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)
888 Boylston Street, Suite 800 Boston, Massachusetts 02199-8197
(Address of principal executive offices) (Zip code)
Susan McWhan Tobin, Esq.
Natixis Distribution, LLC
888 Boylston Street, Suite 800
Boston, Massachusetts 02199-8197
(Name and address of agent for service)
Registrant’s telephone number, including area code: (617) 449-2139
Date of fiscal year end: November 30
Date of reporting period: November 30, 2023
Item 1. Reports to Stockholders.
| (a) | The Registrant’s annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows: |
Annual Report
November 30, 2023
| Loomis Sayles Global Growth Fund |
| Loomis Sayles Senior Floating Rate and Fixed Income Fund |
| Vaughan Nelson Select Fund |
Table of Contents
| 1 | |
| 18 | |
| 28 | |
| 44 |
IMPORTANT NOTICE TO SHAREHOLDERS
The Securities and Exchange Commission (SEC) has adopted new regulations
that will result in changes to the design and delivery of annual and semiannual shareholder reports. Beginning in July 2024, Funds will be required by the SEC to send shareholders a
paper copy of a new tailored shareholder report in place of the full shareholder report that is currently being provided. If you would like to receive shareholder reports and other communications from the Funds electronically, instead of by mail, you may make that request at www.icsdelivery.com/natixisfunds. If you have already elected to receive shareholder reports electronically,
you will not be affected by this change, and you need not take any action.
Loomis
Sayles Global Growth Fund
| Managers |
| Aziz V.
Hamzaogullari, CFA® |
| Loomis, Sayles & Company, L.P. |
| Symbols | |
| Class A |
LSAGX |
| Class C |
LSCGX |
| Class N |
LSNGX |
| Class Y |
LSGGX |
Investment Goal
The Fund’s investment goal is long-term growth of capital.
Market Conditions
The world equity markets delivered strong, double-digit gains in the annual period, albeit with elevated volatility. Although sentiment shifted considerably on a month-to-month basis, investors were generally cheered by expectations that falling inflation would allow the U.S. Federal Reserve (Fed) and other global central banks to stop raising interest rates. Late in the period, a consensus began to emerge that interest rate cuts were likely to begin as soon as the first half of 2024 – a shift that led to substantial gains for equities in November. Sentiment was further supported by the fact that global GDP and corporate earnings growth remained in positive territory, which raised optimism about a potential “soft landing” for the world economy. Together, these factors helped the broad-based global indexes finish November near their highest level of the previous 12 months.
The U.S. was a strong performer thanks to outsized gains for growth stocks generally and mega-cap, technology-related companies in particular. However, the majority of the U.S. market did not fare as well:
value stocks and mid-caps finished in modestly decent positive territory, and small
caps experienced an outright loss. Overseas, European equities generated robust returns as the economic impact of the war in Ukraine proved less severe than expected. On
the other hand, the Asia Pacific region lagged despite a double-digit return for Japan. The emerging markets, while posting a gain, also underperformed. Persistent
weakness in China, where economic growth came in below expectations, was the primary factor weighing on the asset class.
Performance Results
For the 12 months ended November 30, 2023, Class Y shares of the Loomis Sayles
Global Growth Fund returned 24.37% at net asset value. The Fund outperformed its benchmark, the MSCI All Country World Index (Net), which returned 12.01%.
Explanation of Fund Performance
We are an active manager with a long-term, private equity approach to investing.
Through our proprietary bottom-up research framework, we look to invest in those few high-quality businesses with sustainable competitive advantages and profitable growth
when they trade at a significant discount to intrinsic value. Given the rare confluence of quality, growth, and valuation, we may study dozens of companies but may only invest in a select few businesses each year. We believe identifying those few businesses with such characteristics is an art, not a science. As a result of this rigorous approach, ours is a selective, high-conviction portfolio of typically 30-45 names.
The Fund’s positions in Meta Platforms, MercadoLibre, and Amazon contributed the most to performance. Stock selection in the communication services, consumer discretionary, healthcare, and information technology sectors, as well as our allocations in the communication services, consumer discretionary, consumer staples, and financials sectors contributed positively to relative performance.
Meta Platforms operates online social networking platforms that allow people to connect, share, and interact with friends and communities. With 3.9 billion monthly users, 200 million businesses, and 10 million advertisers worldwide using its family of apps – Facebook, Messenger, WhatsApp, and Instagram – we believe the scale and reach of Meta’s network is unrivaled. A Fund holding since inception, Meta’s shares were under pressure throughout most of 2022, due to a perceived lack of discipline in the company’s capital expenditures – especially with respect to the metaverse – that coincided with what we believed was temporary fundamental weakness arising from the company’s transition to a new advertising format and maneuvering around privacy changes imposed by Apple in 2021. Our analysis suggested that Meta was being priced as if a high-quality, high-returning, growth company – whose returns on capital were many times larger than its cost of capital – would become a low-quality business that both ceased to grow and would also see its margins returns on invested capital deteriorate. We took advantage of near-term price weakness to add to our holdings on multiple occasions during 2022, most recently in November 2022. Despite ongoing macroeconomic pressure on advertising spending, Meta has since posted four consecutive quarters of better-than-expected financial results, including accelerating revenue growth in the last three quarters as it made further progress in navigating Apple’s privacy changes and saw improved monetization of its newest Reels video format. Following this period of temporary weakness and elevated investment spending, Meta
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Sayles Global Growth Fund
announced a set of efficiency measures that have already led to significant improvements in margins and lower capital expenditure plans, and shares responded positively to the company’s increased focus on productivity and cost management. We believe founder and CEO Mark Zuckerberg has always managed the company with a long-term focus and strong strategic vision. Over the past ten years, Meta has spent over $125 billion on research and development and $110 billion on capital expenditures – a level of investment that few firms can match, and which creates high barriers to entry for competitors that are further buttressed by the growth of cumulative knowledge over time. The successful development of a metaverse is not an explicit part of our investment thesis for Meta. However, given the potential size of the opportunity, which we estimate could impact over $1 trillion of spending over the long term, and Meta’s positioning with billions of users and hundreds of millions of businesses, we believe Meta’s current balanced approach to its forward-looking investments make sense. We expect that corporations will continue to allocate an increasing proportion of their advertising spending online, and Meta remains one of very few platforms where advertisers can reach consumers at such scale in such a targeted and effective fashion. We believe Meta’s brands, network, and targeting advantage position the company to take increasing share of the industry’s profit pool and grow its market share from approximately 6% currently to approximately 10% of the total global advertising market over our investment time horizon. On the basis of its core business alone, we believe the company is substantially undervalued and trades at a significant discount to our estimate of intrinsic value. In October, we modestly trimmed our position because it exceeded our maximum allowable position size of eight percent due to market appreciation.
MercadoLibre is the largest online commerce platform in Latin America. The company offers its users an ecosystem of six integrated e-commerce services that include its marketplace, payment and fintech solutions, shipping and logistics, advertising, classified listings, and merchant web services. The company operates in 18 countries representing the vast majority of Latin American GDP, and its 148 million active users in 2022 represented approximately 30% of the region’s estimated 480 million internet users. We believe MercadoLibre benefits from strong and sustainable competitive advantages that include its network and ecosystem, brand, and understanding of local markets that collectively contribute to its leadership position in each market it serves. A Fund holding since inception, the company delivered strong revenue growth that was consistently above consensus expectations, driven by growth in gross merchandise volume and payments, and continued market share gains in both e-commerce and payments. MercadoLibre remains in an elevated investment cycle to build out a more powerful ecosystem focused on greater product selection, easier payment options, wider credit availability, and lower cost and faster speed of delivery. The company also expects to increase its investments in several areas, including first-party sales, an improved loyalty program, and advertising technology. While these investments impact near-term profitability, operating margins still expanded substantially and exceeded expectations throughout the period, and we believe the investments have contributed to market share gains in e-commerce and payments and a stronger competitive position. We believe management remains focused on balancing the investments needed to further improve user experience and extend the company’s leadership in e-commerce and payments, while maintaining a sustainable and profitable financial model. With continued growth in internet access, increasing availability of credit, and the company’s continuing investments to improve the ease and convenience of transacting online, we believe MercadoLibre remains well positioned for sustained growth over the next decade, driven by the secular growth of e-commerce across Latin America. Over our forecast period, we believe the penetration of e-commerce can more than double, which would bring the penetration rate into the mid-20% level. We believe the current market price embeds expectations for key revenue and cash flow growth drivers that are well below our long-term assumptions. As a result, we believe the shares trade at a significant discount to our estimate of intrinsic value and offer a compelling long-term reward-to-risk opportunity.
Online retailer Amazon offers millions of products – sold by Amazon or by
third parties – with the value proposition to consumers of selection, price, and convenience. Amazon’s enterprise IT business, Amazon Web Services (AWS),
offers a suite of secure, on-demand cloud-computing services, with a value proposition to clients of speed, agility, and savings. In both of its core markets, we believe
Amazon possesses strong and sustainable competitive advantages that would be difficult for competitors to replicate. A Fund holding since inception, Amazon reported fundamentally solid low-double-digit revenue growth and much higher growth in operating profits that were both consistently above management’s guidance and consensus expectations during the period. While the company saw a deceleration in growth in AWS as businesses continue to optimize their cloud spending following a period of significant spending and more recent economic weakness, the deceleration was also apparent at both Microsoft and Alphabet. In the second half of the period, the optimization activity began to stabilize and Amazon observed companies once again focusing on innovation rather than cost reduction and bringing increasing workloads to the cloud. Over the past few years, Amazon made substantial investments to ensure that its fulfillment and transportation network remained unconstrained during the pandemic. As a result, the company doubled its fulfillment footprint – which took 25 years to build – and built out a transportation network to support last-mile delivery. Given the company’s long-tailed secular growth opportunities, over time we believe it will realize greater productivity and fixed cost leverage from these investments in labor, fulfillment, and distribution. The company showed efficiency gains during the year due in part to its decision to transition away from a national network and towards several smaller regional networks that resulted in faster and less expensive deliveries and contributed to operating margins expanding by over 200 basis points. However, expense pressures are expected to persist as the company progresses towards full utilization of its new investments. We believe Amazon is one of the best-positioned companies in e-commerce and enterprise IT – in each case addressing large, underpenetrated markets experiencing secular growth that is still in its early stages. We also expect Amazon’s strong position in the e-commerce market to support an emerging advertising
| 2
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Sayles Global Growth Fund
business, which has already reached a $44 billion annual revenue run rate. We believe the current share price shows a lack of appreciation for Amazon’s significant long-term growth opportunities and the sustainability of its business model. As a result, we believe the company is selling at a significant discount to our estimate of intrinsic value and offers a compelling reward-to-risk opportunity. We took advantage of price weakness early in the period to add to our holdings for the first time since 2016.
The Fund’s positions in Alnylam Pharmaceuticals, Adyen, and Doximity
detracted the most from performance. Stock selection in the financials and consumer staples sectors, along with our allocations in the information technology and
healthcare sectors, detracted from relative performance.
Alnylam Pharmaceuticals is a leader in gene therapies based on its pioneering small-interfering RNA (siRNA) approach to disease treatment. Founded in 2002, Alnylam was one of the first companies to develop and commercialize therapies based on RNA interference (RNAi), a breakthrough discovery in understanding how genes are naturally regulated within cells that was recognized with the 2006 Nobel Prize in Medicine. RNAi therapies exploit a naturally occurring biological pathway within cells that regulates the expression of specific genes. In particular, siRNA has proven to be one of the most effective approaches to RNAi therapy, and Alnylam remains the first and only company to successfully commercialize siRNA-based therapies. We believe Alnylam’s strong and sustainable competitive advantages include its deep, cumulative and compounding knowledge in the science of RNAi therapeutics, in particular its creation and advancement of unique siRNA-based therapies, and the multiple partnerships it has entered on the basis of its technology which provide both external funding and established commercialization avenues. Currently, the company’s technology is the basis for five approved therapies, ten therapies currently in clinical trials, and a robust pipeline of potential treatments that we expect to enter the clinic in the coming years, with a focus on genetic diseases, cardiometabolic diseases, infectious diseases, and central nervous system and ocular diseases. A strategy holding since the second quarter of 2021, shares responded negatively to the dimming prospects for patisiran, Alnylam’s approved therapy for hATTR amyloidosis, to receive regulatory approval in the larger, related indication of ATTR with cardiomyopathy (ATTR-CM). In October, the company decided to discontinue its bid to attain approval in favor of its more robust and longer trial for vutrisiran. Vutrisiran is also approved for hATTR amyloidosis, but the therapy is delivered via subcutaneous injection every three months, while patisiran requires intravenous administration every three weeks. While the outcomes for patisiran were positive and statistically significant, the FDA was likely to require further study, and the easier administration of vutrisiran, which was developed after patisiran, makes the therapy more commercially attractive. Vutrisiran is currently in Phase III clinical trials for ATTR-CM, with results expected in the first half of next year. We believe the uniqueness of Alnylam’s pioneering scientific expertise and technology is evident from both its existing products, which provide meaningful value to previously underserved patient populations, as well as the numerous partnerships in which world-class global pharmaceutical companies and specialty competitors alike have sought to access its proprietary technology. With its approved therapies and substantial pipeline of significant late-stage clinical programs, we believe the company has now reached the point at which its existing therapies will continue to contribute positively and its subsequent innovations will shift its financial profile from that of an early-stage biotech company to a profitable business with normalized margins that is able to internally fund its ongoing growth needs. Over our long-term investment horizon, we believe the company can generate substantial revenue growth, while turning profitable and generating substantial cumulative free cash flow. We believe Alnylam’s market price continues to substantially undervalue the potential contribution from the company’s clinical-stage assets – which we believe is unsupported by the company’s established track record for producing genetically validated therapeutics. Further, while embedded expectations reflect some success for its currently marketed products, we believe the market is focused on short-term profitability while ignoring the platform the company has built, that we believe will serve as the basis for ongoing innovation over our long-term investment horizon and beyond. As a result, we believe the company is selling at a substantial discount to our estimate of its intrinsic value and offers a compelling reward-to-risk opportunity.
Adyen is a global merchant acquisition and payment solutions provider based in
Amsterdam. Adyen was founded in 2006 to serve as a next-generation, integrated provider of payment solutions to merchants, and today the company supports over 250 payment
methods globally across online, mobile, and point-of-sale (POS) transactions for clients that include Facebook, McDonald’s, Microsoft, Netflix, and Uber. We believe Adyen’s strong and sustainable competitive advantages include its single, global platform and a high-profile client base with which it has built lasting relationships. A holding since strategy inception, shares fell sharply in August after the company reported financial results for the first half of 2023. While we believe the results reflected solid fundamentals, including continued market share gains and reported revenue growth in excess of 20%, 23% year-over-year growth in North America was below consensus expectations after the company had grown 52% in the prior-year period. Adyen observed merchants prioritizing cost savings over functionality, which it has experienced in prior periods and contributed to heightened competition for digital payment volumes. Growth was further pressured by a slower-than-desired pace of hiring for its North America sales team given the company’s stringent hiring standards – a headwind the company has discussed previously. Despite a smaller-than-desired sales staff, the company remains in an elevated investment cycle and has grown its total headcount by over 85% year to date. While positively reflecting the company’s long-term focus, the investments in staffing also pressured EBITDA (earnings before interest, taxes, depreciation, and amortization) margins, which declined to 43% in the first half of 2023 from 59% in the prior-year period. As the pace of hiring slows, the company expects to benefit from operating leverage and for EBITDA margins to again exceed 50% within a few years. Shares rebounded
3 |
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Sayles Global Growth Fund
substantially following the company’s brief third quarter update during its November analyst day. The company reported that third quarter revenue rose 27% in constant currency, which represented an acceleration from 19% constant-currency growth during the first half of 2023 and was well above consensus expectations. We believe Adyen remains a high-quality company with sustainable competitive advantages and secular growth opportunities that are not reflected in its current share price. We believe the secular shift to electronic-based payments from traditional paper-based systems represents the most significant growth driver for Adyen. While Adyen has been growing substantially faster than the leading global acquirers over the past few years, the company still captures only a small percentage of overall industry volumes. We believe a combination of industry- and company-specific factors will enable Adyen to continue to grow at more than twice the rate of growth in the overall payments industry over our long-term investment horizon. We also expect Adyen to benefit from the high incremental margins of its business, contributing to margin expansion and substantial cash flow growth over our forecast period. We believe Adyen’s strong growth prospects are not currently reflected in its share price. As a result, we believe the company’s shares are trading at a meaningful discount to our estimate of intrinsic value, offering an attractive reward-to-risk opportunity. We added to our holdings in both August and September to take advantage of near-term price weakness.
Doximity is a leading cloud-based platform specifically built for US medical
professionals (“MPs”). The company was founded in 2010 and has grown to over 2 million members, including approximately 800,000 physicians representing every
medical specialty. Doximity provides a single place for MPs to access productivity tools that enable collaboration with colleagues, secure coordination of patient care, virtual patient visits, customized medical news and research, and career management. Doximity is free to healthcare providers and monetizes its platform primarily by providing targeted marketing access to customers that are largely pharmaceutical manufacturers and healthcare systems, which accounted for over 90% of revenue in its most recent fiscal year. A portfolio holding since the first quarter of 2022, shares responded negatively to the company’s fiscal first quarter financial report in August. The company reported quarterly financial results that were fundamentally solid and in line with consensus expectations. However, management significantly lowered its full-year revenue guidance, implying 10% year-over-year growth versus a previous estimate of 20%. Doximity typically enters its fiscal year with approximately 60%-65% of subscription-based revenue already under contract, with a further 30%-35% generated through renewing and upselling existing customers – typically in the summer months. In 2023, the company experienced substantially lower upsell rates, which it attributed to slowing industry spending and the company’s “white-glove” approach to client sales that is more time-intensive than the programmatic banner advertising that captured share during the summer. We believe Doximity’s strong and sustainable competitive advantages include the power of its network, its “physicians first” focus, and its trusted reputation and brand. The company has firmly established itself as the de facto digital network for healthcare professionals, including over 80% of US physicians (up from 25% in 2013) and over 90% of graduating US medical students. Members average over 50 connections with Doximity colleagues, which drives utility through referrals, care coordination, knowledge exchange, and career management. A powerful network effect occurs as the number and engagement of members has increased; Doximity has more data to create engaging and useful products that are specifically tailored to physician workflows, which in turn drives higher membership and greater stickiness among users. Shares partially rebounded following the most recent earnings release in November 2023, which exceeded management’s guidance for revenue and operating profit, leading the company to modestly raise its full-year outlook. The company also reported that active workflow users reached record levels, as did the number of quarterly, monthly, weekly, and daily active users – suggesting continued strong levels of engagement among its physician user base. Notably, daily users grew the most, underscoring the integral role Doximity now plays in day-to-day patient care. Further, net revenue retention among the company’s 20 largest customers was 119%, versus 114% overall -- indicating that its most sophisticated and engaged clients continue to be the company’s fastest growing customer cohort. We believe Doximity’s primary growth driver is the secular shift from traditional marketing channels to digital channels, specifically in healthcare where digital spending has lagged due in part to a historic reliance on pharmaceutical sales representatives. Today, market intelligence firm IDC estimates less than 30% of healthcare advertising spending is via digital channels, versus 46% on an industry-wide basis and greater than 80% in industries such as computing, appliances, and media and entertainment. Given the superior return on investment (ROI) for digital advertising as opposed to traditional advertising, coupled with growing restrictions on the ability to gain access to key healthcare decision makers through traditional, in-person methods, we estimate that digital marketing expenditures will grow substantially over our long-term investment horizon to approach 50% of total healthcare advertising spending. As a physicians-first company, Doximity has historically allocated approximately 90% of its R&D (research and development) spending towards physician-facing products. The company intends to allocate a higher degree of R&D spending to build client-facing technologies that enable advertising clients to more-seamlessly direct incremental advertising dollars akin to other successful ad platforms and which likely benefited less-advantaged banner advertising during the quarter. The company is currently beta testing a new self-service client portal that it expects to be ready in advance of the 2024 upsell season. With its commanding penetration among healthcare decision makers and superior ROIs for advertisers, we believe Doximity can grow its capture of the digital opportunity from approximately 5% today to exceed 25%. Over our long-term investment horizon, we believe the company can generate approximately 20% compounded annual growth in overall revenues. As the company further penetrates its existing market and gains scale, we believe it will benefit from operating leverage, and that operating profits and free cash flow will grow faster than revenue. We believe Doximity’s share price embeds expectations for key revenue and cash flow growth drivers that are
| 4
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Sayles Global Growth Fund
well below our long-term assumptions. As a result, we believe the company is selling at a significant discount to our estimate of its intrinsic value and offers a compelling reward-to-risk opportunity. We added to our holdings in the company during the year.
All aspects of our quality-growth-valuation investment thesis must be present
simultaneously for us to make an investment. Often our research is completed well in advance of the opportunity to invest. We are patient investors and maintain coverage
of high-quality businesses in order to take advantage of meaningful price dislocations if and when they occur. During the period we initiated a new position in Arm Holdings. We added to our existing holdings in Adyen, Amazon, Block, Doximity, and Tesla. We trimmed our existing position in Novartis. We also trimmed our position in Meta Platforms as it exceeded our maximum allowable position size.
Outlook
Our investment process is characterized by bottom-up fundamental research and a
long-term investment time horizon. The nature of the process leads to a lower-turnover portfolio in which sector positioning is the result of stock selection. The Fund
ended the year with overweight positions in the communication services, consumer discretionary, and healthcare sectors and underweight positions in the financials, information technology, consumer staples, and industrials sectors. We did not own positions in the energy, materials, utilities or real estate sectors.
| Security Name |
% of Net Assets |
| 1 Meta Platforms, Inc., Class A |
7.29% |
| 2 MercadoLibre, Inc. |
6.96 |
| 3 Amazon.com, Inc. |
5.75 |
| 4 Alphabet, Inc., Class A |
4.94 |
| 5 Boeing Co. |
4.25 |
| 6 Microsoft Corp. |
4.19 |
| 7 Oracle Corp. |
3.82 |
| 8 Visa, Inc., Class A |
3.81 |
| 9 Shopify, Inc., Class A |
3.69 |
| 10 Novartis AG |
3.53 |
| The portfolio is actively managed and holdings are subject to change. There is no guarantee the Fund continues to invest in the securities referenced. The holdings
listed exclude any temporary cash investments, are presented on an individual security basis and do
not represent holdings of the issuer. |
5 |
Loomis
Sayles Global Growth Fund
| Hypothetical Growth of $100,000 Investment in Class Y
Shares1 |
| March 31,
2016 (inception) through November 30, 2023 |
See notes to chart on page 7.
| 6
Loomis
Sayles Global Growth Fund
| |
1 Year |
5 Years |
Life of Class |
Expense Ratios3 | ||
| |
Class Y/A/C |
Class N |
Gross |
Net | ||
| Class Y (Inception 3/31/16) |
|
|
|
|
|
|
| NAV |
24.37 % |
10.83 % |
11.86 % |
— % |
1.10 % |
0.95 % |
| Class A (Inception 3/31/16) |
|
|
|
|
|
|
| NAV |
23.92 |
10.52 |
11.57 |
— |
1.35 |
1.20 |
| With 5.75% Maximum Sales Charge |
16.83 |
9.22 |
10.71 |
— |
|
|
| Class C (Inception 3/31/16) |
|
|
|
|
|
|
| NAV |
23.03 |
9.71 |
10.73 |
— |
2.10 |
1.95 |
| With CDSC4
|
22.03 |
9.71 |
10.73 |
— |
|
|
| Class N (Inception 3/31/17) |
|
|
|
|
|
|
| NAV |
24.40 |
10.87 |
— |
11.39 |
1.02 |
0.90 |
| Comparative Performance |
|
|
|
|
|
|
| MSCI All Country World Index (Net)2
|
12.01 |
9.07 |
9.48 |
8.67 |
|
|
Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com/performance. Performance for other share classes
will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is
cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.
| 1 |
Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower. |
| 2 |
MSCI All Country World Index (Net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of
developed and emerging markets. |
| 3 |
Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in
the Financial Highlights section of this report under Ratios to Average Net
Assets. Net expenses reflect contractual expense limitations set to expire on 3/31/24. When a Fund’s expenses are below the limitation, gross and net expense ratios will be the same. See Note 5 of the Notes to Financial Statements for more information about
the Fund’s expense limitations. |
| 4 |
Performance for Class C shares assumes a 1.00% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of
purchase. |
7 |
Loomis
Sayles Senior Floating Rate and Fixed Income Fund
| Managers |
| John R.
Bell* |
| Michael L.
Klawitter, CFA ® |
| Heather M. Young,
CFA ® |
| Loomis, Sayles & Company, L.P. |
| Symbols | |
| Class A |
LSFAX |
| Class C |
LSFCX |
| Class N |
LSFNX |
| Class Y |
LSFYX |
| * |
Effective February 29, 2024, John R. Bell will no longer serve as portfolio manager of the Fund. |
Investment Goal
The Fund seeks to provide a high level of current income.
Market Conditions
The loan market saw a very strong performance during the period, buoyed by the high interest rate component of floating rate loans. Lower-rated loans generally outperformed, driven by larger price increases and better spreads. Defaults have continued to gently increase, while lower-rated loan prices remain modestly lower than their higher-rated counterparts. At the end of the period, loan prices hovered in the mid-90’s, 2-3 points higher than the beginning of the period, indicative of an easing in the market’s recession concerns.
The size of the benchmark loan index saw modest contraction during the period, and now stands at $1.4 trillion, as borrowers turned to the high yield and private credit markets. However, re-pricings, maturity extensions and amendments proliferated, especially among higher-rated issuers.
Retail loan fund flows have been mixed, recently returning to positive territory during the last month of the period, but were still in net outflows totaling $23.1 billion. Collateralized loan obligation (CLO) formation was strong and stood at $115.6 billion for the period.
Performance Results
For the 12 months ended November 30, 2023, Class Y shares of the Loomis Sayles
Senior Floating Rate and Fixed Income Fund returned 10.65% at net asset value. The Fund underperformed its benchmark, the Morningstar LSTA Leveraged Loan Index, which
returned 11.94%.
Explanation of Fund Performance
The Fund underperformed its benchmark for the period due to allocations outside of the benchmark. The bank loan allocation, which makes up the majority of the Fund’s holdings, outperformed.
The Fund’s high yield bond, Treasury and cash holdings all modestly detracted from relative performance, as these categories could not keep pace with the loan market. While our Treasury and cash positions detracted given the favorable loan returns for the period, we view those allocations as both dry powder and ballast in a market that has not yet decided which way the economy is headed.
The Fund saw positive contribution versus the benchmark constituents across almost
all bank loan ratings categories. The exception to this pattern were non-rated loans. In the non-rated bucket, we held an education technology loan that struggled during
the period. However, the Fund experienced limited defaults during the period and maintained a steady level of dividend income as interest rates remained high.
We target a yield advantage for the Fund versus the benchmark in most market conditions. A yield advantage can be enhanced through primary market new issue discounts and by swapping into loans or bonds with more appealing risk/return characteristics as those opportunities arise. Maintaining an appropriate liquidity policy is of paramount concern. The Fund is currently positioned with approximately 84% bank loans, 6% high yield bonds, and 10% held in cash on a trade-date basis.
We examine the relative attractiveness of the high yield bond market in relation to bank loans based on potential risk-adjusted return. We judge potential return on high yield bonds in comparison to loans in assessing whether the additional volatility in the bond market is appropriately compensated versus our benchmark. Currently, we view that tradeoff as poorly compensated in much of the bond
| 8
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Sayles Senior Floating Rate and Fixed Income Fund
market. We maintained a small position in Treasury bills to enhance yield beyond the short-term rates offered by the Fund’s custodian which enables us to boost fund liquidity while earning a return.
Outlook
The environment for loan credit quality has remained relatively stable despite the drag from inflation and market uncertainty, though earnings trends have become more mixed over the last two quarters. Loans have continued to perform strongly despite modest retail outflows and somewhat restrained CLO issuance when compared to historical levels. We attribute that to loan scarcity (too few new issues) and Federal Reserve (Fed) actions that continue to disappoint a market that is hoping rates decline. We agree with the market's expectation that default rates are increasing, but they remain relatively low due to both company-specific circumstances (ample liquidity, few loan maturities, and successful cost-savings programs) and capital structures that can withstand current macroeconomic headwinds.
We observed that inflationary cost pressures have, thus far, been well-absorbed by most companies to which we lend. We have observed that these companies have appropriately managed the increased borrowing costs associated with rate increases. We believe that most borrowers have hedged at least some of their rate risk.
Our macro base case shows odds of a downturn decreasing as our macro team has yet to see profits decline and unemployment increase before making an official call on recession. We think inflation is past its peak. Loomis Sayles’ Yield Curve Team expects Fed actions to be data dependent, with future interest rate changes reliant upon the patterns of jobless claims and employment.
As we look out 12 months, we suspect risk markets will be looking out 6+ months from there, which would be beyond the Loomis Sayles view of potential recession timing. If so, given a base rate today over 5% plus coupons averaging over 300 basis points, returns could remain quite strong even if base rates begin to come down. We think the economy may be entering a period with higher-for-longer rate volatility that may favor loans as part of an asset allocation that targets less return volatility. Our goal is to construct a portfolio that can withstand many pressures without suffering significant credit losses.
| Hypothetical Growth of $100,000 Investment in Class Y
Shares1 |
| November
30, 2013 through November 30, 2023 |
9 |
Loomis
Sayles Senior Floating Rate and Fixed Income Fund
| |
1 Year |
5 Years |
10 Years |
Life of
Class N |
Expense Ratios3 | |
| |
Gross |
Net | ||||
| Class Y |
|
|
|
|
|
|
| NAV |
10.65 % |
2.94 % |
3.52 % |
— % |
1.00 % |
0.75 % |
| Class A |
|
|
|
|
|
|
| NAV |
10.37 |
2.68 |
3.26 |
— |
1.25 |
1.00 |
| With 3.50% Maximum Sales Charge |
6.57 |
1.95 |
2.90 |
— |
|
|
| Class C |
|
|
|
|
|
|
| NAV |
9.56 |
1.90 |
2.64 |
— |
2.00 |
1.75 |
| With CDSC4 |
8.56 |
1.90 |
2.64 |
— |
|
|
| Class N (Inception 3/31/17) |
|
|
|
|
|
|
| NAV |
10.71 |
2.97 |
— |
3.18 |
0.97 |
0.70 |
| Comparative Performance |
|
|
|
|
|
|
| Morningstar LSTA Leveraged Loan Index2 |
11.94 |
4.91 |
4.29 |
4.58 |
|
|
Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com/performance. Performance for other share classes
will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is
cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.
| 1 |
Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower. |
| 2 |
Morningstar LSTA Leveraged Loan Index covers loan facilities and reflects the market-value-weighted performance of U.S. dollar-denominated institutional leveraged
loans. |
| 3 |
Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in
the Financial Highlights section of this report under Ratios to Average Net
Assets. Net expenses reflect contractual expense limitations set to expire on 3/31/25. When a Fund’s expenses are below the limitation, gross and net expense ratios will be the same. See Note 5 of the Notes to Financial Statements for more information about
the Fund’s expense limitations. |
| 4 |
Performance for Class C shares assumes a 1.00% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase, and
includes automatic conversion to Class A shares after eight years.
|
| 10
Vaughan
Nelson Select Fund
| Managers |
| Chris D. Wallis,
CFA®, CPA |
| Scott J. Weber,
CFA® |
| Vaughan Nelson Investment Management, L.P. |
| Symbols | |
| Class A |
VNSAX |
| Class C |
VNSCX |
| Class N |
VNSNX |
| Class Y |
VNSYX |
Investment Goal
The Fund seeks long-term capital appreciation.
Market Conditions
During the fiscal year ended November 30, 2023, the market began with sequential growth slowing in both the first and second quarters. Typically, banking stress develops once we are well into a recession as the ability for borrowers to service debt becomes impaired. Given the rapid increase in interest rates, regional banks fell under tremendous pressure.
As we moved through the summer months, global growth continued to deteriorate as
the impact of aggressive rate increases affected economic fundamentals. In the U.S., the manufacturing and transportation sectors recessed and the service sector slowed
further. Offsetting the deteriorating economic environment were continued liquidity injections by the major non-U.S. central banks and the U.S. Federal Reserve’s (Fed) reverse repo facility, which became the primary source of liquidity for rebuilding the U.S. Treasury’s general account. This flood of liquidity boosted equity markets and dampened fixed income volatility, compressing fixed income spreads (the difference in yield between bonds with similar maturity but different credit quality).
Inflation peaked in the fourth quarter of 2022 and economic growth bottomed, which
set the stage for the move higher in U.S. equity markets during the first seven months of 2023. The reacceleration in growth coupled with declining inflation allowed the
market to begin pricing in a “soft landing” for the U.S. economy despite aggressive monetary policy tightening, the emergence of a banking crisis, and rising U.S. Treasury yields as the U.S. Treasury struggled to fund rising deficit spending. The Fed added fuel to the rally by aggressively pumping liquidity into the banking system to offset the material losses on bank balance sheets. As we approached the end of the fiscal year, the equity rally failed to broaden out and quickly corrected as rising oil prices, firming inflationary conditions, and a further slowing in economic growth challenged the “soft landing” thesis.
Performance Results
For the 12 months ended November 30, 2023, Class Y shares of the Vaughan Nelson Select Fund returned 10.81% at net asset value. The Fund underperformed its benchmark, the S&P 500® Index, which returned 13.84%.
Explanation of Fund Performance
The Fund underperformed on a relative basis during the period.
The largest detractor was in consumer staples, driven by security selection, with Dollar General the worst-performing name. Dollar General struggled with declining same-store sales due to lower-margin product mix shift, store safety and organization issues, and the lack of trade-down in consumer spend. While we expect management will be able to reverse these issues over time, the stock was sold to allocate capital into names with a better return opportunity.
An overweight to and selection within utilities impaired relative performance. NextEra Energy, Inc. was the most challenged name. NextEra Energy’s share price suffered from higher costs of capital threatening the growth rate for renewable energy projects. We expect the unregulated portion of the business will still be able to achieve outsized returns as capital costs stabilize.
An underweight to communication services, a top performing sector, also
detracted.
The Fund experienced positive attribution within
industrials, with Saia, Inc. leading the way. Saia is gaining share as a best-in-class operator as it invests to add terminal capacity while over-levered competitors
struggle to maintain operations.
An underweight to health care,
an underperforming sector, and selection within it aided relative performance with DexCom, Inc.. the best name in the space. As the technology leader in continuous
glucose monitoring (CGM), we expect that with increased insurance coverage and more data showing CGM use alongside semaglutide, Dexcom will achieve higher growth and
profitability.
Selection within consumer discretionary helped
on a relative basis. Amazon.com was the best performer due to investment in higher-margin business products such as AWS, subscriptions, and advertising.
11 |
Vaughan
Nelson Select Fund
Wheaton Precious Metals assisted in materials outperformance as it benefited from its simple operating structure which allows upside capture of silver and gold prices while cash costs remain contractually protected.
An underweight to and selection within financials aided relative performance. Berkshire Hathaway Inc. Class B was the top contributor. We believe that this diversified business conglomerate will continue to find opportunities to deploy capital and that the increased returns will be returned to shareholders.
An underweight to energy, an underperforming sector, contributed to performance.
Selection within real estate assisted, with the contribution led by Crown Castle Inc. (CCI). We believed that CCI’s small cell business
was undervalued as higher data consumption would drive the need for densified coverage. Activist attention brought forward potential realization of that value in the form of a multiple re-rating.
Lastly, Salesforce, Inc. drove outperformance in the information technology space. Salesforce’s focus on managing the business toward profitability, along with the sticky nature of its software products, will continue to increase shareholder returns.
Outlook
The reacceleration in economic growth that began in the fourth quarter of 2022 was
driven by a surge in federal spending that offset the developing industrial recession and continuing decline in real consumer spending. With the expiration of the Covid
stimulus in the third quarter of 2023, federal spending has peaked and will begin slowing as industrial and consumer spending continue to slow, setting the stage for a potentially recessionary condition in the fourth quarter of 2023 through the first half of 2024. Fortunately, there are signs that disinflationary pressures are building which may provide the Fed with sufficient policy flexibility to ease financial conditions, should the economic fundamentals deteriorate materially.
| Security Name |
% of Net Assets |
| 1 Microsoft Corp. |
7.12% |
| 2 Amazon.com, Inc. |
5.20 |
| 3 Alphabet, Inc., Class A |
4.72 |
| 4 Salesforce, Inc. |
4.54 |
| 5 Intercontinental Exchange, Inc. |
4.52 |
| 6 Sherwin-Williams Co. |
4.25 |
| 7 O'Reilly Automotive, Inc. |
4.17 |
| 8 Saia, Inc. |
4.10 |
| 9 Monolithic Power Systems, Inc. |
4.02 |
| 10 Berkshire Hathaway, Inc., Class B |
3.69 |
| The portfolio is actively managed and holdings are subject to change. There is no guarantee the Fund continues to invest in the securities referenced. The holdings
listed exclude any temporary cash investments, are presented on an individual security basis and do
not represent holdings of the issuer. |
| 12
Vaughan
Nelson Select Fund
| Hypothetical Growth of $100,000 Investment in Class Y
Shares1 |
| November
30, 2013 through November 30, 2023 |
13 |
Vaughan
Nelson Select Fund
| |
1 Year |
5 Years |
10 Years |
Life of
Class N |
Expense Ratios3 | |
| |
Gross |
Net | ||||
| Class Y |
|
|
|
|
|
|
| NAV |
10.81 % |
13.35 % |
11.99 % |
— % |
0.88 % |
0.85 % |
| Class A |
|
|
|
|
|
|
| NAV |
10.54 |
13.08 |
11.71 |
— |
1.12 |
1.10 |
| With 5.75% Maximum Sales Charge |
4.19 |
11.74 |
11.05 |
— |
|
|
| Class C |
|
|
|
|
|
|
| NAV |
9.65 |
12.23 |
11.05 |
— |
1.88 |
1.85 |
| With CDSC4
|
8.65 |
12.23 |
11.05 |
— |
|
|
| Class N (Inception 3/31/17) |
|
|
|
|
|
|
| NAV |
10.90 |
13.38 |
— |
13.18 |
3.35 |
0.80 |
| Comparative Performance |
|
|
|
|
|
|
| S&P 500® Index2
|
13.84 |
12.51 |
11.82 |
12.33 |
|
|
Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com/performance. Performance for other share classes
will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is
cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.
| 1 |
Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower. |
| 2 |
S&P 500® Index is a widely recognized measure of U.S. stock market performance. It is an unmanaged index of 500 common stocks chosen for market size, liquidity,
and industry group representation, among other factors. It also measures the
performance of the large cap segment of the U.S. equities market. |
| 3 |
Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in
the Financial Highlights section of this report under Ratios to Average Net
Assets. Net expenses reflect contractual expense limitations set to expire on 3/31/24. When a Fund’s expenses are below the limitation, gross and net expense ratios will be the same. See Note 5 of the Notes to Financial Statements for more information about
the Fund’s expense limitations. |
| 4 |
Performance for Class C shares assumes a 1.00% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase, and
includes automatic conversion to Class A shares after eight years.
|
| 14
ADDITIONAL
INFORMATION
All investing involves risk,
including the risk of loss. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.
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.
ADDITIONAL INDEX INFORMATION
This document may contain references to third party copyrights, indexes, and trademarks, each of which is the property of its respective owner. Such owner is not affiliated with Natixis Investment Managers or any of its related or affiliated companies (collectively “Natixis Affiliates”) and does not sponsor, endorse or participate in the provision of any Natixis Affiliates services, funds or other financial products.
The index information contained herein is derived from third parties and is provided on an “as is” basis. The user of this information assumes the entire risk of use of this information. Each of the third party entities involved in compiling, computing or creating index information disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to such information.
PROXY VOTING INFORMATION
A description of the Natixis Funds' proxy voting policies and procedures is
available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the Natixis Funds’ website at im.natixis.com, and on the Securities and
Exchange Commission (“SEC”) website at www.sec.gov. Information about how the Natixis Funds voted proxies relating to portfolio securities during the most
recent 12-month period ended June 30 is available through the Natixis Funds’ website and the SEC website.
QUARTERLY PORTFOLIO SCHEDULES
The Natixis Funds file a complete schedule of portfolio holdings with the SEC for
the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds’ Form N-PORT reports are available on the SEC website at
www.sec.gov. First and third quarter schedules of portfolio holdings are also available at im.natixis.com/funddocuments. A hard copy may be requested from the Fund at no charge by calling 800-225-5478.
TAILORED SHAREHOLDER REPORTS FOR MUTUAL FUNDS AND EXCHANGE-TRADED FUNDS
In October 2022, the Securities and Exchange Commission (SEC) adopted rule and form amendments requiring mutual funds and exchange-traded funds to transmit concise and visually engaging streamlined annual and semiannual reports that highlight key information to shareholders. Other information, including financial statements, will no longer appear in the funds’ shareholder reports but will be available online, delivered free of charge upon request, and filed with the SEC on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024.
CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.
15 |
Understanding Fund
Expenses
As a mutual fund shareholder, you incur different costs:
(1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service fees ("12b-1 fees"), and other fund expenses. Certain exemptions may
apply. These costs are described in more detail in the Funds’ prospectus. The following examples 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 June 1, 2023 through November 30, 2023. 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 for your class.
The second line in the table for 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 each 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. 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 funds. If transaction costs were included, total costs would be higher.
| Loomis Sayles Global Growth Fund |
Beginning
Account Value
6/1/2023 |
Ending
Account Value
11/30/2023 |
Expenses Paid
During Period* 6/1/2023 – 11/30/2023 |
| Class A |
|
|
|
| Actual |
$1,000.00 |
$1,084.10 |
$6.32 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,019.00 |
$6.12 |
| Class C |
|
|
|
| Actual |
$1,000.00 |
$1,079.70 |
$10.22 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,015.24 |
$9.90 |
| Class N |
|
|
|
| Actual |
$1,000.00 |
$1,086.10 |
$4.76 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,020.51 |
$4.61 |
| Class Y |
|
|
|
| Actual |
$1,000.00 |
$1,086.30 |
$5.02 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,020.26 |
$4.86
|
| * |
Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.21%, 1.96%, 0.91% and 0.96% for Class A, C,
N 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 (183), divided by 365 (to reflect the half-year period). |
| 16
| Loomis Sayles Senior Floating Rate and Fixed Income
Fund |
Beginning
Account Value
6/1/2023 |
Ending
Account Value
11/30/2023 |
Expenses Paid
During Period* 6/1/2023 – 11/30/2023 |
| Class A |
|
|
|
| Actual |
$1,000.00 |
$1,065.10 |
$5.23 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,020.01 |
$5.11 |
| Class C |
|
|
|
| Actual |
$1,000.00 |
$1,061.20 |
$9.09 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,016.24 |
$8.90 |
| Class N |
|
|
|
| Actual |
$1,000.00 |
$1,068.00 |
$3.68 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,021.51 |
$3.60 |
| Class Y |
|
|
|
| Actual |
$1,000.00 |
$1,066.40 |
$3.94 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,021.26 |
$3.85
|
| * |
Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.01%, 1.76%, 0.71% and 0.76% for Class A, C,
N 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 (183), divided by 365 (to reflect the half-year period). |
| Vaughan Nelson Select Fund |
Beginning
Account Value
6/1/2023 |
Ending
Account Value
11/30/2023 |
Expenses Paid
During Period* 6/1/2023 – 11/30/2023 |
| Class A |
|
|
|
| Actual |
$1,000.00 |
$1,040.80 |
$5.63 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,019.55 |
$5.57 |
| Class C |
|
|
|
| Actual |
$1,000.00 |
$1,037.00 |
$9.45 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,015.79 |
$9.35 |
| Class N |
|
|
|
| Actual |
$1,000.00 |
$1,042.60 |
$4.10 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,021.06 |
$4.05 |
| Class Y |
|
|
|
| Actual |
$1,000.00 |
$1,042.00 |
$4.35 |
| Hypothetical (5% return before expenses) |
$1,000.00 |
$1,020.81 |
$4.31
|
| * |
Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.10%, 1.85%, 0.80% and 0.85% for Class A, C,
N 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 (183), divided by 365 (to reflect the half-year period). |
17 |
Portfolio of Investments – as of November 30, 2023 Loomis Sayles Global Growth Fund
| Shares |
Description |
Value (†) |
| Common Stocks — 99.5% of Net Assets | ||
| |
Brazil — 9.4% | |
| 832,496 |
Ambev SA, ADR |
$2,281,039
|
| 4,100 |
MercadoLibre, Inc.(a) |
6,643,886 |
| |
|
8,924,925 |
| |
Canada — 3.7% | |
| 48,447 |
Shopify, Inc., Class A(a) |
3,527,911 |
| |
China — 10.5% | |
| 13,333 |
Alibaba Group Holding Ltd., ADR(a)(b) |
998,375 |
| 12,936 |
Baidu, Inc., ADR(a) |
1,534,986 |
| 144,932 |
Budweiser Brewing Co. APAC Ltd.(b) |
255,891 |
| 7,993 |
NXP Semiconductors NV |
1,631,212 |
| 60,400 |
Tencent Holdings Ltd.(b) |
2,516,212 |
| 54,285 |
Trip.com Group Ltd., ADR(a)(b) |
1,909,746 |
| 26,363 |
Yum China Holdings, Inc. |
1,138,354 |
| |
|
9,984,776 |
| |
Denmark — 3.0% | |
| 28,227 |
Novo Nordisk AS, Class B |
2,883,801 |
| |
France — 0.9% | |
| 7,793 |
Sodexo SA |
835,111 |
| |
Japan — 1.9% | |
| 66,000 |
FANUC Corp. |
1,832,547 |
| |
Netherlands — 3.3% | |
| 2,658 |
Adyen NV(a) |
3,107,882 |
| |
Switzerland — 5.8% | |
| 29,872 |
CRISPR Therapeutics AG(a) |
1,993,359 |
| 34,547 |
Novartis AG, (Registered) |
3,372,072 |
| 6,908 |
Sandoz Group AG(a) |
197,292 |
| |
|
5,562,723 |
| |
United Kingdom — 1.1% | |
| 5,793 |
Reckitt Benckiser Group PLC |
395,470 |
| 14,490 |
Unilever PLC |
691,141 |
| |
|
1,086,611 |
| |
United States — 59.9% | |
| 11,024 |
Alnylam Pharmaceuticals, Inc.(a) |
1,854,788 |
| 35,611 |
Alphabet, Inc., Class A(a) |
4,719,526 |
| 37,608 |
Amazon.com, Inc.(a) |
5,494,153 |
| 16,533 |
ARM Holdings PLC, ADR(a) |
1,016,779 |
| 3,884 |
Autodesk, Inc.(a) |
848,382 |
| 15,110 |
Block, Inc.(a) |
958,427 |
| 17,511 |
Boeing Co.(a) |
4,056,073 |
| 1,690 |
Deere & Co. |
615,853 |
| 36,329 |
Doximity, Inc., Class A(a) |
844,649 |
| 5,687 |
Expeditors International of Washington, Inc. |
684,374 |
| 55,333 |
Experian PLC |
2,034,241 |
| 21,269 |
Meta Platforms, Inc., Class A(a) |
6,958,153 |
| 10,557 |
Microsoft Corp. |
4,000,153 |
| 8,652 |
Nestle SA, (Registered) |
984,499 |
| 7,070 |
Netflix, Inc.(a) |
3,350,968 |
| 31,411 |
Oracle Corp. |
3,650,272 |
| 9,579 |
QUALCOMM, Inc. |
1,236,170 |
| 4,695 |
Roche Holding AG |
1,263,054 |
| 8,933 |
Salesforce, Inc.(a) |
2,250,223 |
| 12,119 |
SEI Investments Co. |
711,022 |
| 13,602 |
Tesla, Inc.(a) |
3,265,568 |
| 68,182 |
Under Armour, Inc., Class A(a) |
555,001 |
| 4,650 |
Vertex Pharmaceuticals, Inc.(a) |
1,649,866 |
| Shares |
Description |
Value (†) |
| |
United States — continued | |
| 14,163 |
Visa, Inc., Class A |
$3,635,359
|
| 4,796 |
Yum! Brands, Inc. |
602,138 |
| |
|
57,239,691 |
| |
Total Common Stocks (Identified Cost $80,470,632) |
94,985,978 |
| Principal
Amount |
|
|
| Short-Term Investments — 0.4% | ||
| $394,876
|
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 11/30/2023 at 2.500% to be repurchased at $394,903 on 12/01/2023 collateralized by $364,500 U.S. Treasury Note, 0.125% due 04/15/2026 valued at $402,850 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $394,876) |
394,876 |
| |
Total Investments — 99.9% (Identified Cost $80,865,508) |
95,380,854 |
| |
Other assets less liabilities — 0.1% |
115,624 |
| |
Net Assets — 100.0% |
$95,496,478 |
| (†) |
See Note 2 of Notes to Financial Statements. |
| (a)
|
Non-income producing security. |
| (b)
|
Security invests in variable interest entities based in China. See
Note 8 of Notes to Financial Statements. |
| 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
may be significantly influenced by trading on exchanges not located in the
United States. |
Industry Summary at November 30, 2023
| Interactive Media & Services |
16.4 % |
| Broadline Retail |
13.9 |
| Software |
11.3 |
| Financial Services |
8.1 |
| Pharmaceuticals |
8.0 |
| Biotechnology |
5.7 |
| Hotels, Restaurants & Leisure |
4.7 |
| Aerospace & Defense |
4.3 |
| Semiconductors & Semiconductor Equipment |
4.1 |
| IT Services |
3.7 |
| Entertainment |
3.5 |
| Automobiles |
3.4 |
| Beverages |
2.7 |
| Machinery |
2.6 |
| Professional Services |
2.1 |
| Other Investments, less than 2% each |
5.0 |
| Short-Term Investments |
0.4 |
| Total Investments |
99.9 |
| Other assets less liabilities |
0.1 |
| Net Assets |
100.0 % |
See accompanying notes to financial statements.
| 18
Portfolio of Investments – as of November 30, 2023 Loomis Sayles Global Growth Fund (continued)
Currency Exposure Summary at November
30, 2023
| United States Dollar |
78.7 % |
| Swiss Franc |
6.0 |
| Euro |
4.9 |
| Danish Krone |
3.0 |
| Hong Kong Dollar |
2.9 |
| British Pound |
2.5 |
| Japanese Yen |
1.9 |
| Total Investments |
99.9 |
| Other assets less liabilities |
0.1 |
| Net Assets |
100.0 % |
See accompanying notes to financial statements.
19 |
Portfolio of Investments – as of November 30, 2023 Loomis Sayles Senior Floating Rate and Fixed Income Fund
| Principal
Amount |
Description |
Value (†) |
| Senior Loans — 84.2% of Net Assets | ||
| |
Aerospace & Defense — 1.2% | |
| $4,471,370
|
Spirit Aerosystems, Inc., 2022 Term Loan, 3 mo. USD SOFR + 4.250%,9.633%, 1/15/2027(a)(b) |
$4,470,565
|
| 2,760,563 |
TransDigm, Inc., 2023 Term Loan I, 3 mo. USD SOFR + 3.250%,8.640%, 8/24/2028(a)(b) |
2,761,171 |
| 1,621,000 |
TransDigm, Inc., 2023 Term Loan J, 2/14/2031(c) |
1,619,249 |
| 2,300,000 |
Vertex Aerospace Services Corp., 2021 First Lien Term Loan, 1 mo. USD SOFR + 3.250%,8.698%, 12/06/2028(a)(b) |
2,297,493 |
| |
|
11,148,478 |
| |
Airlines — 1.9% | |
| 5,710,500 |
American Airlines, Inc., 2021 Term Loan, 3 mo. USD SOFR + 4.750%,10.427%, 4/20/2028(a)(b) |
5,789,019 |
| 3,269,869 |
LifeMiles Ltd., 2021 Term Loan B, 3 mo. USD SOFR + 5.250%,10.900%, 8/30/2026(a)(b) |
3,182,007 |
| 1,875,000 |
Mileage Plus Holdings LLC, 2020 Term Loan B, 3 mo. USD SOFR + 5.250%,10.798%, 6/21/2027(a)(b) |
1,930,538 |
| 2,452,533 |
SkyMiles IP Ltd., 2020 Skymiles Term Loan B, 3 mo. USD SOFR + 3.750%,9.166%, 10/20/2027(a)(b) |
2,503,742 |
| 4,779,931 |
United Airlines, Inc., 2021 Term Loan B, 1 mo. USD SOFR + 3.750%,9.207%, 4/21/2028(a)(b) |
4,774,482 |
| |
|
18,179,788 |
| |
Automotive — 2.5% | |
| 4,700,000 |
Clarios Global LP, 2023 Incremental Term Loan, 1 mo. USD SOFR + 3.750%,9.098%, 5/06/2030(a)(b) |
4,703,525 |
| 4,000,000 |
First Brands Group LLC, 2021 2nd Lien Term Loan, 6 mo. USD SOFR + 8.500%,14.381%, 3/30/2028(a)(b) |
3,745,000 |
| 5,495,727 |
First Brands Group LLC, 2021 Term Loan, 6 mo. USD SOFR + 5.000%,10.881%, 3/30/2027(a)(b) |
5,398,177 |
| 4,614,920 |
IXS Holdings, Inc., 2020 Term Loan B, 3 mo. USD SOFR + 4.250%,9.851%, 3/05/2027(a)(b) |
3,873,949 |
| 2,822,000 |
Phinia, Inc., Term Loan B, 3 mo. USD SOFR + 4.000%,9.490%, 7/03/2028(a)(b) |
2,829,055 |
| 2,890,070 |
Wheel Pros LLC, 2023 3rd Amendment Term Loan, USD SOFR + 4.500%,9.842%, 5/11/2028(a)(b) |
2,279,542 |
| 517,141 |
Wheel Pros LLC, 2023 FILO Term Loan, 1 mo. USD SOFR + 8.875%,14.330%, 2/10/2028(a)(b) |
554,634 |
| |
|
23,383,882 |
| |
Brokerage — 3.4% | |
| 3,589,449 |
AqGen Ascensus, Inc., 2021 2nd Lien Term Loan, 3 mo. USD SOFR + 6.500%,12.176%, 8/02/2029(a)(b) |
3,412,955 |
| 2,387,893 |
Citadel Securities LP, 2023 Term Loan B, 1 mo. USD SOFR + 2.500%,7.963%, 7/29/2030(a)(b) |
2,386,603 |
| 3,538,641 |
DRW Holdings LLC, 2021 Term Loan, 1 mo. USD SOFR + 3.750%,9.213%, 3/01/2028(a)(b) |
3,528,309 |
| 7,152,045 |
Edelman Financial Center LLC, 2018 2nd Lien Term Loan, 1 mo. USD SOFR + 6.750%,12.213%, 7/20/2026(a)(b) |
7,116,284 |
| 2,605,200 |
Eisner Advisory Group LLC, Term Loan, 1 mo. USD SOFR + 5.250%,10.713%, 7/28/2028(a)(b) |
2,600,328 |
| 3,258,000 |
Focus Financial Partners LLC, 2023 Term Loan B6, 1 mo. USD SOFR + 3.500%,8.848%, 6/30/2028(a)(b) |
3,255,687 |
| 3,800,000 |
Harbourvest Partners LLC, 2023 Term Loan B, 3 mo. USD SOFR + 3.000%,8.390%, 4/22/2030(a)(b) |
3,793,654 |
| 3,706,975 |
LHS Borrower LLC, 2022 Term Loan B, 1 mo. USD SOFR + 4.750%,10.198%, 2/16/2029(a)(b) |
3,257,505 |
| 3,989,601 |
Resolute Investment Managers, Inc., 2020 Term Loan C, 3 mo. USD SOFR + 4.250%,9.790%, 4/30/2024(a)(b) |
2,528,410 |
| |
|
31,879,735 |
| Principal
Amount |
Description |
Value (†) |
| |
Building Materials — 2.2% | |
| $3,066,539
|
Foley Products Co. LLC, 2021 Term Loan, 3 mo. USD SOFR + 4.750%,10.290%, 12/29/2028(a)(b) |
$3,063,994
|
| 408,000 |
GYP Holdings III Corp., 2023 Term Loan, 1 mo. USD SOFR + 3.000%,8.348%, 5/12/2030(a)(b) |
409,020 |
| 2,000,000 |
Janus International Group LLC, 2023 Term Loan B, 8/03/2030(c) |
1,997,000 |
| 3,000,000 |
Janus International Group LLC, 2023 Term Loan B, 3 mo. USD SOFR + 3.250%,8.764%, 8/03/2030(a)(b) |
2,995,500 |
| 1,976,631 |
Mannington Mills, Inc., 2021 Term Loan B, 3 mo. USD SOFR + 3.750%,9.402%, 8/06/2026(a)(b) |
1,777,742 |
| 2,493,655 |
MI Windows & Doors LLC, 2022 Term Loan, 1 mo. USD SOFR + 3.500%,8.948%, 12/18/2027(b) |
2,493,655 |
| 2,609,129 |
Oscar AcquisitionCo LLC, Term Loan B, 3 mo. USD SOFR + 4.500%,9.990%, 4/29/2029(a)(b) |
2,552,589 |
| 1,939,000 |
Summit Materials LLC, 2023 Incremental Term Loan B, 11/30/2028(c) |
1,939,000 |
| 3,251,398 |
U.S. Silica Co., 2023 Term Loan B, 1 mo. USD SOFR + 4.750%,10.198%, 3/25/2030(a)(b) |
3,250,878 |
| |
|
20,479,378 |
| |
Cable Satellite — 2.2% | |
| 10,783,619 |
DirecTV Financing LLC, Term Loan, USD SOFR + 5.000%,10.645%, 8/02/2027(a)(b) |
10,595,768 |
| 5,421,000 |
Virgin Media Bristol LLC, 2023 USD Term Loan Y, 6 mo. USD SOFR + 3.250%,8.790%, 3/31/2031(a)(b) |
5,340,552 |
| 4,877,715 |
WideOpenWest Finance LLC, 2021 Term Loan B, 3 mo. USD SOFR + 3.000%,8.390%, 12/20/2028(a)(b) |
4,365,555 |
| |
|
20,301,875 |
| |
Chemicals — 3.1% | |
| 2,175,000 |
Aruba Investments, Inc., 2020 2nd Lien Term Loan, 1 mo. USD SOFR + 7.750%,13.198%, 11/24/2028(a)(b) |
2,012,419 |
| 4,064,050 |
Bakelite U.S. Holdco, Inc., 2022 Term Loan, 3 mo. USD SOFR + 4.000%,9.540%, 5/29/2029(a)(b) |
3,931,968 |
| 4,850,085 |
Chemours Co., 2023 USD Term Loan B, 1 mo. USD SOFR + 3.500%,8.848%, 8/18/2028(a)(b) |
4,786,452 |
| 3,492,627 |
Groupe Solmax, Inc., Term Loan, USD SOFR + 4.750%,10.259%, 5/29/2028(a)(b) |
3,225,057 |
| 3,343,572 |
Ineos U.S. Finance LLC, 2022 USD Term Loan B, 1 mo. USD SOFR + 3.750%,9.198%, 11/08/2027(a)(b) |
3,338,690 |
| 2,892,750 |
LSF11 A5 Holdco LLC, 2023 Incremental Term Loan B, 1 mo. USD SOFR + 4.250%,9.698%, 10/15/2028(a)(b) |
2,859,599 |
| 2,521,320 |
Luxembourg Investment Co. 428 SARL, Term Loan B, 3 mo. USD SOFR + 5.000%,10.540%, 1/03/2029(a)(b) |
1,647,254 |
| 2,010,895 |
Momentive Performance Materials, Inc., 2023 Term Loan, 1 mo. USD SOFR + 4.500%,9.848%, 3/29/2028(a)(b) |
1,922,416 |
| 2,654,937 |
Vantage Specialty Chemicals, Inc., 2023 Term Loan B, 1 mo. USD SOFR + 4.750%,10.081%, 10/26/2026(a)(b) |
2,478,384 |
| 2,500,000 |
Windsor Holdings III LLC, USD Term Loan B, 1 mo. USD SOFR + 4.500%,9.820%, 8/01/2030(a)(b) |
2,503,475 |
| |
|
28,705,714 |
| |
Consumer Cyclical Services — 4.3% | |
| 4,602,000 |
CHG Healthcare Services, Inc., 2023 Incremental Term Loan, 3 mo. USD SOFR + 3.750%,9.145%, 9/29/2028(a)(b) |
4,591,461 |
| 2,959,000 |
Cushman & Wakefield U.S. Borrower LLC, 2023 Term Loan B, 1 mo. USD SOFR + 4.000%,9.348%, 1/31/2030(a)(b) |
2,892,423 |
See accompanying notes to financial statements.
| 20
Portfolio of Investments – as of November 30, 2023 Loomis Sayles Senior Floating Rate and Fixed Income Fund (continued)
| Principal
Amount |
Description |
Value (†) |
| |
Consumer Cyclical Services — continued | |
| $2,493,547
|
Galaxy U.S. Opco, Inc., Term Loan, 3 mo. USD SOFR + 4.750%,10.133%, 4/29/2029(a)(b) |
$2,304,461
|
| 737,437 |
Go Daddy Operating Co. LLC, 2022 Term Loan B5, 1 mo. USD SOFR + 2.500%,7.848%, 11/09/2029(a)(b) |
738,285 |
| 2,992,500 |
Inmar, Inc., 2023 Term Loan, USD SOFR + 5.500%,10.859%, 5/01/2026(a)(b) |
2,910,206 |
| 3,291,750 |
Kingpin Intermediate Holdings LLC, 2023 Term Loan B, 1 mo. USD SOFR + 3.500%,8.848%, 2/08/2028(a)(b) |
3,262,947 |
| 4,415,384 |
Latham Pool Products, Inc., 2022 Term Loan B, 3 mo. USD SOFR + 4.000%,9.528%, 2/23/2029(a)(b) |
4,200,134 |
| 150,277 |
OMNIA Partners LLC, Delayed Draw Term Loan,0.500%, 7/25/2030(d) |
150,411 |
| 1,599,723 |
OMNIA Partners LLC, Term Loan B, 3 mo. USD SOFR + 4.250%,9.628%, 7/25/2030(a)(b) |
1,601,147 |
| 220,191 |
Ryan LLC, Delayed Draw Term Loan, 11/14/2030(d) |
218,678 |
| 95,238 |
Ryan LLC, Delayed Draw Term Loan, 11/14/2030(c) |
94,584 |
| 904,762 |
Ryan LLC, Term Loan, 11/14/2030(c) |
898,546 |
| 2,091,810 |
Ryan LLC, Term Loan, 1 mo. USD SOFR + 4.500%,9.848%, 11/14/2030(a)(b) |
2,077,439 |
| 3,103,157 |
Sweetwater Borrower LLC, Term Loan B, 1 mo. USD SOFR + 4.250%,9.713%, 8/07/2028(a)(b) |
3,048,852 |
| 3,300,000 |
TTF Holdings LLC, Term Loan, 1 mo. USD SOFR + 4.000%,9.463%, 3/31/2028(a)(b) |
3,295,875 |
| 4,772,187 |
Uber Technologies, Inc., 2023 Term Loan B, 3 mo. USD SOFR + 2.750%,8.159%, 3/03/2030(a)(b) |
4,781,159 |
| 2,208,431 |
Vaco Holdings LLC, 2022 Term Loan, 3 mo. USD SOFR + 5.000%,10.587%, 1/21/2029(b) |
2,131,136 |
| 1,290,000 |
VT Topco, Inc., 2023 Term Loan B, 1 mo. USD SOFR + 4.250%,9.598%, 8/09/2030(a)(b) |
1,289,200 |
| |
|
40,486,944 |
| |
Consumer Products — 2.8% | |
| 2,887,264 |
AI Aqua Merger Sub, Inc., 2021 1st Lien Term Loan B, 1 mo. USD SOFR + 3.750%,9.071%, 7/31/2028(a)(b) |
2,831,684 |
| 1,000,000 |
AI Aqua Merger Sub, Inc., 2023 Incremental Term Loan, 7/31/2028(c) |
990,000 |
| 3,225,481 |
Bombardier Recreational Products, Inc., 2023 Term Loan B3, 1 mo. USD SOFR + 2.750%,8.098%, 12/13/2029(a)(b) |
3,208,547 |
| 2,912,645 |
Mattress Firm, Inc., 2021 Term Loan B, 6 mo. USD LIBOR + 4.250%,9.950%, 9/25/2028(a)(b) |
2,885,354 |
| 3,416,000 |
Recess Holdings, Inc., 2023 Term Loan, 3 mo. USD SOFR + 4.000%,9.388%, 3/29/2027(a)(b) |
3,409,612 |
| 4,441,145 |
Solis IV BV, USD Term Loan B1, 3 mo. USD SOFR + 3.500%,8.880%, 2/26/2029(b) |
4,283,307 |
| 1,101,741 |
Springs Windows Fashions LLC, 2021 Term Loan B, 1 mo. USD SOFR + 4.000%,9.463%, 10/06/2028(a)(b) |
937,857 |
| 749,141 |
Thor Industries, Inc., 2023 USD Term Loan B2, 1 mo. USD SOFR + 2.750%,8.073%, 11/15/2030(a)(b) |
751,014 |
| 1,803,426 |
Topgolf Callaway Brands Corp., Term Loan B, 1 mo. USD SOFR + 3.500%,8.948%, 3/15/2030(a)(b) |
1,797,799 |
| 2,695,945 |
Weber-Stephen Products LLC, 2022 Incremental Term Loan B, 1 mo. USD SOFR + 4.250%,9.698%, 10/30/2027(a)(b) |
2,301,663 |
| 3,306,952 |
Weber-Stephen Products LLC, Term Loan B, 1 mo. USD SOFR + 3.250%,8.713%, 10/30/2027(a)(b) |
2,823,906 |
| |
|
26,220,743 |
| |
Diversified Manufacturing — 2.9% | |
| 3,339,282 |
Arcline FM Holdings LLC, 2021 1st Lien Term Loan, 3 mo. USD SOFR + 4.750%,10.402%, 6/23/2028(a)(b) |
3,283,349 |
| Principal
Amount |
Description |
Value (†) |
| |
Diversified Manufacturing — continued | |
| $1,391,000
|
Barnes Group, Inc., Term Loan B, 1 mo. USD SOFR + 3.000%,8.448%, 9/03/2030(a)(b) |
$1,387,870
|
| 3,639,397 |
Chart Industries, Inc., 2023 Term Loan, 1 mo. USD SOFR + 3.250%,8.670%, 3/15/2030(a)(b) |
3,627,278 |
| 4,719,450 |
Emrld Borrower LP, Term Loan B, 1 mo. USD SOFR + 3.000%,8.348%, 5/31/2030(a)(b) |
4,721,526 |
| 3,980,000 |
Filtration Group Corp., 2023 USD Term Loan, 1 mo. USD SOFR + 4.250%,9.713%, 10/21/2028(a)(b) |
3,984,139 |
| 3,000,000 |
Infinite Bidco LLC, 2nd Lien Term Loan, 3 mo. USD SOFR + 7.000%,12.645%, 3/02/2029(a)(b) |
2,565,000 |
| 3,500,000 |
LSF12 Badger Bidco LLC, Term Loan B, 1 mo. USD SOFR + 6.000%,11.348%, 8/30/2030(a)(b) |
3,482,500 |
| 2,346,300 |
Project Castle, Inc., Term Loan B, 3 mo. USD SOFR + 5.500%,10.895%, 6/01/2029(a)(b) |
2,039,334 |
| 2,219,592 |
Vertiv Group Corp., 2021 Term Loan B, 1 mo. USD SOFR + 2.750%,8.184%, 3/02/2027(b) |
2,221,545 |
| 4,388 |
Watlow Electric Manufacturing Co., Term Loan B, USD SOFR + 3.750%,9.115%, 3/02/2028(a)(b) |
4,340 |
| |
|
27,316,881 |
| |
Electric — 0.5% | |
| 2,341,750 |
Talen Energy Supply LLC, 2023 Term Loan B, 3 mo. USD SOFR + 4.500%,9.869%, 5/17/2030(a)(b) |
2,348,447 |
| 1,902,381 |
Talen Energy Supply LLC, 2023 Term Loan C, 3 mo. USD SOFR + 4.500%,9.869%, 5/17/2030(a)(b) |
1,907,822 |
| |
|
4,256,269 |
| |
Environmental — 1.2% | |
| 2,413,661 |
Covanta Holding Corp., 2023 Term Loan B, 1 mo. USD SOFR + 3.000%,8.321%, 11/30/2028(a)(b) |
2,409,438 |
| 181,025 |
Covanta Holding Corp., 2023 Term Loan C, 1 mo. USD SOFR + 3.000%,8.321%, 11/30/2028(a)(b) |
180,708 |
| 2,287,208 |
Liberty Tire Recycling Holdco LLC, 2021 Term Loan, 1 mo. USD SOFR + 4.500%,9.963%, 5/05/2028(a)(b) |
2,094,693 |
| 3,024,664 |
Northstar Group Services, Inc., 2020 Term Loan B, 1 mo. USD SOFR + 5.500%,10.963%, 11/12/2026(a)(b) |
3,017,103 |
| 997,362 |
Rockwood Service Corp., 2020 Term Loan, 1 mo. USD SOFR + 4.250%,9.713%, 1/23/2027(a)(b) |
997,113 |
| 326,087 |
The Action Environmental Group, Inc., 2023 Delayed Draw Term Loan B, 10/24/2030(d) |
326,495 |
| 2,173,913 |
The Action Environmental Group, Inc., 2023 Term Loan B, 3 mo. USD SOFR + 4.500%,9.878%, 10/24/2030(a)(b) |
2,176,630 |
| |
|
11,202,180 |
| |
Financial Other — 0.6% | |
| 2,152,000 |
GIP Pilot Acquisition Partners LP, Term Loan, 3 mo. USD SOFR + 3.000%,8.388%, 10/04/2030(a)(b) |
2,146,620 |
| 3,565,028 |
Orion Advisor Solutions, Inc., 2021 Term Loan, 3 mo. USD SOFR + 3.750%,9.395%, 9/24/2027(a)(b) |
3,464,779 |
| |
|
5,611,399 |
| |
Food & Beverage — 1.2% | |
| 3,452,501 |
City Brewing Co. LLC, Closing Date Term Loan, 3 mo. USD SOFR + 3.500%,9.164%, 4/05/2028(a)(b) |
2,775,811 |
| 4,421,520 |
Del Monte Foods, Inc., 2022 Term Loan, 1 mo. USD SOFR + 4.250%,9.698%, 5/16/2029(a)(b) |
4,360,724 |
| 11,194 |
Del Monte Foods, Inc., 2022 Term Loan, PRIME + 3.250%,11.750%, 5/16/2029(b) |
11,040 |
| 5,000,000 |
Naked Juice LLC, 2nd Lien Term Loan, 3 mo. USD SOFR + 6.000%,11.490%, 1/24/2030(a)(b) |
3,971,900 |
| |
|
11,119,475 |
See accompanying notes to financial statements.
21 |
Portfolio of Investments – as of November 30, 2023 Loomis Sayles Senior Floating Rate and Fixed Income Fund (continued)
| Principal
Amount |
Description |
Value (†) |
| |
Gaming — 2.2% | |
| $3,721,591
|
Bally's Corp., 2021 Term Loan B, 3 mo. USD SOFR + 3.250%,8.927%, 10/02/2028(a)(b) |
$3,422,301
|
| 1,500,000 |
Fertitta Entertainment LLC, 2022 Term Loan B, 1/27/2029(c) |
1,488,195 |
| 3,603,046 |
Fertitta Entertainment LLC, 2022 Term Loan B, 1 mo. USD SOFR + 4.000%,9.348%, 1/27/2029(a)(b) |
3,574,690 |
| 4,567,313 |
GVC Holdings (Gibraltar) Ltd., 2022 USD Term Loan B2, 3 mo. USD SOFR + 3.500%,8.990%, 10/31/2029(a)(b) |
4,571,104 |
| 1,250,000 |
J&J Ventures Gaming LLC, 2023 Incremental Term Loan B, 1 mo. USD SOFR + 4.250%,9.713%, 4/26/2028(a)(b) |
1,203,125 |
| 2,250,000 |
J&J Ventures Gaming LLC, 2023 Nevada Delayed Draw Term Loan, 4/26/2028(c) |
2,165,625 |
| 4,155,000 |
Ontario Gaming GTA LP, Term Loan B, 3 mo. USD SOFR + 4.250%,9.640%, 8/01/2030(a)(b) |
4,162,811 |
| |
|
20,587,851 |
| |
Healthcare — 6.3% | |
| 4,813,000 |
Bausch & Lomb Corp., 2023 Incremental Term Loan, 1 mo. USD SOFR + 4.000%,9.348%, 9/29/2028(a)(b) |
4,704,708 |
| 4,345,387 |
Carestream Dental Equipment, Inc., 2021 Term Loan, 6 mo. USD LIBOR + 4.500%,10.231%, 9/01/2024(a)(b) |
3,572,516 |
| 3,473,750 |
Charlotte Buyer, Inc., 1st Lien Term Loan, 1 mo. USD SOFR + 5.250%,10.571%, 2/11/2028(a)(b) |
3,468,435 |
| 486,726 |
Dermatology Intermediate Holdings III, Inc., 2022 Delayed Draw Term Loan, 3 mo. USD SOFR + 4.250%,9.633%, 3/30/2029(a)(b) |
467,462 |
| 2,808,325 |
Dermatology Intermediate Holdings III, Inc., 2022 Term Loan B, 3 mo. USD SOFR + 4.250%,9.633%, 3/30/2029(a)(b) |
2,697,171 |
| 1,851,775 |
Element Materials Technology Group U.S. Holdings, Inc., 2022 USD Delayed Draw Term Loan, 3 mo. USD SOFR + 4.250%,9.740%, 7/06/2029(a)(b) |
1,806,647 |
| 4,012,179 |
Element Materials Technology Group U.S. Holdings, Inc., 2022 USD Term Loan, 3 mo. USD SOFR + 4.250%,9.740%, 7/06/2029(a)(b) |
3,914,402 |
| 3,268,996 |
Embecta Corp., Term Loan B, 3 mo. USD SOFR + 3.000%,8.337%, 3/30/2029(a)(b) |
3,196,817 |
| 3,990,000 |
Fortrea Holdings, Inc., Term Loan B, 1 mo. USD SOFR + 3.750%,9.098%, 7/01/2030(a)(b) |
3,948,863 |
| 977,080 |
Gainwell Acquisition Corp., Term Loan B, 3 mo. USD SOFR + 4.000%,9.490%, 10/01/2027(a)(b) |
940,440 |
| 1,995,000 |
GHX Ultimate Parent Corp., 2023 Term Loan, 3 mo. USD SOFR + 4.750%,10.116%, 6/30/2027(a)(b) |
1,990,013 |
| 2,929,051 |
Heartland Dental LLC, 2023 Term Loan B, 1 mo. USD SOFR + 5.000%,10.331%, 4/28/2028(a)(b) |
2,881,454 |
| 2,030,000 |
IVC Acquisition Ltd., 2023 USD Term Loan B, 11/17/2028(c) |
2,013,516 |
| 1,000,000 |
MDVIP, Inc., 2021 2nd Lien Term Loan, 1 mo. USD SOFR + 6.500%,11.963%, 10/15/2029(a)(b) |
945,000 |
| 2,300,000 |
MDVIP, Inc., 2021 Term Loan, 10/16/2028(c) |
2,294,825 |
| 2,846,148 |
NAPA Management Services Corp., Term Loan B, 1 mo. USD SOFR + 5.250%,10.560%, 2/23/2029(a)(b) |
2,367,653 |
| 6,431,027 |
National Mentor Holdings, Inc., 2021 Term Loan, USD SOFR + 3.750%,9.207%, 3/02/2028(a)(b) |
5,824,131 |
| 177,172 |
National Mentor Holdings, Inc., 2021 Term Loan C, 3 mo. USD SOFR + 3.750%,9.240%, 3/02/2028(a)(b) |
160,452 |
| Principal
Amount |
Description |
Value (†) |
| |
Healthcare — continued | |
| $3,738,894
|
Onex TSG Intermediate Corp., 2021 Term Loan B, 3 mo. USD SOFR + 4.750%,10.395%, 2/28/2028(a)(b) |
$3,502,110
|
| 1,000,000 |
Southern Veterinary Partners LLC, 2nd Lien Term Loan, 1 mo. USD SOFR + 7.750%,13.198%, 10/05/2028(a)(b) |
990,830 |
| 2,780,357 |
Southern Veterinary Partners LLC, Term Loan, 1 mo. USD SOFR + 4.000%,9.463%, 10/05/2027(a)(b) |
2,763,675 |
| 2,509,781 |
Star Parent, Inc., Term Loan B, 3 mo. USD SOFR + 4.000%,9.386%, 9/27/2030(a)(b) |
2,450,877 |
| 2,252,723 |
U.S. Anesthesia Partners, Inc., 2021 Term Loan, 1 mo. USD SOFR + 4.250%,9.685%, 10/01/2028(a)(b) |
2,012,853 |
| |
|
58,914,850 |
| |
Independent Energy — 0.6% | |
| 5,205,924 |
Matador Bidco SARL, Term Loan, 1 mo. USD SOFR + 4.500%,9.948%, 10/15/2026(a)(b) |
5,210,558 |
| |
Industrial Other — 1.8% | |
| 3,881,998 |
Colibri Group LLC, 2022 Term Loan, 3 mo. USD SOFR + 5.000%,10.545%, 3/12/2029(a)(b) |
3,831,066 |
| 2,500,000 |
KUEHG Corp., 2023 Term Loan, 3 mo. USD SOFR + 5.000%,10.390%, 6/12/2030(a)(b) |
2,501,875 |
| 1,000,000 |
Learning Care Group, Inc., 2023 Term Loan, USD SOFR + 4.750%,10.128%, 8/11/2028(a)(b) |
1,000,250 |
| 2,992,386 |
Michael Baker International LLC, 2021 Term Loan, 1 mo. USD SOFR + 5.000%,10.463%, 12/01/2028(a)(b) |
2,977,424 |
| 4,642,377 |
Service Logic Acquisition, Inc., Term Loan, USD SOFR + 4.000%,9.644%, 10/29/2027(a)(b) |
4,636,575 |
| 2,096,685 |
VM Consolidated, Inc., 2021 Term Loan B, 1 mo. USD SOFR + 3.250%,8.713%, 3/24/2028(a)(b) |
2,101,486 |
| |
|
17,048,676 |
| |
Leisure — 1.1% | |
| 1,493,939 |
Arcis Golf LLC, Term Loan B, 1 mo. USD SOFR + 4.250%,9.713%, 11/24/2028(a)(b) |
1,494,567 |
| 2,992,366 |
SeaWorld Parks & Entertainment, Inc., 2021 Term Loan B, 1 mo. USD SOFR + 3.000%,8.463%, 8/25/2028(a)(b) |
2,987,878 |
| 5,761,548 |
Thunder Finco Pty. Ltd., Term Loan B, 3 mo. USD SOFR + 4.250%,9.540%, 11/26/2026(a)(b) |
5,732,739 |
| |
|
10,215,184 |
| |
Lodging — 0.7% | |
| 2,470,091 |
Hilton Domestic Operating Company, Inc., 2023 Term Loan B4, 1 mo. USD SOFR + 2.000%,7.443%, 11/08/2030(a)(b) |
2,471,425 |
| 3,670,819 |
Hilton Grand Vacations Borrower LLC, 2021 Term Loan B, 1 mo. USD SOFR + 2.750%,8.213%, 8/02/2028(a)(b) |
3,666,231 |
| |
|
6,137,656 |
| |
Media Entertainment — 10.0% | |
| 2,476,400 |
ABG Intermediate Holdings 2 LLC, 2021 2nd Lien Term Loan, 1 mo. USD SOFR + 6.000%,11.448%, 12/20/2029(a)(b) |
2,484,151 |
| 1,846,247 |
ABG Intermediate Holdings 2 LLC, 2023 Term Loan B2, 12/21/2028(c) |
1,851,639 |
| 8,372,790 |
Advantage Sales & Marketing, Inc., 2021 Term Loan, 3 mo. USD SOFR + 4.500%,10.176%, 10/28/2027(a)(b) |
8,184,402 |
| 1,610,400 |
AP Core Holdings II LLC, Amortization Term Loan B1, 1 mo. USD SOFR + 5.500%,10.963%, 9/01/2027(a)(b) |
1,575,503 |
See accompanying notes to financial statements.
| 22
Portfolio of Investments – as of November 30, 2023 Loomis Sayles Senior Floating Rate and Fixed Income Fund (continued)
| Principal
Amount |
Description |
Value (†) |
| |
Media Entertainment — continued | |
| $3,806,000
|
AP Core Holdings II LLC, High-Yield Term Loan B2, 1 mo. USD SOFR + 5.500%,10.963%, 9/01/2027(a)(b) |
$3,714,009
|
| 2,708,390 |
Banijay Entertainment S.A.S, USD Term Loan B1, 1 mo. USD SOFR + 3.750%,9.173%, 3/01/2028(a)(b) |
2,709,067 |
| 6,760,281 |
Cengage Learning, Inc., 2021 Term Loan B, 3 mo. USD SOFR + 4.750%,10.406%, 7/14/2026(a)(b) |
6,749,329 |
| 4,703,548 |
CMG Media Corp., 2021 Term Loan, 3 mo. USD SOFR + 3.500%,8.990%, 12/17/2026(a)(b) |
4,314,517 |
| 7,690,438 |
Creative Artists Agency LLC, 2023 Term Loan B, 1 mo. USD SOFR + 3.500%,8.848%, 11/27/2028(a)(b) |
7,704,357 |
| 4,710,617 |
Dotdash Meredith, Inc., Term Loan B, 1 mo. USD SOFR + 4.000%,9.420%, 12/01/2028(b) |
4,639,958 |
| 6,414,385 |
Gray Television, Inc., 2021 Term Loan D, 1 mo. USD SOFR + 3.000%,8.435%, 12/01/2028(a)(b) |
6,228,496 |
| 2,750,000 |
iHeartCommunications, Inc., 2020 Term Loan, 1 mo. USD SOFR + 3.000%,8.463%, 5/01/2026(a)(b) |
2,287,093 |
| 4,546,541 |
McGraw-Hill Global Education Holdings LLC, 2021 Term Loan, 1 mo. USD SOFR + 4.750%,10.213%, 7/28/2028(a)(b) |
4,459,656 |
| 7,400,000 |
MH Sub I LLC, 2021 2nd Lien Term Loan, 1 mo. USD SOFR + 6.250%,11.593%, 2/23/2029(a)(b) |
6,641,500 |
| 947,625 |
MH Sub I LLC, 2023 Term Loan, 1 mo. USD SOFR + 4.250%,9.598%, 5/03/2028(a)(b) |
916,695 |
| 7,932,243 |
PUG LLC, USD Term Loan, 1 mo. USD SOFR + 3.500%,8.963%, 2/12/2027(a)(b) |
7,669,527 |
| 5,000,000 |
Simon & Schuster, Inc., Term Loan B, 3 mo. USD SOFR + 4.000%,9.390%, 10/30/2030(a)(b) |
4,993,750 |
| 4,937,500 |
Sinclair Television Group, Inc., 2022 Term Loan B4, 1 mo. USD SOFR + 3.750%,9.198%, 4/21/2029(a)(b) |
3,708,260 |
| 4,054,577 |
Summer (BC) Holdco B SARL, 2021 USD Term Loan B2, 3 mo. USD SOFR + 4.500%,10.150%, 12/04/2026(a)(b) |
3,949,158 |
| 1,647,250 |
Syndigo LLC, 2020 2nd Lien Term Loan, 3 mo. USD SOFR + 8.000%,13.671%, 12/15/2028(a)(b) |
1,482,525 |
| 3,022,500 |
Syndigo LLC, 2020 Term Loan, 1 mo. USD SOFR + 4.500%,9.958%, 12/15/2027(a)(b) |
2,916,712 |
| 3,634,113 |
Voyage Digital (NZ) Ltd., USD Term Loan B, 3 mo. USD SOFR + 4.000%,9.367%, 5/11/2029(a)(b) |
3,625,028 |
| |
|
92,805,332 |
| |
Midstream — 1.7% | |
| 4,461,088 |
AL NGPL Holdings LLC, 2023 Incremental Term Loan B, 1 mo. USD SOFR + 3.750%,9.194%, 4/13/2028(a)(b) |
4,458,322 |
| 3,391,500 |
Northriver Midstream Finance LP, 2023 USD Term Loan B, 3 mo. USD SOFR + 3.000%,8.395%, 8/16/2030(a)(b) |
3,390,075 |
| 4,373,483 |
Oryx Midstream Services Permian Basin LLC, 2023 Incremental Term Loan, 1 mo. USD SOFR + 3.250%,8.694%, 10/05/2028(a)(b) |
4,372,477 |
| 3,840,375 |
Whitewater Whistler Holdings LLC, 2023 Term Loan B, 3 mo. USD SOFR + 2.750%,8.146%, 2/15/2030(a)(b) |
3,838,455 |
| |
|
16,059,329 |
| |
Oil Field Services — 0.7% | |
| 3,000,000 |
BANGL LLC, Term Loan B, 1 mo. USD SOFR + 4.500%,9.895%, 2/01/2029(a)(b) |
2,985,000 |
| 3,980,000 |
Brazos Delaware II LLC, 2023 Term Loan B, 1 mo. USD SOFR + 3.750%,9.080%, 2/11/2030(a)(b) |
3,978,328 |
| |
|
6,963,328 |
| Principal
Amount |
Description |
Value (†) |
| |
Other REITs — 0.9% | |
| $2,282,443
|
Apollo Commercial Real Estate Finance, Inc., 2021 Incremental Term Loan B1, 1 mo. USD SOFR + 3.500%,8.963%, 3/11/2028(b) |
$2,191,145
|
| 2,435,760 |
RHP Hotel Properties LP, 2023 Term Loan B, 1 mo. USD SOFR + 2.750%,8.098%, 5/18/2030(a)(b) |
2,433,933 |
| 4,093,070 |
Starwood Property Trust, Inc., 2022 Term Loan B, 1 mo. USD SOFR + 3.250%,8.598%, 11/18/2027(a)(b) |
4,072,605 |
| |
|
8,697,683 |
| |
Paper — 1.3% | |
| 2,816,537 |
Domtar Corp., 2021 Term Loan B, 1 mo. USD SOFR + 5.500%,10.831%, 11/30/2028(a)(b) |
2,774,289 |
| 5,147,238 |
Schweitzer-Mauduit International, Inc., 2021 Term Loan B, 1 mo. USD SOFR + 3.750%,9.213%, 4/20/2028(a)(b) |
5,070,029 |
| 4,289,085 |
Spa Holdings 3 Oy, USD Term Loan B, 3 mo. USD SOFR + 4.000%,9.652%, 2/04/2028(a)(b) |
4,196,870 |
| |
|
12,041,188 |
| |
Pharmaceuticals — 1.4% | |
| 2,817,188 |
Bausch Health Cos., Inc., 2022 Term Loan B, 1 mo. USD SOFR + 5.250%,10.691%, 2/01/2027(a)(b) |
2,124,638 |
| 4,763,388 |
Jazz Financing Lux SARL, USD Term Loan, 1 mo. USD SOFR + 3.500%,8.963%, 5/05/2028(a)(b) |
4,770,009 |
| 4,149,386 |
LSCS Holdings, Inc., 2021 1st Lien Term Loan, 1 mo. USD SOFR + 4.614%,9.963%, 12/16/2028(a)(b) |
4,088,017 |
| 2,000,000 |
LSCS Holdings, Inc., 2021 2nd Lien Term Loan, 1 mo. USD SOFR + 8.000%,13.463%, 12/17/2029(a)(b) |
1,760,000 |
| |
|
12,742,664 |
| |
Property & Casualty Insurance — 2.2% | |
| 3,341,625 |
Amynta Agency Borrower, Inc., 2023 Term Loan B, 1 mo. USD SOFR + 5.000%,10.448%, 2/28/2028(a)(b) |
3,346,504 |
| 603,476 |
AssuredPartners, Inc., 2023 Term Loan B4, 2/12/2027(c) |
603,778 |
| 1,982,800 |
Asurion LLC, 2020 Term Loan B8, 1 mo. USD SOFR + 3.250%,8.713%, 12/23/2026(a)(b) |
1,953,811 |
| 4,686,000 |
Asurion LLC, 2021 2nd Lien Term Loan B3, 1 mo. USD SOFR + 5.250%,10.713%, 1/31/2028(a)(b) |
4,195,657 |
| 2,822,760 |
Asurion LLC, 2023 Term Loan B11, 1 mo. USD SOFR + 4.250%,9.698%, 8/19/2028(a)(b) |
2,773,362 |
| 1,880,365 |
Baldwin Risk Partners LLC, 2021 Term Loan B, 1 mo. USD SOFR + 3.500%,8.955%, 10/14/2027(a)(b) |
1,872,524 |
| 4,696,000 |
Howden Group Holdings Ltd., 2023 USD Term Loan B, 4/18/2030(c) |
4,692,666 |
| 789,474 |
HUB International Ltd., 2023 Term Loan B, 3 mo. USD SOFR + 4.250%,9.662%, 6/20/2030(a)(b) |
792,402 |
| |
|
20,230,704 |
| |
Refining — 0.3% | |
| 2,385,835 |
Delek U.S. Holdings, Inc., 2022 Term Loan B, 1 mo. USD SOFR + 3.500%,8.948%, 11/19/2029(a)(b) |
2,380,419 |
| |
Restaurants — 0.6% | |
| 2,794,523 |
1011778 B.C. Unlimited Liability Co., 2023 Term Loan B5, 1 mo. USD SOFR + 2.250%,7.598%, 9/20/2030(a)(b) |
2,781,863 |
| 2,669,449 |
Dave & Buster's, Inc., 2023 Term Loan, 1 mo. USD SOFR + 3.750%,9.188%, 6/29/2029(a)(b) |
2,669,023 |
| |
|
5,450,886 |
| |
Retailers — 6.4% | |
| 4,199,275 |
At Home Group, Inc., Term Loan B, 1 mo. USD SOFR + 4.250%,9.684%, 7/24/2028(a)(b) |
1,457,946 |
See accompanying notes to financial statements.
23 |
Portfolio of Investments – as of November 30, 2023 Loomis Sayles Senior Floating Rate and Fixed Income Fund (continued)
| Principal
Amount |
Description |
Value (†) |
| |
Retailers — continued | |
| $2,751,174
|
Canada Goose, Inc., 2021 Term Loan, 1 mo. USD SOFR + 3.500%,8.963%, 10/07/2027(a)(b) |
$2,696,729
|
| 3,589,390 |
Container Store, Inc., 2020 Term Loan B3, 3 mo. USD SOFR + 4.750%,10.402%, 1/31/2026(a)(b) |
3,230,451 |
| 2,133,342 |
Crocs, Inc., 2023 Term Loan B, 1 mo. USD SOFR + 3.000%,8.540%, 2/20/2029(a)(b) |
2,137,886 |
| 2,969,543 |
CWGS Group LLC, 2021 Term Loan B, 1 mo. USD SOFR + 2.500%,7.947%, 6/03/2028(a)(b) |
2,829,885 |
| 3,582,933 |
Evergreen Acqco 1 LP, 2021 USD Term Loan, 3 mo. USD SOFR + 5.250%,10.902%, 4/26/2028(a)(b) |
3,588,522 |
| 2,871,078 |
Great Outdoors Group LLC, 2021 Term Loan B1, 1 mo. USD SOFR + 3.750%,9.402%, 3/06/2028(a)(b) |
2,843,918 |
| 600,000 |
International Textile Group, Inc., 2023 Last Out Term Loan, 9/30/2027(c) |
462,000 |
| 2,778,742 |
International Textile Group, Inc., 2023 Term Loan, 3 mo. USD SOFR + 8.650%,14.045%, 9/30/2027(a)(b) |
2,750,955 |
| 2,891,676 |
Michaels Cos., Inc., 2021 Term Loan B, 3 mo. USD SOFR + 4.250%,9.902%, 4/15/2028(a)(b) |
2,194,059 |
| 4,652,966 |
Olaplex, Inc., 2022 Term Loan, 1 mo. USD SOFR + 3.500%,8.948%, 2/23/2029(a)(b) |
4,254,161 |
| 4,173,000 |
Peer Holding III BV, 2023 USD Term Loan B4, 10/19/2030(c) |
4,166,031 |
| 3,657,182 |
Petco Health and Wellness Co., Inc., 2021 Term Loan B, 3 mo. USD SOFR + 3.250%,8.902%, 3/03/2028(a)(b) |
3,453,001 |
| 5,476,102 |
PetSmart, Inc., 2021 Term Loan B, 1 mo. USD SOFR + 3.750%,9.198%, 2/11/2028(a)(b) |
5,387,115 |
| 3,530,482 |
Rent-A-Center, Inc., 2021 First Lien Term Loan B, 6 mo. USD SOFR + 3.250%,9.119%, 2/17/2028(a)(b) |
3,517,243 |
| 3,461,259 |
Restoration Hardware, Inc., 2022 Incremental Term Loan, 1 mo. USD SOFR + 3.250%,8.698%, 10/20/2028(a)(b) |
3,294,704 |
| 4,145,180 |
RVR Dealership Holdings LLC, Term Loan B, 1 mo. USD SOFR + 3.750%,9.191%, 2/08/2028(a)(b) |
3,316,144 |
| 5,255,250 |
S&S Holdings LLC, Term Loan, 3 mo. USD SOFR + 5.000%,10.503%, 3/11/2028(a)(b) |
5,068,689 |
| 2,304,002 |
Tory Burch LLC, Term Loan B, 1 mo. USD SOFR + 3.250%,8.713%, 4/16/2028(a)(b) |
2,277,437 |
| 997,456 |
Victoria's Secret & Co., Term Loan B, 3 mo. USD SOFR + 3.25%,8.903%, 8/02/2028(a)(b) |
983,740 |
| |
|
59,910,616 |
| |
Technology — 12.0% | |
| 6,975,000 |
Access CIG LLC, 2018 2nd Lien Term Loan, 3 mo. USD SOFR + 7.750%,13.409%, 2/27/2026(a)(b) |
6,858,727 |
| 4,860,000 |
Altar Bidco, Inc., 2021 2nd Lien Term Loan, 3 mo. USD SOFR + 5.600%,10.493%, 2/01/2030(a)(b) |
4,659,525 |
| 3,500,000 |
Applied Systems, Inc., 2021 2nd Lien Term Loan, 3 mo. USD SOFR + 6.750%,12.140%, 9/17/2027(a)(b) |
3,513,125 |
| 438,795 |
Applied Systems, Inc., 2022 Extended 1st Lien Term Loan, 3 mo. USD SOFR + 4.500%,9.890%, 9/18/2026(a)(b) |
440,168 |
| 2,773,165 |
Ascend Learning LLC, 2021 Term Loan, 1 mo. USD SOFR + 3.500%,8.948%, 12/11/2028(a)(b) |
2,706,525 |
| 5,703,942 |
Central Parent, Inc., 2023 Term Loan B, 3 mo. USD SOFR + 4.000%,9.406%, 7/06/2029(a)(b) |
5,704,969 |
| 5,008,453 |
Conduent Business Services LLC, 2021 Term Loan B, 1 mo. USD SOFR + 4.250%,9.593%, 10/16/2028(a)(b) |
4,887,398 |
| 3,832,672 |
Corel Corp., 2019 Term Loan, 3 mo. USD SOFR + 5.000%,10.488%, 7/02/2026(a)(b) |
3,648,704 |
| Principal
Amount |
Description |
Value (†) |
| |
Technology — continued | |
| $3,453,005
|
Cornerstone OnDemand, Inc., 2021 Term Loan, 1 mo. USD SOFR + 3.750%,9.213%, 10/16/2028(a)(b) |
$3,321,791
|
| 6,078,906 |
CT Technologies Intermediate Holdings, Inc., 2021 Term Loan B, 1 mo. USD SOFR + 4.250%,9.713%, 12/16/2025(a)(b) |
5,756,481 |
| 1,651,522 |
Dodge Data & Analytics LLC, 2022 Term Loan, 3 mo. USD SOFR + 4.750%,10.290%, 2/23/2029(b) |
1,243,811 |
| 3,517,883 |
Endure Digital, Inc., Term Loan, 6 mo. USD SOFR + 3.500%,9.422%, 2/10/2028(a)(b) |
3,385,330 |
| 1,994,911 |
Foundever Worldwide Corp., 2021 USD Term Loan, 1 mo. USD SOFR + 3.750%,9.098%, 8/28/2028(a)(b) |
1,902,148 |
| 2,305,000 |
Genuine Financial Holdings LLC, 2023 Term Loan B, 3 mo. USD SOFR + 4.250%,9.386%, 9/27/2030(a)(b) |
2,291,677 |
| 1,873,915 |
Global Client Solutions LLC, Term Loan B, 1 mo. USD SOFR + 6.000%,11.930%, 3/16/2026(a)(b) |
1,780,219 |
| 5,119,026 |
GoTo Group, Inc., Term Loan B, 3 mo. USD SOFR + 4.750%,10.283%, 8/31/2027(a)(b) |
3,352,962 |
| 1,385,751 |
Greeneden U.S. Holdings II LLC, 2020 USD Term Loan B4, 1 mo. USD SOFR + 4.000%,9.463%, 12/01/2027(a)(b) |
1,386,374 |
| 6,823,000 |
GTCR W Merger Sub LLC, USD Term Loan B, 9/20/2030(c) |
6,814,471 |
| 5,354,903 |
Loyalty Ventures, Inc., Term Loan B, 11/03/2027(e) |
49,104 |
| 2,179,695 |
Magenta Buyer LLC, 2021 USD 1st Lien Term Loan, 3 mo. USD SOFR + 4.750%,10.645%, 7/27/2028(a)(b) |
1,396,553 |
| 1,823,251 |
McAfee LLC, 2022 USD Term Loan B, 1 mo. USD SOFR + 3.750%,9.170%, 3/01/2029(a)(b) |
1,796,887 |
| 2,977,330 |
MedAssets Software Intermediate Holdings, Inc., 2021 Term Loan, 1 mo. USD SOFR + 4.000%,9.463%, 12/18/2028(a)(b) |
2,345,898 |
| 3,308,368 |
MKS Instruments, Inc., 2023 Term Loan B, 1 mo. USD SOFR + 2.500%,7.823%, 8/17/2029(a)(b) |
3,298,707 |
| 4,900,000 |
Mosel Bidco SE, USD Term Loan B, 3 mo. USD SOFR + 4.750%,10.164%, 9/16/2030(a)(b) |
4,893,875 |
| 2,855,000 |
NCR Atleos LLC, Term Loan B, 1 mo. USD SOFR + 4.750%,10.198%, 3/27/2029(a)(b) |
2,785,995 |
| 1,500,000 |
Neptune Bidco U.S., Inc., 2022 USD Term Loan A, 4/11/2029(c) |
1,337,250 |
| 4,385,710 |
Open Text Corp., 2023 Term Loan B, 1 mo. USD SOFR + 2.750%,8.198%, 1/31/2030(a)(b) |
4,390,096 |
| 3,350,242 |
Physician Partners LLC, Term Loan, 3 mo. USD SOFR + 4.000%,9.533%, 12/26/2028(a)(b) |
3,156,196 |
| 2,300,000 |
Project Alpha Intermediate Holding, Inc., 2023 1st Lien Term Loan B, 1 mo. USD SOFR + 4.750%,10.093%, 10/28/2030(a)(b) |
2,259,382 |
| 3,712,440 |
Quest Software U.S. Holdings, Inc., 2022 Term Loan, 3 mo. USD SOFR + 4.250%,9.783%, 2/01/2029(a)(b) |
2,704,513 |
| 2,690,742 |
Redstone Holdco 2 LP, 2021 Term Loan, 1 mo. USD SOFR + 4.750%,10.207%, 4/27/2028(a)(b) |
2,024,783 |
| 3,988,577 |
Sabre GLBL, Inc., 2022 1st Lien Term Loan B, 1 mo. USD SOFR + 5.000%,10.448%, 6/30/2028(a)(b) |
3,420,205 |
| 467,000 |
Severin Acquisition LLC, 2018 Term Loan B, 3 mo. USD SOFR + 3.250%,8.633%, 8/01/2027(a)(b) |
466,500 |
| 2,610,000 |
Ultimate Software Group, Inc., 2021 2nd Lien Term Loan, 3 mo. USD SOFR + 5.250%,10.764%, 5/03/2027(a)(b) |
2,608,382 |
| 1,500,000 |
Ultimate Software Group, Inc., 2021 Term Loan, 3 mo. USD SOFR + 3.250%,8.764%, 5/04/2026(a)(b) |
1,500,000 |
| 1,288,083 |
Ultimate Software Group, Inc., Term Loan B, 3 mo. USD SOFR + 3.750%,9.233%, 5/04/2026(a)(b) |
1,290,762 |
See accompanying notes to financial statements.
| 24
Portfolio of Investments – as of November 30, 2023 Loomis Sayles Senior Floating Rate and Fixed Income Fund (continued)
| Principal
Amount |
Description |
Value (†) |
| |
Technology — continued | |
| $3,000,000
|
Vision Solutions, Inc., 2021 2nd Lien Term Loan, 3 mo. USD SOFR + 7.250%,12.890%, 4/23/2029(a)(b) |
$2,682,330
|
| 3,621,944 |
Vision Solutions, Inc., 2021 Incremental Term Loan, 3 mo. USD SOFR + 4.000%,9.640%, 4/24/2028(a)(b) |
3,531,395 |
| |
|
111,593,218 |
| |
Transportation Services — 2.0% | |
| 3,450,481 |
AIT Worldwide Logistics, Inc., 2021 Term Loan, 1 mo. USD SOFR + 4.750%,10.171%, 4/06/2028(a)(b) |
3,359,043 |
| 951,196 |
Brown Group Holding LLC, 2022 Incremental Term Loan B2, USD SOFR + 3.750%,9.127%, 7/02/2029(a)(b) |
951,272 |
| 2,214,943 |
Carriage Purchaser, Inc., 2021 Term Loan B, 1 mo. USD SOFR + 4.250%,9.713%, 10/02/2028(a)(b) |
2,153,479 |
| 3,339,311 |
Hertz Corp., 2021 Term Loan B, 1 mo. USD SOFR + 3.250%,8.713%, 6/30/2028(a)(b) |
3,296,535 |
| 643,608 |
Hertz Corp., 2021 Term Loan C, 1 mo. USD SOFR + 3.250%,8.713%, 6/30/2028(a)(b) |
635,363 |
| 1,000,000 |
Hertz Corp., 2023 Incremental Term Loan B, 1 mo. USD SOFR + 3.750%,9.140%, 6/30/2028(a)(b) |
987,500 |
| 1,496,250 |
Kenan Advantage Group, Inc., 2023 Term Loan B2, 1 mo. USD SOFR + 4.000%,9.463%, 3/24/2026(a)(b) |
1,488,769 |
| 994,988 |
KKR Apple Bidco LLC, 2022 Incremental Term Loan, 1 mo. USD SOFR + 4.000%,9.348%, 9/22/2028(a)(b) |
994,281 |
| 1,500,000 |
PODS LLC, 2021 Term Loan B, 3/31/2028(c) |
1,425,540 |
| 4,528,045 |
St. George Warehousing & Trucking Co. of California, Inc., 2022 Term Loan, 3 mo. USD SOFR + 6.000%,11.540%, 3/24/2028(a)(b) |
3,758,277 |
| |
|
19,050,059 |
| |
Wireless — 1.2% | |
| 2,487,500 |
Altice France SA, 2023 USD Term Loan B14, 3 mo. USD SOFR + 5.500%,10.894%, 8/15/2028(a)(b) |
2,119,051 |
| 3,775,236 |
CCI Buyer, Inc., Term Loan, 3 mo. USD SOFR + 4.000%,9.390%, 12/17/2027(a)(b) |
3,746,242 |
| 3,576,368 |
Crown Subsea Communications Holding, Inc., 2021 Term Loan, 1 mo. USD SOFR + 4.750%,10.435%, 4/27/2027(a)(b) |
3,594,250 |
| 1,366,700 |
Crown Subsea Communications Holding, Inc., 2023 Incremental Term Loan, 1 mo. USD SOFR + 5.250%,10.685%, 4/27/2027(a)(b) |
1,371,825 |
| |
|
10,831,368 |
| |
Wirelines — 0.8% | |
| 3,882,734 |
Voyage Australia Pty. Ltd., USD Term Loan B, 3 mo. USD SOFR + 3.500%,9.177%, 7/20/2028(a)(b) |
3,873,028 |
| 3,802,180 |
Zacapa SARL, 2022 Term Loan, 3 mo. USD SOFR + 4.000%,9.390%, 3/22/2029(a)(b) |
3,771,306 |
| |
|
7,644,334 |
| |
Total Senior Loans (Identified Cost $813,404,433) |
784,808,644 |
| | ||
| | ||
| Bonds and Notes — 6.1% | ||
| |
Airlines — 0.4% | |
| 4,205,000 |
Allegiant Travel Co., 7.250%, 8/15/2027(f) |
3,994,750 |
| |
Automotive — 0.1% | |
| 1,250,000 |
Wabash National Corp., 4.500%, 10/15/2028(f) |
1,068,714 |
| |
Cable Satellite — 0.3% | |
| 5,000,000 |
DISH DBS Corp., 7.750%, 7/01/2026 |
2,984,375 |
| Principal
Amount |
Description |
Value (†) |
| | ||
| |
Chemicals — 0.5% | |
| $2,985,000
|
Iris Holdings, Inc., 9.500% PIK or 8.750% Cash, 2/15/2026(f)(g) |
$2,655,859
|
| 2,500,000 |
Olympus Water U.S. Holding Corp., 7.125%, 10/01/2027(f) |
2,399,204 |
| |
|
5,055,063 |
| |
Consumer Cyclical Services — 0.4% | |
| 3,500,000 |
WASH Multifamily Acquisition, Inc., 5.750%, 4/15/2026(f) |
3,289,591 |
| |
Consumer Products — 0.2% | |
| 1,965,000 |
Newell Brands, Inc., 6.375%, 9/15/2027 |
1,917,552 |
| |
Finance Companies — 0.3% | |
| 3,000,000 |
Nationstar Mortgage Holdings, Inc., 5.000%, 2/01/2026(f) |
2,860,399 |
| |
Leisure — 0.4% | |
| 3,230,000 |
NCL Corp. Ltd., 8.125%, 1/15/2029(f) |
3,288,986 |
| |
Media Entertainment — 0.5% | |
| 1,750,000 |
iHeartCommunications, Inc., 5.250%, 8/15/2027(f) |
1,341,135 |
| 4,650,000 |
Millennium Escrow Corp., 6.625%, 8/01/2026(f) |
3,588,397 |
| |
|
4,929,532 |
| |
Other REITs — 0.6% | |
| 4,000,000 |
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 5.250%, 10/01/2025(f) |
3,864,528 |
| 2,000,000 |
Starwood Property Trust, Inc., 4.375%, 1/15/2027(f) |
1,830,000 |
| |
|
5,694,528 |
| |
Packaging — 0.1% | |
| 1,025,000 |
Sealed Air Corp./Sealed Air Corp. U.S., 6.125%, 2/01/2028(f) |
1,013,936 |
| |
Pharmaceuticals — 0.3% | |
| 2,750,000 |
Organon & Co./Organon Foreign Debt Co-Issuer BV, 4.125%, 4/30/2028(f) |
2,441,916 |
| |
Retailers — 0.2% | |
| 2,133,000 |
Evergreen Acqco 1 LP/TVI, Inc., 9.750%, 4/26/2028(f) |
2,212,988 |
| |
Supermarkets — 0.6% | |
| 5,750,000 |
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC, 4.625%, 1/15/2027(f) |
5,524,060 |
| |
Technology — 0.2% | |
| 2,500,000 |
GoTo Group, Inc., 5.500%, 9/01/2027(f) |
1,474,551 |
| |
Treasuries — 1.0% | |
| 9,900,000 |
U.S. Treasury Notes, 3.500%, 2/15/2033 |
9,251,859 |
| |
Total Bonds and Notes (Identified Cost $61,861,954) |
57,002,800 |
| Shares |
|
|
| Exchange-Traded Funds — 1.6% | ||
| 174,000 |
SPDR® Blackstone Senior Loan ETF |
7,280,160 |
| 292,500 |
SPDR® Bloomberg Short Term High Yield Bond ETF |
7,251,075 |
| |
Total Exchange-Traded Funds (Identified Cost $14,615,333) |
14,531,235 |
| | ||
| | ||
| Common Stocks— 0.0% | ||
| |
Oil, Gas & Consumable Fuels — 0.0% | |
| 61,854 |
Ameriforge Group, Inc.(h)(i) |
5,691 |
See accompanying notes to financial statements.
25 |
Portfolio of Investments – as of November 30, 2023 Loomis Sayles Senior Floating Rate and Fixed Income Fund (continued)
| Shares |
Description |
Value (†) |
| | ||
| |
Textiles, Apparel & Luxury Goods — 0.0% | |
| 53,230 |
Elevate Textiles Holding Corp.(i) |
$172,997 |
| |
Total Common Stocks (Identified Cost $10,035,635) |
178,688 |
| | ||
| | ||
| Warrants — 0.0% | ||
| 55,256 |
Elevate Textiles Holding Corp., Expiration on 6/21/2028(i) (Identified Cost $2,333) |
55 |
| Principal
Amount |
|
|
| Short-Term Investments — 10.2% | ||
| $44,169,276
|
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 11/30/2023
at 2.500% to be repurchased at $44,172,343 on 12/01/2023 collateralized by $29,731,800 U.S. Treasury Note, 0.750% due 4/30/2026 valued at $27,152,130; $18,778,300 U.S. Treasury Note, 2.750% due 7/31/2027 valued at $17,900,555 including accrued interest (Note 2 of Notes to Financial Statements) |
44,169,276 |
| 51,000,000 |
U.S. Treasury Bills, 5.282%, 12/19/2023(j) |
50,865,398 |
| |
Total Short-Term Investments (Identified Cost $95,034,572) |
95,034,674 |
| |
Total Investments — 102.1% (Identified Cost $994,954,260) |
951,556,096 |
| |
Other assets less liabilities — (2.1)% |
(20,024,315 ) |
| |
Net Assets — 100.0% |
$931,531,781 |
| (†) |
See Note 2 of Notes to Financial Statements. |
| (a)
|
Stated interest rate has been determined in accordance with the
provisions of the loan agreement and is subject to a minimum
benchmark floor rate which may range from 0.00% to 2.50%, to
which the spread is added. |
| (b)
|
Variable rate security. Rate as of November 30, 2023 is disclosed.
Issuers comprised of various lots with differing coupon rates have
been aggregated for the purpose of presentation in the Portfolio of
Investments and show a weighted average rate. Certain variable
rate securities are not based on a published reference rate and
spread, rather are determined by the issuer or agent and are
based on current market conditions. These securities may not
indicate a reference rate and/or spread in their description. |
| (c)
|
Position is unsettled. Contract rate was not determined at
November 30, 2023 and does not take effect until settlement date.
Maturity date is not finalized until settlement date. |
| (d)
|
Unfunded loan commitment. An unfunded loan commitment is a
contractual obligation for future funding at the option of the
borrower. The Fund receives a stated coupon rate until the
borrower draws on the loan commitment, at which time the rate
will become the stated rate in the loan agreement. See Note 2 of
Notes to Financial Statements. |
| (e)
|
The issuer is in default with respect to interest and/or principal
payments. Income is not being accrued. |
| (f)
|
All or a portion of these securities are exempt from registration
under Rule 144A of the Securities Act of 1933. These securities
may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At November 30, 2023, the value of
Rule 144A holdings amounted to $42,849,014 or 4.6% of net assets. |
| (g)
|
Payment-in-kind security for which the issuer, at each interest
payment date, may make interest payments in cash and/or
additional principal. For the period ended November 30, 2023,
interest payments were made in cash. |
| (h)
|
Level 3 security. Value has been determined using significant
unobservable inputs. See Note 3 of Notes to Financial Statements. |
| (i)
|
Non-income producing security. |
| (j)
|
Interest rate represents discount rate at time of purchase; not a
coupon rate. |
| ETF
|
Exchange-Traded Fund |
| LIBOR
|
London Interbank Offered Rate |
| PIK
|
Payment-in-Kind |
| REITs
|
Real
Estate Investment Trusts |
| SOFR
|
Secured Overnight Financing Rate |
| SPDR® |
Standard & Poor's Depositary Receipt |
Industry Summary at November 30, 2023
| Technology |
12.2 % |
| Media Entertainment |
10.5 |
| Retailers |
6.6 |
| Healthcare |
6.3 |
| Consumer Cyclical Services |
4.7 |
| Chemicals |
3.6 |
| Brokerage |
3.4 |
| Consumer Products |
3.0 |
| Diversified Manufacturing |
2.9 |
| Automotive |
2.6 |
| Cable Satellite |
2.5 |
| Airlines |
2.3 |
| Gaming |
2.2 |
| Building Materials |
2.2 |
| Property & Casualty Insurance |
2.2 |
| Transportation Services |
2.0 |
| Other Investments, less than 2% each |
21.1 |
| Short-Term Investments |
10.2 |
| Exchange-Traded Funds |
1.6 |
| Total Investments |
102.1 |
| Other assets less liabilities |
(2.1 ) |
| Net Assets |
100.0 % |
See accompanying notes to financial statements.
| 26
Portfolio of Investments – as of November 30, 2023 Vaughan Nelson Select Fund
| Shares |
Description |
Value (†) |
| Common Stocks — 97.7% of Net Assets | ||
| |
Banks — 2.5% | |
| 101,355 |
JPMorgan Chase & Co. |
$15,819,488 |
| |
Broadline Retail — 5.2% | |
| 223,060 |
Amazon.com, Inc.(a) |
32,586,835 |
| |
Capital Markets — 4.5% | |
| 249,070 |
Intercontinental Exchange, Inc. |
28,354,129 |
| |
Chemicals — 4.2% | |
| 95,465 |
Sherwin-Williams Co. |
26,615,642 |
| |
Electric Utilities — 2.1% | |
| 228,265 |
NextEra Energy, Inc. |
13,355,785 |
| |
Financial Services — 3.7% | |
| 64,255 |
Berkshire Hathaway, Inc., Class B(a) |
23,131,800 |
| |
Ground Transportation — 7.0% | |
| 65,785 |
Saia, Inc.(a) |
25,681,806 |
| 80,170 |
Union Pacific Corp. |
18,059,896 |
| |
|
43,741,702 |
| |
Health Care Equipment & Supplies — 2.7% | |
| 146,565 |
Dexcom, Inc.(a) |
16,931,189 |
| |
Health Care Providers & Services — 1.9% | |
| 20,845 |
Chemed Corp. |
11,819,115 |
| |
Industrial REITs — 1.8% | |
| 100,360 |
Prologis, Inc. |
11,534,375 |
| |
Insurance — 3.2% | |
| 60,585 |
Aon PLC, Class A |
19,901,567 |
| |
Interactive Media & Services — 4.7% | |
| 223,370 |
Alphabet, Inc., Class A(a) |
29,603,226 |
| |
IT Services — 6.8% | |
| 65,785 |
Accenture PLC, Class A |
21,915,615 |
| 97,305 |
VeriSign, Inc.(a) |
20,648,121 |
| |
|
42,563,736 |
| |
Life Sciences Tools & Services — 2.8% | |
| 78,945 |
Danaher Corp. |
17,629,208 |
| |
Metals & Mining — 3.5% | |
| 449,491 |
Wheaton Precious Metals Corp. |
21,980,110 |
| |
Oil, Gas & Consumable Fuels — 5.3% | |
| 115,660 |
Hess Corp. |
16,257,169 |
| 2,501,715 |
Kosmos Energy Ltd.(a) |
16,986,645 |
| |
|
33,243,814 |
| |
Personal Care Products — 1.7% | |
| 83,535 |
Estee Lauder Cos., Inc., Class A |
10,666,584 |
| |
Pharmaceuticals — 5.6% | |
| 85,675 |
Johnson & Johnson |
13,250,496 |
| 123,615 |
Zoetis, Inc. |
21,839,062 |
| |
|
35,089,558 |
| |
Professional Services — 3.0% | |
| 77,080 |
Verisk Analytics, Inc. |
18,609,424 |
| |
Semiconductors & Semiconductor Equipment — 7.4% | |
| 45,895 |
Monolithic Power Systems, Inc. |
25,183,504 |
| 45,590 |
NVIDIA Corp. |
21,322,443 |
| |
|
46,505,947 |
| |
Software — 11.7% | |
| 117,805 |
Microsoft Corp. |
44,637,493 |
| 112,910 |
Salesforce, Inc.(a) |
28,442,029 |
| |
|
73,079,522 |
| Shares |
Description |
Value (†) |
| |
Specialized REITs — 2.2% | |
| 118,720 |
Crown Castle, Inc. |
$13,923,482 |
| |
Specialty Retail — 4.2% | |
| 26,620 |
O'Reilly Automotive, Inc.(a) |
26,150,956 |
| |
Total Common Stocks (Identified Cost $521,400,692) |
612,837,194 |
| Principal
Amount |
|
|
| Short-Term Investments — 2.1% | ||
| $13,154,951
|
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 11/30/2023
at 2.500% to be repurchased at $13,155,865 on 12/01/2023 collateralized by $12,140,700 U.S. Treasury Note, 0.125% due 04/15/2026 valued at $13,418,052 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $13,154,951) |
13,154,951 |
| |
Total Investments — 99.8% (Identified Cost $534,555,643) |
625,992,145 |
| |
Other assets less liabilities — 0.2% |
955,428 |
| |
Net Assets — 100.0% |
$626,947,573 |
| (†) |
See Note 2 of Notes to Financial Statements. |
| (a)
|
Non-income producing security. |
| REITs
|
Real
Estate Investment Trusts |
Industry
Summary at November 30, 2023
| Software |
11.7 % |
| Semiconductors & Semiconductor Equipment |
7.4 |
| Ground Transportation |
7.0 |
| IT Services |
6.8 |
| Pharmaceuticals |
5.6 |
| Oil, Gas & Consumable Fuels |
5.3 |
| Broadline Retail |
5.2 |
| Interactive Media & Services |
4.7 |
| Capital Markets |
4.5 |
| Chemicals |
4.2 |
| Specialty Retail |
4.2 |
| Financial Services |
3.7 |
| Metals & Mining |
3.5 |
| Insurance |
3.2 |
| Professional Services |
3.0 |
| Life Sciences Tools & Services |
2.8 |
| Health Care Equipment & Supplies |
2.7 |
| Banks |
2.5 |
| Specialized REITs |
2.2 |
| Electric Utilities |
2.1 |
| Other Investments, less than 2% each |
5.4 |
| Short-Term Investments |
2.1 |
| Total Investments |
99.8 |
| Other assets less liabilities |
0.2 |
| Net Assets |
100.0 % |
See accompanying notes to financial statements.
27 |
Statements of Assets and
Liabilities
November 30, 2023
| |
Loomis Sayles Global Growth
Fund |
Loomis Sayles Senior Floating
Rate and Fixed Income Fund |
Vaughan Nelson Select Fund |
| ASSETS |
|
|
|
| Investments at cost |
$80,865,508
|
$994,954,260
|
$534,555,643
|
| Net unrealized appreciation (depreciation) |
14,515,346 |
(43,398,164 ) |
91,436,502 |
| Investments at value |
95,380,854 |
951,556,096 |
625,992,145 |
| Cash |
335 |
2,169,573 |
671 |
| Receivable for Fund shares sold |
59,598 |
5,057,357 |
1,260,727 |
| Receivable for securities sold |
— |
10,609,624 |
427,032 |
| Dividends and interest receivable |
58,299 |
7,679,759 |
527,360 |
| Tax reclaims receivable |
216,642 |
— |
— |
| Prepaid expenses (Note 7) |
663 |
759 |
755 |
| TOTAL ASSETS |
95,716,391 |
977,073,168 |
628,208,690 |
| LIABILITIES |
|
|
|
| Payable for securities purchased |
— |
37,203,333 |
— |
| Unfunded loan commitments (Note 2) |
— |
696,555 |
— |
| Payable for Fund shares redeemed |
39,200 |
4,959,809 |
688,338 |
| Distributions payable |
— |
1,540,989 |
— |
| Management fees payable (Note 5) |
47,438 |
447,375 |
323,379 |
| Deferred Trustees’ fees (Note 5) |
54,763 |
441,080 |
137,481 |
| Administrative fees payable (Note 5) |
3,494 |
35,158 |
23,386 |
| Payable to distributor (Note 5d) |
754 |
27,659 |
4,781 |
| Audit and tax services fees payable |
46,188 |
94,327 |
45,712 |
| Other accounts payable and accrued expenses |
28,076 |
95,102 |
38,040 |
| TOTAL LIABILITIES |
219,913 |
45,541,387 |
1,261,117 |
| COMMITMENTS AND
CONTINGENCIES(a) |
— |
— |
— |
| NET ASSETS |
$95,496,478 |
$931,531,781 |
$626,947,573 |
| NET ASSETS CONSIST OF: |
|
|
|
| Paid-in capital |
$87,979,876
|
$1,605,673,700
|
$566,996,201
|
| Accumulated earnings (loss) |
7,516,602 |
(674,141,919 ) |
59,951,372 |
| NET ASSETS |
$95,496,478 |
$931,531,781 |
$626,947,573 |
| COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: |
|
|
|
| Class A shares: |
|
|
|
| Net assets |
$4,020,543 |
$156,289,864 |
$29,979,581 |
| Shares of beneficial interest |
249,497 |
19,032,684 |
1,588,703 |
| Net asset value and redemption price per share |
$16.11 |
$8.21 |
$18.87 |
| Offering price per share (100/[100-maximum sales charge] of net asset value) (Note 1) |
$17.09 |
$8.51 |
$20.02 |
| Class C shares:
(redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge) (Note 1) |
|
|
|
| Net assets |
$841,551 |
$41,283,620 |
$11,101,525 |
| Shares of beneficial interest |
55,457 |
5,044,655 |
660,750 |
| Net asset value and offering price per share |
$15.17 |
$8.18 |
$16.80 |
| Class N shares: |
|
|
|
| Net assets |
$12,095,808 |
$2,573,261 |
$298,905 |
| Shares of beneficial interest |
737,565 |
313,504 |
15,652 |
| Net asset value, offering and redemption price per share |
$16.40 |
$8.21 |
$19.10 |
| Class Y shares: |
|
|
|
| Net assets |
$78,538,576 |
$731,385,036 |
$585,567,562 |
| Shares of beneficial interest |
4,799,069 |
88,959,184 |
30,670,767 |
| Net asset value, offering and redemption price per share |
$16.37 |
$8.22 |
$19.09 |
| (a) |
As disclosed in the Notes to Financial Statements, if applicable. |
See accompanying notes to financial statements.
| 28
Statements of
Operations
For the Year Ended November 30, 2023
| |
Loomis Sayles Global Growth
Fund |
Loomis Sayles Senior Floating
Rate and Fixed Income Fund |
Vaughan Nelson Select Fund |
| INVESTMENT
INCOME |
|
|
|
| Dividends |
$831,747
|
$1,034,231
|
$5,203,696
|
| Interest |
16,937 |
93,090,061 |
446,407 |
| Less net foreign taxes withheld |
(74,484 ) |
— |
(50,065 ) |
| |
774,200 |
94,124,292 |
5,600,038 |
| Expenses |
|
|
|
| Management fees (Note 5) |
727,499 |
5,703,785 |
3,745,497 |
| Service and distribution fees (Note 5) |
17,051 |
930,350 |
158,079 |
| Administrative fees (Note 5) |
44,959 |
440,626 |
248,000 |
| Trustees' fees and expenses (Note 5) |
20,289 |
65,190 |
41,999 |
| Transfer agent fees and expenses (Notes 5 and 6) |
73,415 |
797,352 |
451,951 |
| Audit and tax services fees |
46,191 |
94,316 |
45,834 |
| Commitment fees (Note 7) |
1,418 |
1,158,644 |
7,161 |
| Custodian fees and expenses |
32,517 |
121,455 |
21,022 |
| Interest expense (Note 10) |
13,678 |
— |
1,916 |
| Legal fees |
3,603 |
118,514 |
19,240 |
| Registration fees |
75,360 |
87,528 |
152,535 |
| Shareholder reporting expenses |
19,078 |
79,488 |
46,750 |
| Miscellaneous expenses |
39,012 |
37,173 |
31,485 |
| Total expenses |
1,114,070 |
9,634,421 |
4,971,469 |
| Less waiver and/or expense reimbursement (Note 5) |
(167,291 ) |
(1,297,578 ) |
(263,530 ) |
| Net expenses |
946,779 |
8,336,843 |
4,707,939 |
| Net investment income (loss) |
(172,579 ) |
85,787,449 |
892,099 |
| Net realized and unrealized gain (loss) on Investments and Foreign currency transactions
|
|
|
|
| Net realized gain (loss) on: |
|
|
|
| Investments |
(2,522,108 ) |
(54,283,821 ) |
(25,189,095 ) |
| Foreign currency transactions (Note 2c) |
3,875 |
— |
— |
| Net change in unrealized appreciation (depreciation) on: |
|
|
|
| Investments |
23,357,196 |
62,698,256 |
73,745,497 |
| Foreign currency translations (Note 2c) |
14,910 |
— |
— |
| Net realized and unrealized gain on Investments and Foreign currency transactions |
20,853,873 |
8,414,435 |
48,556,402 |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$20,681,294 |
$94,201,884 |
$49,448,501 |
See accompanying notes to financial statements.
29 |
Statements of Changes in Net
Assets
| |
Loomis
Sayles Global Growth Fund |
Loomis
Sayles Senior Floating Rate and Fixed Income Fund | ||
| |
Year Ended November 30,2023 |
Year Ended November 30,2022 |
Year Ended November 30,2023 |
Year Ended November 30,2022 |
| FROM OPERATIONS: |
|
|
|
|
| Net investment income (loss) |
$(172,579
) |
$(96,560
) |
$85,787,449
|
$71,090,380
|
| Net realized gain (loss) on investments and foreign currency transactions |
(2,518,233 ) |
4,892,043 |
(54,283,821 ) |
(43,971,877 ) |
| Net change in unrealized appreciation (depreciation) on investments and foreign
currency translations |
23,372,106 |
(34,078,488 ) |
62,698,256 |
(96,207,311 ) |
| Net increase (decrease) in net assets resulting from operations |
20,681,294 |
(29,283,005 ) |
94,201,884 |
(69,088,808 ) |
| FROM DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
|
|
| Class A |
(191,028 ) |
(424,756 ) |
(15,124,779 ) |
(11,061,592 ) |
| Class C |
(62,385 ) |
(94,792 ) |
(4,129,069 ) |
(3,435,444 ) |
| Class N |
(670,570 ) |
(858,053 ) |
(223,084 ) |
(133,691 ) |
| Class Y |
(5,460,663 ) |
(7,451,003 ) |
(66,580,668 ) |
(59,453,231 ) |
| Total distributions |
(6,384,646 ) |
(8,828,604 ) |
(86,057,600 ) |
(74,083,958 ) |
| NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARES
TRANSACTIONS (Note 11)
|
(13,419,969 ) |
6,941,153 |
(101,033,987 ) |
(372,127,749 ) |
| Net increase (decrease) in net assets |
876,679 |
(31,170,456 ) |
(92,889,703 ) |
(515,300,515 ) |
| NET ASSETS |
|
|
|
|
| Beginning of the year |
94,619,799 |
125,790,255 |
1,024,421,484 |
1,539,721,999 |
| End of the year |
$95,496,478 |
$94,619,799 |
$931,531,781 |
$1,024,421,484 |
See accompanying notes to financial statements.
| 30
Statements of Changes in Net
Assets (continued)
| |
Vaughan
Nelson Select Fund | |
| |
Year Ended November 30,2023 |
Year Ended November 30,2022 |
| FROM OPERATIONS: |
|
|
| Net investment income |
$892,099
|
$662,061
|
| Net realized gain (loss) on investments |
(25,189,095 ) |
426,161 |
| Net change in unrealized appreciation (depreciation) on investments |
73,745,497 |
(29,095,861 ) |
| Net increase (decrease) in net assets resulting from operations |
49,448,501 |
(28,007,639 ) |
| FROM DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
| Class A |
(221,013 ) |
(6,535,289 ) |
| Class C |
(60,686 ) |
(1,628,941 ) |
| Class N |
(3,296 ) |
(628 ) |
| Class Y |
(4,002,563 ) |
(66,474,581 ) |
| Total distributions |
(4,287,558 ) |
(74,639,439 ) |
| NET INCREASE IN NET ASSETS FROM CAPITAL SHARES TRANSACTIONS (Note 11)
|
159,985,037 |
272,403,248 |
| Net increase in net assets |
205,145,980 |
169,756,170 |
| NET ASSETS |
|
|
| Beginning of the year |
421,801,593 |
252,045,423 |
| End of the year |
$626,947,573 |
$421,801,593 |
See accompanying notes to financial statements.
31 |
Financial
Highlights
For a share outstanding throughout each period.
| |
Loomis
Sayles Global Growth Fund—Class A | ||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$14.00 |
$19.07 |
$18.78 |
$14.78 |
$13.28 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment income (loss)(a) |
(0.07 ) |
(0.04 ) |
(0.09 ) |
(0.05 ) |
0.00 (b) |
| Net realized and unrealized gain (loss) |
3.13 |
(3.68 ) |
1.52 |
4.88 |
2.03 |
| Total from Investment Operations |
3.06 |
(3.72 ) |
1.43 |
4.83 |
2.03 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net investment income |
— |
— |
— |
— |
(0.05 ) |
| Net realized capital gains |
(0.95 ) |
(1.35 ) |
(1.14 ) |
(0.83 ) |
(0.48 ) |
| Total Distributions |
(0.95 ) |
(1.35 ) |
(1.14 ) |
(0.83 ) |
(0.53 ) |
| Net asset value, end of the period |
$16.11 |
$14.00 |
$19.07 |
$18.78 |
$14.78 |
| Total return(c)(d) |
23.92 % |
(21.08 )% |
7.95 % |
34.37 % |
16.25 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$4,021
|
$3,225
|
$6,173
|
$4,913
|
$2,832
|
| Net expenses(e) |
1.21 %(f) |
1.20 % |
1.20 %(g) |
1.25 % |
1.26 %(h) |
| Gross expenses |
1.38 %(f) |
1.35 % |
1.29 % |
1.44 % |
1.49 % |
| Net investment income (loss) |
(0.45 )% |
(0.25 )% |
(0.43 )% |
(0.33 )% |
0.03 % |
| Portfolio turnover rate |
24 % |
43 % |
18 % |
44 % |
37 % |
| (a) |
Per share net investment income (loss) has been calculated using the average shares outstanding during the period. |
| (b) |
Amount rounds to less than $0.01 per share. |
| (c) |
A sales charge for Class A shares is not reflected in total return calculations. |
| (d) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (e) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (f) |
Includes interest expense. Without this expense the ratio of net expenses would have been 1.20% and the ratio of gross expenses would have been 1.37%.
|
| (g) |
Effective December 15, 2020, the expense limit decreased from 1.25% to 1.20%. |
| (h) |
Effective July 1, 2019, the expense limit decreased from 1.30% to 1.25%. |
See accompanying notes to financial statements.
| 32
Financial Highlights
(continued)
For a share outstanding throughout each period.
| |
Loomis
Sayles Global Growth Fund—Class C | ||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$13.33 |
$18.36 |
$18.24 |
$14.49 |
$13.06 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment loss(a) |
(0.15 ) |
(0.15 ) |
(0.22 ) |
(0.16 ) |
(0.09 ) |
| Net realized and unrealized gain (loss) |
2.94 |
(3.53 ) |
1.48 |
4.74 |
2.00 |
| Total from Investment Operations |
2.79 |
(3.68 ) |
1.26 |
4.58 |
1.91 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net investment income |
— |
— |
— |
— |
(0.00 )(b) |
| Net realized capital gains |
(0.95 ) |
(1.35 ) |
(1.14 ) |
(0.83 ) |
(0.48 ) |
| Total Distributions |
(0.95 ) |
(1.35 ) |
(1.14 ) |
(0.83 ) |
(0.48 ) |
| Net asset value, end of the period |
$15.17 |
$13.33 |
$18.36 |
$18.24 |
$14.49 |
| Total return(c)(d) |
23.03 % |
(21.71 )% |
7.15 % |
33.44 % |
15.40 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$842
|
$833
|
$1,297
|
$1,274
|
$1,079
|
| Net expenses(e) |
1.96 %(f) |
1.95 % |
1.95 %(g) |
2.00 % |
2.01 %(h) |
| Gross expenses |
2.14 %(f) |
2.10 % |
2.04 % |
2.19 % |
2.23 % |
| Net investment loss |
(1.11 )% |
(1.03 )% |
(1.17 )% |
(1.05 )% |
(0.69 )% |
| Portfolio turnover rate |
24 % |
43 % |
18 % |
44 % |
37 % |
| (a) |
Per share net investment loss has been calculated using the average shares outstanding during the period. |
| (b) |
Amount rounds to less than $0.01 per share. |
| (c) |
A contingent deferred sales charge for Class C shares is not reflected in total return calculations. |
| (d) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (e) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (f) |
Includes interest expense. Without this expense the ratio of net expenses would have been 1.95% and the ratio of gross expenses would have been 2.13%.
|
| (g) |
Effective December 15, 2020, the expense limit decreased from 2.00% to 1.95%. |
| (h) |
Effective July 1, 2019, the expense limit decreased from 2.05% to 2.00%. |
See accompanying notes to financial statements.
33 |
Financial Highlights
(continued)
For a share outstanding throughout each period.
| |
Loomis
Sayles Global Growth Fund—Class N | ||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$14.21 |
$19.29 |
$18.93 |
$14.85 |
$13.34 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment income (loss)(a) |
(0.02 ) |
(0.00 )(b) |
(0.03 ) |
(0.01 ) |
0.05 |
| Net realized and unrealized gain (loss) |
3.19 |
(3.73 ) |
1.53 |
4.92 |
2.03 |
| Total from Investment Operations |
3.17 |
(3.73 ) |
1.50 |
4.91 |
2.08 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net investment income |
(0.03 ) |
— |
— |
— |
(0.09 ) |
| Net realized capital gains |
(0.95 ) |
(1.35 ) |
(1.14 ) |
(0.83 ) |
(0.48 ) |
| Total Distributions |
(0.98 ) |
(1.35 ) |
(1.14 ) |
(0.83 ) |
(0.57 ) |
| Net asset value, end of the period |
$16.40 |
$14.21 |
$19.29 |
$18.93 |
$14.85 |
| Total return(c) |
24.40 % |
(20.87 )% |
8.21 % |
34.84 % |
16.61 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$12,096
|
$9,725
|
$12,293
|
$11,357
|
$3,319
|
| Net expenses(d) |
0.91 %(e) |
0.90 % |
0.90 %(f) |
0.95 % |
0.98 %(g) |
| Gross expenses |
1.06 %(e) |
1.02 % |
0.98 % |
1.13 % |
1.22 % |
| Net investment income (loss) |
(0.13 )% |
(0.01 )% |
(0.14 )% |
(0.09 )% |
0.35 % |
| Portfolio turnover rate |
24 % |
43 % |
18 % |
44 % |
37 % |
| (a) |
Per share net investment income (loss) has been calculated using the average shares outstanding during the period. |
| (b) |
Amount rounds to less than $0.01 per share. |
| (c) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (d) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (e) |
Includes interest expense. Without this expense the ratio of net expenses would have been 0.90% and the ratio of gross expenses would have been 1.05%.
|
| (f) |
Effective December 15, 2020, the expense limit decreased from 0.95% to 0.90%. |
| (g) |
Effective July 1, 2019, the expense limit decreased from 1.00% to 0.95%. |
See accompanying notes to financial statements.
| 34
Financial Highlights
(continued)
For a share outstanding throughout each period.
| |
Loomis
Sayles Global Growth Fund—Class Y | ||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$14.18 |
$19.27 |
$18.91 |
$14.85 |
$13.33 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment income (loss)(a) |
(0.02 ) |
(0.01 ) |
(0.04 ) |
(0.01 ) |
0.04 |
| Net realized and unrealized gain (loss) |
3.18 |
(3.73 ) |
1.54 |
4.90 |
2.04 |
| Total from Investment Operations |
3.16 |
(3.74 ) |
1.50 |
4.89 |
2.08 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net investment income |
(0.02 ) |
— |
— |
— |
(0.08 ) |
| Net realized capital gains |
(0.95 ) |
(1.35 ) |
(1.14 ) |
(0.83 ) |
(0.48 ) |
| Total Distributions |
(0.97 ) |
(1.35 ) |
(1.14 ) |
(0.83 ) |
(0.56 ) |
| Net asset value, end of the period |
$16.37 |
$14.18 |
$19.27 |
$18.91 |
$14.85 |
| Total return(b) |
24.37 % |
(20.95 )% |
8.22 % |
34.70 % |
16.65 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$78,539
|
$80,836
|
$106,028
|
$86,950
|
$63,308
|
| Net expenses(c) |
0.96 %(d) |
0.95 % |
0.95 %(e) |
1.00 % |
1.01 %(f) |
| Gross expenses |
1.14 %(d) |
1.10 % |
1.04 % |
1.19 % |
1.23 % |
| Net investment income (loss) |
(0.16 )% |
(0.08 )% |
(0.19 )% |
(0.05 )% |
0.30 % |
| Portfolio turnover rate |
24 % |
43 % |
18 % |
44 % |
37 % |
| (a) |
Per share net investment income (loss) has been calculated using the average shares outstanding during the period. |
| (b) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (c) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (d) |
Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 1.13%.
|
| (e) |
Effective December 15, 2020, the expense limit decreased from 1.00% to 0.95%. |
| (f) |
Effective July 1, 2019, the expense limit decreased from 1.05% to 1.00%. |
See accompanying notes to financial statements.
35 |
Financial Highlights
(continued)
For a share outstanding throughout each period.
| |
Loomis
Sayles Senior Floating Rate and Fixed Income Fund—Class
A | ||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$8.13 |
$8.96 |
$8.81 |
$9.16 |
$9.62 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment income(a) |
0.73 |
0.43 |
0.32 |
0.43 |
0.57 |
| Net realized and unrealized gain (loss) |
0.08 |
(0.81 ) |
0.16 |
(0.34 ) |
(0.45 ) |
| Total from Investment Operations |
0.81 |
(0.38 ) |
0.48 |
0.09 |
0.12 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net investment income |
(0.73 ) |
(0.45 ) |
(0.33 ) |
(0.44 ) |
(0.58 ) |
| Net asset value, end of the period |
$8.21 |
$8.13 |
$8.96 |
$8.81 |
$9.16 |
| Total return(b)(c) |
10.37 % |
(4.28 )% |
5.47 % |
1.19 % |
1.23 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$156,290
|
$188,201
|
$219,989
|
$208,251
|
$297,634
|
| Net expenses(d) |
1.03 %(e) |
1.05 % |
1.05 % |
1.07 %(f) |
1.06 %(g) |
| Gross expenses |
1.17 % |
1.24 % |
1.24 % |
1.20 %(f) |
1.09 %(g) |
| Net investment income |
8.88 % |
5.04 % |
3.56 % |
4.96 % |
6.03 % |
| Portfolio turnover rate |
67 % |
65 % |
79 % |
65 % |
52 % |
| (a) |
Per share net investment income has been calculated using the average shares outstanding during the period. |
| (b) |
A sales charge for Class A shares is not reflected in total return calculations. |
| (c) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (d) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (e) |
Effective July 1, 2023, the expense limit decreased from 1.05% to 1.00%. See Note 5 of Notes to Financial Statements. |
| (f) |
Includes interest expense. Without this expense the ratio of net expenses would have been 1.05% and the ratio of gross expenses would have been 1.18%.
|
| (g) |
Includes interest expense. Without this expense the ratio of net expenses would have been 1.05% and the ratio of gross expenses would have been 1.08%.
|
See accompanying notes to financial statements.
| 36
Financial Highlights
(continued)
For a share outstanding throughout each period.
| |
Loomis
Sayles Senior Floating Rate and Fixed Income Fund—Class
C | ||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$8.10 |
$8.93 |
$8.78 |
$9.12 |
$9.59 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment income(a) |
0.66 |
0.36 |
0.25 |
0.37 |
0.50 |
| Net realized and unrealized gain (loss) |
0.09 |
(0.80 ) |
0.16 |
(0.34 ) |
(0.46 ) |
| Total from Investment Operations |
0.75 |
(0.44 ) |
0.41 |
0.03 |
0.04 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net investment income |
(0.67 ) |
(0.39 ) |
(0.26 ) |
(0.37 ) |
(0.51 ) |
| Net asset value, end of the period |
$8.18 |
$8.10 |
$8.93 |
$8.78 |
$9.12 |
| Total return(b)(c) |
9.56 % |
(5.04 )% |
4.69 % |
0.53 % |
0.36 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$41,284
|
$62,570
|
$89,618
|
$125,909
|
$233,387
|
| Net expenses(d) |
1.78 %(e) |
1.80 % |
1.80 % |
1.82 %(f) |
1.81 %(g) |
| Gross expenses |
1.92 % |
1.99 % |
1.99 % |
1.95 %(f) |
1.84 %(g) |
| Net investment income |
8.13 % |
4.22 % |
2.80 % |
4.27 % |
5.28 % |
| Portfolio turnover rate |
67 % |
65 % |
79 % |
65 % |
52 % |
| (a) |
Per share net investment income has been calculated using the average shares outstanding during the period. |
| (b) |
A contingent deferred sales charge for Class C shares is not reflected in total return calculations. |
| (c) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (d) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (e) |
Effective July 1, 2023, the expense limit decreased from 1.80% to 1.75%. See Note 5 of Notes to Financial Statements. |
| (f) |
Includes interest expense. Without this expense the ratio of net expenses would have been 1.80% and the ratio of gross expenses would have been 1.93%.
|
| (g) |
Includes interest expense. Without this expense the ratio of net expenses would have been 1.80% and the ratio of gross expenses would have been 1.83%.
|
See accompanying notes to financial statements.
37 |
Financial Highlights
(continued)
For a share outstanding throughout each period.
| |
Loomis
Sayles Senior Floating Rate and Fixed Income Fund—Class
N | ||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$8.13 |
$8.96 |
$8.81 |
$9.17 |
$9.63 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment income(a) |
0.75 |
0.46 |
0.34 |
0.46 |
0.60 |
| Net realized and unrealized gain (loss) |
0.08 |
(0.81 ) |
0.16 |
(0.36 ) |
(0.45 ) |
| Total from Investment Operations |
0.83 |
(0.35 ) |
0.50 |
0.10 |
0.15 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net investment income |
(0.75 ) |
(0.48 ) |
(0.35 ) |
(0.46 ) |
(0.61 ) |
| Net asset value, end of the period |
$8.21 |
$8.13 |
$8.96 |
$8.81 |
$9.17 |
| Total return(b) |
10.71 % |
(4.00 )% |
5.79 % |
1.37 % |
1.54 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$2,573
|
$2,278
|
$2,528
|
$151
|
$242
|
| Net expenses(c) |
0.73 %(d) |
0.75 % |
0.75 % |
0.77 %(e) |
0.76 %(f) |
| Gross expenses |
0.88 % |
0.96 % |
1.03 % |
1.24 %(e) |
1.11 %(f) |
| Net investment income |
9.20 % |
5.36 % |
3.83 % |
5.31 % |
6.33 % |
| Portfolio turnover rate |
67 % |
65 % |
79 % |
65 % |
52 % |
| (a) |
Per share net investment income has been calculated using the average shares outstanding during the period. |
| (b) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (c) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (d) |
Effective July 1, 2023, the expense limit decreased from 0.75% to 0.70%. See Note 5 of Notes to Financial Statements. |
| (e) |
Includes interest expense. Without this expense the ratio of net expenses would have been 0.75% and the ratio of gross expenses would have been 1.22%.
|
| (f) |
Includes interest expense. Without this expense the ratio of net expenses would have been 0.75% and the ratio of gross expenses would have been 1.09%.
|
See accompanying notes to financial statements.
| 38
Financial Highlights
(continued)
For a share outstanding throughout each period.
| |
Loomis
Sayles Senior Floating Rate and Fixed Income Fund—Class
Y | ||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$8.14 |
$8.97 |
$8.82 |
$9.17 |
$9.63 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment income(a) |
0.75 |
0.44 |
0.34 |
0.46 |
0.59 |
| Net realized and unrealized gain (loss) |
0.08 |
(0.79 ) |
0.16 |
(0.35 ) |
(0.45 ) |
| Total from Investment Operations |
0.83 |
(0.35 ) |
0.50 |
0.11 |
0.14 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net investment income |
(0.75 ) |
(0.48 ) |
(0.35 ) |
(0.46 ) |
(0.60 ) |
| Net asset value, end of the period |
$8.22 |
$8.14 |
$8.97 |
$8.82 |
$9.17 |
| Total return(b) |
10.65 % |
(4.04 )% |
5.73 % |
1.45 % |
1.49 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$731,385
|
$771,373
|
$1,227,587
|
$875,829
|
$1,929,869
|
| Net expenses(c) |
0.78 %(d) |
0.80 % |
0.80 % |
0.82 %(e) |
0.81 %(f) |
| Gross expenses |
0.92 % |
0.99 % |
0.99 % |
0.95 %(e) |
0.84 %(f) |
| Net investment income |
9.12 % |
5.11 % |
3.80 % |
5.28 % |
6.28 % |
| Portfolio turnover rate |
67 % |
65 % |
79 % |
65 % |
52 % |
| (a) |
Per share net investment income has been calculated using the average shares outstanding during the period. |
| (b) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (c) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (d) |
Effective July 1, 2023, the expense limit decreased from 0.80% to 0.75%. See Note 5 of Notes to Financial Statements. |
| (e) |
Includes interest expense. Without this expense the ratio of net expenses would have been 0.80% and the ratio of gross expenses would have been 0.93%.
|
| (f) |
Includes interest expense. Without this expense the ratio of net expenses would have been 0.80% and the ratio of gross expenses would have been 0.83%.
|
See accompanying notes to financial statements.
39 |
Financial Highlights
(continued)
For a share outstanding throughout each period.
| |
Vaughan
Nelson Select Fund—Class A |
||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$17.24 |
$26.43 |
$20.00 |
$18.63 |
$18.13 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment income (loss)(a) |
(0.01 ) |
(0.00 )(b) |
0.07 (c) |
0.06 |
0.14 |
| Net realized and unrealized gain (loss) |
1.80 |
(1.94 ) |
7.70 |
2.75 |
1.90 |
| Total from Investment Operations |
1.79 |
(1.94 ) |
7.77 |
2.81 |
2.04 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net investment income |
— |
— |
(0.08 ) |
(0.13 ) |
— |
| Net realized capital gains |
(0.16 ) |
(7.25 ) |
(1.26 ) |
(1.31 ) |
(1.54 ) |
| Total Distributions |
(0.16 ) |
(7.25 ) |
(1.34 ) |
(1.44 ) |
(1.54 ) |
| Net asset value, end of the period |
$18.87 |
$17.24 |
$26.43 |
$20.00 |
$18.63 |
| Total return(d)(e) |
10.54 % |
(10.50 )% |
41.46 %(c) |
16.21 % |
13.67 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$29,980
|
$23,653
|
$20,382
|
$13,722
|
$15,434
|
| Net expenses(f) |
1.10 % |
1.09 %(g) |
1.10 %(h)(i)
|
1.13 % |
1.16 %(j) |
| Gross expenses |
1.15 % |
1.12 % |
1.14 % |
1.18 % |
1.21 % |
| Net investment income (loss) |
(0.06 )% |
(0.02 )% |
0.30 %(c) |
0.37 % |
0.84 % |
| Portfolio turnover rate |
69 % |
74 % |
93 % |
88 % |
51 % |
| (a) |
Per share net investment income (loss) has been calculated using the average shares outstanding during the period. |
| (b) |
Amount rounds to less than $0.01 per share. |
| (c) |
Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.06), total return would have been 40.82% and the ratio of
net investment loss to average net assets would have been (0.25)%.
|
| (d) |
A sales charge for Class A shares is not reflected in total return calculations. |
| (e) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (f) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (g) |
Includes additional voluntary waiver of advisory fee of 0.01%. |
| (h) |
Effective July 1, 2021, the expense limit decreased from 1.15% to 1.10%. |
| (i) |
Includes additional voluntary waiver of advisory fee of 0.03%. |
| (j) |
Effective July 1, 2019, the expense limit decreased from 1.20% to 1.15%. |
See accompanying notes to financial statements.
| 40
Financial Highlights
(continued)
For a share outstanding throughout each period.
| |
Vaughan
Nelson Select Fund—Class C |
||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$15.49 |
$24.61 |
$18.76 |
$17.56 |
$17.31 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment income (loss)(a) |
(0.13 ) |
(0.12 ) |
(0.08 )(b) |
(0.07 ) |
0.02 |
| Net realized and unrealized gain (loss) |
1.60 |
(1.75 ) |
7.19 |
2.58 |
1.77 |
| Total from Investment Operations |
1.47 |
(1.87 ) |
7.11 |
2.51 |
1.79 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net realized capital gains |
(0.16 ) |
(7.25 ) |
(1.26 ) |
(1.31 ) |
(1.54 ) |
| Net asset value, end of the period |
$16.80 |
$15.49 |
$24.61 |
$18.76 |
$17.56 |
| Total return(c)(d) |
9.65 % |
(11.16 )% |
40.44 %(b) |
15.31 % |
12.86 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$11,102
|
$5,784
|
$5,357
|
$5,246
|
$6,313
|
| Net expenses(e) |
1.85 % |
1.84 %(f) |
1.86 %(g)(h)
|
1.88 % |
1.91 %(i) |
| Gross expenses |
1.90 % |
1.88 % |
1.89 % |
1.93 % |
1.96 % |
| Net investment income (loss) |
(0.81 )% |
(0.76 )% |
(0.39 )%(b) |
(0.40 )% |
0.09 % |
| Portfolio turnover rate |
69 % |
74 % |
93 % |
88 % |
51 % |
| (a) |
Per share net investment income (loss) has been calculated using the average shares outstanding during the period. |
| (b) |
Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.21), total return would have been 39.76% and the ratio of
net investment loss to average net assets would have been (1.00)%.
|
| (c) |
A contingent deferred sales charge for Class C shares is not reflected in total return calculations. |
| (d) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (e) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (f) |
Includes additional voluntary waiver of advisory fee of 0.01%. |
| (g) |
Effective July 1, 2021, the expense limit decreased from 1.90% to 1.85%. |
| (h) |
Includes additional voluntary waiver of advisory fee of 0.03%. |
| (i) |
Effective July 1, 2019, the expense limit decreased from 1.95% to 1.90%. |
See accompanying notes to financial statements.
41 |
Financial Highlights
(continued)
For a share outstanding throughout each period.
| |
Vaughan
Nelson Select Fund—Class N |
||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$17.43 |
$26.63 |
$20.14 |
$18.76 |
$18.26 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment income(a) |
0.05 |
0.08 |
0.13 (b) |
0.11 |
0.19 |
| Net realized and unrealized gain (loss) |
1.82 |
(2.00 ) |
7.76 |
2.77 |
1.91 |
| Total from Investment Operations |
1.87 |
(1.92 ) |
7.89 |
2.88 |
2.10 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net investment income |
(0.04 ) |
(0.03 ) |
(0.14 ) |
(0.19 ) |
(0.06 ) |
| Net realized capital gains |
(0.16 ) |
(7.25 ) |
(1.26 ) |
(1.31 ) |
(1.54 ) |
| Total Distributions |
(0.20 ) |
(7.28 ) |
(1.40 ) |
(1.50 ) |
(1.60 ) |
| Net asset value, end of the period |
$19.10 |
$17.43 |
$26.63 |
$20.14 |
$18.76 |
| Total return(c) |
10.90 % |
(10.29 )% |
41.87 %(b) |
16.50 % |
13.93 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$299
|
$289
|
$2
|
$2
|
$1
|
| Net expenses(d) |
0.80 % |
0.80 % |
0.83 %(e) |
0.85 % |
0.87 %(f) |
| Gross expenses |
1.15 % |
3.35 % |
49.27 % |
71.85 % |
63.51 % |
| Net investment income |
0.25 % |
0.51 % |
0.56 %(b) |
0.61 % |
1.10 % |
| Portfolio turnover rate |
69 % |
74 % |
93 % |
88 % |
51 % |
| (a) |
Per share net investment income has been calculated using the average shares outstanding during the period. |
| (b) |
Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.01, total return would have been 41.24% and the ratio
of net investment income to average net assets would have been 0.02%.
|
| (c) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (d) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (e) |
Effective July 1, 2021, the expense limit decreased from 0.85% to 0.80%. |
| (f) |
Effective July 1, 2019, the expense limit decreased from 0.90% to 0.85%. |
See accompanying notes to financial statements.
| 42
Financial Highlights
(continued)
For a share outstanding throughout each period.
| |
Vaughan
Nelson Select Fund—Class Y |
||||
| |
Year Ended November 30,
2023 |
Year Ended November 30,
2022 |
Year Ended November 30,
2021 |
Year Ended November 30,
2020 |
Year Ended November 30,
2019 |
| Net asset value, beginning of the period |
$17.43 |
$26.63 |
$20.14 |
$18.75 |
$18.25 |
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
|
|
|
|
|
| Net investment income(a) |
0.04 |
0.05 |
0.13 (b) |
0.11 |
0.19 |
| Net realized and unrealized gain (loss) |
1.81 |
(1.97 ) |
7.75 |
2.77 |
1.90 |
| Total from Investment Operations |
1.85 |
(1.92 ) |
7.88 |
2.88 |
2.09 |
| LESS DISTRIBUTIONS FROM: |
|
|
|
|
|
| Net investment income |
(0.03 ) |
(0.03 ) |
(0.13 ) |
(0.18 ) |
(0.05 ) |
| Net realized capital gains |
(0.16 ) |
(7.25 ) |
(1.26 ) |
(1.31 ) |
(1.54 ) |
| Total Distributions |
(0.19 ) |
(7.28 ) |
(1.39 ) |
(1.49 ) |
(1.59 ) |
| Net asset value, end of the period |
$19.09 |
$17.43 |
$26.63 |
$20.14 |
$18.75 |
| Total return(c) |
10.81 % |
(10.31 )% |
41.81 %(b) |
16.52 % |
13.94 % |
| RATIOS TO AVERAGE NET ASSETS: |
|
|
|
|
|
| Net assets, end of the period (000's) |
$585,568
|
$392,076
|
$226,305
|
$205,557
|
$204,856
|
| Net expenses(d) |
0.85 % |
0.84 %(e) |
0.85 %(f)(g)
|
0.88 % |
0.91 %(h) |
| Gross expenses |
0.90 % |
0.88 % |
0.89 % |
0.93 % |
0.96 % |
| Net investment income |
0.20 % |
0.26 % |
0.56 %(b) |
0.61 % |
1.09 % |
| Portfolio turnover rate |
69 % |
74 % |
93 % |
88 % |
51 % |
| (a) |
Per share net investment income has been calculated using the average shares outstanding during the period. |
| (b) |
Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been less than $(0.01), total return would have been 41.17% and
the ratio of net investment loss to average net assets would have been less than
(0.01)%. |
| (c) |
Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
| (d) |
The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses
would have been higher. |
| (e) |
Includes additional voluntary waiver of advisory fee of 0.01%. |
| (f) |
Effective July 1, 2021, the expense limit decreased from 0.90% to 0.85%. |
| (g) |
Includes additional voluntary waiver of advisory fee of 0.03%. |
| (h) |
Effective July 1, 2019, the expense limit decreased from 0.95% to 0.90%. |
See accompanying notes to financial statements.
43 |
Notes to
Financial Statements
November 30, 2023
1.Organization.
Natixis Funds Trust II (the “Trust”) is organized as a
Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment
company. The Declaration of Trust permits the Board of Trustees to authorize the issuance of an unlimited number of shares of the Trust in multiple series. The financial statements for certain funds of the Trust are presented in separate reports. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:
Loomis Sayles Global Growth Fund (“Global Growth Fund”)
Loomis Sayles Senior Floating Rate and Fixed Income Fund (“Senior Floating Rate and Fixed Income Fund”)
Vaughan Nelson Select Fund (“Select Fund”)
Loomis Sayles Senior Floating Rate and Fixed Income Fund (“Senior Floating Rate and Fixed Income Fund”)
Vaughan Nelson Select Fund (“Select Fund”)
Global Growth Fund and Senior Floating Rate and Fixed Income
Fund are diversified investment companies. Select Fund is a non-diversified investment company.
Each Fund offers Class A, Class C, Class N and Class Y shares. Class A shares are sold
with a maximum front-end sales charge of 5.75% for Global Growth Fund and Select Fund and 3.50% for Senior Floating Rate and Fixed Income Fund. Class C shares do not pay a
front-end sales charge, pay higher Rule 12b-1 fees than Class A shares for eight years (at which point they automatically convert to Class A shares) (prior to May 1, 2021, Class C shares automatically converted to Class A shares after ten years) and may be subject to a contingent deferred sales charge (“CDSC”) of 1.00% if those shares are redeemed within one year of acquisition, except for reinvested distributions. Class N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are offered with an initial minimum investment of $1,000,000. Class Y shares are offered with an initial minimum investment of $100,000. Certain categories of investors are exempted from the minimum investment amounts for Class N and Class Y as outlined in the relevant Fund’s prospectus.
Most expenses 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 Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV and Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”) and Natixis ETF Trust and Natixis ETF Trust II (“Natixis ETF 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 (such as the Rule 12b-1 fees applicable to Class A and Class C), and transfer agent fees are borne collectively for Class A, Class C and Class Y, and individually for Class N. 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 distributions
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 follow the accounting and reporting guidelines provided
for investment companies and 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. Management has evaluated the events and transactions subsequent to year-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds' financial statements.
a. Valuation. Registered investment companies are required to value portfolio investments using an
unadjusted, readily available market quotation. Each Fund obtains readily available market quotations from independent pricing services. Fund investments for which readily available market quotations are not available are priced at fair value pursuant to the Funds’ Valuation Procedures. The Board of Trustees has approved a valuation designee who is subject to the Board’s oversight.
Unadjusted readily available market quotations that are utilized for exchange traded equity securities (including shares of closed-end investment companies and exchange-traded funds) include the last sale price quoted on the exchange where the security is traded most extensively. Shares of open-end investment companies are valued at net asset value ("NAV") per share.
Exchange traded equity securities for which there is no reported sale during the day
are fair valued at the closing bid quotation as reported by an independent pricing service. Unlisted equity securities (except unlisted preferred equity securities) are fair
valued at the last sale price quoted in the market where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. If there is no last sale price or closing bid quotation available, unlisted equity securities will be fair valued using evaluated bids furnished by an independent pricing service, if available.
Debt securities and unlisted preferred equity securities are fair valued based on
evaluated bids furnished to the Funds by an independent pricing service or bid prices obtained from broker-dealers. Senior loans and collateralized loan obligations ("CLOs")
are fair valued at bid prices supplied by an independent pricing service, if available. Broker-dealer bid prices may be used to fair value
| 44
Notes to
Financial Statements (continued)
November 30, 2023
debt, unlisted equities, senior loans and CLOs where an independent pricing service is unable to price an investment or where an
independent pricing service does not provide a reliable price for the investment.
The Funds may also fair value investments in other circumstances such as when extraordinary events occur after the close of a foreign market, but prior to the close of the New York Stock Exchange. This may include situations relating to a single issuer (such as a declaration of bankruptcy or a delisting of the issuer’s security from the primary market on which it has traded) as well as events affecting the securities markets in general (such as market disruptions or closings and significant fluctuations in U.S. and/or foreign markets). When fair valuing a Fund’s investments, the valuation designee may, among other things, use modeling tools or other processes that may take into account factors such as issuer specific information, or other related market activity and/or information that occurred after the close of the foreign market but before the time the Fund’s NAV is calculated. Fair valuation by the Fund(s) valuation designee may require subjective determinations about the value of the investment, and fair values used to determine a Fund’s NAV may differ from quoted or published prices, or from prices that are used by others, for the same investments. In addition, the use of fair value pricing may not always result in adjustments to the prices of investments held by a Fund.
b. Investment Transactions and
Related Investment Income. Investment transactions are accounted for on a
trade date plus one day basis for daily NAV calculation. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income (including income reinvested) and foreign withholding tax, if applicable, are recorded on the ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Dividends reinvested and stock dividends are reflected as non-cash dividends on the Statements of Operations. Loan consent fees, upfront origination fees and/or amendment fees are recorded when received and included in interest income on the Statements of Operations. Interest income is increased by the accretion of discount and decreased by the amortization of premium, if applicable. For securities with paydown provisions, principal payments received are treated as a proportionate reduction to the cost basis of the securities, and excess or shortfall amounts are recorded as income. For payment-in-kind securities, income received in-kind is reflected as an increase to the principal and cost basis of the securities. 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 values of securities, currencies and
other assets and liabilities denominated in currencies other than U.S. dollars, if any, 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 into U.S. dollars on the respective dates of such
transactions.
Net realized foreign exchange gains or losses arise
from sales of foreign currency, changes in exchange rates between the trade and settlement dates on securities transactions and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded in the Funds’ books and records and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investment securities, as of the end of the fiscal period, resulting from changes in exchange rates. Net realized foreign exchange gains or losses and the net change in unrealized foreign exchange gains or losses are disclosed in the Statements of Operations. For federal income tax purposes, net realized foreign exchange gains or losses are characterized as ordinary income, and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.
The values of investment securities are presented at the foreign exchange rates prevailing at the end of the period for financial reporting purposes. Net realized and unrealized gains or losses on investments reported in the Statements of Operations reflect gains or losses resulting from changes in exchange rates and fluctuations which arise due to changes in market prices of investment securities. For federal income tax purposes, a portion of the net realized gain or loss on investments arising from changes in exchange rates, which is reflected in the Statements of Operations, may be characterized as ordinary income and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.
The Funds 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.
d. Federal and Foreign Income Taxes. The 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 of 1986, as amended, 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 each Fund’s tax positions for the open tax years as
of November 30, 2023 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject
to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the
45 |
Notes to
Financial Statements (continued)
November 30, 2023
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 withholding taxes on investment income and taxes on
capital gains on investments that are accrued and paid based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the
Fund invests. Foreign withholding taxes on dividend and interest income are reflected on the Statements of Operations as a reduction of investment income, net of amounts that have been or are expected to be reclaimed and paid. Dividends and interest receivable on the Statements of Assets and Liabilities are net of foreign withholding taxes. Foreign withholding taxes where reclaims have been or are expected to be filed and paid are reflected on the Statements of Assets and Liabilities as tax reclaims receivable. Capital gains taxes paid are included in net realized gain (loss) on investments in the Statements of Operations. Accrued but unpaid capital gains taxes are reflected as foreign taxes payable on the Statements of Assets and Liabilities, if applicable, and reduce unrealized gains on investments. In the event that realized gains on investments are subsequently offset by realized losses, taxes paid on realized gains may be returned to a Fund. Such amounts, if applicable, are reflected as foreign tax rebates receivable on the Statements of Assets and Liabilities and are recorded as a realized gain when received.
e. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the 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. When the Fund identifies the character of distributions paid by REITs in the previous calendar year, certain distributions to Fund shareholders may be redesignated as capital gain distributions or, if in excess of taxable income, as a return of capital. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as foreign currency gains and losses, premium amortization, corporate actions, deferred Trustees' fees, distributions in excess of income and/or capital gain, return of capital distributions received, paydown gains and losses, capital gain distribution received and distribution re-designations. Permanent book and tax basis differences relating to shareholder distributions, net investment income, and net realized gains will result in reclassifications to the capital accounts reported on the Statements of Assets and Liabilities. Temporary differences between book and tax distributable earnings are primarily due to deferred Trustees’ fees, passive foreign investment company adjustments, premium amortization, corporate actions, dividends payable, capital gain distribution received, return of capital distributions received and wash sales. Amounts of income and capital gain available to be distributed on a tax basis are determined annually, and at other times during the Fund’s fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and short-term capital gains are considered to be distributed from 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 years ended November 30, 2023 and 2022 was as follows:
| |
2023 Distributions |
2022 Distributions | ||||
| Fund |
Ordinary Income |
Long-Term
Capital
Gains |
Total |
Ordinary Income |
Long-Term
Capital
Gains |
Total |
| Global Growth Fund |
$126,113
|
$6,258,533
|
$6,384,646
|
$19,003
|
$8,809,601
|
$8,828,604
|
| Senior Floating Rate and Fixed Income Fund |
86,057,600 |
— |
86,057,600 |
74,083,958 |
— |
74,083,958 |
| Select Fund |
704,845 |
3,582,713 |
4,287,558 |
38,159,873 |
36,479,566 |
74,639,439 |
Distributions paid to shareholders from net investment income and net realized
capital gains, based on accounting principles generally accepted in the United States of America, are consolidated and reported on the Statements of Changes in Net Assets as
Distributions to Shareholders. Distributions paid to shareholders from net investment income and net realized capital gains expressed in per-share amounts, based on accounting principles generally accepted in the United States of America, are separately stated and reported within the Financial Highlights.
| 46
Notes to
Financial Statements (continued)
November 30, 2023
As of November 30, 2023, the components of distributable earnings on a tax basis were as follows:
| |
Global Growth Fund |
Senior Floating
Rate and Fixed
Income Fund |
Select Fund |
| Undistributed ordinary income |
$— |
$332,967 |
$843,478 |
| Capital loss carryforward: |
|
|
|
| Short-term: |
|
|
|
| No expiration date |
(892,240 ) |
(137,687,461 ) |
(15,728,841 ) |
| Long-term: |
|
|
|
| No expiration date |
(1,937,491 ) |
(490,270,153 ) |
(9,405,966 ) |
| Total capital loss carryforward |
(2,829,731 ) |
(627,957,614 ) |
(25,134,807 ) |
| Unrealized appreciation (depreciation) |
10,401,096 |
(44,535,203 ) |
84,380,182 |
| Total accumulated earnings (losses) |
$7,571,365 |
$(672,159,850 ) |
$60,088,853 |
As of November 30, 2023, the tax cost of investments (including derivatives, if applicable) and unrealized appreciation (depreciation) on a federal tax basis were as follows:
| |
Global Growth Fund |
Senior Floating
Rate and Fixed
Income Fund |
Select Fund |
| Federal tax cost |
$84,991,512 |
$996,091,299 |
$541,611,963 |
| Gross tax appreciation |
$17,004,861
|
$6,239,689
|
$93,418,735
|
| Gross tax depreciation |
(6,615,519 ) |
(50,774,892 ) |
(9,038,553 ) |
| Net tax appreciation (depreciation) |
$10,389,342 |
$(44,535,203 ) |
$84,380,182 |
The difference between these amounts and those reported in the components of distributable earnings, if any, is primarily attributable to foreign currency mark-to-market.
f. Senior Loans. Senior Floating Rate and Fixed Income Fund may invest in senior loans to corporate,
governmental or other borrowers. Senior loans, which include both secured and unsecured loans made by banks and other financial institutions to corporate customers, typically hold the most senior position in a borrower’s capital structure, may be secured by the borrower’s assets and have interest rates that reset frequently. Senior loans can include term loans, revolving credit facility loans and second lien loans. A senior loan is often administered by a bank or other financial institution that acts as agent for all holders. The agent administers the terms of the senior loan, as specified in the loan agreement. Large loans may be shared or syndicated among several lenders. The Fund may enter into the primary syndicate for a loan or it may also purchase all or a portion of loans from other lenders (sometimes referred to as loan assignments), in either case becoming a direct lender. The settlement period for senior loans is uncertain as there is no standardized settlement schedule applicable to such investments. Senior loans outstanding at the end of the period are listed in the Fund’s Portfolio of Investments.
g. Repurchase Agreements. Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase
Agreement, under which each Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. 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. As of November 30, 2023, each Fund, as applicable, had investments in repurchase agreements for which the value of the related collateral exceeded the value of the repurchase agreement. The gross value of repurchase agreements is included in the Statements of Assets and Liabilities for financial reporting purposes.
h. Unfunded Loan
Commitments. Senior Floating Rate and Fixed Income Fund may enter into
unfunded loan commitments, which are contractual obligations for future funding at the option of the borrower. Unfunded loan commitments represent a future obligation, in
full, even though a percentage of the committed amount may not be utilized by the borrower. Unfunded loan commitments, and the
47 |
Notes to
Financial Statements (continued)
November 30, 2023
obligation for future funding, are recorded as a liability on the Statements of Assets and Liabilities at par value at the time the
commitment is entered into. Purchases of unfunded loan commitments may have a similar effect on the Fund's NAV as if the Fund had created a degree of leverage in the portfolio. Market risk exists with these commitments to the same extent as if the securities were owned on a settled basis. Losses may arise due to changes in the value of the unfunded loan commitments.
As of November 30, 2023, the Fund had unfunded loan commitments reflected on the Statements of Assets and Liabilities, which could be extended at the option of the borrower, pursuant to loan agreements with the following borrowers:
| Borrower |
Type |
Principal Amount |
| The Action Environmental Group, Inc |
2023 Delayed Draw Term Loan B |
$326,087
|
| Ryan LLC |
Delayed Draw Term Loan |
220,191 |
| OMNIA Partners LLC |
Delayed Draw Term Loan |
150,277 |
| |
|
$696,555 |
Under the terms of the contract, the Fund has the option to assign (sell) all or a portion of the unfunded loan commitment. Upon the completion of such assignment, the Fund is released from its rights and obligations pertaining to the portion of the unfunded loan commitment assigned. When the Fund sells a portion of an unfunded loan commitment, the portion sold is removed from the Portfolio of Investments and the unsettled amount is reflected as unfunded loan commitments sold on the Statements of Assets and Liabilities until settlement date. Once settled, the portion of the unfunded loan commitment assigned is relieved from the Fund’s unfunded loan commitments liability.
i. Indemnifications. Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities 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 2020, the Financial Accounting Standards Board (“FASB”) issued
ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”) in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of the London Interbank Offered Rate (“LIBOR”), which was expected to occur no later than June 30, 2023. In January 2021, FASB issued Accounting Standard Update 2021-01 (“ASU 2021-01”), which is an update of ASU 2020-04. Regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation than LIBOR. ASU 2020-04 provides temporary guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 amendments offer optional expedients for contract modifications that would allow an entity to account for such modifications by prospectively adjusting the effective interest rate, instead of evaluating each contract, in accordance with existing accounting standards, as to whether reference rate modifications constitute the establishment of new contracts or the continuation of existing contracts. ASU 2021-01 clarifies that certain provisions in Topic 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. In December 2022, FASB issued a further update to Topic 848 under ASU 2022-06, which defers the sunset date of Topic 848 to December 31, 2024, after which entities will no longer be permitted to apply the optional expedients provided in Topic 848. As of June 30, 2023, LIBOR had ceased to be published on a representative basis, and will be replaced by an alternative reference rate at the next reset date subsequent to June 30, 2023 for all investments for which LIBOR is the current reference rate. Management has elected to apply the optional expedients when appropriate and account for such modifications by prospectively adjusting the effective interest rate. There is no material impact to the Funds' financial statements.
k. Regulatory Update. Effective January 24, 2023, the SEC adopted a release (the “Release”) containing rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in the new tailored shareholder reports but will be available online, delivered free of charge upon request, and filed with the SEC on a semiannual basis on Form N-CSR. In addition to the removal of financial statements from the new tailored shareholder reports, the Release requires mandatory mailing of the reports, unless a shareholder specifically opts out and chooses electronic delivery. The Release also requires that the new tailored shareholder reports be no longer than 2-4 pages, include only a single share class of a single fund, and use a broad-based securities market index for performance comparison
| 48
Notes to
Financial Statements (continued)
November 30, 2023
purposes. Management is evaluating the impact of the Release on the content of the current shareholder report and newly created
tailored shareholder reports and expects to meet the required compliance date of July 24, 2024.
3.Fair Value
Measurements. In accordance with accounting standards related to fair
value measurements and disclosures, the Funds have categorized the inputs utilized in determining the value of each Fund’s assets or liabilities. These inputs are
summarized in the three broad levels listed below:
• Level 1 — quoted prices in active markets for identical
assets or liabilities;
• Level 2 — prices determined using
other significant inputs that are observable either directly, or indirectly through corroboration with observable market data (which could include quoted prices for similar
assets or liabilities, interest rates, credit risk, etc.); and
• Level 3 — prices determined using
significant unobservable inputs when quoted prices or observable inputs are unavailable such as when there is little or no market activity for an asset or liability
(unobservable inputs reflect each Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information
available).
The inputs or methodology used for valuing securities
are not necessarily an indication of the risk associated with investing in those securities.
The Funds' pricing policies have been approved by the Board of Trustees. Investments
for which market quotations are readily available are categorized in Level 1. Other investments for which an independent pricing service is utilized are categorized in Level
2. Broker-dealer bid prices for which the Funds have knowledge of the inputs used by the broker-dealer are categorized in Level 2. All other investments, including broker-dealer bid prices for which the Funds do not have knowledge of the inputs used by the broker-dealer, as well as investments fair valued by the valuation designee, are categorized in Level 3. All Level 2 and 3 securities are defined as being fair valued.
Under certain conditions and based upon specific facts and circumstances, the Fund’s valuation designee may determine that a fair valuation should be made for portfolio investment(s). These valuation designee fair valuations will be based upon a significant amount of Level 3 inputs.
The following is a summary of the inputs used to value the Funds' investments as of November 30, 2023, at value:
| Global Growth Fund | ||||
| Asset Valuation Inputs | ||||
| Description |
Level 1 |
Level 2 |
Level 3 |
Total |
| Common Stocks |
|
|
|
|
| China |
$7,212,673
|
$2,772,103
|
$—
|
$9,984,776
|
| Denmark |
— |
2,883,801 |
— |
2,883,801 |
| France |
— |
835,111 |
— |
835,111 |
| Japan |
— |
1,832,547 |
— |
1,832,547 |
| Netherlands |
— |
3,107,882 |
— |
3,107,882 |
| Switzerland |
2,190,651 |
3,372,072 |
— |
5,562,723 |
| United Kingdom |
— |
1,086,611 |
— |
1,086,611 |
| United States |
52,957,897 |
4,281,794 |
— |
57,239,691 |
| All Other Common Stocks(a) |
12,452,836 |
— |
— |
12,452,836 |
| Total Common Stocks |
74,814,057 |
20,171,921 |
— |
94,985,978 |
| Short-Term Investments |
— |
394,876 |
— |
394,876 |
| Total Investments |
$74,814,057 |
$20,566,797 |
$— |
$95,380,854 |
| (a) |
Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments. |
49 |
Notes to
Financial Statements (continued)
November 30, 2023
| Senior Floating Rate and Fixed Income Fund | ||||
| Asset Valuation Inputs | ||||
| Description |
Level 1 |
Level 2 |
Level 3 |
Total |
| Senior Loans(a) |
$—
|
$784,808,644
|
$—
|
$784,808,644
|
| Bonds and Notes(a) |
— |
57,002,800 |
— |
57,002,800 |
| Exchange-Traded Funds |
14,531,235 |
— |
— |
14,531,235 |
| Common Stocks |
|
|
|
|
| Oil, Gas & Consumable Fuels |
— |
— |
5,691 |
5,691 |
| Textiles, Apparel & Luxury Goods |
— |
172,997 |
— |
172,997 |
| Total Common Stocks |
— |
172,997 |
5,691 |
178,688 |
| Warrants |
— |
55 |
— |
55 |
| Short-Term Investments |
— |
95,034,674 |
— |
95,034,674 |
| Total Investments |
$14,531,235 |
$937,019,170 |
$5,691 |
$951,556,096 |
| (a) |
Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments. |
| Select Fund | ||||
| Asset Valuation Inputs | ||||
| Description |
Level 1 |
Level 2 |
Level 3 |
Total |
| Common Stocks(a) |
$612,837,194
|
$—
|
$—
|
$612,837,194
|
| Short-Term Investments |
— |
13,154,951 |
— |
13,154,951 |
| Total Investments |
$612,837,194 |
$13,154,951 |
$— |
$625,992,145 |
| (a) |
Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments. |
The following is a reconciliation of Level 3 investments for which significant
unobservable inputs were used to determine fair value as of November 30, 2022 and/or November 30, 2023:
| Senior Floating Rate and Fixed Income Fund | ||||||||||
| Asset Valuation Inputs | ||||||||||
| Investments in Securities |
Balance as of November 30,
2022 |
Accrued Discounts
(Premiums) |
Realized Gain
(Loss) |
Change in Unrealized
Appreciation (Depreciation) |
Purchases |
Sales |
Transfers into
Level 3 |
Transfers out of
Level 3 |
Balance as of November 30,
2023 |
Change in Unrealized
Appreciation (Depreciation) from
Investments Still Held at November 30,
2023 |
| Common Stocks |
|
|
|
|
|
|
|
|
|
|
| Oil, Gas & Consumable Fuels |
$5,691 |
$— |
$— |
$— |
$— |
$— |
$— |
$— |
$5,691 |
$— |
4.Purchases and Sales of Securities. For the year ended November 30, 2023, purchases and sales of securities (excluding
short-term investments and including paydowns) were as
follows:
| |
U.S. Government/ Agency Securities |
Other Securities | ||
| Fund |
Purchases |
Sales |
Purchases |
Sales |
| Global Growth Fund |
$—
|
$—
|
$22,505,508
|
$42,763,021
|
| Senior Floating Rate and Fixed Income Fund |
9,485,895 |
34,582,707 |
575,371,560 |
645,468,303 |
| Select Fund |
— |
— |
505,350,848 |
355,740,035 |
| 50
Notes to
Financial Statements (continued)
November 30, 2023
5.Management
Fees and Other Transactions with Affiliates.
a. Management Fees. Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment
adviser to Global Growth Fund and Senior Floating Rate and Fixed Income Fund. Loomis Sayles is a limited partnership whose sole general partner, Loomis, Sayles & Company, Inc., is indirectly owned by Natixis Investment Managers, LLC ("Natixis"), which is part of Natixis Investment Managers, an international asset management group based in Paris, France.
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:
| Fund |
Percentage of Average Daily Net Assets |
| Global Growth Fund |
0.75 % |
| Senior Floating Rate and Fixed Income Fund |
0.60 % |
Natixis Advisors, LLC (“Natixis Advisors”) serves as investment adviser to Select Fund. Natixis Advisors is a wholly-owned subsidiary of Natixis. Under the terms of the management agreement, the Fund pays a management fee at the annual rate of 0.70%, calculated daily and payable monthly, based on the Fund’s average daily net assets.
Natixis Advisors has entered into a subadvisory agreement with Vaughan Nelson Investment Management, L.P. (“Vaughan Nelson”). Under the terms of the subadvisory agreement, the Fund pays a subadvisory fee at the annual rate of 0.47%, calculated daily and payable monthly, based on the Fund’s average daily net assets. Payments to Natixis Advisors are reduced by the amount of payments to Vaughan Nelson.
Loomis Sayles and Natixis Advisors have given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until March 31, 2024, except for Senior Floating Rate and Fixed Income Fund which is in effect until March 31, 2025, may be terminated before then only with the consent of the Funds’ Board of Trustees, and are reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings. Waivers/reimbursements that exceed management fees payable are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.
For the year ended November 30, 2023, 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 C |
Class N |
Class Y |
| Global Growth Fund |
1.20 % |
1.95 % |
0.90 % |
0.95 % |
| Senior Floating Rate and Fixed Income Fund |
1.00 % |
1.75 % |
0.70 % |
0.75 % |
| Select Fund |
1.10 % |
1.85 % |
0.80 % |
0.85 % |
Prior to July 1, 2023, the expense limits as a percentage of average daily net assets under the expense limitation agreements for Senior Floating Rate and Fixed Income Fund were as follows:
| |
Expense Limit as a
Percentage of Average Daily Net Assets | |||
| Fund |
Class A |
Class C |
Class N |
Class Y |
| Senior Floating Rate and Fixed Income Fund |
1.05 % |
1.80 % |
0.75 % |
0.80 % |
Loomis Sayles and Natixis Advisors shall be permitted to recover expenses borne under the expense limitation agreements (whether through waiver of management fees or otherwise) on a class by class basis in later periods to the extent the annual operating expenses of a class fall below both (1) a class’ expense limitation ratio in place at the time such amounts were waived/reimbursed and (2) a class’ current applicable expense limitation ratio, provided, however, that a class is not obligated to pay such waived/reimbursed fees or expenses more than one year after the end of the fiscal year in which the fees or expenses were waived/reimbursed.
51 |
Notes to
Financial Statements (continued)
November 30, 2023
For the year ended November 30, 2023, the management fees and waivers of management fees for each Fund were as follows:
| |
Gross
Management
Fees |
Contractual
Waivers of
Management
Fees1 |
Net
Management
Fees |
Percentage of
Average
Daily Net Assets | |
| Fund |
Gross |
Net | |||
| Global Growth Fund |
$727,499
|
$166,160
|
$561,339
|
0.75 % |
0.58 % |
| Senior Floating Rate and Fixed Income Fund |
5,703,785 |
1,296,487 |
4,407,298 |
0.60 % |
0.46 % |
| Select Fund |
3,745,497 |
262,452 |
3,483,045 |
0.70 % |
0.65 % |
| 1 |
Contractual management fee waivers are subject to possible recovery until November 30, 2024. |
No expenses were recovered for any of the Funds during the year ended November 30,
2023 under the terms of the expense limitation agreements.
b. Service and Distribution Fees. Natixis Distribution, LLC (“Natixis Distribution”), which is a
wholly-owned subsidiary of Natixis Investment Managers, LLC, has entered into a distribution agreement with the Trust. Pursuant to this agreement, Natixis Distribution
serves as principal underwriter of the Funds of the Trust.
Pursuant to Rule 12b-1 under the 1940 Act, the Trust has adopted a Service Plan relating to the Fund’s Class A shares (the “Class A Plans”) and a Distribution and Service Plan relating to the Fund’s Class C shares (the “Class C Plans”).
Under the Class A Plans, each Fund pays Natixis Distribution 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
Distribution in providing personal services to investors in Class A shares and/or the maintenance of shareholder accounts.
Under the Class C Plans, each Fund pays Natixis Distribution 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 C shares, as compensation for services provided by Natixis
Distribution in providing personal services to investors in Class C shares and/or the maintenance of shareholder accounts.
Also under the Class C Plans, each Fund pays Natixis Distribution a monthly
distribution fee at the annual rate of 0.75% of the average daily net assets attributable to the Fund’s Class C shares, as compensation for services provided by
Natixis Distribution in connection with the marketing or sale of Class C shares.
For the year ended November 30, 2023, the service and distribution fees for each Fund were as follows:
| |
Service Fees |
|
Distribution Fees | |
| Fund |
Class A |
Class C |
|
Class C |
| Global Growth Fund |
$8,855
|
$2,049
|
|
$6,147
|
| Senior Floating Rate and Fixed Income Fund |
424,193 |
126,539 |
|
379,618 |
| Select Fund |
68,919 |
22,290 |
|
66,870 |
c. Administrative Fees. Natixis Advisors provides certain administrative services for the Funds and contracts with State Street Bank
and Trust Company (“State Street Bank”) to serve as sub-administrator. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts, Natixis ETF Trusts and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0540% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trusts, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0275% of the next $30 billion and 0.0225% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trusts of $10 million, which is reevaluated on an annual basis.
For the year ended November 30, 2023, the administrative fees for each Fund were as follows:
| Fund |
Administrative Fees |
| Global Growth Fund |
$44,959
|
| Senior Floating Rate and Fixed Income Fund |
440,626 |
| Select Fund |
248,000 |
d. Sub-Transfer Agent Fees. Natixis Distribution has entered into agreements, which include servicing agreements, with financial
intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the
| 52
Notes to
Financial Statements (continued)
November 30, 2023
intermediaries that hold positions in the Funds and has agreed to compensate the intermediaries for providing those services.
Intermediaries transact with the Funds primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Funds. These services would have been provided by the Funds’ transfer agent and other service providers if the shareholders’ accounts were maintained directly at the Funds’ transfer agent. Accordingly, the Funds have agreed to reimburse Natixis Distribution for all or a portion of the servicing fees paid to these intermediaries. The reimbursement amounts (sub-transfer agent fees) paid to Natixis Distribution are subject to a current per-account equivalent fee limit approved by the Funds’ Board of Trustees, which is based on fees for similar services paid to the Funds’ transfer agent and other service providers. Class N shares do not bear such expenses.
For the year ended November 30, 2023, the sub-transfer agent fees (which are reflected
in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:
| Fund |
Sub-Transfer Agent Fees |
| Global Growth Fund |
$65,507
|
| Senior Floating Rate and Fixed Income Fund |
725,894 |
| Select Fund |
408,415 |
As of November 30, 2023, the Funds owe Natixis Distribution the following
reimbursements for sub-transfer agent fees (which are reflected in the Statements of Assets and Liabilities as payable to distributor):
| Fund |
Reimbursements of
Sub-Transfer Agent Fees |
| Global Growth Fund |
$754
|
| Senior Floating Rate and Fixed Income Fund |
27,659 |
| Select Fund |
4,781 |
Sub-transfer agent fees attributable to Class A, Class C and Class Y 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 those classes.
e. Commissions. Commissions (including CDSCs) on Fund shares retained by Natixis Distribution during
the year ended November 30, 2023 were as follows:
| Fund |
Commissions |
| Global Growth Fund |
$999
|
| Senior Floating Rate and Fixed Income Fund |
27,018 |
| Select Fund |
22,423 |
f. Trustees Fees and Expenses. The Trust does not pay any compensation directly to its officers or Trustees who are directors, officers or
employees of Natixis Advisors, Natixis Distribution, Natixis Investment Managers, LLC or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee
at the annual rate of $369,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that he attends. Each
Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $210,000. Each Independent Trustee also receives a meeting
attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, the chairperson of the Contract Review Committee, the chairperson of the Audit Committee and the chairperson of the Governance Committee each receive an additional retainer fee at the annual rate of $20,000. Each Contract Review Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Governance Committee member is compensated $2,500 for each Committee meeting that he or she attends either in person or telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trusts 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.
Effective January 1, 2024, the Chairperson of the Board of Trustees will receive a retainer fee at the annual rate of $385,000 and each Independent Trustee (other than the Chairperson) will receive, in the aggregate, a retainer fee at the annual rate of $225,000. Each Independent Trustee will receive a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends
53 |
Notes to
Financial Statements (continued)
November 30, 2023
in person. The chairperson of the Contract Review Committee and the chairperson of the Audit Committee each will receive an additional retainer fee at the annual rate of $25,000. All other Trustees fees will remain unchanged.
A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. The value of a participating Trustee’s
deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain funds of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trusts as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trusts and are
normally reflected as Trustees’ fees and expenses in the Statements of Operations. Deferred amounts remain in the funds until distributed in accordance with the
provisions of the Plan. The portions of the accrued obligations allocated to the Funds under the Plan are reflected as Deferred Trustees’ fees in the Statements of
Assets and Liabilities.
Certain officers and employees of Natixis
Advisors and Loomis Sayles are also officers and/or Trustees of the Trust.
g. Affiliated Ownership. As of November 30, 2023, Natixis and affiliates (“Natixis”) and Loomis
Sayles Employees’ Profit Sharing Retirement Plan (“Retirement Plan”) held shares of the Funds representing the following percentages of the Funds’
net assets:
| |
Natixis |
Retirement Plan |
| Global Growth Fund |
12.63 % |
8.27 % |
| Senior Floating Rate and Fixed Income Fund |
— % |
0.89 % |
Investment activities of affiliated shareholders could have material impacts on the Funds.
h. Reimbursement of Transfer Agent
Fees and Expenses. Natixis Advisors has given a binding contractual
undertaking to the Funds to reimburse any and all transfer agency expenses for the Fund’s Class N shares. This undertaking is in effect through March 31, 2024 and
is not subject to recovery under the expense limitation agreement described above.
For the year ended November 30, 2023, Natixis Advisors reimbursed the Funds for transfer agency expenses as follows:
| |
Reimbursement of Transfer
Agency Expenses |
| Fund |
Class N |
| Global Growth Fund |
$1,131
|
| Senior Floating Rate and Fixed Income Fund |
1,091 |
| Select Fund |
1,078 |
6.Class-Specific Transfer Agent Fees and
Expenses. Transfer agent fees and expenses attributable to Class A, Class
C and Class Y 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 those classes.
Transfer agent fees and expenses attributable to Class N are allocated to Class N.
For the year ended November 30, 2023 the Funds incurred the following class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable):
| |
Transfer Agent Fees and Expenses |
|||
| Fund |
Class A |
Class C |
Class N |
Class Y |
| Global Growth Fund |
$2,974
|
$694
|
$1,131
|
$68,616
|
| Senior Floating Rate and Fixed Income Fund |
142,213 |
42,307 |
1,091 |
611,741 |
| Select Fund |
23,053 |
7,551 |
1,078 |
420,269 |
7.Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF
Trusts, entered into a syndicated, revolving, committed, unsecured line of credit with State Street Bank as administrative agent. The aggregate revolving commitment amount is $575,000,000. Any one Fund may borrow up to $402,500,000 under the line of credit agreement (as long as all borrowings by all Funds in the aggregate do not exceed the $575,000,000 limit at any time), subject to each Fund’s investment restrictions and its contractual obligations under the line of credit. Interest is charged to the Funds based upon the terms set forth in the agreement. In addition, a commitment fee of 0.15% 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. The Funds
| 54
Notes to
Financial Statements (continued)
November 30, 2023
paid certain legal fees in connection with the line of credit agreement, which are being amortized over a period of 364 days and
are reflected in legal fees on the Statements of Operations. The unamortized balance is reflected as prepaid expenses on the Statements of Assets and Liabilities.
Prior to April 6, 2023, Global Growth Fund and Select Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trusts, entered into a $500,000,000 committed unsecured line of credit provided by State Street Bank. Any one Fund was able to borrow up to $350,000,000 under the line of credit agreement (as long as all borrowings by all Funds in the aggregate did not exceed the $500,000,000 limit at any time), subject to each Fund’s investment restrictions and its contractual obligations under the line of credit. Interest was charged to the Funds based upon the terms set forth in the agreement. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, was accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.
Prior to April 6, 2023, Senior Floating Rate and Fixed Income Fund had entered into a syndicated, committed, secured line of credit with Sumitomo Mitsui Banking Corporation (the “Administrative Agent”), the Bank of Nova Scotia, Houston Branch, BNP Paribas and Canadian Imperial Bank of Commerce, New York Branch (each a “Lender” and together with the Administrative Agent “Lenders”) under which it may have borrowed for investment or liquidity purposes. The commitment of the Lenders to make loans to the Fund was not to exceed $400,000,000 at any one time. Under the terms of the agreement, the Lenders were entitled to a security interest in the assets of the Fund as collateral. Interest was charged to the Fund based upon the terms set forth in the agreement. In addition, a commitment fee of 0.500% per annum payable to the Administrative Agent for the account of each Lender was accrued by the Fund based on the unused portion of the line of credit. The Fund paid the Administrative Agent an upfront fee of $460,000 and an administrative agent fee of $25,000, for a total of $485,000, which were fully amortized upon termination of the agreement and are reflected in commitment fees on the Statements of Operations.
For the year ended November 30, 2023, Select Fund had an average daily balance on the line of credit (for those days on which there were borrowings) of $6,350,000 at a weighted average interest rate of 5.43%. Interest expense incurred on the line of credit was $1,916.
8.Risk. Global Growth Fund’s investments in foreign securities may be subject to greater political, economic, environmental, credit/ counterparty and information risks. The Fund’s investments in foreign securities also are subject to foreign currency fluctuations and other foreign currency-related risks. Foreign securities may be subject to higher volatility than U.S. securities, varying degrees of regulation and limited liquidity.
Global Growth Fund may invest to a significant extent in variable interest entity (“VIE”) structures. VIE structures can vary, but generally consist of a U.S.-listed company with contractual arrangements, through one or more wholly-owned special purpose vehicles, with a Chinese company that ultimately provides the U.S.-listed company with contractual rights to obtain economic benefits from the Chinese company. The VIE structure enables foreign investors, such as the Fund, to obtain investment exposure similar to that of an equity owner in a Chinese company in situations in which the Chinese government has restricted or prohibited the ownership of such company by foreign investors. The Fund’s exposure to VIE structures may pose additional risks because the VIE structure is not formally recognized under Chinese law. The Chinese government may cease to tolerate VIE structures at any time or impose new restrictions. In addition, Chinese companies using the VIE structure, and listed on stock exchanges in the U.S., could also face delisting or other ramifications for failure to meet the expectations and/or requirements of the U.S. Securities and Exchange Commission, the Public Company Accounting Oversight Board, or other U.S. regulators. Any of these risks could reduce the liquidity and value of these investments or render them valueless.
Select Fund is non-diversified, which means that it is not limited under the 1940 Act to a percentage of assets that it may invest in any one issuer. Because the Fund may invest in the securities of a limited number of issuers, an investment in the Fund may involve a higher degree of risk than would be present in a diversified portfolio.
The senior loans in which Senior Floating Rate and Fixed Income Fund expects to invest will generally not be rated investment grade by the rating agencies. Economic downturns generally increase non-payment rates and a senior loan could lose a substantial part of its value prior to default. Senior loans are subject to credit risk, and secured loans may not be adequately collateralized. The interest rates of senior loans reset frequently, and thus senior loans are subject to interest rate risk. There may also be less public information available about senior loans as compared to other debt securities.
Senior loans are generally less liquid than many other debt securities. Transactions in senior loans may settle on a delayed basis, such that the Fund may not receive the proceeds from the sale of a loan for a substantial period of time (greater than seven days) after the sale. As a result, the proceeds related to the sale of senior loans may not be available to make additional investments or to meet the Fund’s redemption obligations until substantial period (greater than seven days) after the sale of the loans.
55 |
Notes to
Financial Statements (continued)
November 30, 2023
Geopolitical events (such as trading halts, sanctions or wars) could increase volatility and uncertainty in the financial markets
and adversely affect regional and global economies. These, and other related events, could significantly impact a Fund's performance and the value of an investment in the Fund, even if the Fund does not have direct exposure to issuers in the country or countries involved.
9.Concentration of Ownership. From time to time, a Fund may have a concentration of one or more accounts constituting a significant
percentage of shares outstanding. Investment activities by holders of such accounts could have material impacts on the Funds. As of November 30, 2023, based on
management’s evaluation of the shareholder account base, the Funds had accounts representing controlling ownership of more than 5% of the Funds’ total
outstanding shares. The number of such accounts, based on accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets
represented by such holdings were as follows:
| Fund |
Number of 5%
Non-Affiliated
Account Holders |
Percentage of
Non-Affiliated
Ownership |
Percentage of
Affiliated
Ownership
(Note 5g) |
Total Percentage of
Ownership |
| Global Growth Fund |
3 |
44.64 % |
20.90 % |
65.54 % |
| Select Fund |
1 |
5.51 % |
— |
5.51 % |
Omnibus shareholder accounts for which Natixis Advisors understands that the intermediary has discretion over the underlying shareholder accounts or investment models where a shareholder account may be invested for a non-discretionary customer are included in the table above. For other omnibus accounts, the Funds do not have information on the individual shareholder accounts underlying the omnibus accounts; therefore, there could be other 5% shareholders in addition to those disclosed in the table above.
10.Interest Expense. The Funds incur interest expense on cash (including foreign currency) overdrafts at the custodian bank and
borrowings on the line of credit. Interest expense incurred for the year ended November 30, 2023 is reflected on the Statements of Operations.
| 56
Notes to
Financial Statements (continued)
November 30, 2023
11.Capital
Shares. Each Fund may issue an unlimited number of shares of beneficial interest, without
par value. Transactions in capital shares were as follows:
| | ||||
| |
Year
Ended November 30, 2023 |
Year
Ended November 30, 2022 | ||
| Global Growth Fund |
Shares |
Amount |
Shares |
Amount |
| Class A |
|
|
|
|
| Issued from the sale of shares |
70,211 |
$1,000,718
|
34,564 |
$530,296
|
| Issued in connection with the reinvestment of distributions |
15,179 |
188,214 |
23,201 |
416,129 |
| Redeemed |
(66,353 ) |
(948,296 ) |
(150,976 ) |
(2,209,227 ) |
| Net change |
19,037 |
$240,636 |
(93,211 ) |
$(1,262,802 ) |
| Class C |
|
|
|
|
| Issued from the sale of shares |
11,298 |
$148,565
|
6,077 |
$74,299
|
| Issued in connection with the reinvestment of distributions |
5,305 |
62,385 |
5,510 |
94,792 |
| Redeemed |
(23,643 ) |
(316,750 ) |
(19,719 ) |
(261,615 ) |
| Net change |
(7,040 ) |
$(105,800 ) |
(8,132 ) |
$(92,524 ) |
| Class N |
|
|
|
|
| Issued from the sale of shares |
154 |
$2,149
|
102 |
$1,682
|
| Issued in connection with the reinvestment of distributions |
53,304 |
670,570 |
47,237 |
858,053 |
| Redeemed |
(148 ) |
(2,101 ) |
(194 ) |
(2,678 ) |
| Net change |
53,310 |
$670,618 |
47,145 |
$857,057 |
| Class Y |
|
|
|
|
| Issued from the sale of shares |
1,642,755 |
$23,371,379
|
2,534,046 |
$39,498,284
|
| Issued in connection with the reinvestment of distributions |
415,989 |
5,224,816 |
394,539 |
7,157,460 |
| Redeemed |
(2,958,983 ) |
(42,821,618 ) |
(2,732,917 ) |
(39,216,322 ) |
| Net change |
(900,239 ) |
$(14,225,423 ) |
195,668 |
$7,439,422 |
| Increase (decrease) from capital share transactions |
(834,932 ) |
$(13,419,969 ) |
141,470 |
$6,941,153 |
57 |
Notes to
Financial Statements (continued)
November 30, 2023
11.Capital
Shares (continued).
| | ||||
| |
Year
Ended November 30, 2023 |
Year
Ended November 30, 2022 | ||
| Senior Floating Rate and Fixed Income Fund |
Shares |
Amount |
Shares |
Amount |
| Class A |
|
|
|
|
| Issued from the sale of shares |
4,322,886 |
$35,330,371
|
6,030,711 |
$52,286,645
|
| Issued in connection with the reinvestment of distributions |
1,424,184 |
11,653,923 |
1,000,307 |
8,471,705 |
| Redeemed |
(9,857,815 ) |
(80,493,410 ) |
(8,428,506 ) |
(71,768,362 ) |
| Net change |
(4,110,745 ) |
$(33,509,116 ) |
(1,397,488 ) |
$(11,010,012 ) |
| Class C |
|
|
|
|
| Issued from the sale of shares |
326,109 |
$2,667,300
|
1,181,683 |
$10,329,386
|
| Issued in connection with the reinvestment of distributions |
439,013 |
3,579,569 |
345,552 |
2,917,468 |
| Redeemed |
(3,441,176 ) |
(28,048,482 ) |
(3,838,119 ) |
(32,784,817 ) |
| Net change |
(2,676,054 ) |
$(21,801,613 ) |
(2,310,884 ) |
$(19,537,963 ) |
| Class N |
|
|
|
|
| Issued from the sale of shares |
10,401 |
$86,000
|
— |
$—
|
| Issued in connection with the reinvestment of distributions |
27,266 |
223,084 |
15,795 |
133,691 |
| Redeemed |
(4,378 ) |
(35,455 ) |
(17,749 ) |
(150,540 ) |
| Net change |
33,289 |
$273,629 |
(1,954 ) |
$(16,849 ) |
| Class Y |
|
|
|
|
| Issued from the sale of shares |
50,458,625 |
$414,340,810
|
61,545,349 |
$540,426,224
|
| Issued in connection with the reinvestment of distributions |
6,344,356 |
51,991,226 |
5,450,189 |
46,375,759 |
| Redeemed |
(62,588,164 ) |
(512,328,923 ) |
(109,033,046 ) |
(928,364,908 ) |
| Net change |
(5,785,183 ) |
$(45,996,887 ) |
(42,037,508 ) |
$(341,562,925 ) |
| Decrease from capital share transactions |
(12,538,693 ) |
$(101,033,987 ) |
(45,747,834 ) |
$(372,127,749 ) |
| 58
Notes to
Financial Statements (continued)
November 30, 2023
11.Capital
Shares (continued).
| | ||||
| |
Year
Ended November 30, 2023 |
Year
Ended November 30, 2022 | ||
| Select Fund |
Shares |
Amount |
Shares |
Amount |
| Class A |
|
|
|
|
| Issued from the sale of shares |
867,285 |
$15,479,617
|
1,106,092 |
$21,096,534
|
| Issued in connection with the reinvestment of distributions |
12,763 |
207,534 |
311,491 |
6,067,835 |
| Redeemed |
(663,358 ) |
(11,827,614 ) |
(816,595 ) |
(14,045,519 ) |
| Net change |
216,690 |
$3,859,537 |
600,988 |
$13,118,850 |
| Class C |
|
|
|
|
| Issued from the sale of shares |
520,255 |
$8,388,167
|
213,807 |
$3,394,770
|
| Issued in connection with the reinvestment of distributions |
4,085 |
59,562 |
90,041 |
1,586,526 |
| Redeemed |
(237,088 ) |
(3,744,442 ) |
(148,023 ) |
(2,279,674 ) |
| Net change |
287,252 |
$4,703,287 |
155,825 |
$2,701,622 |
| Class N |
|
|
|
|
| Issued from the sale of shares |
5,036 |
$91,490
|
18,971 |
$297,023
|
| Issued in connection with the reinvestment of distributions |
201 |
3,296 |
32 |
628 |
| Redeemed |
(6,142 ) |
(111,286 ) |
(2,532 ) |
(39,785 ) |
| Net change |
(905 ) |
$(16,500 ) |
16,471 |
$257,866 |
| Class Y |
|
|
|
|
| Issued from the sale of shares |
21,592,358 |
$390,138,959
|
17,605,549 |
$314,106,172
|
| Issued in connection with the reinvestment of distributions |
196,447 |
3,223,701 |
3,204,671 |
62,971,719 |
| Redeemed |
(13,607,552 ) |
(241,923,947 ) |
(6,818,076 ) |
(120,752,981 ) |
| Net change |
8,181,253 |
$151,438,713 |
13,992,144 |
$256,324,910 |
| Increase from capital share transactions |
8,684,290 |
$159,985,037 |
14,765,428 |
$272,403,248 |
59 |
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Natixis Funds Trust II and Shareholders of Loomis Sayles Global Growth Fund, Loomis Sayles Senior Floating Rate and Fixed Income Fund, and Vaughan Nelson Select Fund:
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Loomis Sayles Global Growth Fund, Loomis Sayles Senior Floating Rate and Fixed Income Fund, and Vaughan Nelson Select Fund (three of the funds constituting Natixis Funds Trust II, hereafter collectively referred to as the "Funds") as of November 30, 2023, the related statements of operations for the year ended November 30, 2023, the statements of changes in net assets for each of the two years in the period ended November 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended November 30, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of November 30, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended November 30, 2023 and each of the financial highlights for each of the five years in the period ended November 30, 2023 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards
of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2023 by correspondence with the custodian, transfer agent, agent banks and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Boston, Massachusetts
January 23, 2024
Boston, Massachusetts
January 23, 2024
We have served as the auditor of one or more investment companies in the Natixis Investment Company Complex since at least 1995. We have not determined the specific year we began serving as auditor.
| 60
2023 U.S. Tax Distribution Information to
Shareholders (Unaudited)
Corporate Dividends Received Deduction. For the fiscal year ended November 30, 2023, a percentage of dividends distributed by
the
Funds listed below qualifies for the dividends received deduction for corporate shareholders. These percentages are as follows:
Funds listed below qualifies for the dividends received deduction for corporate shareholders. These percentages are as follows:
| Fund |
Qualifying Percentage |
| Global Growth Fund |
100.00 % |
| Select Fund |
63.95 % |
Capital Gains Distributions. Pursuant to Internal Revenue Section 852(b), the following Funds paid distributions, which have been
designated as capital gains distributions for the fiscal year ended November 30, 2023, unless subsequently determined to be different.
| Fund |
Amount |
| Global Growth Fund |
$6,258,533
|
| Select Fund |
3,582,713 |
Qualified Dividend Income. For the fiscal year ended November 30, 2023, the Funds below will designate up to the
maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 20% depending on an individual’s tax bracket. If the Funds pay a distribution during calendar year 2023, complete information will be reported in conjunction with Form 1099-DIV.
Fund
Global Growth Fund
Select Fund
Global Growth Fund
Select Fund
61 |
Trustee and Officer
Information
The tables below provide certain information regarding the Trustees and officers of Natixis Funds Trust II (the "Trust"). Unless otherwise indicated, the address of all persons below is 888 Boylston Street, Suite 800, Boston, MA 02199-8197. The Funds' Statements of Additional Information include additional information about the Trustees of the Trust and are available by calling Natixis Funds at 800-225-5478.
| Name and Year of Birth |
Position(s) Held with the Trust, Length
of Time Served and
Term of Office1 |
Principal Occupation(s) During Past 5 Years |
Number of Portfolios in Fund Complex Overseen2and Other Directorships Held During Past 5 Years |
Experience, Qualifications, Attributes, Skills for Board Membership |
| Independent Trustees |
|
|
|
|
| Edmond J.
English (1953) |
Trustee since 2013
Contract Review
Committee Member |
Executive Chairman of Bob’s Discount Furniture (retail) |
52 Director, Burlington Stores, Inc. (retail); Director, Rue Gilt Groupe, Inc. (e-commerce retail) |
Significant experience on the Board and on the boards of other business organizations (including retail companies and a bank); executive experience (including at a retail company) |
| Richard A.
Goglia (1951) |
Trustee since 2015
Audit Committee
Member |
Retired |
52 Formerly, Director of Triumph Group (aerospace industry) |
Significant experience on the Board and executive experience (including his role as Vice President and treasurer of a defense company and experience at a financial services company) |
| Martin T. Meehan
(1956) |
Trustee since 2012
Chairperson of the
Governance Committee
and Contract Review
Committee Member |
President, University of Massachusetts |
52 None |
Significant experience on the Board and on the boards of other business organizations; experience as President of the University of Massachusetts; government experience (including as a member of the U.S. House of Representatives); academic experience |
| Maureen B.
Mitchell (1951) |
Trustee since 2017
Chairperson of the
Contract Review
Committee |
Retired |
52 Director, Sterling Bancorp (bank) |
Significant experience on the Board; financial services industry and executive experience (including role as President of global sales and marketing at a financial services company) |
| 62
Trustee and Officer
Information
| Name and Year of Birth |
Position(s) Held with the Trust, Length of Time Served and Term of Office1 |
Principal Occupation(s) During Past 5 Years |
Number of Portfolios in Fund Complex Overseen2and Other Directorships Held During Past 5 Years |
Experience, Qualifications, Attributes, Skills for Board Membership |
| Independent Trustees − continued | ||||
| James P.
Palermo (1955) |
Trustee since 2016
Audit Committee
Member and Governance Committee Member |
Founding Partner, Breton Capital Management, LLC (private equity); Partner, STEP Partners, LLC (private equity) |
52 Director, FutureFuel.io (chemicals and biofuels) |
Significant experience on the Board; financial services industry and executive experience (including roles as Chief Executive Officer of client management and asset servicing for a banking and financial services company) |
| Erik R.
Sirri (1958) |
Chairperson of the
Board of Trustees since
January 2021
Trustee since 2009
Ex Officio Member of the Audit Committee, Contract Review Committee and Governance Committee |
Retired; formerly, Professor of Finance at Babson College |
52 None |
Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist |
| Peter J.
Smail (1952) |
Trustee since 2009
Contract Review
Committee Member |
Retired |
52 None |
Significant experience on the Board; mutual fund industry and executive experience (including roles as President and Chief Executive Officer for an investment adviser) |
63 |
Trustee and Officer
Information
| Name and Year of Birth |
Position(s) Held with the Trust, Length of Time Served and Term of Office1 |
Principal Occupation(s) During Past 5 Years |
Number of Portfolios in Fund Complex Overseen2and Other Directorships Held During Past 5 Years |
Experience, Qualifications, Attributes, Skills for Board Membership |
| Independent Trustees − continued | ||||
| Kirk A.
Sykes (1958) |
Trustee since 2019
Audit Committee
Member and
Governance
Committee Member |
Managing Director of Accordia Partners, LLC (real estate development); President of Primary Corporation (real estate development); Managing Principal of Merrick Capital Partners (infrastructure finance) |
52 Advisor/Risk Management Committee, Eastern Bank (bank); Director, Apartment Investment and Management Company (real estate investment trust); formerly, Director, Ares Commercial Real Estate Corporation (real estate investment trust) |
Experience on the Board and significant experience on the boards of other business organizations (including real estate companies and banks) |
| Cynthia L.
Walker (1956) |
Trustee since 2005
Chairperson of the
Audit Committee
and Governance
Committee Member |
Retired; formerly, Deputy Dean for Finance and Administration, Yale University School of Medicine |
52 None |
Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration) |
| Interested Trustees |
|
|
|
|
| Kevin P.
Charleston3 (1965)
One Financial Center Boston, MA 02111 |
Trustee since 2015 |
President, Chief Executive Officer and Chairman of the Board of Directors, Loomis, Sayles & Company, L.P. |
52 None |
Significant experience on the Board; continuing service as President, Chief Executive Officer and Chairman of the Board of Directors of Loomis, Sayles & Company, L.P. |
| David L.
Giunta4 (1965) |
Trustee since 2011
President and Chief
Executive Officer since
2008 |
President and Chief Executive Officer, Natixis Advisors, LLC and Natixis Distribution, LLC |
52 None |
Significant experience on the Board; experience as President and Chief Executive Officer of Natixis Advisors, LLC and Natixis Distribution, LLC |
| 1 |
Each Trustee serves until retirement, resignation or removal from the Board. The current retirement age is 75. The position of Chairperson of the Board is
appointed for a three-year term. |
| 2 |
The Trustees of the Trust serve as Trustees of a fund complex that includes all series of the Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV,
Gateway Trust, Loomis Sayles Funds I, Loomis Sayles Funds II, Natixis ETF Trust
and Natixis ETF Trust II (collectively, the “Fund Complex”). |
| 3 |
Mr. Charleston is deemed an “interested person” of the Trust because he holds the following positions with an affiliated person of the Trust: President, Chief
Executive Officer and Chairman of the Board of Directors of Loomis, Sayles & Company,
L.P. |
| 4 |
Mr. Giunta is deemed an “interested person” of the Trust because he holds the following positions with an affiliated person of the Trust: President and Chief
Executive Officer, Natixis Advisors, LLC and Natixis Distribution, LLC. |
| 64
Trustee and Officer
Information
| Name and Year of Birth |
Position(s) Held with the Trust |
Term of Office1 and Length
of Time Served |
Principal Occupation(s) During Past 5 Years2 |
| Officers of the Trusts |
|
|
|
| Matthew J. Block (1981) |
Treasurer, Principal Financial and Accounting Officer |
Since 2022 |
Senior Vice President, Natixis Advisors, LLC and Natixis Distribution, LLC; formerly, Vice President, Natixis Advisors, LLC and Natixis Distribution, LLC; Assistant Treasurer of the Fund Complex |
| Susan McWhan Tobin (1963) |
Secretary and Chief Legal Officer |
Since 2022 |
Executive Vice President, General Counsel and Secretary, Natixis Advisors, LLC and Natixis Distribution, LLC; formerly, Executive Vice President and Chief Compliance Officer of Natixis Investment Managers (March 2019 – May 2022) and Senior Vice President and Head of Compliance, U.S. for Natixis Investment Managers (July 2011 – March 2019) |
| Natalie R. Wagner (1979) |
Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer |
Since 2021 |
Senior Vice President, Natixis Advisors, LLC and Natixis Distribution, LLC; formerly, Vice President, Head of Corporate Compliance, Global Atlantic Financial Group |
| 1 |
Each officer of the Trust serves for an indefinite term in accordance with the Trust's current by-laws until the date his or her successor is elected and qualified,
or until he or she sooner dies, retires, is removed or becomes
disqualified. |
| 2 |
Each person listed above, except as noted, holds the same position(s) with the Fund Complex. Previous positions during the past five years with Natixis
Distribution, LLC, Natixis Advisors, LLC or Loomis, Sayles & Company, L.P. are omitted,
if not materially different from an officer’s current position with such
entity. |
65 |
˃To learn more about Natixis Funds products and
services:
Visit: im.natixis.com Call: 800-225-5478
Visit: im.natixis.com Call: 800-225-5478
Before investing, consider the fund’s investment objectives, risks, charges, and
expenses. Visit im.natixis.com or call 800-225-5478 for a prospectus or summary
prospectus containing this and other information.
Contact us by mail:
If you wish to communicate with the funds’ Board of Trustees, you may do so by writing to:
Secretary
of the Funds
Natixis Advisors, LLC
888 Boylston Street, Suite 800
Boston, MA 02199-8197
Natixis Advisors, LLC
888 Boylston Street, Suite 800
Boston, MA 02199-8197
The correspondence must (a) be signed by the shareholder; (b) include the shareholder’s name and address; and (c) identify the fund(s), account number, share class, and number of shares held in that fund, as of a recent
date.
Or by
e-mail:
secretaryofthefunds@natixis.com (Communications regarding recommendations for Trustee candidates may not be submitted by e-mail.)
Please note: Unlike written correspondence, e-mail is not secure. Please do NOT include your account number, Social Security number, PIN, or any other non-public personal information in an
e-mail communication because this information may be viewed by others.
Exp. 1/31/25
This page
not part of shareholder report
| (b) | Not Applicable |
Item 2. Code of Ethics.
The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer and persons performing similar functions. There have been no amendments or waivers of the Registrant’s code of ethics during the period.
Item 3. Audit Committee Financial Expert.
The Board of Trustees of the Registrant has established an audit committee. Mr. Richard A. Goglia, Mr. James P. Palermo, Mr. Kirk A. Sykes and Ms. Cynthia L. Walker are members of the audit committee and have been designated as “audit committee financial experts” by the Board of Trustees. Each of these individuals is also an Independent Trustee of the Registrant.
Item 4. Principal Accountant Fees and Services.
Fees billed by the Principal Accountant for services rendered to the Registrant.
The table below sets forth fees billed by the principal accountant, PricewaterhouseCoopers LLP, for the past two fiscal years for professional services rendered in connection with a) the audit of the Registrant’s annual financial statements and services provided in connection with regulatory filings; b) audit-related services (including services that are reasonably related to the performance of the audit of the Registrant’s financial statements but not reported under “Audit Fees”); c) tax compliance, tax advice and tax planning; and d) all other fees billed for professional services rendered by the principal accountant to the Registrant, other than the services reported as a part of (a) through (c) of this Item.
| Audit fees | Audit-related fees1 | Tax fees2 | All other fees | |||||||||||||||||||||||||||||
| 12/1/21-11/30/22 | 12/1/22-11/30/23 | 12/1/21-11/30/22 | 12/1/22-11/30/23 | 12/1/21-11/30/22 | 12/1/22-11/30/23 | 12/1/21-11/30/22 | 12/1/22-11/30/23 | |||||||||||||||||||||||||
| Natixis Funds Trust II- Loomis Sayles Global Growth Fund, Loomis Sayles Senior Floating Rate and Fixed Income Fund and Vaughan Nelson Select Fund |
$ | 155,178 | $ | 159,833 | $ | 329 | $ | 358 | $ | 25,407 | $ | 26,169 | $ |
— |
|
$ |
— |
| ||||||||||||||
| 1. | Audit-related fees consist of: |
2022 & 2023 – performance of agreed-upon procedures related to the Registrant’s deferred compensation plan.
| 2. | Tax fees consist of: |
2022 & 2023 – review of Registrant’s tax returns
Aggregate fees billed to the Registrant for non-audit services during 2022 and 2023 were $25,736 and $26,527, respectively.
Fees billed by the Principal Accountant for services rendered to the Adviser and Control Affiliates.
The following table sets forth the fees billed by the Registrant’s principal accountant for non-audit services rendered to Loomis, Sayles & Company, L.P. (“Loomis”), Natixis Advisors, LLC (“Natixis”) and entities controlling, controlled by or under common control with Loomis and Natixis (“Control Affiliates”) that provide ongoing services to the Registrant, for engagements that related directly to the operations and financial reporting of the Registrant for the last two fiscal years.
| Audit-related fees | Tax fees | All other fees | ||||||||||||||||||||||
| 12/1/21-11/30/22 | 12/1/22-11/30/23 | 12/1/21-11/30/22 | 12/1/22-11/30/23 | 12/1/21-11/30/22 | 12/1/22-11/30/23 | |||||||||||||||||||
| Control Affiliates |
$ | — | $ | — | $ | — | $ | — | $ | 50,000 | $ | — | ||||||||||||
The following table sets forth the aggregate fees billed by the Registrant’s principal accountant for non-audit services rendered to Loomis, Natixis and Control Affiliates that provide ongoing services to the Registrant, for the last two fiscal years, including the fees disclosed in the table above.
| Aggregate Non-Audit Fees | ||||||||
| 12/1/21-11/30/22 | 12/1/22-11/30/23 | |||||||
| Control Affiliates |
$ | 50,000 | $ | 110,000 | ||||
None of the services described above were approved pursuant to (c)(7)(i)(C) of Regulation S-X.
Audit Committee Pre-Approval Policies.
Annually, the Registrant’s Audit Committee reviews the audit, audit-related, tax and other non-audit services together with the projected fees, for services proposed to be rendered to the Registrant and/or other entities for which pre-approval is required during the upcoming year. Any subsequent revisions to already pre-approved services or fees (including fee increases) and requests for pre-approval of new services would be presented for consideration quarterly as needed.
If, in the opinion of management, a proposed engagement by the Registrant’s independent accountants needs to commence before the next regularly scheduled Audit Committee meeting, any member of the Audit Committee who is an Independent Trustee of the Registrant is authorized to pre-approve the engagement, but only for engagements to provide audit, audit related and tax services. This approval is subject to review by the full Audit Committee at its next quarterly meeting. All other engagements require the approval of all the members of the Audit Committee.
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 period covered by the report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
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: | David L. Giunta | |
| Title: | President and Chief Executive Officer | |
| Date: | January 23, 2024 | |
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: | David L. Giunta | |
| Title: | President and Chief Executive Officer | |
| Date: | January 23, 2024 | |
| By: | /s/ Matthew Block | |
| Name: | Matthew Block | |
| Title: | Treasurer and Principal Financial and | |
| Accounting Officer | ||
| Date: | January 23, 2024 | |