Ex. (d)(18)

                   Amendment No. 1 to Advisory Agreement



Effective December 3, 2001, Loomis Sayles Funds, a Massachusetts business trust
(the "Trust"), on behalf of its Research Fund series (the "Series"), and Loomis,
Sayles & Company, L.P., a Delaware limited partnership (the "Adviser") hereby
agree that the Advisory Agreement (the "Agreement") dated October 30, 2000, by
and between the Trust, on behalf of the Series, and the Adviser is hereby
amended as follows:


Effective December 3, 2001, the annual rate of compensation to be paid to the
Adviser on behalf of the Series pursuant to Section 7 of the Agreement shall be
reduced to 0.50%.


All other provisions of the Agreement shall remain in full force and effect.


IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 on the
day and year first above written.


     LOOMIS SAYLES FUNDS,
     On Behalf of Its
     Loomis Sayles Research Fund Series,


     By: /s/ Daniel J. Fuss
        --------------------------------
        Daniel J. Fuss
        President


     LOOMIS SAYLES & COMPANY, L.P.


     By:  LOOMIS, SAYLES & COMPANY, INC.,
          Its General Partner,


     By:  /s/ Mark W. Holland
        ---------------------------------
        Mark W. Holland
        Vice President and Director


     A copy of the Agreement and Declaration of Trust establishing the Trust is
on file with the Secretary of State of the Commonwealth of Massachusetts, and
notice is hereby given that this Agreement is executed with respect to the
Series on behalf of the Trust by officers of the Trust as officers and not
individually and that the obligations of or arising out of this Agreement are
not binding upon any of the Trustees, officers, or shareholders individually but
are binding only upon the assets and property belonging to the Series.