497 1 funds1comb.txt AEW REAL ESTATE FUND CGM ADVISOR TARGETED EQUITY FUND HANSBERGER INTERNATIONAL FUND HARRIS ASSOCIATES FOCUSED VALUE FUND HARRIS ASSOCIATES LARGE CAP VALUE FUND IXIS U.S. DIVERSIFIED PORTFOLIO IXIS VALUE FUND VAUGHAN NELSON SMALL CAP VALUE FUND WESTPEAK CAPITAL GROWTH FUND (THE "FUNDS") Supplement dated October 7, 2005 to the IXIS Advisor Equity Funds Classes A, B and C Prospectus dated May 1, 2005, as may be revised and supplemented from time to time (This supplement replaces the supplement for the IXIS U.S. Diversified Portfolio dated June 16, 2005) Effective September 1, 2005, State Street Bank and Trust Company became the custodian of the Funds. Effective October 1, 2005, Boston Financial Data Services, Inc. became the shareholder servicing and transfer agent of the Funds. The expenses of the Funds have been reduced as a result of these new arrangements. Accordingly, the Annual Fund Operating Expenses table and the Example table of the Prospectus are amended and restated as follows: ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets, as a percentage of average daily net assets)
- -------------------- ---------------------------------- ------------------------------------ ------------------------------------ AEW REAL ESTATE FUND(1) CGM ADVISOR TARGETED EQUITY FUND HANSBERGER INTERNATIONAL FUND -------------------- ---------------------------------- ------------------------------------ ------------------------------------ -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- Management fees 0.80% 0.80% 0.80% 0.70% 0.70% 0.70% 0.80% 0.80% 0.80% -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- Distribution and/or service (12b-1) fees 0.25% 1.00%* 1.00%* 0.25% 1.00%* 1.00%* 0.25% 1.00%* 1.00%* -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- Other expenses ++ 0.48% 0.48% 0.48% 0.27% 0.27% 0.27% 0.55% 0.55% 0.55% -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- Total annual fund operating expenses 1.53% 2.28% 2.28% 1.22% 1.97% 1.97% 1.60% 2.35% 2.35% -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- Fee Waiver and/or Expense Reimbursement 0.03% 0.03% 0.03% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- Net Expenses 1.50% 2.25% 2.25% 1.22% 1.97% 1.97% 1.60% 2.35% 2.35% -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ---------------------------------- ------------------------------------ ------------------------------------ HARRIS ASSOCIATES FOCUSED VALUE HARRIS ASSOCIATES LARGE CAP VALUE IXIS U.S. DIVERSIFIED PORTFOLIO+ FUND(2) FUND(3) -------------------- ---------------------------------- ------------------------------------ ------------------------------------ -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- Management fees 1.00% 1.00% 1.00% 0.68% 0.68% 0.68% 0.90% 0.90% 0.90% -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- Distribution and/or service (12b-1) fees 0.25% 1.00%* 1.00%* 0.25% 1.00%* 1.00%* 0.25% 1.00%* 1.00%* -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- Other expenses ++ 0.31% 0.31% 0.31% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- Total annual fund operating expenses 1.56% 2.31% 2.31% 1.30% 2.05% 2.05% 1.52% 2.27% 2.27% -------------------- ------------- ---------- --------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ---------------------------------- ------------------------------------ ------------------------------------ IXIS VALUE FUND VAUGHAN NELSON SMALL CAP VALUE FUND WESTPEAK CAPITAL GROWTH FUND -------------------- ---------------------------------- ------------------------------------ ------------------------------------ -------------------- ---------- ----------- ----------- ------------ ----------- ----------- ----------- ------------ ----------- CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C -------------------- ---------- ----------- ----------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ---------- ----------- ----------- ------------ ----------- ----------- ----------- ------------ ----------- Management fees 0.75% 0.75% 0.75% 0.90% 0.90% 0.90% 0.75% 0.75% 0.75% -------------------- ---------- ----------- ----------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ---------- ----------- ----------- ------------ ----------- ----------- ----------- ------------ ----------- Distribution and/or service (12b-1) fees 0.25% 1.00%* 1.00%* 0.25% 1.00%* 1.00%* 0.25% 1.00%* 1.00%* -------------------- ---------- ----------- ----------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ---------- ----------- ----------- ------------ ----------- ----------- ----------- ------------ ----------- Other expenses++ 0.43% 0.43% 0.43% 0.60% 0.60% 0.60% 0.62% 0.62% 0.62% -------------------- ---------- ----------- ----------- ------------ ----------- ----------- ----------- ------------ ----------- -------------------- ---------- ----------- ----------- ------------ ----------- ----------- ----------- ------------ ----------- Total annual fund operating expenses 1.43% 2.18% 2.18% 1.75% 2.50% 2.50% 1.62% 2.37% 2.37% -------------------- ---------- ----------- ----------- ------------ ----------- ----------- ----------- ------------ -----------
+ Expense information reflects a reduction in the advisory fee of the IXIS U.S. Diversified Portfolio from 1.05% of the first $750 million of the average daily net assets of the Fund and 0.95% thereafter to 0.90% of the first $1 billion of the average daily net assets of the Fund and 0.80% thereafter, effective July 1, 2005. ++ Other expenses have been restated to reflect changes to the custodian and transfer agency fees for the Funds effective September 1, 2005 and October 1, 2005, respectively. * Because of the higher 12b-1 fees, long-term shareholders may pay more than the economic equivalent of the maximum front-end sales charge permitted by the rules of the National Association of Securities Dealers, Inc. (1) AEW has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses, to 1.50%, 2.25% and 2.25% of the Fund's average daily net assets for Classes A, B and C shares, respectively. This undertaking is in effect through April 30, 2006, and is reevaluated on an annual basis. Without this undertaking, expenses would have been higher. (2) IXIS Advisors has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses, to 1.70%, 2.45% and 2.45% of the Fund's average daily net assets for Classes A, B and C shares, respectively. This undertaking is in effect through April 30, 2006, and is reevaluated on an annual basis. (3) IXIS Advisors has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses, to 1.30%, 2.05% and 2.05% of the Fund's average daily net assets for Classes A, B and C shares, respectively. This undertaking is in effect through April 30, 2006 and is reevaluated on an annual basis. EXAMPLE*
--------------- --------------------------------------------------------- --------------------------------------------------------- AEW REAL ESTATE FUND CGM ADVISOR TARGETED EQUITY FUND --------------- --------------------------------------------------------- --------------------------------------------------------- --------------- ----------- ---------------------- ---------------------- ---------- ----------------------- ---------------------- CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C --------------- ----------- ---------------------- ---------------------- ---------- ----------------------- ---------------------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- (1) (2) (1) (2) (1) (2) (1) (2) --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 1 year $719 $728 $228 $328 $228 $692 $700 $200 $300 $200 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 3 years $1,028 $1,009 $709 $709 $709 $940 $918 $618 $618 $618 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 5 years $1,359 $1,417 $1,217 $1,217 $1,217 $1,207 $1,262 $1,062 $1,062 $1,062 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 10 years** $2,291 $2,425 $2,425 $2,613 $2,613 $1,967 $2,102 $2,102 $2,296 $2,296 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- --------------- --------------------------------------------------------- --------------------------------------------------------- HANSBERGER INTERNATIONAL FUND HARRIS ASSOCIATES FOCUSED VALUE FUND --------------- --------------------------------------------------------- --------------------------------------------------------- --------------- ----------- ---------------------- ---------------------- ---------- ----------------------- ---------------------- CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C --------------- ----------- ---------------------- ---------------------- ---------- ----------------------- ---------------------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- (1) (2) (1) (2) (1) (2) (1) (2) --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 1 year $728 $738 $238 $338 $238 $725 $734 $234 $334 $234 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 3 years $1,051 $1,033 $733 $733 $733 $1,039 $1,021 $721 $721 $721 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 5 years $1,396 $1,455 $1,255 $1,255 $1,255 $1,376 $1,435 $1,235 $1,235 $1,235 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 10 years** $2,366 $2,499 $2,499 $2,686 $2,686 $2,325 $2,458 $2,458 $2,646 $2,646 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- --------------------------------------------------------- --------------------------------------------------------- HARRIS ASSOCIATES LARGE CAP VALUE FUND IXIS U.S. DIVERSIFIED PORTFOLIO --------------- --------------------------------------------------------- --------------------------------------------------------- --------------- ----------- ---------------------- ---------------------- ---------- ----------------------- ---------------------- CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C --------------- ----------- ---------------------- ---------------------- ---------- ----------------------- ---------------------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- (1) (2) (1) (2) (1) (2) (1) (2) --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 1 year $700 $708 $208 $308 $208 $721 $730 $230 $330 $230 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 3 years $963 $943 $643 $643 $643 $1,028 $1,009 $709 $709 $709 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 5 years $1,247 $1,303 $1,103 $1,103 $1,103 $1,356 $1,415 $1,215 $1,215 $1,215 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 10 years** $2,053 $2,187 $2,187 $2,379 $2,379 $2,283 $2,417 $2,417 $2,605 $2,605 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- --------------------------------------------------------- --------------------------------------------------------- IXIS VALUE FUND VAUGHAN NELSON SMALL CAP VALUE FUND --------------- --------------------------------------------------------- --------------------------------------------------------- --------------- ----------- ---------------------- ---------------------- ---------- ----------------------- ---------------------- CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C --------------- ----------- ---------------------- ---------------------- ---------- ----------------------- ---------------------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- (1) (2) (1) (2) (1) (2) (1) (2) --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 1 year $712 $721 $221 $321 $221 $743 $753 $253 $353 $253 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 3 years $1,001 $982 $682 $682 $682 $1,094 $1,079 $779 $779 $779 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 5 years $1,312 $1,370 $1,170 $1,170 $1,170 $1,469 $1,531 $1,331 $1,331 $1,331 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- 10 years** $2,190 $2,323 $2,323 $2,513 $2,513 $2,519 $2,652 $2,652 $2,836 $2,836 --------------- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------- ---------- -----------
--------------- --------------------------------------------------------- WESTPEAK CAPITAL GROWTH FUND --------------- --------------------------------------------------------- --------------- ----------- ---------------------- ---------------------- CLASS A CLASS B CLASS C --------------- ----------- ---------------------- ---------------------- --------------- ----------- ---------- ----------- ---------- ----------- (1) (2) (1) (2) --------------- ----------- ---------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- 1 year $730 $740 $240 $340 $240 --------------- ----------- ---------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- 3 years $1,057 $1,039 $739 $739 $739 --------------- ----------- ---------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- 5 years $1,406 $1,465 $1,265 $1,265 $1,265 --------------- ----------- ---------- ----------- ---------- ----------- --------------- ----------- ---------- ----------- ---------- ----------- 10 years** $2,386 $2,520 $2,520 $2,706 $2,706 --------------- ----------- ---------- ----------- ---------- ----------- (1) Assumes redemption at end of period. (2) Assumes no redemption at end of period. * The Example for the AEW Real Estate Fund is based on Net Expenses for the 1-year period and on Total Annual Fund Operating Expenses for the remaining years. The Example for all other Funds is based on Total Annual Fund Operating Expenses for all periods. Reflects current fees and expenses. ** Class B shares automatically convert to Class A shares after 8 years; therefore, in years 9 and 10 Class B amounts are calculated using Class A expenses. SP281-1005 AEW REAL ESTATE FUND CGM ADVISOR TARGETED EQUITY FUND HANSBERGER INTERNATIONAL FUND HARRIS ASSOCIATES LARGE CAP VALUE FUND IXIS U.S. DIVERSIFIED PORTFOLIO VAUGHAN NELSON SMALL CAP VALUE FUND (THE "FUNDS") Supplement dated October 7, 2005 to the IXIS Advisor Equity Funds Class Y Prospectus dated May 1, 2005, as may be revised and supplemented from time to time (This supplement replaces the supplement for the IXIS U.S. Diversified Portfolio dated June 15, 2005) Effective September 1, 2005, State Street Bank and Trust Company became the custodian of the Funds. Effective October 1, 2005, Boston Financial Data Services, Inc. became the shareholder servicing and transfer agent of the Funds. The expenses of the Funds have been reduced as a result of these new arrangements. Accordingly, the Annual Fund Operating Expenses table and the Example table of the Prospectus are amended and restated as follows: ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets, as a percentage of average daily net assets)
----------------------- ------------------------ ------------------------ ---------------------- CGM ADVISOR TARGETED HANSBERGER AEW REAL ESTATE FUND(1) EQUITY FUND INTERNATIONAL FUND(2) ----------------------- ------------------------ ------------------------ ---------------------- ------------------------------------------------------------------------------------------------ CLASS Y CLASS Y CLASS Y ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Management fees 0.80% 0.70% 0.80% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Distribution and/or service (12b-1) fees 0.00% 0.00% 0.00% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Other expenses++ 0.36% 0.18% 0.37% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Total annual fund operating expenses 1.16% 0.88% 1.17% ------------------------------------------------------------------------------------------------ ----------------------- ------------------------ ------------------------ ---------------------- HARRIS ASSOCIATES IXIS U.S. DIVERSIFIED VAUGHAN NELSON SMALL LARGE CAP VALUE FUND(3) PORTFOLIO+ CAP VALUE FUND(2) ----------------------- ------------------------ ------------------------ ---------------------- ------------------------------------------------------------------------------------------------ CLASS Y CLASS Y CLASS Y ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Management fees 0.68% 0.90% 0.90% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Distribution and/or service (12b-1) fees 0.00% 0.00% 0.00% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Other expenses++ 0.24% 0.24% 0.39% ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ Total annual fund operating expenses 0.92% 1.14% 1.29% ------------------------------------------------------------------------------------------------
+ Expense information for the IXIS U.S. Diversified Portfolio reflects a reduction in the advisory fee from 1.05% of the first $750 million of the average daily net assets of the Fund and 0.95% thereafter to 0.90% of the first $1 billion of the average daily net assets of the Fund and 0.80% thereafter, effective July 1, 2005. ++ Other expenses have been restated to reflect changes to the custodian and transfer agency fees for the Funds effective September 1, 2005 and October 1, 2005, respectively. (1) AEW has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses, to 1.25% of the Fund's average daily net assets for Class Y shares. This undertaking is in effect through April 30, 2006, and is reevaluated on an annual basis. (2) Class Y shares of the Hansberger International Fund and the Vaughan Nelson Small Cap Value Fund were not outstanding during 2004 and are not outstanding as of the date of this supplement. Expenses of the Hansberger International Fund and the Vaughan Nelson Small Cap Value Fund have been estimated. (3) IXIS Advisors has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses, to 1.05% of the Fund's average daily net assets for Class Y shares. This undertaking is in effect through April 30, 2006, and is reevaluated on an annual basis. EXAMPLE*
----------- ------------------------------------ ----------------------------------- ----------------------------------- AEW REAL ESTATE FUND CGM ADVISOR TARGETED EQUITY FUND HANSBERGER INTERNATIONAL FUND ----------- ------------------------------------ ----------------------------------- ----------------------------------- ------------------------------------------------------------------------------------------------------------------------ CLASS Y CLASS Y CLASS Y ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 1 year $118 $90 $119 ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 3 years $368 $281 $372 ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 5 years $638 $488 $644 ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 10 years $1,409 $1,084 $1,420 ------------------------------------------------------------------------------------------------------------------------ ----------- ------------------------------------ ----------------------------------- ----------------------------------- HARRIS ASSOCIATES LARGE CAP VALUE IXIS U.S. DIVERSIFIED PORTFOLIO VAUGHAN NELSON SMALL CAP VALUE FUND FUND ----------- ------------------------------------ ----------------------------------- ----------------------------------- ------------------------------------------------------------------------------------------------------------------------ CLASS Y CLASS Y CLASS Y ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 1 year $94 $116 $131 ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 3 years $293 $362 $409 ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 5 years $509 $628 $708 ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 10 years $1,131 $1,386 $1,556 ------------------------------------------------------------------------------------------------------------------------
* The Example for each Fund is based on the Total Annual Fund Operating Expenses for all periods. Reflects current fees and expenses. SP282-1005 LOOMIS SAYLES CORE PLUS BOND FUND LOOMIS SAYLES HIGH INCOME FUND LOOMIS SAYLES INVESTMENT GRADE BOND FUND LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND LOOMIS SAYLES MASSACHUSETTS TAX FREE INCOME FUND LOOMIS SAYLES MUNICIPAL INCOME FUND LOOMIS SAYLES STRATEGIC INCOME FUND (THE "FUNDS") Supplement dated October 7, 2005 to the IXIS Advisor Income and Tax Free Income Funds Classes A, B and C Prospectus dated February 1, 2005 as revised May 1, 2005, as may be revised and supplemented from time to time (This supplement replaces the supplement for the Loomis Sayles Limited Term Government and Agency Fund dated May 12, 2005 and the supplement for the Loomis Sayles Core Plus Bond Fund, Loomis Sayles High Income Fund and Loomis Sayles Massachusetts Tax Free Income Fund dated June 16, 2005) Effective October 1, 2005 (September 1, 2005, for the Loomis Sayles Investment Grade Bond Fund), the Funds entered into a new custodian agreement with State Street Bank and Trust Company. Also effective October 1, 2005, Boston Financial Data Services, Inc. became the shareholder servicing and transfer agent of the Funds. The expenses of the Funds have been reduced as a result of these new arrangements. Accordingly, the Annual Fund Operating Expenses table and the Example table of the Prospectus are amended and restated as follows: ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets, as a percentage of average daily net assets)
----------------------- ------------------------------------ ----------------------------------- CORE PLUS BOND FUND(1) HIGH INCOME FUND(2) ----------------------- ------------------------------------ ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- Management fees 0.42% 0.42% 0.42% 0.60% 0.60% 0.60% ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- Distribution and/or service (12b-1) fees 0.25% 1.00%* 1.00%* 0.25% 1.00%* 1.00%* ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- Other expenses++ 0.50% 0.50% 0.50% 0.58% 0.58% 0.58% ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- Total annual fund operating expenses 1.17% 1.92% 1.92% 1.43% 2.18% 2.18% ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- Fee Waiver and/or Expense Reimbursement 0.12% 0.12% 0.12% 0.00% 0.00% 0.00% ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- ----------------------- ----------- ------------ ----------- ---------- ------------- ---------- Net Expenses 1.05% 1.80% 1.80% 1.43% 2.18% 2.18% ----------------------- ----------- ------------ ----------- ---------- ------------- ----------
----------------------- -------------------------------------- ---------------------------------- -------------------------------- INVESTMENT GRADE BOND FUND(3) LIMITED TERM GOVERNMENT AND AGENCY MASSACHUSETTS TAX FREE INCOME FUND+ FUND(4) ----------------------- -------------------------------------- ---------------------------------- -------------------------------- ----------------------- ----------- ------------- ------------ ------------ ---------- ---------- -------------- ----------------- CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B ----------------------- ----------- ------------- ------------ ------------ ---------- ---------- -------------- ----------------- ----------------------- ----------- ------------- ------------ ------------ ---------- ---------- -------------- ----------------- Management fees 0.40% 0.40% 0.40% 0.50% 0.50% 0.50% 0.60% 0.60% ----------------------- ----------- ------------- ------------ ------------ ---------- ---------- -------------- ----------------- ----------------------- ----------- ------------- ------------ ------------ ---------- ---------- -------------- ----------------- Distribution and/or service (12b-1) fees 0.25% 1.00%* 1.00%* 0.25% 1.00%* 1.00%* 0.25% 1.00%* ----------------------- ----------- ------------- ------------ ------------ ---------- ---------- -------------- ----------------- ----------------------- ----------- ------------- ------------ ------------ ---------- ---------- -------------- ----------------- Other expenses++ 0.26% 0.26% 0.26% 0.32% 0.32% 0.32% 0.28% 0.28% ----------------------- ----------- ------------- ------------ ------------ ---------- ---------- -------------- ----------------- ----------------------- ----------- ------------- ------------ ------------ ---------- ---------- -------------- ----------------- Total annual fund operating expenses 0.91% 1.66% 1.66% 1.07% 1.82% 1.82% 1.13% 1.88% ----------------------- ----------- ------------- ------------ ------------ ---------- ---------- -------------- -----------------
------------------------------ ------------------------------- ---------------------------------- MUNICIPAL INCOME FUND STRATEGIC INCOME FUND(5) ------------------------------ ------------------------------- ---------------------------------- ------------------------------ ------------- ----------------- ---------- ------------ ---------- CLASS A CLASS B CLASS A CLASS B CLASS C ------------------------------ ------------- ----------------- ---------- ------------ ---------- ------------------------------ ------------- ----------------- ---------- ------------ ---------- Management fees 0.47% 0.47% 0.61% 0.61% 0.61% ------------------------------ ------------- ----------------- ---------- ------------ ---------- ------------------------------ ------------- ----------------- ---------- ------------ ---------- Distribution and/or service (12b-1) fees 0.25% 1.00%* 0.25% 1.00%* 1.00%* ------------------------------ ------------- ----------------- ---------- ------------ ---------- ------------------------------ ------------- ----------------- ---------- ------------ ---------- Other expenses++ 0.26% 0.26% 0.35% 0.35% 0.35% ------------------------------ ------------- ----------------- ---------- ------------ ---------- ------------------------------ ------------- ----------------- ---------- ------------ ---------- Total annual fund operating expenses 0.98% 1.73% 1.21% 1.96% 1.96% ------------------------------ ------------- ----------------- ---------- ------------ ----------
+ Expense information for the Loomis Sayles Limited Term Government and Agency Fund reflects a reduction in the advisory fee from 0.57% of the Fund's average daily net assets to 0.50% of the Fund's average daily net assets, effective March 21, 2005. ++ Other expenses have been restated to reflect changes to the custodian and transfer agency fees for the Loomis Sayles Investment Grade Bond Fund effective September 1, 2005 and October 1, 2005, respectively, and changes to the custodian fees and transfer agency fees for the other Funds effective October 1, 2005. * Because of the higher 12b-1 fees, long-term shareholders may pay more than the economic equivalent of the maximum front-end sales charge permitted by the rules of the National Association of Securities Dealers, Inc. (1) Loomis Sayles has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses, to 1.05%, 1.80%, and 1.80% of the Fund's average daily net assets for Classes A, B and C shares, respectively. This undertaking is in effect from July 1, 2005 through January 31, 2006 and is reevaluated on an annual basis. Without this undertaking, expenses would have been higher. (2) Loomis Sayles has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses, to 1.45%, 2.20%, and 2.20% of the Fund's average daily net assets for Classes A, B and C shares, respectively. This undertaking is in effect from July 1, 2005 through January 31, 2006 and is reevaluated on an annual basis. (3) Loomis Sayles has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expense, taxes and organizational and extraordinary expenses, to 0.95%, 1.70% and 1.70% annually of the Fund's average daily net assets for Classes A, B and C shares, respectively. This undertaking is in effect through January 31, 2006, and is reevaluated on an annual basis. (4) Loomis Sayles has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses, to 1.15% and 1.90% of the Fund's average daily net assets for Class A and Class B shares, respectively. This undertaking is in effect from July 1, 2005 through January 31, 2006 and is reevaluated on an annual basis. (5) Loomis Sayles has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses, to 1.25%, 2.00% and 2.00% of the Fund's average daily net assets for Classes A, B and C shares, respectively. This undertaking is in effect through January 31, 2006 and is reevaluated on an annual basis. EXAMPLE*
-------------- ------------------------------------------------------ ----------------------------------------------------- CORE PLUS BOND FUND HIGH INCOME FUND -------------- ------------------------------------------------------ ----------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------- CLASS CLASS CLASS CLASS CLASS CLASS A B C A B C --------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------- (1) (2) (1) (2) (1) (2) (1) (2) --------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------- 1 year $552 $683 $183 $283 $183 $589 $721 $221 $321 $221 --------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------- 3 years $794 $891 $591 $591 $591 $882 $982 $682 $682 $682 --------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------- 5 years $1,054 $1,226 $1,026 $1,026 $1,026 $1,196 $1,370 $1,170 $1,170 $1,170 --------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------- 10 years** $1,796 $2,038 $2,038 $2,234 $2,234 $2,086 $2,323 $2,323 $2,513 $2,513 --------------------------------------------------------------------------------------------------------------------------- --------------------- ------------------------------------------- --------------------------------------------------- INVESTMENT GRADE BOND FUND LIMITED TERM GOVERNMENT AND AGENCY FUND --------------------- ------------------------------------------- --------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- CLASS CLASS CLASS CLASS CLASS CLASS A B C A B C --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- (1) (2) (1) (2) (1) (2) (1) (2) --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- 1 year $539 $669 $169 $269 $169 $406 $685 $185 $285 $185 --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- 3 years $727 $823 $523 $523 $523 $630 $873 $573 $573 $573 --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- 5 years $931 $1,102 $902 $902 $902 $872 $1,185 $985 $985 $985 --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- 10 years** $1,519 $1,766 $1,766 $1,965 $1,965 $1,566 $1,940 $1,940 $2,137 $2,137 ---------------------------------------------------------------------------------------------------------------------
---------------- -------------------------- ------------------------------- MASSACHUSETTS TAX FREE MUNICIPAL INCOME FUND INCOME FUND ---------------- -------------------------- ------------------------------- --------------------------------------------------------------------------- CLASS CLASS CLASS CLASS A B A B --------------------------------------------------------------------------- --------------------------------------------------------------------------- (1) (2) (1) (2) --------------------------------------------------------------------------- --------------------------------------------------------------------------- 1 year $535 $691 $191 $545 $676 $176 --------------------------------------------------------------------------- --------------------------------------------------------------------------- 3 years $769 $891 $591 $748 $845 $545 --------------------------------------------------------------------------- --------------------------------------------------------------------------- 5 years $1,021 $1,216 $1,016 $967 $1,139 $939 --------------------------------------------------------------------------- --------------------------------------------------------------------------- 10 years** $1,741 $2,005 $2,005 $1,597 $1,842 $1,842 --------------------------------------------------------------------------- ---------------- ------------------------------------------------------- STRATEGIC INCOME FUND ---------------- ------------------------------------------------------- ---------------- ---------- ------------------ ------------------------- CLASS A CLASS B CLASS C ---------------- ---------- ------------------ ------------------------- ---------------- ---------- -------- --------- ----------- ------------- (1) (2) (1) (2) ---------------- ---------- -------- --------- ----------- ------------- ---------------- ---------- -------- --------- ----------- ------------- 1 year $568 $699 $199 $299 $199 ---------------- ---------- -------- --------- ----------- ------------- ---------------- ---------- -------- --------- ----------- ------------- 3 years $817 $915 $615 $615 $615 ---------------- ---------- -------- --------- ----------- ------------- ---------------- ---------- -------- --------- ----------- ------------- 5 years $1,085 $1,257 $1,057 $1,057 $1,057 ---------------- ---------- -------- --------- ----------- ------------- ---------------- ---------- -------- --------- ----------- ------------- 10 years** $1,850 $2,091 $2,091 $2,285 $2,285 ---------------- ---------- -------- --------- ----------- ------------- (1) Assumes redemption at end of period. (2) Assumes no redemption at end of period. * The Example for Core Plus Bond Fund is based on the Net Expenses for the 1-year period and on the Total Annual Fund Operating Expenses for the remaining years. The Examples for all other Funds are based on the Total Annual Fund Operating Expenses for all periods. Reflects current fees and expenses. ** Class B shares automatically convert to Class A shares after 8 years; therefore, in years 9 and 10 Class B amounts are calculated using Class A expenses. SP279-1005 LOOMIS SAYLES CORE PLUS BOND FUND LOOMIS SAYLES HIGH INCOME FUND LOOMIS SAYLES INVESTMENT GRADE BOND FUND LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND LOOMIS SAYLES STRATEGIC INCOME FUND (THE "FUNDS") Supplement dated October 7, 2005 to the IXIS Advisor Income and Tax Free Income Funds Classes Y Prospectus dated February 1, 2005, as may be revised and supplemented from time to time (This supplement replaces the supplement for the Loomis Sayles Limited Term Government and Agency Fund dated March 21, 2005, the supplement for the Loomis Sayles Core Plus Bond Fund dated June 15, 2005 and the supplement for the Loomis Sayles Strategic Income Fund dated August 16, 2005) Effective October 1, 2005 (September 1, 2005, for the Loomis Sayles Investment Grade Bond Fund), the Funds entered into a new custodian agreement with State Street Bank and Trust Company. Also effective October 1, 2005, Boston Financial Data Services, Inc. became the shareholder servicing and transfer agent of the Funds. The expenses of the Funds have been reduced as a result of these new arrangements. Accordingly, the Annual Fund Operating Expenses table and the Example table of the Prospectus are amended and restated as follows: ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets, as a percentage of average daily net assets)
-------------------------------- ------------------------------ ------------------------------ CORE PLUS BOND HIGH INCOME FUND(1) FUND* -------------------------------- ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ CLASS Y CLASS Y -------------------------------- ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ Management fees 0.42% 0.60% -------------------------------- ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ Distribution and/or service (12b-1) fees 0.00% 0.00% -------------------------------- ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ Other expenses++ 0.45% 0.49% -------------------------------- ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ Total annual fund operating 1.09% expenses 0.87% -------------------------------- ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ Fee Waiver and/or Expense 0.00% Reimbursement 0.07% -------------------------------- ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ Net Expenses 0.80% 1.09% -------------------------------- ------------------------------ ------------------------------
-------------------------------- ------------------------------ ------------------------------ ------------------------------ INVESTMENT GRADE BOND FUND(2) LIMITED TERM GOVERNMENT AND STRATEGIC INCOME AGENCY FUND+ FUND(3) -------------------------------- ------------------------------ ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ ------------------------------ CLASS Y CLASS Y CLASS Y -------------------------------- ------------------------------ ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ ------------------------------ Management fees 0.40% 0.50% 0.61% -------------------------------- ------------------------------ ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ ------------------------------ Distribution and/or service (12b-1) fees 0.00% 0.00% 0.00% -------------------------------- ------------------------------ ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ ------------------------------ Other expenses++ 0.21% 0.24% 0.28% -------------------------------- ------------------------------ ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ ------------------------------ Total annual fund operating expenses 0.61% 0.74% 0.89% -------------------------------- ------------------------------ ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ ------------------------------ Fee Waiver and/or Expense Reimbursement 0.06% 0.00% 0.00% -------------------------------- ------------------------------ ------------------------------ ------------------------------ -------------------------------- ------------------------------ ------------------------------ ------------------------------ Net Expenses 0.55% 0.74% 0.89% -------------------------------- ------------------------------ ------------------------------ ------------------------------
+ Expense information for the Loomis Sayles Limited Term Government and Agency Fund reflects a reduction in the advisory fee from 0.57% of the Fund's average daily net assets to 0.50% of the Fund's average daily net assets, effective March 21, 2005. ++ Other expenses have been restated to reflect changes to the custodian and transfer agency fees for the Loomis Sayles Investment Grade Bond Fund effective September 1, 2005 and October 1, 2005, respectively, and changes to the custodian and transfer agency fees for the other Funds effective October 1, 2005. * Class Y shares of the Loomis Sayles High Income Fund were not outstanding during 2004 and are not outstanding as of the date of this supplement. Expenses for Loomis Sayles High Income Fund have been estimated. (1) Loomis Sayles has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses, to 0.80% of the Fund's average daily net assets for Class Y. This undertaking is in effect from July 1, 2005 through January 31, 2006 and is reevaluated on an annual basis. Without this undertaking, expenses would have been higher. (2) Loomis Sayles has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses to 0.55% of the Fund's average daily net assets for Class Y shares. This undertaking is in effect through January 31, 2006 and is reevaluated on an annual basis. Without this undertaking, expenses would have been higher. (3) Loomis Sayles has given a binding undertaking to this Fund to limit the amount of the Fund's total annual fund operating expenses, exclusive of brokerage expenses, interest expenses, taxes and organizational and extraordinary expenses to 1.00% of the Fund's average daily net assets for Class Y shares. This undertaking is in effect through January 31, 2006 and will be reevaluated on an annual basis thereafter. EXAMPLE* ---------------- --------------------------------- ----------------------------- CORE PLUS BOND FUND HIGH INCOME FUND ---------------- --------------------------------- ----------------------------- -------------------------------------------------------------------------------- CLASS Y CLASS Y -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1 year $82 $111 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 3 years $271 $347 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 5 years $475 $601 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 10 years $1,066 $1,329 --------------------------------------------------------------------------------
---------------- --------------------------------- ---------------------------------- ---------------------------------- INVESTMENT GRADE BOND FUND LIMITED TERM GOVERNMENT AND STRATEGIC INCOME FUND AGENCY FUND ---------------- --------------------------------- ---------------------------------- ---------------------------------- ------------------------------------------------------------------------------------------------------------------------ CLASS Y CLASS Y CLASS Y ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 1 year $56 $76 $91 ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 3 years $189 $237 $284 ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 5 years $334 $411 $493 ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ 10 years $756 $918 $1,096 ------------------------------------------------------------------------------------------------------------------------
* The Examples for the Loomis Sayles Core Plus Bond Fund and Loomis Sayles Investment Grade Bond Fund are based on the Net Expenses for the 1-year period and on the Total Annual Fund Operating Expenses for the remaining years. The Examples for all other Funds are based on the Total Annual Fund Operating Expenses for all periods. Reflects current fees and expenses. SP280-1005