etc.)

•

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The following is a summary of the inputs used as of June 30, 2008 in valuing the Funds’ investments carried at value:

Targeted Equity Fund


Valuation Inputs	Investments in Securities
Level 1 – Quoted Prices	$	1,088,594,123
Level 2 – Other Significant Observable Inputs		—
Level 3 – Significant Unobservable Inputs		—

Total	$	1,088,594,123

International Fund


Valuation Inputs	Investments in Securities
Level 1 – Quoted Prices	$	65,262,052
Level 2 – Other Significant Observable Inputs		116,901,559
Level 3 – Significant Unobservable Inputs		—

Total	$	182,163,611

Focused Value Fund


Valuation Inputs	Investments in Securities
Level 1 – Quoted Prices	$	104,721,214
Level 2 – Other Significant Observable Inputs		—
Level 3 – Significant Unobservable Inputs		—

Total	$	104,721,214

Large Cap Value Fund


Valuation Inputs	Investments in Securities
Level 1 – Quoted Prices	$	196,155,384
Level 2 – Other Significant Observable Inputs		—
Level 3 – Significant Unobservable Inputs		—

Total	$	196,155,384

NOTES TO FINANCIAL STATEMENTS (continued)

June 30, 2008 (Unaudited)

Small Cap Value Fund


Valuation Inputs	Investments in Securities
Level 1 – Quoted Prices	$	244,972,825
Level 2 – Other Significant Observable Inputs		—
Level 3 – Significant Unobservable Inputs		—

Total	$	244,972,825

U.S. Diversified Portfolio


Valuation Inputs	Investments in Securities
Level 1 – Quoted Prices	$	617,545,054
Level 2 – Other Significant Observable Inputs		—
Level 3 – Significant Unobservable Inputs		—

Total	$	617,545,054

4. Purchases and Sales of Securities. For the six months ended June 30, 2008, purchases and sales of securities (excluding short-term investments) were as follows:


Fund	Purchases		Sales
Targeted Equity Fund	$	1,066,088,739	$	910,877,512
International Fund		35,422,326		41,789,202
Focused Value Fund		28,136,661		61,179,333
Large Cap Value Fund		38,255,165		56,527,131
Small Cap Value Fund		127,368,450		87,906,127
U.S. Diversified Portfolio		264,196,226		307,601,403

5. Management Fees and Other Transactions with Affiliates.

a. Management Fees. Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) serves as investment adviser to each Fund except the Targeted Equity Fund. Capital Growth Management Limited Partnership (“CGM”) is the investment adviser to the Targeted Equity Fund. Under the terms of the management agreements, each Fund pays a management fee at the following annual rates, calculated daily and payable monthly, based on each Fund’s average daily net assets:


	Percentage of Average Daily Net Assets
Fund	First $200 million		Next $300 million		Next $500 million		Next $1 billion		Over $2 billion
Targeted Equity Fund	0.75	%	0.70	%	0.65	%	0.65	%	0.60	%
International Fund	0.80	%	0.75	%	0.75	%	0.75	%	0.75	%
Focused Value Fund	0.90	%	0.90	%	0.90	%	0.90	%	0.90	%
Large Cap Value Fund	0.70	%	0.65	%	0.60	%	0.60	%	0.60	%
Small Cap Value Fund	0.90	%	0.90	%	0.90	%	0.90	%	0.90	%
U.S. Diversified Portfolio	0.90	%	0.90	%	0.90	%	0.80	%	0.80	%

Effective July 1, 2008, under the amended terms of its management agreement, the Focused Value Fund will pay a management fee at the annual rate of 0.80%, calculated daily and payable monthly, based on the Fund’s average daily net assets.

Natixis Advisors has entered into subadvisory agreements for each Fund as listed below.


International Fund		Hansberger Global Investors, Inc. (“Hansberger”)
Focused Value Fund		Harris Associates L.P. (“Harris”)
Large Cap Value Fund		Harris
Small Cap Value Fund		Vaughan Nelson Investment Management, L.P. (“Vaughan Nelson”)
U.S. Diversified Portfolio		Harris
		Loomis, Sayles & Company, L.P. (“Loomis Sayles”)
		BlackRock Investment Management LLC (“BlackRock”)

NOTES TO FINANCIAL STATEMENTS (continued)

June 30, 2008 (Unaudited)

Payments to Natixis Advisors are reduced in the amount of payments to the subadvisers.

Natixis Advisors has given binding undertakings to the Funds to reduce its management fees and/or reimburse certain expenses associated with these Funds to limit their operating expenses. These undertakings are in effect until April 30, 2009 and will be reevaluated on an annual basis. For the six months ended June 30, 2008, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:


	Expense limit as a Percentage of Average Daily Net Assets
Fund	Class A		Class B		Class C		Class Y
Focused Value Fund	1.70	%	2.45	%	2.45	%	—
Large Cap Value Fund	1.30	%	2.05	%	2.05	%	1.05	%
Small Cap Value Fund	1.45	%	2.20	%	2.20	%	1.20	%

Effective July 1, 2008, Natixis Advisors has given a binding undertaking to the U.S. Diversified Portfolio to reduce its management fee and/or reimburse certain expenses associated with this Fund to limit its operating expenses to 1.40%, 2.15%, 2.15% and 1.15% of the Fund’s average daily net assets for Class A, B, C, and Y shares, respectively. This undertaking is in effect until April 30, 2009 and will be reevaluated on an annual basis.

For the six months ended June 30, 2008, the management fees for each Fund were as follows:


Fund	Management Fee		Percentage of Average Daily Net Assets
Targeted Equity Fund	$	3,060,055	0.69	%
International Fund		666,161	0.80	%
Focused Value Fund		478,650	0.90	%
Large Cap Value Fund		680,306	0.70	%
Small Cap Value Fund		708,680	0.90	%
U.S. Diversified Portfolio		2,325,173	0.90	%

For the six months ended June 30, 2008, class specific expenses have been reimbursed as follows:


Fund	Reimbursement
Large Cap Value Fund	$	26,333
Small Cap Value Fund		60,419

Natixis Advisors shall be permitted to recover expenses it has borne under the expense limitation agreements (whether through a reduction of its management fee or otherwise) on a class by class basis in later periods to the extent the expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such reduced fees/expenses more than one year after the end of the fiscal year in which the fee/expense was reduced. The amounts subject to possible reimbursement under the expense limitation agreements at June 30, 2008 were as follows:


	Expenses Subject to Possible Reimbursement until December 31, 2008
Fund	Class A		Class B		Class C		Class Y		Total
Small Cap Value Fund	$	78,801	$	20,907	$	16,309	$	—	$	116,017

	Expenses Subject to Possible Reimbursement until December 31, 2009
Fund	Class A		Class B		Class C		Class Y		Total
Large Cap Value Fund	$	21,883	$	2,627	$	1,823	$	—	$	26,333
Small Cap Value Fund		43,454		8,428		8,537		—		60,419

Certain officers and directors of Natixis Advisors and its affiliates are also officers or Trustees of the Funds. Natixis Advisors, CGM, Hansberger, Harris, Loomis Sayles and Vaughan Nelson are subsidiaries of Natixis Global Asset Management, L.P. (“Natixis US”), which is part of Natixis Global Asset Management, an international asset management group based in Paris, France.

NOTES TO FINANCIAL STATEMENTS (continued)

June 30, 2008 (Unaudited)

b. Administrative Expense. Natixis Advisors provides certain administrative services for the Funds and subcontracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors (the “Administrative Services Agreement”), each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0675% of the first $5 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0625% of the next $5 billion, 0.0500% of the next $20 billion and 0.045% of such assets in excess of $30 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts , Loomis Sayles Funds Trusts and the Hansberger International Series of $5 million, which is reevaluated on an annual basis. New funds are subject to an annual fee of $50,000 plus $12,500 per class and an additional $50,000 if managed by multiple subadvisors in their first calendar year of operations.

Effective October 1, 2007, State Street Bank agreed to reduce the fees it receives from Natixis Advisors for serving as sub-administrator to the Funds. Also, effective October 1, 2007, Natixis Advisors gave a binding contractual undertaking to the Funds to waive the administrative fees paid by the Funds in an amount equal to the reduction in sub-administrative fees discussed above. The waiver was in effect through June 30, 2008.

Pursuant to an amendment to the Administrative Services Agreement, effective July 1, 2008, each Fund will pay Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0500% of the next $15 billion, 0.0425% of the next $30 billion and 0.0375% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds will be subject to an annual fee of $75,000 plus $12,500 per class and an additional $75,000 if managed by multiple subadvisers in their first calendar year of operations.

For the six months ended June 30, 2008, amounts paid to Natixis Advisors for administrative fees were as follows:


Fund	Gross Administrative Fees		Waiver of Administrative Fees		Net Administrative Fees
Targeted Equity Fund	$	228,725	$	11,293	$	217,432
International Fund		42,919		2,114		40,805
Focused Value Fund		27,431		1,348		26,083
Large Cap Value Fund		50,122		2,466		47,656
Small Cap Value Fund		40,545		2,007		38,538
U.S. Diversified Portfolio		133,175		6,559		126,616

c. Service and Distribution Fees. Natixis Distributors, L.P. (“Natixis Distributors”), a wholly-owned subsidiary of Natixis US. has entered into a distribution agreement with the Trusts. Pursuant to this agreement, Natixis Distributors serves as principal underwriter of the funds of the Trusts.

Pursuant to Rule 12b-1 under the 1940 Act, the Trusts have adopted a Service Plan relating to each Fund’s Class A shares (the “Class A Plans”) and a Distribution and Service Plan relating to each Fund’s Class B and Class C shares (the “Class B and Class C Plans”).

Under the Class A Plans, each Fund pays Natixis Distributors a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Class A shares, as reimbursement for expenses incurred by Natixis Distributors in providing personal services to investors in Class A shares and/or the maintenance of shareholder accounts.

Under the Class B and Class C Plans, each Fund pays Natixis Distributors a monthly service fee at an annual rate of 0.25% of the average daily net assets attributable to the Fund’s Class B and Class C shares, as compensation for services provided and expenses incurred by Natixis Distributors in providing personal services to investors in Class B and Class C shares and/or the maintenance of shareholder accounts.

Also under the Class B and Class C Plans, each Fund pays Natixis Distributors a monthly distribution fee at an annual rate of 0.75% of the average daily net assets attributable to the Fund’s Class B and Class C shares, as compensation for services provided and expenses incurred by Natixis Distributors in connection with the marketing or sale of Class B and Class C shares.

NOTES TO FINANCIAL STATEMENTS (continued)

June 30, 2008 (Unaudited)

For the six months ended June 30, 2008, the Funds paid the following service and distribution fees:


	Service Fee						Distribution Fee
Fund	Class A		Class B		Class C		Class B		Class C

Targeted Equity Fund	$	1,000,553	$	33,656	$	45,179	$	100,970	$	135,539
International Fund		148,210		30,177		29,788		90,533		89,363
Focused Value Fund		41,316		45,550		46,092		136,649		138,277
Large Cap Value Fund		190,354		23,505		16,192		70,514		48,576
Small Cap Value Fund		136,912		25,820		26,435		77,458		79,305
U.S. Diversified Portfolio		460,094		117,770		51,721		353,308		155,161

d. Sub-Transfer Agent Fees and Expenses. Natixis Distributors has entered into agreements with financial intermediaries to provide certain recordkeeping, processing, shareholder communications and other services to customers of the intermediaries and have agreed to compensate the intermediaries for providing those services. Certain services would be provided by the Funds if the shares of those customers were registered directly with the Funds’ transfer agent. Accordingly, the Funds agreed to pay a portion of the intermediary fees attributable to shares of the Funds held by the intermediary (which generally are a percentage of the value of shares held) not exceeding what the Funds would have paid its transfer agent had each customer’s shares been registered directly with the transfer agent instead of held through the intermediary. Natixis Distributors pays the remainder of the fees. Listed below are the fees incurred by the Funds which are included in the transfer agent fees and expenses in the Statements of Operations.


	Sub-Transfer Agent Fees
Fund	Class A		Class B		Class C		Class Y

Targeted Equity Fund	$	46,806	$	1,636	$	1,832	$	6,198
International Fund		16,376		3,505		3,321		—
Focused Value Fund		14,421		16,813		17,571		—
Large Cap Value Fund		19,806		2,661		1,797		3,632
Small Cap Value Fund		23,902		5,123		4,867		186
U.S. Diversified Portfolio		35,859		9,833		4,083		10,965

e. Commissions. The Funds have been informed that commissions (including CDSCs) on Fund shares paid to Natixis Distributors by investors in shares of the Funds during the six months ended June 30, 2008 were as follows:


Fund	Commission
Targeted Equity Fund	$	930,677
International Fund		79,189
Focused Value Fund		55,315
Large Cap Value Fund		57,215
Small Cap Value Fund		66,245
U.S. Diversified Portfolio		229,896

For the six months ended June 30, 2008, brokerage commissions for portfolio transactions paid to affiliated broker/dealers by the U.S. Diversified Portfolio were $12,322.

f. Trustees Fees and Expenses. The Funds do not pay any compensation directly to its officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distributors, Natixis US, or their affiliates. The Chairperson of the Board receives a retainer fee at the annual rate of $200,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $65,000. Each independent Trustee also receives a meeting attendance fee of $7,500 for each meeting of the Board of Trustees that he or she attends in person and $3,750 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, each committee chair receives an additional retainer fee at the annual rate of $10,000. Each Contract Review and Governance Committee member is compensated $5,000 for each Committee meeting that he or she attends in person and $2,500 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,250 for each Committee meeting that he or she attends in person and $3,125 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each Fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Each participating Trustee will receive an amount equal to the value that such deferred compensation would have been had it been invested in a designated fund or certain other funds of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series on the normal payment date. Deferred amounts remain in the funds until distributed in accordance with the Plan.

NOTES TO FINANCIAL STATEMENTS (continued)

For the Year Ended June 30, 2008 (Unaudited)

g. Redemption Fees. Effective June 2, 2008, the redemption fee imposed on Class A and Class Y shares of Targeted Equity Fund, International Fund, Focused Value Fund and Small Cap Value Fund was eliminated. Prior to June 2, 2008, shareholders of Class A and Class Y shares of the Funds were charged a 2% redemption fee if they redeemed, including redeeming by exchange, such shares within 60 days of their acquisition (including acquisition by exchange). The redemption fee was deducted from the shareholder’s redemption or exchange proceeds and was paid to the Funds. The fees were accounted for as an addition to paid-in capital and are presented on the Statements of Changes in Net Assets.

6. Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participates in a $200,000,000 committed line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each Fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.09% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit. For the six months ended June 30, 2008, the Funds had no borrowings under this agreement.

Prior to March 12, 2008, each Fund together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participated in a $75,000,000 committed line of credit provided by State Street Bank.

7. Brokerage Commission Recapture. Each Fund has entered into agreements with certain brokers whereby the brokers will rebate a portion of brokerage commissions. All amounts rebated by the brokers are returned to the Funds under such agreements and are included in realized gains on investments in the Statements of Operations. For the six months ended June 30, 2008, amounts rebated under these agreements were as follows:


Fund	Rebates
Targeted Equity Fund	$	293,690
International Fund		2,012
Small Cap Value Fund		7,497
U.S. Diversified Portfolio		37,108

8. Concentration of Risk. Focused Value Fund is a non-diversified fund. Compared with diversified mutual funds, the Focused Value Fund may invest a greater percentage of its assets in a particular company. Therefore, the Focused Value Fund’s returns could be significantly affected by the performance of any one of the small number of stocks in its portfolio.

9. Capital Shares. Each Fund may issue an unlimited number of shares of beneficial interest without par value. Transactions in capital shares were as follows:


	Six Months Ended June 30, 2008					Year Ended December 31, 2007
Targeted Equity Fund	Shares			Amount		Shares			Amount

Class A
Issued from the sale of shares	11,670,273		$	140,871,945		3,737,261		$	45,862,629
Issued in connection with the reinvestment of distributions	2,376,645			27,212,453		5,862,904			72,878,709
Redeemed	(4,885,412	)		(58,289,374	)	(9,585,214	)		(111,765,850	)

Net change	9,161,506		$	109,795,024		14,951		$	6,975,488

Class B
Issued from the sale of shares	88,285		$	955,821		262,400		$	2,812,834
Issued in connection with the reinvestment of distributions	96,866			1,000,641		283,544			3,180,585
Redeemed	(570,447	)		(6,194,959	)	(2,184,278	)		(22,947,868	)

Net change	(385,296	)	$	(4,238,497	)	(1,638,334	)	$	(16,954,449	)

Class C
Issued from the sale of shares	4,222,988		$	46,176,647		923,790		$	10,699,501
Issued in connection with the reinvestment of distributions	93,539			964,396		88,327			1,012,586
Redeemed	(151,920	)		(1,647,960	)	(220,223	)		(2,325,399	)

Net change	4,164,607		$	45,493,083		791,894		$	9,386,688

Class Y
Issued from the sale of shares	1,948,748		$	24,388,940		262,592		$	3,465,372
Issued in connection with the reinvestment of distributions	70,310			825,444		113,125			1,444,931
Redeemed	(441,559	)		(5,359,396	)	(132,427	)		(1,584,173	)

Net change	1,577,499		$	19,854,988		243,290		$	3,326,130

Increase (decrease) from capital share transactions	14,518,316		$	170,904,598		(588,199	)	$	2,733,857

NOTES TO FINANCIAL STATEMENTS (continued)

For the Year Ended June 30, 2008 (Unaudited)

9. Capital Shares (continued)



	Six Months Ended June 30, 2008					Year Ended December 31, 2007
International Fund	Shares			Amount		Shares			Amount

Class A
Issued from the sale of shares	690,577		$	14,360,492		870,349		$	20,307,759
Issued in connection with the reinvestment of distributions	122,878			2,463,649		615,505			13,642,851
Redeemed	(809,039	)		(16,752,351	)	(949,003	)		(22,012,908	)

Net change	4,416		$	71,790		536,851		$	11,937,702

Class B
Issued from the sale of shares	37,197		$	682,505		194,192		$	4,062,447
Issued in connection with the reinvestment of distributions	30,608			547,689		172,664			3,443,715
Redeemed	(396,266	)		(7,257,847	)	(561,815	)		(11,811,328	)

Net change	(328,461	)	$	(6,027,653	)	(194,959	)	$	(4,305,166	)

Class C
Issued from the sale of shares	72,098		$	1,316,435		233,746		$	4,957,792
Issued in connection with the reinvestment of distributions	25,445			453,682		121,350			2,409,103
Redeemed	(114,365	)		(2,091,288	)	(229,985	)		(4,843,805	)

Net change	(16,822	)	$	(321,171	)	125,111		$	2,523,090

Increase (decrease) from capital share transactions	(340,867	)	$	(6,277,034	)	467,003		$	10,155,626


	Six Months Ended June 30, 2008					Year Ended December 31, 2007
Focused Value Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	292,795		$	2,381,145		631,847		$	6,966,043
Issued in connection with the reinvestment of distributions	56,222			437,408		532,542			5,008,910
Redeemed	(1,147,531	)		(9,318,961	)	(2,070,078	)		(23,875,285	)

Net change	(798,514	)	$	(6,500,408	)	(905,689	)	$	(11,900,332	)

Class B
Issued from the sale of shares	32,103		$	246,963		310,935		$	2,940,601
Issued in connection with the reinvestment of distributions	72,803			522,563		729,290			6,359,477
Redeemed	(1,506,080	)		(11,331,369	)	(2,645,145	)		(28,682,591	)

Net change	(1,401,174	)	$	(10,561,843	)	(1,604,920	)	$	(19,382,513	)

Class C
Issued from the sale of shares	100,019		$	746,080		625,545		$	6,004,671
Issued in connection with the reinvestment of distributions	58,247			417,632		612,914			5,347,383
Redeemed	(1,813,645	)		(13,629,245	)	(3,352,102	)		(35,857,138	)

Net change	(1,655,379	)	$	(12,465,533	)	(2,113,643	)	$	(24,505,084	)

Increase (decrease) from capital share transactions	(3,855,067	)	$	(29,527,784	)	(4,624,252	)	$	(55,787,929	)

NOTES TO FINANCIAL STATEMENTS (continued)

For the Year Ended June 30, 2008 (Unaudited)

9. Capital Shares (continued).



	Six Months Ended June 30, 2008					Year Ended December 31, 2007
Large Cap Value Fund	Shares			Amount		Shares			Amount

Class A
Issued from the sale of shares	346,996		$	4,814,426		1,098,477		$	17,352,523
Issued in connection with the reinvestment of distributions	805			10,892		55,168			870,874
Redeemed	(1,330,611	)		(18,444,718	)	(2,264,640	)		(35,926,938	)

Net change	(982,810	)	$	(13,619,400	)	(1,110,995	)	$	(17,703,541	)

Class B
Issued from the sale of shares	11,855		$	150,023		133,358		$	1,953,515
Issued in connection with the reinvestment of distributions	123			1,533		6,268			95,395
Redeemed	(453,643	)		(5,788,722	)	(1,392,098	)		(20,396,796	)

Net change	(441,665	)	$	(5,637,166	)	(1,252,472	)	$	(18,347,886	)

Class C
Issued from the sale of shares	48,909		$	621,906		131,012		$	1,888,111
Issued in connection with the reinvestment of distributions	42			526		1,501			22,821
Redeemed	(221,170	)		(2,816,500	)	(261,095	)		(3,822,123	)

Net change	(172,219	)	$	(2,194,068	)	(128,582	)	$	(1,911,191	)

Class Y
Issued from the sale of shares	19,243		$	277,082		52,630		$	864,679
Issued in connection with the reinvestment of distributions	60			848		7,191			115,598
Redeemed	(91,243	)		(1,299,742	)	(172,407	)		(2,824,845	)
Net change	(71,940	)	$	(1,021,812	)	(112,586	)	$	(1,844,568	)

Increase (decrease) from capital share transactions	(1,668,634	)	$	(22,472,446	)	(2,604,635	)	$	(39,807,186	)


	Six Months Ended June 30, 2008					Year Ended December 31, 2007
Small Cap Value Fund	Shares			Amount		Shares			Amount

Class A
Issued from the sale of shares	2,093,983		$	44,563,320		1,451,447		$	31,978,338
Issued in connection with the reinvestment of distributions	5,849			118,381		—			—
Redeemed	(684,657	)		(14,449,531	)	(841,796	)		(18,480,247	)

Net change	1,415,175		$	30,232,170		609,651		$	13,498,091

Class B
Issued from the sale of shares	19,557		$	370,732		99,421		$	1,989,981
Issued in connection with the reinvestment of distributions	1,464			26,922		—			—
Redeemed	(326,126	)		(6,258,833	)	(554,258	)		(11,098,446	)

Net change	(305,105	)	$	(5,861,179	)	(454,837	)	$	(9,108,465	)

Class C
Issued from the sale of shares	181,734		$	3,442,937		332,854		$	6,647,049
Issued in connection with the reinvestment of distributions	1,186			21,844		—			—
Redeemed	(129,229	)		(2,441,322	)	(200,639	)		(4,038,911	)

Net change	53,691		$	1,023,459		132,215		$	2,608,138

Class Y
Issued from the sale of shares	1,593,400		$	35,063,411		35,602		$	788,793
Issued in connection with the reinvestment of distributions	257			5,216		—			—
Redeemed	(12,859	)		(273,971	)	(109	)		(2,640	)

Net change	1,580,798		$	34,794,656		35,493		$	786,153

Increase (decrease) from capital share transactions	2,744,559		$	60,189,106		322,522		$	7,783,917

NOTES TO FINANCIAL STATEMENTS (continued)

For the Year Ended June 30, 2008 (Unaudited)

9. Capital Shares (continued).



	Six Months Ended June 30, 2008					Year Ended December 31, 2007
U.S. Diversified Portfolio	Shares			Amount		Shares			Amount

Class A
Issued from the sale of shares	1,060,746		$	24,879,783		1,493,221		$	37,264,200
Issued in connection with the reinvestment of distributions	280,196			6,290,401		181,096			4,715,740
Redeemed	(1,301,257	)		(30,452,975	)	(3,017,079	)		(75,527,212	)

Net change	39,685		$	717,209		(1,342,762	)	$	(33,547,272	)

Class B
Issued from the sale of shares	55,539		$	1,143,152		339,734		$	7,394,658
Issued in connection with the reinvestment of distributions	90,480			1,776,151		68,470			1,566,593
Redeemed	(1,425,272	)		(29,268,112	)	(2,418,196	)		(53,258,701	)

Net change	(1,279,253	)	$	(26,348,809	)	(2,009,992	)	$	(44,297,450	)

Class C
Issued from the sale of shares	57,551		$	1,182,964		134,395		$	2,984,422
Issued in connection with the reinvestment of distributions	34,815			683,756		23,359			534,930
Redeemed	(198,784	)		(4,079,016	)	(335,383	)		(7,349,240	)

Net change	(106,418	)	$	(2,212,296	)	(177,629	)	$	(3,829,888	)

Class Y
Issued from the sale of shares	122,192		$	3,313,230		123,956		$	3,273,376
Issued in connection with the reinvestment of distributions	8,510			204,921		7,783			216,982
Redeemed	(262,170	)		(6,806,579	)	(393,194	)		(10,570,451	)

Net change	(131,468	)	$	(3,288,428	)	(261,455	)	$	(7,080,093	)

Increase (decrease) from capital share transactions	(1,477,454	)	$	(31,132,324	)	(3,791,838	)	$	(88,754,703	)

Item 2.

Code of Ethics.

Not applicable.

Item 3.

Audit Committee Financial Expert.

Not applicable.

Item 4.

Principal Accountant Fees and Services.

Not applicable.

Item 5.

Audit Committee of Listed Registrants.

Not applicable.

Item 6.

Schedule of Investments.

Included as part of the Report to Shareholders filed as Item 1 herewith.

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8.

Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.

Item 10.

Submission of Matters to a Vote of Securities Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11.

Controls and Procedures.

The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

There were no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12.

Exhibits.


(a)	(1)	Not applicable
(a)	(2)	Certifications of Principal Executive Officer and Principal Financial Officer pursuant to 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)), filed herewith as Exhibits (a)(2)(1) and (a)(2)(2), respectively.
(a)	(3)	Not applicable.
(b)		Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002 are filed herewith as Exhibit (b).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Natixis Funds Trust II

By:		/s/ David L. Giunta
Name: Title: Date:		David L. Giunta President and Chief Executive Officer August 26, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.




By:		/s/ David L. Giunta
Name: Title: Date:		David L. Giunta President and Chief Executive Officer August 26, 2008




By:		/s/ Michael C. Kardok
Name: Title: Date:		Michael C. Kardok Treasurer August 26, 2008