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: 811-06241

Loomis Sayles Funds II

(Exact name of Registrant as specified in charter)

399 Boylston Street, Boston, Massachusetts    02116

                  (Address of principal executive offices)                  (Zip code)

Coleen Downs Dinneen, Esq.

Natixis Distributors, L.P.

399 Boylston Street

Boston, Massachusetts 02116

(Name and address of agent for service)

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

Date of fiscal year end: September 30

Date of reporting period: March 31, 2010

Item 1. Reports to Stockholders.

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

INCOME FUNDS

SEMIANNUAL REPORT

March 31, 2010

Loomis Sayles Core Plus Bond Fund

Loomis Sayles High Income Fund

Loomis Sayles International Bond Fund

Loomis Sayles Limited Term Government and Agency Fund

Loomis Sayles Strategic Income Fund

TABLE OF CONTENTS

Management Discussion and Performancepage 1

Portfolio of Investmentspage 15

LOOMIS SAYLES CORE PLUS BOND FUND

PORTFOLIO PROFILE

Objective:

Seeks high total investment return through a combination of current income and capital appreciation

Strategy:

Invests primarily in U.S. corporate and U.S. government bonds

Fund Inception:

November 7, 1973

Managers:

Peter W. Palfrey, CFA

Richard G. Raczkowski

Loomis, Sayles & Company, L.P.

Symbols:

Class A	NEFRX
Class B	NERBX
Class C	NECRX
Class Y	NERYX

What You Should Know:

Fixed-income securities are subject to credit risk and interest rate risk; their value generally rises when prevailing interest rates fall and falls when rates rise.

The fund can invest a significant percentage of assets in debt securities that are rated below investment grade and the value of fund shares can be adversely affected by changes in economic conditions or other circumstances. Lower rated debt securities have speculative characteristics and may be subject to greater price volatility than higher rated investments. In addition, the secondary market for these securities may lack liquidity. The fund can also invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets, these risks can be significant. Fund shares should be viewed as a long-term investment.

Management Discussion

Investors’ willingness to accept risk continued to increase over the six-month period ended March 31, 2010, and this was reflected in the solid performance of a wide range of non-Treasury sectors in the bond market. At the same time, both the U.S. and global economies showed sustained signs of improvement. In this environment, Loomis Sayles Core Plus Bond Fund benefited because it was well positioned to take advantage of global economic recovery.

For the six months ended March 31, 2010, Class A shares of Loomis Sayles Core Plus Bond Fund returned 4.31%. By comparison, the fund’s benchmark, the Barclays Capital U.S. Aggregate Bond Index, returned 1.99% for the six-month period, while Morningstar’s Intermediate-Term Bond category returned 3.70%.

WHAT WAS THE PRIMARY REASON FOR THE FUND’S OUTPERFORMANCE?

Strong sector allocation and security selection were the principal contributors to returns, especially in investment-grade and high-yield debt. The lower quality and cyclical biases within these sectors significantly benefited the fund over the period. The fund benefited from its underweight in U.S. government securities, which lagged during the period, and from having a slightly longer maturity than the benchmark.

WHICH FACTORS POSITIVELY CONTRIBUTED TO THE FUND’S PERFORMANCE?

The fund’s overweight position in investment-grade bonds was especially beneficial. Within the sector, we favored bonds rated between A and Baa by Moody’s Investors Service. Longer-duration issues and the industrial sector were also key contributors within investment-grade. (Duration is a measure of interest rate sensitivity.) In our high-yield holdings, we focused on bonds issued by companies with proven access to capital markets and solid balance sheets. While we maintained an overweight position in high-yield, we trimmed some positions as they reached what we believed to be fair market value. Within the commercial mortgage-backed securities (CMBS) area, the fund’s focus is on older, high-quality issues that offer a combination of value, attractive income and some protection from the currently adverse commercial real estate environment.

Early in 2010 we added to positions in intermediate-term Mexican and Japanese bonds. We believe the Mexican peso will help increase yield in the fund and the currency is attractive given the moderate recovery conditions we anticipate in the United States. The Japanese yen remains fundamentally undervalued. We believe the yen has the potential to appreciate modestly from current levels and help serve as a partial hedge and offset adverse effects in the event risk goes out of favor and volatility increases.

Throughout the period, we underweighted U.S. Treasuries and avoided Agencies — a positive for the fund. Our security selection among asset-backed securities (ABS) was another positive.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

The fund remained significantly underweight in mortgage-backed securities (MBS) relative to the benchmark. We believe there is limited upside potential in the MBS market; and although performance was slightly punished, our underweight in these securities allowed us to emphasize other sectors that did well.

While our sector allocation to CMBS contributed to return over the past six months, certain security-specific issues weighed modestly on overall outperformance. We remain confident that the issues we selected have the potential to benefit the fund over the long term.

WHAT IS YOUR OUTLOOK?

In general, we have structured the portfolio to benefit from a continuing market recovery, although we have been careful to maintain significant reserves in U.S. Treasuries to provide flexibility if the market gives back some of its recent gains. We remain focused on generating income and plan to selectively add more issue-specific risk into the portfolio. We will look for opportunities to moderately increase high-yield, CMBS and ABS allocations, as well as to shorten duration in anticipation of higher Treasury yields.

1

LOOMIS SAYLES CORE PLUS BOND FUND

Investment Results through March 31, 2010

PERFORMANCE IN PERSPECTIVE

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

Growth of a $10,000 Investment in Class A Shares ⁴

Average Annual Returns — March 31, 2010⁴

	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
Class A (Inception 11/7/73)
Net Asset Value1	4.31	%	20.66	%	6.64	%	6.08	%
With Maximum Sales Charge2	-0.37		15.21		5.66		5.59
Class B (Inception 9/13/93)
Net Asset Value1	3.90		19.77		5.86		5.31
With CDSC3	-1.10		14.77		5.54		5.31
Class C (Inception 12/30/94)
Net Asset Value1	3.93		19.76		5.85		5.30
With CDSC3	2.93		18.76		5.85		5.30
Class Y (Inception 12/30/94)
Net Asset Value1	4.42		20.96		6.92		6.44
COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
Barclays Capital U.S. Aggregate Bond Index	1.99	%	7.69	%	5.44	%	6.29	%
Morningstar Int.-Term Bond Fund Avg.	3.70		16.76		4.48		5.60

See page 11 for a description of the indices.

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

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

PORTFOLIO FACTS

	% of Net Assets as of
CREDIT QUALITY	3/31/10*	9/30/09**
Aaa	39.4	51.5
Aa	6.5	4.7
A	11.8	9.0
Baa	24.5	19.6
Ba	10.8	5.9
B	5.1	3.3
Caa and lower	0.2	1.3
Not Rated	—	1.9
Short-term and other	1.7	1.8

* Credit quality at 3/31/2010 reflects the highest rating assigned to a security among Moody’s, S&P, or Fitch. The Moody’s equivalent of the assigned rating is presented in the table.

** Credit quality at 9/30/2009 was based on ratings from Moody’s. Securities that were not rated by Moody’s may have been rated by another rating agency or by Loomis Sayles.

	% of Net Assets as of
EFFECTIVE DURATION	3/31/10		9/30/09
1 year or less	6.0		6.7
1-5 years	31.3		36.6
5-10 years	43.8		43.9
10+ years	18.9		12.8
Average Effective Duration	9.0	years	5.9	years

Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio5		Net Expense Ratio6
A	0.97	%	0.90	%
B	1.72		1.65
C	1.72		1.65
Y	0.68		0.65

NOTES TO CHARTS

¹ Does not include a sales charge.

² Includes maximum sales charge of 4.50%.

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

⁴ Fund performance has been increased by expense reductions and reimbursements, if any, without which performance would have been lower.

⁵ Before reductions and reimbursements.

⁶ After reductions and reimbursements. Expense reductions are contractual and are set to expire on 1/31/11.

2

LOOMIS SAYLES HIGH INCOME FUND

PORTFOLIO PROFILE

Objective:

Seeks high current income plus the opportunity for capital appreciation to produce a high total return

Strategy:

Invests primarily in lower-quality fixed-income securities

Fund Inception:

February 22, 1984

Managers:

Matthew J. Eagan, CFA

Kathleen C. Gaffney, CFA

Elaine M. Stokes

Loomis, Sayles & Company, L.P.

Symbols:

Class A	NEFHX
Class B	NEHBX
Class C	NEHCX
Class Y	NEHYX

What You Should Know:

Fixed-income securities are subject to credit risk and interest rate risk; their value generally rises when prevailing interest rates fall and falls when rates rise.

The fund can invest a significant percentage of assets in debt securities that are rated below investment grade and the value of fund shares can be adversely affected by changes in economic conditions or other circumstances. Lower rated debt securities have speculative characteristics and may be subject to greater price volatility than higher rated investments. In addition, the secondary market for these securities may lack liquidity. The fund can also invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets, these risks can be significant. Fund shares should be viewed as a long-term investment.

Management Discussion

Investors responded to improving economic conditions by continuing to invest in lower-quality debt securities. Growing confidence in the recovery’s sustainability made risk more acceptable. The resulting strong flow of money into corporate and high-yield issues caused spreads to narrow from the exceptionally wide levels seen during the depths of the recession; by period’s end, spreads had approached 15-year historical averages. Fears over a looming debt crisis in Greece and other peripheral eurozone markets and concerns about China’s lending restrictions percolated through the global credit markets. In the United States, conflicting economic data and an uncertain outlook for financial regulation drove some market participants back into defensive mode for a time. Still, the overall tone in the high-yield market was optimistic, thanks to shrinking default rates and brighter economic trends.

For the six months ended March 31, 2010, Class A shares of Loomis Sayles High Income Fund returned 11.26%. The fund performed in line with its benchmark, Barclays Capital U.S. Corporate High-Yield Bond Index, which returned 11.10% over the period, and ahead of Morningstar’s High Yield Bond category, which had an average return of 10.15%.

WHICH FACTORS CONTRIBUTED POSITIVELY TO THE FUND’S PERFORMANCE?

Convertible securities in the health care and automotive sectors led fund performance over this period, rising along with climbing equity prices. High-yield industrial issues also rose amid indications of increased business activity. Prices for consumer cyclical, non-cyclical and communications credits appreciated as companies cut overhead and posted positive earnings early in the period. Projections of continued economic strengthening also helped buoy holdings in these industries. Bonds rated Baa and B had the greatest positive impact on performance, as investors continued to seek yield throughout the period. Commodity prices pushed higher in anticipation of continued global recovery, benefiting fund holdings based in commodity-rich countries. Bonds denominated in the Mexican peso, Indonesian rupiah and Uruguayan peso were among the top-performing currency exposures.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

While security selection was positive, underweights in strong sectors held back results. Among the below-benchmark exposures that detracted over the period were high-yield financials, including banks and insurance companies. Underweights among C- and Ca-rated issues also penalized returns, as lower-rated issues outperformed those in higher rating categories. Bonds sponsored by government agencies, a minor position in the portfolio, were the sole area of absolute negative returns for the period.

WHAT IS YOUR OUTLOOK?

The fund is positioned to take advantage of a gradual economic recovery and positive fundamental trends. We believe short-term interest rates in the United States will remain low for the foreseeable future, but acknowledge the continuing pressures that the ever-increasing U.S. Treasury issuance will place on longer-term rates. In our opinion, there remains ample opportunity for corporate bond yield spreads to tighten further. Within corporate credit, we are advocating a strategy of specific (fundamental credit) risk instead of market (interest rate) risk. We continue to see opportunity in the convertible market and have focused on increasing our exposure. We continue to add opportunistically to non-U.S. dollar denominated securities, with a focus on credits and countries in which we anticipate fundamental improvements will continue to emerge. We believe that in a rising-rate environment, research and security selection will continue to prove key to successful portfolio management.

3

LOOMIS SAYLES HIGH INCOME FUND

Investment Results through March 31, 2010

PERFORMANCE IN PERSPECTIVE

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

Growth of a $10,000 Investment in Class A Shares ⁴

Average Annual Returns  —  March 31, 2010⁴

	6 MONTHS		1 YEAR		5 YEARS		10 YEARS		SINCE INCEPTION
Class A (Inception 2/22/84)
Net Asset Value1	11.26	%	47.06	%	7.33	%	3.51	%	—
With Maximum Sales Charge2	6.29		40.28		6.35		3.03		—
Class B (Inception 9/20/93)
Net Asset Value1	10.82		46.23		6.54		2.74		—
With CDSC3	5.82		41.23		6.23		2.74		—
Class C (Inception 3/2/98)
Net Asset Value1	10.59		45.97		6.51		2.73		—
With CDSC3	9.59		44.97		6.51		2.73		—
Class Y (Inception 2/29/08)
Net Asset Value1	11.17		47.15		—		—		8.05
COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS		SINCE CLASS  Y INCEPTION7
Barclays Capital U.S. Corporate High-Yield Bond Index	11.10	%	56.18	%	7.78	%	7.45	%	11.56	%
Morningstar High Yield Bond Fund Avg.	10.15		47.60		5.52		5.32		7.44

See page 11 for a description of the indices.

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

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

PORTFOLIO FACTS

	% of Net Assets as of
CREDIT QUALITY	3/31/10*	9/30/09**
Aaa	3.2	10.0
Aa	2.1	0.5
A	4.1	0.2
Baa	7.2	5.3
Ba	34.8	28.5
B	24.1	28.2
Caa and lower	6.8	14.8
Not Rated	6.1	5.6
Short-term and other	11.6	6.9

* Credit quality at 3/31/2010 reflects the highest rating assigned to a security among Moody’s, S&P, or Fitch. The Moody’s equivalent of the assigned rating is presented in the table.

** Credit quality at 9/30/2009 was based on ratings from Moody’s. Securities that were not rated by Moody’s may have been rated by another rating agency or by Loomis Sayles.

	% of Net Assets as of
EFFECTIVE MATURITY	3/31/10		9/30/09
1 year or less	13.2		6.8
1-5 years	27.3		32.1
5-10 years	24.7		34.2
10+ years	34.8		26.9
Average Effective Maturity	9.3	years	8.6	years

Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio5		Net Expense Ratio6
A	1.28	%	1.15	%
B	2.06		1.90
C	2.03		1.90
Y	0.92		0.90

NOTES TO CHARTS

¹ Does not include a sales charge.

² Includes maximum sales charge of 4.50%.

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

⁴ Fund performance has been increased by expense reductions and reimbursements, if any, without which performance would have been lower.

⁵ Before reductions and reimbursements.

⁶ After reductions and reimbursements. Expense reductions are contractual and are set to expire on 1/31/11.

⁷ The since-inception comparative performance figures shown for Class Y shares are calculated from 3/1/08.

4

LOOMIS SAYLES INTERNATIONAL BOND FUND

PORTFOLIO PROFILE

Objective:

Seeks high total return through a combination of high current income and capital appreciation

Strategy:

Invests primarily in fixed-income securities located outside the U.S.

Fund Inception:

February 1, 2008

Managers:

Lynda L. Schweitzer, CFA

Kenneth M. Buntrock, CFA, CIC

David W. Rolley, CFA

Loomis, Sayles & Company, L.P.

Symbols:

Class A	LSIAX
Class C	LSICX
Class Y	LSIYX

What You Should Know:

Fixed-income securities are subject to credit risk and interest rate risk; their value generally rises when prevailing interest rates fall and falls when rates rise. The fund may also invest in public or private debt obligations issued or guaranteed by U.S. or non-U.S. issuers. The fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The fund can invest a significant percentage of assets in debt securities that are rated below investment grade. Lower-rated debt securities have speculative characteristics and may be subject to greater price volatility than higher-rated investments. In addition, the secondary market for these securities may lack liquidity. Fund shares should be viewed as a long-term investment.

Management Discussion

Global bond markets produced uneven results during the six months ended March 31, 2010. A continuing rebound in world economic growth led to solid gains in sectors exposed to credit risk. However, longer-maturity sovereign debt of developed nations, most notably in Europe and Japan, lost ground. The currencies of some developed economies, including the euro and the Japanese yen, also declined. At the same time, the currencies of many commodity-linked national economies in the emerging markets gained as investors grew more confident.

For the six months ended March 31, 2010, Class A shares of Loomis Sayles International Bond Fund returned -1.98%. During the same period, the fund’s benchmark, the Barclays Capital Global Aggregate ex-USD Bond Index, returned -3.18%, while funds in Morningstar’s World Bond category returned an average of 1.35%.

WHAT WAS THE PRIMARY REASON THE FUND’S OUTPERFORMANCE?

The fund’s overall performance reflected the diverse factors affecting bond markets throughout the world during the past six months. Good sector positioning – notably the overweight allocations to corporate bonds – and effective currency strategies helped support results. However, the strength of the U.S. dollar and weak performance by major foreign currencies, including the euro and the British pound, resulted in negative absolute returns both for the fund and the benchmark.

WHICH FACTORS POSITIVELY CONTRIBUTED TO THE FUND’S PERFORMANCE?

The fund’s overweight in corporate bonds and its de-emphasis of government bonds and securitized assets proved helpful during a period when corporate securities produced solid gains. In addition, our decisions to underweight the euro and the Japanese yen provided further support as those currencies lost value on world markets. Conversely, the allocations to emerging market investments supported results, with positions in Korea, Indonesia, Malaysia, Brazil and Mexico all producing positive performance for the fund.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

The fund’s positions in longer-maturity U.S. government and domestic corporate bonds lagged shorter-maturity securities, as longer-term interest rates rose more than short-term rates. While overall currency positioning was helpful, exposure to the currencies of Norway and Sweden detracted from results. The euro saw even lower returns due to the impact of government deficit problems in Greece. Overall, investments in government bonds denominated in the home currencies of developed markets such as France, Japan, the Netherlands and Germany were the greatest drags on results.

WHAT IS YOUR OUTLOOK?

We think the global economy will continue to recover during 2010, but we are concerned about 2011 as fiscal problems of many governments threaten to limit the pace of the expansion. Against this backdrop, we continue to favor selected emerging market corporate securities, such as corporate bonds in Indonesia and South Korea. We also may consider adding exposure to the currencies of Malaysia and India. Overall, we favor holding short-maturity high-yield corporate bonds to keep yield in the portfolio until such time as longer-maturity securities offer better value.

5

LOOMIS SAYLES INTERNATIONAL BOND FUND

Investment Results through March 31, 2010

PERFORMANCE IN PERSPECTIVE

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

Growth of $10,000 Investment in Class A Shares ⁴

Average Annual Returns — March 31, 2010⁴

	6 MONTHS		1 YEAR		SINCE INCEPTION
Class A (Inception 2/1/08)
Net Asset Value1	-1.98	%	20.49	%	4.73	%
With Maximum Sales Charge2	-6.38		15.06		2.53
Class C (Inception 2/1/08)
Net Asset Value1	-2.32		19.69		3.93
With CDSC3	-3.27		18.69		3.93
Class Y (Inception 2/1/08)
Net Asset Value1	-1.87		20.68		4.91
COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		SINCE INCEPTION
Barclays Capital Global Aggregate ex-USD Bond Index	-3.18	%	11.83	%	3.07	%
Morningstar World Bond Fund Avg.	1.35		17.63		4.46

See page 11 for a description of the indices.

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

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

PORTFOLIO FACTS

	% of Net Assets as of
CREDIT QUALITY	3/31/10*	9/30/09**
Aaa	48.7	52.5
Aa	21.9	19.1
A	7.3	7.0
Baa	11.7	10.7
Ba	5.5	2.7
B	1.3	1.2
Caa and lower	—	0.4
Not Rated	—	3.3
Short-term and other	3.6	3.1

* Credit quality at 3/31/2010 reflects the highest rating assigned to a security among Moody’s, S&P, or Fitch. The Moody’s equivalent of the assigned rating is presented in the table.

** Credit quality at 9/30/2009 was based on ratings from Moody’s. Securities that were not rated by Moody’s may have been rated by another rating agency or by Loomis Sayles.

	% of Net Assets as of
EFFECTIVE MATURITY	3/31/10		9/30/09
1 year or less	4.5		17.3
1-5 years	34.3		35.9
5-10 years	47.9		29.2
10+ years	13.3		17.6
Average Effective Maturity	7.0	years	6.7	years

Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio5		Net Expense Ratio6
A	2.11	%	1.10	%
C	2.93		1.85
Y	1.92		0.85

NOTES TO CHARTS

¹ Does not include a sales charge.

² Includes maximum sales charge of 4.50%.

³ Class C shares performance assumes a 1% CDSC applied when you sell shares within one year of purchase.

⁴ Fund performance has been increased by expense reductions and reimbursements, if any, without which performance would have been lower.

⁵ Before reductions and reimbursements.

⁶ After reductions and reimbursements. Expense reductions are contractual and are set to expire on 1/31/11.

6

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND

PORTFOLIO PROFILE

Objective:

Seeks a high current return consistent with preservation of capital

Strategy:

Invests primarily in securities issued or guaranteed by the U.S. government, its agencies or instrumentalities

Fund Inception:

January 3, 1989

Managers:

John Hyll

Clifton V. Rowe, CFA

Loomis, Sayles & Company, L.P.

Symbols:

Class A	NEFLX
Class B	NELBX
Class C	NECLX
Class Y	NELYX

What You Should Know:

Fixed-income securities are subject to credit risk and interest rate risk; their value generally rises when prevailing interest rates fall and falls when rates rise. Securities issued by the U.S. government are guaranteed by the U.S. government if held to maturity; mutual funds that invest in these securities are not guaranteed. Securities issued by U.S. government agencies may not be government guaranteed.

Management Discussion

Mortgage- and asset-backed securities posted robust returns during the period. These sectors became significantly undervalued during the financial crisis of 2008. However, investors began to recognize the compelling values they offered early last year. An attractive combination of rising prices and higher yields led to strong performance. Treasuries lagged throughout the period.

For the six months ended March 31, 2010, Class A shares of Loomis Sayles Limited Term Government and Agency Fund returned 3.18%. based on the net asset value of Class A shares. For the same period, the fund’s benchmark, the Barclays Capital U.S. 1-5 Year Government Bond Index, returned 0.92%, while Morningstar’s Short Government category returned 1.15%.

WHAT WAS THE PRIMARY REASON FOR THE FUND’S OUTPERFORMANCE?

The fund’s holdings in sectors that offered a yield advantage relative to Treasuries, such as mortgage- and asset-backed securities (MBS) and (ABS), were the principal drivers of performance. These sectors had been significantly undervalued due to concerns about real estate and mortgages. However, in the second quarter of 2009, investors began to recognize the compelling value of these securities. Risk preference shifted away from safety, leading to relative price appreciation in securitized assets. Overall, the combination of rising prices and significant yield advantage led to strong performance in these sectors. In order of their impact on the fund’s return, securities backed by commercial mortgages (CMBS) were the largest contributors to return, followed by ABS and then MBS related to government-sponsored entities (GSEs).

WHICH FACTORS POSITIVELY CONTRIBUTED TO THE FUND’S PERFORMANCE?

As the sectors that had provided the most support for the fund during the financial crisis became underperformers, we gradually positioned the fund more aggressively. We modestly increased holdings in CMBS, which continue to see good demand coupled with low supply. These factors bolstered price movement, leading to significant gains throughout the period. We also maintained an overweight in ABS because of their attractive yields and further appreciation potential.

The fund’s holdings in Treasury Inflation-Protected Securities (TIPS) also performed well. With the continued improvement in the economic outlook late in 2009 and early 2010, concerns about deflation began to ease, resulting in higher valuations for TIPS. We sold the fund’s TIPS holdings on strength during the fourth quarter of 2009.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

Treasuries were underperformers for the fund during the period, as investors grew more comfortable with risk and shifted into higher-yielding issues. Though a significant portfolio underweight relative to the benchmark allowed for a positive contribution from Treasuries, results were weak compared to other portfolio holdings. In addition, longer-maturity securities lagged shorter-maturity securities, as longer-term interest rates rose more than short-term rates.

WHAT IS YOUR OUTLOOK?

Although we expect the Federal Reserve Board to raise short-term interest rates, we believe the first rate increase will occur later than the market thinks it will. We expect our GSE mortgage positions to benefit from a stable interest-rate environment. As a result, we modestly increased CMBS holdings and plan to maintain an overweight in both CMBS and ABS until market conditions warrant a change. We continue to favor ABS and MBS because they are protected through credit enhancements intended to absorb losses and protect senior securities. We believe this protection is strong. Within the fund’s investment parameters, we will continue to look for opportunities to take advantage of a steep yield curve and will focus on income over price appreciation.

Given our expectations of a gradual rise in yields and slow economic growth, we believe our strategy, coupled with careful security selection, has the potential to provide attractive returns for shareholders. As always, we are watching incoming data for signs that market conditions have changed.

7

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND

Investment Results through March 31, 2010

PERFORMANCE IN PERSPECTIVE

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

Growth of a $10,000 Investment in Class A Shares ⁴

Average Annual Returns — March 31, 2010⁴

	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
Class A (Inception 1/3/89)
Net Asset Value1	3.18	%	8.40	%	5.07	%	4.96	%
With Maximum Sales Charge2	0.07		5.13		4.43		4.65
Class B (Inception 9/27/93)
Net Asset Value1	2.80		7.70		4.28		4.22
With CDSC3	-2.20		2.70		3.94		4.22
Class C (Inception 12/30/94)
Net Asset Value1	2.79		7.69		4.30		4.23
With CDSC3	1.79		6.69		4.30		4.23
Class Y (Inception 3/31/94)
Net Asset Value1	3.30		8.75		5.36		5.29
COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
Barclays Capital U.S. 1-5 Year Government Bond Index	0.92	%	1.67	%	4.81	%	5.09	%
Morningstar Short Gov’t Fund Avg.	1.15		3.24		4.05		4.40

See page 11 for a description of the indices.

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

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

PORTFOLIO FACTS

	% of Net Assets as of
FUND COMPOSITION	3/31/10	9/30/09
Treasuries	25.3	14.6
Mortgage Related	23.2	42.4
Commercial Mortgage-Backed Securities	12.8	10.9
Government Guaranteed	12.0	3.5
Government Owned - No Guarantee	9.9	10.0
Government Sponsored	6.9	8.3
ABS Car Loan	3.1	2.1
ABS Credit Card	1.0	3.4
Hybrid ARMs	0.9	2.0
ABS Home Equity	0.8	1.2
Collateralized Mortgage Obligations	0.3	0.4
ABS Other	—	0.3
Short-Term Investments & Other	3.8	0.9

	% of Net Assets as of
EFFECTIVE MATURITY	3/31/10		9/30/09
1 year or less	9.1		1.9
1-5 years	77.2		83.5
5-10 years	13.7		14.6
10+ years	—		—
Average Effective Maturity	2.8	years	3.5	years

Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio5		Net Expense Ratio6
A	0.99	%	0.90	%
B	1.74		1.65
C	1.74		1.65
Y	0.72		0.65

NOTES TO CHARTS

¹ Does not include a sales charge.

² Includes maximum sales charge of 3.00%.

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

⁴ Fund performance has been increased by expense reductions and reimbursements, if any, without which performance would have been lower.

⁵ Before reductions and reimbursements.

⁶ After reductions and reimbursements. Expense reductions are contractual and are set to expire on 1/31/11.

8

LOOMIS SAYLES STRATEGIC INCOME FUND

PORTFOLIO PROFILE

Objective:

Seeks high current income, with a secondary objective of capital growth

Strategy:

Invests primarily in income-producing securities in the U.S. and around the world

Fund Inception:

May 1, 1995

Managers:

Daniel J. Fuss, CFA, CIC

Kathleen C. Gaffney, CFA

Associate Managers:

Matthew J. Eagan, CFA

Elaine M. Stokes

Loomis, Sayles & Company, L.P.

Symbols:

Class A	NEFZX
Class B	NEZBX
Class C	NECZX
Class Y	NEZYX
Admin Class	NEZAX

What You Should Know:

Fixed-income securities are subject to credit risk and interest rate risk; their value generally rises when prevailing interest rates fall and falls when rates rise.

The fund can invest a significant percentage of assets in debt securities that are rated below investment grade and the value of fund shares can be adversely affected by changes in economic conditions or other circumstances. Lower rated debt securities have speculative characteristics and may be subject to greater price volatility than higher rated investments. In addition, the secondary market for these securities may lack liquidity. The fund can also invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets, these risks can be significant. Fund shares should be viewed as a long-term investment.

Management Discussion

As the world economy continues to recover slowly, investors replaced lingering pessimism with optimism. Still fears about government debt in Europe and China’s tight lending practices percolated through the global credit markets, tempering investor enthusiasm for overseas obligations. In the United States, wavering economic data and an uncertain outlook for financial regulation drove some market participants back into defensive mode. Despite these challenges, improved access to capital, declining corporate default rates and brighter economic trends fed an appetite for risk, and corporate bond spreads narrowed during the period.

For the six month period ended March 31, 2010, Class A shares of Loomis Sayles Strategic Income Fund returned 9.86%. The fund significantly outperformed its benchmark, the Barclays Capital U.S. Aggregate Bond Index, which returned 1.99% over the period. It also outperformed the average fund in Morningstar’s Multisector Bond category, which returned 6.82%.

WHAT WAS THE PRIMARY REASON FOR THE FUND’S OUTPERFORMANCE?

Successful security selection was the key to the period’s impressive results, with investment-grade and high-yield corporate issues, convertible bonds and non-U.S dollar obligations all contributing to the fund’s strong performance relative to its benchmark.

WHICH FACTORS POSITIVELY CONTRIBUTED TO THE FUND’S PERFORMANCE?

Strong corporate earnings and better-than-expected fourth quarter gross domestic product (GDP) growth buoyed results among investment-grade corporate issues. Notable returns came from industrial issues in technology, transportation and capital goods. Certain investment-grade financial and electric utility names also lifted performance. Despite a few periods of muted performance, high yield garnered the most gains for the fund, as investors were willing to accept greater risk in pursuit of higher yields. Within high yield, financial (consumer finance, diversified finance) and industrial (technology, communications, retail, automotive) names drove outperformance.

The fund’s non-U.S dollar allocation was among the top contributors of excess return. Investments denominated in the Canadian dollar, Indonesian rupiah and Mexican peso benefited from both asset and currency appreciation. The fund’s Australian dollar, Brazilian real, British pound and New Zealand dollar holdings also contributed.

The equity market rally that started in 2009 extended into 2010, lending support for convertible bonds. Our increased allocation to convertibles generated some of the best returns for the period, led by selected names in automotive, pharmaceuticals and technology. Modest exposure to preferred and equity securities also benefited from the performance surge.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

There were few areas of weakness that existed in the fund amid the widespread bullish sentiment that swept fixed-income markets over the last several months. Our bias away from commercial mortgage-backed securities (CMBS) detracted from performance as the sector rallied. Currency weakness was a performance drag for holdings denominated in the Icelandic krona and Norwegian krone.

WHAT IS YOUR OUTLOOK?

The fund is positioned to take advantage of a gradual economic recovery and positive fundamental trends. We believe short-term interest rates in the United States will remain low for the foreseeable future, but acknowledge the continuing pressures that the ever-increasing U.S. Treasury issuance will place on longer-term rates. In our opinion, there remains ample opportunity for corporate bond yield spreads to tighten further. Within corporate credit, we are advocating a strategy of specific (fundamental credit) risk instead of market (interest rate) risk. We continue to see opportunity in the convertible market and have focused on increasing our exposure. We continue to add opportunistically to non-U.S. dollar-denominated securities, with a focus on credits and countries in which we anticipate fundamental improvements will continue to emerge. We believe that in a rising-rate environment, research and security selection will continue to prove key to successful portfolio management.

9

LOOMIS SAYLES STRATEGIC INCOME FUND

Investment Results through March 31, 2010

PERFORMANCE IN PERSPECTIVE

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

Growth of a $10,000 Investment in Class A Shares ⁵

Average Annual Returns — March 31, 2010 ⁵

	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
Class A (Inception 5/1/95)
Net Asset Value2	9.86	%	46.29	%	7.17	%	9.05	%
With Maximum Sales Charge3	4.92		39.69		6.19		8.55
Class B (Inception 5/1/95)
Net Asset Value2	9.54		45.36		6.40		8.23
With CDSC4	4.54		40.36		6.08		8.23
Class C (Inception 5/1/95)
Net Asset Value2	9.55		45.28		6.39		8.24
With CDSC4	8.55		44.28		6.39		8.24
Class Y (Inception 12/1/99)
Net Asset Value2	10.00		46.73		7.47		9.37
Admin Class (Inception 2/1/10)1
Net Asset Value2	9.60		45.88		6.86		8.66
COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
Barclays Capital U.S. Aggregate Bond Index	1.99	%	7.69	%	5.44	%	6.29	%
Barclays Capital U.S. Universal Bond Index	2.63		10.39		5.55		6.43
Morningstar Multisector Bond Fund Avg.	6.82		31.84		5.59		6.56

See page 11 for a description of the indices.

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

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

PORTFOLIO FACTS

	% of Net Assets as of
CREDIT QUALITY	3/31/10*	9/30/09**
Aaa	16.2	15.6
Aa	6.6	6.1
A	10.6	7.4
Baa	27.0	30.8
Ba	10.8	10.5
B	13.2	6.9
Caa and lower	5.7	8.1
Not Rated	7.2	6.7
Short-term and other	2.7	4.0

* Credit quality at 3/31/2010 reflects the highest rating assigned to a security among Moody’s, S&P, or Fitch. The Moody’s equivalent of the assigned rating is presented in the table.

** Credit quality at 9/30/2009 was based on ratings from Moody’s. Securities that were not rated by Moody’s may have been rated by another rating agency or by Loomis Sayles.

	% of Net Assets as of
EFFECTIVE MATURITY	3/31/10		9/30/09
1 year or less	4.5		5.7
1-5 years	31.5		25.8
5-10 years	30.5		33.1
10+ years	33.5		35.4
Average Effective Maturity	11.5	years	12.3	years

Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio6		Net Expense Ratio7
A	0.99	%	0.99	%
B	1.75		1.75
C	1.74		1.74
Y	0.73		0.73
Admin	1.24		1.24

NOTES TO CHARTS

¹ Prior to the inception of Admin Class shares (2/1/10), performance is that of Class A shares, restated to reflect the higher net expenses of Admin Class shares.

² Does not include a sales charge.

³ Includes maximum sales charge of 4.50%.

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

⁵ Fund performance has been increased by expense reductions and reimbursements, if any, without which performance would have been lower.

⁶ Before reductions and reimbursements.

⁷ After reductions and reimbursements. Expense reductions are contractual and are set to expire on 1/31/11.

10

ADDITIONAL INFORMATION

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

Before investing, consider the Fund’s investment objectives, risks, charges and expenses. Visit www.funds.natixis.com or call 1-800-225-5478 for a prospectus and/or a summary prospectus, both of which contain this and other information. Read it carefully.

INDEX/AVERAGE DESCRIPTIONS

Barclays Capital Global Aggregate ex-USD Bond Index is an unmanaged index that provides a broad-based measure of the international investment-grade fixed-rate debt markets.

Barclays Capital U.S. 1-5 Year Government Bond Index is an unmanaged index that includes U.S. Treasury and agency securities with remaining maturities of one to five years.

Barclays Capital U.S. Aggregate Bond Index is an unmanaged index that covers the U.S.-dollar denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed securities, asset-backed securities, and collateralized mortgage-backed securities sectors.

Barclays Capital U.S. Corporate High-Yield Bond Index is an unmanaged index that covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.

Barclays Capital U.S. Universal Bond Index is an unmanaged index that covers U.S. dollar-denominated taxable bonds, including U.S. government and investment grade debt, non-investment grade debt, asset-backed and mortgage-backed securities, Eurobonds, 144A securities and emerging market debt.

Morningstar Fund Averages are the average performance without sales charges of funds with similar investment objectives, as calculated by Morningstar, Inc.

PROXY VOTING INFORMATION

A description of the funds’ proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the funds’ website at www.funds.natixis.com; and on the Securities and Exchange Commission’s (SEC’s) website at www.sec.gov. Information regarding how the funds voted proxies relating to portfolio securities during the 12-month period ended June 30, 2009 is available from the funds’ website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

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

NOT FDIC INSURED MAY LOSE VALUE NO BANK  GUARANTEE

11

UNDERSTANDING FUND EXPENSES

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

The first line in the table of each class of fund shares shows the actual account values and actual fund expenses you would have paid on a $1,000 investment in the fund from October 1, 2009 through March 31, 2010. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example $8,600 account value divided by $1,000 = 8.60) and multiply the result by the number in the Expenses Paid During Period column as shown below for your class.

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

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

LOOMIS SAYLES CORE PLUS BOND FUND	BEGINNING ACCOUNT VALUE 10/1/2009	ENDING ACCOUNT VALUE 3/31/2010	EXPENSES PAID DURING  PERIOD* 10/1/2009 – 3/31/2010
Class A
Actual	$1,000.00	$1,043.10	$4.58
Hypothetical (5% return before expenses)	$1,000.00	$1,020.44	$4.53
Class B
Actual	$1,000.00	$1,039.00	$8.39
Hypothetical (5% return before expenses)	$1,000.00	$1,016.70	$8.30
Class C
Actual	$1,000.00	$1,039.30	$8.39
Hypothetical (5% return before expenses)	$1,000.00	$1,016.70	$8.30
Class Y
Actual	$1,000.00	$1,044.20	$3.31
Hypothetical (5% return before expenses)	$1,000.00	$1,021.69	$3.28

* Expenses are equal to the Fund’s annualized expense ratio: 0.90%, 1.65%, 1.65% and 0.65% for Class A, B, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

12

UNDERSTANDING FUND EXPENSES

LOOMIS SAYLES HIGH INCOME FUND	BEGINNING ACCOUNT VALUE 10/1/2009	ENDING ACCOUNT VALUE 3/31/2010	EXPENSES PAID DURING PERIOD* 10/1/2009 – 3/31/2010
Class A
Actual	$1,000.00	$1,112.60	$6.06
Hypothetical (5% return before expenses)	$1,000.00	$1,019.20	$5.79
Class B
Actual	$1,000.00	$1,108.20	$9.99
Hypothetical (5% return before expenses)	$1,000.00	$1,015.46	$9.55
Class C
Actual	$1,000.00	$1,105.90	$9.98
Hypothetical (5% return before expenses)	$1,000.00	$1,015.46	$9.55
Class Y
Actual	$1,000.00	$1,111.70	$4.74
Hypothetical (5% return before expenses)	$1,000.00	$1,020.44	$4.53

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.15%, 1.90%, 1.90% and 0.90% for Class A, B, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

LOOMIS SAYLES INTERNATIONAL BOND FUND	BEGINNING ACCOUNT VALUE 10/1/2009	ENDING ACCOUNT VALUE 3/31/2010	EXPENSES PAID DURING PERIOD* 10/1/2009 – 3/31/2010
Class A
Actual	$1,000.00	$980.20	$5.43
Hypothetical (5% return before expenses)	$1,000.00	$1,019.45	$5.54
Class C
Actual	$1,000.00	$976.80	$9.12
Hypothetical (5% return before expenses)	$1,000.00	$1,015.71	$9.30
Class Y
Actual	$1,000.00	$981.30	$4.20
Hypothetical (5% return before expenses)	$1,000.00	$1,020.69	$4.28

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.10%, 1.85% and 0.85%, for Class A, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

13

UNDERSTANDING FUND EXPENSES

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND	BEGINNING ACCOUNT VALUE 10/1/2009	ENDING ACCOUNT VALUE 3/31/2010	EXPENSES PAID DURING  PERIOD* 10/1/2010 – 3/31/2010
Class A
Actual	$1,000.00	$1,031.80	$4.56
Hypothetical (5% return before expenses)	$1,000.00	$1,020.44	$4.53
Class B
Actual	$1,000.00	$1,028.00	$8.34
Hypothetical (5% return before expenses)	$1,000.00	$1,016.70	$8.30
Class C
Actual	$1,000.00	$1,027.90	$8.34
Hypothetical (5% return before expenses)	$1,000.00	$1,016.70	$8.30
Class Y
Actual	$1,000.00	$1,033.00	$3.29
Hypothetical (5% return before expenses)	$1,000.00	$1,021.69	$3.28

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursment): 0.90%, 1.65%, 1.65% and 0.65%, for Class A, B, C and Y, respectively, multiplied by the average account value over the period multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

LOOMIS SAYLES STRATEGIC INCOME FUND	BEGINNING ACCOUNT VALUE 10/1/2009	ENDING ACCOUNT VALUE 3/31/2010		EXPENSES PAID DURING PERIOD* 10/1/2009 – 3/31/2010
Class A
Actual	$1,000.00	$1,098.60		$5.02	1
Hypothetical (5% return before expenses)	$1,000.00	$1,020.14		$4.84	*
Class B
Actual	$1,000.00	$1,095.40		$8.93	1
Hypothetical (5% return before expenses)	$1,000.00	$1,016.40		$8.60	*
Class C
Actual	$1,000.00	$1,095.50		$8.93	1
Hypothetical (5% return before expenses)	$1,000.00	$1,016.40		$8.60	*
Class Y
Actual	$1,000.00	$1,100.00		$3.72	1
Hypothetical (5% return before expenses)	$1,000.00	$1,021.39		$3.58	*
Admin Class
Actual	$1,000.00	$1,038.30	2	$1.98	2
Hypothetical (5% return before expenses)	$1,000.00	$1,001.86	*	$6.09	*

* Hypothetical expenses are equal to the Fund’s annualized expense ratio: 0.96%, 1.71%, 1.71%, 0.71% and 1.22% for Class A, B, C, Y and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (182), divided by 365 (to reflect the half-year period).

¹ Actual expenses for Class A, B, C and Y are equal to the Fund’s annualized expense ratio: 0.96%, 1.71%, 1.71% and 0.71%, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (182), divided by 365 (to reflect the half-year period).

² Admin Class commenced operations on February 1, 2010. Actual expenses are equal to Fund’s annualized expense ratio: 1.22% for the Admin Class, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal period (58), divided by 365 (to reflect the partial period).

14

LOOMIS SAYLES CORE PLUS BOND FUND — PORTFOLIO OF INVESTMENTS

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 98.1% of Net Assets
		ABS Car Loan — 2.0%
$	1,140,000	AESOP Funding II LLC, Series 2010-2A, Class A, 144A, 3.630%, 8/20/2014	$	1,139,886
	570,000	Centre Point Funding LLC, Series 2010-1A, Class 1, 144A, 5.430%, 7/20/2016		570,112
	3,865,000	Chrysler Financial Lease Trust, Series 2010-A, Class B, 144A, 3.460%, 9/16/2013		3,862,059
	790,000	Hertz Vehicle Financing LLC, Series 2009-2A, Class A1, 144A, 4.260%, 3/25/2014		813,166
				6,385,223
		ABS Home Equity — 0.2%
	885,399	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 4.615%, 2/25/2035		713,642
		Aerospace & Defense — 0.8%
	2,495,000	Bombardier, Inc., 144A, 7.500%, 3/15/2018		2,601,037
		Automotive — 1.2%
	1,990,000	Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		2,059,125
	975,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		1,027,282
	830,000	Lear Corp., 7.875%, 3/15/2018		839,338
				3,925,745
		Banking — 5.8%
	1,365,000	Bear Stearns Cos., Inc. (The), 6.400%, 10/02/2017		1,507,937
	605,000	Citigroup, Inc., 6.125%, 5/15/2018		618,182
	2,135,000	Citigroup, Inc., 6.500%, 8/19/2013		2,301,556
	1,380,000	Citigroup, Inc., 8.125%, 7/15/2039		1,593,076
	625,000	Goldman Sachs Group, Inc. (The), 5.300%, 2/14/2012		665,257
	790,000	JPMorgan Chase & Co., 6.000%, 1/15/2018		857,705
	2,530,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018		2,726,503
	960,000	Morgan Stanley, 4.750%, 4/01/2014		980,234
	615,000	Morgan Stanley, 5.375%, 10/15/2015		638,767
	100,000	Morgan Stanley, 6.750%, 4/15/2011		105,565
	1,620,000	Morgan Stanley, Series F, GMTN, 6.625%, 4/01/2018		1,727,858
	835,000	Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		853,987
	920,000	Nomura Holdings, Inc., 5.000%, 3/04/2015		940,438
	3,155,000	Royal Bank of Scotland PLC (The), 4.875%, 3/16/2015		3,154,224
				18,671,289
		Building Materials — 1.3%
	2,520,000	Holcim Capital Corp. Ltd., 144A, 6.875%, 9/29/2039		2,654,586

Principal Amount (‡)		Description	Value (†)
		Building Materials — continued
$	815,000	Owens Corning, Inc., 7.000%, 12/01/2036	$	798,525
	795,000	USG Corp., 6.300%, 11/15/2016		711,525
				4,164,636
		Chemicals — 1.2%
	1,305,000	Chevron Phillips Chemical Co. LLC, 144A, 8.250%, 6/15/2019		1,557,931
	740,000	LBI Escrow Corp., 144A, 8.000%, 11/01/2017		767,750
	1,330,000	RPM International, Inc., 6.125%, 10/15/2019		1,382,969
				3,708,650
		Commercial Mortgage-Backed Securities — 8.0%
	795,000	Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A2, 5.165%, 9/10/2047		807,517
	850,000	Banc of America Commercial Mortgage, Inc., Series 2006-1, Class A2, 5.334%, 9/10/2045		866,507
	1,305,000	Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A2, 5.634%, 4/10/2049		1,338,686
	2,680,000	Banc of America Commercial Mortgage, Inc., Series 2007-5, Class A4, 5.492%, 2/10/2051		2,544,450
	1,245,000	Bear Stearns Commercial Mortgage Securities, Inc., Series 2005-PW10, Class A2, 5.270%, 12/11/2040		1,263,234
	1,200,000	Bear Stearns Commercial Mortgage Securities, Inc., Series 2007-PW16, Class A2, 5.856%, 6/11/2040(c)		1,244,520
	145,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044		139,706
	690,000	Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.888%, 12/10/2049(c)		687,127
	1,000,000	Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.298%, 12/10/2049(c)		1,007,673
	710,000	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD2, Class A2, 5.408%, 1/15/2046		723,170
	1,793,914	Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A2, 5.117%, 4/10/2037		1,825,193
	960,000	Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4, 6.085%, 7/10/2038(c)		978,640
	2,839,000	GS Mortgage Securities Corp. II, Series 2006-GG6, Class A4, 5.553%, 4/10/2038		2,853,286
	1,140,000	GS Mortgage Securities Corp. II, Series 2006-GG8, Class A4, 5.560%, 11/10/2039		1,128,582
	1,375,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A4, 6.064%, 4/15/2045(c)		1,419,518
	850,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-CB18, Class A4, 5.440%, 6/12/2047		830,785

See accompanying notes to financial statements.

15

LOOMIS SAYLES CORE PLUS BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Commercial Mortgage-Backed Securities — continued
$	1,710,000	LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A3, 4.647%, 7/15/2030	$	1,745,728
	900,000	Morgan Stanley Capital I, Series 2007-T27, Class A4, 5.802%, 6/11/2042(c)		930,678
	1,175,000	Morgan Stanley Capital I, Series 2008-T29, Class A4, 6.458%, 1/11/2043(c)		1,237,698
	2,070,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.308%, 11/15/2048		2,055,156
				25,627,854
		Construction Machinery — 0.1%
	470,000	Oshkosh Corp., 144A, 8.250%, 3/01/2017		485,275
		Consumer Products — 0.2%
	255,000	Whirlpool Corp., 8.000%, 5/01/2012		280,261
	250,000	Whirlpool Corp., MTN, 8.600%, 5/01/2014		290,134
				570,395
		Distributors — 0.3%
	714,000	EQT Corp., 8.125%, 6/01/2019		848,260
		Diversified Manufacturing — 0.9%
	1,200,000	Crane Co., 6.550%, 11/15/2036(d)		1,174,762
	1,580,000	Hutchison Whampoa International Ltd., 144A, 5.750%, 9/11/2019		1,640,125
				2,814,887
		Electric — 2.0%
	290,000	AES Corp. (The), 7.750%, 10/15/2015		295,075
	570,000	AES Corp. (The), 8.000%, 10/15/2017		578,550
	1,765,000	AES Corp. (The), 8.000%, 6/01/2020		1,758,381
	110,000	CMS Energy Corp., 8.750%, 6/15/2019		124,200
	630,000	Exelon Generation Co. LLC, 5.200%, 10/01/2019		636,433
	690,000	IPALCO Enterprises, Inc., 144A, 7.250%, 4/01/2016		715,875
	1,270,000	TransAlta Corp., 4.750%, 1/15/2015		1,311,515
	1,100,000	TransAlta Corp., 6.500%, 3/15/2040		1,087,499
				6,507,528
		Food & Beverage — 2.8%
	560,000	Anheuser-Busch Cos., Inc., 4.500%, 4/01/2018		555,182
	2,235,000	Del Monte Corp., 144A, 7.500%, 10/15/2019		2,343,956
	1,420,000	Dr Pepper Snapple Group, Inc., 6.820%, 5/01/2018		1,622,221
	915,000	Kraft Foods, Inc., 6.125%, 8/23/2018		997,129
	1,510,000	Kraft Foods, Inc., 6.500%, 2/09/2040		1,564,784

Principal Amount (‡)		Description	Value (†)
		Food & Beverage — continued
$	1,410,000	Smithfield Foods, Inc., 144A, 10.000%, 7/15/2014	$	1,572,150
	255,000	TreeHouse Foods, Inc., 7.750%, 3/01/2018		264,563
				8,919,985
		Government Guaranteed — 1.3%
	95,000,000	Japan Finance Organization for Municipal Enterprises, 1.350%, 11/26/2013 (JPY)		1,050,020
	296,000,000	Japan Finance Organization for Municipal Enterprises, 1.550%, 2/21/2012 (JPY)		3,235,268
				4,285,288
		Government Owned - No Guarantee — 1.4%
	2,360,000	Petrobras International Finance Co., 6.875%, 1/20/2040		2,435,957
	1,375,000	Qtel International Finance Ltd., 144A, 7.875%, 6/10/2019		1,589,137
	545,000	Taqa Abu Dhabi National Energy, 144A, 6.250%, 9/16/2019		547,944
				4,573,038
		Health Insurance — 0.7%
	2,005,000	WellPoint, Inc., 7.000%, 2/15/2019		2,273,642
		Healthcare — 1.6%
	190,000	Express Scripts, Inc., 7.250%, 6/15/2019		219,961
	575,000	HCA, Inc., 7.500%, 12/15/2023		526,125
	935,000	HCA, Inc., 9.125%, 11/15/2014		987,594
	485,000	Hospira, Inc., 6.050%, 3/30/2017		520,925
	2,050,000	Life Technologies Corp., 6.000%, 3/01/2020		2,098,942
	670,000	Medco Health Solutions, 7.250%, 8/15/2013		757,531
				5,111,078
		Hybrid ARMs — 0.6%
	882,747	FHLMC, 5.937%, 11/01/2036(c)		922,673
	863,352	FNMA, 6.015%, 2/01/2037(c)		911,034
				1,833,707
		Independent Energy — 0.8%
	2,400,000	XTO Energy, Inc., 6.375%, 6/15/2038		2,687,690
		Industrial Other — 0.3%
	760,000	Timken Co. (The), 6.000%, 9/15/2014		808,238
		Life Insurance — 0.5%
	1,575,000	Aflac, Inc., 6.900%, 12/17/2039		1,623,140
		Lodging — 0.3%
	500,000	Royal Caribbean Cruises Ltd., 7.250%, 6/15/2016		493,750

See accompanying notes to financial statements.

16

LOOMIS SAYLES CORE PLUS BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Lodging — continued
$	510,000	Royal Caribbean Cruises Ltd., 11.875%, 7/15/2015	$	600,525
				1,094,275
		Media Cable — 2.0%
	995,000	Comcast Corp., 6.450%, 3/15/2037		1,013,274
	1,770,000	Comcast Corp., 6.950%, 8/15/2037		1,914,818
	410,000	Cox Communications, Inc., 5.450%, 12/15/2014		443,188
	755,000	Cox Communications, Inc., 6.750%, 3/15/2011		790,476
	1,760,000	Time Warner Cable, Inc., 8.250%, 4/01/2019		2,129,755
				6,291,511
		Media Non-Cable — 0.6%
	1,900,000	Inmarsat Finance PLC, 144A, 7.375%, 12/01/2017		1,976,000
		Metals & Mining — 1.4%
	1,275,000	ArcelorMittal, 7.000%, 10/15/2039		1,309,402
	1,510,000	ArcelorMittal, 9.850%, 6/01/2019		1,919,205
	710,000	United States Steel Corp., 6.650%, 6/01/2037		610,600
	640,000	United States Steel Corp., 7.375%, 4/01/2020		641,600
				4,480,807
		Mortgage Related — 13.5%
	642,213	FHLMC, 4.000%, 7/01/2019		665,510
	1,423,840	FHLMC, 4.500%, 12/01/2034		1,438,480
	310,961	FHLMC, 5.000%, 11/01/2018		330,503
	858,808	FHLMC 5.500%, with various maturities in 2018(e)		927,621
	123,299	FHLMC, 6.000%, 6/01/2035		133,897
	538,187	FNMA, 4.000%, 6/01/2019		557,627
	5,211,366	FNMA 4.500%, with various maturities from 2019 to 2035(e)		5,357,299
	5,748,951	FNMA, 5.500%, with various maturities from 2018 to 2036(e)(f)		6,115,945
	5,229,512	FNMA 6.000%, with various maturities from 2016 to 2039(e)		5,586,491
	1,130,922	FNMA 6.500%, with various maturities from 2029 to 2036(e)		1,234,993
	145,745	FNMA 7.000%, with various maturities in 2030(e)		163,660
	165,198	FNMA 7.500%, with various maturities from 2024 to 2032(e)		186,994
	1,280,000	FNMA (TBA), 6.000%, 1/01/2036(b)		1,359,601
	1,735,000	FNMA (TBA), 6.500%, 4/01/2035(b)		1,880,306

Principal Amount (‡)		Description	Value (†)
		Mortgage Related — continued
$	4,089,553	GNMA 5.000%, with various maturities from 2035 to 2038(e)	$	4,264,648
	9,603,804	GNMA 5.500%, with various maturities from 2034 to 2039(e)		10,183,218
	1,738,448	GNMA 6.000%, with various maturities from 2029 to 2037(e)		1,863,783
	376,811	GNMA 6.500%, with various maturities from 2028 to 2032(e)		413,457
	269,105	GNMA 7.000%, with various maturities from 2025 to 2029(e)		301,478
	102,918	GNMA 7.500%, with various maturities from 2025 to 2030(e)		116,242
	58,202	GNMA, 8.000%, 11/15/2029		67,036
	90,576	GNMA 8.500%, with various maturities from 2017 to 2023(e)		103,596
	15,872	GNMA 9.000%, with various maturities in 2016(e)		17,727
	32,030	GNMA 11.500%, with various maturities from 2013 to 2015(e)		35,861
				43,305,973
		Non-Captive Consumer — 1.0%
	735,000	HSBC Finance Corp., 7.000%, 5/15/2012		801,539
	325,000	SLM Corp., MTN, 5.050%, 11/14/2014		300,750
	350,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		334,376
	30,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		27,316
	120,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		99,014
	55,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		54,321
	35,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		33,152
	420,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		324,082
	1,135,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		1,147,895
				3,122,445
		Non-Captive Diversified — 3.8%
	1,275,000	GATX Corp., 4.750%, 5/15/2015		1,265,477
	745,000	General Electric Capital Corp., 5.875%, 1/14/2038		708,308
	4,120,000	General Electric Capital Corp., Series A, GMTN, 6.150%, 8/07/2037		4,028,973
	2,472,000	GMAC, Inc., 6.625%, 5/15/2012		2,496,720
	1,211,000	GMAC, Inc., 8.000%, 11/01/2031		1,156,505
	1,105,000	GMAC, Inc., 144A, 8.300%, 2/12/2015		1,160,250
	465,000	International Lease Finance Corp., 5.000%, 4/15/2010		465,042
	205,000	International Lease Finance Corp., 6.375%, 3/25/2013		200,338

See accompanying notes to financial statements.

17

LOOMIS SAYLES CORE PLUS BOND FUND — PORTFOLIO OF INVESTMENTS (CONTINUED)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Non-Captive Diversified — continued
$	120,000	International Lease Finance Corp., Series R, MTN, 5.300%, 5/01/2012	$	116,552
	40,000	International Lease Finance Corp., Series R, MTN, 5.550%, 9/05/2012		38,956
	200,000	International Lease Finance Corp., Series R, MTN, 5.625%, 9/20/2013		188,655
	285,000	International Lease Finance Corp., Series R, MTN, 5.650%, 6/01/2014		264,140
				12,089,916
		Oil Field Services — 0.9%
	190,000	Nabors Industries, Inc., 6.150%, 2/15/2018		202,408
	730,000	Nabors Industries, Inc., 9.250%, 1/15/2019		908,032
	1,605,000	Parker Drilling Co., 144A, 9.125%, 4/01/2018		1,643,119
				2,753,559
		Packaging — 0.3%
	1,105,000	Ball Corp., 6.750%, 9/15/2020		1,124,337
		Paper — 1.8%
	565,000	Georgia-Pacific Corp., 7.375%, 12/01/2025		562,175
	1,470,000	Georgia-Pacific Corp., 7.750%, 11/15/2029		1,470,000
	735,000	Georgia-Pacific Corp., 8.000%, 1/15/2024		779,100
	365,000	Georgia-Pacific Corp., 8.875%, 5/15/2031		396,025
	1,945,000	International Paper Co., 9.375%, 5/15/2019		2,431,439
				5,638,739
		Pipelines — 0.6%
	830,000	Enterprise Products Operating LLC, 7.550%, 4/15/2038		954,799
	705,000	ONEOK Partners LP, 8.625%, 3/01/2019		870,566
				1,825,365
		Property & Casualty Insurance — 0.2%
	475,000	Willis North America, Inc., 6.200%, 3/28/2017		481,219
	245,000	Willis North America, Inc., 7.000%, 9/29/2019		256,560
				737,779
		Refining — 2.4%
	1,895,000	Coffeyville Resources, 144A, 10.875%, 4/01/2017		1,880,788
	2,720,000	Motiva Enterprises LLC, 144A, 6.850%, 1/15/2040		2,931,189
	1,570,000	Valero Energy Corp., 6.125%, 2/01/2020		1,570,397
	965,000	Valero Energy Corp., 9.375%, 3/15/2019		1,148,867
				7,531,241

Principal Amount (‡)	Description	Value (†)
	Sovereigns — 3.2%
1,230,000(††)	Mexican Fixed Rate Bonds, Series M-10, 7.750%, 12/14/2017 (MXN)	$	10,132,484
	Supranational — 1.5%
439,000,000	European Investment Bank, 1.250%, 9/20/2012 (JPY)		4,803,296
	Technology — 4.2%
1,895,000	Amphenol Corp., 4.750%, 11/15/2014		1,949,366
830,000	Brocade Communications Systems, Inc., 144A, 6.625%, 1/15/2018		844,525
290,000	Brocade Communications Systems, Inc., 144A, 6.875%, 1/15/2020		295,800
745,000	Corning, Inc., 7.250%, 8/15/2036		798,201
440,000	Equifax, Inc., 7.000%, 7/01/2037		469,911
2,760,000	Equinix, Inc., 8.125%, 3/01/2018		2,856,600
1,180,000	Fiserv, Inc., 6.125%, 11/20/2012		1,284,260
215,000	Jabil Circuit, Inc., 7.750%, 7/15/2016		226,287
85,000	Motorola, Inc., 6.500%, 9/01/2025		82,542
485,000	Motorola, Inc., 6.500%, 11/15/2028		455,299
185,000	Motorola, Inc., 6.625%, 11/15/2037		173,625
1,775,000	National Semiconductor Corp., 3.950%, 4/15/2015		1,755,067
279,000	Xerox Corp., 5.500%, 5/15/2012		295,936
1,435,000	Xerox Corp., 6.350%, 5/15/2018		1,554,498
316,000	Xerox Corp., 6.400%, 3/15/2016		346,816
			13,388,733
	Textile — 0.5%
1,515,000	Hanesbrands, Inc., 8.000%, 12/15/2016		1,568,025
	Tobacco — 0.6%
1,995,000	Reynolds American, Inc., 7.250%, 6/15/2037		2,030,527
	Treasuries — 14.9%
4,425,000	Republic of Germany, 4.000%, 4/13/2012 (EUR)		6,339,170
8,162,000	U.S. Treasury Note 0.875%, 12/31/2010		8,193,881
955,000	U.S. Treasury Note, 0.875%, 5/31/2011		959,104
910,000	U.S. Treasury Note, 1.875%, 6/15/2012		924,858
1,000,000	U.S. Treasury Note, 2.625%, 6/30/2014		1,014,766
17,855,000	U.S. Treasury Note, 3.125%, 5/15/2019		17,005,495

See accompanying notes to financial statements.

18

LOOMIS SAYLES CORE PLUS BOND FUND — PORTFOLIO OF INVESTMENTS (CONTINUED)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Treasuries — continued
$	3,545,000	U.S. Treasury Note, 3.250%, 7/31/2016	$	3,581,836
	1,345,000	U.S. Treasury Note, 3.625%, 8/15/2019		1,328,607
	1,555,000	U.S. Treasury Note, 3.625%, 2/15/2020		1,528,517
	1,060,000	U.S. Treasury Note, 3.750%, 11/15/2018		1,068,033
	2,160,000	U.S. Treasury Note 4.375%, 12/15/2010		2,221,679
	3,005,000	U.S. Treasury Note, 4.625%, 2/15/2017		3,274,275
				47,440,221
		Wireless — 3.9%
	2,185,000	America Movil Sab De CV, 144A, 6.125%, 3/30/2040		2,135,160
	1,070,000	American Tower Corp., 4.625%, 4/01/2015		1,100,403
	2,615,000	CC Holdings GS V LLC/Crown Castle GS III Corp., 144A, 7.750%, 5/01/2017		2,850,350
	10,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		9,500
	15,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		13,988
	1,385,000	SK Telecom Co., Ltd., 144A, 6.625%, 7/20/2027		1,459,266
	3,945,000	Sprint Capital Corp., 6.875%, 11/15/2028		3,175,725
	100,000	True Move Co. Ltd., 144A, 10.375%, 8/01/2014		103,500
	1,520,000	True Move Co. Ltd., 144A, 10.750%, 12/16/2013		1,586,500
				12,434,392
		Wirelines — 6.5%
	2,795,000	Axtel SAB de CV, 144A, 9.000%, 9/22/2019		2,850,900
	4,033,000	Embarq Corp., 7.995%, 6/01/2036		4,089,236
	1,575,000	Frontier Communications Corp., 7.875%, 1/15/2027		1,417,500
	1,325,000	New Communications Holdings, Inc., 144A, 7.875%, 4/15/2015		1,361,437
	450,000	New Communications Holdings, Inc., 144A, 8.250%, 4/15/2017		457,875
	210,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		196,350
	1,350,000	Qwest Corp., 6.875%, 9/15/2033		1,302,750
	1,545,000	Qwest Corp., 7.250%, 9/15/2025		1,560,450
	255,000	Qwest Corp., 7.250%, 10/15/2035		246,075
	2,020,000	Qwest Corp., 7.500%, 6/15/2023		2,020,000
	775,000	Qwest Corp., 8.875%, 3/15/2012		848,625
	590,000	Telecom Italia Capital SA, 6.000%, 9/30/2034		523,413

Principal Amount (‡)		Description	Value (†)
$	2,435,000	Telecom Italia Capital SA, 7.200%, 7/18/2036	$	2,458,503
	1,100,000	Telemar Norte Leste SA, 144A, 9.500%, 4/23/2019		1,306,250
				20,639,364
		Total Bonds and Notes (Identified Cost $297,826,205)		313,549,216
Shares
	Preferred Stocks — 0.2%
		Banking — 0.1%
	532	GMAC, Inc., Series G, 144A, 7.000%		405,517
		Thrifts & Mortgage Finance — 0.1%
	256,000	Federal National Mortgage Association, 6.750%(g)(h)		238,080
	4,200	Federal National Mortgage Association, (fixed rate to 12/13/2010, variable rate thereafter), 8.250%(g)(h)		5,334
				243,414
		Total Preferred Stocks (Identified Cost $1,717,443)		648,931
Principal Amount (‡)
	Short-Term Investments — 3.0%
$	8,079,061	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2010 at 0.000% to be repurchased at $8,079,061 on 4/01/2010, collateralized by $7,700,000 Federal National Mortgage Association, 5.125% due 4/15/2011 valued at $8,242,850, including accrued interest (Note 2 of Notes to Financial Statements)		8,079,061
	1,590,000	U.S. Treasury Bill, 0.101%, 6/17/2010(i)		1,589,507
		Total Short-Term Investments (Identified Cost $9,668,502)		9,668,568
		Total Investments — 101.3% (Identified Cost $309,212,150)(a)		323,866,715
		Other assets less liabilities—(1.3)%		(4,269,157	)
		Net Assets — 100.0%	$	319,597,558
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 100.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.): At March 31, 2010, the net unrealized appreciation on investments based on a cost of $309,445,799 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	16,968,289
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(2,547,373	)
		Net unrealized appreciation	$	14,420,916
	(b)	Delayed delivery. See Note 2 of Notes to Financial Statements.
	(c)	Variable rate security. Rate as of March 31, 2010 is disclosed.
	(d)	Illiquid security. At March 31, 2010, the value of this security amounted to $1,174,762 or 0.4% of net assets.

See accompanying notes to financial statements.

19

LOOMIS SAYLES CORE PLUS BOND FUND — PORTFOLIO OF INVESTMENTS (CONTINUED)

Investments as of March 31, 2010 (Unaudited)

(e)	The Fund’s investment in mortgage related securities of the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association and Government National Mortgage Association are interests in separate pools of mortgages. All separate investments in securities of each issuer which have the same coupon rate have been aggregated for the purpose of presentation in the Portfolio of Investments.
(f)	All or a portion of this security has been segregated to cover collateral requirements on TBA obligations.
(g)	Non-income producing security.
(h)	Future dividend payments have been eliminated as the issuer has been placed in conservatorship.
(i)	Interest rate represents discount rate at time of purchase; not a coupon rate.
144A	Securities 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 March 31, 2010, the value of these securities amounted to $48,109,415 or 15.1% of net assets.
ABS	Asset-Backed Securities
ARMs	Adjustable Rate Mortgages
FHLMC	Federal Home Loan Mortgage Corporation
FNMA	Federal National Mortgage Association
GMTN	Global Medium Term Note
GNMA	Government National Mortgage Association
MTN	Medium Term Note
TBA	To Be Announced
EUR	Euro
JPY	Japanese Yen
MXN	Mexican Peso

Industry Summary at March 31, 2010 (Unaudited)

Treasuries	14.9	%
Mortgage Related	13.5
Commercial Mortgage-Backed Securities	8.0
Wirelines	6.5
Banking	5.9
Technology	4.2
Wireless	3.9
Non-Captive Diversified	3.8
Sovereigns	3.2
Food & Beverage	2.8
Refining	2.4
Electric	2.0
ABS Car Loan	2.0
Media Cable	2.0
Other Investments, less than 2% each	23.2
Short-Term Investments	3.0
Total Investments	101.3
Other assets less liabilities	(1.3	)
Net Assets	100.0	%

See accompanying notes to financial statements.

20

LOOMIS SAYLES HIGH INCOME FUND — PORTFOLIO OF INVESTMENTS

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 84.4% of Net Assets
	Non-Convertible Bonds — 66.2%
		ABS Car Loan — 0.3%
$	105,000	Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.750%, 5/15/2016	$	102,900
	315,000	Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 144A, 9.625%, 3/15/2018		329,175
				432,075
		ABS Home Equity — 1.6%
	700,000	Asset Backed Funding Certificates, Series 2006-HE1, Class A2B, 0.356%, 1/25/2037(b)		340,296
	225,000	Bear Stearns Asset Backed Securities Trust, Series 2004-HE7, Class M2, 1.396%, 8/25/2034(b)		137,685
	247,416	Countrywide Asset-Backed Certificates, Series 2004-6, Class M1, 0.846%, 10/25/2034(b)		155,131
	650,000	Fremont Home Loan Trust, Series 2004-D, Class M2, 0.846%, 11/25/2034(b)		397,464
	725,000	GSAMP Trust, Series 2006-HE5, Class A2C, 0.396%, 8/25/2036(b)		283,091
	150,000	Park Place Securities, Inc., Series 2004-WCW2, Class M2, 0.896%, 10/25/2034(b)		84,204
	1,000,000	Residential Asset Mortgage Products, Inc., Series 2006-RZ5, Class A2, 0.426%, 8/25/2046(b)		827,211
				2,225,082
		Airlines — 1.3%
	37,277	Continental Airlines Pass Through Trust, Series 1997-4, Class 4B, 6.900%, 7/02/2018		35,972
	302,009	Continental Airlines Pass Through Trust, Series 2000-2, Class A-1, 7.707%, 10/02/2022		302,009
	514,974	Continental Airlines Pass Through Trust, Series 2001-1, Class B, 7.373%, 6/15/2017		486,651
	180,000	Continental Airlines Pass Through Trust, Series 2007-1, Class B, 6.903%, 4/19/2022		163,800
	745,000	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		800,875
				1,789,307
		Automotive — 2.1%
	450,000	FCE Bank PLC, EMTN, 7.875%, 2/15/2011, (GBP)		697,352
	420,000	Ford Motor Co., 6.375%, 2/01/2029		341,250
	1,220,000	Ford Motor Co., 6.625%, 10/01/2028		1,024,800
	65,000	Ford Motor Co., 6.625%, 2/15/2028		54,600
	40,000	Ford Motor Co., 7.500%, 8/01/2026		35,500
	150,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		158,043
	635,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		547,687
				2,859,232

Principal Amount (‡)	Description	Value (†)
	Banking — 0.9%
12,176,250,000	JPMorgan Chase Bank NA, EMTN, 144A, Zero Coupon, 10/17/2011, (IDR)	$	1,212,072
	Building Materials — 0.9%
50,000	Masco Corp., 6.500%, 8/15/2032		42,915
345,000	Masco Corp., 7.750%, 8/01/2029		329,476
785,000	USG Corp., 6.300%, 11/15/2016		702,575
75,000	USG Corp., 9.500%, 1/15/2018		75,844
65,000	USG Corp., 144A, 9.750%, 8/01/2014		68,900
			1,219,710
	Chemicals — 1.3%
855,000	Hercules, Inc., Subordinated Note, 6.500%, 6/30/2029		684,000
450,000	LBI Escrow Corp., 144A, 8.000%, 11/01/2017		466,875
680,000	Reichhold Industries, Inc., 144A, 9.000%, 8/15/2014		644,300
			1,795,175
	Collateralized Mortgage Obligations — 1.9%
450,005	Adjustable Rate Mortgage Trust, Series 2005-10, Class 5A1, 0.506%, 1/25/2036(b)		262,076
335,247	GSR Mortgage Loan Trust, Series 2005-AR7, Class 2A1, 3.399%, 11/25/2035(b)		285,094
553,112	Impac CMB Trust, Series 2005-3, Class A1, 0.486%, 8/25/2035(b)		362,609
714,179	Lehman Mortgage Trust, Series 2005-3, Class 1A6, 0.746%, 1/25/2036(b)		449,828
588,266	Lehman Mortgage Trust, Series 2006-6, Class 5A1, 0.746%, 12/25/2036(b)		425,234
715,484	Lehman XS Trust, Series 2007-10H, Class 1A11, 0.366%, 7/25/2037(b)(k)		347,276
347,029	Master Adjustable Rate Mortgages Trust, Series 2005-2, Class 5A1, 3.004%, 3/25/2035(b)		290,766
507,192	Residential Accredit Loans, Inc., Series 2005-QA13, Class 2A1, 5.794%, 12/25/2035(b)		268,504
			2,691,387
	Commercial Mortgage-Backed Securities — 0.6%
100,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044		96,349
100,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A4, 5.998%, 9/15/2039(b)		90,955
520,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class A4, 6.006%, 6/15/2049(b)		498,627
100,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3, 5.420%, 1/15/2049		96,335
			782,266
	Construction Machinery — 0.9%
100,000	Oshkosh Corp., 144A, 8.250%, 3/01/2017		103,250

See accompanying notes to financial statements.

21

LOOMIS SAYLES HIGH INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Construction Machinery — continued
$	985,000	RSC Equipment Rental, Inc., 9.500%, 12/01/2014	$	975,150
	15,000	United Rentals North America, Inc., 7.750%, 11/15/2013		14,400
	170,000	Urbi Desarrollos Urbanos SAB de CV, 144A, 9.500%, 1/21/2020		184,025
				1,276,825
		Consumer Products — 0.7%
	1,085,000	Acco Brands Corp., 7.625%, 8/15/2015		1,015,831
		Electric — 2.6%
	35,000	AES Corp. (The), 8.000%, 10/15/2017		35,525
	209,522	AES Ironwood LLC, 8.857%, 11/30/2025		205,331
	22,648	AES Red Oak LLC, Series A, 8.540%, 11/30/2019		23,158
	375,000	Dynegy Holdings, Inc., 7.125%, 5/15/2018		266,250
	180,000	Dynegy Holdings, Inc., 7.625%, 10/15/2026		115,200
	815,000	Dynegy Holdings, Inc., 7.750%, 6/01/2019		615,325
	2,230,000	Edison Mission Energy, 7.625%, 5/15/2027		1,427,200
	140,000	NGC Corp. Capital Trust I, Series B, 8.316%, 6/01/2027		72,800
	195,000	TXU Corp., Series P, 5.550%, 11/15/2014		142,350
	1,015,000	TXU Corp., Series Q, 6.500%, 11/15/2024		527,800
	370,000	TXU Corp., Series R, 6.550%, 11/15/2034		190,550
				3,621,489
		Gaming — 0.1%
	185,000	MGM MIRAGE, 144A, 9.000%, 3/15/2020		190,550
		Government Owned - No Guarantee — 0.1%
	200,000	DP World Ltd., 144A, 6.850%, 7/02/2037		171,743
		Healthcare — 3.3%
	30,000	Boston Scientific Corp., 7.000%, 11/15/2035		26,989
	165,000	Boston Scientific Corp., 7.375%, 1/15/2040		155,793
	35,000	HCA, Inc., 7.050%, 12/01/2027		29,925
	630,000	HCA, Inc., 7.500%, 12/15/2023		576,450
	700,000	HCA, Inc., 7.500%, 11/06/2033		609,000
	40,000	HCA, Inc., 7.690%, 6/15/2025		37,000
	480,000	HCA, Inc., 8.360%, 4/15/2024		454,800
	670,000	HCA, Inc., MTN, 7.580%, 9/15/2025		606,350

Principal Amount (‡)		Description	Value (†)
		Healthcare — continued
$	1,685,000	HCA, Inc., MTN, 7.750%, 7/15/2036	$	1,482,800
	380,000	Psychiatric Solutions, Inc., 144A, 7.750%, 7/15/2015		387,125
	255,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		207,825
				4,574,057
		Home Construction — 3.6%
	410,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015		416,150
	360,000	KB Home, Guaranteed Note, 5.875%, 1/15/2015		341,100
	1,790,000	KB Home, Guaranteed Note, 7.250%, 6/15/2018		1,713,925
	830,000	Lennar Corp., Series B, 6.500%, 4/15/2016		799,912
	1,325,000	Pulte Group, Inc., 6.000%, 2/15/2035		1,026,875
	495,000	Pulte Group, Inc., 6.375%, 5/15/2033		396,000
	380,000	Pulte Group, Inc., 7.875%, 6/15/2032		347,700
				5,041,662
		Independent Energy — 6.4%
	3,295,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		3,187,913
	790,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		768,275
	620,000	Connacher Oil and Gas Ltd., 144A, 10.250%, 12/15/2015		630,850
	3,127,000	Pioneer Natural Resources Co., 7.200%, 1/15/2028		2,957,110
	340,000	SandRidge Energy, Inc., 144A, 8.000%, 6/01/2018		323,000
	1,065,000	Swift Energy Co., 7.125%, 6/01/2017		1,011,750
				8,878,898
		Industrial Other — 0.5%
	530,000	Corp. Pesquera Inca SAC, 144A, 9.000%, 2/10/2017		535,300
	140,000	Ranhill Labuan Ltd., 144A, 12.500%, 10/26/2011		129,500
				664,800
		Lodging — 1.9%
	2,000,000	Royal Caribbean Cruises Ltd., 7.000%, 6/15/2013		2,025,000
	670,000	Royal Caribbean Cruises Ltd., 7.250%, 6/15/2016		661,625
				2,686,625
		Media Non-Cable — 1.0%
	240,000	Clear Channel Communications, Inc., 4.400%, 5/15/2011		226,200
	415,000	Clear Channel Communications, Inc., 5.000%, 3/15/2012		367,275
	595,000	Clear Channel Communications, Inc., 6.250%, 3/15/2011		575,663

See accompanying notes to financial statements.

22

LOOMIS SAYLES HIGH INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Media Non-Cable — continued
$	20,000	Clear Channel Communications, Inc., 7.650%, 9/15/2010	$	19,925
	175,000	Intelsat Corp., 6.875%, 1/15/2028		150,500
				1,339,563
		Metals & Mining — 0.4%
	80,000	Algoma Acquisition Corp., 144A, 9.875%, 6/15/2015		73,600
	125,000	United States Steel Corp., 7.000%, 2/01/2018		123,125
	315,000	United States Steel Corp., 7.375%, 4/01/2020		315,788
				512,513
		Non-Captive Consumer — 0.6%
	10,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		8,251
	5,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		3,858
	735,000	SLM Corp., Series A, MTN, 6.500%, 6/15/2010, (NZD)(c)		522,208
	245,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		247,784
				782,101
		Non-Captive Diversified — 2.1%
	30,000	CIT Group, Inc., 7.000%, 5/01/2017		27,675
	1,300,000	General Electric Capital Corp., Series A, GMTN, 2.960%, 5/18/2012, (SGD)		931,464
	660,000	General Motors Acceptance Corp. of Canada Ltd., EMTN, 7.125%, 9/13/2011, (AUD)		595,391
	139,000	GMAC, Inc., 8.000%, 11/01/2031		132,745
	1,105,000	International Lease Finance Corp., 144A, 8.750%, 3/15/2017		1,130,451
	80,000	iStar Financial, Inc., 5.850%, 3/15/2017		59,200
	10,000	iStar Financial, Inc., 5.875%, 3/15/2016		7,500
	15,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		12,000
				2,896,426
		Oil Field Services — 1.7%
	490,000	Basic Energy Services, Inc., 7.125%, 4/15/2016		426,300
	380,000	Basic Energy Services, Inc., 11.625%, 8/01/2014		418,000
	350,000	Compagnie Generale de Geophysique-Veritas, 9.500%, 5/15/2016		374,500
	305,000	Complete Production Services, Inc., 8.000%, 12/15/2016		301,950
	30,000	Key Energy Services, Inc., 8.375%, 12/01/2014		30,337
	296,000	North American Energy Partners, Inc., 8.750%, 12/01/2011		296,000
	120,000	Parker Drilling Co., 144A, 9.125%, 4/01/2018		122,850

Principal Amount (‡)		Description	Value (†)
		Oil Field Services — continued
$	385,000	Pioneer Drilling Co., 144A, 9.875%, 3/15/2018	$	381,150
				2,351,087
		Paper — 1.1%
	340,000	Georgia-Pacific Corp., 7.250%, 6/01/2028		336,600
	160,000	Georgia-Pacific Corp., 7.375%, 12/01/2025		159,200
	1,071,000	Georgia-Pacific Corp., 7.750%, 11/15/2029		1,071,000
				1,566,800
		Pipelines — 2.0%
	2,285,000	El Paso Corp., 6.950%, 6/01/2028		2,063,620
	405,000	El Paso Corp., 7.420%, 2/15/2037		357,927
	110,000	El Paso Corp., GMTN, 7.800%, 8/01/2031		108,111
	235,000	El Paso Corp., GMTN, 8.050%, 10/15/2030		234,593
				2,764,251
		Refining — 0.6%
	150,000	Petroplus Finance Ltd., 144A, 6.750%, 5/01/2014		135,000
	745,000	Petroplus Finance Ltd., 144A, 7.000%, 5/01/2017		640,700
				775,700
		REITs — 0.1%
	170,000	Felcor Lodging LP, 10.000%, 10/01/2014		175,100
		Retailers — 2.2%
	250,000	Dillard’s, Inc., 6.625%, 1/15/2018		231,250
	105,000	Dillard’s, Inc., 7.130%, 8/01/2018		98,700
	545,000	J.C. Penney Corp., Inc., Senior Note, 6.375%, 10/15/2036		507,531
	510,000	Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037		469,200
	30,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		27,000
	210,000	Macy’s Retail Holdings, Inc., 6.900%, 4/01/2029		199,500
	1,600,000	Toys R Us, Inc., 7.375%, 10/15/2018		1,536,000
				3,069,181
		Sovereigns — 4.6%
	502,000(††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		4,066,347
	350,000	New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010, (AUD)		326,782
	3,000,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		1,703,827
	4,611,430	Republic of Uruguay, 4.250%, 4/05/2027, (UYU)		236,536
				6,333,492

See accompanying notes to financial statements.

23

LOOMIS SAYLES HIGH INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Supermarkets — 1.3%
$	300,000	American Stores Co., 8.000%, 6/01/2026	$	263,250
	750,000	New Albertson’s, Inc., 7.450%, 8/01/2029		633,750
	190,000	New Albertson’s, Inc., 7.750%, 6/15/2026		161,500
	130,000	New Albertson’s, Inc., 8.000%, 5/01/2031		111,800
	735,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		556,762
				1,727,062
		Supranational — 2.1%
	17,499,000,000	European Investment Bank, EMTN, 144A, Zero Coupon, 4/24/2013, (IDR)		1,570,766
	1,500,000,000	International Bank for Reconstruction & Development, EMTN, 2.300%, 2/26/2013, (KRW)		1,304,388
	13,400,000	International Bank for Reconstruction & Development, 9.500%, 5/27/2010, (ISK)		58,600
				2,933,754
		Technology — 4.2%
	1,090,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		768,450
	1,930,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		1,355,825
	290,000	Amkor Technology, Inc., 9.250%, 6/01/2016		305,950
	1,110,000	First Data Corp., 9.875%, 9/24/2015		957,375
	25,000	Freescale Semiconductor, Inc., 8.875%, 12/15/2014		23,875
	580,000	Motorola, Inc., 6.500%, 9/01/2025		563,227
	1,000,000	Motorola, Inc., 7.500%, 5/15/2025		1,030,502
	340,000	Nortel Networks Capital Corp., 7.875%, 6/15/2026(d)		244,800
	560,000	Nortel Networks Ltd., 6.875%, 9/01/2023(d)		173,600
	355,000	Xerox Capital Trust I, 8.000%, 2/01/2027		348,295
				5,771,899
		Textile — 0.2%
	375,000	Jones Apparel Group, Inc., 6.125%, 11/15/2034		305,625
		Transportation Services — 0.6%
	275,000	APL Ltd., Senior Note, 8.000%, 1/15/2024(c)		205,563
	640,000	Overseas Shipholding Group, Senior Note, 7.500%, 2/15/2024		556,800
				762,363
		Wireless — 3.6%
	1,443,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		1,370,850
	944,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		920,400
	1,080,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		1,007,100

Principal Amount (‡)		Description	Value (†)
		Wireless — continued
$	2,061,000	Sprint Capital Corp., 6.875%, 11/15/2028	$	1,659,105
	55,000	Sprint Capital Corp., 6.900%, 5/01/2019		50,325
	20,000	Sprint Capital Corp., 8.750%, 3/15/2032		18,550
				5,026,330
		Wirelines — 6.8%
	65,000	Cincinnati Bell Telephone Co., 6.300%, 12/01/2028		50,050
	530,000	Cincinnati Bell, Inc., 7.000%, 2/15/2015		515,425
	1,611,153	FairPoint Communications, Inc., 13.125%, 4/02/2018(d)		261,812
	95,000	Frontier Communications Corp., 7.000%, 11/01/2025		79,088
	30,000	Frontier Communications Corp., 7.125%, 3/15/2019		28,500
	1,245,000	Frontier Communications Corp., 7.875%, 1/15/2027		1,120,500
	605,000	Frontier Communications Corp., 9.000%, 8/15/2031		589,875
	80,000	Hawaiian Telcom Communications, Inc., Series B, 12.500%, 5/01/2015(d)		8
	770,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		704,550
	495,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		482,625
	2,860,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		2,717,000
	425,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		397,375
	1,445,000	Qwest Capital Funding, Inc., Guaranteed Note, 6.875%, 7/15/2028		1,293,275
	275,000	Qwest Capital Funding, Inc., Guaranteed Note, 7.625%, 8/03/2021		269,500
	10,000	Qwest Corp., 6.875%, 9/15/2033		9,650
	975,000	Windstream Corp., 7.875%, 11/01/2017		960,375
				9,479,608
		Total Non-Convertible Bonds (Identified Cost $82,713,129)		91,701,641
	Convertible Bonds — 18.2%
		Automotive — 1.9%
	55,000	ArvinMeritor, Inc., (Step to Zero Coupon on 2/15/2019), 4.000%, 2/15/2027(e)		46,406
	1,720,000	Ford Motor Co., 4.250%, 11/15/2016		2,573,550
				2,619,956
		Diversified Manufacturing — 0.3%
	600,000	Trinity Industries, Inc., 3.875%, 6/01/2036		470,250
		Electric — 0.5%
	555,000	CMS Energy Corp., 5.500%, 6/15/2029		662,531

See accompanying notes to financial statements.

24

LOOMIS SAYLES HIGH INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Healthcare — 2.0%
$	1,555,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2013), 2.000%, 12/15/2037(e)	$	1,391,725
	40,000	Life Technologies Corp., 1.500%, 2/15/2024		46,900
	1,488,000	Omnicare, Inc., 3.250%, 12/15/2035		1,259,220
				2,697,845
		Independent Energy — 0.5%
	475,000	Chesapeake Energy Corp., 2.250%, 12/15/2038		345,563
	435,000	Penn Virginia Corp., 4.500%, 11/15/2012		408,900
				754,463
		Metals & Mining — 0.6%
	470,000	Peabody Energy Corp., 4.750%, 12/15/2066		508,775
	245,000	Steel Dynamics, Inc., 5.125%, 6/15/2014		301,350
				810,125
		Pharmaceuticals — 3.5%
	950,000	Human Genome Sciences, Inc., 2.250%, 10/15/2011		1,900,000
	840,000	Human Genome Sciences, Inc., 2.250%, 8/15/2012		1,510,950
	785,000	Kendle International, Inc., 3.375%, 7/15/2012		741,825
	505,000	Valeant Pharmaceuticals International, Subordinated Note, 4.000%, 11/15/2013		703,212
				4,855,987
		REITs — 0.3%
	195,000	ProLogis, 1.875%, 11/15/2037		183,788
	170,000	ProLogis, 2.250%, 4/01/2037		165,325
				349,113
		Technology — 4.7%
	1,130,000	Advanced Micro Devices, Inc., 5.750%, 8/15/2012		1,125,762
	95,000	Advanced Micro Devices, Inc., 6.000%, 5/01/2015		91,081
	1,580,000	Alcatel-Lucent USA, Inc., Series B, 2.875%, 6/15/2025		1,368,675
	15,000	Ciena Corp., 0.250%, 5/01/2013		12,450
	970,000	Ciena Corp., 0.875%, 6/15/2017		654,750
	40,000	Ciena Corp., 4.000%, 3/15/2015		41,400
	1,015,000	Intel Corp., 2.950%, 12/15/2035		995,969
	345,000	JDS Uniphase Corp., 1.000%, 5/15/2026		311,794
	1,330,000	Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		1,226,925
	285,000	Kulicke & Soffa Industries, Inc., 1.000%, 6/30/2010		276,450

Principal Amount (‡)		Description	Value (†)
		Technology — continued
$	188,000	Maxtor Corp., Subordinated Note, 5.750%, 3/01/2012(c)	$	182,360
	280,000	Nortel Networks Corp., 2.125%, 4/15/2014(d)		210,700
				6,498,316
		Textile — 0.1%
	115,000	Iconix Brand Group, Inc., 1.875%, 6/30/2012		107,094
		Wireless — 1.0%
	80,000	NII Holdings, Inc., 2.750%, 8/15/2025		81,200
	1,435,000	NII Holdings, Inc., 3.125%, 6/15/2012		1,354,281
				1,435,481
		Wirelines — 2.8%
	2,235,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		2,058,994
	459,000	Level 3 Communications, Inc., 5.250%, 12/15/2011		446,951
	400,000	Level 3 Communications, Inc., 10.000%, 5/01/2011		411,000
	815,000	Level 3 Communications, Inc., 144A, 7.000%, 3/15/2015(c)		973,925
				3,890,870
		Total Convertible Bonds (Identified Cost $19,143,441)		25,152,031
		Total Bonds and Notes (Identified Cost $101,856,570)		116,853,672
	Bank Loans — 1.1%
		Media Non-Cable — 0.1%
	224,012	Tribune Company, Term Loan X, 5.000%, 6/04/2009(d)(f)(g)		139,447
		Printing & Publishing — 0.3%
	395,696	SuperMedia, Inc., Exit Term Loan, 11.000%, 12/31/2015(g)		372,338
		Technology — 0.0%
	2,407	Sungard Data Systems, Inc., Tranche A, 1.979%, 2/28/2014(g)		2,324
		Wirelines — 0.7%
	763,371	FairPoint Communications, Inc., Initial Term Loan B, 5.000%, 3/31/2015(d)(g)		627,445
	35,904	Hawaiian Telcom Communications, Inc., Tranche C Term Loan, 4.750%, 6/01/2014(g)(h)		25,492
	250,000	Level 3 Financing, Inc., Add on Term Loan, 11.500%, 3/13/2014(g)		272,500
	25,000	Level 3 Financing, Inc., Tranche A Term Loan, 2.501%, 3/13/2014(g)		23,211
				948,648
		Total Bank Loans (Identified Cost $1,341,194)		1,462,757
Shares
	Preferred Stocks — 2.1%
	Convertible Preferred Stocks — 1.9%
		Automotive — 0.0%
	450	Ford Motor Co. Capital Trust II, 6.500%(i)		20,880

See accompanying notes to financial statements.

25

LOOMIS SAYLES HIGH INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Shares	Description	Value (†)
	Capital Markets — 0.8%
26,890	Newell Financial Trust I, 5.250%	$	1,082,322
	Diversified Financial Services — 0.1%
3,732	Sovereign Capital Trust IV, 4.375%		119,424
	Electric Utilities — 0.2%
6,475	AES Trust III, 6.750%		292,589
	Machinery — 0.1%
2,550	United Rentals Trust I, 6.500%		76,819
	Oil, Gas & Consumable Fuels — 0.2%
9,500	El Paso Energy Capital Trust I, 4.750%		355,063
	Semiconductors & Semiconductor Equipment — 0.5%
799	Lucent Technologies Capital Trust I, 7.750%		636,004
	Total Convertible Preferred Stocks (Identified Cost $2,195,580)		2,583,101
Non-Convertible Preferred Stocks — 0.2%
	Banking — 0.2%
274	GMAC, Inc., Series G, 144A, 7.000%		208,857
	Thrifts & Mortgage Finance — 0.0%
300	Federal Home Loan Mortgage Corp., 5.000%(i)(j)		465
7,900	Federal Home Loan Mortgage Corp., 5.570%(i)(j)		6,715
2,850	Federal Home Loan Mortgage Corp., 5.660%(i)(j)		2,391
1,000	Federal Home Loan Mortgage Corp., 5.700%(i)(j)		1,740
1,800	Federal Home Loan Mortgage Corp., 5.790%(i)(j)		2,916
650	Federal Home Loan Mortgage Corp., 5.810%(i)(j)		1,059
1,400	Federal Home Loan Mortgage Corp., 5.900%(i)(j)		1,259
350	Federal Home Loan Mortgage Corp., 6.000%(i)(j)		648
600	Federal Home Loan Mortgage Corp., 6.420%(i)(j)		1,146
1,350	Federal Home Loan Mortgage Corp., 6.550%(i)(j)		1,336
7,400	Federal Home Loan Mortgage Corp., (fixed rate to 12/31/2012, variable rate thereafter), 8.375%(i)(j)		9,398
1,200	Federal National Mortgage Association, 4.750%(i)(j)		1,620
200	Federal National Mortgage Association, 5.125%(i)(j)		302
400	Federal National Mortgage Association, 5.375%(i)(j)		684
350	Federal National Mortgage Association, 5.810%(i)(j)		595
550	Federal National Mortgage Association, 6.750%(i)(j)		512

Shares		Description	Value (†)
	10,250	Federal National Mortgage Association, (fixed rate to 12/13/2010, variable rate thereafter), 8.250%(i)(j)	$	13,017
				45,803
		Total Non-Convertible Preferred Stocks (Identified Cost $634,132)		254,660
		Total Preferred Stocks (Identified Cost $2,829,712)		2,837,761
	Common Stocks — 0.8%
		Biotechnology — 0.2%
	8,147	Vertex Pharmaceuticals, Inc.(i)		332,968
		Chemicals — 0.0%
	1,087	Ashland, Inc.		57,361
		Household Durables — 0.0%
	1,775	KB Home		29,731
		Media — 0.1%
	3,338	Dex One Corp.(i)		93,197
		Oil, Gas & Consumable Fuels — 0.3%
	35,176	El Paso Corp.		381,308
		Pharmaceuticals — 0.2%
	6,875	Merck & Co., Inc.		256,781
		Thrifts & Mortgage Finance — 0.0%
	5,500	Federal Home Loan Mortgage Corp.(i)(j)		6,985
		Total Common Stocks (Identified Cost $1,642,171)		1,158,331
	Closed-End Investment Companies — 0.0%
	2,535	Morgan Stanley Emerging Markets Debt Fund, Inc.		26,466
	2,175	Western Asset High Income Opportunity Fund, Inc.		13,833
		Total Closed-End Investment Companies (Identified Cost $34,947)		40,299
Principal Amount (‡)
	Short-Term Investments — 10.3%
$	13,307	Repurchase Agreement with State Street Corporation, dated 3/31/2010 at 0.000% to be repurchased at $13,307 on 4/01/2010, collateralized by $15,000 U.S. Treasury Bill, due 7/08/2010 valued at $14,994 including accrued interest (Note 2 of Notes to Financial Statements)		13,307
	14,311,357	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2010 at 0.000% to be repurchased at $14,311,357 on 4/01/2010, collateralized by $14,600,000 Federal Home Loan Mortgage Corp., 2.125% due 6/18/2013 valued at $14,600,000 including accrued interest (Note 2 of Notes to Financial Statements)		14,311,357
		Total Short-Term Investments (Identified Cost $14,324,664)		14,324,664
		Total Investments — 98.7% (Identified Cost $122,029,258)(a)		136,677,484
		Other assets less liabilities—1.3%		1,861,578
		Net Assets — 100.0%	$	138,539,062
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 100.

See accompanying notes to financial statements.

26

LOOMIS SAYLES HIGH INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.): At March 31, 2010, the net unrealized appreciation on investments based on a cost of $122,051,259 for federal income tax purposes was as follows:
	Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	18,094,699
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(3,468,474	)
	Net unrealized appreciation	$	14,626,225
(b)	Variable rate security. Rate as of March 31, 2010 is disclosed.
(c)	Illiquid security. At March 31, 2010, the value of these securities amounted to $1,884,056 or 1.4% of net assets.
(d)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
(e)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(f)	Issuer has filed for bankruptcy.
(g)	Variable rate security. Rate shown represents the weighted average rate at March 31, 2010.
(h)	All or a portion of interest payment is paid-in-kind.
(i)	Non-income producing security.
(j)	Future dividend payments have been eliminated as the issuer has been placed in conservatorship.
(k)	The issuer has made partial payments with respect to interest and/or principal. Income is not being accrued.
144A	Securities 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 March 31, 2010, the value of these securities amounted to $10,613,964 or 7.7% of net assets.
ABS	Asset-Backed Securities
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
MTN	Medium Term Note
REITs	Real Estate Investment Trusts
AUD	Australian Dollar
BRL	Brazilian Real
GBP	British Pound
IDR	Indonesian Rupiah
ISK	Icelandic Krona
KRW	South Korean Won
MXN	Mexican Peso
NZD	New Zealand Dollar
SGD	Singapore Dollar
UYU	Uruguayan Peso

Industry Summary at March 31, 2010 (Unaudited)

Wirelines	10.3	%
Technology	8.9
Independent Energy	6.9
Healthcare	5.3
Wireless	4.6
Sovereigns	4.6
Automotive	4.0
Pharmaceuticals	3.7
Home Construction	3.6
Electric	3.1
Retailers	2.2
Supranational	2.1
Non-Captive Diversified	2.1
Pipelines	2.0
Other Investments, less than 2% each	25.0
Short-Term Investments	10.3
Total Investments	98.7
Other assets less liabilities	1.3
Net Assets	100.0	%

See accompanying notes to financial statements.

27

LOOMIS SAYLES INTERNATIONAL BOND FUND — PORTFOLIO OF INVESTMENTS

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)	Description	Value (†)
Bonds and Notes — 96.4% of Net Assets
Non-Convertible Bonds — 95.7%
	Australia — 3.1%
200,000	Australia & New Zealand Banking Group Ltd., EMTN, 2.625%, 11/16/2012, (EUR)	$	273,070
200,000	National Australia Bank Ltd., EMTN, 3.500%, 1/23/2015, (EUR)		275,928
505,000	New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010, (AUD)		471,500
			1,020,498
	Belgium — 3.7%
100,000	Anheuser-Busch InBev NV, EMTN, 6.500%, 6/23/2017, (GBP)		169,462
720,000	Kingdom of Belgium, Series 50, 4.000%, 3/28/2013, (EUR)		1,042,690
			1,212,152
	Brazil — 1.1%
190,279(††)	Brazil Notas do Tesouro Nacional, Series B, 6.000%, 5/15/2015, (BRL)		105,488
100,000	NET Servicos de Comunicacao SA, 144A, 7.500%, 1/27/2020		105,500
250,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		141,986
			352,974
	Canada — 6.3%
225,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		222,147
170,000	Canadian Government, 2.000%, 9/01/2012, (CAD)		167,251
805,000	Canadian Government, 4.500%, 6/01/2015, (CAD)(b)		853,293
165,000	Corus Entertainment, Inc., 144A, 7.250%, 2/10/2017, (CAD)		165,429
200,000	Province of Ontario, EMTN, 4.000%, 12/03/2019, (EUR)		278,011
150,000	Province of Quebec Canada, EMTN, 3.375%, 6/20/2016, (EUR)		205,909
200,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		202,713
			2,094,753
	Cayman Islands — 1.7%
60,000	DASA Finance Corp., 144A, 8.750%, 5/29/2018		64,200
100,000	Fibria Overseas Finance Ltd., 144A, 9.250%, 10/30/2019		114,000
200,000	Hutchison Whampoa Finance Ltd., 4.625%, 9/21/2016, (EUR)		278,210
100,000	Odebrecht Finance Ltd., 144A, 7.000%, 4/21/2020		104,125
			560,535
	Denmark — 1.9%
3,250,000	Denmark Government Bond, 4.000%, 11/15/2015, (DKK)		631,571
	France — 6.3%
100,000	Cie Financiere et Industrielle des Autoroutes, 5.250%, 4/30/2018, (EUR)		147,848

Principal Amount (‡)	Description	Value (†)
	France — continued
375,000	Government of France, 4.000%, 4/25/2013, (EUR)	$	544,126
305,000	Government of France, 4.250%, 10/25/2017, (EUR)		447,283
315,000	Government of France, 5.000%, 10/25/2016, (EUR)		482,274
140,000	Lafarge SA, EMTN, 4.750%, 3/23/2020, (EUR)		181,282
50,000	Lafarge SA, EMTN, 5.375%, 6/26/2017, (EUR)		68,857
70,000	Veolia Environnement, EMTN, 6.125%, 11/25/2033, (EUR)		107,226
100,000	Wendel, 4.875%, 5/26/2016, (EUR)		119,546
			2,098,442
	Germany — 19.3%
100,000	Bertelsmann AG, EMTN, 3.625%, 10/06/2015, (EUR)		132,785
185,000	Kreditanstalt fuer Wiederaufbau, 2.500%, 10/11/2010, (EUR)		252,290
110,000	Landesbank Baden-Wuerttemberg, 3.750%, 2/12/2014, (EUR)		157,451
105,000	Muenchener Hypothekenbank eG, 5.000%, 1/16/2012, (EUR)		150,872
735,000	Republic of Germany, 3.250%, 1/04/2020, (EUR)		1,005,366
315,000	Republic of Germany, 3.750%, 7/04/2013, (EUR)		455,730
1,005,000	Republic of Germany, 3.750%, 1/04/2017, (EUR)(b)		1,451,757
395,000	Republic of Germany, 4.000%, 4/13/2012, (EUR)		565,870
285,000	Republic of Germany, 4.000%, 1/04/2037, (EUR)		393,673
490,000	Republic of Germany, 4.250%, 7/04/2017, (EUR)		727,795
380,000	Republic of Germany, 4.500%, 1/04/2013, (EUR)		557,448
295,000	Republic of Germany, 6.500%, 7/04/2027, (EUR)		539,335
			6,390,372
	India — 0.6%
100,000	Canara Bank Ltd., (fixed rate to 11/28/2016, variable rate thereafter), 6.365%, 11/28/2021		99,542
100,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 144A, 6.375%, 4/30/2022		94,153
			193,695
	Indonesia — 0.3%
100,000	Adaro Indonesia PT, 144A, 7.625%, 10/22/2019		103,880
	Ireland — 0.8%
30,000,000	Depfa ACS Bank, Series 686, EMTN, 1.650%, 12/20/2016, (JPY)		272,960

See accompanying notes to financial statements.

28

LOOMIS SAYLES INTERNATIONAL BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)	Description	Value (†)
	Italy — 1.1%
100,000	Atlantia SpA, Series 5, EMTN, 5.625%, 5/06/2016, (EUR)	$	149,223
150,000	Finmeccanica SpA, EMTN, 4.875%, 3/24/2025, (EUR)		203,361
			352,584
	Japan — 13.6%
83,000,000	Japan Finance Organization for Municipal Enterprises, 1.350%, 11/26/2013, (JPY)		917,386
123,000,000	Japan Government, 0.700%, 6/20/2014, (JPY)		1,328,886
160,000,000	Japan Government, 1.300%, 3/20/2019, (JPY)		1,722,150
35,000,000	Japan Government, 1.400%, 6/20/2011, (JPY)		379,997
160,000	Nomura Holdings, Inc., 6.700%, 3/04/2020		166,050
			4,514,469
	Jersey — 0.2%
50,000	WPP PLC, 6.000%, 4/04/2017, (GBP)		79,535
	Luxembourg — 0.8%
150,000	Enel Finance International SA, EMTN, 5.625%, 8/14/2024, (GBP)		227,971
25,000	Telecom Italia Finance SA, EMTN, 7.750%, 1/24/2033, (EUR)		39,915
			267,886
	Mexico — 2.7%
160,000	Axtel SAB de CV, 144A, 9.000%, 9/22/2019		163,200
85,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015		86,275
10,000(†††)	Mexican Fixed Rate Bonds, Series M-10, 8.000%, 12/17/2015, (MXN)		84,465
41,000(†††)	Mexican Fixed Rate Bonds, Series M-10, 8.500%, 12/13/2018, (MXN)		352,009
10,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		81,003
100,000	Mexichem SAB de CV, 144A, 8.750%, 11/06/2019		108,500
			875,452
	Netherlands — 1.7%
150,000	Kingdom of Netherlands, 5.000%, 7/15/2011, (EUR)		213,586
100,000	Majapahit Holding BV, 144A, 7.750%, 1/20/2020		108,500
150,000	RWE Finance BV, EMTN, 5.500%, 7/06/2022, (GBP)		232,913
			554,999
	Norway — 2.9%
275,000	Norwegian Government, 4.250%, 5/19/2017, (NOK)		48,455
2,625,000	Norwegian Government, 5.000%, 5/15/2015, (NOK)		479,592
2,075,000	Norwegian Government, 6.000%, 5/16/2011, (NOK)		363,237

Principal Amount (‡)	Description	Value (†)
	Norway — continued
310,000	Norwegian Government, 6.500%, 5/15/2013, (NOK)	$	57,972
			949,256
	Poland — 0.2%
80,000	Poland Government International Bond, 3.000%, 9/23/2014, (CHF)		77,883
	Russia — 0.3%
100,000	Lithuania Government International Bond, 144A, 7.375%, 2/11/2020		109,455
	Singapore — 2.1%
130,000	Republic of Singapore, 1.625%, 4/01/2013, (SGD)		95,137
810,000	Republic of Singapore, 2.250%, 7/01/2013, (SGD)		603,938
			699,075
	South Africa — 0.5%
150,000	Edcon Proprietary Ltd., 144A, 3.900%, 6/15/2014, (EUR)(c)		154,481
	Supranational — 4.9%
40,000,000	Asian Development Bank, EMTN, 2.350%, 6/21/2027, (JPY)		442,542
25,000,000	European Investment Bank, 1.250%, 9/20/2012, (JPY)		273,536
44,000,000	European Investment Bank, 1.400%, 6/20/2017, (JPY)		482,503
921,000,000	European Investment Bank, EMTN, 144A, Zero Coupon, 4/24/2013, (IDR)		82,672
30,000,000	Nordic Investment Bank, Series C, GMTN, 1.700%, 4/27/2017, (JPY)		336,075
			1,617,328
	Sweden — 4.8%
2,700,000	Sweden Government Bond, 4.500%, 8/12/2015, (SEK)		411,181
5,100,000	Sweden Government Bond, 5.500%, 10/08/2012, (SEK)		774,429
100,000	Telefonaktiebolaget LM Ericsson, EMTN, 5.375%, 6/27/2017, (EUR)		144,444
200,000	Volvo Treasury AB, Series 225, EMTN, 5.000%, 5/31/2017, (EUR)		266,635
			1,596,689
	Switzerland — 0.4%
100,000	Credit Suisse London, EMTN, 5.125%, 9/18/2017, (EUR)		146,473
	United Arab Emirates — 0.3%
100,000	DP World Ltd., 144A, 6.850%, 7/02/2037		85,871
	United Kingdom — 6.1%
50,000	BAT International Finance PLC, EMTN, 5.375%, 6/29/2017, (EUR)		74,381
100,000	British Sky Broadcasting Group PLC, EMTN, 6.000%, 5/21/2027, (GBP)		155,189
50,000	BSKYB Finance UK PLC, 5.750%, 10/20/2017, (GBP)		80,561
25,000	National Grid PLC, EMTN, 4.375%, 3/10/2020, (EUR)		34,336

See accompanying notes to financial statements.

29

LOOMIS SAYLES INTERNATIONAL BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)	Description	Value (†)
	United Kingdom — continued
75,000	National Grid PLC, EMTN, 5.000%, 7/02/2018, (EUR)	$	109,002
100,000	Rexam PLC, EMTN, 4.375%, 3/15/2013, (EUR)		139,292
50,000	Standard Chartered Bank, Series 17, EMTN, 5.875%, 9/26/2017, (EUR)		73,128
155,000	United Kingdom Treasury, 4.000%, 9/07/2016, (GBP)		246,413
105,000	United Kingdom Treasury, 4.750%, 3/07/2020, (GBP)		169,177
285,000	United Kingdom Treasury, 5.000%, 3/07/2025, (GBP)		462,718
105,000	United Kingdom Treasury, 5.250%, 6/07/2012, (GBP)		172,715
100,000	Virgin Media Secured Finance PLC, 144A, 7.000%, 1/15/2018, (GBP)		154,975
100,000	Vodafone Group PLC, Series 25, EMTN, 5.375%, 6/06/2022, (EUR)		145,292
			2,017,179
	United States — 8.0%
80,000	Ahold Finance USA, Inc., EMTN, 6.500%, 3/14/2017, (GBP)		132,251
50,000	Alcoa, Inc., 6.750%, 1/15/2028		46,251
100,000	BA Credit Card Trust, Series 04A1, 4.500%, 6/17/2016, (EUR)		139,529
165,000	Ball Corp., 6.750%, 9/15/2020		167,888
50,000	Cargill, Inc., EMTN, 5.375%, 3/02/2037, (GBP)		67,807
100,000	Citibank Credit Card Issuance Trust, Series 2001-A4, Class A4, 5.375%, 4/10/2013, (EUR)		137,972
15,000,000	Citigroup, Inc., 2.400%, 10/31/2025, (JPY)		125,785
100,000	Goldman Sachs Group, Inc. (The), 6.875%, 1/18/2038, (GBP)		161,040
55,000	HCA, Inc., 5.750%, 3/15/2014		51,906
45,000	HCA, Inc., 8.360%, 4/15/2024		42,638
200,000	HSBC Finance Corp., EMTN, 4.500%, 6/14/2016, (EUR)		280,362
70,000	IPALCO Enterprises, Inc., 144A, 7.250%, 4/01/2016		72,625
955,000,000	JPMorgan Chase Bank NA, EMTN, 144A, Zero Coupon, 10/17/2011, (IDR)		95,064
150,000	Kraft Foods, Inc., 6.250%, 3/20/2015, (EUR)		229,057
100,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		128,601
95,000	Morgan Stanley, 5.375%, 11/14/2013, (GBP)		152,236
75,000	Motorola, Inc., 6.625%, 11/15/2037		70,388
50,000	Owens Brockway Glass Container, Inc., 6.750%, 12/01/2014, (EUR)		68,883
100,000	SLM Corp., Series 7, EMTN, 4.750%, 3/17/2014, (EUR)		125,273

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	70,000	SLM Corp., Series A, MTN, 4.500%, 7/26/2010	$	70,322
	84,000	Sprint Capital Corp., 8.375%, 3/15/2012		87,360
	100,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		133,235
	50,000	Wells Fargo & Co., 4.625%, 11/02/2035, (GBP)		66,899
				2,653,372
		Total Non-Convertible Bonds (Identified Cost $31,968,799)		31,683,819
	Convertible Bonds — 0.7%
		United States — 0.7%
	190,000	Advanced Micro Devices, Inc., 6.000%, 5/01/2015		182,162
	50,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2013), 2.000%, 12/15/2037(d)		44,750
		Total Convertible Bonds (Identified Cost $214,779)		226,912
		Total Bonds and Notes (Identified Cost $32,183,578)		31,910,731
	Short-Term Investments — 1.2%
	391,292	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2010 at 0.000% to be repurchased at $391,292 on 4/01/2010, collateralized by $400,000 Federal Home Loan Mortgage Corp., 2.000% due 3/29/2013 valued at $400,500 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $391,292)		391,292
		Total Investments — 97.6% (Identified Cost $32,574,870)(a)		32,302,023
		Other assets less liabilities—2.4%		808,300
		Net Assets — 100.0%	$	33,110,323
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Security held in units. One unit represents a principal amount of 1,000. Amount shown represents principal amount including inflation adjustments.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.):
		At March 31, 2010, the net unrealized depreciation on investments based on a cost of $32,657,582 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	712,182
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(1,067,741	)
		Net unrealized depreciation	$	(355,559	)
	(b)	All or a portion of this security is held as collateral for open forward foreign currency contracts.
	(c)	Variable rate security. Rate as of March 31, 2010 is disclosed.

See accompanying notes to financial statements.

30

LOOMIS SAYLES INTERNATIONAL BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

(d)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
144A	Securities 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 March 31, 2010, the value of these securities amounted to $1,886,630 or 5.7% of net assets.
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
MTN	Medium Term Note
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CHF	Swiss Franc
DKK	Danish Krone
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
JPY	Japanese Yen
MXN	Mexican Peso
NOK	Norwegian Krone
SEK	Swedish Krona
SGD	Singapore Dollar

At March 31, 2010, the Fund had the following open forward foreign currency contracts:

Contract to Buy/Sell	Delivery Date	Currency	Units	Notional Value		Unrealized Appreciation (Depreciation)
Buy1	11/16/2010	Chinese Renminbi	2,350,000	$	345,444	$	(10,122	)
Buy2	6/16/2010	Euro	507,000		684,810		(3,645	)
Sell2	6/16/2010	Euro	383,000		517,322		10,084
Buy3	9/23/2010	Indian Rupee	15,000,000		329,165		1,940
Buy4	6/16/2010	Japanese Yen	100,300,000		1,073,258		(35,770	)
Buy4	9/22/2010	Malaysian Ringgit	1,100,000		334,022		2,596
Buy3	6/14/2010	South Korean Won	355,000,000		312,930		938
Buy5	6/14/2010	South Korean Won	720,000,000		634,675		1,819
Buy2	6/14/2010	South Korean Won	770,000,000		678,749		1,945
Total						$	(30,215	)

¹ Counterparty is Morgan Stanley.

² Counterparty is Credit Suisse.

³ Counterparty is UBS.

⁴ Counterparty is JPMorgan Chase.

⁵ Counterparty is Barclays Bank PLC.

Industry Summary at March 31, 2010 (Unaudited)

Treasuries	52.5	%
Banking	7.4
Supranational	4.9
Sovereigns	4.3
Government Guaranteed	3.5
Media Cable	2.1
Other Investments, less than 2% each	21.7
Short-Term Investments	1.2
Total Investments	97.6
Other assets less liabilities (including open forward foreign currency contracts)	2.4
Net Assets	100.0	%

Currency Exposure at March 31, 2010 as a Percentage of Net Assets (Unaudited)

Euro	42.2	%
Japanese Yen	19.0
United States Dollar	8.3
British Pound	8.3
Canadian Dollar	4.9
Swedish Krona	3.6
Norwegian Krone	2.9
Singapore Dollar	2.1
Other, less than 2% each	6.3
Total Investments	97.6
Other assets less liabilities (including open forward foreign currency contracts)	2.4
Net Assets	100.0	%

See accompanying notes to financial statements.

31

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND — 

PORTFOLIO OF INVESTMENTS

Investments as of March 31, 2010 (Unaudited)

Principal Amount		Description	Value (†)
	Bonds and Notes — 96.2% of Net Assets
		ABS Car Loan — 3.1%
$	1,593,178	ARI Fleet Lease Trust, Series 2010-A, Class A, 144A, 1.680%, 8/15/2018(b)	$	1,593,165
	510,746	Merrill Auto Trust Securitization, Series 2008-1, Class 3A3, 5.500%, 3/15/2012		523,605
	3,245,000	Navistar Financial Dealer Note Master Trust, Series 2010-1, Class A, 144A, 1.896%, 1/26/2015(b)		3,244,992
	1,810,000	Nissan Master Owner Trust Receivables, Series 2010-AA, Class A, 144A, 1.380%, 1/15/2015(b)		1,815,022
	363,635	USAA Auto Owner Trust, Series 2008-3, Class A3, 4.280%, 10/15/2012		372,055
				7,548,839
		ABS Credit Card — 1.0%
	985,000	American Express Credit Account Master, Series 2004-2 Class A, 0.400%, 12/15/2016(b)		978,125
	1,500,000	Citibank Credit Card Issuance Trust, Series 2006-A8, Class A8, 0.291%, 12/17/2018(b)		1,444,662
				2,422,787
		ABS Home Equity — 0.8%
	836,884	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 4.615%, 2/25/2035		674,539
	597,632	Residential Funding Mortgage Securities II, Series 2002-HI5, Class A7, 5.700%, 1/25/2028		557,682
	660,000	Residential Funding Mortgage Securities II, Series 2005-HI3, Class A4, 5.490%, 9/25/2035		618,078
				1,850,299
		Collateralized Mortgage Obligations — 0.3%
	668,548	Federal Home Loan Mortgage Corp., Series 2901, Class UA, 5.000%, 1/15/2030		704,916
	60,821	Federal Home Loan Mortgage Corp., Series 3145, Class KA, 5.000%, 8/15/2024		62,320
				767,236
		Commercial Mortgage-Backed Securities — 12.8%
	1,500,000	Banc of America Commercial Mortgage, Inc., Series 2007-5, Class A4, 5.492%, 2/10/2051		1,424,132
	2,000,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044		1,926,976
	360,000	Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A4, 5.431%, 10/15/2049		361,606
	1,400,000	Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.298%, 12/10/2049(b)		1,410,743
	2,200,500	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/2049		2,130,094
	1,400,000	Commercial Mortgage Pass Through Certificates, Series 2006-C7, Class A4, 5.960%, 6/10/2046(b)		1,445,197
	2,670,000	Credit Suisse Mortgage Capital Certificates, Series 2006-C3, Class A3, 6.019%, 6/15/2038(b)		2,694,935

Principal Amount		Description	Value (†)
		Commercial Mortgage-Backed Securities — continued
$	825,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C2, Class A3, 5.542%, 1/15/2049	$	736,672
	1,610,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C3, Class A4, 5.912%, 6/15/2039(b)		1,450,278
	2,000,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A4, 5.998%, 9/15/2039(b)		1,819,108
	3,000,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040		2,688,325
	1,500,000	Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4, 6.085%, 7/10/2038(b)		1,529,124
	1,860,000	GS Mortgage Securities Corp. II, Series 2006-GG6, Class A4, 5.553%, 4/10/2038		1,869,359
	1,140,000	GS Mortgage Securities Corp. II, Series 2006-GG8, Class A4, 5.560%, 11/10/2039		1,128,582
	1,685,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-CB18, Class A4, 5.440%, 6/12/2047		1,646,910
	3,014,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4, 5.485%, 3/12/2051		2,763,231
	1,720,000	Morgan Stanley Capital I, Series 2007-IQ14, Class A4, 5.692%, 4/15/2049		1,577,412
	815,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A4, 5.418%, 1/15/2045		826,160
	1,410,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/2048		1,386,561
				30,815,405
		Government Guaranteed — 12.0%
	7,000,000	Citigroup Funding, Inc., 0.301%, 7/12/2012 (FDIC insured)(b)		7,006,755
	3,000,000	Citigroup Funding, Inc., Series D, MTN, 0.579%, 4/30/2012 (FDIC insured)(b)		3,020,829
	9,240,000	General Electric Capital Corp., 0.271%, 12/21/2012 (FDIC insured)(b)		9,239,982
	1,400,000	General Electric Capital Corp., Series G, MTN, 2.625%, 12/28/2012 (FDIC insured)		1,437,671
	4,175,000	GMAC, Inc., 1.750%, 10/30/2012 (FDIC insured)		4,199,152
	2,340,000	US Central Federal Credit Union, 1.900%, 10/19/2012 (FDIC insured)		2,361,563
	1,800,000	West Corp. Federal Credit Union, 1.750%, 11/02/2012 (FDIC insured)		1,805,190
				29,071,142
		Government Owned - No Guarantee — 9.9%
	7,600,000	Federal Home Loan Mortgage Corp., 1.125%, 12/15/2011		7,617,358
	6,000,000	Federal Home Loan Mortgage Corp., 2.125%, 3/23/2012		6,108,468
	1,600,000	Federal Home Loan Mortgage Corp., 4.125%, 10/18/2010		1,631,858

See accompanying notes to financial statements.

32

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND — 

PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount		Description	Value (†)
		Government Owned - No Guarantee — continued
$	5,000,000	Federal National Mortgage Association, 1.750%, 3/23/2011	$	5,056,955
	3,420,000	Federal National Mortgage Association, 2.000%, 1/09/2012		3,473,687
				23,888,326
		Government Sponsored — 6.9%
	6,800,000	Federal Home Loan Bank, 1.125%, 6/03/2011		6,835,435
	5,000,000	Federal Home Loan Bank, 1.625%, 7/27/2011		5,055,415
	3,000,000	Federal Home Loan Bank, 3.375%, 10/20/2010		3,047,646
	1,700,000	Federal Home Loan Bank, 3.625%, 9/16/2011		1,770,783
				16,709,279
		Hybrid ARMs — 0.9%
	1,969,436	FNMA, 6.015%, 2/01/2037(b)		2,078,204
		Mortgage Related — 23.2%
	5,100,000	Federal Home Loan Mortgage Corp., 0.149%, 2/02/2012(b)		5,090,029
	645,878	FHLMC, 4.500%, 5/01/2034		652,519
	2,963,251	FHLMC, 5.500%, 10/01/2023		3,174,597
	3,858,501	FHLMC 6.000%, with various maturities from 2019 to 2021(c)		4,172,282
	5,774,100	FHLMC 6.500%, with various maturities from 2014 to 2034(c)		6,310,083
	154,250	FHLMC, 7.000%, 2/01/2016		167,519
	15,148	FHLMC 7.500%, with various maturities from 2012 to 2026(c)		16,303
	10,825	FHLMC, 8.000%, 9/01/2015		11,862
	4,266	FHLMC, 10.000%, 7/01/2019		4,804
	121,881	FHLMC 11.500%, with various maturities from 2015 to 2020(c)		130,731
	8,741,027	FNMA 4.000%, with various maturities from 2018 to 2019(c)		9,062,645
	759,312	FNMA, 4.500%, 9/01/2019		798,234
	1,519,352	FNMA 5.500%, with various maturities from 2017 to 2033(c)		1,619,942
	16,808,078	FNMA 6.000%, with various maturities from 2017 to 2022(c)		18,167,284
	4,695,111	FNMA 6.500%, with various maturities from 2017 to 2037(c)		5,117,303
	183,910	FNMA, 7.000%, 12/01/2022		201,701
	356,482	FNMA 7.500%, with various maturities from 2015 to 2032(c)		400,611
	53,335	FNMA 8.000%, with various maturities from 2015 to 2016(c)		58,473
	85,808	GNMA, 6.000%, 12/15/2031		93,081

Principal Amount		Description	Value (†)
		Mortgage Related — continued
$	298,722	GNMA, 6.500%, 5/15/2031	$	328,596
	285,946	GNMA, 7.000%, 10/15/2028		320,886
	2,151	GNMA, 12.500%, 6/15/2014		2,439
	32,519	GNMA 16.000%, with various maturities from 2011 to 2012(c)		35,778
	9,927	GNMA 17.000%, with various maturities in 2011(c)		10,706
				55,948,408
		Treasuries — 25.3%
	15,100,000	U.S. Treasury Note, 0.875%, 5/31/2011		15,164,885
	24,625,000	U.S. Treasury Note, 1.000%, 9/30/2011		24,724,066
	4,800,000	U.S. Treasury Note, 1.000%, 3/31/2012		4,797,744
	3,415,000	U.S. Treasury Note, 1.500%, 10/31/2010		3,438,744
	4,785,000	U.S. Treasury Note, 2.375%, 2/28/2015		4,752,127
	8,050,000	U.S. Treasury Note, 2.625%, 7/31/2014		8,160,060
				61,037,626
		Total Bonds and Notes (Identified Cost $224,625,739)		232,137,551
	Short-Term Investments — 5.1%
	4,000,000	Federal Home Loan Mortgage Corp. Discount Note, 0.135%, 5/03/2010(d)		3,999,716
	8,283,850	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2010 at 0.000% to be repurchased at $8,283,850 on 4/01/2010, collateralized by $8,420,000 Federal National Mortgage Association, 3.000% due 1/29/2015 valued at $8,451,575 including accrued interest (Note 2 of Notes to Financial Statements)		8,283,850
		Total Short-Term Investments (Identified Cost $12,283,370)		12,283,566
		Total Investments — 101.3% (Identified Cost $236,909,109)(a)		244,421,117
		Other assets less liabilities—(1.3)%		(3,146,090	)
		Net Assets — 100.0%	$	241,275,027
	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.):
		At March 31, 2010, the net unrealized appreciation on investments based on a cost of $237,040,343 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	7,830,294
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(449,520	)
		Net unrealized appreciation	$	7,380,774

See accompanying notes to financial statements.

33

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND —  PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

(b)	Variable rate security. Rate as of March 31, 2010 is disclosed.
(c)	The Fund’s investment in mortgage related securities of the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association and Government National Mortgage Association are interests in separate pools of mortgages. All separate investments in securities of each issuer which have the same coupon rate have been aggregated for the purpose of presentation in the Portfolio of Investments.
(d)	Interest rate represents discount rate at time of purchase; not a coupon rate.
144A	Securities 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 March 31, 2010, the total value of these securities amounted to $6,653,179 or 2.8% of net assets.
ABS	Asset-Backed Securities
ARMs	Adjustable Rate Mortgages
FDIC	Federal Deposit Insurance Corporation
FHLMC	Federal Home Loan Mortgage Corporation
FNMA	Federal National Mortgage Association
GNMA	Government National Mortgage Association
MTN	Medium Term Note

Industry Summary at March 31, 2010 (Unaudited)

Treasuries	25.3	%
Mortgage Related	23.2
Commercial Mortgage-Backed Securities	12.8
Government Guaranteed	12.0
Government Owned—No Guarantee	9.9
Government Sponsored	6.9
ABS Car Loan	3.1
Other Investments, less than 2% each	3.0
Short-Term Investments	5.1
Total Investments	101.3
Other assets less liabilities	(1.3	)
Net Assets	100.0	%

See accompanying notes to financial statements.

34

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 91.4% of Net Assets
	Non-Convertible Bonds — 82.4%
		ABS Car Loan — 0.1%
$	11,305,000	Avis Budget Rental Car Funding AESOP LLC, Series 2007-2A, Class A, 144A, 0.380%, 8/20/2013(b)	$	10,659,962
		ABS Credit Card — 0.6%
	80,700,000	Citibank Credit Card Issuance Trust, Series 2008-C6, Class C6, 6.300%, 6/20/2014		85,382,359
		Aerospace & Defense — 0.1%
	1,380,000	Bombardier, Inc., 144A, 6.300%, 5/01/2014		1,431,750
	870,000	Bombardier, Inc., 7.350%, 12/22/2026, (CAD)		837,955
	11,800,000	Bombardier, Inc., 144A, 7.450%, 5/01/2034		10,856,000
				13,125,705
		Airlines — 1.9%
	3,222,650	American Airlines Pass Through Trust, Series 2009-1A, 10.375%, 7/02/2019		3,730,218
	432,651	American Airlines Pass Through Trust, Series 93A6, 8.040%, 9/16/2011		411,019
	145,287	Continental Airlines Pass Through Trust, Series 1996-1, Class A, 6.940%, 4/15/2015		148,920
	7,169,663	Continental Airlines Pass Through Trust, Series 1997-1, Class A, 7.461%, 10/01/2016		7,080,043
	3,339,995	Continental Airlines Pass Through Trust, Series 1997-4, Class 4B, 6.900%, 7/02/2018		3,223,095
	3,046,379	Continental Airlines Pass Through Trust, Series 1998-1, Class B, 6.748%, 9/15/2018		2,939,755
	5,801,291	Continental Airlines Pass Through Trust, Series 1999-1, Class B, 6.795%, 2/02/2020		5,409,704
	5,029,719	Continental Airlines Pass Through Trust, Series 1999-2, Class B, 7.566%, 9/15/2021		4,778,233
	1,542,353	Continental Airlines Pass Through Trust, Series 2000-1, Class A-1, 8.048%, 5/01/2022		1,565,488
	1,535,749	Continental Airlines Pass Through Trust, Series 2000-2, Class A-1, 7.707%, 10/02/2022		1,535,749
	7,707,691	Continental Airlines Pass Through Trust, Series 2000-2, Class B, 8.307%, 10/02/2019		7,322,307
	2,067,163	Continental Airlines Pass Through Trust, Series 2001-1, Class A-1, 6.703%, 12/15/2022		1,922,462
	2,760,159	Continental Airlines Pass Through Trust, Series 2001-1, Class B, 7.373%, 6/15/2017		2,608,350
	11,915,000	Continental Airlines Pass Through Trust, Series 2007-1, Class A, 5.983%, 10/19/2023		11,706,487

Principal Amount (‡)		Description	Value (†)
		Airlines — continued
$	19,647,000	Continental Airlines Pass Through Trust, Series 2007-1, Class B, 6.903%, 4/19/2022	$	17,878,770
	19,595,724	Continental Airlines Pass Through Trust, Series 2009-1, Class A, 9.000%, 7/08/2016		21,163,382
	17,425,000	Continental Airlines Pass Through Trust, Series 2009-2, Class A, 7.250%, 11/10/2019		18,644,750
	3,145,000	Delta Air Lines, Inc., 144A, 9.500%, 9/15/2014		3,306,181
	2,450,000	Delta Air Lines, Inc., Series 2001-1, Class A-2, 7.111%, 3/18/2013		2,560,250
	1,526,968	Delta Air Lines, Inc., Series 2007-1, Class A, 6.821%, 2/10/2024		1,526,968
	8,464,020	Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 2/10/2024		7,786,898
	27,413,153	Delta Air Lines, Inc., Series 2007-1, Class C, 8.954%, 8/10/2014		25,652,954
	7,500,000	Delta Air Lines, Inc., Series B, 9.750%, 12/17/2016		7,725,000
	2,201,154	Northwest Airlines, Inc., Series 2002-1, Class G2, (MBIA insured), 6.264%, 5/20/2023		2,091,096
	24,085,629	Northwest Airlines, Inc., Series 2007-1, Class B, 8.028%, 11/01/2017		22,032,811
	1,500,000	Qantas Airways Ltd., 144A, 5.125%, 6/20/2013		1,531,428
	32,710,000	Qantas Airways Ltd., 144A, 6.050%, 4/15/2016		33,800,748
	17,870,524	UAL Pass through Trust, Series 2007-1, Class A, 6.636%, 1/02/2024		16,530,234
	11,325,000	UAL Pass through Trust, Series 2009-1, 10.400%, 5/01/2018		12,174,375
				248,787,675
		Automotive — 3.0%
	265,000	ArvinMeritor, Inc., 8.125%, 9/15/2015		255,725
	1,853,000	Cummins, Inc., 6.750%, 2/15/2027		1,768,639
	2,145,000	Cummins, Inc., 7.125%, 3/01/2028		2,120,253
	3,100,000	FCE Bank PLC, EMTN, 4.625%, 10/25/2010, (NOK)		511,172
	6,500,000	FCE Bank PLC, EMTN, 7.125%, 1/16/2012, (EUR)		8,976,761
	4,500,000	FCE Bank PLC, EMTN, 7.125%, 1/15/2013, (EUR)		6,229,875
	5,700,000	FCE Bank PLC, EMTN, 7.875%, 2/15/2011, (GBP)		8,833,119
	18,566,000	Ford Motor Co., 6.375%, 2/01/2029		15,084,875
	1,975,000	Ford Motor Co., 6.500%, 8/01/2018		1,876,250
	500,000	Ford Motor Co., 6.625%, 2/15/2028		420,000
	73,314,000	Ford Motor Co., 6.625%, 10/01/2028		61,583,760

See accompanying notes to financial statements.

35

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Automotive — continued
$	1,940,000	Ford Motor Co., 7.125%, 11/15/2025	$	1,653,850
	88,470,000	Ford Motor Co., 7.450%, 7/16/2031		83,604,150
	1,250,000	Ford Motor Co., 7.500%, 8/01/2026		1,109,375
	10,685,000	Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		11,056,154
	24,235,000	Ford Motor Credit Co. LLC, 7.250%, 10/25/2011		25,056,348
	5,940,000	Ford Motor Credit Co. LLC, 7.500%, 8/01/2012		6,150,757
	1,030,000	Ford Motor Credit Co. LLC, 7.875%, 6/15/2010		1,039,579
	47,810,000	Ford Motor Credit Co. LLC, 8.000%, 6/01/2014		50,332,264
	14,595,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		15,377,628
	10,625,000	Ford Motor Credit Co. LLC, 8.625%, 11/01/2010		10,882,858
	50,000,000	Ford Motor Credit Co. LLC, 8.700%, 10/01/2014		54,215,500
	1,645,000	Ford Motor Credit Co. LLC, 9.750%, 9/15/2010		1,684,441
	4,977,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		4,292,663
	9,635,000	Goodyear Tire & Rubber Co. (The), 10.500%, 5/15/2016		10,405,800
	1,300,000	TRW Automotive, Inc., 144A, 7.000%, 3/15/2014		1,280,500
	3,100,000	TRW Automotive, Inc., 144A, 7.250%, 3/15/2017		2,991,500
	5,300,000	TRW Automotive, Inc., 144A, 8.875%, 12/01/2017		5,492,125
				394,285,921
		Banking — 6.5%
	67,925,000	AgriBank FCB, 144A, 9.125%, 7/15/2019(c)		77,275,556
	20,565,000	Associates Corp. of North America, 6.950%, 11/01/2018		21,672,343
	22,125,000	BAC Capital Trust VI, 5.625%, 3/08/2035		18,268,104
	1,675,000	Bank of America Corp., 5.420%, 3/15/2017		1,655,312
	4,560,000	Bank of America Corp., 6.000%, 9/01/2017		4,742,519
	8,020,000	Bank of America NA, 5.300%, 3/15/2017		7,939,006
	56,650,000,000	Barclays Financial LLC, 144A, 4.470%, 12/04/2011, (KRW)		50,164,277
	17,310,000,000	Barclays Financial LLC, EMTN, 144A, 4.060%, 9/16/2010, (KRW)		15,328,969
	21,340,000,000	Barclays Financial LLC, EMTN, 144A, 4.460%, 9/23/2010, (KRW)		18,933,236
	224,520,000,000	BNP Paribas SA, EMTN, 144A, Zero Coupon, 6/13/2011, (IDR)		22,450,766
	2,165,000	Capital One Financial Corp., 6.150%, 9/01/2016		2,246,131

Principal Amount (‡)	Description	Value (†)
	Banking — continued
18,650,000	Citibank NA, 144A, 15.000%, 7/02/2010, (BRL)	$	10,628,408
47,120,000	Citigroup, Inc., 5.000%, 9/15/2014		47,053,608
985,000	Citigroup, Inc., 5.850%, 12/11/2034		894,390
22,790,000	Citigroup, Inc., 5.875%, 2/22/2033		19,664,260
10,819,000	Citigroup, Inc., 6.000%, 10/31/2033		9,486,294
6,060,000	Citigroup, Inc., 6.125%, 8/25/2036		5,288,180
45,862,000	Citigroup, Inc., 6.375%, 8/12/2014		48,994,512
3,350,000	Citigroup, Inc., EMTN, (fixed rate to 11/30/2012, variable rate thereafter), 3.625%, 11/30/2017, (EUR)		4,167,429
64,000,000	Citigroup, Inc., MTN, 5.500%, 10/15/2014		66,233,984
9,905,000	First Niagara Financial Group, Inc., 6.750%, 3/19/2020		10,009,537
400,000	Goldman Sachs Group, Inc. (The), 6.450%, 5/01/2036		386,772
30,375,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		30,336,849
1,285,000	Goldman Sachs Group, Inc. (The), MTN, 5.375%, 3/15/2020		1,273,115
119,806,078	HSBC Bank USA, 144A, Zero Coupon, 11/28/2011		105,597,077
9,090,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 144A, 6.375%, 4/30/2022		8,558,535
109,312,000,000	JPMorgan Chase & Co., 144A, Zero Coupon, 3/28/2011, (IDR)		11,211,703
229,157,783,660	JPMorgan Chase & Co., 144A, Zero Coupon, 4/12/2012, (IDR)		21,763,631
599,726,100,000	JPMorgan Chase & Co., EMTN, 144A, Zero Coupon, 3/28/2011, (IDR)		61,511,552
92,000,000	JPMorgan Chase Bank, 144A, Zero Coupon, 5/17/2010, (BRL)		50,465,881
76,496,404,750	JPMorgan Chase Bank, EMTN, 144A, Zero Coupon, 10/21/2010, (IDR)		8,104,020
3,010,000	Merrill Lynch & Co., Inc., 5.700%, 5/02/2017		2,991,925
1,400,000	Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		1,288,129
51,500,000	Merrill Lynch & Co., Inc., 10.710%, 3/08/2017, (BRL)		28,235,443
3,450,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		4,436,729
5,410,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018		5,830,189
800,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.050%, 6/01/2034		687,833
1,235,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.400%, 8/28/2017		1,301,599
26,665,000	Morgan Stanley, 4.750%, 4/01/2014		27,227,018
5,050,000	Morgan Stanley, 5.125%, 11/30/2015, (GBP)		7,852,563

See accompanying notes to financial statements.

36

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Banking — continued
$	7,900,000	Morgan Stanley, Series F, GMTN, 6.625%, 4/01/2018	$	8,425,974
	2,900,000	Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		2,965,943
	6,600,000	Morgan Stanley, Series F, MTN, 5.625%, 9/23/2019		6,576,728
	5,210,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		5,352,598
				865,478,627
		Brokerage — 0.0%
	4,000,000	Jefferies Group, Inc., 8.500%, 7/15/2019		4,437,372
		Building Materials — 1.0%
	3,255,000	Masco Corp., 4.800%, 6/15/2015		3,140,255
	2,220,000	Masco Corp., 5.850%, 3/15/2017		2,163,716
	13,440,000	Masco Corp., 6.125%, 10/03/2016		13,401,924
	2,045,000	Masco Corp., 6.500%, 8/15/2032		1,755,213
	18,935,000	Owens Corning, Inc., 6.500%, 12/01/2016		20,039,195
	35,980,000	Owens Corning, Inc., 7.000%, 12/01/2036		35,252,700
	44,212,000	USG Corp., 6.300%, 11/15/2016		39,569,740
	14,155,000	USG Corp., 9.500%, 1/15/2018		14,314,244
				129,636,987
		Chemicals — 1.0%
	23,584,000	Borden, Inc., 7.875%, 2/15/2023		16,744,640
	6,920,000	Borden, Inc., 8.375%, 4/15/2016		5,743,600
	8,757,000	Borden, Inc., 9.200%, 3/15/2021		7,049,385
	38,140,000	Chevron Phillips Chemical Co. LLC, 144A, 8.250%, 6/15/2019		45,532,180
	14,550,000	Hercules, Inc., Subordinated Note, 6.500%, 6/30/2029		11,640,000
	24,086,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 9.750%, 11/15/2014		24,567,720
	5,350,000	Methanex Corp., Senior Note, 6.000%, 8/15/2015		4,834,239
	6,465,000	Mosaic Global Holdings, Inc., 7.300%, 1/15/2028		6,922,974
	2,730,000	Mosaic Global Holdings, Inc., 7.375%, 8/01/2018		3,055,580
				126,090,318
		Construction Machinery — 0.9%
	48,305,000	Case New Holland, Inc., 144A, 7.750%, 9/01/2013		50,116,437
	1,425,000	Joy Global, Inc., 6.625%, 11/15/2036		1,357,013
	1,645,000	RSC Equipment Rental, Inc., 9.500%, 12/01/2014		1,628,550

Principal Amount (‡)		Description	Value (†)
		Construction Machinery — continued
$	10,790,000	Terex Corp., 8.000%, 11/15/2017	$	10,493,275
	18,703,000	United Rentals North America, Inc., 7.000%, 2/15/2014		17,300,275
	14,955,000	United Rentals North America, Inc., 7.750%, 11/15/2013		14,356,800
	26,935,000	United Rentals North America, Inc., 10.875%, 6/15/2016		29,291,813
				124,544,163
		Consumer Cyclical Services — 0.8%
	670,000	ServiceMaster Co. (The), 7.100%, 3/01/2018		569,500
	4,675,000	ServiceMaster Co. (The), 7.450%, 8/15/2027		3,564,688
	101,985,000	Western Union Co. (The), 6.200%, 11/17/2036		103,716,093
				107,850,281
		Consumer Products — 0.1%
	9,860,000	Whirlpool Corp., 8.000%, 5/01/2012		10,836,732
	5,915,000	Whirlpool Corp., MTN, 8.600%, 5/01/2014		6,864,576
				17,701,308
		Distributors — 0.0%
	1,500,000	EQT Corp., 8.125%, 6/01/2019		1,782,058
		Diversified Manufacturing — 0.7%
	1,441,000	Textron Financial Corp., 5.400%, 4/28/2013		1,480,600
	550,000	Textron Financial Corp., Series E, MTN, 5.125%, 8/15/2014		523,447
	9,950,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		13,256,874
	5,020,000	Textron, Inc., 5.600%, 12/01/2017		5,056,209
	26,000,000	Textron, Inc., 6.200%, 3/15/2015		27,538,290
	18,635,000	Textron, Inc., 7.250%, 10/01/2019		20,133,068
	16,040,000	Textron, Inc., EMTN, 6.625%, 4/07/2020, (GBP)		22,515,134
				90,503,622
		Electric — 3.4%
	4,020,000	AES Corp. (The), 7.750%, 3/01/2014		4,110,450
	5,565,000	AES Corp. (The), 8.375%, 3/01/2011, (GBP)(c)		8,613,780
	8,582,347	AES Ironwood LLC, 8.857%, 11/30/2025		8,410,700
	1,072,018	AES Red Oak LLC, Series A, 8.540%, 11/30/2019		1,096,138
	70,811,970	Bruce Mansfield Unit, 6.850%, 6/01/2034(c)		71,834,495
	3,710,000	Calpine Corp., 144A, 7.250%, 10/15/2017		3,645,075
	3,363,840	CE Generation LLC, 7.416%, 12/15/2018		3,402,046

See accompanying notes to financial statements.

37

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Electric — continued
$	32,125,000	Cleveland Electric Illuminating Co., 5.950%, 12/15/2036	$	30,809,546
	11,275,000	Dynegy Holdings, Inc., 7.125%, 5/15/2018		8,005,250
	1,000,000	Dynegy Holdings, Inc., 7.500%, 6/01/2015		830,000
	10,185,000	Dynegy Holdings, Inc., 7.625%, 10/15/2026		6,518,400
	500,000	Dynegy Holdings, Inc., 7.750%, 6/01/2019		377,500
	7,455,000	Dynegy Holdings, Inc., 8.375%, 5/01/2016		6,187,650
	1,132,099	Dynegy Roseton/Danskammer Pass Through Trust, Series A, 7.270%, 11/08/2010		1,137,760
	95,200,000	Edison Mission Energy, 7.625%, 5/15/2027		60,928,000
	250,000	Empresa Nacional de Electricidad SA, (Endesa-Chile), 8.350%, 8/01/2013		285,022
	4,875,000	Empresa-Chile Overseas Co., 7.875%, 2/01/2027		5,344,550
	5,940,000	Energy Future Holdings Corp., 144A, 10.000%, 1/15/2020		6,229,575
	555,000	Enersis SA, Cayman Islands, 7.400%, 12/01/2016		607,861
	5,310,000	ITC Holdings Corp., 144A, 6.375%, 9/30/2036		5,315,321
	31,735,000	NGC Corp. Capital Trust I, Series B, 8.316%, 6/01/2027		16,502,200
	43,450,000	NiSource Finance Corp., 6.400%, 3/15/2018		46,587,568
	2,500,000	NRG Energy, Inc., 7.250%, 2/01/2014		2,518,750
	5,000,000	NRG Energy, Inc., 7.375%, 2/01/2016		4,962,500
	1,379,875	Quezon Power (Philippines) Ltd., Senior Secured Note, 8.860%, 6/15/2017		1,400,573
	25,230,000	RRI Energy, Inc., 7.875%, 6/15/2017		22,643,925
	1,050,000	SP PowerAssets Ltd., EMTN, 3.730%, 10/22/2010, (SGD)		761,554
	655,000	Texas Competitive Electric Holdings Co. LLC, Series A, 10.250%, 11/01/2015		455,225
	7,165,000	Toledo Edison Co., 6.150%, 5/15/2037		7,223,997
	50,270,000	TXU Corp., Series P, 5.550%, 11/15/2014		36,697,100
	101,735,000	TXU Corp., Series Q, 6.500%, 11/15/2024		52,902,200
	6,675,000	TXU Corp., Series R, 6.550%, 11/15/2034		3,437,625
	7,300,000	White Pine Hydro LLC, 6.310%, 7/10/2017(c)		7,125,165
	10,935,000	White Pine Hydro LLC, 6.960%, 7/10/2037(c)		9,811,757
	4,000,000	White Pine Hydro LLC, 7.260%, 7/20/2015(c)		3,416,680
				450,135,938

Principal Amount (‡)		Description	Value (†)
		Entertainment — 0.1%
$	12,679,000	Viacom, Inc., 6.875%, 4/30/2036	$	13,442,086
		Financial Other — 0.2%
	20,000,000	National Life Insurance Co., 144A, 10.500%, 9/15/2039		21,407,820
		Food & Beverage — 0.3%
	2,085,000	Aramark Services, Inc., 5.000%, 6/01/2012		2,053,725
	23,710,000	Corn Products International, Inc., 6.625%, 4/15/2037		22,527,132
	14,120,000	Sara Lee Corp., 6.125%, 11/01/2032		13,873,719
	965,000	Smithfield Foods, Inc., 7.750%, 7/01/2017		948,112
				39,402,688
		Government Owned - No Guarantee — 0.3%
	26,435,000	Abu Dhabi National Energy Co., 144A, 7.250%, 8/01/2018		28,494,128
	13,600,000	DP World Ltd., 144A, 6.850%, 7/02/2037		11,678,497
				40,172,625
		Government Sponsored — 0.4%
	66,595,000	Queensland Treasury Corp., 144A, 7.125%, 9/18/2017, (NZD)		49,994,656
		Health Insurance — 0.5%
	15,325,000	CIGNA Corp., 6.150%, 11/15/2036		14,939,668
	2,000,000	CIGNA Corp., 6.350%, 3/15/2018		2,154,480
	50,000,000	WellPoint, Inc., 6.375%, 6/15/2037		51,337,250
				68,431,398
		Healthcare — 3.2%
	4,075,000	Boston Scientific Corp., 5.125%, 1/12/2017		3,824,815
	2,765,000	Boston Scientific Corp., 5.450%, 6/15/2014		2,784,302
	10,230,000	Boston Scientific Corp., 6.000%, 1/15/2020		9,664,189
	4,155,000	Boston Scientific Corp., 6.400%, 6/15/2016		4,237,481
	16,510,000	Boston Scientific Corp., 7.000%, 11/15/2035		14,852,660
	17,785,000	HCA, Inc., 5.750%, 3/15/2014		16,784,594
	3,800,000	HCA, Inc., 6.250%, 2/15/2013		3,771,500
	17,035,000	HCA, Inc., 6.375%, 1/15/2015		16,183,250
	49,350,000	HCA, Inc., 6.500%, 2/15/2016		46,820,812
	2,074,000	HCA, Inc., 6.750%, 7/15/2013		2,074,000
	14,620,000	HCA, Inc., 7.050%, 12/01/2027		12,500,100
	11,104,000	HCA, Inc., 7.190%, 11/15/2015		10,493,280

See accompanying notes to financial statements.

38

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Healthcare — continued
$	20,392,000	HCA, Inc., 7.500%, 12/15/2023	$	18,658,680
	18,780,000	HCA, Inc., 7.500%, 11/06/2033		16,338,600
	44,258,000	HCA, Inc., 7.690%, 6/15/2025		40,938,650
	31,650,000	HCA, Inc., 8.360%, 4/15/2024		29,988,375
	15,815,000	HCA, Inc., MTN, 7.580%, 9/15/2025		14,312,575
	9,492,000	HCA, Inc., MTN, 7.750%, 7/15/2036		8,352,960
	11,370,000	Hospira, Inc., 6.050%, 3/30/2017		12,212,199
	92,120,000	Medco Health Solutions, Inc., 7.125%, 3/15/2018		105,027,117
	3,260,000	Owens & Minor, Inc., 6.350%, 4/15/2016(c)		3,131,889
	31,009,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		25,272,335
	1,570,000	Tenet Healthcare Corp., 7.375%, 2/01/2013		1,585,700
	4,765,000	Tenet Healthcare Corp., 9.250%, 2/01/2015		4,997,294
				424,807,357
		Home Construction — 1.0%
	1,625,000	D.R. Horton, Inc., 6.500%, 4/15/2016		1,629,062
	11,265,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015		11,433,975
	6,290,000	K. Hovnanian Enterprises, Inc., 7.500%, 5/15/2016		4,937,650
	1,935,000	K. Hovnanian Enterprises, Inc., 7.750%, 5/15/2013		1,673,775
	1,235,000	K. Hovnanian Enterprises, Inc., 8.875%, 4/01/2012		1,139,288
	4,830,000	K. Hovnanian Enterprises, Inc., Guaranteed Note, 6.250%, 1/15/2015		3,815,700
	16,075,000	K. Hovnanian Enterprises, Inc., Guaranteed Note, 6.250%, 1/15/2016		12,377,750
	6,040,000	K. Hovnanian Enterprises, Inc., Guaranteed Note, 6.375%, 12/15/2014		4,847,100
	2,490,000	K. Hovnanian Enterprises, Inc., Guaranteed Note, 6.500%, 1/15/2014		2,091,600
	1,685,000	KB Home, 5.750%, 2/01/2014		1,634,450
	8,340,000	KB Home, Guaranteed Note, 5.875%, 1/15/2015		7,902,150
	5,805,000	KB Home, Guaranteed Note, 6.250%, 6/15/2015		5,572,800
	11,315,000	KB Home, Guaranteed Note, 7.250%, 6/15/2018		10,834,112
	2,720,000	Lennar Corp., Series B, 5.125%, 10/01/2010		2,737,000
	3,745,000	Pulte Group, Inc., 5.200%, 2/15/2015		3,590,519
	46,260,000	Pulte Group, Inc., 6.000%, 2/15/2035		35,851,500

Principal Amount (‡)		Description	Value (†)
		Home Construction — continued
$	13,190,000	Pulte Group, Inc., 6.375%, 5/15/2033	$	10,552,000
	4,245,000	Toll Brothers Financial Corp., 5.150%, 5/15/2015		4,235,992
				126,856,423
		Independent Energy — 1.3%
	48,410,000	Anadarko Petroleum Corp., 6.450%, 9/15/2036		49,336,567
	4,185,000	Chesapeake Energy Corp., 6.250%, 1/15/2017, (EUR)		5,482,898
	14,650,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		14,173,875
	22,690,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		22,066,025
	15,054,000	Connacher Oil and Gas Ltd., 144A, 10.250%, 12/15/2015		15,317,445
	3,000,000	Connacher Oil and Gas Ltd., 144A, 11.750%, 7/15/2014		3,315,000
	6,495,000	Hilcorp Energy I LP, 144A, 7.750%, 11/01/2015		6,413,813
	1,805,000	Penn Virginia Corp., 10.375%, 6/15/2016		1,958,425
	7,175,000	Pioneer Natural Resources Co., 5.875%, 7/15/2016		7,060,702
	1,760,000	Pioneer Natural Resources Co., 6.875%, 5/01/2018		1,759,016
	4,798,000	Pioneer Natural Resources Co., 7.200%, 1/15/2028		4,537,325
	2,499,000	Swift Energy Co., 7.125%, 6/01/2017		2,374,050
	9,170,000	Talisman Energy, Inc., 5.850%, 2/01/2037		8,790,151
	24,260,000	Talisman Energy, Inc., 6.250%, 2/01/2038		24,686,176
				167,271,468
		Industrial Other — 0.1%
	545,000	Great Lakes Dredge & Dock Corp., Senior Subordinated Note, 7.750%, 12/15/2013		549,769
	20,000,000	Ranhill Labuan Ltd., 144A, 12.500%, 10/26/2011		18,500,000
				19,049,769
		Life Insurance — 0.4%
	2,855,000	American International Group, Inc., 4.900%, 6/02/2014, (CAD)		2,586,127
	4,815,000	American International Group, Inc., MTN, 5.450%, 5/18/2017		4,429,530
	2,185,000	American International Group, Inc., Series G, MTN, 5.600%, 10/18/2016		2,033,733
	23,190,000	American International Group, Inc., Series G, MTN, 5.850%, 1/16/2018		21,547,360
	1,500,000	MetLife, Inc., 6.400%, 12/15/2066		1,342,500
	9,620,000	MetLife, Inc., 10.750%, 8/01/2069		12,399,718
	6,700,000	Unum Group, 7.125%, 9/30/2016		7,283,141
				51,622,109

See accompanying notes to financial statements.

39

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Media Cable — 2.0%
$	31,795,000	Comcast Corp., 5.650%, 6/15/2035	$	29,436,224
	8,810,000	Comcast Corp., 6.500%, 11/15/2035		9,023,872
	161,264,000	Comcast Corp., 6.950%, 8/15/2037		174,458,298
	400,000	CSC Holdings LLC, 7.875%, 2/15/2018		420,000
	2,540,000	CSC Holdings LLC, 144A, 8.500%, 4/15/2014		2,705,100
	25,270,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		25,612,855
	17,959,000	Time Warner Cable, Inc., 6.750%, 7/01/2018		20,066,686
	2,720,000	Virgin Media Finance PLC, 9.125%, 8/15/2016		2,890,000
	1,065,573	Virgin Media Finance PLC, 9.750%, 4/15/2014, (GBP)		1,669,558
				266,282,593
		Media Non-Cable — 0.6%
	1,140,000	Clear Channel Communications, Inc., 4.400%, 5/15/2011		1,074,450
	3,370,000	Clear Channel Communications, Inc., 5.000%, 3/15/2012		2,982,450
	4,740,000	Clear Channel Communications, Inc., 6.250%, 3/15/2011		4,585,950
	145,000	Clear Channel Communications, Inc., 7.650%, 9/15/2010		144,456
	225,000	Intelsat Corp., 6.875%, 1/15/2028		193,500
	46,000,000	News America, Inc., 6.150%, 3/01/2037		45,342,246
	11,140,000	News America, Inc., 6.200%, 12/15/2034		11,110,824
	13,075,000	News America, Inc., 6.400%, 12/15/2035		13,351,563
				78,785,439
		Metals & Mining — 0.5%
	10,000,000	Alcoa, Inc., 5.720%, 2/23/2019		9,721,620
	3,949,000	Alcoa, Inc., 5.870%, 2/23/2022		3,628,464
	1,405,000	Alcoa, Inc., 5.950%, 2/01/2037		1,151,997
	4,330,000	Alcoa, Inc., 6.750%, 1/15/2028		4,005,337
	9,785,000	Algoma Acquisition Corp., 144A, 9.875%, 6/15/2015		9,002,200
	1,840,000	Rio Tinto Alcan, Inc., 5.750%, 6/01/2035		1,801,533
	1,730,000	Teck Resources Ltd., 10.250%, 5/15/2016		2,058,700
	1,000,000	Teck Resources Ltd., 10.750%, 5/15/2019		1,225,000
	7,000,000	United States Steel Corp., 6.050%, 6/01/2017		6,737,500
	6,779,000	United States Steel Corp., 6.650%, 6/01/2037		5,829,940

Principal Amount (‡)		Description	Value (†)
		Metals & Mining — continued
$	16,435,000	United States Steel Corp., 7.000%, 2/01/2018	$	16,188,475
				61,350,766
		Non-Captive Consumer — 4.1%
	4,900,000	American General Finance Corp., MTN, 5.750%, 9/15/2016		4,199,177
	229,690,000	American General Finance Corp., Series J, MTN, 6.900%, 12/15/2017		201,187,538
	37,749,000	Residential Capital LLC, 9.625%, 5/15/2015		37,182,765
	995,000	SLM Corp., 6.000%, 5/10/2012, (AUD)		829,015
	109,950(††)	SLM Corp., 6.000%, 12/15/2043		1,956,835
	20,590,000	SLM Corp., MTN, 5.050%, 11/14/2014		19,053,677
	3,695,000	SLM Corp., MTN, 5.125%, 8/27/2012		3,671,537
	1,665,000	SLM Corp., MTN, 8.000%, 3/25/2020		1,621,309
	4,700,000	SLM Corp., Series 7, EMTN, 4.750%, 3/17/2014, (EUR)		5,887,823
	5,625,000	SLM Corp., Series A, MTN, 4.500%, 7/26/2010		5,650,892
	54,478,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		52,046,048
	41,770,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		38,033,298
	14,465,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		11,935,303
	19,605,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		19,362,819
	24,705,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		23,400,304
	1,390,000	SLM Corp., Series A, MTN, 5.400%, 10/25/2011		1,403,041
	28,150,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		21,721,244
	6,100,000	SLM Corp., Series A, MTN, 6.500%, 6/15/2010, (NZD)(c)		4,333,970
	95,060,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		96,139,977
				549,616,572
		Non-Captive Diversified — 8.0%
	18,096,402	CIT Group, Inc., 7.000%, 5/01/2013		17,598,751
	27,144,615	CIT Group, Inc., 7.000%, 5/01/2014		25,651,661
	27,144,615	CIT Group, Inc., 7.000%, 5/01/2015		25,312,353
	66,996,037	CIT Group, Inc., 7.000%, 5/01/2016		61,803,844
	70,052,457	CIT Group, Inc., 7.000%, 5/01/2017		64,623,392
	3,100,000	General Electric Capital Corp., EMTN, 6.125%, 5/17/2012, (GBP)		5,048,607
	6,610,000	General Electric Capital Corp., EMTN, 9.000%, 1/04/2011, (NZD)		4,856,118

See accompanying notes to financial statements.

40

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)	Description	Value (†)
	Non-Captive Diversified — continued
79,035,000	General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016, (NZD)	$	56,305,203
65,300,000	General Electric Capital Corp., Series A, GMTN, 2.960%, 5/18/2012, (SGD)		46,788,165
43,080,000	General Electric Capital Corp., Series A, GMTN, 7.625%, 12/10/2014, (NZD)		32,329,868
15,305,000	General Electric Capital Corp., Series A, MTN, 0.551%, 5/13/2024(b)		12,933,903
115,000,000	General Electric Capital Corp., Series A, MTN, 3.485%, 3/08/2012, (SGD)		83,229,601
243,057,000	General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015, (NZD)		172,894,809
5,760,000	General Motors Acceptance Corp. of Canada Ltd., EMTN, 7.125%, 9/13/2011, (AUD)		5,196,136
43,074,000	GMAC, Inc., 5.375%, 6/06/2011		42,912,472
3,390,000	GMAC, Inc., 5.750%, 9/27/2010		3,403,560
905,000	GMAC, Inc., 6.000%, 4/01/2011		903,869
36,075,000	GMAC, Inc., 6.000%, 12/15/2011		36,165,188
311,000	GMAC, Inc., 144A, 6.625%, 12/17/2010		312,944
15,426,000	GMAC, Inc., 6.625%, 5/15/2012		15,580,260
22,211,000	GMAC, Inc., 6.750%, 12/01/2014		22,099,945
6,829,000	GMAC, Inc., 6.875%, 9/15/2011		6,939,971
2,947,000	GMAC, Inc., 6.875%, 8/28/2012		2,987,521
7,702,000	GMAC, Inc., 7.000%, 2/01/2012		7,836,785
17,038,000	GMAC, Inc., 7.500%, 12/31/2013		17,336,165
32,711,000	GMAC, Inc., 8.000%, 12/31/2018		32,220,335
25,955,000	GMAC, Inc., 8.000%, 11/01/2031		24,787,025
49,800,000	GMAC, Inc., 144A, 8.300%, 2/12/2015		52,290,000
10,985,000	International Lease Finance Corp., 6.375%, 3/25/2013		10,735,168
23,370,000	International Lease Finance Corp., 144A, 8.625%, 9/15/2015		23,890,146
2,330,000	International Lease Finance Corp., Series R, MTN, 5.625%, 9/20/2013		2,197,826
2,547,000	International Lease Finance Corp., Series R, MTN, 5.650%, 6/01/2014		2,360,580
34,782,000	iStar Financial, Inc., 5.150%, 3/01/2012		30,434,250
5,255,000	iStar Financial, Inc., 5.375%, 4/15/2010		5,241,863
3,010,000	iStar Financial, Inc., 5.500%, 6/15/2012		2,607,413
19,110,000	iStar Financial, Inc., 5.650%, 9/15/2011		17,437,875
1,530,000	iStar Financial, Inc., 5.700%, 3/01/2014		1,216,350

Principal Amount (‡)		Description	Value (†)
		Non-Captive Diversified — continued
$	4,040,000	iStar Financial, Inc., 5.800%, 3/15/2011	$	3,832,950
	4,815,000	iStar Financial, Inc., 5.850%, 3/15/2017		3,563,100
	8,815,000	iStar Financial, Inc., 5.875%, 3/15/2016		6,611,250
	4,300,000	iStar Financial, Inc., 6.050%, 4/15/2015		3,160,500
	35,130,000	iStar Financial, Inc., 8.625%, 6/01/2013		30,036,150
	1,780,000	iStar Financial, Inc., Series B, 5.125%, 4/01/2011		1,604,225
	44,610,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		35,688,000
				1,060,966,097
		Oil Field Services — 1.6%
	7,015,000	Allis-Chalmers Energy, Inc., 8.500%, 3/01/2017		6,208,275
	8,060,000	Allis-Chalmers Energy, Inc., 9.000%, 1/15/2014		7,737,600
	10,860,000	Nabors Industries, Inc., 6.150%, 2/15/2018		11,569,234
	107,054,000	Nabors Industries, Inc., 9.250%, 1/15/2019		133,162,223
	3,973,000	North American Energy Partners, Inc., 8.750%, 12/01/2011		3,973,000
	16,035,000	Rowan Cos., Inc., 7.875%, 8/01/2019		18,365,190
	15,520,000	Weatherford International Ltd., 6.500%, 8/01/2036		15,421,370
	2,975,000	Weatherford International Ltd., 6.800%, 6/15/2037		3,053,153
	9,580,000	Weatherford International Ltd., 7.000%, 3/15/2038		10,128,915
				209,618,960
		Packaging — 0.3%
	2,450,000	OI European Group BV, 144A, 6.875%, 3/31/2017, (EUR)		3,342,185
	1,750,000	Owens Brockway Glass Container, Inc., 6.750%, 12/01/2014, (EUR)		2,410,911
	33,261,000	Owens-Illinois, Inc., Senior Note, 7.800%, 5/15/2018		34,341,982
				40,095,078
		Packaging & Containers — 0.0%
	4,445,000	XL Capital Ltd., 6.250%, 5/15/2027		4,191,044
	1,425,000	XL Capital Ltd., 6.375%, 11/15/2024		1,356,694
				5,547,738
		Paper — 2.6%
	22,285,000	Fibria Overseas Finance Ltd., 144A, 9.250%, 10/30/2019		25,404,900
	12,430,000	Georgia-Pacific Corp., 7.250%, 6/01/2028		12,305,700
	11,605,000	Georgia-Pacific Corp., 7.375%, 12/01/2025		11,546,975

See accompanying notes to financial statements.

41

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Paper — continued
$	120,000	Georgia-Pacific Corp., 7.700%, 6/15/2015	$	127,200
	42,425,000	Georgia-Pacific Corp., 7.750%, 11/15/2029		42,425,000
	16,475,000	Georgia-Pacific Corp., 8.000%, 1/15/2024		17,463,500
	18,378,000	Georgia-Pacific Corp., 8.875%, 5/15/2031		19,940,130
	154,533,000	International Paper Co., 7.950%, 6/15/2018		180,547,240
	3,995,000	Jefferson Smurfit Corp., 7.500%, 6/01/2013(d)		3,515,600
	100,000	Smurfit-Stone Container Enterprises, Inc., 8.000%, 3/15/2017(d)		89,250
	14,520,000	Westvaco Corp., 7.950%, 2/15/2031		15,688,540
	17,355,000	Westvaco Corp., 8.200%, 1/15/2030		19,077,796
				348,131,831
		Pharmaceuticals — 0.3%
	41,300,000	Elan Finance PLC/ Elan Finance Corp., 8.875%, 12/01/2013		42,539,000
		Pipelines — 2.2%
	19,745,000	DCP Midstream LP, 144A, 6.450%, 11/03/2036		19,577,622
	15,685,000	El Paso Corp., 6.950%, 6/01/2028		14,165,374
	1,500,000	El Paso Corp., 7.420%, 2/15/2037		1,325,655
	750,000	El Paso Corp., GMTN, 7.800%, 8/01/2031		737,120
	1,000,000	El Paso Energy Corp., GMTN, 7.750%, 1/15/2032		982,610
	5,255,000	Energy Transfer Partners LP, 6.125%, 2/15/2017		5,647,764
	9,115,000	Energy Transfer Partners LP, 6.625%, 10/15/2036		9,177,338
	13,175,000	Enterprise Products Operating LLP, 6.300%, 9/15/2017		14,472,487
	5,100,000	Florida Gas Transmission Co., 144A, 7.900%, 5/15/2019		6,076,308
	500,000	Kinder Morgan Energy Partners LP, 5.800%, 3/15/2035		469,935
	46,406,379	Maritimes & Northeast Pipeline LLC, 144A, 7.500%, 5/31/2014(c)		50,764,866
	81,710,000	NGPL Pipeco LLC, 144A, 7.119%, 12/15/2017		91,631,637
	3,425,000	ONEOK Partners LP, 6.650%, 10/01/2036		3,570,730
	20,770,000	Plains All American Pipeline LP, 6.125%, 1/15/2017		22,303,574
	44,730,000	Plains All American Pipeline LP, 6.650%, 1/15/2037		46,382,326
	4,168,000	Transportadora de Gas del Sur SA, 144A, 7.875%, 5/14/2017		3,954,390
	444,000	Williams Cos., Inc. (The), 7.875%, 9/01/2021		522,774
	715,000	Williams Cos., Inc. (The), Senior Note, 7.750%, 6/15/2031		802,104

Principal Amount (‡)		Description	Value (†)
		Pipelines — continued
$	2,984,000	Williams Cos., Inc. (The), Series A, 7.500%, 1/15/2031	$	3,278,769
				295,843,383
		Property & Casualty Insurance — 0.3%
	3,405,000	Hanover Insurance Group, Inc. (The), 7.500%, 3/01/2020		3,492,338
	2,660,000	Marsh & McLennan Cos., Inc., 5.375%, 7/15/2014		2,751,499
	11,710,000	Marsh & McLennan Cos., Inc., 5.750%, 9/15/2015		12,400,784
	11,075,000	Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033		9,755,148
	6,080,000	MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 144A, 14.000%, 1/15/2033		4,134,400
	11,205,000	Willis North America, Inc., 6.200%, 3/28/2017		11,351,696
				43,885,865
		Railroads — 0.2%
	1,200,000	Canadian Pacific Railway Co., 5.750%, 3/15/2033		1,131,932
	10,370,000	Canadian Pacific Railway Co., 5.950%, 5/15/2037		10,021,713
	18,450,000	CSX Corp., MTN, 6.000%, 10/01/2036		18,328,747
	1,153,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(c)		691,800
				30,174,192
		Refining — 0.0%
	1,335,000	Valero Energy Corp., 6.625%, 6/15/2037		1,269,660
		REITs — 1.2%
	2,025,000	Camden Property Trust, 5.000%, 6/15/2015		2,017,200
	27,950,000	Camden Property Trust, 5.700%, 5/15/2017		27,485,192
	4,030,000	Duke Realty LP, 5.950%, 2/15/2017		3,962,115
	3,300,000	ERP Operating LP, 5.125%, 3/15/2016		3,393,671
	47,305,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		45,215,349
	4,180,000	ProLogis, 5.625%, 11/15/2015		4,144,240
	3,915,000	ProLogis, 5.625%, 11/15/2016		3,787,030
	4,635,000	ProLogis, 5.750%, 4/01/2016		4,540,381
	1,002,000	ProLogis, 6.625%, 5/15/2018		995,734
	2,080,000	ProLogis, 7.375%, 10/30/2019		2,135,166
	1,500,000	Simon Property Group LP, 5.250%, 12/01/2016		1,486,479
	4,900,000	Simon Property Group LP, 5.750%, 12/01/2015		5,183,695
	550,000	Simon Property Group LP, 5.875%, 3/01/2017		568,272

See accompanying notes to financial statements.

42

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		REITs — continued
$	1,890,000	Simon Property Group LP, 6.100%, 5/01/2016	$	1,989,681
	450,000	Simon Property Group LP, 6.125%, 5/30/2018		465,548
	46,015,000	WEA Finance LLC/WT Finance Australia Property Ltd., 144A, 6.750%, 9/02/2019		49,101,870
				156,471,623
		Restaurants — 0.0%
	1,250,000	McDonald’s Corp., EMTN, 3.628%, 10/10/2010, (SGD)		905,124
		Retailers — 2.2%
	8,758,000	Dillard’s, Inc., 6.625%, 1/15/2018		8,101,150
	4,187,000	Dillard’s, Inc., 7.130%, 8/01/2018		3,935,780
	1,500,000	Dillard’s, Inc., 7.750%, 7/15/2026		1,275,000
	425,000	Dillard’s, Inc., 7.875%, 1/01/2023		377,188
	3,325,000	Dillard’s, Inc., Class A, 7.000%, 12/01/2028		2,660,000
	123,940,000	Home Depot, Inc., 5.875%, 12/16/2036		120,274,722
	3,685,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		3,689,606
	635,000	J.C. Penney Corp., Inc., 7.125%, 11/15/2023		640,556
	3,985,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		3,606,425
	72,470,000	J.C. Penney Corp., Inc., Senior Note, 6.375%, 10/15/2036		67,487,688
	16,627,000	Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037		15,296,840
	12,275,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		11,047,500
	2,365,000	Macy’s Retail Holdings, Inc., 6.900%, 4/01/2029		2,246,750
	6,365,000	Marks & Spencer PLC, 144A, 7.125%, 12/01/2037		6,447,586
	32,675,000	Toys R Us, Inc., 7.375%, 10/15/2018		31,368,000
	8,355,000	Toys R Us, Inc., 7.875%, 4/15/2013		8,563,875
	10,270,000	Woolworth Corp., 8.500%, 1/15/2022		9,499,750
				296,518,416
		Sovereigns — 4.7%
	104,626,000,000	Indonesia Treasury Bond, Series FR43, 10.250%, 7/15/2022, (IDR)		12,185,942
	10,000,000,000	Indonesia Treasury Bond, Series FR47, 10.000%, 2/15/2028, (IDR)		1,086,521
	272,460,000,000	Indonesia Treasury Bond, Series ZC3, Zero Coupon, 11/20/2012, (IDR)		24,654,793
	2,350,305(†††)	Mexican Fixed Rate Bonds, Series M-10, 7.250%, 12/15/2016, (MXN)		19,005,843
	2,037,000(†††)	Mexican Fixed Rate Bonds, Series M-10, 9.000%, 12/20/2012, (MXN)		17,729,376

Principal Amount (‡)	Description	Value (†)
	Sovereigns — continued
18,686,981(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)	$	151,370,025
79,755,000	New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010, (AUD)		74,464,372
10,530,000	New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012, (AUD)		9,791,710
66,305,000	New South Wales Treasury Corp., Series 17RG, 5.500%, 3/01/2017, (AUD)		59,281,078
56,700,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		32,202,322
140,235,000	Republic of Brazil, 12.500%, 1/05/2016, (BRL)		89,699,616
107,840,000	Republic of Brazil, 12.500%, 1/05/2022, (BRL)		70,797,762
18,400,000	Republic of Croatia, 144A, 6.750%, 11/05/2019		20,248,078
3,178,700,000	Republic of Iceland, 7.250%, 5/17/2013, (ISK)		14,096,843
1,700,700,000	Republic of Iceland, 8.000%, 7/22/2011, (ISK)		7,569,372
4,844,663,000	Republic of Iceland, 13.750%, 12/10/2010, (ISK)		22,113,570
4,020,000	Republic of Venezuela, 7.000%, 3/16/2015, (EUR)		4,845,931
			631,143,154
	Supermarkets — 0.7%
2,000,000	American Stores Co., 7.900%, 5/01/2017		1,861,460
72,681,000	New Albertson’s, Inc., 7.450%, 8/01/2029		61,415,445
19,060,000	New Albertson’s, Inc., 7.750%, 6/15/2026		16,201,000
4,895,000	New Albertson’s, Inc., 8.000%, 5/01/2031		4,209,700
1,510,000	New Albertson’s, Inc., 8.700%, 5/01/2030		1,404,300
13,242,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		10,030,815
			95,122,720
	Supranational — 1.3%
128,250,000	European Investment Bank, Zero Coupon, 3/10/2021, (AUD)		54,701,201
16,375,000	European Investment Bank, 11.250%, 2/14/2013, (BRL)		9,784,853
460,500,000,000	European Investment Bank, EMTN, 144A, Zero Coupon, 4/24/2013, (IDR)		41,335,942
24,398,000	European Investment Bank, EMTN, 7.000%, 1/18/2012, (NZD)		18,141,623
244,840,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 5/20/2013, (IDR)		21,033,181
24,450,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		17,442,546
8,300,000	International Bank for Reconstruction & Development, 1.430%, 3/05/2014, (SGD)		5,770,344
1,385,900,000	International Bank for Reconstruction & Development, 9.500%, 5/27/2010, (ISK)		6,060,721
			174,270,411

See accompanying notes to financial statements.

43

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Technology — 2.4%
$	41,705,000	Agilent Technologies, Inc., 6.500%, 11/01/2017	$	45,058,457
	41,104,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		28,978,320
	5,065,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		3,558,163
	832,000	Alcatel-Lucent, EMTN, 6.375%, 4/07/2014, (EUR)		1,137,788
	10,725,000	Amkor Technology, Inc., 7.750%, 5/15/2013		10,805,437
	1,225,000	Amkor Technology, Inc., 9.250%, 6/01/2016		1,292,375
	2,435,000	Arrow Electronics, Inc., 6.875%, 6/01/2018		2,602,896
	30,125,000	Avnet, Inc., 5.875%, 3/15/2014		32,114,997
	35,630,000	Avnet, Inc., 6.000%, 9/01/2015		37,520,635
	11,345,000	Avnet, Inc., 6.625%, 9/15/2016		12,128,917
	6,225,000	Corning, Inc., 5.900%, 3/15/2014		6,771,829
	6,220,000	Corning, Inc., 6.200%, 3/15/2016		6,791,500
	6,150,000	Corning, Inc., 6.850%, 3/01/2029		6,402,279
	4,725,000	Corning, Inc., 7.250%, 8/15/2036		5,062,417
	3,640,000	Eastman Kodak Co., 7.250%, 11/15/2013		3,467,100
	11,626,000	Equifax, Inc., 7.000%, 7/01/2037		12,416,335
	285,000	Freescale Semiconductor, Inc., 8.875%, 12/15/2014		272,175
	6,290,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016		5,566,650
	9,739,000	Motorola, Inc., 5.220%, 10/01/2097		6,678,529
	475,000	Motorola, Inc., 6.000%, 11/15/2017		491,568
	10,830,000	Motorola, Inc., 6.500%, 9/01/2025		10,516,796
	22,424,000	Motorola, Inc., 6.500%, 11/15/2028		21,050,777
	22,385,000	Motorola, Inc., 6.625%, 11/15/2037		21,008,591
	250,000	Motorola, Inc., 7.500%, 5/15/2025		257,626
	9,350,000	Nortel Networks Capital Corp., 7.875%, 6/15/2026(d)		6,732,000
	11,770,000	Nortel Networks Ltd., 6.875%, 9/01/2023(d)		3,648,700
	270,000	Samsung Electronics Co. Ltd., 144A, 7.700%, 10/01/2027		295,595
	21,822,000	Xerox Capital Trust I, 8.000%, 2/01/2027		21,409,848
	4,795,000	Xerox Corp., 5.500%, 5/15/2012		5,086,066
	1,730,000	Xerox Corp., MTN, 7.200%, 4/01/2016		1,933,318
				321,057,684

Principal Amount (‡)		Description	Value (†)
		Tobacco — 0.5%
$	1,375,000	Altria Group, Inc., 9.700%, 11/10/2018	$	1,690,740
	52,930,000	Reynolds American, Inc., 6.750%, 6/15/2017		56,692,476
	13,400,000	Reynolds American, Inc., 7.250%, 6/15/2037		13,638,627
				72,021,843
		Transportation Services — 0.4%
	10,503,000	APL Ltd., Senior Note, 8.000%, 1/15/2024(c)		7,850,992
	14,891,493	Atlas Air, Inc., Series 1998-1, Class 1B, 7.680%, 7/02/2015		14,072,461
	8,356,817	Atlas Air, Inc., Series 1999-1, Class A1, 7.200%, 7/02/2020		7,938,976
	226,930	Atlas Air, Inc., Series 1999-1, Class A2, 6.880%, 1/02/2011		216,718
	10,885,664	Atlas Air, Inc., Series 1999-1, Class B, 7.630%, 7/02/2016		9,307,243
	4,744,556	Atlas Air, Inc., Series 1999-1, Class C, 8.770%, 7/02/2012(e)		3,700,754
	4,917,945	Atlas Air, Inc., Series 2000-1, Class B, 9.057%, 7/02/2017		4,819,586
	6,862,758	Atlas Air, Inc., Series C, 8.010%, 7/02/2011(e)		5,627,462
	3,970,000	Erac USA Finance Co., 144A, 7.000%, 10/15/2037		4,092,844
				57,627,036
		Treasuries — 13.8%
	393,245,000	Canadian Government, 1.000%, 9/01/2011, (CAD)		385,268,978
	11,035,000	Canadian Government, 1.250%, 12/01/2011, (CAD)		10,809,552
	320,680,000	Canadian Government, 2.000%, 9/01/2012, (CAD)		315,495,571
	130,000,000	Canadian Government, 2.750%, 12/01/2010, (CAD)		129,763,206
	130,216,000	Canadian Government, 3.500%, 6/01/2013, (CAD)		132,571,209
	101,755,000	Canadian Government, 3.750%, 6/01/2012, (CAD)		104,124,424
	171,980,000	Canadian Government, 3.750%, 6/01/2019, (CAD)		171,592,234
	25,445,000	Canadian Government, 4.250%, 6/01/2018, (CAD)		26,430,331
	75,385,000	Canadian Government, 5.250%, 6/01/2012, (CAD)		79,494,008
	22,670,000	New Zealand Government Bond, 6.000%, 12/15/2017, (NZD)		16,384,962
	68,665,000	New Zealand Government Bond, 6.500%, 4/15/2013, (NZD)		51,419,842
	457,420,000	Norwegian Government, 4.250%, 5/19/2017, (NOK)		80,597,186
	221,050,000	Norwegian Government, 5.000%, 5/15/2015, (NOK)		40,386,220
	366,200,000	Norwegian Government, 6.000%, 5/16/2011, (NOK)		64,104,717
	262,545,000	Norwegian Government, 6.500%, 5/15/2013, (NOK)		49,098,018

See accompanying notes to financial statements.

44

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Treasuries — continued
$	102,640,000	U.S. Treasury Bond, 4.375%, 11/15/2039	$	97,058,950
	65,745,000	U.S. Treasury Bond, 4.625%, 2/15/2040		64,799,916
	25,000,000	U.S. Treasury Note, 3.125%, 5/15/2019		23,810,550
				1,843,209,874
		Utility Other — 0.0%
	3,300,000	Listrindo Capital BV, 144A, 9.250%, 1/29/2015		3,576,078
		Wireless — 1.2%
	29,635,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		28,153,250
	15,931,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		15,532,725
	42,310,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		39,454,075
	2,525,000	Rogers Wireless, Inc., Senior Secured Note, 6.375%, 3/01/2014		2,802,162
	21,186,000	Sprint Capital Corp., 6.875%, 11/15/2028		17,054,730
	18,070,000	Sprint Capital Corp., 6.900%, 5/01/2019		16,534,050
	6,260,000	Sprint Capital Corp., 8.750%, 3/15/2032		5,806,150
	11,309,000	Sprint Nextel Corp., 6.000%, 12/01/2016		10,206,372
	20,600,000	True Move Co. Ltd., 144A, 10.750%, 12/16/2013		21,501,250
				157,044,764
		Wirelines — 3.4%
	10,245,000	AT&T Corp., 6.500%, 3/15/2029		10,415,815
	16,000,000	AT&T, Inc., 6.500%, 9/01/2037		16,591,024
	5,650,000	Axtel SAB de CV, 144A, 9.000%, 9/22/2019		5,763,000
	4,370,000	Bell Canada, MTN, 144A, 6.550%, 5/01/2029, (CAD)		4,455,795
	8,445,000	Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		9,371,360
	33,640,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		33,213,393
	2,715,000	BellSouth Telecommunications, Inc., 7.000%, 12/01/2095		2,708,093
	155,000	Cincinnati Bell, Inc., 7.000%, 2/15/2015		150,737
	270,000	Cincinnati Bell, Inc., 8.375%, 1/15/2014		277,762
	5,330,000	Embarq Corp., 7.995%, 6/01/2036		5,404,322
	35,260,000	Frontier Communications Corp., 7.875%, 1/15/2027		31,734,000
	10,555,000	GTE Corp., 6.940%, 4/15/2028		11,081,600
	525,000	Hawaiian Telcom Communications, Inc., Series B, 12.500%, 5/01/2015(d)		53

Principal Amount (‡)	Description	Value (†)
	Wirelines — continued
1,120,000	Koninklijke (Royal) KPN NV, EMTN, 5.750%, 3/18/2016, (GBP)	$	1,816,072
1,800,000	Koninklijke (Royal) KPN NV, GMTN, 4.000%, 6/22/2015, (EUR)		2,519,447
32,435,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		29,678,025
13,010,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		12,684,750
3,346,000	New England Telephone & Telegraph Co., 7.875%, 11/15/2029		3,667,835
16,335,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		15,273,225
32,395,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		30,775,250
42,460,000	Qwest Capital Funding, Inc., Guaranteed Note, 6.875%, 7/15/2028		38,001,700
12,463,000	Qwest Capital Funding, Inc., Guaranteed Note, 7.625%, 8/03/2021		12,213,740
33,130,000	Qwest Corp., 6.875%, 9/15/2033		31,970,450
3,075,000	Qwest Corp., 7.200%, 11/10/2026		2,959,687
3,999,000	Qwest Corp., 7.250%, 9/15/2025		4,038,990
2,288,000	Qwest Corp., 7.500%, 6/15/2023		2,288,000
5,470,000	SK Broadband Co. Ltd., 144A, 7.000%, 2/01/2012		5,764,286
23,000,000	Telecom Italia Capital SA, 6.000%, 9/30/2034		20,404,220
19,635,000	Telecom Italia Capital SA, 6.375%, 11/15/2033		18,189,334
31,690,000	Telus Corp., 4.950%, 3/15/2017, (CAD)		32,140,552
18,600,000	Telus Corp., Series CG, 5.050%, 12/04/2019, (CAD)		18,346,909
18,022,000	Verizon Global Funding Corp., Senior Note, 5.850%, 9/15/2035		17,540,236
6,230,000	Verizon Maryland, Inc., Series B, 5.125%, 6/15/2033		5,071,831
6,835,000	Verizon New York, Inc., Series A, 7.375%, 4/01/2032		7,347,789
5,215,000	Verizon Pennsylvania, Inc., 6.000%, 12/01/2028		4,667,399
			448,526,681
	Total Non-Convertible Bonds (Identified Cost $10,429,064,653)		10,984,463,277
Convertible Bonds — 7.9%
	Airlines — 0.1%
7,730,000	AMR Corp., 6.250%, 10/15/2014		8,937,812
755,000	UAL Corp., 4.500%, 6/30/2021		744,808
			9,682,620
	Automotive — 1.4%
1,070,000	ArvinMeritor, Inc., (Step to Zero Coupon on 2/15/2019), 4.000%, 2/15/2027(f)		902,813

See accompanying notes to financial statements.

45

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Automotive — continued
$	121,370,000	Ford Motor Co., 4.250%, 11/15/2016	$	181,599,862
	8,460,000	Navistar International Corp., 3.000%, 10/15/2014		9,432,900
				191,935,575
		Diversified Manufacturing — 0.1%
	16,517,000	Trinity Industries, Inc., 3.875%, 6/01/2036		12,945,199
		Electric — 0.0%
	1,800,000	CMS Energy Corp., 5.500%, 6/15/2029		2,148,750
		Healthcare — 0.4%
	26,280,000	Affymetrix, Inc., 3.500%, 1/15/2038		23,586,300
	6,855,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2013), 2.000%, 12/15/2037(f)		6,135,225
	12,005,000	Life Technologies Corp., 1.500%, 2/15/2024		14,075,862
	190,000	LifePoint Hospitals, Inc., 3.250%, 8/15/2025		185,013
	2,380,000	LifePoint Hospitals, Inc., 3.500%, 5/15/2014		2,374,050
	5,445,000	Omnicare, Inc., 3.250%, 12/15/2035		4,607,831
				50,964,281
		Independent Energy — 0.0%
	860,000	Chesapeake Energy Corp., 2.250%, 12/15/2038		625,650
	3,795,000	Penn Virginia Corp., 4.500%, 11/15/2012		3,567,300
				4,192,950
		Lodging — 0.2%
	30,418,000	Host Hotels & Resorts, Inc., 144A, 2.625%, 4/15/2027		29,125,235
		Media Non-Cable — 0.0%
	7,732,404	Liberty Media LLC, 3.500%, 1/15/2031		4,620,111
		Metals & Mining — 0.2%
	1,000,000	Steel Dynamics, Inc., 5.125%, 6/15/2014		1,230,000
	11,270,000	United States Steel Corp., 4.000%, 5/15/2014		23,681,088
				24,911,088
		Non-Captive Diversified — 0.3%
	44,035,000	iStar Financial, Inc., 0.751%, 10/01/2012(b)		33,488,617
		Oil Field Services — 0.0%
	1,300,000	Transocean, Inc., Series B, 1.500%, 12/15/2037		1,269,125
	535,000	Transocean, Inc., Series C, 1.500%, 12/15/2037		512,263
				1,781,388
		Pharmaceuticals — 1.1%
	635,000	Human Genome Sciences, Inc., 2.250%, 10/15/2011		1,270,000

Principal Amount (‡)		Description	Value (†)
		Pharmaceuticals — continued
$	41,680,000	Human Genome Sciences, Inc., 2.250%, 8/15/2012	$	74,971,900
	2,240,000	Kendle International, Inc., 3.375%, 7/15/2012		2,116,800
	24,461,000	Nektar Therapeutics, 3.250%, 9/28/2012		24,308,119
	28,222,000	Valeant Pharmaceuticals International, Subordinated Note, 4.000%, 11/15/2013		39,299,135
				141,965,954
		REITs — 0.2%
	6,469,000	ProLogis, 1.875%, 11/15/2037		6,097,032
	5,920,000	ProLogis, 2.250%, 4/01/2037		5,757,200
	19,445,000	ProLogis, 3.250%, 3/15/2015		19,542,225
				31,396,457
		Technology — 2.6%
	6,512,000	Advanced Micro Devices, Inc., 5.750%, 8/15/2012		6,487,580
	4,005,000	Advanced Micro Devices, Inc., 6.000%, 5/01/2015		3,839,794
	2,560,000	Alcatel-Lucent USA, Inc., Series B, 2.875%, 6/15/2025		2,217,600
	220,000	Ciena Corp., 0.250%, 5/01/2013		182,600
	30,160,000	Ciena Corp., 0.875%, 6/15/2017		20,358,000
	6,075,000	Ciena Corp., 4.000%, 3/15/2015		6,287,625
	9,863,000	Intel Corp., 2.950%, 12/15/2035		9,678,069
	220,000,000	Intel Corp., 144A, 3.250%, 8/01/2039		263,725,000
	9,197,000	Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		8,484,232
	3,880,000	Kulicke & Soffa Industries, Inc., 1.000%, 6/30/2010		3,763,600
	3,241,000	Maxtor Corp., Subordinated Note, 5.750%, 3/01/2012(c)		3,143,770
	745,000	Nortel Networks Corp., 1.750%, 4/15/2012(d)		560,613
	30,767,000	Nortel Networks Corp., 2.125%, 4/15/2014(d)		23,152,167
	257,000	Richardson Electronics Ltd., 7.750%, 12/15/2011		257,000
				352,137,650
		Textile — 0.0%
	103,000	Dixie Group, Inc., Subordinated Note, 7.000%, 5/15/2012		89,224
		Wireless — 0.1%
	16,157,000	NII Holdings, Inc., 3.125%, 6/15/2012		15,248,169
		Wirelines — 1.2%
	34,645,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		31,916,706

See accompanying notes to financial statements.

46

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Wirelines — continued
$	13,484,000	Level 3 Communications, Inc., 5.250%, 12/15/2011	$	13,130,045
	54,075,000	Level 3 Communications, Inc., 144A, 7.000%, 3/15/2015(c)		64,619,625
	32,895,000	Level 3 Communications, Inc., 7.000%, 3/15/2015(c)		39,309,525
	2,470,000	Level 3 Communications, Inc., 10.000%, 5/01/2011		2,537,925
	1,000,000	Qwest Communications International, Inc., 3.500%, 11/15/2025		1,125,000
				152,638,826
		Total Convertible Bonds (Identified Cost $866,011,724)		1,059,272,094
	Municipals — 1.1%
		California — 0.3%
	4,170,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area Redevelopment), Series C, (MBIA insured) 3.750%, 8/01/2028		3,271,031
	1,530,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area), Series C, (Registered), (MBIA insured), 3.750%, 8/01/2028		1,283,808
	5,175,000	State of California, (AMBAC insured), 4.500%, 8/01/2027		4,670,800
	14,415,000	State of California, 4.500%, 10/01/2029		12,627,828
	4,190,000	State of California, (AMBAC insured), 4.500%, 8/01/2030		3,646,138
	3,620,000	State of California, 4.500%, 8/01/2030		3,150,124
	2,680,000	State of California (Various Purpose), (MBIA insured), 3.250%, 12/01/2027		2,015,199
	12,645,000	State of California (Various Purpose), (AMBAC insured), 4.500%, 12/01/2033		10,716,132
				41,381,060
		Illinois — 0.0%
	1,725,000	Chicago O’Hare International Airport, Series A, (AGMC insured), 4.500%, 1/01/2038		1,633,351
		Michigan — 0.1%
	12,850,000	Michigan Tobacco Settlement Finance Authority, Taxable Turbo Series A, 7.309%, 6/01/2034(c)		10,320,606
		Virginia — 0.7%
	128,820,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(c)		93,809,300
		Total Municipals (Identified Cost $186,180,181)		147,144,317
		Total Bonds and Notes (Identified Cost $11,481,256,558)		12,190,879,688
	Bank Loans — 0.6%
		Chemicals — 0.1%
	3,757,630	Hexion Specialty Chemicals, Inc., Extended Term Loan C1, 4.063%, 5/05/2015(g)		3,538,635
	813,594	Hexion Specialty Chemicals, Inc., Extended Term Loan C2, 4.063%, 5/05/2015(g)		766,178
				4,304,813

Principal Amount (‡)		Description	Value (†)
		Energy — 0.1%
$	12,774,619	ATP Oil & Gas Corp., Tranche B-1 Term Loan, 11.250%, 7/15/2014(g)	$	12,910,413
	1,808,458	ATP Oil & Gas Corp., Tranche B2 Term Loan, 12.250%, 1/15/2011(g)		1,827,682
				14,738,095
		Media Non-Cable — 0.0%
	2,797,946	Tribune Company, Term Loan X, 5.000%, 6/04/2009(d)(g)(h)		1,741,721
		Oil Field Services — 0.0%
	2,485,000	Dresser, Inc., 2nd Lien Term Loan, 6.000%, 5/04/2015(g)		2,357,023
	1,230,373	Dresser, Inc., Term Loan, 2.500%, 5/04/2014(g)		1,180,715
				3,537,738
		Printing & Publishing — 0.2%
	22,293,180	SuperMedia, Inc., Exit Term Loan, 11.000%, 12/31/2015(g)		20,977,213
	6,855,000	SuperMedia, Inc., Exit Term Loan, 12/31/2015(i)		6,450,349
				27,427,562
		Wirelines — 0.2%
	3,975,879	FairPoint Communications, Inc., Initial Term Loan A, 4.750%, 3/31/2014(d)(g)		3,268,212
	12,057,742	FairPoint Communications, Inc., Initial Term Loan B, 5.000%, 3/31/2015(d)(g)		9,910,740
	17,154,004	Hawaiian Telcom Communications, Inc., Tranche C Term Loan, 4.750%, 6/01/2014(g)(j)		12,179,343
	5,395,000	Level 3 Financing, Inc., Tranche A Term Loan, 2.501%, 3/13/2014(g)		5,008,934
				30,367,229
		Total Bank Loans (Identified Cost $78,348,894)		82,117,158
Shares
	Common Stocks — 3.0%
		Biotechnology — 0.3%
	867,059	Vertex Pharmaceuticals, Inc.(e)		35,436,702
		Containers & Packaging — 0.1%
	460,656	Owens-Illinois, Inc.(e)		16,371,714
		Electric Utilities — 0.0%
	282,500	Duke Energy Corp.		4,610,400
		Electronic Equipment, Instruments & Components — 0.0%
	41,343	Corning, Inc.		835,542
		Food Products — 0.4%
	2,309,175	ConAgra Foods, Inc.		57,891,017
		Household Durables — 0.1%
	477,725	KB Home		8,001,894
	549,450	Lennar Corp., Class A		9,456,034
				17,457,928
		Media — 0.0%
	37,276	Dex One Corp.(e)		1,040,746
		Oil, Gas & Consumable Fuels — 0.2%
	846,398	Chesapeake Energy Corp.		20,008,849
	141,249	Spectra Energy Corp.		3,182,340
				23,191,189

See accompanying notes to financial statements.

47

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Shares	Description	Value (†)
	Pharmaceuticals — 1.5%
7,238,800	Bristol-Myers Squibb Co.	$	193,275,960
2,288	Teva Pharmaceutical Industries Ltd., Sponsored ADR		144,327
			193,420,287
	REITs — 0.4%
290,904	Apartment Investment & Management Co., Class A		5,355,542
889,730	Associated Estates Realty Corp.		12,269,377
201,557	Developers Diversified Realty Corp.		2,452,949
460,000	Equity Residential		18,009,000
123,159	Simon Property Group, Inc.		10,333,040
			48,419,908
	Thrifts & Mortgage Finance — 0.0%
4,794,025	Federal Home Loan Mortgage Corp.(e)(k)		6,088,412
	Total Common Stocks (Identified Cost $455,138,392)		404,763,845
Preferred Stocks — 1.9%
Convertible Preferred Stocks — 1.2%
	Automotive — 0.5%
1,476,621	Ford Motor Co. Capital Trust II, 6.500%(e)		68,515,214
	Capital Markets — 0.1%
183,851	Newell Financial Trust I, 5.250%		7,400,003
	Commercial Banks — 0.0%
5,933	Wells Fargo & Co., Series L, Class A, 7.500%		5,796,541
	Diversified Consumer Services — 0.0%
6	Six Flags, Inc., 7.250%(e)		3
	Diversified Financial Services — 0.2%
16,622	Bank of America Corp., Series L, 7.250%		16,248,005
203,258	Sovereign Capital Trust IV, 4.375%		6,504,256
			22,752,261
	Electric Utilities — 0.1%
380,577	AES Trust III, 6.750%		17,197,323
107,725	CMS Energy Trust I, 7.750%(c)(l)		3,770,375
			20,967,698
	Machinery — 0.0%
184,491	United Rentals Trust I, 6.500%		5,557,791
	Oil, Gas & Consumable Fuels — 0.1%
52,020	Chesapeake Energy Corp., 4.500%		4,349,912
159,477	El Paso Energy Capital Trust I, 4.750%		5,960,453
			10,310,365
	REITs — 0.0%
42,700	FelCor Lodging Trust, Inc., Series A, 7.800%(e)		772,870
	Semiconductors & Semiconductor Equipment — 0.2%
32,320	Lucent Technologies Capital Trust I, 7.750%		25,726,720
	Total Convertible Preferred Stocks (Identified Cost $152,365,283)		167,799,466

Shares	Description	Value (†)
Non-Convertible Preferred Stocks — 0.7%
	Banking — 0.2%
36,916	GMAC, Inc., Series G, 144A, 7.000%	$	28,139,221
	Diversified Financial Services — 0.0%
35,000	Bank of America Corp., 6.375%		727,300
	Electric Utilities — 0.0%
393	Entergy New Orleans, Inc., 4.750%		29,033
	REITs — 0.1%
1,596	Highwoods Properties, Inc., Series A, 8.625%		1,688,269
116,192	ProLogis, Series C, 8.540%		5,613,235
			7,301,504
	Software — 0.2%
26,000	Falcons Funding Trust I, (Step to 10.875% on 3/15/2015, variable rate after 3/15/2020), 144A, 8.875%(f)		26,154,375
	Thrifts & Mortgage Finance — 0.2%
389,800	Countrywide Capital IV, 6.750%		8,369,006
75,100	Federal Home Loan Mortgage Corp., 5.000%(e)(k)		116,405
1,741,500	Federal Home Loan Mortgage Corp., 5.570%(e)(k)		1,480,275
444,350	Federal Home Loan Mortgage Corp., 5.660%(e)(k)		372,810
120,695	Federal Home Loan Mortgage Corp., 5.700%(e)(k)		210,009
283,000	Federal Home Loan Mortgage Corp., 5.790%(e)(k)		458,460
81,450	Federal Home Loan Mortgage Corp., 5.810%(e)(k)		132,764
219,750	Federal Home Loan Mortgage Corp., 5.900%(e)(k)		197,555
96,600	Federal Home Loan Mortgage Corp., 6.000%(e)(k)		178,710
89,300	Federal Home Loan Mortgage Corp., 6.420%(e)(k)		170,563
392,116	Federal Home Loan Mortgage Corp., 6.550%(e)(k)		388,195
3,856,103	Federal Home Loan Mortgage Corp., (fixed rate to 12/31/2012, variable rate thereafter), 8.375%(e)(k)		4,897,251
192,100	Federal National Mortgage Association, 4.750%(e)(k)		259,335
144,900	Federal National Mortgage Association, 5.125%(e)(k)		218,799
104,850	Federal National Mortgage Association, 5.375%(e)(k)		179,293
56,600	Federal National Mortgage Association, 5.810%(e)(k)		96,220
87,300	Federal National Mortgage Association, 6.750%(e)(k)		81,189
250,000	Federal National Mortgage Association, 8.250%(e)(k)		300,000

See accompanying notes to financial statements.

48

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Shares		Description	Value (†)
		Thrifts & Mortgage Finance — continued
	6,747,525	Federal National Mortgage Association, (fixed rate to 12/13/2010, variable rate thereafter), 8.250%(e)(k)	$	8,569,357
				26,676,196
		Total Non-Convertible Preferred Stocks (Identified Cost $334,190,469)		89,027,629
		Total Preferred Stocks (Identified Cost $486,555,752)		256,827,095
	Closed-End Investment Companies — 0.3%
	1,033,275	Dreyfus High Yield Strategies		4,484,413
	88,955	DWS High Income Trust		810,380
	860,000	Highland Credit Strategies Fund		6,794,000
	110,211	Morgan Stanley Emerging Markets Debt Fund, Inc.		1,150,603
	2,055,800	Western Asset High Income Opportunity Fund, Inc.		13,074,888
	1,217,820	Western Asset Managed High Income Fund, Inc.		7,611,375
		Total Closed-End Investment Companies (Identified Cost $38,848,137)		33,925,659
	Warrants — 0.1%
		Pharmaceuticals — 0.1%
	574,624	Valeant Pharmaceuticals International(c)(e)(l) (Identified Cost $0)		6,493,251
Principal Amount (‡)
	Short-Term Investments — 1.0%
$	387,537	Repurchase Agreement with State Street Corporation, dated 3/31/2010 at 0.000% to be repurchased at $387,537 on 4/01/2010, collateralized by $400,000 U.S. Treasury Bill, due 7/08/2010 valued at $399,848 including accrued interest (Note 2 of Notes to Financial Statements)		387,537
	134,087,725	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2010 at 0.000% to be repurchased at $134,087,725 on 4/01/2010, collateralized by $134,955,000 Federal National Mortgage Association, 1.750% due 3/23/2011 valued at $136,641,938; $130,000 Federal Home Loan Mortgage Corp., 3.000% due 1/21/2014 valued at $130,975 including accrued interest (Note 2 of Notes to Financial Statements)		134,087,725
		Total Short-Term Investments (Identified Cost $134,475,262)		134,475,262
		Total Investments — 98.3% (Identified Cost $12,674,622,995)(a)		13,109,481,958
		Other assets less liabilities—1.7%		224,971,207
		Net Assets — 100.0%	$	13,334,453,165
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 25.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.

(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.):
	At March 31, 2010, the net unrealized appreciation on investments based on a cost of $12,692,583,748 for federal income tax purposes was as follows:
	Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	1,162,045,540
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(745,147,330	)
	Net unrealized appreciation	$	416,898,210
(b)	Variable rate security. Rate as of March 31, 2010 is disclosed.
(c)	Illiquid security. At March 31, 2010, the value of these securities amounted to $466,317,402 or 3.5% of net assets.
(d)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
(e)	Non-income producing security.
(f)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(g)	Variable rate security. Rate shown represents the weighted average rate at March 31, 2010.
(h)	Issuer has filed for bankruptcy.
(i)	All or a portion of this security has not settled. Contract rates are not determined and do not take effect until settlement date.
(j)	All or a portion of interest payment is paid-in-kind.
(k)	Future dividend payments have been eliminated as the issuer has been placed in conservatorship.
(l)	Fair valued security by the Fund’s investment adviser. At March 31, 2010 the value of these securities amounted to $10,263,626 or 0.1% of net assets.
144A	Securities 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 March 31, 2010, the value of these securities amounted to $1,666,736,230 or 12.5% of net assets.
ABS	Asset-Backed Securities
ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs are significantly influenced by trading on exchanges not located in the United States.
AGMC	Assured Guaranty Municipal Corp.
AMBAC	American Municipal Bond Assurance Corp.
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
MBIA	Municipal Bond Investors Assurance Corp.
MTN	Medium Term Note
REITs	Real Estate Investment Trusts
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
ISK	Icelandic Krona
KRW	South Korean Won
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar
SGD	Singapore Dollar

See accompanying notes to financial statements.

49

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Industry Summary at March 31, 2010 (Unaudited)

Treasuries	13.8	%
Non-Captive Diversified	8.3
Banking	6.7
Technology	5.0
Automotive	4.9
Wirelines	4.8
Sovereigns	4.7
Non-Captive Consumer	4.1
Healthcare	3.6
Electric	3.4
Pharmaceuticals	3.0
Paper	2.6
Retailers	2.2
Pipelines	2.2
Media Cable	2.0
Airlines	2.0
Other Investments, less than 2% each	24.0
Short-Term Investments	1.0
Total Investments	98.3
Other assets less liabilities	1.7
Net Assets	100.0	%

Currency Exposure at March 31, 2010 as a Percentage of Net Assets (Unaudited)

United States Dollar	72.5	%
Canadian Dollar	11.1
New Zealand Dollar	3.2
Brazilian Real	2.2
Other, less than 2% each	9.3
Total Investments	98.3
Other assets less liabilities	1.7
Net Assets	100.0	%

See accompanying notes to financial statements.

50

STATEMENTS OF ASSETS AND LIABILITIES

March 31, 2010 (Unaudited)

	Core Plus Bond Fund			High Income Fund			International Bond Fund
ASSETS
Investments at cost	$	301,133,089		$	107,704,594		$	32,183,578
Repurchase agreement(s) at cost		8,079,061			14,324,664			391,292
Net unrealized appreciation (depreciation)		14,654,565			14,648,226			(272,847	)
Investments at value		323,866,715			136,677,484			32,302,023
Cash		—			12,654			—
Due from custodian (Note 2)		—			—			—
Foreign currency at value (identified cost $0, $0, $269,805, $0 and $9,100,628)		—			—			272,009
Receivable for Fund shares sold		802,916			533,007			154,699
Receivable for securities sold		1,624,856			780,507			—
Unrealized appreciation on forward foreign currency contracts (Note 2)		—			—			19,322
Dividend and interest receivable		3,939,246			1,925,541			502,304
Tax reclaims receivable		11,107			—			2,015
TOTAL ASSETS		330,244,840			139,929,193			33,252,372
LIABILITIES
Payable for securities purchased		6,258,265			542,868			—
Payable for delayed delivery securities purchased (Note 2)		3,219,285			—			—
Payable for Fund shares redeemed		783,683			686,619			47,624
Unrealized depreciation on forward foreign currency contracts (Note 2)		—			—			49,537
Due to broker (Note 2)		—			—			—
Dividends payable		—			—			—
Management fees payable (Note 6)		116,684			59,503			5,715
Administrative fees payable (Note 6)		13,377			5,663			1,390
Deferred Trustees’ fees (Note 6)		203,875			77,974			19,011
Foreign taxes payable (Note 2)		—			81			—
Other accounts payable and accrued expenses		52,113			17,423			18,772
TOTAL LIABILITIES		10,647,282			1,390,131			142,049
NET ASSETS	$	319,597,558		$	138,539,062		$	33,110,323
NET ASSETS CONSIST OF:
Paid-in capital	$	322,291,666		$	141,913,428		$	33,242,316
Distributions in excess of net investment income		(584,654	)		(352,714	)		(258,190	)
Accumulated net realized gain (loss) on investments and foreign currency transactions		(16,768,458	)		(17,672,050	)		442,857
Net unrealized appreciation (depreciation) on investments and foreign currency translations		14,659,004			14,650,398			(316,660	)
NET ASSETS	$	319,597,558		$	138,539,062		$	33,110,323
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	159,931,944		$	69,903,532		$	17,659,312
Shares of beneficial interest		13,230,609			14,540,220			1,715,792
Net asset value and redemption price per share	$	12.09		$	4.81		$	10.29
Offering price per share (100/[100-maximum sales charge] of net asset value) (Note 1)	$	12.66		$	5.04		$	10.77
Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	5,476,760		$	1,442,847		$	—
Shares of beneficial interest		451,586			299,580			—
Net asset value and offering price per share	$	12.13		$	4.82		$	—
Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	101,735,792		$	19,597,092		$	6,869,418
Shares of beneficial interest		8,411,369			4,070,250			668,995
Net asset value and offering price per share	$	12.10		$	4.81		$	10.27
Class Y shares:
Net assets	$	52,453,062		$	47,595,591		$	8,581,593
Shares of beneficial interest		4,315,534			9,909,405			835,233
Net asset value, offering and redemption price per share	$	12.15		$	4.80		$	10.27
Admin Class shares:
Net assets	$	—		$	—		$	—
Shares of beneficial interest		—			—			—
Net asset value, offering and redemption price per share	$	—		$	—		$	—

See accompanying notes to financial statements.

51

Limited Term Government and Agency Fund			Strategic Income Fund
$	228,625,259		$	12,540,147,733
	8,283,850			134,475,262
	7,512,008			434,858,963
	244,421,117			13,109,481,958
	—			652,960
	—			2,993,578
	—			8,617,625
	2,006,737			38,537,318
	—			26,202,129
	—			—
	776,955			199,835,733
	—			258,837
	247,204,809			13,386,580,138
	4,796,454			10,168,227
	—			—
	631,127			31,013,370
	—			—
	—			2,993,578
	136,366			13
	93,007			6,272,185
	9,949			546,718
	192,597			482,850
	—			103,764
	70,282			546,268
	5,929,782			52,126,973
$	241,275,027		$	13,334,453,165
$	236,061,420		$	13,461,880,017
	(495,323	)		(14,888,682	)
	(1,803,078	)		(546,384,342	)
	7,512,008			433,846,172
$	241,275,027		$	13,334,453,165
$	130,210,505		$	5,806,911,701
	11,014,234			406,552,034
$	11.82		$	14.28
$	12.19		$	14.95
$	4,118,204		$	145,441,904
	348,706			10,123,378
$	11.81		$	14.37
$	61,745,933		$	5,111,328,617
	5,218,994			356,043,181
$	11.83		$	14.36
$	45,200,385		$	2,270,769,901
	3,812,043			159,087,774
$	11.86		$	14.27
$	—		$	1,042
	—			73
$	—		$	14.27

52

STATEMENTS OF OPERATIONS

For the Six Months Ended March 31, 2010 (Unaudited)

	Core Plus Bond Fund			High Income Fund			International Bond Fund
INVESTMENT INCOME
Interest	$	7,913,551		$	6,912,354		$	494,824
Dividends		18,445			114,266			—
Less net foreign taxes withheld		—			—			(1,722	)
		7,931,996			7,026,620			493,102
Expenses
Management fees (Note 6)		626,152			509,792			91,121
Service and distribution fees (Note 6)		689,767			183,655			46,769
Trustees’ fees and expenses (Note 6)		10,277			7,958			5,865
Administrative fees (Note 6)		72,863			41,184			7,360
Custodian fees and expenses		13,845			37,323			22,319
Transfer agent fees and expenses (Note 6)		160,588			96,346			3,866
Audit and tax services fees		23,219			22,955			23,279
Legal fees		2,819			1,961			255
Shareholder reporting expenses		24,155			12,859			1,819
Registration fees		33,479			40,244			25,251
Fee/expense recovery (Note 6)		2,915			—			—
Miscellaneous expenses		6,981			5,703			3,174
Total expenses		1,667,060			959,980			231,078
Less fee reduction and/or expense reimbursement (Note 6)		—			(12,142	)		(55,220	)
Net expenses		1,667,060			947,838			175,858
Net investment income		6,264,936			6,078,782			317,244
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		4,299,842			11,984,297			479,129
Foreign currency transactions		(924	)		(11,211	)		60,466
Net change in unrealized appreciation (depreciation) on:
Investments		1,887,367			30,093			(1,536,741	)
Foreign currency translations		4,439			11,605			(123,445	)
Net realized and unrealized gain (loss) on investments and foreign currency transactions		6,190,724			12,014,784			(1,120,591	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	12,455,660		$	18,093,566		$	(803,347	)

See accompanying notes to financial statements.

53

Limited Term Government and Agency Fund			Strategic Income Fund
$	3,246,814		$	418,301,975
	—			15,771,000
	—			—
	3,246,814			434,072,975
	560,201			36,112,550
	459,794			32,757,641
	9,644			102,803
	54,298			3,133,800
	13,133			311,435
	113,742			4,979,087
	23,303			29,197
	2,190			132,282
	10,690			592,310
	34,030			123,397
	—			—
	6,205			198,624
	1,287,230			78,473,126
	(99,174	)		—
	1,188,056			78,473,126
	2,058,758			355,599,849
	4,334,222			105,813,570
	—			1,364,628
	401,050			748,614,760
	—			(2,864,688	)
	4,735,272			852,928,270
$	6,794,030		$	1,208,528,119

54

STATEMENTS OF CHANGES IN NET ASSETS

	Core Plus Bond Fund						High Income Fund						International Bond Fund
	Six Months  Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009			Six Months  Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009			Six Months  Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009
FROM OPERATIONS:
Net investment income	$	6,264,936		$	10,726,024		$	6,078,782		$	7,929,754		$	317,244		$	501,191
Net realized gain (loss) on investments and foreign currency transactions		4,298,918			1,047,585			11,973,086			(2,943,074	)		539,595			246,125
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		1,891,806			27,447,211			41,698			23,846,800			(1,660,186	)		2,396,258
Net increase (decrease) in net assets resulting from operations		12,455,660			39,220,820			18,093,566			28,833,480			(803,347	)		3,143,574
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(4,270,353	)		(7,509,410	)		(2,532,888	)		(3,638,806	)		(312,837	)		(80,043	)
Class B		(143,617	)		(436,844	)		(51,162	)		(124,178	)		—			—
Class C		(2,238,071	)		(2,761,267	)		(640,109	)		(969,430	)		(135,971	)		(13,441	)
Class Y		(1,360,265	)		(1,308,176	)		(3,215,877	)		(3,008,116	)		(307,238	)		(240,546	)
Admin Class		—			—			—			—			—			—
Net realized capital gains
Class A		—			—			—			—			(81,934	)		—
Class B		—			—			—			—			—			—
Class C		—			—			—			—			(46,824	)		—
Class Y		—			—			—			—			(94,216	)		—
Total distributions		(8,012,306	)		(12,015,697	)		(6,440,036	)		(7,740,530	)		(979,020	)		(334,030	)
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		55,872,502			58,618,493			(58,167,092	)		109,311,312			10,409,757			9,056,042
Redemption fees
Class A		—			—			—			17,604			—			—
Class B		—			—			—			697			—			—
Class C		—			—			—			4,945			—			—
Class Y		—			—			—			3,996			—			—
Total redemption fees		—			—			—			27,242			—			—
Net increase (decrease) in net assets		60,315,856			85,823,616			(46,513,562	)		130,431,504			8,627,390			11,865,586
NET ASSETS
Beginning of the period		259,281,702			173,458,086			185,052,624			54,621,120			24,482,933			12,617,347
End of the period	$	319,597,558		$	259,281,702		$	138,539,062		$	185,052,624		$	33,110,323		$	24,482,933
UNDISTRIBUTED NET INVESTMENT INCOME/(DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME)	$	(584,654	)	$	1,162,716		$	(352,714	)	$	8,540		$	(258,190	)	$	180,612

See accompanying notes to financial statements.

55

Limited Term Government and Agency Fund						Strategic Income Fund
Six Months Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009			Six Months  Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009
$	2,058,758		$	5,607,171		$	355,599,849		$	729,275,012
	4,334,222			2,955,994			107,178,198			(765,289,471	)
	401,050			8,456,894			745,750,072			2,056,646,082
	6,794,030			17,020,059			1,208,528,119			2,020,631,623
	(1,569,225	)		(3,913,002	)		(168,103,267	)		(356,540,265	)
	(37,484	)		(112,841	)		(3,765,021	)		(9,240,752	)
	(487,918	)		(1,292,557	)		(128,831,535	)		(258,397,380	)
	(500,354	)		(471,487	)		(66,454,735	)		(89,955,755	)
	—			—			(9	)		—
	—			—			—			(33,148,981	)
	—			—			—			(1,003,570	)
	—			—			—			(25,254,965	)
	—			—			—			(5,262,204	)
	(2,594,981	)		(5,789,887	)		(367,154,567	)		(778,803,872	)
	35,038,039			51,940,484			(152,270,337	)		923,443,021
	—			—			—			—
	—			—			—			—
	—			—			—			—
	—			—			—			—
	—			—			—			—
	39,237,088			63,170,656			689,103,215			2,165,270,772
	202,037,939			138,867,283			12,645,349,950			10,480,079,178
$	241,275,027		$	202,037,939		$	13,334,453,165		$	12,645,349,950
$	(495,323	)	$	40,900		$	(14,888,682	)	$	(3,333,964	)

56

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:								Less Distributions:
	Net  asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net  investment income			Total distributions			Redemption fees (b)(c)
CORE PLUS BOND FUND
Class A
3/31/2010(h)	$	11.91	$	0.26	$	0.25		$	0.51		$	(0.33	)	$	(0.33	)	$	—
9/30/2009		10.54		0.59		1.44			2.03			(0.66	)		(0.66	)		—
9/30/2008		11.31		0.55		(0.71	)		(0.16	)		(0.61	)		(0.61	)		0.00
9/30/2007		11.23		0.50		0.14			0.64			(0.56	)		(0.56	)		0.00
9/30/2006		11.41		0.50		(0.07	)		0.43			(0.61	)		(0.61	)		0.00
9/30/2005		11.69		0.46		(0.18	)		0.28			(0.56	)		(0.56	)		0.00
Class B
3/31/2010(h)		11.95		0.22		0.24			0.46			(0.28	)		(0.28	)		—
9/30/2009		10.57		0.50		1.45			1.95			(0.57	)		(0.57	)		—
9/30/2008		11.31		0.44		(0.67	)		(0.23	)		(0.51	)		(0.51	)		0.00
9/30/2007		11.24		0.41		0.13			0.54			(0.47	)		(0.47	)		0.00
9/30/2006		11.41		0.41		(0.05	)		0.36			(0.53	)		(0.53	)		0.00
9/30/2005		11.70		0.37		(0.18	)		0.19			(0.48	)		(0.48	)		0.00
Class C
3/31/2010(h)		11.92		0.22		0.24			0.46			(0.28	)		(0.28	)		—
9/30/2009		10.55		0.51		1.44			1.95			(0.58	)		(0.58	)		—
9/30/2008		11.32		0.47		(0.71	)		(0.24	)		(0.53	)		(0.53	)		0.00
9/30/2007		11.25		0.41		0.13			0.54			(0.47	)		(0.47	)		0.00
9/30/2006		11.42		0.41		(0.05	)		0.36			(0.53	)		(0.53	)		0.00
9/30/2005		11.71		0.37		(0.18	)		0.19			(0.48	)		(0.48	)		0.00
Class Y
3/31/2010(h)		11.97		0.28		0.24			0.52			(0.34	)		(0.34	)		—
9/30/2009		10.60		0.62		1.44			2.06			(0.69	)		(0.69	)		—
9/30/2008		11.36		0.58		(0.70	)		(0.12	)		(0.64	)		(0.64	)		0.00
9/30/2007		11.29		0.54		0.13			0.67			(0.60	)		(0.60	)		0.00
9/30/2006		11.46		0.51		(0.04	)		0.47			(0.64	)		(0.64	)		0.00
9/30/2005		11.74		0.49		(0.18	)		0.31			(0.59	)		(0.59	)		0.00

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

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

(c) Effective June 2, 2008, redemption fees were eliminated.

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

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

See accompanying notes to financial statements.

57

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (d)(e)		Net assets, end of the period (000’s)		Net expenses (%) (f)(g)		Gross expenses (%) (g)		Net investment income (%)  (g)	Portfolio turnover rate (%)
$	12.09	4.31		$	159,932	0.90	(i)	0.90	(i)	4.37	44
	11.91	20.07			140,779	0.90		0.97		5.43	102
	10.54	(1.61	)		115,873	0.93		1.04		4.86	82
	11.31	5.70			105,780	1.04		1.09		4.41	69
	11.23	4.03			91,464	1.05		1.08		4.46	91
	11.41	2.43			105,111	1.13		1.18		3.93	64
	12.13	3.90			5,477	1.65	(i)	1.65	(i)	3.59	44
	11.95	19.19			7,028	1.65		1.72		4.66	102
	10.57	(2.21	)		10,481	1.70		1.80		3.92	82
	11.31	4.90			87,101	1.79		1.85		3.64	69
	11.24	3.26			109,782	1.80		1.83		3.72	91
	11.41	1.58			132,221	1.88		1.93		3.18	64
	12.10	3.93			101,736	1.65	(i)	1.65	(i)	3.63	44
	11.92	19.20			77,081	1.65		1.72		4.69	102
	10.55	(2.32	)		26,698	1.68		1.79		4.17	82
	11.32	4.91			12,690	1.78		1.82		3.66	69
	11.25	3.26			6,983	1.80		1.82		3.63	91
	11.42	1.59			6,065	1.88		1.93		3.17	64
	12.15	4.42			52,453	0.65	(i)	0.65	(i)	4.63	44
	11.97	20.37			34,394	0.65		0.68		5.67	102
	10.60	(1.36	)		20,407	0.68		0.75		5.14	82
	11.36	6.06			15,946	0.70		0.75		4.75	69
	11.29	4.28			11,986	0.80	(j)	0.80	(j)	4.58	91
	11.46	2.68			9,060	0.88		0.99		4.18	64

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

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

(h) For the six months ended March 31, 2010 (Unaudited).

(i) Includes fee/expense recovery of less than 0.01%.

(j) Includes fee/expense recovery of 0.06%.

58

FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:								Less Distributions:
	Net  asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions			Redemption fees (b)
HIGH INCOME FUND
Class A
3/31/2010(g)	$	4.49	$	0.17	$	0.33		$	0.50		$	(0.18	)	$	—		$	(0.18	)	$	—
9/30/2009		4.24		0.34		0.24			0.58			(0.33	)		—			(0.33	)		0.00	(h)
9/30/2008		5.12		0.34		(0.87	)		(0.53	)		(0.35	)		—			(0.35	)		0.00
9/30/2007		5.09		0.33		0.08			0.41			(0.38	)		—			(0.38	)		0.00
9/30/2006		4.98		0.34		0.11			0.45			(0.34	)		—			(0.34	)		0.00
9/30/2005		4.82		0.33		0.16			0.49			(0.33	)		—			(0.33	)		0.00
Class B
3/31/2010(g)		4.50		0.15		0.33			0.48			(0.16	)		—			(0.16	)		—
9/30/2009		4.25		0.31		0.25			0.56			(0.31	)		—			(0.31	)		0.00	(h)
9/30/2008		5.13		0.30		(0.87	)		(0.57	)		(0.31	)		—			(0.31	)		0.00
9/30/2007		5.10		0.29		0.07			0.36			(0.33	)		—			(0.33	)		0.00
9/30/2006		4.98		0.30		0.12			0.42			(0.30	)		—			(0.30	)		0.00
9/30/2005		4.83		0.29		0.15			0.44			(0.29	)		—			(0.29	)		0.00
Class C
3/31/2010(g)		4.50		0.15		0.32			0.47			(0.16	)		—			(0.16	)		—
9/30/2009		4.24		0.31		0.26			0.57			(0.31	)		—			(0.31	)		0.00	(h)
9/30/2008		5.12		0.31		(0.87	)		(0.56	)		(0.32	)		—			(0.32	)		0.00
9/30/2007		5.09		0.29		0.07			0.36			(0.33	)		—			(0.33	)		0.00
9/30/2006		4.98		0.30		0.11			0.41			(0.30	)		—			(0.30	)		0.00
9/30/2005		4.83		0.29		0.15			0.44			(0.29	)		—			(0.29	)		0.00
Class Y
3/31/2010(g)		4.49		0.17		0.32			0.49			(0.18	)		—			(0.18	)		—
9/30/2009		4.24		0.34		0.25			0.59			(0.34	)		—			(0.34	)		0.00	(h)
9/30/2008(i)		4.87		0.22		(0.65	)		(0.43	)		(0.21	)		—			(0.21	)		0.01
INTERNATIONAL BOND FUND
Class A
3/31/2010(g)	$	10.84	$	0.11	$	(0.32	)	$	(0.21	)	$	(0.26	)	$	(0.08	)	$	(0.34	)	$	—
9/30/2009		9.19		0.32		1.53			1.85			(0.20	)		—			(0.20	)		—
9/30/2008(j)		10.00		0.17		(0.79	)		(0.62	)		(0.19	)		—			(0.19	)		0.00	(k)
Class C
3/31/2010(g)		10.82		0.07		(0.32	)		(0.25	)		(0.22	)		(0.08	)		(0.30	)		—
9/30/2009		9.18		0.24		1.53			1.77			(0.13	)		—			(0.13	)		—
9/30/2008(j)		10.00		0.13		(0.81	)		(0.68	)		(0.15	)		—			(0.15	)		0.01	(k)
Class Y
3/31/2010(g)		10.82		0.13		(0.33	)		(0.20	)		(0.27	)		(0.08	)		(0.35	)		—
9/30/2009		9.18		0.33		1.53			1.86			(0.22	)		—			(0.22	)		—
9/30/2008(j)		10.00		0.18		(0.81	)		(0.63	)		(0.20	)		—			(0.20	)		0.01	(k)

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

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

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

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

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

See accompanying notes to financial statements.

59

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (c)(d)		Net assets, end of the period (000’s)		Net expenses (%) (e)(f)	Gross expenses (%) (f)	Net investment income (%)  (f)	Portfolio turnover rate (%)
$	4.81	11.26		$	69,904	1.15	1.18	7.17	20
	4.49	15.97			59,944	1.15	1.28	8.82	30
	4.24	(10.98	)		38,577	1.15	1.40	7.01	27
	5.12	8.10			32,603	1.18	1.43	6.40	41
	5.09	9.39			29,069	1.31	1.48	6.70	41
	4.98	10.34			25,817	1.58	1.72	6.60	42
	4.82	10.82			1,443	1.90	1.92	6.38	20
	4.50	15.06			1,569	1.90	2.06	8.32	30
	4.25	(11.64	)		2,267	1.90	2.15	6.15	27
	5.13	7.21			4,201	1.94	2.18	5.63	41
	5.10	8.79			7,283	2.08	2.25	6.00	41
	4.98	9.29			12,034	2.33	2.47	5.85	42
	4.81	10.59			19,597	1.90	1.93	6.40	20
	4.50	15.37			17,827	1.90	2.03	8.09	30
	4.24	(11.62	)		9,945	1.90	2.15	6.32	27
	5.12	7.22			5,275	1.93	2.17	5.63	41
	5.09	8.58			3,457	2.07	2.23	5.96	41
	4.98	9.29			3,554	2.33	2.47	5.82	42
	4.80	11.17			47,596	0.90	0.90	7.33	20
	4.49	16.29			105,713	0.90	0.92	8.32	30
	4.24	(9.10	)		3,833	0.90	1.15	8.03	27
$	10.29	(1.98	)	$	17,659	1.10	1.47	2.14	67
	10.84	20.41			8,479	1.10	2.11	3.29	91
	9.19	(6.37	)		1,953	1.10	2.95	2.66	60
	10.27	(2.32	)		6,869	1.85	2.22	1.40	67
	10.82	19.58			2,955	1.85	2.93	2.56	91
	9.18	(6.95	)		683	1.85	3.70	1.92	60
	10.27	(1.87	)		8,582	0.85	1.21	2.41	67
	10.82	20.73			13,049	0.85	1.92	3.53	91
	9.18	(6.39	)		9,981	0.85	2.48	2.74	60

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

(g) For the six months ended March 31, 2010 (Unaudited).

(h) Effective June 1, 2009, redemption fees were eliminated.

(i) From commencement of class operations on February 29, 2008 through September 30, 2008.

(j) For the period February 1, 2008 (inception) through September 30, 2008.

(k) Effective June 2, 2008, redemption fees were eliminated.

60

FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:							Less Distributions:
	Net  asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations		Dividends from net investment income			Total distributions
LIMITED TERM GOVERNMENT AND AGENCY FUND
Class A
3/31/2010(f)	$	11.60	$	0.12	$	0.25		$	0.37	$	(0.15	)	$	(0.15	)
9/30/2009		10.98		0.35		0.63			0.98		(0.36	)		(0.36	)
9/30/2008		11.00		0.45		0.02			0.47		(0.49	)		(0.49	)
9/30/2007		11.00		0.45		0.03			0.48		(0.48	)		(0.48	)
9/30/2006		11.09		0.39		(0.05	)		0.34		(0.43	)		(0.43	)
9/30/2005		11.30		0.28		(0.16	)		0.12		(0.33	)		(0.33	)
Class B
3/31/2010(f)		11.59		0.07		0.25			0.32		(0.10	)		(0.10	)
9/30/2009		10.97		0.26		0.63			0.89		(0.27	)		(0.27	)
9/30/2008		10.99		0.36		0.02			0.38		(0.40	)		(0.40	)
9/30/2007		10.98		0.37		0.03			0.40		(0.39	)		(0.39	)
9/30/2006		11.07		0.31		(0.05	)		0.26		(0.35	)		(0.35	)
9/30/2005		11.28		0.20		(0.17	)		0.03		(0.24	)		(0.24	)
Class C
3/31/2010(f)		11.61		0.07		0.25			0.32		(0.10	)		(0.10	)
9/30/2009		10.99		0.26		0.63			0.89		(0.27	)		(0.27	)
9/30/2008		11.00		0.36		0.03			0.39		(0.40	)		(0.40	)
9/30/2007		10.99		0.37		0.03			0.40		(0.39	)		(0.39	)
9/30/2006		11.08		0.31		(0.05	)		0.26		(0.35	)		(0.35	)
9/30/2005		11.30		0.20		(0.18	)		0.02		(0.24	)		(0.24	)
Class Y
3/31/2010(f)		11.64		0.13		0.25			0.38		(0.16	)		(0.16	)
9/30/2009		11.01		0.39		0.63			1.02		(0.39	)		(0.39	)
9/30/2008		11.03		0.47		0.02			0.49		(0.51	)		(0.51	)
9/30/2007		11.03		0.49		0.03			0.52		(0.52	)		(0.52	)
9/30/2006		11.13		0.43		(0.06	)		0.37		(0.47	)		(0.47	)
9/30/2005		11.34		0.31		(0.17	)		0.14		(0.35	)		(0.35	)

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

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

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

See accompanying notes to financial statements.

61

					Ratios to Average Net Assets:
Net  asset value, end of the period		Total return (%) (b)(c)	Net assets, end of the period (000’s)		Net expenses (%) (d)(e)	Gross expenses (%) (d)		Net investment income (%) (d)	Portfolio turnover rate (%)
$	11.82	3.18	$	130,211	0.90	0.99		2.00	50
	11.60	9.05		118,619	0.90	0.99		3.10	77
	10.98	4.29		105,047	0.92	1.07		4.04	52
	11.00	4.46		108,536	0.99	1.10		4.13	45
	11.00	3.20		114,180	1.04	1.09		3.57	50
	11.09	1.05		141,417	1.24	1.24		2.50	93
	11.81	2.80		4,118	1.65	1.74		1.28	50
	11.59	8.24		4,442	1.65	1.74		2.32	77
	10.97	3.52		4,532	1.67	1.82		3.29	52
	10.99	3.72		6,787	1.74	1.85		3.37	45
	10.98	2.36		9,952	1.79	1.84		2.79	50
	11.07	0.29		15,114	1.99	1.99		1.75	93
	11.83	2.79		61,746	1.65	1.74		1.26	50
	11.61	8.24		50,973	1.65	1.74		2.32	77
	10.99	3.62		22,711	1.66	1.83		3.29	52
	11.00	3.62		5,261	1.74	1.85		3.38	45
	10.99	2.46		4,230	1.79	1.84		2.81	50
	11.08	0.21		5,715	1.99	1.99		1.75	93
	11.86	3.30		45,200	0.65	0.74		2.22	50
	11.64	9.40		28,004	0.65	0.72		3.42	77
	11.01	4.55		6,577	0.67	0.72		4.28	52
	11.03	4.79		4,201	0.71	0.75		4.43	45
	11.03	3.43		2,461	0.74	0.74		3.89	50
	11.13	1.24		2,533	1.02	1.59	(g)	2.77	93

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

(f) For the six months ended March 31, 2010 (Unaudited).

(g) Represents the total expenses prior to reduction of a portion of the class’s transfer agent expenses.

62

FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:								Less Distributions:
	Net  asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net  investment income			Distributions from net realized capital gains			Total distributions			Redemption fees (b)(c)
STRATEGIC INCOME FUND
Class A
3/31/2010(h)	$	13.39	$	0.40	$	0.90		$	1.30		$	(0.41	)	$	—		$	(0.41	)	$	—
9/30/2009		12.10		0.87		1.36			2.23			(0.86	)		(0.08	)		(0.94	)		—
9/30/2008		15.18		0.96		(3.02	)		(2.06	)		(1.01	)		(0.01	)		(1.02	)		0.00
9/30/2007		14.60		0.80		0.60			1.40			(0.82	)		—			(0.82	)		0.00
9/30/2006		14.17		0.71		0.53			1.24			(0.81	)		—			(0.81	)		0.00
9/30/2005		13.57		0.66		0.70			1.36			(0.76	)		—			(0.76	)		0.00
Class B
3/31/2010(h)		13.46		0.35		0.92			1.27			(0.36	)		—			(0.36	)		—
9/30/2009		12.16		0.79		1.36			2.15			(0.77	)		(0.08	)		(0.85	)		—
9/30/2008		15.25		0.85		(3.04	)		(2.19	)		(0.89	)		(0.01	)		(0.90	)		0.00
9/30/2007		14.66		0.69		0.60			1.29			(0.70	)		—			(0.70	)		0.00
9/30/2006		14.22		0.61		0.52			1.13			(0.69	)		—			(0.69	)		0.00
9/30/2005		13.60		0.56		0.71			1.27			(0.65	)		—			(0.65	)		0.00
Class C
3/31/2010(h)		13.45		0.35		0.92			1.27			(0.36	)		—			(0.36	)		—
9/30/2009		12.15		0.79		1.37			2.16			(0.78	)		(0.08	)		(0.86	)		—
9/30/2008		15.24		0.85		(3.03	)		(2.18	)		(0.90	)		(0.01	)		(0.91	)		0.00
9/30/2007		14.65		0.69		0.60			1.29			(0.70	)		—			(0.70	)		0.00
9/30/2006		14.22		0.61		0.51			1.12			(0.69	)		—			(0.69	)		0.00
9/30/2005		13.60		0.55		0.72			1.27			(0.65	)		—			(0.65	)		0.00
Class Y
3/31/2010(h)		13.38		0.41		0.91			1.32			(0.43	)		—			(0.43	)		—
9/30/2009		12.09		0.90		1.36			2.26			(0.89	)		(0.08	)		(0.97	)		—
9/30/2008		15.17		1.00		(3.03	)		(2.03	)		(1.04	)		(0.01	)		(1.05	)		0.00
9/30/2007		14.59		0.85		0.59			1.44			(0.86	)		—			(0.86	)		0.00
9/30/2006		14.17		0.76		0.51			1.27			(0.85	)		—			(0.85	)		0.00
9/30/2005		13.57		0.70		0.70			1.40			(0.80	)		—			(0.80	)		0.00
Admin Class
3/31/2010*		13.87		0.11		0.42			0.53			(0.13	)		—			(0.13	)		—

* From commencement of Class operations on February 1, 2010 through March 31, 2010.

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

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

(c) Effective June 2, 2008, redemption fees were eliminated.

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

See accompanying notes to financial statements.

63

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (d)(e)		Net assets, end of the period (000’s)		Net expenses (%) (f)(g)	Gross expenses (%) (f)	Net investment income (%) (f)	Portfolio turnover rate (%)
$	14.28	9.86		$	5,806,912	0.96	0.96	5.75	14
	13.39	20.56			5,544,029	0.99	0.99	7.74	39
	12.10	(14.54	)		5,551,066	0.97	0.98	6.59	24
	15.18	9.90			5,749,315	1.00	1.00	5.39	22
	14.60	9.04			2,782,887	1.05	1.05	5.01	21
	14.17	10.20			977,198	1.18	1.18	4.71	14
	14.37	9.54			145,442	1.71	1.71	5.00	14
	13.46	19.62			148,887	1.74	1.74	7.02	39
	12.16	(15.19	)		161,751	1.72	1.73	5.78	24
	15.25	9.08			233,418	1.76	1.76	4.61	22
	14.66	8.22			179,927	1.79	1.79	4.26	21
	14.22	9.46			144,081	1.93	1.93	3.98	14
	14.36	9.55			5,111,329	1.71	1.71	5.00	14
	13.45	19.66			4,894,546	1.74	1.74	6.95	39
	12.15	(15.19	)		3,984,204	1.72	1.73	5.85	24
	15.24	9.08			3,843,823	1.75	1.75	4.63	22
	14.65	8.14			1,812,278	1.79	1.79	4.24	21
	14.22	9.45			765,200	1.93	1.93	3.93	14
	14.27	10.00			2,270,770	0.71	0.71	6.01	14
	13.38	20.91			2,057,888	0.72	0.72	7.76	39
	12.09	(14.34	)		783,058	0.72	0.72	6.88	24
	15.17	10.22			638,868	0.74	0.74	5.67	22
	14.59	9.28			271,065	0.78	0.78	5.30	21
	14.17	10.51			50,369	0.91	0.91	4.98	14
	14.27	3.83			1	1.22	1.22	4.97	14

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

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

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

(h) For the six months ended March 31, 2010 (Unaudited).

64

NOTES TO FINANCIAL STATEMENTS

March 31, 2010 (Unaudited)

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

Natixis Funds Trust I:

Loomis Sayles Core Plus Bond Fund (the “Core Plus Bond Fund”)

Loomis Sayles Funds II:

Loomis Sayles High Income Fund (the “High Income Fund”)

Loomis Sayles International Bond Fund (the “International Bond Fund”)

Loomis Sayles Limited Term Government and Agency Fund (the “Limited Term Government and Agency Fund”)

Loomis Sayles Strategic Income Fund (the “Strategic Income Fund”)

The Funds each offer Class A, Class C and Class Y shares. Effective February 1, 2010, Strategic Income Fund began offering Admin Class shares. Effective October 12, 2007, Class B shares are no longer offered. Existing Class B shareholders may continue to reinvest dividends into Class B shares and exchange their Class B shares for Class B shares of other Natixis Funds subject to existing exchange privileges as described in the Prospectus.

Class A shares of all Funds except Limited Term Government and Agency Fund are sold with a maximum front-end sales charge of 4.50%. Class A shares of Limited Term Government and Agency Fund are sold with a maximum front-end sales charge of 3.00%. Class B shares do not pay a front-end sales charge, but pay higher Rule 12b-1 fees than Class A shares for eight years (at which point they automatically convert to Class A shares), and are subject to a contingent deferred sales charge (“CDSC”) if those shares are redeemed within six years of purchase. Class C shares do not pay a front-end sales charge, do not convert to any other Class of shares and pay higher Rule 12b-1 fees than Class A shares and may be subject to a CDSC of 1.00% if those shares are redeemed within one year of acquisition except for reinvested distributions. Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class Y shares are generally intended for institutional investors with a minimum initial investment of $100,000, though some categories of investors are exempted from the minimum investment amount as outlined in the Fund’s Prospectus. Admin Class shares do not pay a front-end sales charge or a CDSC, but do pay a Rule 12b-1 fee. Admin Class shares are offered exclusively through intermediaries.

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

2.  Significant Accounting Policies.  The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions that have occurred through the date the financial statements were issued, and noted no items requiring recognition in the financial statements or additional disclosure in the Notes to Financial Statements.

a.  Valuation.  Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Funds by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Equity securities, including shares of closed-end investment companies and exchange-traded funds, for which market quotations are readily available are valued at market value, as reported by pricing services recommended by the investment adviser and approved by the Board of Trustees. Such pricing services generally use the security’s last sale price on the exchange or market where the security is primarily traded or, if there is no reported sale during the day, the closing bid price. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking a NOCP, at the most recent bid quotation on the applicable NASDAQ market. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Funds may be valued on the basis of a price provided by a principal market maker. Forward foreign currency contracts are valued utilizing interpolated prices determined from information provided by an independent pricing service. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser using consistently applied procedures under the general supervision of the Board of Trustees. Investments in other open-end investment companies are valued at their net asset value each day.

Certain Funds may hold securities traded in foreign markets. Foreign securities are valued at the market price in the foreign market. However, if events occurring after the close of the foreign market (but before the close of regular trading on the New York Stock Exchange) are believed to materially affect the value of those securities, such securities

65

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

are fair valued pursuant to procedures approved by the Board of Trustees. When fair valuing securities, the Funds may, among other things, use modeling tools or other processes that may take into account factors such as securities market activity and/or significant events that occur after the close of the foreign market and before the Funds calculate their net asset values.

b.  Security Transactions and Related Investment Income.  Security transactions are accounted for on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. Periodic principal adjustments for inflation-protected securities are recorded to interest income. Negative principal adjustments (in the event of deflation) are recorded as reductions of interest income to the extent of interest income earned, not to exceed the amount of positive principal adjustments on a cumulative basis. Distributions received from investments in securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Funds’ investments in real estate investment trusts (“REITs”) are reported to the Funds after the end of the fiscal year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Funds after the end of the fiscal year. Estimates are based on the most recent REIT distribution information available. Investment income is recorded net of foreign taxes withheld when applicable. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

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

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

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

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

d.  Forward Foreign Currency Contracts.  Each Fund may enter into forward foreign currency contracts. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell generally are used to hedge a Fund’s investments against currency fluctuation. Also, a contract to buy or sell can offset a previous contract. These contracts involve market risk in excess of the unrealized gain or loss reflected in the Funds’ Statements of Assets and Liabilities. The U.S. dollar value of the currencies a Fund has committed to buy or sell represents the aggregate exposure to each currency the Fund has acquired or hedged through currency contracts outstanding at period end. Gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Certain contracts may require the movement of cash or securities to or from the counterparty as collateral for the Funds’ or counterparty’s net obligations under the contracts.

e.  Federal and Foreign Income Taxes.  Each Trust treats each fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code 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 March 31, 2010 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years, where applicable, 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 six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

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

f.  Dividends and Distributions to Shareholders.  Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes for items such as foreign currency transactions, treasury inflation

66

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

protected bond adjustments, premium amortization, defaulted bond adjustments, paydown gains and losses, distribution redesignations, expired capital loss carryforwards and return of capital and capital gains distributions from REITS. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to deferred Trustees’ fees, wash sales, premium amortization accruals, forward contracts mark to market, dividends payable, securities lending collateral gain/loss adjustment, REIT basis adjustments, discount accretion on inflation-protected securities and defaulted bond interest. 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 year ended September 30, 2009 was as follows:

	2009 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
Core Plus Bond Fund	$	12,015,697	$	—	$	12,015,697
High Income Fund		7,740,530		—		7,740,530
International Bond Fund		334,030		—		334,030
Limited Term Government and Agency Fund		5,789,887		—		5,789,887
Strategic Income Fund		725,851,869		52,952,003		778,803,872

Differences between these amounts and those reported in the Statements of Changes in Net Assets, if any, are primarily attributable to different book and tax treatment for short-term capital gains.

As of September 30, 2009, the capital loss carryforwards and post-October losses were as follows:

	Core Plus  Bond Fund			High Income Fund			International Bond Fund			Limited  Term Government and Agency Fund			Strategic Income Fund
Capital loss carryforward:
Expires September 30, 2010	$	(19,393,733	)	$	(26,826,634	)	$	—		$	—		$	—
Expires September 30, 2014		(181,728	)		—			—			(1,425,832	)		—
Expires September 30, 2015		—			—			—			(4,336,746	)		—
Expires September 30, 2016		—			—			—			(100,316	)		—
Expires September 30, 2017		—			(33,112	)		—			—			(45,672,245	)
Total capital loss carryforward	$	(19,575,461	)	$	(26,859,746	)	$	—		$	(5,862,894	)	$	(45,672,245	)
Deferred net capital losses (post-October 2008)	$	(129,243	)	$	(2,276,152	)	$	(45,041	)	$	(83,587	)	$	(552,853,501	)

g.  Repurchase Agreements.  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.

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

As of March 31, 2010, there were no securities on loan. Excess collateral in the amount of $2,993,578 related to terminated loans with a bankrupt borrower, is held by State Street Bank on behalf of Strategic Income Fund. This amount is expected to be returned to the bankruptcy administrator before the end of the Fund’s fiscal year at September 30, 2010.

67

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

i.  Delayed Delivery Commitments.  Purchases of delayed delivery instruments may have a similar effect on a Fund’s net asset value as if the Fund had created a degree of leverage in its portfolio. The price of the underlying instruments and the date when they will be paid for are fixed at the time the transaction is negotiated. If a Fund enters into such a transaction, collateral consisting of liquid securities or cash and cash equivalents will be maintained in an amount at least equal to the commitment with the custodian and/or broker. Losses may arise due to changes in the market value of the underlying instruments or if the counterparty does not perform under the contract.

j.  Indemnifications.  Under the Trusts’ organizational documents, their 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.

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.);

• Level 3 – prices determined using significant unobservable inputs for situations where 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 following is a summary of the inputs used to value the Funds’ investments as of March 31, 2010, at value:

Core Plus Bond Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes
ABS Car Loan	$	—	$	5,245,337	$	1,139,886	$	6,385,223
All Other Bonds and Notes(a)		—		307,163,993		—		307,163,993
Total Bonds and Notes		—		312,409,330		1,139,886		313,549,216
Preferred Stocks
Banking		—		405,517		—		405,517
Thrift & Mortgage Finance		238,080		5,334		—		243,414
Total Preferred Stocks		238,080		410,851		—		648,931
Short-Term Investments		—		9,668,568		—		9,668,568
Total	$	238,080	$	322,488,749	$	1,139,886	$	323,866,715

(a) Major categories of the Fund’s investments are included in the Portfolio of Investments.

68

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

High Income Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes
Non-Convertible Bonds
Wirelines	$	—	$	9,217,796	$	261,812	$	9,479,608
All Other Non-Convertible Bonds(a)		—		82,222,033		—		82,222,033
Total Non-Convertible Bonds		—		91,439,829		261,812		91,701,641
Convertible Bonds(a)		—		25,152,031		—		25,152,031
Total Bonds and Notes		—		116,591,860		261,812		116,853,672
Bank Loans(a)		—		1,462,757		—		1,462,757
Preferred Stocks
Convertible Preferred Stocks
Automotive		20,880		—		—		20,880
All Other Convertible Preferred Stocks(a)		—		2,562,221		—		2,562,221
Total Convertible Preferred Stocks		20,880		2,562,221		—		2,583,101
Non-Convertible Preferred Stocks
Banking		—		208,857		—		208,857
Thrifts & Mortgage Finance		21,085		24,718		—		45,803
Total Non-Convertible Preferred Stocks		21,085		233,575		—		254,660
Total Preferred Stocks		41,965		2,795,796		—		2,837,761
Common Stocks(a)		1,158,331		—		—		1,158,331
Closed-End Investment Companies		40,299		—		—		40,299
Short-Term Investments		—		14,324,664		—		14,324,664
Total	$	1,240,595	$	135,175,077	$	261,812	$	136,677,484

(a) Major categories of the Fund’s investments are included in the Portfolio of Investments.

International Bond Fund

Asset Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Bonds and Notes
Non-Convertible Bonds	$	—	$	31,683,819	$	—	$	31,683,819
Convertible Bonds		—		226,912		—		226,912
Total Bonds and Notes		—		31,910,731		—		31,910,731
Short-Term Investments		—		391,292		—		391,292
Total Investments		—		32,302,023		—		32,302,023
Forward Foreign Currency Contracts (unrealized appreciation)		—		19,322		—		19,322
Total	$	—	$	32,321,345	$	—	$	32,321,345

Liability Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Forward Foreign Currency Contracts (unrealized depreciation)	$	—	$      (49,537	)	$	—	$      (49,537	)

(a) Major categories of the Fund’s investments and forward foreign currency contracts are included in the Portfolio of Investments.

69

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

Limited Term Government and Agency Fund

Asset Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Bonds and Notes	$	—	$	232,137,551	$	—	$	232,137,551
Short-Term Investments		—		12,283,566		—		12,283,566
Total	$	—	$	244,421,117	$	—	$	244,421,117

(a) Major categories of the Fund’s investments are included in the Portfolio of Investments.

Strategic Income Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes
Non-Convertible Bonds
Chemicals	$	—	$	109,345,678	$	16,744,640	$	126,090,318
Non-Captive Diversified		—		1,057,805,597		3,160,500		1,060,966,097
Property & Casualty Insurance		—		39,751,465		4,134,400		43,885,865
All Other Non-Convertible Bonds(a)		—		9,753,520,997		—		9,753,520,997
Total Non-Convertible Bonds		—		10,960,423,737		24,039,540		10,984,463,277
Convertible Bonds(a)		—		1,059,272,094		—		1,059,272,094
Municipals(a)		—		147,144,317		—		147,144,317
Total Bonds and Notes		—		12,166,840,148		24,039,540		12,190,879,688
Bank Loans(a)		—		82,117,158		—		82,117,158
Common Stocks(a)		404,763,845		—		—		404,763,845
Preferred Stocks
Convertible Preferred Stocks
Automotive		68,515,214		—		—		68,515,214
Capital Markets		—		7,400,003		—		7,400,003
Commercial Banks		5,796,541		—		—		5,796,541
Diversified Consumer Services		3		—		—		3
Diversified Financial Services		—		22,752,261		—		22,752,261
Electric Utilities		—		17,197,323		3,770,375		20,967,698
Machinery		—		5,557,791		—		5,557,791
Oil, Gas & Consumable Fuels		4,349,912		5,960,453		—		10,310,365
REITs		—		772,870		—		772,870
Semiconductors & Semiconductor Equipment		—		25,726,720		—		25,726,720
Total Convertible Preferred Stocks		78,661,670		85,367,421		3,770,375		167,799,466
Non-Convertible Preferred Stocks
Banking		—		28,139,221		—		28,139,221
Diversified Financial Services		727,300		—		—		727,300
Electric Utilities		—		29,033		—		29,033
REITs		5,613,235		1,688,269		—		7,301,504
Software		—		26,154,375		—		26,154,375
Thrifts & Mortgage Finance		15,368,004		11,308,192		—		26,676,196
Total Non-Convertible Preferred Stocks		21,708,539		67,319,090		—		89,027,629
Total Preferred Stocks		100,370,209		152,686,511		3,770,375		256,827,095

70

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

Strategic Income Fund

Asset Valuation Inputs (continued)

Description	Level 1		Level 2		Level 3		Total
Closed-End Investment Companies	$	33,925,659	$	—	$	—	$	33,925,659
Warrants(a)		—		—		6,493,251		6,493,251
Short-Term Investments		—		134,475,262		—		134,475,262
Total	$	539,059,713	$	12,536,119,079	$	34,303,166	$	13,109,481,958

(a) Major categories of the Fund’s investments are included in 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 March 31, 2010:

Core Plus Bond Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Net Purchases (Sales)			Net Transfers into/(out of) Level 3			Balance as of March 31, 2010
Bonds and Notes
ABS Car Loan	$	—	$	—	$	—	$	2	$	1,139,884		$	—		$	1,139,886
Total	$	—	$	—	$	—	$	2	$	1,139,884		$	—		$	1,139,886
High Income Fund Asset Valuation Inputs
Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Net Purchases (Sales)			Net Transfers into/(out of) Level 3			Balance as of March 31, 2010
Bonds and Notes
Non-Convertible Bonds
Collateralized Mortgage Obligations	$	389,767	$	—	$	22,453	$	21,542	$	(86,486	)	$	(347,276	)	$	—
Non-Captive Consumer		497,545		6,240		—		18,423		—			(522,208	)		—
Non-Captive Diversified		478,858		10,328		—		43,686		62,519			(595,391	)		—
Supranational		678,290		52,237		—		162,683		677,555			(1,570,765	)		—
Technology		900,000		3,158		—		127,344		—			(1,030,502	)		—
Wirelines		970,125		4,195		—		51,307		(961,181	)		197,366			261,812
Convertible Bonds
Technology		196,560		3,054		2,771		7,975		(28,000	)		(182,360	)		—
Wirelines		863,900		1,197		—		108,828		—			(973,925	)		—
Total	$	4,975,045	$	80,409	$	25,224	$	541,788	$	(335,593	)	$	(5,025,061	)	$	261,812

71

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

International Bond Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Net Transfers into/(out of) Level 3			Balance as of March 31, 2010
Bonds and Notes
Non-Convertible Bonds
Ireland	$	98,563	$	57		$	(1,861	)	$	147		$	(96,906	)	$	—		$	—
Supranational		67,829		3,052			—			11,791			—			(82,672	)		—
Total	$	166,392	$	3,109		$	(1,861	)	$	11,938		$	(96,906	)	$	(82,672	)	$	—
Limited Term Government and Agency Fund Asset Valuation Inputs
Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Net Transfers into/(out of) Level 3			Balance as of March 31, 2010
Bonds and Notes
ABS Home Equity	$	538,786	$	—		$	(141,942	)	$	457,162		$	(854,006	)	$	—		$	—
Total	$	538,786	$	—		$	(141,942	)	$	457,162		$	(854,006	)	$	—		$	—
Strategic Income Fund Asset Valuation Inputs
Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Net Transfers into/(out of) Level 3			Balance as of March 31, 2010
Bonds and Notes
Non-Convertible Bonds
Airlines	$	6,940,852	$	—		$	51,499		$	1,116,416		$	(321,869	)	$	(7,786,898	)	$	—
Automotive		2,526,146		17,881			—			87,398			—			(2,631,425	)		—
Chemicals		23,203,580		91,767			—			6,242,278			—			(12,792,985	)		16,744,640
Diversified Manufacturing		20,732,656		167,154			—			1,008,952			606,371			(22,515,133	)		—
Electric		4,708,532		(38,289	)		100,503			(20,972	)		(3,612,014	)		(1,137,760	)		—
Non-Captive Consumer		4,129,285		2,274			—			202,411			—			(4,333,970	)		—
Non-Captive Diversified		4,017,538		129,079			—			1,239,834			723,435			(2,949,386	)		3,160,500
Property & Casualty Insurance		—		1,678			—			1,457,522			—			2,675,200			4,134,400
Supranational		30,455,245		—			—			7,041,221			3,839,476			(41,335,942	)		—
Technology		225,000		790			—			31,836			—			(257,626	)		—
Convertible Bonds
Technology		3,394,300		35,254			28,704			174,512			(489,000	)		(3,143,770	)		—
Wirelines		57,319,500		79,390			—			7,220,735			—			(64,619,625	)		—
Preferred Stocks
Convertible Preferred Stocks
Electric Utilities		3,770,375		—			—			—			—			—			3,770,375
REITs		491,050		—			—			281,820			—			(772,870	)		—
Warrants
Pharmaceuticals		—		—			—			6,493,251			—			—			6,493,251
Total	$	161,914,059	$	486,978		$	180,706		$	32,577,214		$	746,399		$	(161,602,190	)	$	34,303,166

72

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

4.  Derivatives.  Derivative instruments are defined as financial instruments whose value and performance are based on the value and performance of another security or financial instrument. Derivative instruments that the Funds currently use include forward foreign currency contracts.

The Funds are subject to the risk that changes in foreign currency exchange rates will have an unfavorable effect on the value of Fund assets denominated in foreign currencies. The Funds may enter into forward foreign currency contracts for hedging purposes to protect the value of the Funds’ holdings of foreign securities. The Funds may also use forward foreign currency contracts to gain exposure to foreign currencies, regardless of whether securities denominated in such currencies are held in the Funds. During the six months ended March 31, 2010, High Income Fund engaged in forward foreign currency contract transactions for hedging purposes. During this same period, International Bond Fund engaged in forward foreign currency contract transactions for hedging purposes and to gain exposure to foreign currencies.

Each Fund is party to agreements with counterparties that govern transactions in forward foreign currency contracts. These agreements contain contingent features that allow the counterparties to terminate open contracts early if the net asset value of a Fund declines beyond a certain threshold. If such contingent features were to be triggered, the counterparties could request immediate settlement of open contracts at current fair value.

Transactions in derivative instruments for High Income Fund during the six months ended March 31, 2010, were as follows:

Realized Gain (Loss)	Forwards
Foreign exchange contracts	$	(12,761	)

Statements of Operations Location Included in Net realized gain (loss) on foreign currency transactions

Change in Unrealized Appreciation (Depreciation)	Forwards
Foreign exchange contracts	$	12,761

Statements of Operations Location Included in Net change in unrealized appreciation (depreciation) on foreign currency translations

The following is a summary of derivative instruments for International Bond Fund, as of March 31, 2010:

Asset Derivatives	Forwards
Foreign exchange contracts	$	19,322

Statements of Assets and Liabilities Location Unrealized appreciation on forward foreign currency contracts

Liability Derivatives	Forwards
Foreign exchange contracts	$	(49,537	)

Statements of Assets and Liabilities Location Unrealized depreciation on forward foreign currency contracts

Transactions in derivative instruments for International Bond Fund during the six months ended March 31, 2010, were as follows:

Realized Gain (Loss)	Forwards
Foreign exchange contracts	$	66,102

Statements of Operations Location Included in Net realized gain (loss) on foreign currency transactions

Change in Unrealized Appreciation (Depreciation)	Forwards
Foreign exchange contracts	$	(95,421	)

Statements of Operations Location Included in Net change in unrealized appreciation (depreciation) on foreign currency translations

73

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

Volume of derivative activity for High Income Fund and International Bond Fund, based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended March 31, 2010:

	Percentage of Net Assets
High Income Fund	Forwards*
Average Notional Amount Outstanding	0.14%
Highest Notional Amount Outstanding	0.00%
Lowest Notional Amount Outstanding	0.00%
Notional Amount Outstanding as of March 31, 2010	0.00%
International Bond Fund	Forwards
Average Notional Amount Outstanding	14.91%
Highest Notional Amount Outstanding	18.18%
Lowest Notional Amount Outstanding	10.04%
Notional Amount Outstanding as of March 31, 2010	14.83%

* Forward foreign currency contracts outstanding at September 30, 2009 were closed during the first month of the period and are included in average notional amount outstanding.

5.  Purchases and Sales of Securities.  For the six months ended March 31, 2010, purchases and sales of securities (excluding short-term investments and including paydowns) were as follows:

	U.S. Government and Agency Securities				Other Securities
Fund	Purchases		Sales		Purchases		Sales
Core Plus Bond Fund	$	50,136,655	$	76,361,036	$	136,911,663	$	52,916,062
High Income Fund		—		173,431		30,848,390		94,075,955
International Bond Fund		4,307,843		4,313,610		27,049,378		14,774,910
Limited Term Government and Agency Fund		91,313,702		86,654,519		45,474,297		22,783,942
Strategic Income Fund		162,676,309		—		1,611,826,374		1,703,346,108

6.  Management Fees and Other Transactions with Affiliates.

a.  Management Fees.  Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to each Fund. Under the terms of the management agreements, each Fund pays a management fee at the following annual rates, calculated daily and payable monthly, based on each Fund’s average daily net assets:

	Percentage of Average Daily Net Assets
Fund	First $100 million	Next $100 million	Next $1.8 billion	Next $13 billion	Over $15 billion
Core Plus Bond Fund	0.2500%	0.1875%	0.1875%	0.1875%	0.1875%
High Income Fund	0.6000%	0.6000%	0.6000%	0.6000%	0.6000%
International Bond Fund	0.6000%	0.6000%	0.6000%	0.6000%	0.6000%
Limited Term Government and Agency Fund	0.5000%	0.5000%	0.5000%	0.5000%	0.5000%
Strategic Income Fund	0.6500%	0.6500%	0.6000%	0.5500%	0.5400%

Natixis Asset Management Advisors, L.P. (“Natixis Advisors”), serves as the advisory administrator to Core Plus Bond Fund. Under the terms of the advisory administration agreement, the Fund pays an advisory administration fee at the following annual rates, calculated daily and payable monthly, based on its average daily net assets:

	Percentage of Average Daily Net Assets
Fund	First $100 million	Over $100 million
Core Plus Bond Fund	0.2500%	0.1875%

74

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

Management and advisory administration fees are presented in the Statements of Operations as management fees.

Loomis Sayles has given binding undertakings to the Funds to reduce 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 and extraordinary expenses. These undertakings are in effect until January 31, 2011 and will be reevaluated on an annual basis. Management fee payables, as reflected on the Statements of Assets and Liabilities, are net of fee reductions and/or expense reimbursements, if any, pursuant to these undertakings.

For the six months ended March 31, 2010, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:

	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Class A	Class B	Class C	Class Y	Admin Class
Core Plus Bond Fund	0.90%	1.65%	1.65%	0.65%	—
High Income Fund	1.15%	1.90%	1.90%	0.90%	—
International Bond Fund	1.10%	—	1.85%	0.85%	—
Limited Term Government and Agency Fund	0.90%	1.65%	1.65%	0.65%	—
Strategic Income Fund	1.25%	2.00%	2.00%	1.00%	1.50%

Loomis Sayles and Natixis Advisors have agreed to equally bear the fee reductions and/or expense reimbursements for the Core Plus Bond Fund.

Loomis Sayles (and Natixis Advisors for Core Plus Bond Fund) shall be permitted to recover expenses borne under the expense limitation agreements (whether through reduction of its management fees or otherwise) on a class by class basis in later periods to the extent the expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such reduced fees/expenses more than one year after the end of the fiscal year in which the fees/expenses were reduced.

For the six months ended March 31, 2010, the management fees and reductions of management fees for each Fund were as follows:

Fund	Gross Management Fees		Reductions  of Management Fees1		Net Management Fees		Percentage of Average Daily Net Assets
							Gross	Net
Core Plus Bond Fund	$	313,076	$	—	$	313,076	0.208%	0.208%
High Income Fund		509,792		12,142		497,650	0.600%	0.586%
International Bond Fund		91,121		55,220		35,901	0.600%	0.236%
Limited Term Government and Agency Fund		560,201		99,174		461,027	0.500%	0.411%
Strategic Income Fund		36,112,550		—		36,112,550	0.560%	0.560%

¹ Management fee reductions are subject to possible recovery until September 30, 2011.

For the six months ended March 31, 2010, the advisory administration fees for Core Plus Bond Fund were as follows:

Advisory Administration Fee	Percentage of Average Daily Net Assets
$ 313,076	0.208%

For the six months ended March 31, 2010, expense reimbursements related to the prior fiscal year were recovered as follows:

	Recovered Expenses
Fund	Class A		Class B		Class C		Class Y		Total
Core Plus Bond Fund	$	1,597	$	82	$	827	$	409	$	2,915

Certain officers and directors of Loomis Sayles and Natixis Advisors are also Trustees of the Funds. Loomis Sayles and Natixis Advisors are both limited partnerships indirectly owned by Natixis Global Asset Management, L.P. (“Natixis US”), which is part of Natixis Global Asset Management, an international asset management group based in Paris, France.

b.  Administrative Fees.  Natixis Advisors provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis

75

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0500% of the next $15 billion, 0.0425% of the next $30 billion and 0.0375% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

For the six months ended March 31, 2010, each Fund paid the following for administrative fees to Natixis Advisors:

Fund	Administrative Fees
Core Plus Bond Fund	$	72,863
High Income Fund		41,184
International Bond Fund		7,360
Limited Term Government and Agency Fund		54,298
Strategic Income Fund		3,133,800

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

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

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

Under the respective Class B (if applicable) and Class C Plans, each Fund pays Natixis Distributors a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Class B (if applicable) and Class C shares, as compensation for services provided by Natixis Distributors in providing personal services to investors in Class B (if applicable) and Class C shares and/or the maintenance of shareholder accounts.

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

Under the Admin Class Plan, the Strategic Income Fund pays Natixis Distributors a monthly distribution fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Admin Class shares, as compensation for services provided by Natixis Distributors in connection with the marketing or sale of Admin Class shares or for payments made by Natixis Distributors to securities dealers or other financial intermediaries as commissions, asset-based sales charges or other compensation with respect to the sale of Admin Class shares, or for providing personal services to Investors and/or the maintenance of shareholder accounts.

In addition, the Admin Class shares of the Strategic Income Fund may pay Natixis Distributors an administrative service fee, at an annual rate not to exceed 0.25% of the average daily net assets attributable to Admin Class shares. These fees are subsequently paid to securities dealers or financial intermediaries for providing personal services and/or account maintenance for their customers who hold such shares.

For the six months ended March 31, 2010 the Funds paid the following service and distribution fees:

	Service Fees									Distribution Fees
	Class A		Class B		Class C		Admin Class			Class B		Class C		Admin Class
Core Plus Bond Fund	$	193,475	$	7,780	$	116,293	$	—		$	23,339	$	348,880	$	—
High Income Fund		82,471		1,893		23,404		—			5,677		70,210		—
International Bond Fund		16,636		—		7,533		—			—		22,600		—
Limited Term Government and Agency Fund		158,362		5,294		70,064		—			15,883		210,191		—
Strategic Income Fund		7,068,933		183,195		6,238,982		—	(a)		549,583		18,716,948		—	(a)

(a) Amount is less than $1.

76

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

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

For the six months ended March 31, 2010, the Funds paid the following sub-transfer agent fees, which are reflected in transfer agent fees and expenses in the Statements of Operations.

Fund	Sub-Transfer Agent Fees
Core Plus Bond Fund	$	104,138
High Income Fund		78,391
International Bond Fund		2,845
Limited Term Government and Agency Fund		46,545
Strategic Income Fund		4,015,021

e.  Commissions.  The Funds have been informed that commissions (including CDSCs) on Fund shares retained by Natixis Distributors during the six months ended March 31, 2010 were as follows:

Fund	Commissions
Core Plus Bond Fund	$	186,018
High Income Fund		28,518
International Bond Fund		47,660
Limited Term Government and Agency Fund		108,321
Strategic Income Fund		3,768,767

f.  Trustees Fees and Expenses.   The Funds do not pay any compensation directly to its officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distributors, Natixis US or their affiliates. Effective January 1, 2010, the Chairperson of the Board receives a retainer fee at the annual rate of $250,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $80,000. 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, each committee chairman receives an additional retainer fee at an annual rate of $15,000. Each Contract Review and Governance 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 $7,500 for each Committee meeting that he or she attends in person and $3,750 for each meeting that he or she attends telephonically. Each member of the ad hoc Committee on Alternative Investments received a one-time fee of $10,000. The ad hoc Committee on Alternative Investments is not a standing committee. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2010, the Chairperson of the Board received a retainer fee at the annual rate of $200,000. The Chairperson did not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attended. Each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $65,000. Each Independent Trustee also received a meeting attendance fee of $7,500 for each meeting of the Board of Trustees that he or she attended in person and $3,750 for each meeting of the Board of Trustees that he or she attended telephonically. In addition, each committee chairman received an additional retainer fee at an annual rate of $10,000. Each Contract Review and Governance Committee member was compensated $5,000 for each Committee meeting that he or she attended in person and $2,500 for each meeting that he or she attended telephonically. Each Audit Committee member was compensated $6,250 for each Committee meeting that he or she attended in person and $3,125 for each meeting that he or she attended telephonically.

A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Funds until distributed in accordance with the provisions of the Plan. 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 Hansberger International Series 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 Hansberger International Series, and are normally reflected as Trustees’ fees and expenses in the Statements of Operations. 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.

77

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

g.  Payments by Affiliates.  For the six months ended March 31, 2010, Loomis Sayles reimbursed the Strategic Income Fund $76,238 for losses incurred in connection with a trading error.

7.  Line of Credit.  Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participates in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each Fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. 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.

Prior to March 10, 2010, each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participated in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each Fund that participated in the line of credit. Interest was charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 0.75%. In addition, a commitment fee of 0.125% 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.

For the six months ended March 31, 2010, the Funds had no borrowings under these agreements.

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

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

9.  Concentration of Ownership.  At March 31, 2010, the Loomis Sayles Employees’ Profit Sharing Retirement Plan held 23,063 shares of beneficial interest of Limited Term Government and Agency Fund and Natixis US owned shares equating to 18.75% of International Bond Fund’s net assets.

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

	Six Months Ended March 31, 2010					Year Ended September 30, 2009
Core Plus Bond Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	3,067,695		$	36,793,975		5,053,473		$	54,649,921
Issued in connection with the reinvestment of distributions	263,518			3,154,462		515,393			5,579,642
Redeemed	(1,920,885	)		(23,079,926	)	(4,737,622	)		(51,103,206	)
Net change	1,410,328		$	16,868,511		831,244		$	9,126,357
Class B
Issued from the sale of shares	36,046		$	432,842		72,713		$	778,608
Issued in connection with the reinvestment of distributions	9,146			109,781		28,331			305,872
Redeemed	(181,845	)		(2,184,667	)	(504,102	)		(5,425,057	)
Net change	(136,653	)	$	(1,642,044	)	(403,058	)	$	(4,340,577	)
Class C
Issued from the sale of shares	2,956,291		$	35,465,305		5,539,383		$	59,909,721
Issued in connection with the reinvestment of distributions	75,920			909,491		82,284			901,682
Redeemed	(1,088,541	)		(13,084,582	)	(1,683,762	)		(18,156,728	)
Net change	1,943,670		$	23,290,214		3,937,905		$	42,654,675
Class Y
Issued from the sale of shares	2,393,755		$	28,833,350		2,459,788		$	27,430,717
Issued in connection with the reinvestment of distributions	44,900			540,633		63,520			692,382
Redeemed	(995,437	)		(12,018,162	)	(1,576,971	)		(16,945,061	)
Net change	1,443,218		$	17,355,821		946,337		$	11,178,038
Increase (decrease) from capital share transactions	4,660,563		$	55,872,502		5,312,428		$	58,618,493

78

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

10.  Capital Shares (continued).

	Six Months Ended March 31, 2010					Year Ended September 30, 2009
High Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	4,281,291		$	20,088,342		9,902,651		$	37,553,280
Issued in connection with the reinvestment of distributions	409,977			1,909,509		702,667			2,621,142
Redeemed	(3,489,077	)		(16,356,008	)	(6,362,694	)		(24,378,951	)
Net change	1,202,191		$	5,641,843		4,242,624		$	15,795,471
Class B
Issued from the sale of shares	17,982		$	83,679		22,526		$	84,592
Issued in connection with the reinvestment of distributions	7,737			36,046		21,555			78,355
Redeemed	(74,608	)		(347,970	)	(229,184	)		(845,267	)
Net change	(48,889	)	$	(228,245	)	(185,103	)	$	(682,320	)
Class C
Issued from the sale of shares	862,143		$	4,027,332		2,411,038		$	9,092,790
Issued in connection with the reinvestment of distributions	78,136			364,286		155,802			577,576
Redeemed	(830,627	)		(3,874,502	)	(949,303	)		(3,508,124	)
Net change	109,652		$	517,116		1,617,537		$	6,162,242
Class Y
Issued from the sale of shares	4,273,201		$	19,873,256		22,731,680		$	88,407,570
Issued in connection with the reinvestment of distributions	619,703			2,865,579		650,415			2,696,934
Redeemed	(18,529,000	)		(86,836,641	)	(740,730	)		(3,068,585	)
Net change	(13,636,096	)	$	(64,097,806	)	22,641,365		$	88,035,919
Increase (decrease) from capital share transactions	(12,373,142	)	$	(58,167,092	)	28,316,423		$	109,311,312

	Six Months Ended March 31, 2010					Year Ended September 30, 2009
International Bond Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	1,173,859		$	12,549,232		672,013		$	6,666,998
Issued in connection with the reinvestment of distributions	22,686			238,157		5,103			49,865
Redeemed	(262,835	)		(2,830,351	)	(107,505	)		(999,973	)
Net change	933,710		$	9,957,038		569,611		$	5,716,890
Class C
Issued from the sale of shares	455,725		$	4,956,671		238,418		$	2,461,614
Issued in connection with the reinvestment of distributions	4,370			45,831		670			6,563
Redeemed	(64,199	)		(672,311	)	(40,421	)		(390,729	)
Net change	395,896		$	4,330,191		198,667		$	2,077,448
Class Y
Issued from the sale of shares	321,631		$	3,471,886		148,246		$	1,536,076
Issued in connection with the reinvestment of distributions	31,997			336,749		24,645			234,656
Redeemed	(724,001	)		(7,686,107	)	(54,815	)		(509,028	)
Net change	(370,373	)	$	(3,877,472	)	118,076		$	1,261,704
Increase (decrease) from capital share transactions	959,233		$	10,409,757		886,354		$	9,056,042

79

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

10.  Capital Shares (continued).

	Six Months Ended March 31, 2010					Year Ended September 30, 2009
Limited Term Government and Agency Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	4,708,910		$	55,242,284		8,687,955		$	97,183,574
Issued in connection with the reinvestment of distributions	97,005			1,136,421		242,614			2,733,365
Redeemed	(4,016,538	)		(47,152,830	)	(8,273,983	)		(93,400,549	)
Net change	789,377		$	9,225,875		656,586		$	6,516,390
Class B
Issued from the sale of shares	33,730		$	394,746		130,399		$	1,438,679
Issued in connection with the reinvestment of distributions	2,462			28,800		7,515			84,528
Redeemed	(70,755	)		(827,220	)	(167,898	)		(1,871,502	)
Net change	(34,563	)	$	(403,674	)	(29,984	)	$	(348,295	)
Class C
Issued from the sale of shares	1,972,537		$	23,120,590		6,162,236		$	68,267,485
Issued in connection with the reinvestment of distributions	19,247			225,584		42,444			479,083
Redeemed	(1,163,354	)		(13,639,930	)	(3,881,272	)		(43,578,196	)
Net change	828,430		$	9,706,244		2,323,408		$	25,168,372
Class Y
Issued from the sale of shares	2,748,448		$	32,332,750		2,463,987		$	28,003,881
Issued in connection with the reinvestment of distributions	13,227			155,624		14,127			160,181
Redeemed	(1,356,477	)		(15,978,780	)	(668,533	)		(7,560,045	)
Net change	1,405,198		$	16,509,594		1,809,581		$	20,604,017
Increase (decrease) from capital share transactions	2,988,442		$	35,038,039		4,759,591		$	51,940,484

80

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

10.  Capital Shares (continued).

	Six Months Ended March 31, 2010					Year Ended September 30, 2009
Strategic Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	56,218,087		$	778,170,863		197,022,094		$	2,182,492,582
Issued in connection with the reinvestment of distributions	10,162,335			140,306,622		27,449,011			301,119,073
Redeemed	(73,970,828	)		(1,023,343,406	)	(269,140,105	)		(2,956,389,363	)
Net change	(7,590,406	)	$	(104,865,921	)	(44,669,000	)	$	(472,777,708	)
Class B
Issued from the sale of shares	106,779		$	1,482,515		498,498		$	5,392,143
Issued in connection with the reinvestment of distributions	134,127			1,861,856		443,741			4,856,521
Redeemed	(1,177,001	)		(16,353,800	)	(3,184,682	)		(35,016,126	)
Net change	(936,095	)	$	(13,009,429	)	(2,242,443	)	$	(24,767,462	)
Class C
Issued from the sale of shares	31,487,862		$	437,439,812		123,246,746		$	1,377,861,744
Issued in connection with the reinvestment of distributions	4,341,729			60,244,405		11,167,692			123,558,637
Redeemed	(43,619,682	)		(606,102,482	)	(98,406,847	)		(1,085,168,243	)
Net change	(7,790,091	)	$	(108,418,265	)	36,007,591		$	416,252,138
Class Y
Issued from the sale of shares	34,386,943		$	476,337,708		132,053,741		$	1,485,053,461
Issued in connection with the reinvestment of distributions	1,670,606			23,062,883		2,940,277			33,107,757
Redeemed	(30,793,045	)		(425,378,324	)	(45,930,609	)		(513,425,165	)
Net change	5,264,504		$	74,022,267		89,063,409		$	1,004,736,053
Admin Class*
Issued from the sale of shares	72		$	1,002		—		$	—
Issued in connection with the reinvestment of distributions	1			9		—			—
Redeemed	—			—		—			—
Net change	73		$	1,011		—		$	—
Increase (decrease) from capital share transactions	(11,052,015	)	$	(152,270,337	)	78,159,557		$	923,443,021

* From commencement of Class operations on February 1, 2010 through March 31, 2010.

81

EQUITY FUNDS

SEMIANNUAL

March 31, 2010

Loomis Sayles Disciplined Equity Fund

Loomis Sayles Global Markets Fund

Loomis Sayles Growth Fund

Loomis Sayles Mid Cap Growth Fund

Loomis Sayles Value Fund

TABLE OF CONTENTS

Management Discussion and Performance page 1

Portfolio of Investments page 15

Financial Statements page 33

LOOMIS SAYLES DISCIPLINED EQUITY FUND

PORTFOLIO PROFILE

Objective:

Long-term growth of capital

Strategy:

Invests primarily in equity securities, including common stocks, convertible securities, and warrants; focuses on stocks of large-capitalization companies, but may invest in companies of any size

Fund Inception:

July 31, 2000

Managers:

Maureen G. Depp, CFA

Brian James, CFA

Loomis, Sayles & Company, L.P.

Symbols:

Class A	LSRRX
Class B	LSCBX
Class C	LSCCX
Class Y	LISRX

What You Should Know:

Growth stocks are generally more sensitive to market movements than value stocks. The fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. Fund shares should be viewed as a long-term investment.

Management Discussion

Equities generally marched ahead during the six months ended March 31, 2010, sustaining a rally that began in early 2009. The period began with the stock market producing solid gains in the final three months of 2009. While the rally paused during the first two months of 2010, signs of an improving economy increased investors’ appetite for risk in March and the rally returned. Gains in equity prices tended to be broad-based, with economically-sensitive sectors producing the best relative returns while defensive areas lagged.

For the six months ended March 31, 2010, Class A shares of Loomis Sayles Disciplined Equity Fund returned 9.57%. During the same period, the fund’s benchmark, the S&P 500 Index, returned 11.75%, while funds in Morningstar’s Large Growth category returned an average 11.38%.

WHAT WAS THE PRIMARY REASON FOR THE FUND’S UNDERPERFORMANCE?

The fund essentially matched the S&P 500 Index during the final three months of 2009, but lost ground during the first quarter of 2010. The primary reason for this underperformance was our emphasis on valuation and company quality – as reflected by factors such as balance sheet strength – during a period in which higher-risk, “momentum” stocks tended to turn in the strongest relative performance. In addition, individual stock selection, particularly in the energy and consumer staples sectors, held back overall results. During the period, we introduced the use of trading in call options – a form of equity derivatives – to manage risk and generate yield. The performance of these trades was in line with the fund’s overall results.

WHICH FACTORS CONTRIBUTED POSITIVELY TO FUND PERFORMANCE?

Holdings in the information technology, utilities and industrials sectors all helped support performance. Aided by a global economic expansion, technology companies experienced rebounding sales and increasing merger-and-acquisition activity. The sector’s solid balance sheets also attracted investors. Within the information technology group, Oracle, Apple and Hewlett-Packard did especially well. Software company Oracle successfully completed its acquisition of Sun Microsystems, while Apple enjoyed strong sales of its iPhone and personal computer products. Hewlett-Packard, meanwhile, saw steady gains in personal computers and corporate enterprise spending. Our success in utilities came from a decision to protect the fund against the threat of declining power prices. The top individual utility investment was Constellation Energy, which traded at a discounted price at the start of the period and outperformed the overall utilities sector due to specific business catalysts.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

Our investments in the energy and consumer staples sectors did not help performance. In energy, we did not invest early enough in two of the better-performing stocks, Anadarko Petroleum (sold from the portfolio), an independent exploration and production company, and Williams Companies, a natural gas corporation. In the same sector, positions in Marathon Oil, Pride International and Transocean also lagged. Pride was sold. Poor performance among the fund’s consumer staples holdings in the fourth quarter of 2009 held back results for the entire period. Disappointing staples positions included Whole Foods Market, Dr. Pepper Snapple, Avon Products and SUPERVALU. For the fund as a whole, the most notable individual detractors included QUALCOMM, a technology company whose share price fell after reporting disappointing quarterly results, and Owens-Illinois, a glass manufacturer affected by slumping sales. All of these poor performers were sold.

WHAT IS YOUR OUTLOOK?

We believe the stock market has the potential to produce positive returns over the next 12 months, although overall gains may be modest and interrupted by periodic reversals. Corporate cost-cutting programs have been responsible for most of the earnings growth that has occurred up until now. We believe the economy has stabilized, setting the stage for revenue improvements that can drive future profit growth. However, improved earnings also can trigger talk of higher interest rates, which, in turn, could restrain overall market performance.

1

LOOMIS SAYLES DISCIPLINED EQUITY FUND

Investment Results through March 31, 2010

PERFORMANCE IN PERSPECTIVE

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

Growth of a $10,000 Investment in Class A Shares^1,6

Average Annual Total Returns — March 31, 2010⁶

	6 MONTHS		1 YEAR		5 YEARS		SINCE FUND INCEPTION
CLASS A (Inception 11/30/01)1
Net Asset Value2	9.57	%	42.53	%	2.26	%	-0.30	%
With Maximum Sales Charge3	3.25		34.24		1.05		-0.90
CLASS B (Inception 9/12/03)1
Net Asset Value2	9.12		41.34		1.46		-1.11
With CDSC4	4.12		36.34		1.16		-1.11
CLASS C (Inception 9/12/03)1
Net Asset Value2	9.05		41.36		1.43		-1.15
With CDSC4	8.05		40.36		1.43		-1.15
CLASS Y (Inception 7/31/00)
Net Asset Value2	9.82		42.81		2.61		0.03
COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		SINCE FUND INCEPTION5
S&P 500 Index	11.75	%	49.77	%	1.92	%	-0.24	%
Morningstar Large Growth Fund Avg.	11.38		48.34		2.93		-1.94

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

Class Y shares are available to certain investors, as described in the prospectus.

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

PORTFOLIO FACTS

	% of Net Assets as of
FUND COMPOSITION	3/31/10	9/30/09
Common Stocks	96.3	97.4
Short-Term Investments and Other	3.7	2.6
	% of Net Assets as of
TEN LARGEST HOLDINGS	3/31/10	9/30/09
Oracle Corp.	4.8	2.5
Hewlett-Packard Co.	4.0	2.2
Microsoft Corp.	3.8	—
Google, Inc., Class A	3.3	1.7
Apple, Inc.	3.3	3.2
Merck & Co., Inc.	3.0	1.2
WellPoint, Inc.	2.9	—
Transocean Ltd.	2.8	—
Whirlpool Corp.	2.8	—
Pfizer, Inc.	2.8	2.4
	% of Net Assets as of
FIVE LARGEST INDUSTRIES	3/31/10	9/30/09
Computers & Peripherals	9.7	7.1
Software	8.6	3.5
Pharmaceuticals	7.3	5.7
Health Care Providers & Services	6.5	3.2
Oil, Gas & Consumable Fuels	6.2	10.1

Portfolio holdings and asset allocations will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio7	Net Expense  Ratio8
A	1.78%	1.25%
B	2.49	2.00
C	2.51	2.00
Y	1.38	1.00

NOTES TO CHARTS

See page 11 for a description of the indices.

¹ Prior to 9/15/03, performance of Class A shares is that of Retail Class shares, which were redesignated as Class A shares, restated to reflect the sales load of Class A shares. Prior to the inception of Retail Class shares (11/30/01) performance is that of Institutional Class shares, restated to reflect the higher net expenses and sales loads of Class A shares. Prior to the inception of Class B and C shares (9/12/03), performance is that of Institutional Class shares, restated to reflect the higher net expenses and sales loads of Class B and C shares. The fund revised its investment strategies on 10/1/09; performance may have been different had the current investment strategies been in place for all periods shown.

² Does not include a sales charge.

³ Includes maximum sales charge of 5.75%.

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

⁵ The since-inception performance comparisons shown are calculated from 8/1/00.

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

⁷ Before reductions and reimbursements.

⁸ After reductions and reimbursements. Expense reductions are contractual and are set to expire 1/31/11.

2

LOOMIS SAYLES GLOBAL MARKETS FUND

PORTFOLIO PROFILE

Objective:

Seeks high total return through a combination of capital appreciation and current income

Strategy:

Invests primarily in equity and fixed-income securities of U.S. and foreign issuers, including securities of issuers located in emerging markets

Fund Inception:

May 1, 1996

Managers:

Mark Baribeau, CFA

Dan Fuss, CFA, CIC

Warren Koontz, CFA, CIC

David Rolley, CFA

Loomis, Sayles &     Company, L.P.

Symbols:

Class A	LGMAX
Class C	LGMCX
Class Y	LSWWX

What You Should Know:

The fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The fund can invest a significant percentage of assets in debt securities that are rated below investment grade and the value of fund shares can be adversely affected by changes in economic conditions or other circumstances. In addition, the secondary market for these securities may lack liquidity. Fund shares should be viewed as a long-term investment.

Management Discussion

Equity markets around the world delivered solid returns during the six months ended March 31, 2010, as a global economic recovery continued to gain traction. Global bond markets produced uneven results. Sectors exposed to credit risk benefited from improved economic conditions. However, the longer-maturity sovereign debt of eurozone countries lost ground under a cloud of debt problems, and Japan’s bond market also suffered.

In this environment, Class A shares of Loomis Sayles Global Markets Fund returned 10.28%, for the six months ended March 31, 2010. For the same period, the fund’s primary benchmark, the MSCI World Index (common stocks from developed countries around the world) returned 7.67% while its secondary benchmark, Citigroup World Government Bond Index (government bonds issued in the United States and other developed countries) returned -3.23%. The average return on the funds in Morningstar’s World Allocation category was 5.38%. Both the equity and bond portions of the fund performed well for the period, reflecting strong markets for U.S. dollar-denominated bonds and vigorous gains in the stock market.

WHAT WAS THE PRIMARY REASON FOR THE FUND’S OUTPERFORMANCE?

Security selection on both the bond and stock sides generally accounted for the fund’s performance advantage over the index and peer group average. Sector and currency allocations in fixed-income gave the fund a comfortable edge over these comparative measures during the period.

WHICH FACTORS POSITIVELY CONTRIBUTED TO THE FUND’S PERFORMANCE?

Within the equity portion of the portfolio, consumer discretionary and information technology stocks performed particularly well during the period. Priceline.com and Amazon.com were among the fund’s top performers. Amazon benefited from expanded product offerings, including the Kindle digital reader. Priceline was up after the company beat its own earnings estimates. Apple was another solid performer as the company recently reported its best quarter ever.

During the period, we continued to focus on strong, fundamentally-driven opportunities around the world. We added to positions in companies with improving earnings outlooks as we trimmed or eliminated holdings showing signs of weakness. The most notable change in our sector weights was a reduction in financial stocks.

Within the bond portion of the portfolio, security selection and country allocations were positives. High-yield corporate issues denominated in U.S. dollars were among the best performers, and an overweight in this area helped. We kept our focus on shorter-maturity, high-yield corporate bonds to keep yield in the higher ranges until securities with longer maturities offer better value. Emerging markets also benefited returns.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

Some disappointing industrial stocks detracted from performance. Highly regarded Spanish wind turbine manufacturer Gamesa fell on weakness in the turbine market. Volvo shares declined when the company reported a drop in sales late in 2009 and an anticipated improvement in volume appeared to stall out. Piraeus Bank, QUALCOMM and Southwestern Energy also detracted from performance. The Greek debt crisis hurt Piraeus. We sold Gamesa, Volvo and Piraeus and trimmed our position in Southwestern Energy as its price fell amid pricing concerns for natural gas. Wireless chipmaker QUALCOMM reported disappointing earnings and also was sold from the portfolio.

Corporate bonds with longer maturities were weak. However, the fund’s duration – a measure of interest-rate sensitivity – was shorter than the duration of its benchmark, which aided relative performance. The fund’s exposure to weaker currencies – namely the Norwegian krone and the Polish zloty – also detracted from returns. The weakest performers on the bond side were lower-yielding government bonds denominated in the euro, the Japanese yen and the British pound.

WHAT IS YOUR OUTLOOK?

We believe the stock market has the potential to produce positive returns over the next 12 months, although overall gains may be modest and interrupted by periodic reversals. Corporate cost-cutting programs have been responsible for most of the earnings growth that has occurred up until now. We believe the economy has stabilized, setting the stage for revenue improvements that can drive future profit growth. However, improved earnings also can trigger talk of higher interest rates, which, in turn, could restrain overall market performance.

3

LOOMIS SAYLES GLOBAL MARKETS FUND

Investment Results through March 31, 2010

PERFORMANCE IN PERSPECTIVE

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

Growth of a $10,000 Investment in Class A Shares^1,5

Average Annual Total Returns — March 31, 2010⁵

	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
CLASS A (Inception 2/1/06)1
Net Asset Value2	10.28	%	51.82	%	7.38	%	5.51	%
With Maximum Sales Charge3	3.96		43.15		6.12		4.89
CLASS C (Inception 2/1/06)1
Net Asset Value2	9.94		50.68		6.59		4.73
With CDSC4	8.94		49.68		6.59		4.73
CLASS Y (Inception 5/1/96)
Net Asset Value2	10.46		52.26		7.64		5.77
COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
MSCI World Index	7.67	%	53.23	%	3.45	%	0.45	%
Citigroup World Government Bond Index	-3.23		6.31		4.78		6.47
Morningstar World Allocation Fund Avg.	5.38		36.39		5.17		5.63

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

Class Y shares are available to certain investors, as described in the prospectus.

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

PORTFOLIO FACTS

	% of Net Assets as of
FUND COMPOSITION	3/31/10	9/30/09
Common Stocks and Warrants	63.7	60.6
Bonds and Notes	32.6	37.0
Preferred Stock	0.4	0.4
Bank Loans	0.1	0.1
Short-Term Investments and Other	3.2	1.9
	% of Net Assets as of
TEN LARGEST HOLDINGS	3/31/10	9/30/09
Apple, Inc.	4.0	3.4
Standard Chartered PLC	2.7	2.7
Amazon.com, Inc.	2.2	1.4
Anadarko Petroleum Corp.	2.0	—
Google, Inc., Class A	1.8	1.5
Baidu, Inc., Sponsored ADR	1.7	1.2
Tencent Holdings Ltd.	1.7	1.3
Vale SA, Sponsored ADR	1.7	0.8
Priceline.com, Inc.	1.6	1.6
FMC Technologies, Inc.	1.5	1.1
	% of Net Assets as of
FIVE LARGEST INDUSTRIES	3/31/10	9/30/09
Commercial Banks	5.9	5.4
Computers & Peripherals	5.4	3.4
Internet Software & Services	5.2	5.1
Metals & Mining	4.6	3.2
Semiconductors & Semiconductor Equipment	4.6	3.9

Portfolio holdings and asset allocations will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio6	Net Expense  Ratio7
A	1.34%	1.25%
C	2.09	2.00
Y	1.01	1.00

NOTES TO CHARTS

See page 11 for a description of the indices.

¹ Prior to the inception of Class A and C shares (2/1/06), performance is that of Institutional Class shares, restated to reflect the higher net expenses and sales loads of Class A and C shares.

² Does not include a sales charge.

³ Includes the maximum sales charge of 5.75%.

⁴ Performance for Class C shares assumes a 1% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase.

⁵ Fund performance has been increased by expense reductions and reimbursements, if any, without which performance would have been lower.

⁶ Before reductions and reimbursements.

⁷ After reductions and reimbursements. Expense reductions are contractual and are set to expire 1/31/11.

4

LOOMIS SAYLES GROWTH FUND

PORTFOLIO PROFILE

Objective:

Long-term growth of capital

Strategy:

Invests primarily in equity securities, including common stocks, convertible securities, and warrants; focuses on stocks of large-capitalization companies, but may invest in companies of any size

Fund Inception:

May 16, 1991

Managers:

Mark Baribeau, CFA

Pamela Czekanski, CFA

Richard Skaggs, CFA

Loomis, Sayles &

   Company, L.P.

Symbols:

Class A	LGRRX
Class B	LGRBX
Class C	LGRCX
Class Y	LSGRX

What You Should Know:

Growth stocks are generally more sensitive to market movements because their stock prices are based on future expectations. Frequent portfolio turnover may result in increased tax liabilities that will reduce the fund’s overall return. The fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. Fund shares should be viewed as a long-term investment.

Management Discussion

Equity investments produced generally solid returns during the six months ended March 31, 2010, although the recovery in stock prices was interrupted in January 2010 as investors absorbed the gains produced in 2009. However, new evidence indicating an improving economy increased investors’ confidence as well as their appetite for risk and the rally reignited in March. Stocks in economically sensitive groups generally produced the best relative returns, while stocks in defensive areas tended to lag.

For the six months ended March 31, 2010, Class A shares of Loomis Sayles Growth Fund returned 14.51%. During the same period, the fund’s benchmark, the Russell 1000 Growth Index, returned 12.96%, while funds in Morningstar’s Large Growth category returned an average 11.38%.

WHAT WAS THE PRIMARY REASON FOR THE FUND’S OUTPERFORMANCE?

Stock selection drove the fund’s solid relative results, especially in the consumer discretionary, materials and health care sectors. The strong performance came despite disappointing returns from financials holdings. Over the period, we continued to follow our longer-term strategy, seeking select large-cap growth companies with solid fundamentals and leading products in their competitive markets. The primary changes we made during the six months were to increase an overweight in consumer discretionary stocks, while reducing our emphasis on financial companies. We maintained an overweight in information technology.

WHICH FACTORS POSITIVELY CONTRIBUTED TO THE FUND’S PERFORMANCE?

Among consumer discretionary holdings, performance was particularly favorable for on-line travel company Priceline.com and on-line retailer Amazon.com, both of which reported healthy earnings improvements. The expansion of Priceline.com’s travel business was particularly noteworthy in Europe, while Amazon.com succeeded by expanding its product offerings. In the materials sector, the standout performer was Cliffs Natural Resources, an international mining corporation that reaped solid gains as global demand for iron ore improved. Apple was the best-performing information technology holding, as it reported its best-ever quarter after setting sales records for both personal computers and smart phones.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

Our holdings in the financial services and producer durable industries generated disappointing returns. Among financials, banks Goldman Sachs and JPMorgan Chase performed poorly as investors pulled back and took gains from the stocks’ earlier rallies. Market concerns also arose over the potential effects of proposed new financial regulations on companies such as Goldman Sachs. In the producer durables group, valve manufacturer Flowserve encountered stiff pricing pressure, causing a slight decline in the company’s share price. We sold the stock. Other poor performers included two information technology companies: QUALCOMM, which produces operating systems for wireless communications, and Brocade, which develops and markets hardware and software products for data networks. We sold both QUALCOMM and Brocade before the end of the period.

WHAT IS YOUR OUTLOOK?

We believe the stock market has the potential to produce positive returns over the next 12 months, although overall gains may be modest and interrupted by periodic reversals. Corporate cost-cutting programs have been responsible for most of the earnings growth that has occurred up until now. We believe the economy has stabilized, setting the stage for revenue improvements that can drive future profit growth. However, improved earnings also can trigger talk of higher interest rates, which, in turn, could restrain overall market performance.

5

LOOMIS SAYLES GROWTH FUND

Investment Results through March 31, 2010

PERFORMANCE IN PERSPECTIVE

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

Growth of a $10,000 Investment in Class A Shares^1,5

Average Annual Total Returns — March 31, 2010⁵

	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
CLASS A (Inception 12/31/96)1
Net Asset Value2	14.51	%	40.93	%	-0.98	%	-4.96	%
With Maximum Sales Charge3	8.00		32.90		-2.15		-5.52
CLASS B (Inception 9/12/03)1
Net Asset Value2	14.02		39.83		-1.75		-5.68
With CDSC4	9.02		34.83		-2.14		-5.68
CLASS C (Inception 9/12/03)1
Net Asset Value2	14.25		40.11		-1.71		-5.66
With CDSC4	13.25		39.11		-1.71		-5.66
CLASS Y (Inception 5/16/91)
Net Asset Value2	14.59		41.51		-0.58		-4.66
COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
Russell 1000 Growth Index	12.96	%	49.75	%	3.42	%	-4.21	%
Morningstar Large Growth Fund Avg.	11.38		48.34		2.93		-2.46

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

Class Y shares are available to certain investors, as described in the prospectus.

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

PORTFOLIO FACTS

	% of Net Assets as of
FUND COMPOSITION	3/31/10	9/30/09
Common Stocks	99.1	99.2
Short-Term Investments and Other	0.9	0.8
	% of Net Assets as of
TEN LARGEST HOLDINGS	3/31/10	9/30/09
Apple, Inc.	5.0	4.9
Priceline.com, Inc.	4.2	3.2
Microsoft Corp.	4.0	—
Amazon.com, Inc.	4.0	3.0
Cisco Systems, Inc.	3.7	2.9
Google, Inc., Class A	3.6	4.5
Visa, Inc., Class A	3.3	2.0
Broadcom Corp., Class A	2.7	2.9
Mylan, Inc.	2.5	2.0
Starbucks Corp.	2.4	2.5
	% of Net Assets as of
FIVE LARGEST INDUSTRIES	3/31/10	9/30/09
Computers & Peripherals	8.6	10.5
Internet & Catalog Retail	8.2	6.2
Semiconductors & Semiconductor Equipment	7.7	5.5
Software	7.6	4.4
IT Services	5.7	4.1

Portfolio holdings and asset allocations will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio6	Net Expense  Ratio7
A	1.22%	1.22%
B	1.98	1.98
C	1.98	1.98
Y	0.99	0.99

NOTES TO CHARTS

See page 11 for a description of the indices.

¹ Prior to 9/15/03, performance of Class A shares is that of Retail Class shares, which were redesignated as Class A shares, restated to reflect the sales load of Class A shares. Prior to the inception of Class B and C shares (9/12/03), performance is that of Institutional Class shares, restated to reflect the higher net expenses and sales loads of Class B and C shares.

² Does not include a sales charge.

³ Includes maximum sales charge of 5.75%.

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

⁵ Fund performance has been increased by expense reductions and reimbursements, if any, without which performance would have been lower.

⁶ Before reductions and reimbursements.

⁷ After reductions and reimbursements. Expense reductions are contractual and are set to expire 1/31/11.

6

LOOMIS SAYLES MID CAP GROWTH FUND

PORTFOLIO PROFILE

Objective:

Long-term growth of capital

Strategy:

Invests primarily in common stocks or other equity securities; focuses on stocks of companies that fall within the capitalization range of the companies included in the Russell Midcap Growth Index.

Fund Inception:

December 31, 1996

Manager:

Philip C. Fine, CFA

Symbols:

Class A	LAGRX
Class C	LSACX
Class Y	LSAIX

What You Should Know

Small- and mid-cap stocks may be more volatile than larger, more established companies. The secondary market for these stocks may be less liquid, which could adversely impact the fund’s value. Growth funds involve increased risks, in part, because the value of the underlying securities is based on future expectations that may or may not be met. The fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The fund is subject to currency decline. Fund shares should be viewed as a long-term investment.

Management Discussion

The stock market generated broad-based positive returns for the period, even though it pulled back early in 2010 before regaining its footing in March. Economic data improved, and confident investors drove returns higher across most sectors of the market.

For the six months ended March 31, 2010, Class A shares of Loomis Sayles Mid Cap Growth Fund returned 17.88%. The fund outperformed its benchmark, the Russell Midcap Growth Index, which returned 14.88%, and the 12.89% average return of funds in its peer group, the Morningstar Mid-Cap Growth category. Gains made early in the period helped the fund hold onto its lead even during a period of market weakness, as the fund’s ratio of winners to losers was substantial. The stop-loss discipline we had in place prompted us to sell underperformers and redirect assets to winners.

WHAT WAS THE PRIMARY REASON FOR THE FUND’S OUTPERFORMANCE?

Strong stock selection across most sectors aided returns. From a sector standpoint, producer durables had the most positive impact on the fund’s returns, followed by technology. Some of our biggest winners in durables were companies exposed to natural resources. Leading this group was Bucyrus International, which provides mining equipment and services to customers worldwide. Bucyrus’ rapid growth also reflects its participation in emerging markets.

Winners in technology included communications equipment businesses, such as F5 Networks, which offers cost-saving internet traffic management solutions, and electronics companies such as Cree, a leading manufacturer of light-emitting diode (LED) chips and components. Sales of Cree’s product lines reflected growing demand for energy-saving lighting equipment.

WHICH FACTORS POSITIVELY CONTRIBUTED TO THE FUND’S PERFORMANCE?

In addition to technology, e-commerce stocks were winning themes among the fund’s consumer discretionary holdings. Specialty retail and apparel stocks such as Lululemon Athletica and Guess?, both of which continue to show strong earnings momentum, also helped results. Other top-performing individual stocks included Priceline.com, a leading online travel company. Despite a global recession, Priceline.com continues to enjoy vigorous growth, driven by its European travel bookings.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

Financial services was one of the fund’s only groups with negative performance for the six-month period. Ill-timed stock selections included investment managers Janus Capital Group and SVB Financial. Both positions were closed during the period. The stocks we picked in the materials sector were positive, but we were underweight in the sector, which generated solid performance. Our healthcare selections provided positive absolute returns, but they lagged the benchmark’s healthcare holdings in the first quarter of 2010. Almost half the fund’s shortfall in healthcare came from biotech companies, where several of our stocks experienced corrections.

Among individual stock holdings, our greatest disappointments included biotechnology company Illumina. It was one of our big winners early in 2009, but the company’s subsequent earnings were disappointing. The stock was sold during the period. Fibria Celulose, a Brazilian producer of pulp and paper products, declined sharply on balance-sheet concerns. This caused our stop-loss program to kick in and the position was eliminated. Fuqi International, a leading Chinese jewelry manufacturer, exemplifies one of our favorite macro themes: rising middle-class consumption in emerging markets. However, the company reported a disappointing quarter, and the stock was sold when it reached our stop-loss price.

WHAT IS YOUR OUTLOOK?

We believe the stock market has the potential to produce positive returns over the next 12 months, although overall gains may be modest and interrupted by periodic reversals. Corporate cost-cutting programs have been responsible for most of the earnings growth that has occurred up until now. We believe the economy has stabilized, setting the stage for revenue improvements that can drive future profit growth. However, improved earnings also can trigger talk of higher interest rates, which, in turn, could restrain overall market performance.

7

LOOMIS SAYLES MID CAP GROWTH FUND

Investment Results through March 31, 2010

PERFORMANCE IN PERSPECTIVE

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

Growth of a $10,000 Investment in Class A Shares^1,5

Average Annual Total Returns — March 31, 2010⁵

	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
CLASS A (Inception 12/31/96)1
Net Asset Value2	17.88	%	44.12	%	5.44	%	-6.78	%
With Maximum Sales Charge3	11.08		35.85		4.20		-7.33
CLASS C (Inception 2/2/09)1
Net Asset Value2	17.47		43.11		4.62		-7.52
With CDSC4	16.47		42.11		4.62		-7.52
CLASS Y (Inception 12/31/96)
Net Asset Value2	18.05		44.51		5.72		-6.53
COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
Russell Midcap Growth Index	14.88	%	63.00	%	4.27	%	-1.69	%
Morningstar Mid-Cap Growth Avg.	12.89		55.35		3.86		-0.50

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

Class Y shares are available to certain investors, as described in the prospectus.

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

PORTFOLIO FACTS

	% of Net Assets as of
FUND COMPOSITION	3/31/10	9/30/09
Common Stocks	97.8	98.5
Short-Term Investments and Other	2.2	1.5
	% of Net Assets as of
TEN LARGEST HOLDINGS	3/31/10	9/30/09
F5 Networks, Inc.	2.7	1.6
Green Mountain Coffee Roasters, Inc.	2.6	1.9
Walter Energy, Inc.	2.5	2.4
Massey Energy Co.	2.5	—
Cree, Inc.	2.4	—
Priceline.com, Inc.	2.4	2.7
Cummins, Inc.	2.4	1.5
Baidu, Inc., Sponsored ADR	2.3	—
Salesforce.com, Inc.	2.3	2.0
Concho Resources, Inc.	2.3	1.9
	% of Net Assets as of
FIVE LARGEST INDUSTRIES	3/31/10	9/30/09
Internet Software & Services	9.0	2.7
Oil, Gas & Consumable Fuels	5.9	3.7
Semiconductors & Semiconductor Equipment	5.4	9.5
Textiles, Apparel & Luxury Goods	5.0	2.6
Specialty Retail	4.7	5.6

Portfolio holdings and asset allocations will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio6	Net Expense  Ratio7
A	1.49%	1.25%
C	2.31	2.00
Y	1.24	1.00

NOTES TO CHARTS

See page 11 for a description of the indices.

¹ Prior to 2/1/09, performance of Class A shares is that of Retail Class shares, which were redesignated as Class A shares, restated to reflect the sales load of Class A shares. Prior to the inception of Class C shares (2/2/09), performance is that of Retail Class shares, restated to reflect the higher net expenses and sales loads of Class C shares. The fund revised its investment strategies on 2/1/07; performance may have been different had the current strategies been in place for all periods shown.

² Does not include a sales charge.

³ Includes maximum sales charge of 5.75%.

⁴ Class C shares performance assumes a 1% CDSC applied when you sell shares within one year of purchase.

⁵ Fund performance has been increased by expense reductions and reimbursements, if any, without which performance would have been lower.

⁶ Before reductions and reimbursements.

⁷ After reductions and reimbursements. Expense reductions are contractual and are set to expire 1/31/11.

8

LOOMIS SAYLES VALUE FUND

PORTFOLIO PROFILE

Objective:

Long-term growth of capital and income

Strategy:

Invests primarily in equity securities, including common stocks, convertible securities, and warrants.

Fund Inception:

May 13, 1991

Managers:

Arthur Barry, CFA

James L. Carroll, CFA

Warren N. Koontz, CFA, CIC

Loomis, Sayles & Company, L.P.

Symbols:

Class A	LSVRX
Class B	LSVBX
Class C	LSCVX
Class Y	LSGIX
Admin Class	LSAVX

What You Should Know:

While the fund offers potential for long-term capital growth, it invests in value stocks, which can fall out of favor with investors and may underperform growth stocks during certain market conditions. The fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. Fund shares should be viewed as a long-term investment.

Management Discussion

The stock market rally continued into the fourth quarter of 2009, then paused briefly early this year as investors sought further indications that the economic recovery might be sustainable. In March, improving housing, employment and manufacturing data fed renewed bullishness and an increasing appetite for risk that drove up stocks, especially in economically-sensitive sectors.

Loomis Sayles Value Fund trailed both its benchmark and Morningstar peer group. For the six months ended March 31, 2010, Class A shares provided a total return of 9.42%. The fund’s benchmark, the Russell 1000 Value Index, returned 11.28%, while the average return on the funds in Morningstar’s Large Value category was 10.75%.

WHAT WAS THE PRIMARY REASON FOR THE FUND’S UNDERPERFORMANCE?

Stock selection within the producer durables and healthcare sectors generally accounted for the shortfall relative to the index.

WHICH FACTORS POSITIVELY CONTRIBUTED TO THE FUND’S PERFORMANCE?

As investors spurned more defensive market segments in pursuit of greater gains, an underweight in utilities contributed to relative results. It also helped the fund to have less exposure than the index to AT&T, a laggard stock and a large holding in the fund’s benchmark. AT&T was sold during the period. In utilities, American Electric Power performed well, thanks to its attractive valuation as well as favorable regulatory environments in its service areas. Below-benchmark stakes in energy and financials also were beneficial. Among individual holdings, Smith International, an oil field service company, rose sharply on news of its pending acquisition by industry leader Schlumberger; the combined company is well-positioned to benefit from the growing complexity of global oil and gas production. Smith reported strong fourth-quarter revenue gains in all of its operating segments, highlighting the breadth of the recovery and possibly auguring well for 2010. Financial planning specialist Ameriprise and PNC Financial, a diversified financial company, both delivered strong returns. Estee Lauder continued to surprise skeptics with very good earnings reports. Shares of Northrop Grumman rebounded from depressed levels as it rebuilt its Louisiana shipyard following hurricane damage. Moreover, most defense contractors have performed well, based on appealing valuations and budgets that remain robust in the face of world tensions.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

Several individual stocks held back performance in the producer durables, health care and materials sectors. Medical device maker Boston Scientific suffered an important product recall and also tempered its growth projections. We think the market has taken an overly negative view of Boston Scientific’s new management team. Foster Wheeler, an engineering and construction firm, also reduced its earnings forecast. In addition, investors reacted negatively when new contract awards failed to reach anticipated levels. We sold long-term holding, beer-maker Molson Coors, due to concerns about a resumption of price wars with its competitors.

WHAT IS YOUR OUTLOOK?

We believe the stock market has the potential to produce positive returns over the next 12 months, although overall gains may be modest and interrupted by periodic reversals. Corporate cost-cutting programs have been responsible for most of the earnings growth that has occurred up until now. We believe the economy has stabilized, setting the stage for revenue improvements that can drive future profit growth. However, improved earnings also can trigger talk of higher interest rates, which, in turn, could restrain overall market performance.

9

LOOMIS SAYLES VALUE FUND

Investment Results through March 31, 2010

PERFORMANCE IN PERSPECTIVE

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

Growth of a $10,000 Investment in Class A Shares^1,5

Average Annual Total Returns — March 31, 2010⁵

	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
CLASS A (Inception 6/30/06)1
Net Asset Value2	9.42	%	45.71	%	4.38	%	4.53	%
With Maximum Sales Charge3	3.14		37.36		3.15		3.91
CLASS B (Inception 6/1/07)1
Net Asset Value2	9.02		44.66		3.53		3.62
With CDSC4	4.02		39.66		3.18		3.62
CLASS C (Inception 6/1/07)1
Net Asset Value2	8.98		44.66		3.53		3.62
With CDSC4	7.98		43.66		3.53		3.62
CLASS Y (Inception 5/13/91)
Net Asset Value2	9.54		46.21		4.70		4.83
Admin Class (Inception 2/1/10)1
Net Asset Value2	9.29		45.28		4.08		4.23
COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
Russell 1000 Value Index	11.28	%	53.55	%	1.05	%	3.10	%
Morningstar Large Value Fund Avg.	10.75		50.25		1.21		3.12

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

Class Y shares are available to certain investors, as described in the prospectus.

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

PORTFOLIO FACTS

	% of Net Assets as of
FUND COMPOSITION	3/31/10	9/30/09
Common Stocks	96.0	88.2
Short-Term Investments and Other	4.0	11.8
	% of Net Assets as of
TEN LARGEST HOLDINGS	3/31/10	9/30/09
JPMorgan Chase & Co.	3.0	2.8
Bank of America Corp.	2.2	1.9
Hewlett-Packard Co.	2.2	1.9
Wells Fargo & Co.	2.1	1.3
General Electric Co.	2.1	1.3
Ameriprise Financial, Inc.	2.1	1.6
Comcast Corp., Class A	2.0	—
ExxonMobil Corp.	2.0	1.8
Northrop Grumman Corp.	1.9	1.9
PepsiCo, Inc.	1.8	1.0
	% of Net Assets as of
FIVE LARGEST INDUSTRIES	3/31/10	9/30/09
Oil, Gas & Consumable Fuels	11.5	11.3
Pharmaceuticals	6.6	6.9
Capital Markets	6.4	5.2
Commercial Banks	6.0	3.5
Diversified Financial Services	5.2	4.6

Portfolio holdings and asset allocations will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio6	Net Expense  Ratio7
A	1.06%	1.06%
B	1.81	1.81
C	1.81	1.81
Y	0.66	0.66
Admin	1.22	1.22

NOTES TO CHARTS

See page 11 for a description of the indices.

¹ Prior to 6/1/07, performance of Class A shares is that of Retail Class shares, which were redesignated as Class A shares, restated to reflect the sales load of Class A shares. Prior to the inception of Retail Class shares (6/30/06), performance is that of Institutional Class shares, restated to reflect the higher net expenses and sales loads of Class A shares. Prior to the inception of Class B and C shares (6/1/07), performance is that of Institutional Class shares, restated to reflect the higher net expenses and sales loads of Class B and C shares. Prior to the inception of Admin Class shares (2/1/10), performance is that of Class A shares, restated to reflect the higher net expenses of Admin Class shares.

² Does not include a sales charge.

³ Includes maximum sales charge of 5.75%.

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

⁵ Fund performance has been increased by expense reductions and reimbursements, if any, without which performance would have been lower.

⁶ Before reductions and reimbursements.

⁷ After reductions and reimbursements. Expense reductions are contractual and are set to expire 1/31/11.

10

ADDITIONAL INFORMATION

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

Before investing, consider the fund’s investment objectives, risks, charges and expenses. Visit www.funds.natixis.com or call 1-800-225-5478 for a prospectus and/or a summary prospectus, both of which contain this and other information. Read it carefully.

INDEX/AVERAGE DESCRIPTIONS:

Citigroup World Government Bond Index is an unmanaged index that includes the most significant and liquid government bond markets globally that carry at least an investment-grade rating.

MSCI World Index is an unmanaged index that is designed to measure the equity market performance of developed markets.

Russell 1000 Growth Index is an unmanaged index that measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 1000 Value Index is an unmanaged index that measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.

Russell Midcap Growth Index is an unmanaged index that measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values.

Standard & Poor’s 500 Index (“S&P 500”) 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.

Morningstar Fund Averages are the average performance without sales charges of funds with similar investment objectives, as calculated by Morningstar, Inc.

PROXY VOTING INFORMATION

A description of the funds’ proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the funds’ website at www.funds.natixis.com; and on the Securities and Exchange Commission’s website at www.sec.gov. Information regarding how the funds voted proxies relating to portfolio securities during the 12-month period ended June 30, 2009 is available from the funds’ website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

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

NOT FDIC INSURED MAY LOSE VALUE NO BANK  GUARANTEE

11

UNDERSTANDING FUND EXPENSES

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

The first line in the table for each class shows the actual amount of fund expenses you would have paid on a $1,000 investment in the fund from October 1, 2009 through March 31, 2010. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual fund returns and expenses. 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 = 8.6) and multiply the result by the number in the Expenses Paid During the Period row as shown below for your class.

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

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

LOOMIS SAYLES DISCIPLINED EQUITY FUND	BEGINNING ACCOUNT VALUE 10/1/2009	ENDING ACCOUNT VALUE 3/31/2010	EXPENSES PAID DURING  PERIOD* 10/1/2009 – 3/31/2010
Class A
Actual	$1,000.00	$1,095.70	$6.01
Hypothetical (5% return before expenses)	$1,000.00	$1,019.20	$5.79
Class B
Actual	$1,000.00	$1,091.20	$9.85
Hypothetical (5% return before expenses)	$1,000.00	$1,015.51	$9.50
Class C
Actual	$1,000.00	$1,090.50	$9.85
Hypothetical (5% return before expenses)	$1,000.00	$1,015.51	$9.50
Class Y
Actual	$1,000.00	$1,098.20	$4.71
Hypothetical (5% return before expenses)	$1,000.00	$1,020.44	$4.53

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.15%, 1.89%, 1.89% and 0.90%, for Class A, B, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

12

UNDERSTANDING FUND EXPENSES

LOOMIS SAYLES GLOBAL MARKETS FUND	BEGINNING ACCOUNT VALUE 10/1/2009	ENDING ACCOUNT VALUE 3/31/2010	EXPENSES PAID DURING  PERIOD* 10/1/2009 – 3/31/2010
Class A
Actual	$1,000.00	$1,102.80	$6.55
Hypothetical (5% return before expenses)	$1,000.00	$1,018.70	$6.29
Class C
Actual	$1,000.00	$1,099.40	$10.47
Hypothetical (5% return before expenses)	$1,000.00	$1,014.96	$10.05
Class Y
Actual	$1,000.00	$1,104.60	$5.25
Hypothetical (5% return before expenses)	$1,000.00	$1,019.95	$5.04

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.25%, 2.00% and 1.00%, for Class A, C and Y, respectively, multiplied by the average account value over the period multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

LOOMIS SAYLES GROWTH FUND	BEGINNING ACCOUNT VALUE 10/1/2009	ENDING ACCOUNT VALUE 3/31/2010	EXPENSES PAID DURING  PERIOD* 10/1/2009 – 3/31/2010
Class A
Actual	$1,000.00	$1,145.10	$6.15
Hypothetical (5% return before expenses)	$1,000.00	$1,019.20	$5.79
Class B
Actual	$1,000.00	$1,140.20	$10.14
Hypothetical (5% return before expenses)	$1,000.00	$1,015.46	$9.55
Class C
Actual	$1,000.00	$1,142.50	$10.15
Hypothetical (5% return before expenses)	$1,000.00	$1,015.46	$9.55
Class Y
Actual	$1,000.00	$1,145.90	$4.76
Hypothetical (5% return before expenses)	$1,000.00	$1,020.49	$4.48

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.15%, 1.90%, 1.90% and 0.89% for Class A, B, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

13

UNDERSTANDING FUND EXPENSES

LOOMIS SAYLES MID CAP GROWTH FUND	BEGINNING ACCOUNT VALUE 10/1/2009	ENDING ACCOUNT VALUE 3/31/2010	EXPENSES PAID DURING  PERIOD* 10/1/2009 – 3/31/2010
CLASS A
Actual	$1,000.00	$1,178.80	$6.79
Hypothetical (5% return before expenses)	$1,000.00	$1,018.70	$6.29
CLASS C
Actual	$1,000.00	$1,174.70	$10.84
Hypothetical (5% return before expenses)	$1,000.00	$1,014.96	$10.05
CLASS Y
Actual	$1,000.00	$1,180.50	$5.44
Hypothetical (5% return before expenses)	$1,000.00	$1,019.95	$5.04

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.25%, 2.00% and 1.00%, for Class A, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

LOOMIS SAYLES VALUE FUND	BEGINNING ACCOUNT VALUE 10/1/2009	ENDING ACCOUNT VALUE 3/31/2010		EXPENSES PAID DURING PERIOD 10/1/2009 –  3/31/2010
CLASS A
Actual	$1,000.00	$1,094.20		$4.86	1
Hypothetical (5% return before expenses)	$1,000.00	$1,020.29		$4.68	*
CLASS B
Actual	$1,000.00	$1,090.20		$8.75	1
Hypothetical (5% return before expenses)	$1,000.00	$1,016.55		$8.45	*
CLASS C
Actual	$1,000.00	$1,089.80		$8.75	1
Hypothetical (5% return before expenses)	$1,000.00	$1,016.55		$8.45	*
CLASS Y
Actual	$1,000.00	$1,095.40		$3.60	1
Hypothetical (5% return before expenses)	$1,000.00	$1,021.49		$3.48	*
Admin Class
Actual	$1,000.00	$1,065.20	2	$2.20	2
Hypothetical (5% return before expenses)	$1,000.00	$1,001.26	*	$6.69	*

* Hypothetical expenses are equal to the Fund’s annualized expense ratio: 0.93%, 1.68%, 1.68%, 0.69% and 1.34%, for Class A, B, C, Y and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (182), divided by 365 (to reflect the half-year period).

¹ Actual expenses for Class A, B, C and Y are equal to the Fund’s annualized expense ratio: 0.93%, 1.68%, 1.68% and 0.69% , respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (182), divided by 365 (to reflect the half-year period).

² Admin Class commenced operations on February 1, 2010. Actual expenses are equal to the Fund’s annualized expense ratio of 1.34% multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal period (58), divided by 365 (to reflect the partial period).

14

LOOMIS SAYLES DISCIPLINED EQUITY FUND — PORTFOLIO OF INVESTMENTS

Investments as of March 31, 2010 (Unaudited)

Shares	Description	Value (†)
Common Stocks — 96.3% of Net Assets
	Aerospace & Defense — 2.4%
10,857	General Dynamics Corp.(b)	$	838,161
	Automobiles — 2.5%
68,071	Ford Motor Co.(c)		855,653
	Beverages — 3.9%
9,150	Brown-Forman Corp., Class B		543,967
12,343	PepsiCo, Inc.		816,613
			1,360,580
	Biotechnology — 2.3%
13,262	Amgen, Inc.(c)		792,537
	Capital Markets — 4.2%
3,431	BlackRock, Inc.(b)		747,135
4,259	Goldman Sachs Group, Inc. (The)(b)		726,713
			1,473,848
	Communications Equipment — 3.4%
10,888	F5 Networks, Inc.(c)		669,721
10,464	Harris Corp.(b)		496,935
			1,166,656
	Computers & Peripherals — 9.7%
4,868	Apple, Inc.(c)		1,143,639
45,826	EMC Corp.(c)		826,701
25,979	Hewlett-Packard Co.(b)		1,380,784
			3,351,124
	Diversified Financial Services — 3.3%
32,465	Bank of America Corp.		579,500
12,344	JPMorgan Chase & Co.(b)		552,394
			1,131,894
	Electrical Equipment — 1.4%
9,857	Emerson Electric Co.(b)		496,201
	Energy Equipment & Services — 2.8%
11,276	Transocean Ltd.(c)		974,021
	Food & Staples Retailing — 0.9%
5,777	Wal-Mart Stores, Inc.		321,201
	Health Care Equipment & Supplies — 1.5%
19,305	CareFusion Corp.(c)		510,231
	Health Care Providers & Services — 6.5%
15,201	Aetna, Inc.		533,707
24,529	AmerisourceBergen Corp.(b)		709,379
15,832	WellPoint, Inc.(b)(c)		1,019,264
			2,262,350
	Household Durables — 2.8%
11,092	Whirlpool Corp.		967,777
	Household Products — 2.6%
14,040	Procter & Gamble Co. (The)		888,311
	Independent Power Producers & Energy Traders — 2.1%
20,905	Constellation Energy Group, Inc.		733,975
	Industrial Conglomerates — 3.4%
5,086	3M Co.(b)		425,037
41,621	General Electric Co.		757,502
			1,182,539

Shares		Description	Value (†)
		Insurance — 3.9%
	12,049	Travelers Cos., Inc. (The)(b)	$	649,923
	27,744	Unum Group		687,219
				1,337,142
		Internet & Catalog Retail — 2.5%
	3,449	Priceline.com, Inc.(b)(c)		879,495
		Internet Software & Services — 3.3%
	2,048	Google, Inc., Class A(b)(c)		1,161,237
		Life Sciences Tools & Services — 0.9%
	6,407	Thermo Fisher Scientific, Inc.(c)		329,576
		Media — 1.4%
	14,132	Discovery Communications, Inc., Class A(c)		477,520
		Metals & Mining — 2.0%
	3,998	Walter Energy, Inc.		368,896
	17,395	Xstrata PLC(c)		329,565
				698,461
		Multiline Retail — 1.5%
	8,756	Dollar Tree, Inc.(c)		518,530
		Oil, Gas & Consumable Fuels — 6.2%
	70,870	El Paso Corp.		768,231
	27,959	Marathon Oil Corp.		884,623
	21,309	Williams Cos., Inc. (The)		492,238
				2,145,092
		Paper & Forest Products — 1.6%
	23,179	International Paper Co.(b)		570,435
		Personal Products — 1.4%
	7,486	Estee Lauder Cos., Inc., (The) Class A		485,617
		Pharmaceuticals — 7.3%
	27,541	Merck & Co., Inc.		1,028,656
	24,691	Mylan, Inc.(c)		560,733
	55,802	Pfizer, Inc.		957,004
				2,546,393
		Software — 8.6%
	45,193	Microsoft Corp.		1,322,799
	65,303	Oracle Corp.(b)		1,677,634
				3,000,433
		Total Common Stocks (Identified Cost $30,038,940)		33,456,990
Principal Amount
	Short-Term Investments — 4.3%
$	1,481,511	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2010 at 0.000% to be repurchased at $1,481,511 on 4/01/2010 collateralized by $1,510,000 Federal National Mortgage Association, 3.000% due 1/29/2015 valued at $1,515,663 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $1,481,511)		1,481,511
		Total Investments — 100.6% (Identified Cost $31,520,451)(a)		34,938,501
		Other assets less liabilities — (0.6)%		(216,646	)
		Net Assets — 100.0%	$	34,721,855

See accompanying notes to financial statements.

15

LOOMIS SAYLES DISCIPLINED EQUITY FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Contracts	Description	Value (†)
	Call Options Written — (0.2%)
25	3M Co. expiring May 22, 2010 at 85	$	(4,125	)
244	AmerisourceBergen Corp. expiring May 22, 2010 at 30		(13,420	)
10	BlackRock, Inc. expiring May 22, 2010 at 240		(2,200	)
32	Emerson Electric Co. expiring April 17, 2010 at 50		(3,040	)
72	General Dynamics Corp. expiring May 22, 2010 at 80		(9,360	)
11	Goldman Sachs Group, Inc. (The) expiring May 22, 2010 at 190		(1,254	)
6	Google, Inc., Class A expiring May 22, 2010 at 600		(6,090	)
22	Harris Corp. expiring May 22, 2010 at 50		(2,255	)
86	Hewlett-Packard Co. expiring May 22, 2010 at 55		(7,009	)
67	International Paper Co. expiring May 22, 2010 at 30		(838	)
42	JPMorgan Chase & Co. expiring May 22, 2010 at 48		(2,415	)
206	Oracle Corp. expiring April 17, 2010 at 26		(5,356	)
20	Priceline.com, Inc. expiring April 17, 2010 at 260		(9,000	)
120	Travelers Cos., Inc. (The) expiring April 17, 2010 at 55		(3,900	)
48	WellPoint, Inc. expiring April 17, 2010 at 65		(4,224	)
48	WellPoint, Inc. expiring May 22, 2010 at 67.50		(6,456	)
	Total Call Options Written (Premiums Received $83,766)	$	(80,942	)
(†)	See Note 2 of Notes to Financial Statements.
(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.): At March 31, 2010, the net unrealized appreciation on investments based on a cost of $31,520,451 for federal income tax purposes was as follows:
	Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	3,475,816
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(57,766	)
	Net unrealized appreciation	$	3,418,050
(b)	All or a portion of this security is held as collateral for outstanding call options.
(c)	Non-income producing security.

Industry Summary at March 31, 2010 (Unaudited)

Computers & Peripherals	9.7	%
Software	8.6
Pharmaceuticals	7.3
Health Care Providers & Services	6.5
Oil, Gas & Consumable Fuels	6.2
Capital Markets	4.2
Beverages	3.9
Insurance	3.9
Industrial Conglomerates	3.4
Communications Equipment	3.4
Internet Software & Services	3.3
Diversified Financial Services	3.3
Energy Equipment & Services	2.8
Household Durables	2.8
Household Products	2.6
Internet & Catalog Retail	2.5
Automobiles	2.5
Aerospace & Defense	2.4
Biotechnology	2.3
Independent Power Producers & Energy Traders	2.1
Metals & Mining	2.0
Other Investments, less than 2% each	10.6
Short-Term Investments	4.3
Total Investments	100.6
Other assets less liabilities (including call options written)	(0.6	)
Net Assets	100.0	%

See accompanying notes to financial statements.

16

LOOMIS SAYLES GLOBAL MARKETS FUND — PORTFOLIO OF INVESTMENTS

Investments as of March 31, 2010 (Unaudited)

Shares	Description	Value (†)
Common Stocks — 63.6% of Net Assets
	Belgium — 0.9%
51,509	Anheuser-Busch InBev NV	$	2,590,782
	Brazil — 6.0%
144,700	Hypermarcas SA(b)		1,769,744
166,400	Lojas Renner SA		3,817,651
209,700	Natura Cosmeticos SA		4,256,851
254,600	OGX Petroleo e Gas Participacoes SA		2,383,721
147,184	Vale SA, Sponsored ADR		4,737,853
			16,965,820
	Cayman Islands — 2.8%
8,200	Baidu, Inc., Sponsored ADR(b)		4,895,400
79,162	Ctrip.com International Ltd., ADR(b)		3,103,150
			7,998,550
	Chile — 0.9%
38,800	Banco Santander Chile, ADR		2,646,936
	China — 1.7%
242,400	Tencent Holdings Ltd.		4,853,874
	France — 0.8%
48,363	ArcelorMittal, (NY Registered)		2,123,619
	Germany — 1.2%
34,706	Siemens AG, (Registered)		3,467,719
	Hong Kong — 1.6%
1,114,000	Cathay Pacific Airways Ltd.(b)		2,340,405
474,000	Li & Fung Ltd.		2,328,059
			4,668,464
	Japan — 1.8%
85,400	Honda Motor Co. Ltd.		3,010,238
146,000	Nippon Electric Glass Co. Ltd.		2,060,780
			5,071,018
	Korea — 1.8%
31,304	Hyundai Motor Co.		3,192,159
19,621	Samsung Electro-Mechanics Co. Ltd.		1,992,611
			5,184,770
	Netherlands Antilles — 0.6%
26,349	Schlumberger Ltd.		1,672,108
	Russia — 1.0%
1,011,769	Sberbank		2,953,985
	Switzerland — 3.5%
191,070	ABB Ltd., (Registered)(b)		4,174,961
36,470	Credit Suisse Group AG		1,877,198
30,955	Sonova Holding AG, (Registered)		3,842,151
			9,894,310
	United Kingdom — 5.9%
904,280	ARM Holdings PLC		3,241,299
253,562	Experian PLC		2,493,390
276,831	Standard Chartered PLC		7,545,665
69,318	Vodafone Group PLC, Sponsored ADR		1,614,416
94,186	Xstrata PLC(b)		1,782,593
			16,677,363
	United States — 33.1%
46,340	Amazon.com, Inc.(b)		6,289,728
76,273	Anadarko Petroleum Corp.		5,554,963
47,812	Apple, Inc.(b)		11,232,473
180,211	Bank of America Corp.		3,216,766

Shares		Description	Value (†)
		United States — continued
	84,834	Broadcom Corp., Class A	$	2,814,792
	31,440	Caterpillar, Inc.		1,976,004
	103,190	Cisco Systems, Inc.(b)		2,686,036
	51,011	Cree, Inc.(b)		3,581,992
	12,529	Dex One Corp.(b)		349,810
	122,847	EMC Corp.(b)		2,216,160
	53,050	Emerson Electric Co.		2,670,537
	56,988	Estee Lauder Cos., Inc. (The), Class A		3,696,811
	67,627	FMC Technologies, Inc.(b)		4,370,733
	16,420	Franklin Resources, Inc.		1,820,978
	16,082	Goldman Sachs Group, Inc. (The)		2,744,072
	9,083	Google, Inc., Class A(b)		5,150,152
	63,993	Guess?, Inc.		3,006,391
	33,211	Hewlett-Packard Co.		1,765,165
	132,801	Marvell Technology Group Ltd.(b)		2,706,484
	85,906	Microsoft Corp.		2,514,469
	29,235	Precision Castparts Corp.		3,704,367
	18,213	Priceline.com, Inc.(b)		4,644,315
	72,183	Southwestern Energy Co.(b)		2,939,292
	96,129	Starbucks Corp.(b)		2,333,051
	26,818	Vertex Pharmaceuticals, Inc.(b)		1,096,052
	28,973	Visa, Inc., Class A		2,637,412
	28,041	Walter Energy, Inc.		2,587,343
	117,420	Wells Fargo & Co.		3,654,110
				93,960,458
		Total Common Stocks (Identified Cost $147,972,698)		180,729,776
Principal Amount (‡)
	Bonds and Notes — 32.6%
	Non-Convertible Bonds — 31.4%
		Argentina — 0.2%
$	570,000	Transportadora de Gas del Sur SA,
		7.875%, 5/14/2017, 144A		540,788
		Australia — 0.1%
	230,000	New South Wales Treasury Corp., Series 10RG,
		7.000%, 12/01/2010, (AUD)		214,743
		Bermuda — 0.2%
	100,000	Noble Group Ltd.,
		6.750%, 1/29/2020, 144A		103,375
	100,000	Noble Group Ltd.,
		8.500%, 5/30/2013, 144A		112,375
	200,000	Qtel International Finance Ltd.,
		7.875%, 6/10/2019, 144A		231,147
				446,897
		Brazil — 0.9%
	200,000	Banco Nacional de Desenvolvimento Economico e Social,
		6.500%, 6/10/2019, 144A		213,500
	400,000	Banco Santander Brasil,
		4.500%, 4/06/2015, 144A		399,080
	1,522,229(††)	Brazil Notas do Tesouro Nacional, Series B,
		6.000%, 8/15/2010, (BRL)		861,654
	456,669(††)	Brazil Notas do Tesouro Nacional, Series B,
		6.000%, 5/15/2015, (BRL)		253,171
	200,000	Gerdau Holdings, Inc.,
		7.000%, 1/20/2020, 144A		211,000
	100,000	NET Servicos de Comunicacao SA,
		7.500%, 1/27/2020, 144A		105,500

See accompanying notes to financial statements.

17

LOOMIS SAYLES GLOBAL MARKETS FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)	Description	Value (†)
	Brazil — continued
650,000	Republic of Brazil,
	10.250%, 1/10/2028, (BRL)	$	369,163
100,000	Telemar Norte Leste SA,
	9.500%, 4/23/2019, 144A		118,750
			2,531,818
	Canada — 0.4%
680,000	Canadian Government,
	4.500%, 6/01/2015, (CAD)(c)		720,794
25,000	Canadian Pacific Railway Ltd., MTN,
	4.900%, 6/15/2010, (CAD), 144A		24,798
180,000	Corus Entertainment, Inc.,
	7.250%, 2/10/2017, (CAD), 144A		180,468
50,000	Nortel Networks Ltd.,
	6.875%, 9/01/2023(d)		15,500
100,000	Pacific Rubiales Energy Corp.,
	8.750%, 11/10/2016, 144A		108,500
100,000	Shaw Communications, Inc.,
	5.650%, 10/01/2019, (CAD)		101,357
			1,151,417
	Cayman Islands — 0.9%
360,000	DASA Finance Corp.,
	8.750%, 5/29/2018, 144A		385,200
200,000	Embraer Overseas Ltd.,
	6.375%, 1/24/2017		206,500
100,000	Fibria Overseas Finance Ltd.,
	9.250%, 10/30/2019, 144A		114,000
100,000	Hutchison Whampoa International 09 Ltd.,
	7.625%, 4/09/2019, 144A		116,616
100,000	LPG International, Inc.,
	7.250%, 12/20/2015		109,750
170,000	Marfrig Overseas Ltd.,
	9.625%, 11/16/2016, 144A		179,350
200,000	Odebrecht Finance Ltd.,
	7.000%, 4/21/2020, 144A		208,250
320,000	Petrobras International Finance Co.,
	5.875%, 3/01/2018		334,192
300,000	Petrobras International Finance Co.,
	6.875%, 1/20/2040		309,655
536,000	Vale Overseas Ltd.,
	6.875%, 11/21/2036		554,519
200,000	Voto-Votorantim Ltd.,
	6.750%, 4/05/2021, 144A		197,500
			2,715,532
	Chile — 0.0%
100,000	Celulosa Arauco y Constitucion SA,
	7.250%, 7/29/2019		107,457
	Colombia — 0.1%
200,000	Ecopetrol SA,
	7.625%, 7/23/2019		222,000
100,000	Empresas Publicas de Medellin ESP,
	7.625%, 7/29/2019, 144A		110,500
40,000	Republic of Colombia,
	8.125%, 5/21/2024		48,000
			380,500
	Denmark — 0.2%
3,650,000	Denmark Government Bond,
	4.000%, 11/15/2015, (DKK)		709,303

Principal Amount (‡)	Description	Value (†)
	France — 0.4%
35,000	Lafarge SA, EMTN,
	4.750%, 3/23/2020, (EUR)	$	45,320
250,000	Lafarge SA, EMTN,
	5.375%, 6/26/2017, (EUR)		344,283
240,000	Veolia Environnement, EMTN,
	4.000%, 2/12/2016, (EUR)		333,964
25,000	Veolia Environnement, EMTN,
	5.125%, 5/24/2022, (EUR)		35,858
100,000	Wendel,
	4.375%, 8/09/2017, (EUR)		110,753
200,000	Wendel,
	4.875%, 5/26/2016, (EUR)		239,092
			1,109,270
	Germany — 0.4%
200,000	Bertelsmann AG,
	4.750%, 9/26/2016, (EUR)		276,881
300,000	Bundesrepublik Deutschland, Series 03,
	4.500%, 1/04/2013, (EUR)		440,090
110,000	Bundesrepublik Deutschland, Series 06,
	3.750%, 1/04/2017, (EUR)		158,899
140,000	Republic of Germany,
	3.750%, 7/04/2013, (EUR)		202,547
			1,078,417
	Hungary — 0.1%
350,000	Republic of Hungary,
	6.250%, 1/29/2020		372,318
	India — 0.2%
500,000	Canara Bank Ltd., (fixed rate to 11/28/2016, variable rate thereafter),
	6.365%, 11/28/2021		497,707
100,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter),
	6.375%, 4/30/2022, 144A		94,153
			591,860
	Indonesia — 0.6%
200,000	Adaro Indonesia PT,
	7.625%, 10/22/2019, 144A		207,760
400,000	Indonesia Government International Bond,
	6.875%, 1/17/2018		445,000
700,000	Indonesia Government International Bond,
	7.750%, 1/17/2038, 144A		812,000
1,500,000,000	Indonesia Government International Bond,
	11.500%, 9/15/2019, (IDR)		190,205
100,000	Indonesia Government International Bond,
	11.625%, 3/04/2019, 144A		143,750
			1,798,715
	Italy — 0.2%
100,000	Atlantia SpA, EMTN,
	5.625%, 5/06/2016, (EUR)		149,224
250,000	Finmeccanica SpA, EMTN,
	4.875%, 3/24/2025, (EUR)		338,934
100,000	Telecom Italia SpA, EMTN,
	5.375%, 1/29/2019, (EUR)		139,506
			627,664

See accompanying notes to financial statements.

18

LOOMIS SAYLES GLOBAL MARKETS FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)	Description	Value (†)
	Japan — 0.6%
10,000,000	Japan Finance Corp. for Small and Medium Enterprises,
	1.100%, 9/20/2011, (JPY)	$	107,843
120,000,000	Japan Government,
	1.400%, 6/20/2011, (JPY)		1,302,848
180,000	Nomura Holdings, Inc.,
	6.700%, 3/04/2020		186,806
			1,597,497
	Jersey — 0.1%
100,000	WPP PLC,
	6.000%, 4/04/2017, (GBP)		159,070
	Korea — 0.7%
400,000	Export-Import Bank of Korea,
	8.125%, 1/21/2014		464,045
200,000	Korea Gas Corp.,
	6.000%, 7/15/2014, 144A		217,527
300,000	Korea Hydro & Nuclear Power Co. Ltd.,
	6.250%, 6/17/2014, 144A		328,735
400,000,000	Korea Treasury Bond,
	5.000%, 9/10/2014, (KRW)		362,262
460,000	SK Broadband Co. Ltd.,
	7.000%, 2/01/2012, 144A		484,748
140,000	SK Telecom Co. Ltd.,
	6.625%, 7/20/2027, 144A		147,507
			2,004,824
	Lithuania — 0.1%
350,000	Lithuania Government International Bond,
	7.375%, 2/11/2020, 144A		383,093
	Luxembourg — 0.0%
125,000	Telecom Italia Capital SA,
	6.000%, 9/30/2034		110,892
10,000	Telecom Italia Capital SA,
	6.375%, 11/15/2033		9,264
			120,156
	Malaysia — 0.1%
200,000	Ranhill Labuan Ltd.,
	12.500%, 10/26/2011, 144A		185,000
	Mexico — 0.9%
200,000	America Movil SAB de CV,
	3.625%, 3/30/2015, 144A		200,679
195,000	Axtel SAB de CV,
	7.625%, 2/01/2017, 144A		195,000
145,000	Axtel SAB de CV,
	9.000%, 9/22/2019, 144A		147,900
160,000	Corporacion GEO SAB de CV,
	8.875%, 9/25/2014, 144A		171,600
295,000	Desarrolladora Homex SAB de CV,
	7.500%, 9/28/2015		299,425
42,000(†††)	Mexican Fixed Rate Bonds, Series M-10,
	8.000%, 12/17/2015, (MXN)		354,751
44,000(†††)	Mexican Fixed Rate Bonds, Series M-10,
	8.500%, 12/13/2018, (MXN)		377,766
100,000	Mexichem SAB de CV,
	8.750%, 11/06/2019, 144A		108,500
330,000	Petroleos Mexicanos,
	8.000%, 5/03/2019		386,925
200,000	Urbi Desarrollos Urbanos SAB de CV,
	9.500%, 1/21/2020, 144A		216,500
			2,459,046

Principal Amount (‡)		Description	Value (†)
		Netherlands — 0.2%
$	200,000	Listrindo Capital BV,
		9.250%, 1/29/2015, 144A	$	216,732
	100,000	Majapahit Holding BV,
		7.250%, 6/28/2017, 144A		106,500
	100,000	Majapahit Holding BV,
		7.750%, 1/20/2020, 144A		108,500
	100,000	Majapahit Holding BV,
		8.000%, 8/07/2019, 144A		109,875
	50,000	OI European Group BV,
		6.875%, 3/31/2017, (EUR), 144A		68,208
				609,815
		New Zealand — 0.1%
	500,000	New Zealand Government,
		6.500%, 4/15/2013, (NZD)		374,425
		Norway — 0.5%
	635,000	Norwegian Government,
		4.250%, 5/19/2017, (NOK)		111,887
	1,765,000	Norwegian Government,
		5.000%, 5/15/2015, (NOK)		322,469
	1,885,000	Norwegian Government,
		6.000%, 5/16/2011, (NOK)		329,976
	2,860,000	Norwegian Government,
		6.500%, 5/15/2013, (NOK)(c)		534,843
				1,299,175
		Poland — 0.1%
	95,000	Poland Government Bond,
		3.000%, 9/23/2014, (CHF)		92,486
	500,000	Poland Government Bond,
		5.000%, 10/24/2013, (PLN)		176,267
				268,753
		Qatar — 0.1%
	100,000	Qatar Government International Bond,
		4.000%, 1/20/2015, 144A		101,850
	250,000	Ras Laffan Liquefied Natural Gas Co. Ltd. III,
		5.500%, 9/30/2014, 144A		268,325
				370,175
		Singapore — 0.2%
	200,000	Prime Dig Pte Ltd.,
		11.750%, 11/03/2014, 144A		216,500
	435,000	Singapore Government,
		2.250%, 7/01/2013, (SGD)		324,337
				540,837
		South Africa — 0.5%
	130,000	Edcon Proprietary Ltd.,
		3.900%, 6/15/2014, (EUR), 144A(e)		133,883
	450,000	Edcon Proprietary Ltd.,
		3.900%, 6/15/2014, (EUR)(e)		463,442
	400,000	Republic of South Africa,
		5.500%, 3/09/2020		405,000
	285,000	Republic of South Africa, EMTN,
		4.500%, 4/05/2016, (EUR)		392,634
				1,394,959
		Spain — 0.2%
	500,000	Instituto de Credito Oficial, MTN,
		6.125%, 2/27/2014, (AUD)		446,676

See accompanying notes to financial statements.

19

LOOMIS SAYLES GLOBAL MARKETS FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)	Description	Value (†)
	Supranational — 0.1%
14,000,000	European Investment Bank,
	1.250%, 9/20/2012, (JPY)	$	153,180
	Sweden — 0.3%
2,300,000	Sweden Government Bond,
	4.500%, 8/12/2015, (SEK)		350,265
3,020,000	Sweden Government Bond,
	5.500%, 10/08/2012, (SEK)		458,584
			808,849
	Thailand — 0.2%
330,000	True Move Co. Ltd.,
	10.375%, 8/01/2014		341,550
100,000	True Move Co. Ltd.,
	10.375%, 8/01/2014, 144A		103,500
			445,050
	Turkey — 0.1%
400,000	Republic of Turkey,
	5.625%, 3/30/2021		393,000
	United Arab Emirates — 0.6%
400,000	Abu Dhabi National Energy Co.,
	6.500%, 10/27/2036, 144A		373,862
400,000	Abu Dhabi National Energy Co.,
	7.250%, 8/01/2018, 144A		431,158
500,000	DP World Ltd.,
	6.850%, 7/02/2037, 144A		429,357
150,000	Emirate of Abu Dhabi,
	5.500%, 4/08/2014, 144A		163,050
250,000	Mubadala Development Co., GMTN,
	7.625%, 5/06/2019, 144A		282,733
			1,680,160
	United Kingdom — 0.4%
100,000	BAT International Finance PLC,
	5.875%, 3/12/2015, (EUR)		151,570
60,000	BSKYB Finance UK PLC,
	5.750%, 10/20/2017, (GBP)		96,673
200,000	Imperial Tobacco Finance PLC, EMTN,
	4.375%, 11/22/2013, (EUR)		282,669
100,000	Rexam PLC, EMTN,
	4.375%, 3/15/2013, (EUR)		139,292
250,000	Standard Chartered Bank, EMTN,
	5.875%, 9/26/2017, (EUR)		365,642
100,000	Virgin Media Secured Finance PLC,
	7.000%, 1/15/2018, (GBP), 144A		154,974
			1,190,820
	United States — 20.4%
155,000	Alcatel-Lucent USA, Inc.,
	6.450%, 3/15/2029		109,275
15,000	Amkor Technology, Inc.,
	7.750%, 5/15/2013		15,113
35,000	Anheuser-Busch Cos., Inc.,
	6.500%, 5/01/2042		36,806
250,000	Anheuser-Busch InBev Worldwide, Inc.,
	7.750%, 1/15/2019, 144A		297,345
60,000	Arrow Electronics, Inc.,
	6.875%, 7/01/2013		66,293
35,000	AT&T, Inc.,
	6.500%, 9/01/2037		36,293

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	36,321	Atlas Air, Inc., Series B,
		7.680%, 1/02/2014	$	34,323
	145,000	Avnet, Inc.,
		6.000%, 9/01/2015		152,694
	200,000	Bank of America Corp., (fixed rate to 5/06/2014, variable rate thereafter),
		4.750%, 5/06/2019, (EUR)		261,961
	400,000,000	Barclays Financial LLC,
		4.060%, 9/16/2010, (KRW), 144A		354,222
	310,000	Borden, Inc.,
		7.875%, 2/15/2023		220,100
	410,000	Borden, Inc.,
		8.375%, 4/15/2016		340,300
	15,000	Boston Scientific Corp.,
		5.125%, 1/12/2017		14,079
	5,000	Boston Scientific Corp.,
		5.450%, 6/15/2014		5,035
	15,000	Boston Scientific Corp.,
		6.400%, 6/15/2016		15,298
	60,000	Boston Scientific Corp.,
		7.000%, 11/15/2035		53,977
	50,000	Bristol-Myers Squibb Co.,
		4.625%, 11/15/2021, (EUR)		71,313
	700,000	Capital One Multi-Asset Execution Trust, Series 2005-A10, Class A,
		0.310%, 9/15/2015(e)		692,740
	2,335,000	Capital One Multi-Asset Execution Trust, Series 2006-A5, Class A5,
		0.290%, 1/15/2016(e)		2,305,947
	15,000	Chesapeake Energy Corp.,
		6.500%, 8/15/2017		14,513
	70,000	Chesapeake Energy Corp.,
		6.875%, 1/15/2016		69,125
	75,000	Chesapeake Energy Corp.,
		6.875%, 11/15/2020		72,937
	79,617	CIT Group, Inc.,
		7.000%, 5/01/2013		77,428
	119,429	CIT Group, Inc.,
		7.000%, 5/01/2014		112,860
	119,429	CIT Group, Inc.,
		7.000%, 5/01/2015		111,368
	199,049	CIT Group, Inc.,
		7.000%, 5/01/2016		183,623
	278,673	CIT Group, Inc.,
		7.000%, 5/01/2017		257,076
	120,000	Citi Credit Card Issuance Trust, Series 2001-A4, Class A4,
		5.375%, 4/10/2013, (EUR)		165,566
	680,000	Comcast Corp.,
		5.650%, 6/15/2035		629,553
	999,656	Continental Airlines Pass Through Trust, Series 1999-1, Class B,
		6.795%, 8/02/2018		932,180
	190,000	CSX Corp.,
		6.250%, 3/15/2018		205,304
	265,000	Cummins, Inc.,
		5.650%, 3/01/2098		163,826
	160,000	Cummins, Inc.,
		7.125%, 3/01/2028		158,154
	10,000	D.R. Horton, Inc.,
		5.250%, 2/15/2015		9,650
	321,633	Delta Air Lines, Inc., Series 2007-1, Class B,
		8.021%, 8/10/2022		295,902

See accompanying notes to financial statements.

20

LOOMIS SAYLES GLOBAL MARKETS FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	310,816	Delta Air Lines, Inc., Series 2007-1, Class C,
		8.954%, 8/10/2014	$	290,859
	42,000	Dillard’s, Inc.,
		6.625%, 1/15/2018		38,850
	50,000	Dillard’s, Inc.,
		7.000%, 12/01/2028		40,000
	8,000	Dillard’s, Inc.,
		7.750%, 7/15/2026		6,800
	11,000	ESI Tractebel Acquisition Corp., Series B,
		7.990%, 12/30/2011		10,997
	250,000	Exelon Corp.,
		4.900%, 6/15/2015		260,559
	150,000	Foot Locker, Inc.,
		8.500%, 1/15/2022		138,750
	10,000	Ford Motor Co.,
		6.625%, 2/15/2028		8,400
	1,750,000	Ford Motor Co.,
		6.625%, 10/01/2028		1,470,000
	15,000	Ford Motor Co.,
		7.125%, 11/15/2025		12,788
	595,000	Ford Motor Co.,
		7.450%, 7/16/2031		562,275
	2,250,000	Ford Motor Credit Co. LLC,
		7.000%, 10/01/2013		2,328,156
	260,000	Ford Motor Credit Co. LLC,
		7.250%, 10/25/2011		268,812
	345,000	Ford Motor Credit Co. LLC,
		7.500%, 8/01/2012		357,241
	905,000	Ford Motor Credit Co. LLC,
		8.000%, 12/15/2016		953,529
	170,000	Ford Motor Credit Co. LLC,
		8.625%, 11/01/2010		174,126
	390,000	Ford Motor Credit Co. LLC,
		9.750%, 9/15/2010		399,351
	80,000	Freescale Semiconductor, Inc.,
		10.125%, 12/15/2016		70,800
	45,000	General Electric Capital Corp.,
		5.625%, 5/01/2018		47,026
	205,000	General Electric Capital Corp., MTN,
		5.875%, 1/14/2038		194,904
	750,000	General Electric Capital Corp., Series A, MTN,
		4.875%, 3/04/2015		788,116
	3,375,000	Georgia-Pacific LLC,
		7.250%, 6/01/2028		3,341,250
	35,000	Georgia-Pacific LLC,
		7.750%, 11/15/2029		35,000
	525,000	Georgia-Pacific LLC,
		8.000%, 1/15/2024		556,500
	405,000	Georgia-Pacific LLC,
		8.875%, 5/15/2031		439,425
	288,000	GMAC, Inc.,
		6.000%, 12/15/2011		288,720
	129,000	GMAC, Inc.,
		6.625%, 5/15/2012		130,290
	257,000	GMAC, Inc.,
		6.750%, 12/01/2014		255,715
	28,000	GMAC, Inc.,
		6.875%, 9/15/2011		28,455

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	60,000	GMAC, Inc.,
		6.875%, 8/28/2012	$	60,825
	63,000	GMAC, Inc.,
		7.000%, 2/01/2012		64,102
	63,000	GMAC, Inc.,
		7.250%, 3/02/2011		64,102
	55,000	GMAC, Inc.,
		7.500%, 12/31/2013		55,963
	129,000	GMAC, Inc.,
		8.000%, 12/31/2018		127,065
	1,946,000	GMAC, Inc.,
		8.000%, 11/01/2031		1,858,430
	150,000	Goldman Sachs Group, Inc. (The),
		1.011%, 5/23/2016, (EUR)(e)		186,016
	455,000	Goldman Sachs Group, Inc. (The),
		6.750%, 10/01/2037		454,429
	400,000	Goldman Sachs Group, Inc. (The),
		6.875%, 1/18/2038, (GBP)		644,161
	165,000	Goodyear Tire & Rubber Co. (The),
		7.000%, 3/15/2028		142,312
	25,000	GTE Corp.,
		6.940%, 4/15/2028		26,247
	20,000	HCA, Inc.,
		5.750%, 3/15/2014		18,875
	55,000	HCA, Inc.,
		6.250%, 2/15/2013		54,588
	90,000	HCA, Inc.,
		6.375%, 1/15/2015		85,500
	15,000	HCA, Inc.,
		6.500%, 2/15/2016		14,231
	40,000	HCA, Inc.,
		6.750%, 7/15/2013		40,000
	225,000	HCA, Inc.,
		7.050%, 12/01/2027		192,375
	245,000	HCA, Inc.,
		7.190%, 11/15/2015		231,525
	90,000	HCA, Inc.,
		7.500%, 12/15/2023		82,350
	250,000	HCA, Inc.,
		7.500%, 11/06/2033		217,500
	1,295,000	HCA, Inc.,
		7.690%, 6/15/2025		1,197,875
	395,000	HCA, Inc.,
		8.360%, 4/15/2024		374,262
	125,000	HCA, Inc.,
		8.750%, 11/01/2010, (GBP)		193,955
	110,000	HCA, Inc., MTN,
		7.580%, 9/15/2025		99,550
	75,000	HCA, Inc., MTN,
		7.750%, 7/15/2036		66,000
	75,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC,
		9.750%, 11/15/2014		76,500
	470,000	Highwoods Properties, Inc.,
		5.850%, 3/15/2017		449,238
	260,000	Hilcorp Energy I LP,
		7.750%, 11/01/2015, 144A		256,750
	110,000	Incitec Pivot Finance LLC,
		6.000%, 12/10/2019, 144A		111,171

See accompanying notes to financial statements.

21

LOOMIS SAYLES GLOBAL MARKETS FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	250,000	iStar Financial, Inc.,
		5.150%, 3/01/2012	$	218,750
	95,000	iStar Financial, Inc.,
		5.500%, 6/15/2012		82,294
	105,000	iStar Financial, Inc.,
		5.650%, 9/15/2011		95,812
	70,000	iStar Financial, Inc.,
		5.850%, 3/15/2017		51,800
	300,000	iStar Financial, Inc.,
		5.875%, 3/15/2016		225,000
	145,000	iStar Financial, Inc.,
		6.050%, 4/15/2015		106,575
	985,000	iStar Financial, Inc.,
		8.625%, 6/01/2013		842,175
	35,000	iStar Financial, Inc., Series B,
		5.700%, 3/01/2014		27,825
	950,000	iStar Financial, Inc., Series B,
		5.950%, 10/15/2013		760,000
	5,000	J.C. Penney Corp., Inc.,
		5.750%, 2/15/2018		5,006
	125,000	J.C. Penney Corp., Inc.,
		6.375%, 10/15/2036		116,406
	15,000	J.C. Penney Corp., Inc.,
		7.125%, 11/15/2023		15,131
	5,000	J.C. Penney Corp., Inc.,
		7.625%, 3/01/2097		4,525
	450,000	Jefferies Group, Inc.,
		8.500%, 7/15/2019		499,204
	260,000	K. Hovnanian Enterprises, Inc.,
		6.250%, 1/15/2016		200,200
	15,000	K. Hovnanian Enterprises, Inc.,
		6.375%, 12/15/2014		12,038
	150,000	Kraft Foods, Inc.,
		6.250%, 3/20/2015, (EUR)		229,057
	15,000	Lennar Corp., Series B,
		5.500%, 9/01/2014		14,475
	1,090,000	Lennar Corp., Series B,
		5.600%, 5/31/2015		1,035,500
	55,000	Lennar Corp., Series B,
		6.500%, 4/15/2016		53,006
	15,000	Level 3 Financing, Inc.,
		8.750%, 2/15/2017		13,725
	10,000	Level 3 Financing, Inc.,
		9.250%, 11/01/2014		9,750
	130,000	MBNA Credit Card Master Note Trust, Series 03A5,
		4.150%, 9/19/2012, (EUR)		175,777
	150,000	Merrill Lynch & Co., Inc., EMTN,
		4.625%, 9/14/2018, (EUR)		192,901
	230,000	Morgan Stanley,
		5.375%, 11/14/2013, (GBP)		368,571
	500,000	New Albertson’s, Inc.,
		7.450%, 8/01/2029		422,500
	50,000	New Albertson’s, Inc., Series C, MTN,
		6.625%, 6/01/2028		37,875
	80,000	News America, Inc.,
		6.150%, 3/01/2037		78,856
	25,000	News America, Inc.,
		6.400%, 12/15/2035		25,529

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	925,000	Nextel Communications, Inc., Series D,
		7.375%, 8/01/2015	$	878,750
	140,000	Nextel Communications, Inc., Series E,
		6.875%, 10/31/2013		136,500
	230,000	Nextel Communications, Inc., Series F,
		5.950%, 3/15/2014		214,475
	250,000	NGC Corp. Capital Trust I, Series B,
		8.316%, 6/01/2027		130,000
	35,000	Nortel Networks Capital Corp.,
		7.875%, 6/15/2026(d)		25,200
	1,000,000	NRG Energy, Inc.,
		7.375%, 2/01/2016		992,500
	50,000	Ohio Edison Co.,
		6.875%, 7/15/2036		53,886
	150,000	Owens Brockway Glass Container, Inc.,
		6.750%, 12/01/2014, (EUR)		206,650
	565,000	Owens Corning, Inc.,
		6.500%, 12/01/2016		597,948
	535,000	Owens Corning, Inc.,
		7.000%, 12/01/2036		524,186
	40,000	Owens-Illinois, Inc.,
		7.800%, 5/15/2018		41,300
	47,000	Pulte Group, Inc.,
		5.200%, 2/15/2015		45,061
	540,000	Pulte Group, Inc.,
		6.000%, 2/15/2035		418,500
	695,000	Pulte Group, Inc.,
		6.375%, 5/15/2033		556,000
	1,335,000	Qwest Capital Funding, Inc.,
		6.500%, 11/15/2018		1,248,225
	650,000	Qwest Capital Funding, Inc.,
		6.875%, 7/15/2028		581,750
	400,000	Qwest Capital Funding, Inc.,
		7.625%, 8/03/2021		392,000
	60,000	Qwest Capital Funding, Inc.,
		7.750%, 2/15/2031		57,000
	560,000	Qwest Corp.,
		6.875%, 9/15/2033		540,400
	115,000	Qwest Corp.,
		7.250%, 9/15/2025		116,150
	80,000	Reynolds American, Inc.,
		6.750%, 6/15/2017		85,687
	20,000	Reynolds American, Inc.,
		7.250%, 6/15/2037		20,356
	1,600(††††)	SLM Corp.,
		6.000%, 12/15/2043		28,476
	120,000	SLM Corp., MTN,
		5.050%, 11/14/2014		111,046
	35,000	SLM Corp., MTN,
		5.125%, 8/27/2012		34,778
	15,000	SLM Corp., Series A, MTN,
		4.500%, 7/26/2010		15,069
	228,000	SLM Corp., Series A, MTN,
		5.000%, 10/01/2013		217,822
	10,000	SLM Corp., Series A, MTN,
		5.000%, 6/15/2018		8,251
	115,000	SLM Corp., Series A, MTN,
		5.375%, 1/15/2013		113,579

See accompanying notes to financial statements.

22

LOOMIS SAYLES GLOBAL MARKETS FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	75,000	SLM Corp., Series A, MTN,
		5.375%, 5/15/2014	$	71,039
	30,000	SLM Corp., Series A, MTN,
		5.400%, 10/25/2011		30,281
	20,000	SLM Corp., Series A, MTN,
		5.625%, 8/01/2033		15,433
	625,000	SLM Corp., Series A, MTN,
		8.450%, 6/15/2018		632,101
	294,000	Sprint Capital Corp.,
		6.875%, 11/15/2028		236,670
	320,000	Sprint Capital Corp.,
		6.900%, 5/01/2019		292,800
	110,000	Sprint Capital Corp.,
		8.750%, 3/15/2032		102,025
	26,000	Sprint Nextel Corp.,
		6.000%, 12/01/2016		23,465
	265,000	Tenet Healthcare Corp.,
		6.875%, 11/15/2031		215,975
	23,000	Tenet Healthcare Corp.,
		7.375%, 2/01/2013		23,230
	250,000	Textron, Inc.,
		3.875%, 3/11/2013, (EUR)		333,087
	395,000	Time Warner, Inc.,
		6.625%, 5/15/2029		416,480
	105,000	Toll Brothers Finance Corp.,
		5.150%, 5/15/2015		104,777
	375,000	Toys R Us, Inc.,
		7.375%, 10/15/2018		360,000
	3,150,000	TXU Corp., Series P,
		5.550%, 11/15/2014		2,299,500
	2,570,000	TXU Corp., Series Q,
		6.500%, 11/15/2024		1,336,400
	30,000	TXU Corp., Series R,
		6.550%, 11/15/2034		15,450
	1,775,000	U.S. Treasury Note,
		1.000%, 12/31/2011		1,778,536
	400,000	U.S. Treasury Note,
		3.625%, 2/15/2020		393,188
	490,000	UAL Pass Through Trust, Series 2009-1,
		10.400%, 11/01/2016		526,750
	2,320,000	United Rentals North America, Inc.,
		7.000%, 2/15/2014		2,146,000
	840,000	United Rentals North America, Inc.,
		7.750%, 11/15/2013		806,400
	770,000	United States Steel Corp.,
		6.650%, 6/01/2037		662,200
	50,000	USG Corp.,
		6.300%, 11/15/2016		44,750
	230,000	USG Corp.,
		9.500%, 1/15/2018		232,587
	106,000	Verizon Communications, Inc.,
		5.850%, 9/15/2035		103,166
	5,000	Verizon Maryland, Inc.,
		5.125%, 6/15/2033		4,070
	140,000	Verizon New York, Inc., Series B,
		7.375%, 4/01/2032		150,503
	110,000	Verizon Pennsylvania, Inc.,
		6.000%, 12/01/2028		98,449
	185,000	Wells Fargo & Co.,
		4.625%, 11/02/2035, (GBP)		247,528

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	230,000	Williams Cos., Inc. (The),
		7.875%, 9/01/2021	$	270,806
	74,000	Williams Cos., Inc. (The), Series A,
		7.500%, 1/15/2031		81,310
	24,000	Xerox Capital Trust I,
		8.000%, 2/01/2027		23,547
	125,000	Xerox Corp.,
		6.750%, 2/01/2017		138,006
	20,000	Xerox Corp., MTN,
		7.200%, 4/01/2016		22,351
				58,036,438
		Total Non-Convertible Bonds (Identified Cost $83,994,246)		89,297,697
	Convertible Bonds — 1.2%
		United States — 1.2%
	125,000	Ford Motor Co.,
		4.250%, 11/15/2016		187,031
	1,125,000	Intel Corp.,
		3.250%, 8/01/2039, 144A		1,348,594
	430,000	iStar Financial, Inc.,
		0.751%, 10/01/2012(e)		327,015
	365,000	Kulicke & Soffa Industries, Inc.,
		0.875%, 6/01/2012		336,712
	440,000	Level 3 Communications, Inc.,
		3.500%, 6/15/2012		405,350
	185,000	Level 3 Communications, Inc.,
		5.250%, 12/15/2011		180,144
	215,000	Level 3 Communications, Inc.,
		7.000%, 3/15/2015, 144A(f)		256,925
	200,000	NII Holdings, Inc.,
		3.125%, 6/15/2012		188,750
	80,000	Valeant Pharmaceuticals International,
		4.000%, 11/15/2013		111,400
		Total Convertible Bonds (Identified Cost $3,015,595)		3,341,921
	Municipals — 0.0%
		United States — 0.0%
	135,000	Virginia Tobacco Settlement Financing Corp., Series A-1,
		6.706%, 6/01/2046(f) (Identified Cost $134,987)		98,310
		Total Bonds and Notes (Identified Cost $87,144,828)		92,737,928
	Bank Loans — 0.1%
		United States — 0.1%
	1,958	Dole Food Co., Inc., Credit Link Deposit,
		7.887%, 4/12/2013(g)		1,958
	57,836	Hawaiian Telcom Communications, Inc., Tranche C Term Loan,
		4.750%, 6/01/2014(g)(h)		41,063
	40,000	Level 3 Financing, Inc., Tranche A Term Loan,
		2.501%, 3/13/2014(g)		37,138
	2,751	Sungard Data Systems, Inc., Tranche A,
		1.979%, 2/28/2014(g)		2,656
	64,494	SuperMedia, Inc., Exit Term Loan,
		11.000%, 12/31/2015(g)		60,687
	7,314	Tribune Company, Term Loan X,
		5.000%, 6/04/2009(d)(g)(i)		4,553
		Total Bank Loans (Identified Cost $153,541)		148,055

See accompanying notes to financial statements.

23

LOOMIS SAYLES GLOBAL MARKETS FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Shares		Description	Value (†)
	Preferred Stocks — 0.4%
		United States — 0.4%
	12,940	Federal Home Loan Mortgage Corp., (fixed rate to 12/31/2012, variable rate thereafter), 8.375%(b)(j)	$	16,434
	17,500	Federal National Mortgage Association, (fixed rate to 12/13/2010, variable rate thereafter), 8.250%(b)(j)		22,225
	682	GMAC, Inc., Series G, 7.000%, 144A		519,854
	820	Lucent Technologies Capital Trust, 7.750%		652,720
		Total Preferred Stocks (Identified Cost $1,389,780)		1,211,233
	Warrants — 0.1%
		United States — 0.1%
	12,495	Valeant Pharmaceuticals International, Expiration 8/16/2010(b)(f)(k) (Identified Cost $0)		141,194
Principal Amount (‡)
	Short-Term Investments — 1.3%
$	1,871	Repurchase Agreement with State Street Corp., dated 3/31/2010 at 0.000%, to be repurchased at $1,871 on 4/01/2010 collateralized by $5,000 U.S. Treasury Bill, due 7/08/2010 valued at $4,998 including accrued interest (Note 2 of Notes to Financial Statemets)		1,871
	3,792,336	Tri-Party Repurchase Agreement with Fixed Income Clearing Corp., dated 3/31/2010 at 0.000% to be repurchased at $3,792,336 on 4/01/2010 collateralized by $3,855,000 Federal National Mortgage Association, 3.000% due 1/29/2015 valued at $3,869,456 including accrued interest (Note 2 of Notes to Financial Statements)		3,792,336
		Total Short-Term Investments (Identified Cost $3,794,207)		3,794,207
		Total Investments — 98.1%
		(Identified Cost $240,455,054)(a)		278,762,393
		Other assets less liabilities — 1.9%		5,423,783
		Net Assets — 100.0%	$	284,186,176
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Security held in units. One unit represents a principal amount of 1,000. Amount shown represents principal amount including inflation adjustments.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.
	(††††)	Amount shown represents units. One unit represents a principal amount of 25.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.): At March 31, 2010, the net unrealized appreciation on investments based on a cost of $240,555,531 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	44,018,436
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(5,811,574	)
		Net unrealized appreciation	$	38,206,862
	(b)	Non-income producing security.
	(c)	All or a portion of this security is held as collateral for open forward contracts.
	(d)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
	(e)	Variable rate security. Rate as of March 31, 2010 is disclosed.
	(f)	Illiquid security. At March 31, 2010, the value of these securities amounted to $496,429 or 0.2% of net assets.
	(g)	Variable rate security. Rate shown represents the weighted average rate at March 31, 2010.

(h)	All or a portion of interest payment is paid-in-kind.
(i)	Issuer has filed for bankruptcy.
(j)	Future dividend payments have been eliminated as the issuer has been placed in conservatorship.
(k)	Fair valued security by the Fund’s investment adviser. At March 31, 2010 the value of this security amounted to $141,194 or 0.0% of net assets.
144A	Securities 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 March 31, 2010, the total value of these securities amounted to $14,119,017 or 5.0% of net assets.
ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs are significantly influenced by trading on exchanges not located in the United States.
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
MTN	Medium Term Note
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CHF	Swiss Franc
DKK	Danish Krone
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
JPY	Japanese Yen
KRW	South Korean Won
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar
PLN	Polish Zloty
SEK	Swedish Krona
SGD	Singapore Dollar

See accompanying notes to financial statements.

24

LOOMIS SAYLES GLOBAL MARKETS FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

At March 31, 2010, the Fund had the following open forward foreign currency contracts:

Contract to Buy	Delivery Date	Currency	Units	Notional Value		Unrealized Appreciation
Buy1	09/23/2010	Indian Rupee	17,250,000	$	378,540	$	2,231
Buy2	09/22/2010	Malaysian Ringgit	1,250,000		379,570		2,951
Buy3	06/14/2010	South Korean Won	780,000,000		687,564		1,970
Buy4	06/14/2010	South Korean Won	870,000,000		766,898		2,198
						$	9,350

¹ Counterparty is UBS.

² Counterparty is JP Morgan Chase Bank.

³ Counterparty is Barclays Bank PLC.

⁴ Counterparty is Credit Suisse.

Industry Summary at March 31, 2010 (Unaudited)

Commercial Banks	5.9	%
Computers & Peripherals	5.4
Internet Software & Services	5.2
Metals & Mining	4.6
Semiconductors & Semiconductor Equipment	4.6
Internet & Catalog Retail	3.9
Oil, Gas & Consumable Fuels	3.8
Personal Products	3.4
Treasuries	3.2
Non-Captive Diversified	2.6
Automotive	2.5
Electrical Equipment	2.4
Sovereigns	2.3
Capital Markets	2.3
Automobiles	2.2
Energy Equipment & Services	2.1
Electric	2.0
Other Investments, less than 2% each	38.4
Short-Term Investments	1.3
Total Investments	98.1
Other assets less liabilities (including open forward foreign currency contracts)	1.9
Net Assets	100.0	%

Currency Exposure at March 31, 2010 as a Percentage of Net Assets (Unaudited)

United States Dollar	69.3	%
British Pound	6.0
Brazilian Real	4.8
Euro	4.5
Hong Kong Dollar	3.4
Japanese Yen	2.3
South Korean Won	2.1
Swiss Franc	2.0
Other, less than 2% each	3.7
Total Investments	98.1
Other assets less liabilities (including open forward foreign currency contracts)	1.9
Net Assets	100.0	%

See accompanying notes to financial statements.

25

LOOMIS SAYLES GROWTH FUND — PORTFOLIO OF INVESTMENTS

Investments as of March 31, 2010 (Unaudited)

Shares	Description	Value (†)
Common Stocks — 99.1% of Net Assets
	Aerospace & Defense — 1.1%
9,674	Precision Castparts Corp.	$	1,225,793
	Air Freight & Logistics — 2.2%
37,769	United Parcel Service, Inc., Class B		2,432,701
	Auto Components — 1.8%
60,387	Johnson Controls, Inc.		1,992,167
	Automobiles — 1.9%
170,014	Ford Motor Co.(b)		2,137,076
	Biotechnology — 1.7%
42,115	Gilead Sciences, Inc.(b)		1,915,390
	Capital Markets — 3.5%
20,661	Franklin Resources, Inc.		2,291,305
9,776	Goldman Sachs Group, Inc. (The)		1,668,079
			3,959,384
	Communications Equipment — 5.1%
157,724	Cisco Systems, Inc.(b)		4,105,556
25,856	F5 Networks, Inc.(b)		1,590,402
			5,695,958
	Computers & Peripherals — 8.6%
23,729	Apple, Inc.(b)		5,574,654
42,368	Hewlett-Packard Co.		2,251,859
53,320	NetApp, Inc.(b)		1,736,099
			9,562,612
	Consumer Finance — 1.6%
42,800	American Express Co.		1,765,928
	Diversified Financial Services — 1.5%
38,133	JPMorgan Chase & Co.		1,706,452
	Electrical Equipment — 1.2%
25,878	Emerson Electric Co.		1,302,698
	Energy Equipment & Services — 1.6%
27,919	FMC Technologies, Inc.(b)		1,804,405
	Health Care Equipment & Supplies — 2.4%
51,947	CareFusion Corp.(b)		1,372,959
3,806	Intuitive Surgical, Inc.(b)		1,324,983
			2,697,942
	Health Care Providers & Services — 3.5%
23,393	Express Scripts, Inc.(b)		2,380,472
24,411	Medco Health Solutions, Inc.(b)		1,575,974
			3,956,446
	Hotels, Restaurants & Leisure — 2.4%
111,997	Starbucks Corp.(b)		2,718,167
	Industrial Conglomerates — 2.2%
29,880	3M Co.		2,497,072
	Internet & Catalog Retail — 8.2%
32,898	Amazon.com, Inc.(b)		4,465,245
18,519	Priceline.com, Inc.(b)		4,722,345
			9,187,590
	Internet Software & Services — 3.6%
7,182	Google, Inc., Class A(b)		4,072,266

Shares	Description	Value (†)
	IT Services — 5.7%
53,073	Cognizant Technology Solutions Corp., Class A(b)	$	2,705,662
40,418	Visa, Inc., Class A		3,679,250
			6,384,912
	Machinery — 4.4%
16,217	Bucyrus International, Inc.		1,070,160
20,415	Danaher Corp.		1,631,363
38,090	Deere & Co.		2,264,831
			4,966,354
	Media — 1.2%
40,877	Discovery Communications, Inc., Class A(b)		1,381,234
	Metals & Mining — 3.2%
31,109	Cliffs Natural Resources, Inc.		2,207,184
14,875	Walter Energy, Inc.		1,372,516
			3,579,700
	Multiline Retail — 2.0%
54,238	Nordstrom, Inc.		2,215,622
	Oil, Gas & Consumable Fuels — 4.8%
34,589	Anadarko Petroleum Corp.		2,519,117
30,930	Range Resources Corp.		1,449,689
32,861	Southwestern Energy Co.(b)		1,338,100
			5,306,906
	Personal Products — 1.4%
23,379	Estee Lauder Cos., Inc., (The) Class A		1,516,596
	Pharmaceuticals — 3.3%
122,873	Mylan, Inc.(b)		2,790,446
14,752	Perrigo Co.		866,237
			3,656,683
	Semiconductors & Semiconductor Equipment — 7.7%
92,409	Broadcom Corp., Class A		3,066,130
32,950	Cree, Inc.(b)		2,313,749
79,172	Intel Corp.		1,762,369
71,868	Marvell Technology Group Ltd.(b)		1,464,670
			8,606,918
	Software — 7.6%
154,391	Microsoft Corp.		4,519,025
89,355	Oracle Corp.		2,295,530
22,783	Salesforce.com, Inc.(b)		1,696,194
			8,510,749
	Specialty Retail — 3.7%
38,843	Guess?, Inc.		1,824,844
49,232	Tiffany & Co.		2,338,028
			4,162,872
	Total Common Stocks (Identified Cost $86,323,496)		110,918,593
	Total Investments — 99.1% (Identified Cost $86,323,496)(a)		110,918,593
	Other assets less liabilities — 0.9%		951,939
	Net Assets — 100.0%	$	111,870,532

See accompanying notes to financial statements.

26

LOOMIS SAYLES GROWTH FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

(†)	See Note 2 of Notes to Financial Statements.
(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.):
	At March 31, 2010, the net unrealized appreciation on investments based on a cost of $86,323,496 for federal income tax purposes was as follows:
	Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	25,078,116
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(483,019	)
	Net unrealized appreciation	$	24,595,097
(b)	Non-income producing security.

Industry Summary at March 31, 2010 (Unaudited)

Computers & Peripherals	8.6	%
Internet & Catalog Retail	8.2
Semiconductors & Semiconductor Equipment	7.7
Software	7.6
IT Services	5.7
Communications Equipment	5.1
Oil, Gas & Consumable Fuels	4.8
Machinery	4.4
Specialty Retail	3.7
Internet Software & Services	3.6
Capital Markets	3.5
Health Care Providers & Services	3.5
Pharmaceuticals	3.3
Metals & Mining	3.2
Hotels, Restaurants & Leisure	2.4
Health Care Equipment & Supplies	2.4
Industrial Conglomerates	2.2
Air Freight & Logistics	2.2
Multiline Retail	2.0
Other Investments, less than 2% each	15.0
Total Investments	99.1
Other assets less liabilities	0.9
Net Assets	100.0	%

See accompanying notes to financial statements.

27

LOOMIS SAYLES MID CAP GROWTH FUND — PORTFOLIO OF INVESTMENTS

Investments as of March 31, 2010 (Unaudited)

Shares	Description	Value (†)
Common Stocks — 97.8% of Net Assets
	Aerospace & Defense — 2.1%
12,746	Precision Castparts Corp.	$	1,615,046
	Biotechnology — 4.2%
16,384	Alexion Pharmaceuticals, Inc.(b)		890,798
38,519	Amylin Pharmaceuticals, Inc.(b)		866,292
24,842	Human Genome Sciences, Inc.(b)		750,228
18,542	Vertex Pharmaceuticals, Inc.(b)		757,812
			3,265,130
	Capital Markets — 4.5%
24,953	Evercore Partners, Inc., Class A		748,590
13,869	Greenhill & Co., Inc.		1,138,506
29,343	T. Rowe Price Group, Inc.		1,611,811
			3,498,907
	Commercial Banks — 1.6%
32,297	Comerica, Inc.		1,228,578
	Communications Equipment — 2.7%
34,181	F5 Networks, Inc.(b)		2,102,473
	Computers & Peripherals — 1.4%
33,348	NetApp, Inc.(b)		1,085,811
	Electrical Equipment — 1.7%
23,659	Rockwell Automation, Inc.		1,333,421
	Electronic Equipment Instruments & Components — 2.1%
27,373	Dolby Laboratories, Inc., Class A(b)		1,605,974
	Energy Equipment & Services — 1.7%
21,373	Dril-Quip, Inc.(b)		1,300,333
	Food Products — 4.7%
20,907	Green Mountain Coffee Roasters, Inc.(b)		2,024,216
31,321	Mead Johnson Nutrition Co., Class A		1,629,631
			3,653,847
	Health Care Equipment & Supplies — 3.4%
11,668	Edwards Lifesciences Corp.(b)		1,153,732
4,337	Intuitive Surgical, Inc.(b)		1,509,840
			2,663,572
	Health Care Providers & Services — 2.8%
31,713	Catalyst Health Solutions, Inc.(b)		1,312,284
16,863	HMS Holdings Corp.(b)		859,844
			2,172,128
	Health Care Technology — 1.5%
13,980	Cerner Corp.(b)		1,189,139
	Hotels, Restaurants & Leisure — 3.8%
37,745	Ctrip.com International Ltd., ADR(b)		1,479,604
19,774	Panera Bread Co., Class A(b)		1,512,513
			2,992,117
	Internet & Catalog Retail — 4.1%
17,933	Netflix, Inc.(b)		1,322,380
7,269	Priceline.com, Inc.(b)		1,853,595
			3,175,975
	Internet Software & Services — 9.0%
47,524	Akamai Technologies, Inc.(b)		1,492,729
3,018	Baidu, Inc., Sponsored ADR(b)		1,801,746
43,234	GSI Commerce, Inc.(b)		1,196,285
25,940	MercadoLibre, Inc.(b)		1,250,567

Shares	Description	Value (†)
	Internet Software & Services — continued
22,711	VistaPrint NV(b)	$	1,300,205
			7,041,532
	IT Services — 2.1%
32,045	Cognizant Technology Solutions Corp., Class A(b)		1,633,654
	Life Sciences Tools & Services — 4.0%
31,422	Life Technologies Corp.(b)		1,642,428
13,740	Mettler-Toledo International, Inc.(b)		1,500,408
			3,142,836
	Machinery — 4.4%
23,859	Bucyrus International, Inc.		1,574,455
29,564	Cummins, Inc.		1,831,490
			3,405,945
	Metals & Mining — 2.5%
21,017	Walter Energy, Inc.		1,939,239
	Oil, Gas & Consumable Fuels — 5.9%
35,253	Concho Resources, Inc.(b)		1,775,341
36,682	Massey Energy Co.		1,918,102
40,365	Rosetta Resources, Inc.(b)		950,596
			4,644,039
	Personal Products — 3.0%
18,295	Estee Lauder Cos., Inc., (The) Class A		1,186,797
23,870	NBTY, Inc.(b)		1,145,282
			2,332,079
	Pharmaceuticals — 2.0%
26,645	Perrigo Co.		1,564,594
	Professional Services — 1.5%
37,946	Robert Half International, Inc.		1,154,697
	Real Estate Management & Development — 1.6%
78,806	CB Richard Ellis Group, Inc., Class A(b)		1,249,075
	Semiconductors & Semiconductor Equipment — 5.4%
115,805	ARM Holdings PLC, Sponsored ADR		1,237,956
26,911	Cree, Inc.(b)		1,889,690
92,196	Cypress Semiconductor Corp.(b)		1,060,254
			4,187,900
	Software — 4.4%
19,145	Concur Technologies, Inc.(b)		785,136
23,941	Salesforce.com, Inc.(b)		1,782,408
47,724	SuccessFactors, Inc.(b)		908,665
			3,476,209
	Specialty Retail — 4.7%
20,944	Abercrombie & Fitch Co., Class A		955,884
33,106	Guess?, Inc.		1,555,320
26,107	J. Crew Group, Inc.(b)		1,198,311
			3,709,515
	Textiles, Apparel & Luxury Goods — 5.0%
30,856	Fossil, Inc.(b)		1,164,505
32,639	Lululemon Athletica, Inc.(b)		1,354,519
24,661	Phillips-Van Heusen Corp.		1,414,555
			3,933,579
	Total Common Stocks (Identified Cost $58,794,281)		76,297,344

See accompanying notes to financial statements.

28

LOOMIS SAYLES MID CAP GROWTH FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount		Description	Value (†)
	Short-Term Investments — 2.3%
$	1,773,973	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2010 at 0.000% to be repurchased at $1,773,973 on 4/01/2010 collateralized by $1,810,000 Federal Home Loan Mortgage Corp., 2.000% due 3/29/2013 valued at $1,812,263, including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $1,773,973)	$	1,773,973
		Total Investments — 100.1% (Identified Cost $60,568,254)(a)		78,071,317
		Other assets less liabilities — (0.1)%		(71,563	)
		Net Assets — 100.0%	$	77,999,754
	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.): At March 31, 2010, the net unrealized appreciation on investments based on a cost of $60,568,254 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	17,778,840
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(275,777	)
		Net unrealized appreciation	$	17,503,063
	(b)	Non-income producing security.
	ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs are significantly influenced by trading on exchanges not located in the United States.

Industry Summary at March 31, 2010 (Unaudited)

Internet Software & Services	9.0	%
Oil, Gas & Consumable Fuels	5.9
Semiconductors & Semiconductor Equipment	5.4
Textiles, Apparel & Luxury Goods	5.0
Specialty Retail	4.7
Food Products	4.7
Capital Markets	4.5
Software	4.4
Machinery	4.4
Biotechnology	4.2
Internet & Catalog Retail	4.1
Life Sciences Tools & Services	4.0
Hotels, Restaurants & Leisure	3.8
Health Care Equipment & Supplies	3.4
Personal Products	3.0
Health Care Providers & Services	2.8
Communications Equipment	2.7
Metals & Mining	2.5
IT Services	2.1
Aerospace & Defense	2.1
Electronic Equipment Instruments & Components	2.1
Pharmaceuticals	2.0
Other Investments, less than 2% each	11.0
Short-Term Investments	2.3
Total Investments	100.1
Other assets less liabilities	(0.1	)
Net Assets	100.0	%

See accompanying notes to financial statements.

29

LOOMIS SAYLES VALUE FUND — PORTFOLIO OF INVESTMENTS

Investments as of March 31, 2010 (Unaudited)

Shares	Description	Value (†)
Common Stocks — 96.0% of Net Assets
	Aerospace & Defense — 3.2%
271,238	Honeywell International, Inc.	$	12,278,944
276,484	Northrop Grumman Corp.		18,129,056
			30,408,000
	Auto Components — 1.9%
601,483	Goodyear Tire & Rubber Co. (The)(b)		7,602,745
303,057	Johnson Controls, Inc.		9,997,851
			17,600,596
	Beverages — 2.5%
190,639	Dr Pepper Snapple Group, Inc.		6,704,774
257,963	PepsiCo, Inc.		17,066,832
			23,771,606
	Biotechnology — 1.1%
179,104	Amgen, Inc.(b)		10,703,255
	Capital Markets — 6.4%
428,586	Ameriprise Financial, Inc.		19,440,661
451,737	Bank of New York Mellon Corp.		13,949,638
394,740	Legg Mason, Inc.		11,317,196
348,662	State Street Corp.		15,738,603
			60,446,098
	Chemicals — 0.7%
94,510	Air Products & Chemicals, Inc.		6,989,014
	Commercial Banks — 6.0%
647,581	Fifth Third Bancorp		8,800,626
274,333	PNC Financial Services Group, Inc.		16,377,680
449,176	U.S. Bancorp		11,624,675
640,615	Wells Fargo & Co.		19,935,939
			56,738,920
	Computers & Peripherals — 3.1%
384,209	Hewlett-Packard Co.		20,420,709
72,097	International Business Machines Corp.		9,246,440
			29,667,149
	Construction & Engineering — 1.0%
362,615	Foster Wheeler AG(b)		9,841,371
	Consumer Finance — 1.0%
633,915	Discover Financial Services		9,445,333
	Containers & Packaging — 1.5%
395,600	Owens-Illinois, Inc.(b)		14,059,624
	Diversified Financial Services — 5.2%
1,168,608	Bank of America Corp.		20,859,653
626,908	JPMorgan Chase & Co.		28,054,133
			48,913,786
	Diversified Telecommunication Services — 1.0%
277,549	CenturyTel, Inc.		9,841,888
	Electric Utilities — 2.4%
520,249	Allegheny Energy, Inc.		11,965,727
313,935	American Electric Power Co., Inc.		10,730,298
			22,696,025
	Electrical Equipment — 1.1%
481,977	ABB Ltd., Sponsored ADR(b)		10,526,378
	Energy Equipment & Services — 2.5%
41,857	Schlumberger Ltd.		2,656,245
266,301	Smith International, Inc.		11,403,009

Shares	Description	Value (†)
	Energy Equipment & Services — continued
196,520	Tidewater, Inc.	$	9,289,500
			23,348,754
	Food & Staples Retailing — 2.5%
337,947	CVS Caremark Corp.		12,355,342
207,235	Wal-Mart Stores, Inc.		11,522,266
			23,877,608
	Food Products — 1.2%
466,297	ConAgra Foods, Inc.		11,690,066
	Gas Utilities — 1.1%
248,989	EQT Corp.		10,208,549
	Health Care Equipment & Supplies — 3.2%
1,191,227	Boston Scientific Corp.(b)		8,600,659
222,621	Covidien PLC		11,193,384
237,751	Medtronic, Inc.		10,705,927
			30,499,970
	Health Care Providers & Services — 1.5%
435,326	UnitedHealth Group, Inc.		14,222,100
	Household Durables — 1.7%
208,812	Harman International Industries, Inc.(b)		9,768,225
570,362	Pulte Group, Inc.(b)		6,416,573
			16,184,798
	Industrial Conglomerates — 3.4%
1,082,068	General Electric Co.		19,693,637
121,404	Siemens AG, Sponsored ADR		12,136,758
			31,830,395
	Insurance — 3.9%
146,733	Berkshire Hathaway, Inc., Class B(b)		11,924,991
288,838	Travelers Cos., Inc. (The)		15,579,922
389,681	Unum Group		9,652,398
			37,157,311
	Internet Software & Services — 1.6%
213,811	AOL, Inc.(b)		5,405,142
358,026	eBay, Inc.(b)		9,648,801
			15,053,943
	Media — 4.7%
1,018,822	Comcast Corp., Class A		19,174,230
451,635	DIRECTV, Class A(b)		15,269,779
301,500	Time Warner, Inc.		9,427,905
			43,871,914
	Metals & Mining — 1.0%
215,962	ArcelorMittal, (NY Registered)		9,482,891
	Multi-Utilities & Unregulated Power — 1.1%
338,828	Public Service Enterprise Group, Inc.		10,002,203
	Oil, Gas & Consumable Fuels — 11.5%
159,498	Anadarko Petroleum Corp.		11,616,240
212,705	CONSOL Energy, Inc.		9,073,995
1,069,488	El Paso Corp.		11,593,250
130,631	EOG Resources, Inc.		12,140,845
275,869	ExxonMobil Corp.		18,477,706
269,866	Hess Corp.		16,880,118
290,948	Total SA, Sponsored ADR		16,880,803
607,200	Valero Energy Corp.		11,961,840
			108,624,797

See accompanying notes to financial statements.

30

LOOMIS SAYLES VALUE FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Shares		Description	Value (†)
		Paper & Forest Products — 1.2%
	242,453	Weyerhaeuser Co.	$	10,975,847
		Personal Products — 1.0%
	148,291	Estee Lauder Cos., Inc., (The) Class A		9,619,637
		Pharmaceuticals — 6.6%
	326,188	Bristol-Myers Squibb Co.		8,709,220
	156,732	Johnson & Johnson		10,218,927
	454,892	Merck & Co., Inc.		16,990,216
	914,702	Pfizer, Inc.		15,687,139
	279,803	Sanofi-Aventis SA, Sponsored ADR		10,453,440
				62,058,942
		Road & Rail — 1.1%
	178,900	Norfolk Southern Corp.		9,998,721
		Semiconductors & Semiconductor Equipment — 0.7%
	511,173	Applied Materials, Inc.		6,890,612
		Software — 2.8%
	331,903	Microsoft Corp.		9,714,801
	646,065	Oracle Corp.		16,597,410
				26,312,211
		Specialty Retail — 2.3%
	431,803	Gap, Inc. (The)		9,978,967
	491,320	Lowe’s Cos., Inc.		11,909,597
				21,888,564
		Wireless Telecommunication Services — 1.3%
	522,134	Vodafone Group PLC, Sponsored ADR		12,160,501
		Total Common Stocks (Identified Cost $807,788,206)		907,609,377
Principal Amount
	Short-Term Investments — 3.5%
$	32,720,374	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2010 at 0.000% to be repurchased at $32,720,374 on 4/01/2010 collateralized by $33,375,000 Federal Home Mortgage Corp., 2.125% due 6/18/2013 valued at $33,375,000, including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $32,720,374)		32,720,374
		Total Investments — 99.5% (Identified Cost $840,508,580)(a)		940,329,751
		Other assets less liabilities — 0.5%		4,821,626
		Net Assets — 100.0%	$	945,151,377
	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.): At March 31, 2010, the net unrealized appreciation on investments based on a cost of $840,508,580 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	109,427,839
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(9,606,668	)
		Net unrealized appreciation	$	99,821,171
	(b)	Non-income producing security.
	ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs are significantly influenced by trading on exchanges not located in the United States.

Industry Summary at March 31, 2010 (Unaudited)

Oil, Gas & Consumable Fuels	11.5	%
Pharmaceuticals	6.6
Capital Markets	6.4
Commercial Banks	6.0
Diversified Financial Services	5.2
Media	4.7
Insurance	3.9
Industrial Conglomerates	3.4
Health Care Equipment & Supplies	3.2
Aerospace & Defense	3.2
Computers & Peripherals	3.1
Software	2.8
Food & Staples Retailing	2.5
Beverages	2.5
Energy Equipment & Services	2.5
Electric Utilities	2.4
Specialty Retail	2.3
Other Investments, less than 2% each	23.8
Short-Term Investments	3.5
Total Investments	99.5
Other assets less liabilities	0.5
Net Assets	100.0	%

See accompanying notes to financial statements.

31

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32

STATEMENTS OF ASSETS AND LIABILITIES

March 31, 2010 (Unaudited)

	Disciplined Equity Fund			Global Markets Fund
ASSETS
Investments at cost	$	31,520,451		$	240,455,054
Net unrealized appreciation		3,418,050			38,307,339
Investments at value		34,938,501			278,762,393
Foreign currency at value (identified cost $0, $867,484, $0, $0 and $0)		—			879,207
Restricted foreign currency at value (identified cost $0, $1,905,601, $0, $0 and $0) (Note 8)		—			1,904,731
Receivable for Fund shares sold		9,387			938,723
Receivable for securities sold		701,128			1,463,661
Unrealized appreciation on forward foreign currency contracts (Note 2)		—			9,350
Dividends and interest receivable		29,195			2,091,772
Tax reclaims receivable		—			17,829
Foreign tax rebates receivable (Note 2)		—			3,248
TOTAL ASSETS		35,678,211			286,070,914
LIABILITIES
Options written, at value (premiums received $83,766, $0, $0, $0 and $0) (Note 2)		80,942			—
Payable for securities purchased		785,714			1,388,435
Payable for Fund shares redeemed		5,557			221,804
Payable to custodian bank		—			115
Management fees payable (Note 6)		8,413			168,068
Administrative fees payable (Note 6)		1,364			11,388
Deferred Trustees’ fees (Note 6)		44,103			49,758
Other accounts payable and accrued expenses		30,263			45,170
TOTAL LIABILITIES		956,356			1,884,738
NET ASSETS	$	34,721,855		$	284,186,176
NET ASSETS CONSIST OF:
Paid-in capital	$	36,020,293		$	345,727,731
Undistributed (Distributions in excess of) net investment income/Accumulated net investment (loss)		(5,501	)		1,047,380
Accumulated net realized loss on investments, options written and foreign currency transactions		(4,713,811	)		(100,913,684	)
Net unrealized appreciation on investments, options written and foreign currency translations		3,420,874			38,324,749
NET ASSETS	$	34,721,855		$	284,186,176
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	1,982,531		$	53,613,066
Shares of beneficial interest		278,183			3,983,269
Net asset value and redemption price per share	$	7.13		$	13.46
Offering price per share (100/94.25 of net asset value) (Note 1)	$	7.56		$	14.28
Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	150,170		$	—
Shares of beneficial interest		21,625			—
Net asset value and offering price per share	$	6.94		$	—
Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	1,334,797		$	107,117,499
Shares of beneficial interest		194,157			8,001,969
Net asset value and offering price per share	$	6.87		$	13.39
Class Y shares:
Net assets	$	31,254,357		$	123,455,611
Shares of beneficial interest		4,354,609			9,150,391
Net asset value, offering and redemption price per share	$	7.18		$	13.49
Admin Class shares:
Net assets	$	—		$	—
Shares of beneficial interest		—			—
Net asset value, offering and redemption price per share	$	—		$	—

See accompanying notes to financial statements.

33

Growth Fund			Mid Cap Growth Fund			Value Fund
$	86,323,496		$	60,568,254		$	840,508,580
	24,595,097			17,503,063			99,821,171
	110,918,593			78,071,317			940,329,751
	—			—			—
	—			—			—
	54,515			85,682			5,088,573
	3,392,526			473,869			—
	—			—			—
	50,723			13,959			686,337
	—			—			116,965
	—			—			—
	114,416,357			78,644,827			946,221,626
	—			—			—
	1,956,269			407,358			—
	141,303			117,587			376,535
	228,682			—			—
	48,617			34,586			392,712
	4,566			3,190			38,073
	80,308			47,568			217,426
	86,080			34,784			45,503
	2,545,825			645,073			1,070,249
$	111,870,532		$	77,999,754		$	945,151,377
$	211,283,424		$	203,357,315		$	926,131,162
	(333,814	)		(423,045	)		1,396,470
	(123,674,175	)		(142,437,579	)		(82,197,426	)
	24,595,097			17,503,063			99,821,171
$	111,870,532		$	77,999,754		$	945,151,377
$	34,024,298		$	46,369,556		$	135,132,875
	6,631,996			2,150,672			7,582,148
$	5.13		$	21.56		$	17.82
$	5.44		$	22.88		$	18.91
$	5,002,671		$	—		$	4,646,719
	1,024,160			—			259,918
$	4.88		$	—		$	17.88
$	14,572,797		$	21,716		$	10,974,324
	2,981,229			1,016			620,663
$	4.89		$	21.38		$	17.68
$	58,270,766		$	31,608,482		$	794,396,390
	10,745,263			1,421,533			44,523,621
$	5.42		$	22.24		$	17.84
$	—		$	—		$	1,069
	—			—			60
$	—		$	—		$	17.81

34

STATEMENTS OF OPERATIONS

For the Six Months Ended March 31, 2010 (Unaudited)

	Disciplined Equity Fund			Global Markets Fund
INVESTMENT INCOME
Dividends	$	231,829		$	909,582
Interest		—			3,349,241
Less net foreign taxes withheld		—			(57,994	)
		231,829			4,200,829
Expenses
Management fees (Note 6)		78,867			982,567
Service and distribution fees (Note 6)		10,333			564,654
Trustees’ fees and expenses (Note 6)		6,357			8,065
Administrative fees (Note 6)		7,634			63,405
Custodian fees and expenses		14,638			84,128
Transfer agent fees and expenses (Note 6)		14,405			112,876
Audit and tax services fees		22,727			26,327
Legal fees		310			2,551
Shareholder reporting expenses		2,984			19,319
Registration fees		33,605			32,801
Fee/expense recovery (Note 6)		—			—
Miscellaneous expenses		5,860			15,092
Total expenses		197,720			1,911,785
Less fee reduction and/or expense reimbursement (Note 6)		(45,498	)		(37,043	)
Net expenses		152,222			1,874,742
Net investment income (loss)		79,607			2,326,087
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		3,066,972			11,511,770
Options written		139,491			—
Foreign currency transactions		(1,650	)		88,963
Net change in unrealized appreciation (depreciation) on:
Investments		(344,662	)		11,705,106
Options written		2,824			—
Foreign currency translations		—			(30,317	)
Net realized and unrealized gain on investments, options written and foreign currency transactions		2,862,975			23,275,522
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,942,582		$	25,601,609

See accompanying notes to financial statements.

35

Growth Fund			Mid Cap Growth Fund			Value Fund
$	393,506		$	88,229		$	7,387,358
	—			—			—
	—			—			(122,161	)
	393,506			88,229			7,265,197
	278,395			299,194			2,029,139
	143,527			63,157			235,433
	7,514			6,797			13,788
	26,943			19,303			196,437
	13,704			10,561			17,700
	101,396			78,518			416,843
	20,756			21,662			17,342
	1,163			845			7,237
	24,436			12,923			25,592
	31,567			25,370			49,822
	1,517			—			—
	6,556			6,439			13,460
	657,474			544,769			3,022,793
	(15,201	)		(82,683	)		—
	642,273			462,086			3,022,793
	(248,767	)		(373,857	)		4,242,404
	9,299,166			11,503,117			16,538,931
	—			(17,532	)		—
	—			—			—
	5,785,194			2,108,746			55,321,675
	—			—			—
	—			—			—
	15,084,360			13,594,331			71,860,606
$	14,835,593		$	13,220,474		$	76,103,010

36

STATEMENTS OF CHANGES IN NET ASSETS

	Disciplined Equity Fund						Global Markets Fund
	Six Months Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009			Six Months Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009
FROM OPERATIONS:
Net investment income (loss)	$	79,607		$	227,891		$	2,326,087		$	6,881,001
Net realized gain (loss) on investments, options written and foreign currency transactions		3,204,813			(6,612,204	)		11,600,733			(80,934,410	)
Net change in unrealized appreciation (depreciation) on investments, options written and foreign currency translations		(341,838	)		5,341,200			11,674,789			77,383,636
Net increase (decrease) in net assets resulting from operations		2,942,582			(1,043,113	)		25,601,609			3,330,227
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(6,227	)		(16,599	)		(1,152,276	)		(1,215,467	)
Class B		—			—			—			—
Class C		—			(6,028	)		(1,701,697	)		(1,365,584	)
Class Y		(178,902	)		(193,935	)		(2,794,707	)		(2,348,859	)
Admin Class		—			—			—			—
Net realized capital gains
Class A		—			—			—			(14,673	)
Class C		—			—			—			(28,430	)
Class Y		—			—			—			(24,786	)
Total distributions		(185,129	)		(216,562	)		(5,648,680	)		(4,997,799	)
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 11)		1,880,885			5,893,459			14,627,910			(60,874,359	)
Net increase (decrease) in net assets		4,638,338			4,633,784			34,580,839			(62,541,931	)
NET ASSETS
Beginning of the period		30,083,517			25,449,733			249,605,337			312,147,268
End of the period	$	34,721,855		$	30,083,517		$	284,186,176		$	249,605,337
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME/ACCUMULATED NET INVESTMENT (LOSS)	$	(5,501	)	$	100,021		$	1,047,380		$	4,369,973

See accompanying notes to financial statements.

37

Growth Fund						Mid Cap Growth Fund						Value Fund
Six Months Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009			Six Months Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009			Six Months Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009
$	(248,767	)	$	(300,880	)	$	(373,857	)	$	(350,178	)	$	4,242,404		$	7,832,048
	9,299,166			(84,916,365	)		11,485,585			(49,001,103	)		16,538,931			(86,224,117	)
	5,785,194			36,216,597			2,108,746			26,716,743			55,321,675			84,560,021
	14,835,593			(49,000,648	)		13,220,474			(22,634,538	)		76,103,010			6,167,952
	—			—			—			—			(1,044,591	)		(1,386,477	)
	—			—			—			—			—			(12,760	)
	—			—			—			—			(22,715	)		(69,049	)
	—			—			—			—			(6,810,650	)		(4,718,484	)
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			(7,877,956	)		(6,186,770	)
	(14,938,091	)		(108,551,663	)		(17,229,665	)		(41,659,860	)		166,393,808			280,227,901
	(102,498	)		(157,552,311	)		(4,009,191	)		(64,294,398	)		234,618,862			280,209,083
	111,973,030			269,525,341			82,008,945			146,303,343			710,532,515			430,323,432
$	111,870,532		$	111,973,030		$	77,999,754		$	82,008,945		$	945,151,377		$	710,532,515
$	(333,814	)	$	(85,047	)	$	(423,045	)	$	(49,188	)	$	1,396,470		$	5,032,022

38

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment income (loss) (a)(b)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income (b)			Distributions from net realized capital gains			Total distributions (b)
DISCIPLINED EQUITY FUND
Class A
3/31/2010(g)	$	6.53	$	0.01		$	0.61		$	0.62		$	(0.02	)	$	—		$	(0.02	)
9/30/2009		6.98		0.04			(0.44	)		(0.40	)		(0.05	)		—			(0.05	)
9/30/2008		9.77		0.03			(1.80	)		(1.77	)		(0.05	)		(0.97	)		(1.02	)
9/30/2007		9.42		0.02			1.53			1.55			(0.07	)		(1.13	)		(1.20	)
9/30/2006		9.22		0.05			0.64			0.69			(0.03	)		(0.46	)		(0.49	)
9/30/2005		7.79		0.00			1.43			1.43			(0.00	)		—			(0.00	)
Class B
3/31/2010(g)		6.36		(0.01	)		0.59			0.58			—			—			—
9/30/2009		6.80		(0.00	)		(0.44	)		(0.44	)		—			—			—
9/30/2008		9.56		(0.03	)		(1.76	)		(1.79	)		—			(0.97	)		(0.97	)
9/30/2007		9.25		(0.05	)		1.50			1.45			(0.01	)		(1.13	)		(1.14	)
9/30/2006		9.10		(0.02	)		0.63			0.61			—			(0.46	)		(0.46	)
9/30/2005		7.73		(0.06	)		1.43			1.37			(0.00	)		—			(0.00	)
Class C
3/31/2010(g)		6.30		(0.01	)		0.58			0.57			—			—			—
9/30/2009		6.76		(0.00	)		(0.44	)		(0.44	)		(0.02	)		—			(0.02	)
9/30/2008		9.52		(0.03	)		(1.76	)		(1.79	)		—			(0.97	)		(0.97	)
9/30/2007		9.22		(0.05	)		1.50			1.45			(0.02	)		(1.13	)		(1.15	)
9/30/2006		9.08		(0.02	)		0.63			0.61			(0.01	)		(0.46	)		(0.47	)
9/30/2005		7.73		(0.07	)		1.42			1.35			(0.00	)		—			(0.00	)
Class Y
3/31/2010(g)		6.58		0.02			0.62			0.64			(0.04	)		—			(0.04	)
9/30/2009		7.03		0.06			(0.45	)		(0.39	)		(0.06	)		—			(0.06	)
9/30/2008		9.85		0.07			(1.82	)		(1.75	)		(0.10	)		(0.97	)		(1.07	)
9/30/2007		9.49		0.06			1.53			1.59			(0.10	)		(1.13	)		(1.23	)
9/30/2006		9.27		0.09			0.64			0.73			(0.05	)		(0.46	)		(0.51	)
9/30/2005		7.82		0.04			1.44			1.48			(0.03	)		—			(0.03	)

(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, if applicable.

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

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

See accompanying notes to financial statements.

39

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (c)(d)		Net assets, end of the period (000’s)		Net expenses (%) (e)(f)	Gross expenses (%) (f)	Net investment income (loss) (%) (f)		Portfolio turnover rate (%)
$	7.13	9.57		$	1,983	1.15	1.44	0.33		132
	6.53	(5.64	)		1,599	1.25	1.78	0.78		180
	6.98	(20.40	)		736	1.25	1.55	0.38		149
	9.77	17.98			1,198	1.25	1.50	0.22		148
	9.42	7.69			1,331	1.25	1.68	0.56		143
	9.22	18.42			344	1.25	34.73	0.03		133
	6.94	9.12			150	1.89	2.18	(0.42	)	132
	6.36	(6.47	)		168	2.00	2.49	(0.03	)	180
	6.80	(21.01	)		227	2.00	2.30	(0.37	)	149
	9.56	17.11			356	2.00	2.31	(0.51	)	148
	9.25	6.90			331	2.00	2.33	(0.19	)	143
	9.10	17.77			210	2.00	41.40	(0.71	)	133
	6.87	9.05			1,335	1.89	2.18	(0.42	)	132
	6.30	(6.41	)		1,460	2.00	2.51	(0.06	)	180
	6.76	(21.10	)		949	2.00	2.30	(0.39	)	149
	9.52	17.17			1,164	2.00	2.29	(0.54	)	148
	9.22	6.92			1,198	2.00	2.37	(0.18	)	143
	9.08	17.51			140	2.00	37.60	(0.76	)	133
	7.18	9.82			31,254	0.90	1.19	0.57		132
	6.58	(5.42	)		26,857	0.85	1.38	1.09		180
	7.03	(20.17	)		23,538	0.85	1.15	0.78		149
	9.85	18.39			27,400	0.85	1.11	0.62		148
	9.49	8.13			23,096	0.85	1.26	0.98		143
	9.27	18.99			24,651	0.85	1.31	0.43		133

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

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

(g) For the six months ended March 31, 2010 (Unaudited).

40

FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains (b)			Total distributions			Redemption fees (b)(c)
GLOBAL MARKETS FUND
Class A
3/31/2010(h)	$	12.50	$	0.13	$	1.13		$	1.26		$	(0.30	)	$	—		$	(0.30	)	$	—
9/30/2009		11.65		0.36		0.74	(i)		1.10			(0.25	)		(0.00	)		(0.25	)		—
9/30/2008		15.83		0.25		(3.46	)		(3.21	)		(0.53	)		(0.44	)		(0.97	)		0.00
9/30/2007		12.49		0.20		3.39			3.59			(0.25	)		—			(0.25	)		0.00
9/30/2006*		12.71		0.12		(0.34	)		(0.22	)		—			—			—			—
Class C
3/31/2010(h)		12.39		0.08		1.14			1.22			(0.22	)		—			(0.22	)		—
9/30/2009		11.51		0.28		0.75	(i)		1.03			(0.15	)		(0.00	)		(0.15	)		—
9/30/2008		15.70		0.15		(3.43	)		(3.28	)		(0.47	)		(0.44	)		(0.91	)		0.00
9/30/2007		12.43		0.10		3.36			3.46			(0.19	)		—			(0.19	)		0.00
9/30/2006*		12.71		0.06		(0.34	)		(0.28	)		—			—			—			—
Class Y
3/31/2010(h)		12.54		0.14		1.14			1.28			(0.33	)		—			(0.33	)		—
9/30/2009		11.70		0.38		0.75	(i)		1.13			(0.29	)		(0.00	)		(0.29	)		—
9/30/2008		15.87		0.30		(3.48	)		(3.18	)		(0.55	)		(0.44	)		(0.99	)		0.00
9/30/2007		12.51		0.24		3.39			3.63			(0.27	)		—			(0.27	)		0.00
9/30/2006**		11.84		0.19		0.64			0.83			(0.16	)		—			(0.16	)		0.00
9/30/2005		10.19		0.19		1.73			1.92			(0.27	)		—			(0.27	)		—

* From commencement of Class operations on February 1, 2006 through September 30, 2006.

** Prior to the close of business on February 1, 2006, the Fund offered Institutional Class shares, which were redesignated as Class Y shares on that date.

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

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

(c) Effective June 2, 2008, redemption fees were eliminated.

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

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

See accompanying notes to financial statements.

41

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (d)(e)		Net assets, end of the period (000’s)		Net expenses (%) (f)(g)		Gross expenses (%) (f)		Net investment income (%) (f)	Portfolio turnover rate (%)
$	13.46	10.28		$	53,613	1.25		1.28		1.96	49
	12.50	10.27			44,669	1.25		1.34		3.56	114
	11.65	(21.87	)		67,647	1.25		1.27		1.74	133
	15.83	29.05			28,927	1.25		1.37		1.44	78
	12.49	(1.73	)		10,438	1.25		1.56		1.52	103
	13.39	9.94			107,117	2.00		2.03		1.21	49
	12.39	9.40			96,208	2.00		2.09		2.82	114
	11.51	(22.42	)		124,178	2.00		2.02		1.04	133
	15.70	27.99			60,179	2.00		2.11		0.69	78
	12.43	(2.12	)		20,228	2.00		2.32		0.78	103
	13.49	10.46			123,456	1.00		1.03		2.20	49
	12.54	10.49			108,728	1.00		1.01		3.79	114
	11.70	(21.66	)		120,322	0.99	(j)	0.99	(j)	2.06	133
	15.87	29.36			80,824	1.00		1.02		1.70	78
	12.51	7.07			58,650	1.00		1.19		1.58	103
	11.84	19.11			47,712	1.00		1.46		1.72	78

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

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

(h) For the six months ended March 31, 2010 (Unaudited).

(i) The amount shown for a share outstanding does not correspond with the aggregate realized and unrealized gain (loss) on investments for the period due to the timing of sales and redemptions of fund shares in relation to fluctuating market values of investments of the Fund.

(j) Includes fee/expense recovery of 0.01%.

42

FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment income (loss) (a)(b)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income		Distributions from net realized capital gains		Total distributions
GROWTH FUND
Class A
3/31/2010(g)	$	4.48	$	(0.01	)	$	0.66		$	0.65		$	—	$	—	$	—
9/30/2009		4.99		(0.01	)		(0.50	)		(0.51	)		—		—		—
9/30/2008		7.01		(0.02	)		(2.00	)		(2.02	)		—		—		—
9/30/2007		5.84		(0.03	)		1.20			1.17			—		—		—
9/30/2006		6.03		(0.00	)		(0.19	)		(0.19	)		—		—		—
9/30/2005		4.98		(0.02	)		1.07			1.05			—		—		—
Class B
3/31/2010(g)		4.28		(0.03	)		0.63			0.60			—		—		—
9/30/2009		4.81		(0.04	)		(0.49	)		(0.53	)		—		—		—
9/30/2008		6.79		(0.07	)		(1.91	)		(1.98	)		—		—		—
9/30/2007		5.70		(0.07	)		1.16			1.09			—		—		—
9/30/2006		5.94		(0.05	)		(0.19	)		(0.24	)		—		—		—
9/30/2005		4.94		(0.06	)		1.06			1.00			—		—		—
Class C
3/31/2010(g)		4.28		(0.03	)		0.64			0.61			—		—		—
9/30/2009		4.81		(0.04	)		(0.49	)		(0.53	)		—		—		—
9/30/2008		6.80		(0.07	)		(1.92	)		(1.99	)		—		—		—
9/30/2007		5.71		(0.08	)		1.17			1.09			—		—		—
9/30/2006		5.94		(0.04	)		(0.19	)		(0.23	)		—		—		—
9/30/2005		4.94		(0.06	)		1.06			1.00			—		—		—
Class Y
3/31/2010(g)		4.73		(0.00	)		0.69			0.69			—		—		—
9/30/2009		5.24		0.01			(0.52	)		(0.51	)		—		—		—
9/30/2008		7.32		0.01			(2.09	)		(2.08	)		—		—		—
9/30/2007		6.08		(0.00	)		1.24			1.24			—		—		—
9/30/2006		6.26		0.02			(0.20	)		(0.18	)		—		—		—
9/30/2005		5.15		(0.00	)		1.11			1.11			—		—		—

(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, if applicable.

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

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

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

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

See accompanying notes to financial statements.

43

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (c)(d)		Net assets, end of the period (000’s)		Net expenses (%) (e)(f)		Gross expenses (%) (e)		Net investment income (loss) (%) (e)		Portfolio turnover rate (%)
$	5.13	14.51		$	34,024	1.15	(h)	1.18	(h)	(0.44	)	59
	4.48	(10.40	)		33,207	1.25		1.31		(0.25	)	191
	4.99	(28.67	)		156,841	1.10		1.10		(0.33	)	179
	7.01	20.03			228,629	1.14	(i)	1.14	(i)	(0.49	)	134
	5.84	(3.15	)		225,729	1.10		1.17		(0.03	)	174
	6.03	21.08			51,248	1.10		1.60		(0.38	)	164
	4.88	14.02			5,003	1.90	(h)	1.92	(h)	(1.19	)	59
	4.28	(11.02	)		5,397	2.00		2.12		(1.06	)	191
	4.81	(29.16	)		9,553	1.85		1.85		(1.05	)	179
	6.79	19.12			28,258	1.85	(i)	1.85	(i)	(1.20	)	134
	5.70	(4.04	)		32,160	1.95		2.11		(0.85	)	174
	5.94	20.24			38,538	1.85		2.33		(1.14	)	164
	4.89	14.25			14,573	1.90	(h)	1.93	(h)	(1.20	)	59
	4.28	(11.02	)		16,336	2.00		2.12		(1.06	)	191
	4.81	(29.26	)		27,743	1.85		1.85		(1.08	)	179
	6.80	19.09			39,157	1.88		1.88		(1.23	)	134
	5.71	(3.87	)		43,415	1.85		1.95		(0.76	)	174
	5.94	20.24			25,734	1.85		2.35		(1.10	)	164
	5.42	14.59			58,271	0.89		0.92		(0.19	)	59
	4.73	(9.73	)		57,033	0.75		0.75		0.18		191
	5.24	(28.42	)		75,389	0.66		0.66		0.11		179
	7.32	20.39			124,663	0.67		0.67		(0.02	)	134
	6.08	(2.88	)		121,478	0.80	(j)	0.80	(j)	0.31		174
	6.26	21.55			95,534	0.85		0.97		(0.05	)	164

(g) For the six months ended March 31, 2010 (Unaudited).

(h) Includes fee/expense recovery of 0.01% for Class A, Class B and Class C shares, respectively.

(i) Includes fee/expense recovery of less than 0.01% and 0.08% for Class A and Class B shares, respectively.

(j) Includes fee/expense recovery of 0.07%.

44

FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment loss (a)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Total distributions
MID CAP GROWTH FUND
Class A*
3/31/2010(f)	$	18.29	$	(0.10	)	$	3.37		$	3.27		$	—		$	—
9/30/2009		21.12		(0.07	)(g)		(2.76	)		(2.83	)		—			—
9/30/2008		26.84		(0.15	)		(5.57	)		(5.72	)		—			—
9/30/2007		19.69		(0.16	)(h)		7.31			7.15			—			—
9/30/2006		18.63		(0.15	)		1.21			1.06			—			—
9/30/2005		15.20		(0.14	)		3.70			3.56			(0.13	)		(0.13	)
Class C
3/31/2010(f)		18.20		(0.17	)		3.35			3.18			—
9/30/2009**		15.13		(0.16	)		3.23			3.07			—			—
Class Y*
3/31/2010(f)		18.84		(0.08	)		3.48			3.40			—			—
9/30/2009		21.70		(0.05	)(g)		(2.81	)		(2.86	)		—			—
9/30/2008		27.51		(0.10	)		(5.71	)		(5.81	)		—			—
9/30/2007		20.13		(0.11	)(h)		7.49			7.38			—			—
9/30/2006		19.00		(0.10	)		1.23			1.13			—			—
9/30/2005		15.50		(0.10	)		3.78			3.68			(0.18	)		(0.18	)

* Prior to the close of business on February 2, 2009, the Fund offered Retail and Institutional Class shares, which were redesignated as Class A and Class Y shares, respectively on that date.

** From commencement of Class operations on February 2, 2009 through September 30, 2009.

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

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

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

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

See accompanying notes to financial statements.

45

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (b)(c)		Net assets, end of the period (000’s)		Net expenses (%) (d)(e)		Gross expenses (%) (e)		Net investment loss (%) (e)		Portfolio turnover rate (%)
$	21.56	17.88		$	46,370	1.25		1.45		(1.03	)	81
	18.29	(13.44	)		54,951	1.25		1.52		(0.45	)(g)	292
	21.12	(21.27	)		120,524	1.25		1.32		(0.58	)	299
	26.84	36.31			30,654	1.25		1.43		(0.71	)	194
	19.69	5.69			26,668	1.25		1.52		(0.72	)	211
	18.63	23.55			25,802	1.25		1.50		(0.85	)	280
	21.38	17.47			22	2.00		2.24		(1.72	)	81
	18.20	20.29			1	2.00		2.24		(1.54	)	292
	22.24	18.05			31,608	1.00		1.21		(0.77	)	81
	18.84	(13.18	)		27,057	1.00		1.12		(0.27	)(g)	292
	21.70	(21.12	)		25,779	1.00	(i)	1.00	(i)	(0.36	)	299
	27.51	36.66			24,143	1.00		1.10		(0.47	)	194
	20.13	5.95			17,467	1.00		1.12		(0.49	)	211
	19.00	23.85			26,159	1.00		1.21		(0.60	)	280

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

(f) For the six months ended March 31, 2010 (Unaudited).

(g) Includes a non-recurring dividend of $0.03 per share. Without this dividend, net investment loss per share would have been $(0.10) and $(0.08) for Class A and Class Y shares, respectively, and the ratio of net investment loss to average net assets would have been (0.63)% and (0.46)% for Class A and Class Y shares, respectively.

(h) Includes a non-recurring dividend of $0.02 per share.

(i) Includes fee/expense recovery of less than 0.01%

46

FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)(b)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions
VALUE FUND
Class A*
3/31/2010(g)	$	16.42	$	0.07	$	1.47		$	1.54		$	(0.14	)	$	—		$	(0.14	)
9/30/2009		17.93		0.23		(1.53	)		(1.30	)		(0.21	)		—			(0.21	)
9/30/2008		23.46		0.25		(4.45	)		(4.20	)		(0.18	)		(1.15	)		(1.33	)
9/30/2007		21.04		0.19		3.27			3.46			(0.13	)		(0.91	)		(1.04	)
9/30/2006**		19.69		0.02		1.33			1.35			—			—			—
Class B
3/31/2010(g)		16.40		0.01		1.47			1.48			—			—			—
9/30/2009		17.80		0.14		(1.51	)		(1.37	)		(0.03	)		—			(0.03	)
9/30/2008		23.46		0.10		(4.45	)		(4.35	)		(0.16	)		(1.15	)		(1.31	)
9/30/2007***		24.00		0.00		(0.54	)		(0.54	)		—			—			—
Class C
3/31/2010(g)		16.26		0.01		1.45			1.46			(0.04	)		—			(0.04	)
9/30/2009		17.79		0.12		(1.51	)		(1.39	)		(0.14	)		—			(0.14	)
9/30/2008		23.46		0.09		(4.43	)		(4.34	)		(0.18	)		(1.15	)		(1.33	)
9/30/2007***		24.00		0.01		(0.55	)		(0.54	)		—			—			—
Class Y*
3/31/2010(g)		16.47		0.09		1.47			1.56			(0.19	)		—			(0.19	)
9/30/2009		18.01		0.28		(1.54	)		(1.26	)		(0.28	)		—			(0.28	)
9/30/2008		23.54		0.32		(4.45	)		(4.13	)		(0.25	)		(1.15	)		(1.40	)
9/30/2007		21.05		0.27		3.27			3.54			(0.14	)		(0.91	)		(1.05	)
9/30/2006		18.72		0.22		3.17			3.39			(0.27	)		(0.79	)		(1.06	)
9/30/2005		15.95		0.20		2.83			3.03			(0.26	)		—			(0.26	)
Admin Class
3/31/2010****		16.72		0.01		1.08			1.09			—			—			—

* Prior to the close of business on June 1, 2007, the Fund offered Retail and Institutional Class shares, which were redesignated as Class A and Class Y shares, respectively, on that date.

** From commencement of Class operations on June 30, 2006, through September 30, 2006.

*** From commencement of Class operations on June 1, 2007, through September 30, 2007.

**** From commencement of Class operations on February 1, 2010, through March 31, 2010.

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

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

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

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

See accompanying notes to financial statements.

47

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (c)(d)		Net assets, end of the period (000’s)		Net expenses (%) (e)(f)		Gross expenses (%) (f)		Net investment income (%) (f)	Portfolio turnover rate (%)
$	17.82	9.42		$	135,133	0.93		0.93		0.87	28
	16.42	(6.97	)		120,915	1.06		1.06		1.67	47
	17.93	(19.01	)		112,274	1.05		1.05		1.24	36	(h)
	23.46	16.85			17,500	1.09	(i)	1.09	(i)	0.79	41
	21.04	6.86			466	1.10		8.65		0.42	36
	17.88	9.02			4,647	1.68		1.68		0.14	28
	16.40	(7.62	)		5,167	1.81		1.81		1.03	47
	17.80	(19.65	)		8,385	1.80	(j)	1.80	(j)	0.51	36	(h)
	23.46	(2.25	)		108	1.85		1.89		0.03	41
	17.68	8.98			10,974	1.68		1.68		0.12	28
	16.26	(7.60	)		10,011	1.81		1.81		0.89	47
	17.79	(19.62	)		6,483	1.80	(j)	1.80	(j)	0.46	36	(h)
	23.46	(2.25	)		1,390	1.85		1.94		0.10	41
	17.84	9.54			794,396	0.69		0.69		1.10	28
	16.47	(6.66	)		574,439	0.66		0.66		1.97	47
	18.01	(18.67	)		303,182	0.65		0.66		1.58	36	(h)
	23.54	17.25			182,002	0.72	(i)	0.72	(i)	1.19	41
	21.05	18.92			71,147	0.85		0.91		1.13	36
	18.72	19.19			37,255	0.85		0.92		1.13	34
	17.81	6.52			1	1.34		1.34		0.44	28

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

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

(g) For the six months ended March 31, 2010 (Unaudited).

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

(i) Includes fee/expense recovery of 0.02% and 0.01% for Class A and Class Y shares, respectively.

(j) Includes fee/expense recovery of less than 0.01% for Class B and Class C shares, respectively.

48

NOTES TO FINANCIAL STATEMENTS

March 31, 2010 (Unaudited)

1.  Organization.  Loomis Sayles Funds 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 Disciplined Equity Fund (the “Disciplined Equity Fund”)

Loomis Sayles Global Markets Fund (the “Global Markets Fund”)

Loomis Sayles Growth Fund (the “Growth Fund”)

Loomis Sayles Mid Cap Growth Fund (the “Mid Cap Growth Fund”)

Loomis Sayles Value Fund (the “Value Fund”)

Each Fund offers Class A, Class C and Class Y shares. Effective February 1, 2010, the Value Fund began offering Admin Class shares. Effective October 12, 2007, Class B shares are no longer offered. Existing Class B shareholders may continue to reinvest dividends into Class B shares and exchange their Class B shares for Class B shares of other Natixis Funds subject to existing exchange privileges as described in the Prospectus.

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

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

2.  Significant Accounting Policies.  The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions that have occurred through the date the financial statements were issued, and noted no items requiring recognition in the financial statements or additional disclosures in the Notes to Financial Statements.

a.  Valuation.  Equity securities, including shares of closed-end investment companies and exchange-traded funds, for which market quotations are readily available are valued at market value, as reported by pricing services recommended by the investment adviser and approved by the Board of Trustees. Such pricing services generally use the security’s last sale price on the exchange or market where the security is primarily traded or, if there is no reported sale during the day, the closing bid price. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking a NOCP, at the most recent bid quotation on the applicable NASDAQ Market. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Funds by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Funds may be valued on the basis of a price provided by a principal market maker. Forward foreign currency contracts are valued utilizing interpolated prices determined from information provided by an independent pricing service. Domestic exchange-traded single equity option contracts are valued at the mean of the National Best Bid and offer quotations. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser using consistently applied procedures under the general supervision of the Board of Trustees. Investments in other open-end investment companies are valued at their net asset value each day.

The Funds may hold securities traded in foreign markets. Foreign securities are valued at the market price in the foreign market. However, if events occurring after the close of the foreign market (but before the close of regular trading on the New York Stock Exchange) are believed to materially affect the value of those securities, such securities are fair valued pursuant to procedures approved by the Board of Trustees. When fair valuing securities, the Funds may, among other things, use modeling tools or other processes that may take into account factors such as securities market activity and/or significant events that occur after the close of the foreign market and before the Funds calculate their net asset values. As of March 31, 2010, approximately 19% of the market value of the Global Markets Fund’s investments was fair valued pursuant to procedures approved by the Board of Trustees.

49

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

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

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

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

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

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

d.  Forward Foreign Currency Contracts.  Each Fund may enter into forward foreign currency contracts. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell generally are used to hedge a Fund’s investments against currency fluctuation. Also, a contract to buy or sell can offset a previous contract. These contracts involve market risk in excess of the unrealized gain or loss reflected in the Funds’ Statements of Assets and Liabilities. The U.S. dollar value of the currencies a Fund has committed to buy or sell represents the aggregate exposure to each currency the Fund has acquired or hedged through currency contracts outstanding at period end. Gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Certain contracts may require the movement of cash or securities to or from the counterparty as collateral for the Funds’ or counterparty’s net obligations under the contracts.

e.  Option Contracts.  The Funds may enter into option contracts. When a Fund purchases an option, it pays a premium and the option is subsequently marked to market to reflect current value. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the cost or deducted from the proceeds on the underlying instrument to determine the realized gain or loss. The risk associated with purchasing options is limited to the premium paid.

When a Fund writes an option, an amount equal to the net premium received (the premium less commission) is recorded as a liability and is subsequently adjusted to the current value until the option expires or the Fund enters into a closing purchase transaction. When a written option expires on its stipulated expiration date or the Fund enters into a closing purchase transaction, the difference between the net premium received and any amount paid at expiration or on effecting a closing purchase transaction, including commission, is treated as a realized gain or, if the net premium received is less than the amount paid, as a realized loss. The Fund, as writer of a written option, bears the risk of an unfavorable change in the market value of the equity underlying the written option.

Exchange-traded options have standardized contracts and are settled through a clearing house with fulfillment guaranteed by the credit of the exchange. Therefore, counterparty credit risks to the Funds are limited. Over-the-counter options are subject to the risk that the counterparty is unable or unwilling to meet its obligations under the option. The Funds are not party to any over-the-counter options at March 31, 2010.

f.  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 March 31, 2010 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 six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

50

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

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

g.  Dividends and Distributions to Shareholders.  Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes for items such as net operating losses, distribution redesignations, paydown adjustments, foreign currency transactions, gains realized from passive foreign investment companies (“PFICs”), defaulted bonds and premium amortization accruals. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to deferred Trustees’ fees, forward contracts mark to market, securities lending collateral gain/loss adjustment, straddle loss deferrals, wash sales, premium amortization accruals and defaulted bond interest. 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 year ended September 30, 2009:

	2009 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains	Total
Disciplined Equity Fund	$	216,562	—	$	216,562
Global Markets Fund		4,997,799	—		4,997,799
Growth Fund		—	—		—
Mid Cap Growth Fund		—	—		—
Value Fund		6,186,770	—		6,186,770

Differences between these amounts and those reported in the Statements of Changes in Net Assets, if any, are primarily attributable to different book and tax treatment for short-term capital gains.

As of September 30, 2009, the capital loss carryforwards and post-October losses were as follows:

	Disciplined Equity Fund			Global Markets Fund			Growth Fund			Mid Cap Growth Fund			Value Fund
Capital loss carryforward:
Expires September 30, 2010	$	—		$	—		$	(9,606,459	)*	$	(65,130,772	)	$	—
Expires September 30, 2011		—			—			(6,192,314	)*		(21,142,388	)		—
Expires September 30, 2016		—			—			(75,866	)		—			—
Expires September 30, 2017		(2,229,424	)		(54,290,711	)		(57,062,095	)		(33,667,761	)		(26,840,015	)
Total capital loss carryforward	$	(2,229,424	)	$	(54,290,711	)	$	(72,936,734	)	$	(119,940,921	)	$	(26,840,015	)
Deferred net capital losses (post-October 2008)	$	(4,813,445	)	$	(56,215,833	)	$	(57,669,601	)	$	(32,805,392	)	$	(66,497,637	)

* A significant portion of the Loomis Sayles Growth Fund’s carryforward losses are a result of prior year mergers; therefore, utilization of these losses has been limited under section 382 of the Internal Revenue Code.

h.  Repurchase Agreements.  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.

i.  Securities Lending.  The Funds have entered into an agreement with State Street Bank and Trust Company (“State Street Bank”), as agent of the Funds, to lend securities to certain designated borrowers. The loans are collateralized with cash or securities in an amount equal to at least 105% or 102% of the market value (including accrued interest) of the loaned international or domestic securities, respectively, when the loan is initiated. Thereafter, the value of the collateral must remain at least 102% of the market value (including accrued interest) of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value (including accrued interest) of loaned

51

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

securities for non-U.S. equities; and at least 100% of the market value (including accrued interest) of loaned securities for U.S. Government securities, sovereign debt issued by non-U.S. Governments and non-U.S. corporate debt. In the event that the market value of the collateral falls below the required percentages described above, the borrower will deliver additional collateral on the next business day. As with other extensions of credit, the Funds bear the risk of loss with respect to the investment of the collateral. The Funds invest cash collateral in short-term investments, a portion of the income from which is remitted to the borrowers and the remainder allocated between the Funds and State Street Bank as lending agent.

As of March 31, 2010, there were no securities on loan.

j.  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.

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.);

• Level 3 — prices determined using significant unobservable inputs for situations where 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 following is a summary of the inputs used to value the Funds’ investments as of March 31, 2010, at value:

Disciplined Equity Fund

Asset Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	33,456,990	$	—	$	—	$	33,456,990
Short-Term Investments		—		1,481,511		—		1,481,511
Total	$	33,456,990	$	1,481,511	$	—	$	34,938,501

Liability Valuation Inputs

Description(a)	Level 1			Level 2		Level 3		Total
Call Options Written	$	(80,942	)	$	—	$	—	$	(80,942	)

(a) Major categories of the Fund’s investments and option contracts are included in the Portfolio of Investments.

52

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

Global Markets Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Common Stocks
Belgium	$	—	$	2,590,782	$	—	$	2,590,782
Brazil		16,965,820		—		—		16,965,820
Cayman Islands		7,998,550		—		—		7,998,550
Chile		2,646,936		—		—		2,646,936
China		—		4,853,874		—		4,853,874
France		2,123,619		—		—		2,123,619
Germany		—		3,467,719		—		3,467,719
Hong Kong		—		4,668,464		—		4,668,464
Japan		—		5,071,018		—		5,071,018
Korea		—		5,184,770		—		5,184,770
Netherlands Antilles		1,672,108		—		—		1,672,108
Russia		—		2,953,985		—		2,953,985
Switzerland		—		9,894,310		—		9,894,310
United Kingdom		1,614,416		15,062,947		—		16,677,363
United States		93,960,458		—		—		93,960,458
Total Common Stocks		126,981,907		53,747,869		—		180,729,776
Bonds and Notes
Non-Convertible Bonds
Korea		—		1,642,562		362,262		2,004,824
United States		—		57,709,763		326,675		58,036,438
All Other Non-Convertible Bonds(a)		—		29,256,435		—		29,256,435
Total Non-Convertible Bonds		—		88,608,760		688,937		89,297,697
Convertible Bonds(a)		—		3,341,921		—		3,341,921
Municipals(a)		—		98,310		—		98,310
Total Bonds and Notes		—		92,048,991		688,937		92,737,928
Bank Loans(a)		—		148,055		—		148,055
Preferred Stocks(a)		16,434		1,194,799		—		1,211,233
Warrants(a)		—		—		141,194		141,194
Short-Term Investments		—		3,794,207		—		3,794,207
Total Investments		126,998,341		150,933,921		830,131		278,762,393
Forward Foreign Currency Contracts (unrealized appreciation)(a)		—		9,350		—		9,350
Total	$	126,998,341	$	150,943,271	$	830,131	$	278,771,743

(a) Major categories of the Fund’s investments and forward foreign currency contracts are included in the Portfolio of Investments.

Growth Fund

Asset Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	110,918,93	$	—	$	—	$	110,918,593

(a) Major categories of the Fund’s investments are included in the Portfolio of Investments.

53

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

Mid Cap Growth Fund

Asset Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	76,297,344	$	—	$	—	$	76,297,344
Short-Term Investments		—		1,773,973		—		1,773,973
Total	$	76,297,344	$	1,773,973	$	—	$	78,071,317

(a) Major categories of the Fund’s investments are included in the Portfolio of Investments.

Value Fund

Asset Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	907,609,377	$	—	$	—	$	907,609,377
Short-Term Investments		—		32,720,374		—		32,720,374
Total	$	907,609,377	$	32,720,374	$	—	$	940,329,751

(a) Major categories of the Fund’s investments are included in the Portfolio of Investments.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair values as of March 31, 2010:

Global Markets Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Net Purchases (Sales)			Net Transfers into/(out of) Level 3			Balance as of March 31, 2010
Bonds and Notes
Non-Convertible Bonds
Korea	$	—	$	—	$	—		$	8,120	$	354,142		$	—		$	362,262
United States		859,552		4,131		(76	)		193,892		(12,231	)		(718,593	)		326,675
Convertible Bonds
United States		227,900		316		—			28,709		—			(256,925	)		—
Warrants
United States		—		—		—			141,194		—			—			141,194
Total	$	1,087,452	$	4,447	$	(76	)	$	371,915	$	341,911		$	(975,518	)	$	830,131

4.  Derivatives.  Derivative instruments are defined as financial instruments whose value and performance are based on the value and performance of another security or financial instrument. Derivative instruments that the Funds currently use are forward foreign currency contracts and option contracts.

The Funds are subject to the risk that changes in foreign currency exchange rates will have an unfavorable effect on the value of Fund assets denominated in foreign currencies. The Funds may enter into forward foreign currency contracts for hedging purposes to protect the value of the Funds’ holdings of foreign securities. The Funds may also use forward foreign currency contracts to gain exposure to foreign currencies, regardless of whether securities denominated in such currencies are held in the Funds. During the six months ended March 31, 2010, Global Markets Fund engaged in forward foreign currency transactions to gain exposure to foreign currencies.

Disciplined Equity Fund, Global Markets Fund and Mid Cap Growth Fund are parties to agreements with counterparties that govern transactions in forward foreign currency contracts. These agreements contain contingent features that allow the counterparties to terminate open contracts early if the net asset value of a Fund declines beyond a certain threshold. If such contingent features were to be triggered, the counterparties could request immediate settlement of open contracts at current fair value.

54

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

The Funds are subject to the risk of unpredictable declines in the value of individual equity securities and periods of below-average performance in individual securities or in the equity market as a whole. Certain Funds may use purchased put options and written call options to hedge against a decline in value of an equity security that it owns. Certain Funds may also write put options to offset the cost of options used for hedging purposes. During the six months ended March 31, 2010, Disciplined Equity Fund and Mid Cap Growth Fund engaged in written call option transactions. During this same period, Mid Cap Growth Fund also engaged in purchased and written put option transactions.

The following is a summary of derivative instruments for Disciplined Equity Fund as of March 31, 2010:

Liability Derivatives	Options Written
Equity contracts	$(80,942)

Statements of Assets and Liabilities Location Options written, at value

Transactions in derivative instruments during the six months ended March 31, 2010 were as follows:

Realized Gain (Loss)	Options Written
Equity contracts	$139,491

Statements of Operations Location Net realized gain (loss) on options written

Change in Unrealized Appreciation (Depreciation)	Options Written
Equity contracts	$2,824

Statements of Operations Location Net change in unrealized appreciation (depreciation) on options written

The following is a summary of derivative instruments for Global Markets Fund as of March 31, 2010:

Asset Derivatives	Forwards
Foreign exchange contracts	$9,350

Statements of Assets and Liabilities Location Unrealized appreciation on forward foreign currency contracts

Transactions in derivative instruments during the six months ended March 31, 2010 were as follows:

Realized Gain (Loss)	Forwards
Foreign exchange contracts	$72,268

Statements of Operations Location Included in Net realized gain (loss) on foreign currency transactions

Change in Unrealized Appreciation (Depreciation)	Forwards
Foreign exchange contracts	$(12,959)

Statements of Operations Location Included in Net change in unrealized appreciation (depreciation) on foreign currency translations

Transactions in derivative instruments for Mid Cap Growth Fund during the six months ended March 31, 2010 were as follows:

Realized Gain (Loss)	Purchased Options	Options Written
Equity contracts	$(215,385)	$(17,532)
Statements of Operations Location	Included in Net realized gain (loss) on investments	Net realized gain (loss) on options written

55

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

The following is a summary of Disciplined Equity Fund’s written option activity:

	Number of Contracts		Premiums
Outstanding at 9/30/2009	—		$	—
Options written	11,617			826,289
Options terminated in closing purchase transactions	(9,649	)		(701,072	)
Options exercised	(42	)		(2,058	)
Options expired	(867	)		(39,393	)
Outstanding at 3/31/2010	1,059		$	83,766

The following is a summary of Mid Cap Growth Fund’s purchased option activity:

	Number of Contracts		Premiums
Outstanding at 9/30/2009	—		$	—
Options purchased	840			349,785
Options terminated in closing sale transactions	(840	)		(349,785	)
Options expired	—			—
Outstanding at 3/31/2010	—		$	—

The following is a summary of Mid Cap Growth Fund’s written option activity:

	Number of Contracts		Premiums
Outstanding at 9/30/2009	—		$	—
Options written	1,042			125,130
Options terminated in closing purchase transactions	(1,042	)		(125,130	)
Options expired	—			—
Outstanding at 3/31/2010	—		$	—

Volume of derivative activity for Global Markets Fund, based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended March 31, 2010:

	Percentage of Net Assets Forwards
Average Notional Amount Outstanding	0.40%
Highest Notional Amount Outstanding	0.78%
Lowest Notional Amount Outstanding	0.25%
Notional Amount Outstanding as of March 31, 2010	0.78%

5.  Purchases and Sales of Securities.  For the six months ended March 31, 2010, purchases and sales of securities (excluding short-term investments and U.S. Government/agency securities and including paydowns) were as follows:

Fund	Purchases		Sales
Disciplined Equity Fund	$	41,994,159	$	40,520,596
Global Markets Fund		125,909,232		121,580,512
Growth Fund		64,269,398		79,518,872
Mid Cap Growth Fund		62,074,740		80,346,528
Value Fund		426,299,336		216,978,403

56

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

For the six months ended March 31, 2010, purchases and sales of U.S. Government/agency securities by the Global Markets Fund were $4,415,265 and $2,240,499, respectively.

6.  Management Fees and Other Transactions with Affiliates.

a.  Management Fees.  Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to each Fund. Separate management agreements for each Fund in effect for the six months ended March 31, 2010, provided for fees at the following annual percentage rates of each Fund’s average daily net assets:

Fund	Percentage of Average Daily Net Assets
Disciplined Equity Fund	0.50%
Global Markets Fund	0.75%
Growth Fund	0.50%
Mid Cap Growth Fund	0.75%
Value Fund	0.50%

Loomis Sayles has given binding undertakings to the Funds to reduce 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 and extraordinary expenses. These undertakings are in effect until January 31, 2011 and will be reevaluated on an annual basis. Management fee payables, as reflected on the Statement of Assets and Liabilities, are net of fee reductions and/or expense reimbursements, if any, pursuant to these undertakings.

For the period from February 1, 2010 to March 31, 2010, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:

	Expense Limit as a Percentage of  Average Daily Net Assets
Fund	Class A		Class B		Class C		Class Y		Admin Class
Disciplined Equity Fund	1.25	%	2.00	%	2.00	%	1.00	%	N/A
Global Markets Fund	1.25	%	N/A		2.00	%	1.00	%	N/A
Growth Fund	1.25	%	2.00	%	2.00	%	1.00	%	N/A
Mid Cap Growth Fund	1.25	%	N/A		2.00	%	1.00	%	N/A
Value Fund	1.10	%	1.85	%	1.85	%	0.85	%	1.35	%

Prior to February 1, 2010, the expense limits as a percentage of average daily net assets were as follows:

	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Class A		Class B		Class C		Class Y
Disciplined Equity Fund	1.25	%	2.00	%	2.00	%	0.85	%
Global Markets Fund	1.25	%	N/A		2.00	%	1.00	%
Growth Fund	1.25	%	2.00	%	2.00	%	0.85	%
Mid Cap Growth Fund	1.25	%	N/A		2.00	%	1.00	%
Value Fund	1.10	%	1.85	%	1.85	%	0.85	%

For the period from October 1, 2009 to January 31, 2010, Loomis Sayles voluntarily agreed to further limit the operating expenses for Classes A, B and C of the Disciplined Equity Fund and the Growth Fund as follows:

	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Class A	Class B	Class C
Disciplined Equity Fund	1.10%	1.85%	1.85%
Growth Fund	1.10%	1.85%	1.85%

57

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

Loomis Sayles shall be permitted to recover expenses it has borne under the expense limitation agreements (whether through reduction of its management fees or otherwise) on a class by class basis in later periods to the extent a class’ expenses fall below a class’ expense limits, provided, however, that a class is not obligated to pay such reduced fees/expenses more than one year after the end of the fiscal year in which the fees/expenses were reduced. Fees waived and/or expenses reimbursed pursuant to the voluntary agreement cannot be recovered by Loomis Sayles in later periods.

For the six months ended March 31, 2010, the management fees and reductions of management fees for each Fund were as follows:

	Gross Management Fees		Contractual Reductions of Management Fees1		Voluntary Reductions  of Management Fees		Net Management Fees		Percentage  of Average Daily Net Assets
Fund									Gross	Net
Disciplined Equity Fund	$	78,867	$	43,762	$	1,736	$	33,369	0.50%	0.21%
Global Markets Fund		982,567		37,043		—		945,524	0.75%	0.72%
Growth Fund		278,395		7,904		7,297		263,194	0.50%	0.47%
Mid Cap Growth Fund		299,194		82,683		—		216,511	0.75%	0.54%
Value Fund		2,029,139		—		—		2,029,139	0.50%	0.50%

¹ Management fee reductions are subject to possible recovery until September 30, 2011.

For the six months ended March 31, 2010, expense reimbursements related to the prior fiscal year were recovered as follows:

	Recovered Expenses
Fund	Class A		Class B		Class C		Class Y		Total
Growth Fund	$	944	$	145	$	428	$	—	$	1,517

Certain officers and employees of Loomis Sayles are also officers or Trustees of the Trust. Loomis Sayles’ general partner is indirectly owned by Natixis Global Asset Management, L.P. (“Natixis US”), which is part of Natixis Global Asset Management, an international asset management group based in Paris, France.

b.  Administrative Fees.  Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0500% of the next $15 billion, 0.0425% of the next $30 billion and 0.0375% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

For the six months ended March 31, 2010, each Fund paid the following for administrative fees to Natixis Advisors:

Fund	Administrative Fees
Disciplined Equity Fund	$	7,634
Global Markets Fund		63,405
Growth Fund		26,943
Mid Cap Growth Fund		19,303
Value Fund		196,437

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

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

58

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

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

Under the respective Class B (if applicable) and Class C Plans, each Fund pays Natixis Distributors a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Class B (if applicable) and Class C shares, as compensation for services provided by Natixis Distributors in providing personal services to investors in Class B (if applicable) and Class C shares and/or the maintenance of shareholder accounts.

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

Under the Admin Class Plan, the Value Fund pays Natixis Distributors a monthly distribution fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Admin Class shares, as compensation for services provided by Natixis Distributors in connection with the marketing or sale of Admin Class shares or for payments made by Natixis Distributors to securities dealers or other financial intermediaries as commissions, asset-based sales charges or other compensation with respect to the sale of Admin Class shares, or for providing personal services to investors and/or the maintenance of shareholder accounts.

In addition, the Admin Class shares of the Value Fund may pay Natixis Distributors an administrative service fee, at an annual rate not to exceed 0.25% of the average daily net assets attributable to Admin Class shares. These fees are subsequently paid to securities dealers or financial intermediaries for providing personal services and/or account maintenance for their customers who hold such shares.

For the six months ended March 31, 2010 the Fund paid the following service and distribution fees:

	Service Fees									Distribution Fees
	Class A		Class B		Class C		Admin Class			Class B		Class C		Admin Class
Disciplined Equity Fund	$	2,190	$	202	$	1,834	$	—		$	605	$	5,502	$	—
Global Markets Fund		61,140		—		125,879		—			—		377,635		—
Growth Fund		41,865		6,481		18,935		—			19,442		56,804		—
Mid Cap Growth Fund		63,086		—		18		—			—		53		—
Value Fund		159,497		6,047		12,937		—	(a)		18,140		38,812		—	(a)

(a) Amount is less than $1.

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

For the six months ended March 31, 2010, the Funds paid the following sub-transfer agent fees, which are reflected in transfer agent fees and expenses in the Statements of Operations.

Fund	Sub-Transfer Agent Fees
Disciplined Equity Fund	$	10,043
Global Markets Fund		98,519
Growth Fund		39,348
Mid Cap Growth Fund		59,101
Value Fund		288,877

59

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

e.  Commissions.  The Funds have been informed that commissions (including CDSCs) on Fund shares retained by Natixis Distributors during the six months ended March 31, 2010, were as follows:

Fund	Commissions
Disciplined Equity Fund	$	2,460
Global Markets Fund		117,446
Growth Fund		19,274
Mid Cap Growth Fund		1,846
Value Fund		24,328

f.  Trustees Fees and Expenses.  The Funds do not pay any compensation directly to its officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distributors, Natixis US, or their affiliates. Effective January 1, 2010, the Chairperson of the Board receives a retainer fee at the annual rate of $250,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $80,000. 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, each committee chairman receives an additional retainer fee at the annual rate of $15,000. Each Contract Review and Governance 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 $7,500 for each Committee meeting that he or she attends in person and $3,750 for each meeting that he or she attends telephonically. Each member of the ad hoc Committee on Alternative Investments received a one-time fee of $10,000. The ad hoc Committee on Alternative Investments is not a standing committee. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2010, the Chairperson of the Board received a retainer fee at the annual rate of $200,000. The Chairperson did not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attended. Each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $65,000. Each Independent Trustee also received a meeting attendance fee of $7,500 for each meeting of the Board of Trustees that he or she attended in person and $3,750 for each meeting of the Board of Trustees that he or she attended telephonically. In addition, each committee chairman received an additional retainer fee at an annual rate of $10,000. Each Contract Review and Governance Committee member was compensated $5,000 for each Committee meeting that he or she attended in person and $2,500 for each meeting that he or she attended telephonically. Each Audit Committee member was compensated $6,250 for each Committee meeting that he or she attended in person and $3,125 for each meeting that he or she attended telephonically.

A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Funds until distributed in accordance with the provisions of the Plan. 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 Hansberger International Series 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 Hansberger International Series, and are normally reflected as Trustees’ fees and expenses in the Statements of Operations. The portions of the accrued obligations allocated to the Funds under the Plan are reflected as Deferred Trustees’ fees on the Statements of Assets and Liabilities.

7.  Line of Credit.  Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participates in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. 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.

Prior to March 10, 2010, each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participated in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each Fund that participated in the line of credit. Interest was charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 0.75%. In addition, a commitment fee of 0.125% 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.

For the six months ended March 31, 2010, the Funds had no borrowings under these agreements.

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

60

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

At March 31, 2010, Global Markets Fund held Taiwan dollars, valued at $1,904,731, that were restricted as to withdrawal or usage. This amount represents the proceeds from sales of securities in Taiwan. These proceeds cannot be repatriated until the Fund engages a tax agent in Taiwan for the purpose of performing certain duties for compliance with Taiwan’s tax laws. Subsequent to March 31, 2010, a tax agent was engaged and proceeds were repatriated.

9.  Brokerage Commission Recapture.  Each Fund has entered into agreements with certain brokers whereby the brokers will rebate a portion of brokerage commissions. All amounts rebated by the brokers are returned to the Funds under such agreements and are included in realized gains on the Statements of Operations. For the six months ended March 31, 2010, amounts rebated under these agreements were as follows:

Fund	Rebates
Disciplined Equity Fund	$	8,960
Global Markets Fund		21,034
Growth Fund		21,807
Mid Cap Growth Fund		14,688
Value Fund		77,273

10.  Concentration of Ownership.  At March 31, 2010, Loomis Sayles Funded Pension Plan and Loomis Sayles Employees’ Profit Sharing Retirement Plan held shares of beneficial interest in the Funds as follows:

Fund	Pension Plan	Profit Sharing Retirement Plan
Disciplined Equity Fund	1,065,345	891,301
Global Markets Fund	981,661	549,554
Growth Fund	1,268,615	1,839,688
Mid Cap Growth Fund	302,417	351,205
Value Fund	487,579	732,046

From time to time, the Funds may have a concentration of several shareholders having a significant percentage of shares outstanding. Investment activities of these shareholders could have material impacts on the Funds. As of March 31, 2010, certain Funds had shareholders that held greater than 5% of the fund’s outstanding shares. Such ownership may be beneficially held by individuals or entities other than the owner of record. The number of greater than 5% shareholders and the aggregate percentage of net assets represented by such ownership was as follows:

Fund	Number of Greater Than 5% Shareholders	Percentage of Ownership
Disciplined Equity Fund	1	16.48	%
Global Markets Fund	1	9.37	%
Growth Fund	1	6.33	%
Mid Cap Growth Fund	1	7.46	%
Value Fund	1	6.09	%

61

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

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:

	Six Months Ended March 31, 2010					Year Ended September 30, 2009
Disciplined Equity Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	67,127		$	456,853		503,388		$	2,877,536
Issued in connection with the reinvestment of distributions	878			5,881		2,476			13,914
Redeemed	(34,872	)		(236,136	)	(366,248	)		(1,808,856	)
Net change	33,133		$	226,598		139,616		$	1,082,594
Class B
Issued from the sale of shares	306		$	2,000		12,584		$	70,815
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(5,097	)		(33,457	)	(19,550	)		(106,750	)
Net change	(4,791	)	$	(31,457	)	(6,966	)	$	(35,935	)
Class C
Issued from the sale of shares	23,906		$	157,512		392,349		$	2,090,452
Issued in connection with the reinvestment of distributions	—			—		300			1,642
Redeemed	(61,637	)		(402,360	)	(301,104	)		(1,542,203	)
Net change	(37,731	)	$	(244,848	)	91,545		$	549,891
Class Y
Issued from the sale of shares	574,854		$	4,009,444		1,188,390		$	6,823,853
Issued in connection with the reinvestment of distributions	25,762			173,639		34,089			192,942
Redeemed	(326,208	)		(2,252,491	)	(488,997	)		(2,719,886	)
Net change	274,408		$	1,930,592		733,482		$	4,296,909
Increase (decrease) from capital share transactions	265,019		$	1,880,885		957,677		$	5,893,459
	Six Months Ended March 31, 2010					Year Ended September 30, 2009
Global Markets Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	928,741		$	11,923,858		1,705,833		$	19,017,067
Issued in connection with the reinvestment of distributions	73,498			923,132		101,851			922,775
Redeemed	(592,920	)		(7,563,442	)	(4,038,918	)		(39,038,267	)
Net change	409,319		$	5,283,548		(2,231,234	)	$	(19,098,425	)
Class C
Issued from the sale of shares	1,179,251		$	15,057,338		1,738,010		$	17,537,139
Issued in connection with the reinvestment of distributions	53,353			667,977		53,943			487,650
Redeemed	(993,713	)		(12,711,100	)	(4,818,214	)		(46,175,227	)
Net change	238,891		$	3,014,215		(3,026,261	)	$	(28,150,438	)
Class Y
Issued from the sale of shares	1,806,248		$	23,360,952		2,798,814		$	29,261,743
Issued in connection with the reinvestment of distributions	145,986			1,836,503		162,878			1,477,305
Redeemed	(1,475,258	)		(18,867,308	)	(4,571,286	)		(44,364,544	)
Net change	476,976		$	6,330,147		(1,609,594	)	$	(13,625,496	)
Increase (decrease) from capital share transactions	1,125,186		$	14,627,910		(6,867,089	)	$	(60,874,359	)

62

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

11.  Capital Shares (continued).

	Six Months Ended March 31, 2010					Year Ended September 30, 2009
Growth Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	496,024		$	2,363,535		3,453,752		$	13,194,701
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(1,277,530	)		(6,064,444	)	(27,441,954	)		(101,923,299	)
Net change	(781,506	)	$	(3,700,909	)	(23,988,202	)	$	(88,728,598	)
Class B
Issued from the sale of shares	11,856		$	54,645		41,478		$	155,665
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(248,690	)		(1,127,365	)	(768,098	)		(2,804,977	)
Net change	(236,834	)	$	(1,072,720	)	(726,620	)	$	(2,649,312	)
Class C
Issued from the sale of shares	82,107		$	370,139		669,485		$	2,490,747
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(914,330	)		(4,087,264	)	(2,624,342	)		(9,647,623	)
Net change	(832,223	)	$	(3,717,125	)	(1,954,857	)	$	(7,156,876	)
Class Y
Issued from the sale of shares	603,811		$	3,113,495		2,676,025		$	11,399,448
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(1,920,451	)		(9,560,832	)	(4,993,469	)		(21,416,325	)
Net change	(1,316,640	)	$	(6,447,337	)	(2,317,444	)	$	(10,016,877	)
Increase (decrease) from capital share transactions	(3,167,203	)	$	(14,938,091	)	(28,987,123	)	$	(108,551,663	)
	Six Months Ended March 31, 2010					Year Ended September 30, 2009
Mid Cap Growth Fund	Shares			Amount		Shares			Amount
Class A**
Issued from the sale of shares	193,756		$	3,828,763		5,551,566		$	85,146,527
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(1,047,613	)		(20,813,275	)	(8,253,762	)		(130,696,008	)
Net change	(853,857	)	$	(16,984,512	)	(2,702,196	)	$	(45,549,481	)
Class C*
Issued from the sale of shares	1,186		$	23,000		66		$	1,000
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(236	)		(5,000	)	—			—
Net change	950		$	18,000		66		$	1,000
Class Y**
Issued from the sale of shares	163,195		$	3,340,264		2,017,424		$	31,974,020
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(177,963	)		(3,603,417	)	(1,769,294	)		(28,085,399	)
Net change	(14,768	)	$	(263,153	)	248,130		$	3,888,621
Increase (decrease) from capital share transactions	(867,675	)	$	(17,229,665	)	(2,454,000	)	$	(41,659,860	)

* From commencement of Class operations on February 2, 2009 through September 30, 2009.

** Prior to the close of business on February 2, 2009 the Fund offered Retail and Institutional Class shares, which were redesignated as Class A and Class Y shares, respectively on that date.

63

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

11.  Capital Shares (continued).

	Six Months Ended March 31, 2010					Year Ended September 30, 2009
Value Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	1,363,864		$	22,838,803		3,255,896		$	44,814,805
Issued in connection with the reinvestment of distributions	60,746			1,001,697		94,079			1,308,638
Redeemed	(1,205,126	)		(20,127,532	)	(2,248,215	)		(30,522,329	)
Net change	219,484		$	3,712,968		1,101,760		$	15,601,114
Class B
Issued from the sale of shares	14,537		$	244,520		22,368		$	308,302
Issued in connection with the reinvestment of distributions	—			—		888			12,403
Redeemed	(69,721	)		(1,180,148	)	(179,186	)		(2,417,234	)
Net change	(55,184	)	$	(935,628	)	(155,930	)	$	(2,096,529	)
Class C
Issued from the sale of shares	116,845		$	1,952,429		382,900		$	5,369,989
Issued in connection with the reinvestment of distributions	939			15,401		3,005			41,620
Redeemed	(112,910	)		(1,892,746	)	(134,455	)		(1,783,797	)
Net change	4,874		$	75,084		251,450		$	3,627,812
Class Y
Issued from the sale of shares	16,660,547		$	280,457,831		26,551,540		$	378,808,598
Issued in connection with the reinvestment of distributions	379,395			6,260,027		306,125			4,258,197
Redeemed	(7,393,091	)		(123,177,476	)	(8,813,838	)		(119,971,291	)
Net change	9,646,851		$	163,540,382		18,043,827		$	263,095,504
Admin Class*
Issued from the sale of shares	60		$	1,002		—		$	—
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	—			—		—			—
Net change	60		$	1,002		—			—
Increase (decrease) from capital share transactions	9,816,085		$	166,393,808		19,241,107		$	280,227,901

* From commencement of Class operations on February 1, 2010 through March 31, 2010.

64

Loomis Sayles Small Cap Growth Fund

Loomis Sayles Small Cap Value Fund

TABLE OF CONTENTS
Fund and Manager Review	1
Portfolio of Investments	7
Statements of Assets and Liabilities	19
Statements of Operations	20
Statements of Changes in Net Assets	21
Financial Highlights	23
Notes to Financial Statements	25

SEMI-ANNUAL REPORT

MARCH 31, 2010 (Unaudited)

FUND AND MANAGER REVIEW

Loomis Sayles Small Cap Growth Fund

Mark F. Burns, CFA

Manager since January 2005

John Slavik, CFA

Manager since April 2005

PORTFOLIO REVIEW

After finishing 2009 on a strong note, the stock market started off slowly in 2010, with investors digesting the extraordinary gains of the previous year while wondering whether signs of improved economic activity were sustainable. March data revealed a brighter employment picture, increased manufacturing activity and greater stability in housing—and the market responded accordingly. Strong fourth-quarter returns, combined with solid gains in March, led to solid six-month returns for all segments of the stock market.

For the six months ended March 31, 2010, Institutional Class shares of Loomis Sayles Small Cap Growth Fund returned 15.37%. The fund outperformed its benchmark, the Russell 2000 Growth Index, which returned 12.07% for the period.

WHAT WAS THE PRIMARY REASON FOR THE FUND’S OUTPERFORMANCE?

The fund’s outperformance was due primarily to a shift in investor focus to the type of companies we favor, particularly during the fourth quarter of 2009: companies with strong competitive positions that can sustain growth well into the future. Additionally, the fund’s performance benefited from strong stock selection across a diverse group of sectors, including healthcare, consumer discretionary, producer durables and energy.

WHICH FACTORS POSITIVELY CONTRIBUTED TO THE FUND’S PERFORMANCE?

Our healthcare holdings were the greatest contributors to performance. Leading stocks included Incyte, a biotechnology company, which signed large partnerships for two of its drugs, and SXC Health Solutions, a pharmacy benefit management services and healthcare IT company, which reported strong fourth-quarter results. Our position in IMAX, the leader in 3-D movies, led performance in the consumer discretionary sector, while Bucyrus International, an industrial, construction and mining company, reported better-than-expected earnings and drove results in producer durables.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

Stock selection in the technology, materials and utilities sectors had a negative impact on the fund’s relative performance. Brocade, a provider of switching solutions for storage area networks, was among the largest detractors, after missing earnings estimates and issuing lower-than-expected guidance. We reduced the fund’s technology weight, primarily due to weak prospects for growth among specific communication equipment and software companies. Nevertheless, technology remains the fund’s largest sector weight.

WHAT IS YOUR OUTLOOK?

We believe the stock market has the potential to produce positive returns over the next 12 months, although overall gains may be modest and interrupted by periodic reversals. Corporate cost-cutting programs have been responsible for most of the earnings growth that has occurred up until now. We believe the economy has stabilized, setting the stage for revenue improvements that can drive future profit growth. However, improved earnings also can trigger talk of higher interest rates, which, in turn, could restrain overall market performance.

FUND FACTS

Symbol | Institutional: LSSIX;

Retail: LCGRX

Objective | Long-term capital growth from investments in common stocks or other equity securities

Strategy | Invests at least 80% of its net assets (plus any borrowings made for investment purposes) in equity securities of companies with market capitalizations that fall within the capitalization range of the Russell 2000 Index or is $3 billion or less at the time of investment. Unlike the Index, the Fund may invest in companies of any size.

Fund Inception Date | 12/31/96

Total Net Assets | $124.7 million

1

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended March 31, 2010

6 Months		1 Year		5 Years		10 Years		Since Inception
Loomis Sayles Small Cap Growth: Institutional
15.37	%	52.69	%	6.35	%	-7.16	%	3.11	%
Loomis Sayles Small Cap Growth: Retail
15.34		52.48		6.09		-7.39		2.86
Russell 2000 Growth Index(c)
12.07		60.32		3.82		-1.53		3.28
Russell 2000 Index(c)
13.07		62.76		3.36		3.68		6.22
Lipper Small-Cap Growth Funds Index(c)
12.68		57.45		2.71		-1.59		4.61

Gross expense ratio (before reductions and reimbursements)*
Institutional: 1.01%	Retail: 1.43%
Net expense ratio (after reductions and reimbursements)*
Institutional: 1.00%	Retail: 1.25%

* As stated in the most recent prospectus. Expense reductions are contractual and are set to expire on 1/31/11.

CUMULATIVE PERFORMANCE

Inception to March 31, 2010^(a)(b)

Data quoted reflects past performance and cannot guarantee future results. Average annual total returns assume reinvestment of dividends and capital gains distributions. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. For performance current to the most recent month end, please visit www.loomissayles.com. Current performance may be higher or lower than quoted.

Returns do not reflect the taxes that a shareholder would pay on fund distributions or the redemption of shares. Periods of less than one year are not annualized. Performance data reflects certain fee reductions and reimbursements, if any, without which performance would be lower.

(a) Cumulative performance is shown for the institutional class of shares. Performance of the retail class would be lower due to higher fees. (b) The mountain chart is based on the initial investment minimum of $100,000 for the institutional class. (c) See page 5 for a description of the indices.

WHAT YOU SHOULD KNOW

Small- and mid-cap stocks may be more volatile than larger, more established companies. The secondary market for these stocks may be less liquid, which could adversely impact the fund’s value. Growth funds involve increased risks, in part, because the value of the underlying securities is based on future expectations that may or may not be met.

The fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The fund is subject to currency risk, which is the risk that fluctuations in exchange rates between the U.S. dollar and foreign currencies may cause the value of a fund’s investments to decline. Fund shares should be viewed as a long-term investment.

2

FUND AND MANAGER REVIEW

Loomis Sayles Small Cap Value Fund

Joseph Gatz, CFA

Manager since January 2000

Daniel Thelen, CFA

Manager since April 2000

PORTFOLIO REVIEW

After finishing 2009 on a strong note, the stock market started off slowly in 2010, as investors digested the extraordinary gains of the previous year while wondering whether improved economic activity was sustainable. March data revealed a brighter employment picture, increased manufacturing activity and greater stability in housing—and the market responded accordingly. Strong fourth-quarter returns, combined with solid gains in March, led to solid six-month returns for all segments of the stock market.

For the six months ended March 31, 2010, Institutional Class shares of Loomis Sayles Small Cap Value Fund returned 9.74%. The fund underperformed its benchmark, the Russell 2000 Value Index, which returned 14.01% for the period.

WHAT WAS THE PRIMARY REASON FOR THE FUND’S UNDERPERFORMANCE?

The fund underperformed its benchmark because of its focus on higher-quality stocks, which underperformed lower-quality stocks during the first quarter of 2010. In general, the small-cap market was led by low-priced stocks, the smallest market caps and low-quality companies.

WHICH FACTORS POSITIVELY CONTRIBUTED TO THE FUND’S PERFORMANCE?

In 2009, we made several additions to the portfolio early in the market recovery, emphasizing smaller-cap and more cyclical stocks poised for a recovery. These changes helped limit the negative impact of the low-quality rally in 2009. However, we backed off the strategy late last year and early in 2010, as better fundamentals emerged. Hence, we were surprised that low-quality stocks, a segment of the market that typically does not match up well with our strategy, continued to lead the market in 2010. Stock selection in the healthcare sector contributed positively. Perrigo, a store-brand over-the-counter pharmaceutical provider, was one of the fund’s top performers.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

Stock selection was negative during the period, with the financial services, materials and processing and technology sectors detracting the most. In particular, our holdings among high-quality banks and non-credit-sensitive transaction processors did not keep pace with the index return of the financial services sector overall.

WHAT IS YOUR OUTLOOK?

We believe the stock market has the potential to produce positive returns over the next 12 months, although overall gains may be modest and interrupted by periodic reversals. Corporate cost-cutting programs have been responsible for most of the earnings growth that has occurred up until now. We believe the economy has stabilized, setting the stage for revenue improvements that can drive future profit growth. However, improved earnings also can trigger talk of higher interest rates, which, in turn, could restrain overall market performance.

FUND FACTS

Symbol | Institutional: LSSCX;

Retail: LSCRX; Admin: LSVAX

Objective | Long-term capital growth from investments in common stocks or other equity securities

Strategy | Invests at least 80% of its net assets (plus any borrowings made for investment purposes) in equity securities of companies with market capitalizations that fall within the capitalization range of the Russell 2000 Index or is $3 billion or less at the time of investment. Unlike the Index, the Fund may invest in companies of any size.

Fund Inception Date | 5/13/91

Class Inception Date | Institutional: 5/13/91

Retail: 12/31/96

Admin: 1/2/98

Total Net Assets | $986.1 million

3

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended March 31, 2010

6 Months		1 Year		5 Years		10 Years		Since Fund Inception(a)(b)
Loomis Sayles Small Cap Value: Institutional
9.74	%	53.29	%	4.38	%	8.24	%	12.17	%
Loomis Sayles Small Cap Value: Retail(a)
9.53		52.84		4.11		7.97		11.97
Loomis Sayles Small Cap Value: Admin(a)
9.45		52.42		3.84		7.70		11.62
Russell 2000 Value Index(c)
14.01		65.07		2.75		8.90		11.43
Russell 2000 Index(c)
13.07		62.76		3.36		3.68		9.09
Lipper Small-Cap Core Funds Index(b)(c)
12.46		63.48		3.71		4.98		N/A

Gross expense ratio (before reductions and reimbursements)*
Institutional: 0.94%	Retail: 1.31%	Admin: 1.77%
Net expense ratio (after reductions and reimbursements)*
Institutional: 0.90%	Retail: 1.15%	Admin: 1.40%

* As stated in the most recent prospectus. Expense reductions are contractual and are set to expire on 1/31/11.

CUMULATIVE PERFORMANCE

Inception to March 31, 2010^(d)(e)

Data quoted reflects past performance and cannot guarantee future results. Average annual total returns assume reinvestment of dividends and capital gains distributions. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. For performance current to the most recent month end, please visit www.loomissayles.com. Current performance may be higher or lower than quoted.

Returns do not reflect the taxes that a shareholder would pay on fund distributions or the redemption of shares. Periods of less than one year are not annualized. Performance data reflects certain fee reductions and reimbursements, if any, without which performance would be lower.

(a) Prior to the inception of retail class shares (12/31/96) and admin class shares (1/2/98), performance is that of institutional class shares, restated to reflect the higher net expenses of the retail class shares and admin class shares, respectively. Since index performance data is not available coincident with the fund’s inception date, the beginning value of the index is the value as of the month end closest to the Fund’s inception date. (b) The Lipper Small-Cap Core Funds Index performance data is not available prior to January 1, 1992. (c) See page 5 for a description of the Indices. (d) Cumulative performance is shown for the institutional class of shares. Performance of the retail and admin classes would be lower due to higher fees and expenses. (e) The mountain chart is based on the initial investment minimum of $100,000 for the institutional class.

WHAT YOU SHOULD KNOW

Value stocks may fall out of favor with investors and underperform the overall equity market during any given period. Small- and mid-cap stocks may be more volatile than larger, more established companies. The secondary market for these stocks may be less liquid, which could adversely impact the Fund’s value.

The fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The fund is subject to currency risk, which is the risk that fluctuations in exchange rates between the U.S. dollar and foreign currencies may cause the value of a fund’s investments to decline. Fund shares should be viewed as a long-term investment.

4

ADDITIONAL INFORMATION

Index Definitions

Indices are unmanaged and do not have expenses that affect results, unlike mutual funds. Index returns are adjusted for the reinvestment of capital gain distributions and income dividends. It is not possible to invest directly in an index.

Lipper Small-Cap Core Funds Index is an unmanaged index which tracks the average performance of the 30 largest small-cap core funds according to Lipper Inc.

Lipper Small-Cap Growth Funds Index is an unmanaged index which tracks the average performance of the 30 largest small-cap growth funds according to Lipper Inc.

Source: Lipper, Inc.

Russell 2000 Index is an unmanaged index that measures the performance of the small-cap segment of the U.S. equity universe.

Russell 2000 Growth Index is an unmanaged index that measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2000 Value Index is an unmanaged index that measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

Proxy Voting Information

A description of the funds’ proxy voting policies and procedures is available without charge, upon request, (i) by calling Loomis Sayles at 800-633-3330; (ii) on the funds’ website, www.loomissayles.com, and (iii) on the SEC’s website, www.sec.gov. Information about how the Funds voted proxies relating to portfolio securities during the 12 months ended June 30, 2009 is available on (i) the funds’ website and (ii) the SEC’s website.

Quarterly Portfolio Schedules

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

UNDERSTANDING YOUR FUND’S EXPENSES

As a mutual fund shareholder you incur two types of costs: (1) transaction costs, including redemption fees and certain exchange fees; and (2) ongoing costs, including management fees, distribution and/or service fees (12b-1 fees), and other fund expenses. These costs are described in more detail in the funds’ prospectus. The examples below are intended to help you understand the ongoing costs of investing in the Funds and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table of each fund shows the actual amount of fund expenses you would have paid on a $1,000 investment in the fund from October 1, 2009 through March 31, 2010. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual fund returns and expenses. 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 = 8.6) and multiply the result by the number in the Expenses Paid During the Period column as shown below for your class.

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

5

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

Loomis Sayles Small Cap Growth Fund

Institutional Class	Beginning Account Value 10/1/2009	Ending Account Value 3/31/2010	Expenses Paid During Period* 10/1/2009 – 3/31/2010
Actual	$1,000.00	$1,153.70	$5.37
Hypothetical (5% return before expenses)	$1,000.00	$1,019.95	$5.04
Retail Class
Actual	$1,000.00	$1,153.40	$6.71
Hypothetical (5% return before expenses)	$1,000.00	$1,018.70	$6.29
*   Expenses are equal to the Fund's annualized expense ratio (after fee reduction/reimbursement): 1.00%, and 1.25% for Institutional and Retail Class, respectively, multiplied by the average account value over the period multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

Loomis Sayles Small Cap Value Fund

Institutional Class	Beginning Account Value 10/1/2009	Ending Account Value 3/31/2010	Expenses Paid During Period* 10/1/2009 – 3/31/2010
Actual	$1,000.00	$1,097.40	$4.71
Hypothetical (5% return before expenses)	$1,000.00	$1,020.44	$4.53
Retail Class
Actual	$1,000.00	$1,095.30	$6.01
Hypothetical (5% return before expenses)	$1,000.00	$1,019.20	$5.79
Admin Class
Actual	$1,000.00	$1,094.50	$7.31
Hypothetical (5% return before expenses)	$1,000.00	$1,017.95	$7.04
*   Expenses are equal to the Fund's annualized expense ratio (after fee reduction/reimbursement): 0.90%, 1.15% and 1.40%, for Institutional, Retail and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

6

PORTFOLIO OF INVESTMENTS – as of March 31, 2010 (Unaudited)

Loomis Sayles Small Cap Growth Fund

	Shares	Value (†)
COMMON STOCKS – 98.4% of Net Assets
Aerospace & Defense – 1.1%
Hexcel Corp.(b)	98,695	$	1,425,156
Air Freight & Logistics – 1.3%
Atlas Air Worldwide Holdings, Inc.(b)	30,970		1,642,958
Auto Components – 0.8%
Amerigon, Inc.(b)	103,402		1,045,394
Biotechnology – 4.8%
Alexion Pharmaceuticals, Inc.(b)	20,875		1,134,974
Alkermes, Inc.(b)	63,045		817,693
Cepheid, Inc.(b)	74,574		1,303,553
Clinical Data, Inc.(b)	44,662		866,443
Incyte Corp. Ltd.(b)	63,105		880,946
Regeneron Pharmaceuticals, Inc.(b)	35,363		936,766
			5,940,375
Building Products – 1.0%
Trex Company, Inc.(b)	60,972		1,298,094
Capital Markets – 3.5%
Evercore Partners, Inc., Class A	37,942		1,138,260
Greenhill & Co., Inc.	14,012		1,150,245
Harris & Harris Group, Inc.(b)	146,816		676,822
Stifel Financial Corp.(b)	27,137		1,458,614
			4,423,941
Commercial Banks – 1.1%
Signature Bank(b)	36,482		1,351,658
Commercial Services & Supplies – 1.9%
EnerNOC, Inc.(b)	35,814		1,062,960
Waste Connections, Inc.(b)	38,719		1,314,897
			2,377,857
Communications Equipment – 3.9%
Brocade Communications Systems, Inc.(b)	129,107		737,201
Ciena Corp.(b)	71,586		1,090,971
DG FastChannel, Inc.(b)	36,824		1,176,527
F5 Networks, Inc.(b)	20,451		1,257,941
Meru Networks, Inc.(b)	32,443		621,932
			4,884,572
Computers & Peripherals – 1.0%
Netezza Corp.(b)	96,525		1,234,555
Construction & Engineering – 1.6%
MasTec, Inc.(b)	82,678		1,042,570
Orion Marine Group, Inc.(b)	50,944		919,539
			1,962,109
Diversified Consumer Services – 1.9%
Grand Canyon Education, Inc.(b)	49,279		1,288,153
Lincoln Educational Services Corp.(b)	44,355		1,122,182
			2,410,335
Diversified Financial Services – 1.2%
MSCI, Inc.(b)	41,107		1,483,963

See accompanying notes to financial statements.

7

	Shares	Value (†)
COMMON STOCKS – continued
Electrical Equipment – 0.7%
Polypore International, Inc.(b)	48,328	$	843,807
Electronic Equipment Instruments & Components – 1.0%
IPG Photonics Corp.(b)	79,935		1,183,038
Energy Equipment & Services – 2.1%
Oceaneering International, Inc.(b)	21,284		1,351,321
Tesco Corp.(b)	109,132		1,273,571
			2,624,892
Food Products – 0.8%
Diamond Foods, Inc.	22,716		954,981
Health Care Equipment & Supplies – 8.6%
AGA Medical Holdings, Inc.(b)	77,807		1,264,364
Align Technology, Inc.(b)	67,002		1,295,819
DexCom, Inc.(b)	95,692		931,083
Electro-Optical Sciences, Inc.(b)	89,923		667,229
ev3, Inc.(b)	108,641		1,723,046
Insulet Corp.(b)	81,805		1,234,437
Masimo Corp.	40,848		1,084,514
ResMed, Inc.(b)	20,192		1,285,221
Volcano Corp.(b)	52,499		1,268,376
			10,754,089
Health Care Providers & Services – 3.8%
Bio-Reference Labs, Inc.(b)	28,706		1,262,203
Catalyst Health Solutions, Inc.(b)	30,466		1,260,683
Hanger Orthopedic Group, Inc.(b)	52,472		953,941
IPC The Hospitalist Co.(b)	35,350		1,241,138
			4,717,965
Health Care Technology – 3.0%
athenahealth, Inc.(b)	20,167		737,306
MedAssets, Inc.(b)	70,781		1,486,401
SXC Health Solutions Corp.(b)	22,366		1,504,784
			3,728,491
Hotels, Restaurants & Leisure – 3.2%
Bally Technologies, Inc.(b)	25,049		1,015,487
Buffalo Wild Wings, Inc.(b)	25,185		1,211,650
Life Time Fitness, Inc.(b)	21,218		596,226
Panera Bread Co., Class A(b)	15,062		1,152,092
			3,975,455
Household Durables – 1.2%
Tempur-Pedic International, Inc.(b)	50,944		1,536,471
Internet Software & Services – 6.3%
Constant Contact, Inc.(b)	43,221		1,003,592
DealerTrack Holdings, Inc.(b)	64,341		1,098,944
GSI Commerce, Inc.(b)	80,864		2,237,507
MercadoLibre, Inc.(b)	24,419		1,177,240
Monster Worldwide, Inc.(b)	73,769		1,225,303
WebMD Health Corp.(b)	24,175		1,121,236
			7,863,822

See accompanying notes to financial statements.

8

PORTFOLIO OF INVESTMENTS – as of March 31, 2010 (Unaudited)

Loomis Sayles Small Cap Growth Fund – continued

	Shares	Value (†)
COMMON STOCKS – continued
IT Services – 1.0%
CyberSource Corp.(b)	67,248	$	1,186,255
Machinery – 1.6%
Bucyrus International, Inc.	19,497		1,286,607
Energy Recovery, Inc.(b)	118,792		748,390
			2,034,997
Media – 1.0%
Imax Corp.(b)	70,645		1,270,904
Oil, Gas & Consumable Fuels – 3.9%
Brigham Exploration Co.(b)	66,566		1,061,728
Comstock Resources, Inc.(b)	35,998		1,144,736
Concho Resources, Inc.(b)	30,588		1,540,412
Rosetta Resources, Inc.(b)	46,797		1,102,069
			4,848,945
Pharmaceuticals – 2.5%
Eurand NV(b)	60,767		685,451
Inspire Pharmaceuticals, Inc.(b)	126,979		792,349
Nektar Therapeutics(b)	62,704		953,728
Somaxon Pharmaceuticals, Inc.(b)	72,623		628,189
			3,059,717
Professional Services – 2.8%
ICF International, Inc.(b)	45,951		1,141,423
IHS, Inc., Class A(b)	25,377		1,356,908
On Assignment, Inc.(b)	146,065		1,041,443
			3,539,774
Semiconductors & Semiconductor Equipment – 8.6%
Advanced Energy Industries, Inc.(b)	63,782		1,056,230
Cavium Network, Inc.(b)	38,857		965,985
Cymer, Inc.(b)	30,111		1,123,140
EZchip Semiconductor Ltd.(b)	33,071		651,168
Hittite Microwave Corp.(b)	27,778		1,221,399
Lam Research Corp.(b)	25,936		967,932
Netlogic Microsystems, Inc.(b)	37,519		1,104,184
Power Integrations, Inc.	22,697		935,116
Silicon Laboratories, Inc.(b)	28,733		1,369,702
Varian Semiconductor Equipment Associates, Inc.(b)	40,262		1,333,477
			10,728,333
Software – 10.1%
ArcSight, Inc.(b)	47,574		1,339,208
Ariba, Inc.(b)	113,825		1,462,651
Blackboard, Inc.(b)	35,419		1,475,556
Concur Technologies, Inc.(b)	32,457		1,331,062
Informatica Corp.(b)	66,675		1,790,891
Sourcefire, Inc.(b)	48,311		1,108,737
SuccessFactors, Inc.(b)	48,311		919,841
Tyler Technologies, Inc.(b)	33,004		618,495
Ultimate Software Group, Inc.(The)(b)	41,216		1,358,067
VanceInfo Technologies, Inc., ADR(b)	54,314		1,210,659
			12,615,167

See accompanying notes to financial statements.

9

	Shares		Value (†)
COMMON STOCKS – continued
Specialty Retail – 6.7%
DSW, Inc., Class A(b)		46,742	$	1,193,323
hhgregg, Inc.(b)		47,807		1,206,649
Hibbett Sports, Inc.(b)		45,651		1,167,753
Lumber Liquidators Holdings, Inc.(b)		42,881		1,143,636
Monro Muffler Brake, Inc.		35,978		1,286,573
Rue21, Inc.(b)		26,864		931,375
Ulta Salon, Cosmetics & Fragrance, Inc.(b)		61,026		1,380,408
				8,309,717
Textiles, Apparel & Luxury Goods – 3.4%
Lululemon Athletica, Inc.(b)		30,162		1,251,723
Phillips-Van Heusen Corp.		28,961		1,661,203
Volcom, Inc.(b)		65,310		1,274,851
				4,187,777
Transportation Infrastructure – 1.0%
Aegean Marine Petroleum Network, Inc.		44,019		1,249,259
TOTAL COMMON STOCKS
(Identified Cost $91,389,144)				122,694,823
	Principal Amount
SHORT-TERM INVESTMENTS – 2.9%
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/10 at 0.000% to be repurchased at $3,674,633 on 4/01/10 collateralized by $3,745,000 Federal Home Loan Mortgage Corp., 2.000% due 3/29/13 valued at $3,749,681 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $3,674,633)	$	3,674,633		3,674,633
TOTAL INVESTMENTS – 101.3%
(Identified Cost $95,063,777)(a)				126,369,456
Other assets less liabilities—(1.3)%				(1,645,854	)
NET ASSETS – 100.0%			$	124,723,602
(†)    See Note 2 of Notes to Financial Statements.
(a)    Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.):
At March 31, 2010, the net unrealized appreciation on investments based on a cost of $95,063,349 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	32,331,929
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(1,025,822	)
Net unrealized appreciation			$	31,306,107

(b) Non-income producing security.

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

See accompanying notes to financial statements.

10

PORTFOLIO OF INVESTMENTS – as of March 31, 2010 (Unaudited)

Loomis Sayles Small Cap Growth Fund – continued

INDUSTRY SUMMARY AT MARCH 31, 2010 (Unaudited)

Software	10.1	%
Health Care Equipment & Supplies	8.6
Semiconductors & Semiconductor Equipment	8.6
Specialty Retail	6.7
Internet Software & Services	6.3
Biotechnology	4.8
Communications Equipment	3.9
Oil, Gas & Consumable Fuels	3.9
Health Care Providers & Services	3.8
Capital Markets	3.5
Textiles, Apparel & Luxury Goods	3.4
Hotels, Restaurants & Leisure	3.2
Health Care Technology	3.0
Professional Services	2.8
Pharmaceuticals	2.5
Energy Equipment & Services	2.1
Other Investments, less than 2% each	21.2
Short-Term Investments	2.9
Total Investments	101.3
Other assets less liabilities	(1.3	)
Net Assets	100.0	%

See accompanying notes to financial statements.

11

PORTFOLIO OF INVESTMENTS – as of March 31, 2010 (Unaudited)

Loomis Sayles Small Cap Value Fund

	Shares	Value (†)
COMMON STOCKS – 97.8% of Net Assets
Air Freight & Logistics – 1.2%
Atlas Air Worldwide Holdings, Inc.(b)	215,956	$	11,456,466
Auto Components – 1.3%
Goodyear Tire & Rubber Co. (The)(b)	445,746		5,634,229
Tenneco, Inc.(b)	284,295		6,723,577
			12,357,806
Building Products – 1.2%
Armstrong World Industries, Inc.(b)	197,748		7,180,230
Griffon Corp.(b)	348,440		4,341,562
			11,521,792
Capital Markets – 3.5%
Ares Capital Corp.	555,653		8,245,891
Fifth Street Finance Corp.	647,491		7,517,371
JMP Group, Inc.	161,713		1,374,560
Legg Mason, Inc.	85,230		2,443,544
Stifel Financial Corp.(b)	186,950		10,048,562
SWS Group, Inc.	432,968		4,992,121
			34,622,049
Chemicals – 3.6%
Calgon Carbon Corp.(b)	270,934		4,638,390
Ferro Corp.(b)	613,965		5,396,752
Koppers Holdings, Inc.	200,009		5,664,255
Minerals Technologies, Inc.	80,553		4,175,868
Olin Corp.	244,931		4,805,546
RPM International, Inc.	295,732		6,310,921
WR Grace & Co.(b)	154,875		4,299,330
			35,291,062
Commercial Banks – 6.7%
Cathay General Bancorp	308,253		3,591,147
First Financial Bancorp	482,716		8,587,518
First Horizon National Corp.(b)	536,247		7,534,270
First Midwest Bancorp, Inc.	355,187		4,812,784
Hancock Holding Co.	166,074		6,943,554
IBERIABANK Corp.	188,834		11,331,928
Prosperity Bancshares, Inc.	228,423		9,365,343
Signature Bank(b)	228,219		8,455,514
Sterling Bancshares, Inc.	941,772		5,255,088
			65,877,146
Commercial Services & Supplies – 4.2%
Brink’s Co. (The)	58,466		1,650,495
McGrath Rentcorp	147,833		3,581,994
Rollins, Inc.	665,046		14,418,197
Standard Parking Corp.(b)	497,373		8,166,865
Team, Inc.(b)	174,849		2,900,745
US Ecology, Inc.	150,555		2,423,935
Waste Connections, Inc.(b)	248,909		8,452,950
			41,595,181

See accompanying notes to financial statements.

12

PORTFOLIO OF INVESTMENTS – as of March 31, 2010 (Unaudited)

Loomis Sayles Small Cap Value Fund – continued

	Shares	Value (†)
COMMON STOCKS – continued
Communications Equipment – 1.4%
ADTRAN, Inc.	295,065	$	7,774,963
Tekelec(b)	343,013		6,229,116
			14,004,079
Computers & Peripherals – 0.3%
Intevac, Inc.(b)	197,385		2,727,861
Construction & Engineering – 0.3%
MYR Group, Inc.(b)	195,627		3,190,676
Consumer Finance – 1.5%
Cash America International, Inc.	134,704		5,318,114
Dollar Financial Corp.(b)	392,286		9,438,401
			14,756,515
Containers & Packaging – 0.4%
Myers Industries, Inc.	336,928		3,531,005
Distributors – 0.4%
Core-Mark Holding Co., Inc.(b)	134,464		4,115,943
Diversified Financial Services – 1.4%
MarketAxess Holdings, Inc.	165,315		2,600,405
PHH Corp.(b)	459,820		10,837,957
			13,438,362
Electric Utilities – 2.2%
ALLETE, Inc.	203,571		6,815,557
ITC Holdings Corp.	147,590		8,117,450
UIL Holdings Corp.	257,628		7,084,770
			22,017,777
Electrical Equipment – 3.7%
Baldor Electric Co.	260,504		9,742,850
Encore Wire Corp.	163,553		3,401,902
General Cable Corp.(b)	152,990		4,130,730
GrafTech International Ltd.(b)	343,908		4,701,222
II-VI, Inc.(b)	282,201		9,549,682
Thomas & Betts Corp.(b)	123,425		4,843,197
			36,369,583
Electronic Equipment Instruments & Components – 1.7%
Littelfuse, Inc.(b)	37,667		1,431,723
Methode Electronics, Inc.	471,204		4,664,919
ScanSource, Inc.(b)	205,397		5,911,326
TTM Technologies, Inc.(b)	491,001		4,360,089
			16,368,057
Energy Equipment & Services – 2.2%
Dresser-Rand Group, Inc.(b)	238,477		7,492,947
Lufkin Industries, Inc.	78,784		6,235,754
Oceaneering International, Inc.(b)	127,450		8,091,800
			21,820,501
Food & Staples Retailing – 0.7%
BJ’s Wholesale Club, Inc.(b)	82,885		3,065,916
Spartan Stores, Inc.	282,047		4,067,118
			7,133,034

See accompanying notes to financial statements.

13

	Shares	Value (†)
COMMON STOCKS – continued
Food Products – 2.8%
Corn Products International, Inc.	128,224	$	4,444,244
Darling International, Inc.(b)	645,479		5,783,492
Fresh Del Monte Produce, Inc.(b)	186,239		3,771,340
Imperial Sugar Co.	147,879		2,293,603
J & J Snack Foods Corp.	190,066		8,262,169
Ralcorp Holdings, Inc.(b)	44,053		2,985,912
			27,540,760
Gas Utilities – 1.7%
UGI Corp.	644,457		17,103,889
Health Care Equipment & Supplies – 2.6%
Haemonetics Corp.(b)	126,173		7,210,787
Medical Action Industries, Inc.(b)	262,583		3,221,893
Teleflex, Inc.	146,254		9,370,494
West Pharmaceutical Services, Inc.	144,562		6,064,376
			25,867,550
Health Care Providers & Services – 1.6%
Almost Family, Inc.(b)	67,401		2,540,344
CorVel Corp.(b)	82,524		2,950,233
MEDNAX, Inc.(b)	119,792		6,970,696
MWI Veterinary Supply, Inc.(b)	79,972		3,230,869
			15,692,142
Hotels, Restaurants & Leisure – 2.1%
Bob Evans Farms, Inc.	181,897		5,622,436
California Pizza Kitchen, Inc.(b)	202,715		3,403,585
Dover Downs Gaming & Entertainment, Inc.	301,983		1,195,853
Isle of Capri Casinos, Inc.(b)	430,695		3,350,807
Wyndham Worldwide Corp.	286,963		7,383,558
			20,956,239
Household Durables – 1.4%
Jarden Corp.	197,326		6,568,982
Leggett & Platt, Inc.	349,731		7,568,179
			14,137,161
Industrial Conglomerates – 0.4%
Raven Industries, Inc.	123,702		3,647,972
Insurance – 5.2%
Aspen Insurance Holdings Ltd.	256,449		7,395,989
Assured Guaranty Ltd.	184,155		4,045,885
Hanover Insurance Group, Inc. (The)	134,037		5,845,354
HCC Insurance Holdings, Inc.	334,373		9,228,695
Primerica, Inc.(b)	53,340		800,100
ProAssurance Corp.(b)	123,616		7,236,481
Reinsurance Group of America, Inc.	139,456		7,324,229
RLI Corp.	113,569		6,475,704
Zenith National Insurance Corp.	78,015		2,989,535
			51,341,972
Internet & Catalog Retail – 0.5%
HSN, Inc.(b)	176,776		5,204,285

See accompanying notes to financial statements.

14

PORTFOLIO OF INVESTMENTS – as of March 31, 2010 (Unaudited)

Loomis Sayles Small Cap Value Fund – continued

	Shares	Value (†)
COMMON STOCKS – continued
Internet Software & Services – 0.7%
AOL, Inc.(b)	127,486	$	3,222,846
IAC/InterActiveCorp(b)	172,647		3,925,993
			7,148,839
IT Services – 4.0%
Alliance Data Systems Corp.(b)	111,455		7,132,005
Broadridge Financial Solutions, Inc.	419,303		8,964,698
iGATE Corp.	456,216		4,438,982
Lender Processing Services, Inc.	217,332		8,204,283
NCI, Inc., Class A(b)	139,200		4,208,016
Wright Express Corp.(b)	214,667		6,465,770
			39,413,754
Life Sciences Tools & Services – 1.2%
Mettler-Toledo International, Inc.(b)	63,086		6,888,991
Pharmaceutical Product Development, Inc.	200,248		4,755,890
			11,644,881
Machinery – 4.9%
Actuant Corp., Class A	476,590		9,317,334
Albany International Corp., Class A	486,785		10,480,481
Altra Holdings, Inc.(b)	345,727		4,746,832
Harsco Corp.	90,868		2,902,324
John Bean Technologies Corp.	370,402		6,496,851
Middleby Corp. (The)(b)	42,038		2,420,968
RBC Bearings, Inc.(b)	146,570		4,671,186
Wabtec Corp.	169,822		7,152,903
			48,188,879
Marine – 0.6%
Kirby Corp.(b)	156,357		5,965,020
Media – 4.3%
Alloy, Inc.(b)	244,628		2,005,950
Arbitron, Inc.	163,892		4,369,361
John Wiley & Sons, Inc. Class A	231,322		10,011,616
Liberty Media–Starz, Series A(b)	135,351		7,400,993
Live Nation Entertainment, Inc.(b)	621,015		9,004,717
Madison Square Garden, Inc. Class A(b)	78,782		1,711,933
Scholastic Corp.	264,343		7,401,604
			41,906,174
Metals & Mining – 1.5%
Horsehead Holding Corp.(b)	429,497		5,085,245
Reliance Steel & Aluminum Co.	190,083		9,357,786
			14,443,031
Multi-Utilities & Unregulated Power – 0.5%
NorthWestern Corp.	193,268		5,181,515
Multiline Retail – 0.3%
Fred’s, Inc. Class A	213,784		2,561,132
Oil, Gas & Consumable Fuels – 3.8%
Arena Resources, Inc.(b)	169,513		5,661,734
Berry Petroleum Co., Class A	187,881		5,290,729
Cloud Peak Energy, Inc.(b)	219,099		3,645,807

See accompanying notes to financial statements.

15

	Shares	Value (†)
COMMON STOCKS – continued
Oil, Gas & Consumable Fuels – continued
Comstock Resources, Inc.(b)	196,822	$	6,258,940
Mariner Energy, Inc.(b)	360,308		5,393,811
Penn Virginia Corp.	459,007		11,245,671
			37,496,692
Paper & Forest Products – 0.6%
Clearwater Paper Corp.(b)	33,143		1,632,293
Deltic Timber Corp.	94,118		4,145,898
			5,778,191
Pharmaceuticals – 1.8%
Endo Pharmaceuticals Holdings, Inc.(b)	297,263		7,042,160
Obagi Medical Products, Inc.(b)	371,504		4,524,919
Perrigo Co.	109,497		6,429,664
			17,996,743
Professional Services – 0.2%
Navigant Consulting, Inc.(b)	159,540		1,935,220
Real Estate Management & Development – 0.6%
Forestar Group, Inc.(b)	332,824		6,283,717
REITs – 4.4%
American Campus Communities, Inc.	332,085		9,185,471
Capstead Mortgage Corp.	581,120		6,950,195
Chimera Investment Corp.	1,535,216		5,971,990
Digital Realty Trust, Inc.	133,573		7,239,656
National Retail Properties, Inc.	219,320		5,007,076
Potlatch Corp.	268,691		9,414,933
			43,769,321
Road & Rail – 1.0%
Con-way, Inc.	112,329		3,944,995
Genesee & Wyoming, Inc., Class A(b)	187,345		6,392,211
			10,337,206
Semiconductors & Semiconductor Equipment – 3.7%
Applied Micro Circuits Corp.(b)	339,295		2,928,116
Atmel Corp.(b)	1,369,402		6,888,092
Cohu, Inc.	251,428		3,462,164
LSI Corp.(b)	1,032,647		6,319,800
ON Semiconductor Corp.(b)	740,740		5,925,920
Teradyne, Inc.(b)	665,150		7,429,725
TriQuint Semiconductor, Inc.(b)	518,512		3,629,584
			36,583,401
Software – 2.2%
Progress Software Corp.(b)	156,761		4,926,998
Quest Software, Inc.(b)	272,667		4,850,746
Radiant Systems, Inc.(b)	209,408		2,988,252
Sybase, Inc.(b)	197,444		9,204,840
			21,970,836
Specialty Retail – 2.7%
Genesco, Inc.(b)	194,583		6,034,019
Jo-Ann Stores, Inc.(b)	183,120		7,687,378
Sally Beauty Holdings, Inc.(b)	1,014,346		9,047,966
Sonic Automotive, Inc., Class A(b)	382,036		4,202,396
			26,971,759

See accompanying notes to financial statements.

16

PORTFOLIO OF INVESTMENTS – as of March 31, 2010 (Unaudited)

Loomis Sayles Small Cap Value Fund – continued

	Shares		Value (†)
COMMON STOCKS – continued
Textiles, Apparel & Luxury Goods – 1.2%
Fossil, Inc.(b)		248,694	$	9,385,712
Movado Group, Inc.(b)		208,947		2,356,922
				11,742,634
Thrifts & Mortgage Finance – 0.9%
Washington Federal, Inc.		412,680		8,385,658
Water Utilities – 0.5%
Middlesex Water Co.		272,189		4,640,823
TOTAL COMMON STOCKS
(Identified Cost $799,503,423)				964,032,291
	Principal Amount
SHORT-TERM INVESTMENTS – 2.2%
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2010 at 0.000% to be repurchased at $21,709,598 on 4/01/2010 collateralized by $22,145,000 Federal Home Loan Mortgage Corp., 2.125% due 6/18/2013 valued at $22,145,000 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $21,709,598)	$	21,709,598		21,709,598
TOTAL INVESTMENTS – 100.0%
(Identified Cost $821,213,021)(a)				985,741,889
Other assets less liabilities—0.0%				336,164
NET ASSETS – 100.0%			$	986,078,053
(†)   See Note 2 of Notes to Financial Statements.
(a)    Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.): At March 31, 2010, the net unrealized appreciation on investments based on a cost of $821,070,333 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	184,249,202
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(19,577,646	)
Net unrealized appreciation			$	164,671,556
(b)    Non-income producing security.

REITs Real Estate Investment Trusts

See accompanying notes to financial statements.

17

INDUSTRY SUMMARY AT MARCH 31, 2010 (Unaudited)

Commercial Banks	6.7	%
Insurance	5.2
Machinery	4.9
REITs	4.4
Media	4.3
Commercial Services & Supplies	4.2
IT Services	4.0
Oil, Gas & Consumable Fuels	3.8
Semiconductors & Semiconductor Equipment	3.7
Electrical Equipment	3.7
Chemicals	3.6
Capital Markets	3.5
Food Products	2.8
Specialty Retail	2.7
Health Care Equipment & Supplies	2.6
Electric Utilities	2.2
Software	2.2
Energy Equipment & Services	2.2
Hotels, Restaurants & Leisure	2.1
Other Investments, less than 2% each	29.0
Short-Term Investments	2.2
Total Investments	100.0
Other assets less liabilities	0.0
Net Assets	100.0	%

See accompanying notes to financial statements.

18

STATEMENTS OF ASSETS AND LIABILITIES

March 31, 2010 (Unaudited)

	Small Cap Growth Fund			Small Cap Value Fund
Assets
Investments at cost	$	95,063,777		$	821,213,021
Net unrealized appreciation		31,305,679			164,528,868
Investments at value		126,369,456			985,741,889
Receivable for Fund shares sold		202,400			833,331
Receivable for securities sold		444,190			3,596,919
Dividends receivable		—			1,546,152
Total Assets		127,016,046			991,718,291
Liabilities
Payable for securities purchased		1,741,869			2,134,561
Payable for Fund shares redeemed		378,753			2,727,065
Management fees payable (Note 5)		79,109			569,757
Administrative fees payable (Note 5)		5,476			40,428
Deferred Trustees’ fees (Note 5)		45,702			104,756
Other accounts payable and accrued expenses		41,535			63,671
Total Liabilities		2,292,444			5,640,238
Net Assets	$	124,723,602		$	986,078,053
Net Assets consist of:
Paid-in capital	$	327,268,014		$	1,005,282,238
Accumulated net investment (loss)/Undistributed net investment income		(640,180	)		1,199,281
Accumulated net realized loss on investments		(233,209,911	)		(184,932,334	)
Net unrealized appreciation on investments		31,305,679			164,528,868
Net Assets	$	124,723,602		$	986,078,053
Computation of Net Asset Value and Offering Price:
Institutional Class:
Net assets	$	49,361,390		$	507,433,350
Shares of beneficial interest		3,693,875			22,467,275
Net asset value, offering and redemption price per share	$	13.36		$	22.59
Retail Class:
Net assets	$	75,362,212		$	405,023,043
Shares of beneficial interest		5,830,029			18,086,325
Net asset value, offering and redemption price per share	$	12.93		$	22.39
Admin Class:
Net assets	$	—		$	73,621,660
Shares of beneficial interest		—			3,344,579
Net asset value, offering and redemption price per share	$	—		$	22.01

See accompanying notes to financial statements.

19

STATEMENTS OF OPERATIONS

For the Six Months Ended March 31, 2010 (Unaudited)

	Small Cap Growth Fund			Small Cap Value Fund
Investment Income
Dividends	$	130,936		$	7,321,848
Expenses
Management fees (Note 5)		468,302			3,597,932
Service and distribution fees (Note 5)		99,753			661,073
Trustees’ fees and expenses (Note 5)		7,034			14,110
Administrative fees (Note 5)		30,217			232,150
Custodian fees and expenses		11,317			20,504
Transfer agent fees and expenses (Notes 5 and 6)		89,267			567,945
Audit and tax services fees		18,555			21,199
Legal fees		1,234			9,730
Shareholder reporting expenses		12,220			77,999
Registration fees		19,314			42,780
Fee/expense recovery (Note 5)		838			—
Miscellaneous expenses		4,968			18,307
Total expenses		763,019			5,263,729
Less fee reduction and/or expense reimbursement (Note 5)		(38,864	)		(285,128	)
Net expenses		724,155			4,978,601
Net investment income (loss)		(593,219	)		2,343,247
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on:
Investments		6,741,771			22,924,510
Net change in unrealized appreciation (depreciation) on:
Investments		11,955,656			62,191,872
Net realized and unrealized gain on investments		18,697,427			85,116,382
Net Increase in Net Assets Resulting from Operations	$	18,104,208		$	87,459,629

See accompanying notes to financial statements.

20

STATEMENTS OF CHANGES IN NET ASSETS

Small Cap Growth Fund

	Six Months Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009
From Operations:
Net investment loss	$	(593,219	)	$	(794,013	)
Net realized gain (loss) on investments		6,741,771			(34,962,361	)
Net change in unrealized appreciation (depreciation) on investments		11,955,656			21,890,105
Net increase (decrease) in net assets resulting from operations		18,104,208			(13,866,269	)
From Distributions to Shareholders:
Net Investment Income
Institutional Class		—			—
Retail Class		—			—
Net Realized Capital gains
Institutional Class		—			—
Retail Class		—			—
Net Increase (Decrease) in Net Assets from Capital Share Transactions (Note 10)		(14,415,537	)		10,464,100
Net Increase (Decrease) in Net Assets		3,688,671			(3,402,169	)
Net Assets
Beginning of the period		121,034,931			124,437,100
End of the period	$	124,723,602		$	121,034,931
Accumulated Net Investment (Loss)	$	(640,180	)	$	(46,961	)

Small Cap Value Fund

	Six Months Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009
FROM OPERATIONS:
Net investment income	$	2,343,247		$	3,004,380
Net realized gain (loss) on investments		22,924,510			(157,922,333	)
Net change in unrealized appreciation (depreciation) on investments		62,191,872			76,497,968
Net increase (decrease) in net assets resulting from operations		87,459,629			(78,419,985	)
From Distributions to Shareholders:
Net Investment Income
Institutional Class		(1,798,397	)		(2,585,541	)
Retail Class		(522,660	)		(1,071,277	)
Admin Class		—			(9,660	)
Net Realized Capital Gain
Institutional Class		—			(167,987	)
Retail Class		—			(141,335	)
Admin Class		—			(24,687	)
Total distributions		(2,321,057	)		(4,000,487	)
Net Decrease in Net Assets from Capital Share Transactions (Note 10)		(66,962,560	)		(45,368,424	)
Redemption fees
Institutional Class		—			21,500
Retail Class		—			17,487
Admin Class		—			3,123
Total redemption fees		—			42,110
Net increase (decrease) in net assets		18,176,012			(127,746,786	)
Net Assets
Beginning of the period		967,902,041			1,095,648,827
End of the period	$	986,078,053		$	967,902,041
Undistributed Net Investment Income	$	1,199,281		$	1,177,091

See accompanying notes to financial statements.

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FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment income (loss)(a)(b)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net  investment income(b)			Distributions from net realized capital gains			Total distributions
Small Cap Growth Fund
Institutional Class
3/31/2010(g)	$	11.58	$	(0.05	)	$	1.83		$	1.78		$	—		$	—		$	—
9/30/2009		13.07		(0.07	)		(1.42	)		(1.49	)		—			—			—
9/30/2008		15.87		(0.07	)		(2.73	)		(2.80	)		—			—			—
9/30/2007		12.00		(0.06	)(i)		3.93			3.87			—			—			—
9/30/2006		11.08		(0.08	)		0.99			0.91			—			—			—
9/30/2005		8.96		(0.08	)		2.20			2.12			—			—			—
Retail Class
3/31/2010(g)		11.21		(0.06	)		1.78			1.72			—			—			—
9/30/2009		12.69		(0.09	)		(1.39	)		(1.48	)		—			—			—
9/30/2008		15.45		(0.10	)		(2.66	)		(2.76	)		—			—			—
9/30/2007		11.71		(0.09	)(i)		3.83			3.74			—			—			—
9/30/2006		10.84		(0.11	)		0.97			0.86			—			—			—
9/30/2005		8.78		(0.11	)		2.17			2.06			—			—			—
Small Cap Value Fund
Institutional Class
3/31/2010(g)	$	20.66	$	0.07		$	1.93		$	2.00		$	(0.07	)	$	—		$	(0.07	)
9/30/2009		22.01		0.09			(1.32	)		(1.23	)		(0.11	)		(0.01	)		(0.12	)
9/30/2008		28.77		0.11	(j)		(4.03	)		(3.92	)		(0.06	)		(2.78	)		(2.84	)
9/30/2007		27.69		0.12	(i)(k)		4.29			4.41			(0.17	)		(3.16	)		(3.33	)
9/30/2006		27.43		0.13			2.70			2.83			(0.15	)		(2.42	)		(2.57	)
9/30/2005		25.75		0.13			4.22			4.35			(0.02	)		(2.65	)		(2.67	)
Retail Class
3/31/2010(g)		20.47		0.04			1.91			1.95			(0.03	)		—			(0.03	)
9/30/2009		21.79		0.04			(1.30	)		(1.26	)		(0.05	)		(0.01	)		(0.06	)
9/30/2008		28.52		0.05	(j)		(4.00	)		(3.95	)		—			(2.78	)		(2.78	)
9/30/2007		27.46		0.04	(i)(k)		4.28			4.32			(0.10	)		(3.16	)		(3.26	)
9/30/2006		27.23		0.06			2.67			2.73			(0.08	)		(2.42	)		(2.50	)
9/30/2005		25.62		0.06			4.20			4.26			—			(2.65	)		(2.65	)
Admin Class
3/31/2010(g)		20.11		0.01			1.89			1.90			—			—			—
9/30/2009		21.40		0.00			(1.28	)		(1.28	)		(0.00	)		(0.01	)		(0.01	)
9/30/2008		28.13		(0.01	)(j)		(3.94	)		(3.95	)		—			(2.78	)		(2.78	)
9/30/2007		27.14		(0.03	)(i)(k)		4.22			4.19			(0.04	)		(3.16	)		(3.20	)
9/30/2006		26.94		(0.01	)		2.65			2.64			(0.02	)		(2.42	)		(2.44	)
9/30/2005		25.43		(0.00	)		4.16			4.16			—			(2.65	)		(2.65	)

(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, if applicable.

(c) Effective June 1, 2009, redemption fees were eliminated.

(d) Had certain expenses not been reduced during the period, if applicable, total returns would have been lower. Periods less than one year, if applicable, are not annualized.

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

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

See accompanying notes to financial statements.

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								Ratios to Average Net Assets:
Redemption fees(b)(c)		Net asset value, end of the period		Total return  (%)(d)		Net assets, end of the period (000’s)		Net expenses  (%)(e)(f)		Gross expenses  (%)(e)		Net investment income (loss)  (%)(e)		Portfolio turnover rate (%)
$	—	$	13.36	15.37		$	49,361	1.00	(h)	1.00	(h)	(0.79	)	33
	—		11.58	(11.40	)		45,557	1.00		1.01		(0.68	)	107
	0.00		13.07	(17.64	)		44,540	1.00		1.01		(0.47	)	92
	0.00		15.87	32.25			28,088	1.00		1.23		(0.47	)	83
	0.01		12.00	8.30			20,414	1.00		1.38		(0.69	)	100
	0.00		11.08	23.66			15,785	1.00		1.70		(0.85	)	227
	—		12.93	15.34			75,362	1.25		1.35		(1.04	)	33
	—		11.21	(11.66	)		75,478	1.25		1.43		(0.93	)	107
	0.00		12.69	(17.86	)		79,897	1.25		1.42		(0.70	)	92
	0.00		15.45	31.94			20,924	1.25		1.50		(0.66	)	83
	0.01		11.71	8.03			2,981	1.25		1.92		(0.94	)	100
	0.00		10.84	23.46			3,592	1.25		1.87		(1.14	)	227
$	—	$	22.59	9.74		$	507,433	0.90		0.92		0.62		25
	0.00		20.66	(5.42	)		506,324	0.90		0.94		0.52		55
	0.00		22.01	(15.02	)		553,268	0.89		0.89		0.47		61
	0.00		28.77	17.02			534,776	0.89		0.89		0.43		57
	0.00		27.69	11.17			442,714	0.89	(l)	0.89	(l)	0.47		62
	0.00		27.43	17.99			403,110	0.90		0.93		0.48		59
	—		22.39	9.53			405,023	1.15		1.23		0.38		25
	0.00		20.47	(5.66	)		387,383	1.15		1.31		0.26		55
	0.00		21.79	(15.21	)		464,525	1.15		1.27		0.21		61
	0.00		28.52	16.74			465,055	1.15		1.24		0.15		57
	0.00		27.46	10.87			291,690	1.15		1.20		0.21		62
	0.00		27.23	17.69			235,948	1.15		1.20		0.24		59
	—		22.01	9.45			73,622	1.40		1.63		0.14		25
	0.00		20.11	(5.93	)		74,195	1.40		1.77		0.02		55
	0.00		21.40	(15.44	)		77,855	1.40		1.68		(0.04	)	61
	0.00		28.13	16.41			76,783	1.40		1.56		(0.10	)	57
	0.00		27.14	10.59			64,367	1.40		1.46		(0.04	)	62
	0.00		26.94	17.40			67,505	1.40		1.43		(0.01	)	59

(g) For the six months ended March 31, 2010 (Unaudited).

(h) Includes fee/expense recovery of less than 0.01%.

(i) Includes a non-recurring payment of $0.01 per share and $0.00 per share for Small Cap Growth Fund and Small Cap Value Fund, respectively.

(j) Includes a non-recurring dividend of $0.02 per share.

(k) Includes a non-recurring dividend of $0.05 per share.

(l) Includes fee/expense recovery of 0.02%.

See accompanying notes to financial statements.

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NOTES TO FINANCIAL STATEMENTS

March 31, 2010 (Unaudited)

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

Loomis Sayles Funds I:

Loomis Sayles Small Cap Value Fund (the “Small Cap Value Fund”)

Loomis Sayles Funds II:

Loomis Sayles Small Cap Growth Fund (the “Small Cap Growth Fund”)

Each Fund offers Institutional Class Shares and Retail Class Shares. In addition, Small Cap Value Fund offers Admin Class Shares.

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

2.Significant Accounting Policies. The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions that have occurred through the date the financial statements were issued, and noted no items requiring recognition in the financial statements or additional disclosure in the Notes to Financial Statements.

a.  Valuation. Equity securities, including shares of closed-end investment companies and exchange-traded funds, for which market quotations are readily available are valued at market value, as reported by pricing services recommended by the investment adviser and approved by the Board of Trustees. Such pricing services generally use the security’s last sale price on the exchange or market where the security is primarily traded or, if there is no reported sale during the day, the closing bid price. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking a NOCP, at the most recent bid quotation on the applicable NASDAQ Market. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Funds by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Funds may be valued on the basis of a price provided by a principal market maker. Forward foreign currency contracts are valued utilizing interpolated prices determined from information provided by an independent pricing service. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser using consistently applied procedures under the general supervision of the Board of Trustees. Investments in other open-end investment companies are valued at their net asset value each day.

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

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b.  Security Transactions and Related Investment Income. Security transactions are accounted for on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. Distributions received from investments in securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Funds’ investments in real estate investment trusts (“REITs”) are reported to the Funds after the end of the fiscal year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Funds after the end of the fiscal year. Estimates are based on the most recent REIT distribution information available. Investment income is recorded net of foreign taxes withheld when applicable. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

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

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

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

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

d.  Federal and Foreign Income Taxes. Each Trust treats each fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code 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 March 31, 2010 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 six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

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

e.  Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes for items such as distribution redesignation and net operating losses. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to securities lending collateral gain/loss adjustment, deferred Trustees’ fees and wash sales. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

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NOTES TO FINANCIAL STATEMENTS – continued

March 31, 2010 (Unaudited)

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the year ended September 30, 2009 was as follows:

	2009 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
Small Cap Growth Fund	$	—	$	—	$	—
Small Cap Value Fund		3,669,309		331,178		4,000,487

Differences between these amounts and those reported in the Statements of Changes in Net Assets, if any, are primarily attributable to different book and tax treatment for short-term capital gains.

As of September 30, 2009, the capital loss carryforwards and post-October losses were as follows:

	Small Cap Growth Fund			Small Cap Value Fund
Capital loss carryforward:
Expires September 30, 2010	$	(138,314,515	)	$	—
Expires September 30, 2011		(59,283,040	)		—
Expires September 30, 2017		(14,995,800	)		(88,137,321	)
Total capital loss carryforward	$	(212,593,355	)	$	(88,137,321	)
Deferred net capital losses (post-October 2008)	$	(26,616,006	)	$	(110,445,559	)

f.  Repurchase Agreements. 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.

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

As of March 31, 2010, there were no securities on loan.

h.   Indemnifications. Under the Trusts’ organizational documents, their 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.

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.);

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• Level 3—prices determined using significant unobservable inputs for situations where 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 following is a summary of the inputs used to value the Funds’ investments as of March 31, 2010, at value:

Small Cap Growth Fund

Asset Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	122,694,823	$	—	$	—	$	122,694,823
Short-Term Investments		—		3,674,633		—		3,674,633
Total	$	122,694,823	$	3,674,633	$	—	$	126,369,456
(a)Major categories of the Fund’s investments are included in the Portfolio of Investments.

Small Cap Value Fund

Asset Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	964,032,291	$	—	$	—	$	964,032,291
Short-Term Investments		—		21,709,598		—		21,709,598
Total	$	964,032,291	$	21,709,598	$	—	$	985,741,889
(a)Major categories of the Fund’s investments are included in the Portfolio of Investments.

4.  Purchases and Sales of Securities. For the six months ended March 31, 2010, purchases and sales of securities (excluding short-term investments) were as follows:

Fund	Purchases		Sales
Small Cap Growth Fund	$	39,503,483	$	53,318,877
Small Cap Value Fund		232,048,082		276,558,127

5.  Management Fees and Other Transactions with Affiliates.

a.  Management Fees. Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to each Fund. Under the terms of the management agreements, each Fund pays a management fee at the following annual rates, calculated daily and payable monthly, based on each Fund’s average daily net assets:

Fund	Percentage of Average Daily Net Assets
Small Cap Growth Fund	0.75%
Small Cap Value Fund	0.75%

Loomis Sayles has given binding undertakings to the Funds to reduce 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 and extraordinary expenses. These undertakings are in effect until January 31, 2011 and will be reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, are net of fee reductions and/or expense reimbursements, if any, pursuant to these undertakings.

For the six months ended March 31, 2010, 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	Institutional Class		Retail Class		Admin Class
Small Cap Growth Fund	1.00	%	1.25	%	—
Small Cap Value Fund	0.90	%	1.15	%	1.40	%

28

NOTES TO FINANCIAL STATEMENTS – continued

March 31, 2010 (Unaudited)

Loomis Sayles shall be permitted to recover expenses it has borne under the expense limitation agreements (whether through reduction of its management fees or otherwise) on a class by class basis in later periods to the extent the expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such reduced fees/expenses more than one year after the end of the fiscal year in which the fees/expenses were reduced.

For the six months ended March 31, 2010, the management fees for each Fund were as follows:

Fund	Management Fees		Percentage of Average Daily Net Assets
Small Cap Growth Fund	$	468,302	0.75%
Small Cap Value Fund		3,597,932	0.75%

For the six months ended March 31, 2010, class-specific expenses have been reimbursed as follows:

	Reimbursement1
Fund	Institutional Class		Retail Class		Admin Class		Total
Small Cap Growth Fund	$	—	$	38,864	$	—	$	38,864
Small Cap Value Fund		46,436		154,439		84,253		285,128
1   Expense reimbursements are subject to possible recovery until September 30, 2011.

For the six months ended March 31, 2010, expense reimbursements related to prior fiscal year were recovered as follows:

	Recovered Expenses
Fund	Institutional Class		Retail Class		Total
Small Cap Growth Fund	$	838	$	—	$	838

Certain officers and employees of Loomis Sayles are also officers or Trustees of the Trust. Loomis Sayles’ general partner is indirectly owned by Natixis Global Asset Management, L.P. (“Natixis US”), which is part of Natixis Global Asset Management, an international asset management group based in Paris, France.

b.  Administrative Fees. Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0500% of the next $15 billion, 0.0425% of the next $30 billion and 0.0375% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

For the six months ended March 31, 2010, each Fund paid the following for administrative fees to Natixis Advisors:

Fund	Administrative Fees
Small Cap Growth Fund	$	30,217
Small Cap Value Fund		232,150

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

Pursuant to Rule 12b-1 under the 1940 Act, the Small Cap Growth Fund and Small Cap Value Fund have adopted a Distribution Plan relating to each Fund’s Retail Class shares (the “Retail Class Plan”), and the Small Cap Value Fund has adopted a Distribution Plan relating to its Admin Class shares (the “Admin Class Plan”).

29

Under the respective Retail Class Plan, each Fund pays Natixis Distributors a monthly distribution fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Funds’ Retail Class shares, as compensation for services provided by Natixis Distributors in connection with the marketing or sale of Retail Class shares or for payments made by Natixis Distributors to securities dealers or other financial intermediaries as commissions, asset-based sales charges or other compensation with respect to the sale of Retail Class shares, or for providing personal services to investors and/or the maintenance of shareholder accounts.

Under the Admin Class Plan, the Small Cap Value Fund pays Natixis Distributors a monthly distribution fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Admin Class shares, as compensation for services provided by Natixis Distributors in connection with the marketing or sale of Admin Class shares or for payments made by Natixis Distributors to securities dealers or other financial intermediaries as commissions, asset-based sales charges or other compensation with respect to the sale of Admin Class shares, or for providing personal services to investors and/or the maintenance of shareholder accounts.

In addition, the Admin Class shares of the Small Cap Value may pay Natixis Distributors an administrative service fee, at an annual rate not to exceed 0.25% of the average daily net assets attributable to Admin Class shares. These fees are subsequently paid to securities dealers or financial intermediaries for providing personal services and/or account maintenance for their customers who hold such shares.

For the six months ended March 31, 2010 the Fund paid the following service and distribution fees:

	Service Fees		Distribution Fees
	Admin Class		Retail Class		Admin Class
Small Cap Growth Fund	$	—	$	99,753	$	—
Small Cap Value Fund		90,357		480,359		90,357

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

For the six months ended March 31, 2010, the Funds paid the following sub-transfer agent fees, which are reflected in transfer agent fees and expenses in the Statements of Operations:

	Sub-Transfer Agent Fees
Fund	Institutional Class		Retail Class		Admin Class
Small Cap Growth Fund	$	16,330	$	21,614	$	—
Small Cap Value Fund		183,310		259,468		83,929

e.  Trustees Fees and Expenses. The Funds do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distributors, Natixis US or their affiliates. Effective January 1, 2010, the Chairperson of the Board receives a retainer fee at the annual rate of $250,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $80,000. 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, each committee chairman receives an additional retainer fee at an annual rate of $15,000. Each Contract Review and Governance 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 $7,500 for each Committee meeting that he or she attends in person and $3,750 for each meeting that he or she attends telephonically. Each member of the ad hoc Committee on Alternative Investments received a one-time fee of $10,000. The ad hoc Committee on Alternative Investments is not a standing committee. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International

30

NOTES TO FINANCIAL STATEMENTS – continued

March 31, 2010 (Unaudited)

Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2010, the Chairperson of the Board received a retainer fee at the annual rate of $200,000. The Chairperson did not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attended. Each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $65,000. Each Independent Trustee also received a meeting attendance fee of $7,500 for each meeting of the Board of Trustees that he or she attended in person and $3,750 for each meeting of the Board of Trustees that he or she attended telephonically. In addition, each committee chairman received an additional retainer fee at the annual rate of $10,000. Each Contract Review and Governance Committee member was compensated $5,000 for each Committee meeting that he or she attended in person and $2,500 for each meeting that he or she attended telephonically. Each Audit Committee member was compensated $6,250 for each Committee meeting that he or she attended in person and $3,125 for each meeting that he or she attended telephonically.

A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Funds until distributed in accordance with the provisions of the Plan. 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 Hansberger International Series 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 Hansberger International Series, and are normally reflected as Trustees’ fees and expenses in the Statements of Operations. 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.

6.   Class-Specific Expenses. For the six months ended March 31, 2010, the Funds paid the following class-specific transfer agent fees and expenses (including sub-transfer agent fees):

	Transfer Agent Fees and Expenses
Fund	Institutional Class		Retail Class		Admin Class
Small Cap Growth Fund	$	17,579	$	71,688	$	—
Small Cap Value Fund		195,118		267,120		105,707

7.   Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participates in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each Fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. 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.

Prior to March 10, 2010, each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participated in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each Fund that participated in the line of credit. Interest was charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 0.75%. In addition, a commitment fee of 0.125% 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.

For the six months ended March 31, 2010, the Funds had no borrowings under these agreements.

8.   Brokerage Commission Recapture. Each Fund has entered into agreements with certain brokers whereby the brokers will rebate a portion of brokerage commissions. All amounts rebated by the brokers are returned to the Funds under such agreements and are included in realized gains in the Statements of Operations. For the six months ended March 31, 2010, amounts rebated under these agreements were as follows:

Fund	Rebates
Small Cap Growth Fund	$	6,525
Small Cap Value Fund		53,322

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9.   Concentration of Ownership. At March 31, 2010, the Loomis Sayles Funded Pension Plan and the Loomis Sayles Employees’ Profit Sharing Retirement Plan held shares of beneficial interest in the Funds as follows:

Fund	Pension Plan	Profit Sharing Retirement Plan
Small Cap Growth Fund	365,070	397,390
Small Cap Value Fund	360,114	784,294

From time to time, the Funds may have a concentration of several shareholders having a significant percentage of shares outstanding. Investment activities of these shareholders could have material impacts on the Funds. As of March 31, 2010, Small Cap Growth Fund had shareholders that held greater than 5% of the fund’s outstanding shares. Such ownership may be beneficially held by individuals or entities other than the owner of record. The number of greater than 5% shareholders and the aggregate percentage of net assets represented by such ownership was as follows:

Fund	Number of Greater Than 5% Shareholders	Percentage of Ownership
Small Cap Growth Fund	1	7.77%

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

	Small Cap Growth Fund
	Six Months Ended March 31, 2010					Year Ended September 30, 2009
Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	438,005		$	5,443,350		1,974,319		$	19,253,187
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(679,124	)		(8,083,408	)	(1,447,130	)		(13,740,063	)
Net change	(241,119	)	$	(2,640,058	)	527,189		$	5,513,124
Retail Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	988,405		$	11,767,651		3,127,117		$	30,016,606
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(1,889,534	)		(23,543,130	)	(2,692,237	)		(25,065,630	)
Net change	(901,129	)	$	(11,775,479	)	434,880		$	4,950,976
Increase (decrease) from capital share transactions	(1,142,248	)	$	(14,415,537	)	962,069		$	10,464,100
	Small Cap Value Fund
	Six Months Ended March 31, 2010					Year Ended September 30, 2009
Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	1,429,802		$	30,263,216		5,487,523		$	94,433,600
Issued in connection with the reinvestment of distributions	80,409			1,643,559		156,833			2,488,947
Redeemed	(3,549,030	)		(74,103,038	)	(6,270,554	)		(105,527,302	)
Net change	(2,038,819	)	$	(42,196,263	)	(626,198	)	$	(8,604,755	)

32

NOTES TO FINANCIAL STATEMENTS – continued

March 31, 2010 (Unaudited)

10. Capital Shares – continued

	Small Cap Value Fund—continued
	Six Months Ended March 31, 2010					Year Ended September 30, 2009
Retail Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	1,012,390		$	21,392,927		4,033,997		$	70,124,577
Issued in connection with the reinvestment of distributions	25,691			521,021		76,628			1,206,896
Redeemed	(1,879,123	)		(39,444,773	)	(6,502,104	)		(108,566,266	)
Net change	(841,042	)	$	(17,530,825	)	(2,391,479	)	$	(37,234,793	)
Admin Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	493,279		$	10,172,635		1,211,062		$	19,455,331
Issued in connection with the reinvestment of distributions	—			—		1,691			26,231
Redeemed	(837,460	)		(17,408,107	)	(1,162,021	)		(19,010,438	)
Net change	(344,181	)	$	(7,235,472	)	50,732		$	471,124
Increase (decrease) from capital share transactions	(3,224,042	)	$	(66,962,560	)	(2,966,945	)	$	(45,368,424	)

33

SEMIANNUAL REPORT

March 31, 2010

Loomis Sayles Investment Grade Bond Fund

TABLE OF CONTENTS

Management Discussion and Performance page 1

Portfolio of Investments page 5

Financial Statements page 18

LOOMIS SAYLES INVESTMENT GRADE BOND FUND

PORTFOLIO PROFILE

Objective:

High total investment return through a combination of current income and capital appreciation

Strategy:

Invests primarily in investment-grade, fixed-income securities, although it may invest up to 10% of its assets in lower quality fixed-income securities. The fund may invest any portion of its assets in securities of Canadian issuers and up to 20% in other foreign securities, including emerging markets.

Fund Inception:

December 31, 1996

Managers:

Daniel Fuss, CFA, CIC

Associate Managers:

Matthew J. Eagan, CFA

Kathleen Gaffney, CFA

Elaine Stokes

Loomis, Sayles & Company, L.P.

Symbols:

Class A	LIGRX
Class B	LGBBX
Class C	LGBCX
Class Y	LSIIX
Admin Class	LIGAX
Class J	LIGJX

What You Should Know:

This fund invests in fixed-income securities that are subject to credit risk, interest rate risk and liquidity risk. It may also invest in mortgage-related securities that are subject to prepayment risk. The fund can invest a significant percentage of assets in foreign securities and the value of fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The fund is subject to currency risk, which is the risk that fluctuations in exchange rates between the U.S. dollar and foreign currencies may cause the value of a fund’s investments to decline. Lower rated debt securities have speculative characteristics and may be subject to greater price volatility than higher rated investments. In addition, the secondary market for these securities may lack liquidity. Fund shares should be viewed as a long-term investment.

Management Discussion

Corporate debt and other fixed-income securities offering yield advantages over low-risk bonds continued to perform well during the six months ended March 31, 2010. Amid growing market expectations of a sustained global economic recovery, investors became more willing to accept credit risk in return for the high yields offered by corporate bonds and securitized debt. In line with the increasing appetite for risk, currencies of countries with commodity-based economies gained against other countries.

For the six months ended March 31, 2010, Class A shares of Loomis Sayles Investment Grade Bond Fund returned 6.24%. During the same period, the fund’s benchmark, the Barclays Capital U.S. Government/Credit Bond Index, rose 1.34%, while funds in Morningstar’s Intermediate-Term Bond category returned an average of 3.70%.

WHAT WAS THE PRIMARY REASON FOR THE FUND’S OUTPERFORMANCE?

As investors grew more confident about an economic recovery, securities with credit risk tended to rally in price. The fund’s emphasis on investment-grade corporate bonds, as well as its exposure to high-yield bonds and select non-agency securitized assets, helped propel strong results relative to the Barclays index. Moreover, as commodities gained in price in global markets, the fund’s exposure to commodity-linked currencies also helped support performance. The fund’s investments in securities denominated in the currencies of Canada, Indonesia, Australia, New Zealand and Mexico all contributed positive returns. Convertible bonds were also a performance driver.

WHAT FACTORS POSITIVELY CONTRIBUTED TO THE FUND’S PERFORMANCE?

Investment-grade industrial bonds were among the strongest performers, particularly holdings in the transportation, technology, capital goods and telecommunication services industries. In addition, investments in higher-yielding, below investment-grade corporate bonds also aided results, as demand for high-yield securities increased and expected default rates fell. In particular, positions in high-yield bonds of companies in the transportation, technology, retail and financial industries contributed positively to results. Investments in non-government agency securitized debt, including commercial mortgage-backed debt, provided further support. Finally, the dramatic performance of equity markets during the six months covered by this report also aided the fund, as convertible bonds rallied in industries such as autos, technology and financials.

WHICH FACTORS DETRACTED FROM THE FUND’S RESULTS?

Holdings in securities denominated in Icelandic krona underperformed when the currency depreciated relative to the U.S. dollar. In addition, the fund’s longer-than-benchmark duration – a measure of sensitivity to changes in interest rates – was a performance detractor as interest-rate sensitive longer-maturity bonds lagged.

WHAT IS YOUR CURRENT OUTLOOK?

The fund is positioned to take advantage of a gradual economic recovery and positive fundamental trends. We believe short-term interest rates in the United States will remain low for the foreseeable future, but acknowledge the continuing pressures that the ever-increasing U.S. Treasury issuance will place on longer-term rates. In our opinion, there remains ample opportunity for corporate bond yield spreads to tighten further. Within corporate credit, we are advocating a strategy of specific (fundamental credit) risk instead of market (interest rate) risk. We continue to see opportunity in the convertible market and have focused on increasing our exposure. We continue to add opportunistically to non-U.S. dollar-denominated securities, with a focus on credits and countries in which we anticipate fundamental improvements will continue to emerge. We believe that in a rising-rate environment, research and security selection will continue to prove key to successful portfolio management.

1

LOOMIS SAYLES INVESTMENT GRADE BOND FUND

Investment Results through March 31, 2010

PERFORMANCE IN PERSPECTIVE

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

Growth of a $10,000 Investment in Class A Shares^1,4

Average Annual Total Returns — March 31, 2010⁴

	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
Class A (Inception 12/31/96)1
Net Asset Value2	6.24	%	31.52	%	7.28	%	8.57	%
With Maximum Sales Charge3	1.45		25.54		6.29		8.07
Class B (Inception 9/12/03)1
Net Asset Value2	5.74		30.33		6.39		7.61
With CDSC5	0.74		25.33		6.07		7.61
Class C (Inception 9/12/03)1
Net Asset Value2	5.90		30.55		6.48		7.67
With CDSC5	4.90		29.55		6.48		7.67
Class Y (Inception 12/31/96)
Net Asset Value2	6.37		31.97		7.61		8.86
Admin Class (Inception 2/1/10)1
Net Asset Value2	6.04		30.94		6.77		7.98
Class J (Inception 5/24/99)
Net Asset Value2	5.98		30.89		6.80		8.06
With Sales Charge5	2.29		26.31		6.05		7.67
COMPARATIVE PERFORMANCE	6 MONTHS		1 YEAR		5 YEARS		10 YEARS
Barclays Capital U.S. Government/Credit Bond Index	1.34	%	7.51	%	5.17	%	6.22	%
Morningstar Intermediate-Term Bond Fund Avg.	3.70		16.76		4.48		5.60

See page 3 for a description of the index/average.

All returns represent past performance and do not guarantee future results. Share price and return will vary and you may have a gain or loss when you sell your shares. All results include reinvestment of any dividends and capital gains. Current returns may be higher or lower than those shown. For performance current to the most recent month-end, visit www.funds.natixis.com. Class Y is only available to certain investors as described in the prospectus. Class J shares are not offered for sale in the United States and are not eligible for sale to U.S. investors.

PORTFOLIO FACTS

	% of Net Assets as of
CREDIT QUALITY	3/31/2010*	9/30/2009**
Aaa	31.1	31.8
Aa	5.6	2.9
A	21.4	16.0
Baa	33.9	37.8
Ba	3.9	4.6
B	1.7	0.4
Caa and lower	0.3	1.6
Not Rated	0.5	1.2
Short-term and other	1.6	3.7

* Credit quality at 3/31/2010 reflects the highest rating assigned to a security among Moody’s, S&P, or Fitch. The Moody’s equivalent of the assigned rating is presented in the table.

** Credit quality at 9/30/2009 was based on ratings from Moody’s. Securities that were not rated by Moody’s may have been rated by another rating agency or by Loomis Sayles.

	% of Net Assets as of
EFFECTIVE MATURITY	3/31/2010		9/30/2009
1 year or less	1.7		6.0
1-5 years	36.0		31.3
5-10 years	45.0		43.5
10+ years	17.3		19.2
Average Effective Maturity	9.0	years	9.7	years

Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio6		Net Expense Ratio7
A	0.80	%	0.80	%
B	1.67		1.67
C	1.56		1.56
Y	0.54		0.54
Admin	1.33		1.20
J	1.31		1.30

NOTES TO CHARTS

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

¹ Prior to 9/15/03, performance of Class A shares is that of Retail Class shares, which were redesignated as Class A shares, restated to reflect the sales load of Class A shares. From 12/18/00 to 1/31/02, during which time Retail Class shares were not outstanding, performance is that of Institutional Class shares, restated to reflect the higher net expenses and sales loads of Class A shares. Prior to the inception of Class B and C shares (9/12/03), performance is that of Institutional Class shares, restated to reflect the higher net expenses and sales loads of Class B and C shares. Prior to the inception of Admin Class shares (2/1/10), performance is that of Class A shares, restated to reflect the higher net expenses of Admin Class shares.

² Does not include a sales charge.

³ Includes maximum sales charge of 4.50%.

⁴ Fund performance has been increased by expense reductions and reimbursements, if any, without which performance would have been lower.

⁵ Performance for Class B shares assumes a maximum 5% contingent deferred sales charge (“CDSC”) applied when you sell shares, which declines annually between years 1-6 according to the following schedule: 5, 4, 3, 3, 2, 1, 0%. Class C shares performance assumes a 1% CDSC applied when you sell shares within one year of purchase. Performance for Class J assumes a 3.50% sales charge.

⁶ Before reductions and reimbursements.

⁷ After reductions and reimbursements. Expense reductions are contractual and are set to expire on 1/31/11.

2

ADDITIONAL INFORMATION

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

Before investing, consider the fund’s investment objectives, risks, charges and other expenses. Visit www.funds.natixis.com or call 1-800-225-5478 for a prospectus and/or a summary prospectus, both of which contain this and other information. Read it carefully.

INDEX/AVERAGE DESCRIPTIONS:

Barclays Capital U.S. Government/Credit Bond Index is an unmanaged index that includes U.S. Treasuries, government-related issues, and investment grade U.S. corporate securities.

Morningstar Intermediate-Term Bond Fund Average is the average performance without sales charges of funds with similar investment objectives, as calculated by Morningstar, Inc.

PROXY VOTING INFORMATION

A description of the fund’s proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the fund’s website at www.funds.natixis.com; and on the Securities and Exchange Commission’s (SEC’s) website at www.sec.gov. Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2009 is available from the fund’s website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

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

NOT FDIC INSURED MAY LOSE VALUE NO BANK  GUARANTEE

3

UNDERSTANDING YOUR FUND’S EXPENSES

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

The first line in the table for each Class shows the actual amount of fund expenses you would have paid on a $1,000 investment in the fund from October 1, 2009 through March 31, 2010. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual fund returns and expenses. 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 =8.6) and multiply the result by the number in the Expenses Paid During the Period row as shown below for your class.

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

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

LOOMIS SAYLES INVESTMENT GRADE BOND FUND	BEGINNING ACCOUNT VALUE 10/1/2009	ENDING ACCOUNT VALUE 3/31/2010		EXPENSES PAID DURING PERIOD 10/1/2009 –  3/31/2010
Class A
Actual	$1,000.00	$1,062.40		$4.11	1
Hypothetical (5% return before expenses)	$1,000.00	$1,020.94		$4.03	*
Class B
Actual	$1,000.00	$1,057.40		$8.46	1
Hypothetical (5% return before expenses)	$1,000.00	$1,016.70		$8.30	*
Class C
Actual	$1,000.00	$1,059.00		$7.96	1
Hypothetical (5% return before expenses)	$1,000.00	$1,017.20		$7.80	*
Class Y
Actual	$1,000.00	$1,063.70		$2.83	1
Hypothetical (5% return before expenses)	$1,000.00	$1,022.19		$2.77	*
Admin Class
Actual	$1,000.00	$1,024.20	2	$1.93	2
Hypothetical (5% return before expenses)	$1,000.00	$1,001.96	*	$5.99	*
Class J
Actual	$1,000.00	$1,059.80		$6.68	1
Hypothetical (5% return before expenses)	$1,000.00	$1,018.45		$6.54	*

* Hypothetical expenses are equal to the Fund's annualized expense ratio (after fee reduction/reimbursement): 0.80%, 1.65%, 1.55%, 0.55%, 1.20% and 1.30%, for Class A, B, C, Y, Admin Class and Class J, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (182), divided by 365 (to reflect the half-year period).

¹ Actual expenses for Class A, B, C, Y and J are equal to the Fund's annualized expense ratio (after fee reduction/reimbursement): 0.80%, 1.65%, 1.55%, 0.55% and 1.30%, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (182), divided by 365 (to reflect the half-year period).

² Admin Class commenced operations on February 1, 2010. Actual expenses are equal to the Fund's annualized expense ratio (after fee reduction/reimbursement) of 1.20%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal period (58), divided by 365 (to reflect the partial period).

4

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 98.4% of Net Assets
	Non-Convertible Bonds — 94.8%
		ABS Car Loan — 1.0%
$	8,255,000	Avis Budget Rental Car Funding AESOP LLC, Series 2007-2A, Class A, 0.380%, 8/20/2013, 144A(b)	$	7,783,988
	831,000	Avis Budget Rental Car Funding AESOP LLC, Series 2010-2A, Class B, 5.740%, 8/20/2014, 144A		830,917
	4,690,000	Avis Budget Rental Car Funding AESOP LLC, Series 2010-3A, Class B, 6.740%, 5/20/2016, 144A		4,689,531
	19,025,000	Chesapeake Funding LLC, Series 2009-2A, Class B, 1.980%, 9/15/2021, 144A(b)		17,230,290
	17,100,000	Chesapeake Funding LLC, Series 2009-2A, Class C, 1.980%, 9/15/2021, 144A(b)		14,927,777
	43,060,000	Chrysler Financial Lease Trust, Series 2010-A, Class B, 3.460%, 9/16/2013, 144A		43,027,240
	7,199,000	Merrill Auto Trust Securitization Asset, Series 2008-1, Class B, 6.750%, 4/15/2015		7,453,984
				95,943,727
		ABS Credit Card — 1.5%
	9,995,000	American Express Issuance Trust, Series 2005-2, Class A, 0.300%, 8/15/2013(b)		9,945,404
	24,955,000	Capital One Multi-Asset Execution Trust, Series 2005-A10, Class A, 0.310%, 9/15/2015(b)		24,696,181
	2,550,000	Capital One Multi-Asset Execution Trust, Series 2006-C2, Class C, 0.530%, 6/16/2014(b)		2,482,335
	29,215,000	Chase Issuance Trust, Series 2007-B1, Class B1, 0.480%, 4/15/2019(b)		26,730,726
	4,000,000	Citibank Credit Card Issuance Trust, Series 2008-A1, Class A1, 5.350%, 2/07/2020		4,367,546
	29,395,000	Citibank Credit Card Issuance Trust, Series 2008-C6, Class C6, 6.300%, 6/20/2014		31,100,551
	19,600,000	GE Capital Credit Card Master Note Trust, Series 2009-4, Class B, 5.390%, 11/15/2017, 144A		19,623,573
	10,000,000	MBNA Credit Card Master Note Trust, Series 2002-C1, Class C1, 6.800%, 7/15/2014		10,623,847
	14,780,000	MBNA Credit Card Master Note Trust, Series 2004-B1, Class B1, 4.450%, 8/15/2016		15,133,867
				144,704,030
		ABS Other — 2.4%
	15,998,819	CIT Equipment Collateral, Series 2008-VT1, Class A3, 6.590%, 12/22/2014		16,406,912
	1,700,000	Community Program Loan Trust, Series 1987-A, Class A5, 4.500%, 4/01/2029		1,539,581
	69,893,722	Marriott Vacation Club Owner Trust, Series 2009-2A, Class A, 4.809%, 7/20/2031, 144A		70,032,056
	27,329,233	Sierra Receivables Funding Co., Series 2009-3A, Class A1, 7.620%, 7/20/2026, 144A		27,648,135
	65,832,508	SVO VOI Mortgage Corp., Series 2009-BA, Class NT, 5.810%, 12/20/2028, 144A		66,377,305
	45,620,871	Trinity Rail Leasing LP, Series 2009-1A, Class A, 6.657%, 11/16/2039, 144A		44,697,673
				226,701,662

Principal Amount (‡)		Description	Value (†)
		Airlines — 3.0%
$	17,225,538	American Airlines Pass Through Trust, Series 2009-1A, 10.375%, 7/02/2019	$	19,938,560
	659,643	Continental Airlines Pass Through Trust, Series 1997-1, Class A, 7.461%, 10/01/2016		651,398
	990,361	Continental Airlines Pass Through Trust, Series 1998-1, Class A, 6.648%, 3/15/2019		992,341
	1,006,573	Continental Airlines Pass Through Trust, Series 1999-1, Class A, 6.545%, 8/02/2020		1,026,705
	10,689,316	Continental Airlines Pass Through Trust, Series 2000-1, Class A-1, 8.048%, 5/01/2022		10,849,656
	1,853,823	Continental Airlines Pass Through Trust, Series 2000-2, Class A-1, 7.707%, 10/02/2022		1,853,823
	2,661,607	Continental Airlines Pass Through Trust, Series 2001-1, Class A-1, 6.703%, 12/15/2022		2,475,294
	61,260,000	Continental Airlines Pass Through Trust, Series 2007-1, Class A, 5.983%, 10/19/2023		60,187,950
	12,208,000	Continental Airlines Pass Through Trust, Series 2007-1, Class B, 6.903%, 4/19/2022		11,109,280
	29,393,585	Continental Airlines Pass Through Trust, Series 2009-1, Class A, 9.000%, 7/08/2016		31,745,072
	22,105,000	Continental Airlines Pass Through Trust, Series 2009-2, Class A, 7.250%, 11/10/2019		23,652,350
	4,300,000	Delta Air Lines, Inc., Series 2001-1, Class A-2, 7.111%, 3/18/2013		4,493,500
	2,171,631	Delta Air Lines, Inc., Series 2007-1, Class A, 6.821%, 2/10/2024		2,171,631
	17,287,761	Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 2/10/2024		15,904,740
	41,530,000	Delta Air Lines, Inc., Series A, 7.750%, 12/17/2019		43,606,500
	5,000,000	Delta Air Lines, Inc., Series B, 9.750%, 12/17/2016		5,150,000
	10,186,641	Northwest Airlines, Inc., Series 2007-1, Class B, 8.028%, 11/01/2017		9,318,434
	8,115,000	Qantas Airways Ltd., 6.050%, 4/15/2016, 144A		8,385,603
	28,073,356	UAL Pass Through Trust, Series 2007-1, Class A, 6.636%, 1/02/2024		25,967,854
	8,230,000	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		8,847,250
				288,327,941
		Automotive — 0.6%
	33,885,000	Cummins, Inc., 5.650%, 3/01/2098		20,948,080
	5,389,000	Cummins, Inc., 6.750%, 2/15/2027		5,143,655
	665,000	Cummins, Inc., 7.125%, 3/01/2028		657,328
	1,990,000	Ford Motor Co., 6.375%, 2/01/2029		1,616,875
	130,000	Ford Motor Co., 6.500%, 8/01/2018		123,500
	260,000	Ford Motor Co., 6.625%, 2/15/2028		218,400
	5,185,000	Ford Motor Co., 6.625%, 10/01/2028		4,355,400
	8,730,000	Ford Motor Co., 7.450%, 7/16/2031		8,249,850

See accompanying notes to financial statements.

5

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Automotive — continued
$	245,000	Ford Motor Co., 7.500%, 8/01/2026	$	217,437
	345,000	Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		356,984
	2,215,000	Ford Motor Credit Co. LLC, 7.250%, 10/25/2011		2,290,069
	4,640,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		4,888,811
	935,000	Ford Motor Credit Co. LLC, 8.625%, 11/01/2010		957,691
	2,135,000	Ford Motor Credit Co. LLC, 9.750%, 9/15/2010		2,186,189
				52,210,269
		Banking — 8.8%
	47,100,000	AgriBank FCB, 9.125%, 7/15/2019, 144A(c)		53,583,786
	7,450,000	American Express Centurion Bank, Series BKN1, 6.000%, 9/13/2017		7,995,720
	36,659,000	Associates Corp. of North America, 6.950%, 11/01/2018		38,632,940
	2,595,000	BAC Capital Trust VI, 5.625%, 3/08/2035		2,142,632
	3,690,000	Bank of America Corp., 5.420%, 3/15/2017		3,646,628
	10,020,000	Bank of America Corp., 6.000%, 9/01/2017		10,421,061
	17,625,000	Bank of America NA, 5.300%, 3/15/2017		17,447,005
	3,120,000,000	Barclays Financial LLC, 4.060%, 9/16/2010, (KRW), 144A		2,762,934
	3,500,000,000	Barclays Financial LLC, 4.460%, 9/23/2010, (KRW), 144A		3,105,264
	2,220,000	Bear Stearns Cos., Inc. (The), 4.650%, 7/02/2018		2,164,968
	975,000	Bear Stearns Cos., Inc. (The), 5.300%, 10/30/2015		1,037,973
	2,150,000	Bear Stearns Cos., Inc. (The), 6.400%, 10/02/2017		2,375,139
	12,745,000	Bear Stearns Cos., Inc. (The), 7.250%, 2/01/2018		14,729,269
	16,371,250,000	BNP Paribas SA, EMTN, Zero Coupon, 6/13/2011, (IDR), 144A		1,637,035
	19,200,000	Capital One Financial Corp., 6.150%, 9/01/2016		19,919,501
	9,860,000	Citibank NA, 15.000%, 7/02/2010, (BRL), 144A		5,619,094
	10,400,000	Citigroup, Inc., 5.000%, 9/15/2014		10,385,346
	1,325,000	Citigroup, Inc., 5.850%, 12/11/2034		1,203,113
	2,800,000	Citigroup, Inc., 5.875%, 2/22/2033		2,415,969
	20,308,000	Citigroup, Inc., 6.125%, 5/15/2018		20,750,491
	8,895,000	Citigroup, Inc., 6.125%, 8/25/2036		7,762,106
	74,265,000	Citigroup, Inc., 6.375%, 8/12/2014		79,337,522

Principal Amount (‡)	Description	Value (†)
	Banking — continued
2,450,000	Citigroup, Inc., EMTN, (fixed rate to 11/30/2012, variable rate thereafter), 3.625%, 11/30/2017, (EUR)	$	3,047,821
80,235,000	Citigroup, Inc., MTN, 5.500%, 10/15/2014		83,035,683
7,110,000	First Niagara Finance Group, Inc., 6.750%, 3/19/2020		7,185,039
1,200,000	Goldman Sachs Group, Inc. (The), 6.450%, 5/01/2036		1,160,316
99,020,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		98,895,631
6,790,000	Goldman Sachs Group, Inc. (The), GMTN, 5.375%, 3/15/2020		6,727,199
700,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		659,073
18,000,000	JPMorgan Chase & Co., Zero Coupon, 5/17/2010, (BRL), 144A		9,873,759
17,920,000,000	JPMorgan Chase & Co., Zero Coupon, 3/28/2011, (IDR), 144A		1,837,984
68,827,366,920	JPMorgan Chase & Co., Zero Coupon, 4/12/2012, (IDR), 144A		6,536,690
22,683,264,000	JPMorgan Chase & Co., EMTN, Zero Coupon, 3/28/2011, (IDR), 144A		2,326,533
344,497,150,000	JPMorgan Chase Bank NA, EMTN, Zero Coupon, 10/17/2011, (IDR), 144A		34,292,601
24,124,936,500	JPMorgan Chase London, EMTN, Zero Coupon, 10/21/2010, (IDR), 144A		2,555,793
100,000	Keybank NA, 6.950%, 2/01/2028		90,056
6,620,000	Merrill Lynch & Co., Inc., 5.700%, 5/02/2017		6,580,247
70,800,000	Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		65,142,514
10,000,000	Merrill Lynch & Co., Inc., 10.710%, 3/08/2017, (BRL)		5,482,610
3,200,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		4,115,227
11,895,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018		12,818,873
41,000,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.050%, 6/01/2034		35,251,431
2,710,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.400%, 8/28/2017		2,856,139
51,525,000	Morgan Stanley, 4.750%, 4/01/2014		52,610,992
1,510,000	Morgan Stanley, EMTN, 5.450%, 1/09/2017		1,530,998
2,850,000	Morgan Stanley, GMTN, 5.125%, 11/30/2015, (GBP)		4,431,645
5,300,000	Morgan Stanley, Series F, GMTN, 6.625%, 4/01/2018		5,652,869
17,500,000	Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		17,897,932
4,400,000	Morgan Stanley, Series F, MTN, 5.625%, 9/23/2019		4,384,486
9,910,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		10,181,237
2,875,000	National City Bank of Indiana, 4.250%, 7/01/2018		2,706,669

See accompanying notes to financial statements.

6

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Banking — continued
$	1,325,000	National City Bank, MTN, 5.800%, 6/07/2017	$	1,378,374
	9,826,000	National City Corp., 6.875%, 5/15/2019		10,918,052
	3,400,000	Standard Chartered Bank, 6.400%, 9/26/2017, 144A		3,599,655
	18,250,000	Standard Chartered PLC, 5.500%, 11/18/2014, 144A		19,623,586
				834,463,210
		Brokerage — 0.6%
	54,955,000	Jefferies Group, Inc., 8.500%, 7/15/2019		60,963,945
		Building Materials — 1.0%
	6,785,000	Masco Corp., 4.800%, 6/15/2015		6,545,815
	11,180,000	Masco Corp., 5.850%, 3/15/2017		10,896,553
	6,760,000	Masco Corp., 6.125%, 10/03/2016		6,740,849
	2,260,000	Masco Corp., 6.500%, 8/15/2032		1,939,747
	1,925,000	Masco Corp., 7.750%, 8/01/2029		1,838,383
	24,925,000	Owens Corning, Inc., 6.500%, 12/01/2016		26,378,501
	41,680,000	Owens Corning, Inc., 7.000%, 12/01/2036		40,837,481
	1,060,000	USG Corp., 6.300%, 11/15/2016		948,700
				96,126,029
		Chemicals — 1.3%
	35,520,000	Chevron Phillips Chemical Co. LLC, 8.250%, 6/15/2019, 144A		42,404,380
	3,545,000	Cytec Industries, Inc., 6.000%, 10/01/2015		3,813,208
	2,400,000	Methanex Corp., 6.000%, 8/15/2015		2,168,630
	68,560,000	PPG Industries, Inc., 6.650%, 3/15/2018		76,319,209
				124,705,427
		Collateralized Mortgage Obligations — 0.0%
	115,908	Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR12, Class 1A1, 5.886%, 9/25/2036(b)		84,707
		Commercial Mortgage-Backed Securities — 3.5%
	2,970,353	Bank of America-First Union NB Commercial Mortgage, Series 2001-3, Class A2, 5.464%, 4/11/2037		3,082,050
	8,100,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044		7,804,252
	62,975,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C3, Class A4, 5.912%, 6/15/2039(b)		56,727,483
	35,130,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A4, 5.998%, 9/15/2039(b)		31,952,625

Principal Amount (‡)		Description	Value (†)
		Commercial Mortgage-Backed Securities — continued
$	5,110,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040	$	4,579,114
	58,950,000	Crown Castle Towers LLC, 6.113%, 1/15/2040		61,664,058
	24,057,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4, 5.736%, 12/10/2049		23,384,657
	15,360,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, 3/10/2039		14,937,576
	20,220,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP6, Class A4, 5.475%, 4/15/2043		20,754,200
	8,930,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A4, 6.064%, 4/15/2045(b)		9,219,126
	60,634,099	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class A4, 6.006%, 6/15/2049(b)		58,141,898
	21,993,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3, 5.420%, 1/15/2049		21,187,014
	3,200,000	LB-UBS Commercial Mortgage Trust, Series 2006-C4, Class A4, 6.080%, 6/15/2038(b)		3,362,148
	1,340,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4, 5.485%, 3/12/2051		1,228,510
	12,700,000	Morgan Stanley Capital I, Series 2008-T29, Class A4, 6.458%, 1/11/2043(b)		13,377,668
	3,700,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.308%, 11/15/2048		3,673,467
				335,075,846
		Construction Machinery — 0.3%
	24,153,000	Case New Holland, Inc., 7.750%, 9/01/2013, 144A		25,058,737
	6,935,000	Toro Co., 6.625%, 5/01/2037(c)		6,119,923
				31,178,660
		Consumer Cyclical Services — 0.9%
	15,350,000	Western Union Co. (The), 5.930%, 10/01/2016		16,975,412
	40,000,000	Western Union Co. (The), 6.500%, 2/26/2014		45,109,840
	19,330,000	Western Union. (The), 6.200%, 11/17/2036		19,658,107
				81,743,359
		Consumer Products — 0.2%
	7,620,000	Hasbro, Inc., 6.600%, 7/15/2028		7,748,877
	12,010,000	Snap-on, Inc., 6.700%, 3/01/2019		12,743,955
	1,335,000	Whirlpool Corp., MTN, 8.000%, 5/01/2012		1,467,245
	800,000	Whirlpool Corp., MTN, 8.600%, 5/01/2014		928,430
				22,888,507

See accompanying notes to financial statements.

7

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Distributors — 0.9%
$	10,000,000	EQT Corp., 8.125%, 6/01/2019	$	11,880,390
	61,345,000	Equitable Resources, Inc., 6.500%, 4/01/2018		66,157,577
	5,865,000	ONEOK, Inc., 6.000%, 6/15/2035		5,595,990
				83,633,957
		Diversified Manufacturing — 0.9%
	1,425,000	Ingersoll-Rand Global Holding Co. Ltd., 6.875%, 8/15/2018		1,602,491
	2,875,000	Textron Financial Corp., 5.400%, 4/28/2013		2,954,008
	1,207,000	Textron Financial Corp., Series E, MTN, 5.125%, 8/15/2014		1,148,728
	19,200,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		25,581,104
	18,895,000	Textron, Inc., 6.200%, 3/15/2015		20,012,923
	13,540,000	Textron, Inc., 7.250%, 10/01/2019		14,628,480
	11,280,000	Textron, Inc., EMTN, 6.625%, 4/07/2020, (GBP)		15,833,585
				81,761,319
		Electric — 3.2%
	40,400,000	AmerenEnergy Generating Co., Series H, 7.000%, 4/15/2018		43,119,970
	500,000	Baltimore Gas & Electric Co., 5.200%, 6/15/2033		440,719
	12,021,175	Bruce Mansfield Unit, 6.850%, 6/01/2034(c)		12,194,761
	17,815,000	Cleveland Electric Illuminating Co. (The), 5.700%, 4/01/2017		18,614,092
	26,290,000	Cleveland Electric Illuminating Co. (The), 5.950%, 12/15/2036		25,213,477
	895,000	Commonwealth Edison Co., 4.700%, 4/15/2015		941,560
	5,500,000	Empresa Nacional de Electricidad SA (Endesa-Chile), 7.875%, 2/01/2027		6,029,749
	1,000,000	Empresa Nacional de Electricidad SA (Endesa-Chile), 8.350%, 8/01/2013		1,140,088
	3,681,000	Exelon Corp., 4.900%, 6/15/2015		3,836,471
	47,570,000	Illinois Power Co., 6.250%, 4/01/2018		50,694,588
	1,905,000	ITC Holdings Corp., 5.875%, 9/30/2016, 144A		1,987,429
	2,830,000	ITC Holdings Corp., 6.375%, 9/30/2036, 144A		2,832,836
	9,305,213	Mackinaw Power LLC, 6.296%, 10/31/2023, 144A		9,299,164
	14,090,000	NiSource Finance Corp., 6.125%, 3/01/2022		14,700,590
	24,635,000	NiSource Finance Corp., 6.400%, 3/15/2018		26,413,918
	22,085,000	NiSource Finance Corp., 6.800%, 1/15/2019		24,009,001
	1,565,000	Ohio Edison Co., 6.875%, 7/15/2036		1,686,619

Principal Amount (‡)		Description	Value (†)
		Electric — continued
$	33,250	Quezon Power Philippines Co., 8.860%, 6/15/2017	$	33,749
	51,115,000	Southwestern Electric Power Co., 6.450%, 1/15/2019		55,069,563
	500,000	SP Powerassets Ltd., EMTN, 3.730%, 10/22/2010, (SGD)		362,645
	7,165,000	Toledo Edison Co., 6.150%, 5/15/2037		7,223,996
	1,075,000	White Pine Hydro LLC, 6.310%, 7/10/2017(c)		1,049,254
	1,600,000	White Pine Hydro LLC, 6.960%, 7/10/2037(c)		1,435,648
				308,329,887
		Entertainment — 0.1%
	4,300,000	Time Warner, Inc., 6.625%, 5/15/2029		4,533,838
	505,000	Time Warner, Inc., 7.625%, 4/15/2031		576,771
	330,000	Time Warner, Inc., 7.700%, 5/01/2032		380,877
	3,695,000	Viacom, Inc., 6.125%, 10/05/2017		3,994,675
	2,655,000	Viacom, Inc., 6.250%, 4/30/2016		2,933,263
				12,419,424
		Financial Other — 0.8%
	45,970,000	Cantor Fitzgerald LP, 7.875%, 10/15/2019, 144A(c)		46,068,744
	27,500,000	National Life Insurance Co., 10.500%, 9/15/2039, 144A		29,435,752
				75,504,496
		Food & Beverage — 0.2%
	6,845,000	Anheuser-Busch Cos., Inc., 5.950%, 1/15/2033		6,802,055
	2,500,000	Cargill, Inc., EMTN, 5.375%, 3/02/2037, (GBP)		3,390,366
	1,525,000	Cia Brasileira de Bebidas, 8.750%, 9/15/2013		1,801,406
	8,630,000	Corn Products International, Inc., 6.625%, 4/15/2037		8,199,458
				20,193,285
		Government Guaranteed — 0.1%
	13,500,000	Instituto de Credito Oficial, MTN, 6.125%, 2/27/2014, (AUD)		12,060,259
		Government Owned - No Guarantee — 4.3%
	3,820,000	Abu Dhabi National Energy Co., 6.500%, 10/27/2036, 144A		3,570,386
	37,780,000	Abu Dhabi National Energy Co., 7.250%, 8/01/2018, 144A		40,722,835
	56,020,000	DP World Ltd., 6.850%, 7/02/2037, 144A		48,105,102
	101,460,000	Federal Home Loan Mortgage Corp., 2.125%, 9/21/2012		103,053,125
	132,280,000	Federal National Mortgage Association, 1.375%, 4/28/2011		133,342,473
	67,635,000	Federal National Mortgage Association, 1.625%, 4/15/2013		67,242,379

See accompanying notes to financial statements.

8

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Government Owned - No Guarantee — continued
$	15,500,000	Korea Gas Corp., 6.000%, 7/15/2014, 144A	$	16,858,312
	1,000,000	Telekom Malaysia Berhad, 7.875%, 8/01/2025, 144A		1,216,326
				414,110,938
		Government Sponsored — 0.9%
	67,635,000	Federal Home Loan Bank, 1.625%, 9/26/2012		67,849,809
	24,230,000	Queensland Treasury Corp., 7.125%, 9/18/2017, (NZD), 144A		18,190,112
				86,039,921
		Health Insurance — 0.8%
	5,455,000	CIGNA Corp., 6.150%, 11/15/2036		5,317,839
	1,355,000	CIGNA Corp., 6.350%, 3/15/2018		1,459,660
	1,603,000	CIGNA Corp., 7.875%, 5/15/2027		1,785,707
	3,650,000	CIGNA Corp., 8.500%, 5/01/2019		4,424,709
	1,200,000	CIGNA Corp., (Step to 8.080% on 1/15/2023), 8.300%, 1/15/2033(d)		1,345,069
	24,830,000	UnitedHealth Group, Inc., 5.800%, 3/15/2036		23,252,476
	565,000	UnitedHealth Group, Inc., 6.500%, 6/15/2037		574,367
	4,556,000	UnitedHealth Group, Inc., 6.625%, 11/15/2037		4,736,017
	2,567,000	UnitedHealth Group, Inc., 6.875%, 2/15/2038		2,736,165
	27,070,000	WellPoint, Inc., 6.375%, 6/15/2037		27,793,987
				73,425,996
		Healthcare — 1.4%
	7,860,000	Boston Scientific Corp., 6.000%, 1/15/2020		7,425,271
	7,535,000	Covidien International Finance SA, 6.000%, 10/15/2017		8,263,220
	17,795,000	Express Scripts, Inc., 6.250%, 6/15/2014		19,715,668
	10,730,000	Express Scripts, Inc., 7.250%, 6/15/2019		12,422,046
	9,480,000	HCA, Inc., 5.750%, 3/15/2014		8,946,750
	1,950,000	HCA, Inc., 6.250%, 2/15/2013		1,935,375
	3,930,000	HCA, Inc., 6.300%, 10/01/2012		3,925,088
	3,810,000	HCA, Inc., 6.375%, 1/15/2015		3,619,500
	4,015,000	HCA, Inc., 6.500%, 2/15/2016		3,809,231
	365,000	HCA, Inc., 6.750%, 7/15/2013		365,000
	3,000,000	HCA, Inc., 7.050%, 12/01/2027		2,565,000
	2,290,000	HCA, Inc., 7.190%, 11/15/2015		2,164,050

Principal Amount (‡)		Description	Value (†)
		Healthcare — continued
$	2,155,000	HCA, Inc., 7.500%, 12/15/2023	$	1,971,825
	1,310,000	HCA, Inc., 7.500%, 11/06/2033		1,139,700
	3,890,000	HCA, Inc., 7.690%, 6/15/2025		3,598,250
	4,255,000	HCA, Inc., 8.360%, 4/15/2024		4,031,613
	1,225,000	HCA, Inc., MTN, 7.580%, 9/15/2025		1,108,625
	3,135,000	HCA, Inc., MTN, 7.750%, 7/15/2036		2,758,800
	2,865,000	Hospira, Inc., 6.050%, 3/30/2017		3,077,216
	29,930,000	Medco Health Solutions, Inc., 7.125%, 3/15/2018		34,123,552
	2,305,000	Owens & Minor, Inc., 6.350%, 4/15/2016(c)		2,214,418
				129,180,198
		Home Construction — 0.4%
	3,685,000	D.R. Horton, Inc., 5.250%, 2/15/2015		3,556,025
	2,050,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015		2,080,750
	20,035,000	Masco Corp., 7.125%, 3/15/2020		20,238,936
	2,601,000	Pulte Group, Inc., 5.200%, 2/15/2015		2,493,709
	9,400,000	Pulte Group, Inc., 6.000%, 2/15/2035		7,285,000
	3,645,000	Pulte Group, Inc., 6.375%, 5/15/2033		2,916,000
	3,605,000	Toll Brothers Finance Corp., 5.150%, 5/15/2015		3,597,350
				42,167,770
		Independent Energy — 0.9%
	15,680,000	Anadarko Petroleum Corp., 6.450%, 9/15/2036		15,980,115
	1,940,000	Chesapeake Energy Corp., 6.250%, 1/15/2017, (EUR)		2,541,654
	600,000	Questar Market Resources, Inc., 6.050%, 9/01/2016		641,928
	48,640,000	Questar Market Resources, Inc., 6.800%, 4/01/2018		53,239,982
	3,585,000	Talisman Energy, Inc., 5.850%, 2/01/2037		3,436,499
	10,865,000	Talisman Energy, Inc., 6.250%, 2/01/2038		11,055,865
				86,896,043
		Integrated Energy — 0.3%
	21,450,000	Marathon Oil Corp., 7.500%, 2/15/2019		24,758,019
	1,186,207	PF Export Receivables Master Trust, Series A, 6.436%, 6/01/2015, 144A		1,209,931
				25,967,950

See accompanying notes to financial statements.

9

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Life Insurance — 0.4%
$	8,315,000	American International Group, Inc., Series G, MTN, 5.850%, 1/16/2018	$	7,726,015
	2,080,000	American International Group, Inc., Series MP, GMTN, 5.450%, 5/18/2017		1,913,484
	9,990,000	ASIF III Jersey Ltd., Series 2003-G, EMTN, 4.750%, 9/11/2013, (EUR)		13,267,476
	9,260,000	Mutual of Omaha Insurance Co., 6.800%, 6/15/2036, 144A		8,029,522
	4,835,000	Unum Group, 7.125%, 9/30/2016		5,255,819
				36,192,316
		Local Authorities — 0.5%
	220,000	Alberta Municipal Funding Corp., 5.700%, 9/01/2011, (CAD)		229,422
	7,070,000	Manitoba (Province of), GMTN, 6.375%, 9/01/2015, (NZD)		5,155,171
	23,219	Province of Alberta, 5.930%, 9/16/2016, (CAD)		25,441
	500,000	Province of Nova Scotia, 6.600%, 6/01/2027, (CAD)		594,585
	30,440,000	Quebec Province, Series QC, 6.750%, 11/09/2015, (NZD)		22,517,942
	19,325,000	Queensland Treasury Corp., Series 11G, 6.000%, 6/14/2011, (AUD)		17,966,997
				46,489,558
		Lodging — 0.4%
	10,690,000	Wyndham Worldwide Corp., 6.000%, 12/01/2016		10,589,984
	22,590,000	Wyndham Worldwide Corp., 7.375%, 3/01/2020		22,895,349
				33,485,333
		Media Cable — 1.7%
	10,978,000	Comcast Corp., 5.650%, 6/15/2035		10,163,575
	420,000	Comcast Corp., 6.450%, 3/15/2037		427,714
	3,235,000	Comcast Corp., 6.500%, 11/15/2035		3,313,533
	32,715,000	Comcast Corp., 6.950%, 8/15/2037		35,391,676
	4,100,000	Cox Communications, Inc., Class A, 6.250%, 6/01/2018, 144A		4,360,374
	18,220,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		18,467,203
	4,190,000	Time Warner Cable, Inc., 5.850%, 5/01/2017		4,486,447
	79,880,000	Time Warner Cable, Inc., 6.750%, 7/01/2018		89,254,797
	73,560	Virgin Media Finance PLC, 9.750%, 4/15/2014, (GBP)		115,255
				165,980,574
		Media Non-Cable — 0.3%
	4,580,000	News America Holdings, 8.150%, 10/17/2036		5,334,839
	7,700,000	News America, Inc., 6.150%, 3/01/2037		7,589,898

Principal Amount (‡)		Description	Value (†)
		Media Non-Cable — continued
$	4,095,000	News America, Inc., 6.200%, 12/15/2034	$	4,084,275
	8,890,000	News America, Inc., 6.400%, 12/15/2035		9,078,041
				26,087,053
		Metals & Mining — 0.6%
	5,170,000	Alcoa, Inc., 5.870%, 2/23/2022		4,750,356
	5,625,000	Alcoa, Inc., 5.950%, 2/01/2037		4,612,089
	5,930,000	Alcoa, Inc., 6.750%, 1/15/2028		5,485,369
	3,250,000	Rio Tinto Alcan, Inc., 5.750%, 6/01/2035		3,182,056
	1,500,000	Teck Cominco Ltd., 7.000%, 9/15/2012		1,614,375
	1,985,000	United States Steel Corp., 6.050%, 6/01/2017		1,910,563
	4,712,000	United States Steel Corp., 6.650%, 6/01/2037		4,052,320
	31,890,000	United States Steel Corp., 7.000%, 2/01/2018		31,411,650
	3,735,000	Vale Overseas Ltd., 6.875%, 11/21/2036		3,864,044
				60,882,822
		Mortgage Related — 0.0%
	139,523	FHLMC, 5.000%, 12/01/2031		145,180
	23,793	FNMA, 6.000%, 7/01/2029		25,894
				171,074
		Non-Captive Consumer — 2.1%
	5,000,000	American General Finance Corp., Series I, MTN, 5.400%, 12/01/2015		4,310,600
	88,895,000	American General Finance Corp., Series J, MTN, 6.900%, 12/15/2017		77,863,931
	25,000,000	HSBC Finance Corp., 6.375%, 11/27/2012		27,262,250
	63,775(†††)	SLM Corp., 6.000%, 12/15/2043		1,135,035
	6,200,000	SLM Corp., EMTN, 4.750%, 3/17/2014, (EUR)		7,766,915
	6,480,000	SLM Corp., MTN, 5.050%, 11/14/2014		5,996,495
	355,000	SLM Corp., MTN, 5.125%, 8/27/2012		352,746
	655,000	SLM Corp., MTN, 8.000%, 3/25/2020		637,812
	4,900,000	SLM Corp., Series A, MTN, 0.549%, 1/27/2014(b)		4,239,318
	155,000	SLM Corp., Series A, MTN, 4.500%, 7/26/2010		155,713
	9,425,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		9,004,259
	6,690,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		6,091,519
	2,000,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		1,650,232

See accompanying notes to financial statements.

10

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Non-Captive Consumer — continued
$	6,275,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013	$	6,197,485
	5,485,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		5,195,332
	300,000	SLM Corp., Series A, MTN, 5.400%, 10/25/2011		302,815
	690,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		532,421
	7,590,000	SLM Corp., Series A, MTN, 6.500%, 6/15/2010, (NZD)(c)		5,392,596
	31,335,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		31,690,997
				195,778,471
		Non-Captive Diversified — 2.9%
	4,602,472	CIT Group, Inc., 7.000%, 5/01/2013		4,475,904
	6,903,711	CIT Group, Inc., 7.000%, 5/01/2014		6,524,007
	6,903,710	CIT Group, Inc., 7.000%, 5/01/2015		6,437,710
	11,506,193	CIT Group, Inc., 7.000%, 5/01/2016		10,614,463
	16,108,672	CIT Group, Inc., 7.000%, 5/01/2017		14,860,250
	36,465,000	GATX Corp., 4.750%, 10/01/2012		38,062,349
	7,515,000	General Electric Capital Australia Funding Pty Ltd., EMTN, 8.000%, 2/13/2012, (AUD)		7,133,968
	7,730,000	General Electric Capital Australia Funding Pty, MTN, 6.000%, 5/15/2013, (AUD)		6,861,033
	1,915,000	General Electric Capital Australia Funding Pty, MTN, 6.000%, 3/15/2019, (AUD)		1,518,708
	990,000	General Electric Capital Corp., 5.625%, 5/01/2018		1,034,562
	915,000	General Electric Capital Corp., EMTN, 9.000%, 1/04/2011, (NZD)		672,216
	4,775,000	General Electric Capital Corp., MTN, 5.875%, 1/14/2038		4,539,826
	14,535,000	General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016, (NZD)		10,354,857
	6,200,000	General Electric Capital Corp., Series A, GMTN, 2.960%, 5/18/2012, (SGD)		4,442,368
	13,400,000	General Electric Capital Corp., Series A, GMTN, 3.485%, 3/08/2012, (SGD)		9,698,058
	37,650,000	General Electric Capital Corp., Series A, GMTN, 7.625%, 12/10/2014, (NZD)		28,254,864
	10,470,000	General Electric Capital Corp., Series A, MTN, 0.551%, 5/13/2024(b)		8,847,956
	17,060,000	General Electric Capital Corp., Series A, MTN, 4.875%, 3/04/2015		17,927,023
	27,137,000	General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015, (NZD)		19,303,482
	1,345,000	GMAC, Inc., 6.000%, 12/15/2011		1,345,161
	1,310,000	GMAC, Inc., 6.625%, 5/15/2012		1,317,722
	1,670,000	GMAC, Inc., 6.750%, 12/01/2014		1,659,484

Principal Amount (‡)		Description	Value (†)
		Non-Captive Diversified — continued
$	1,500,000	GMAC, Inc., 6.875%, 9/15/2011	$	1,520,859
	400,000	GMAC, Inc., 6.875%, 8/28/2012		404,520
	1,210,000	GMAC, Inc., 7.000%, 2/01/2012		1,229,107
	3,142,000	GMAC, Inc., 7.500%, 12/31/2013		3,196,985
	5,664,000	GMAC, Inc., 8.000%, 12/31/2018		5,579,040
	2,335,000	GMAC, Inc., 8.000%, 11/01/2031		2,220,221
	5,045,000	GMAC, Inc., EMTN, 5.375%, 6/06/2011, (EUR)		6,779,961
	380,000	GMAC, Inc., EMTN, 5.750%, 9/27/2010, (EUR)		513,247
	2,930,000	International Lease Finance Corp., 5.000%, 4/15/2010		2,930,267
	2,285,000	International Lease Finance Corp., 5.000%, 9/15/2012		2,195,810
	6,660,000	International Lease Finance Corp., 5.125%, 11/01/2010		6,667,879
	16,795,000	International Lease Finance Corp., 6.375%, 3/25/2013		16,413,031
	655,000	International Lease Finance Corp., Series R, MTN, 5.550%, 9/05/2012		637,897
	2,755,000	International Lease Finance Corp., Series R, MTN, 5.625%, 9/15/2010		2,774,437
	1,505,000	International Lease Finance Corp., Series R, MTN, 5.625%, 9/20/2013		1,419,626
	1,660,000	International Lease Finance Corp., Series R, MTN, 5.650%, 6/01/2014		1,538,501
	5,225,000	iStar Financial, Inc., 5.150%, 3/01/2012		4,571,875
	1,000,000	iStar Financial, Inc., 5.375%, 4/15/2010		997,500
	330,000	iStar Financial, Inc., 5.500%, 6/15/2012		285,862
	3,700,000	iStar Financial, Inc., 5.650%, 9/15/2011		3,376,250
	765,000	iStar Financial, Inc., 5.800%, 3/15/2011		725,794
	385,000	iStar Financial, Inc., 5.850%, 3/15/2017		284,900
	1,605,000	iStar Financial, Inc., 5.875%, 3/15/2016		1,203,750
	745,000	iStar Financial, Inc., 6.050%, 4/15/2015		547,575
	535,000	iStar Financial, Inc., 8.625%, 6/01/2013		457,425
	335,000	iStar Financial, Inc., Series B, 5.125%, 4/01/2011		301,919
	254,000	iStar Financial, Inc., Series B, 5.700%, 3/01/2014		201,930
	5,680,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		4,544,000
				279,406,139

See accompanying notes to financial statements.

11

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Oil Field Services — 1.2%
$	6,095,000	Nabors Industries, Inc., 6.150%, 2/15/2018	$	6,493,046
	52,565,000	Nabors Industries, Inc., 9.250%, 1/15/2019		65,384,500
	23,846,000	Rowan Cos., Inc., 7.875%, 8/01/2019		27,311,277
	600,000	Transocean Ltd., 7.375%, 4/15/2018		702,652
	5,905,000	Weatherford International Ltd., 6.500%, 8/01/2036		5,867,474
	1,680,000	Weatherford International Ltd., 6.800%, 6/15/2037		1,724,133
	5,405,000	Weatherford International Ltd., 7.000%, 3/15/2038		5,714,696
				113,197,778
		Paper — 1.7%
	4,460,000	Celulosa Arauco y Constitucion SA, 7.250%, 7/29/2019		4,792,582
	575,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		569,250
	2,460,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		2,447,700
	285,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		285,000
	1,340,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		1,420,400
	2,280,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		2,473,800
	6,295,000	International Paper Co., 5.250%, 4/01/2016		6,336,245
	92,495,000	International Paper Co., 7.950%, 6/15/2018		108,065,701
	7,777,000	International Paper Co., 8.700%, 6/15/2038		9,607,278
	5,385,000	Mead Corp. (The), 7.550%, 3/01/2047		5,116,461
	22,860,000	Weyerhaeuser Co., 6.875%, 12/15/2033		20,325,512
				161,439,929
		Pharmaceuticals — 1.1%
	2,280,000	Elan Finance PLC/Elan Finance Corp., 8.875%, 12/01/2013		2,348,400
	90,000,000	Roche Holdings, Inc., 5.000%, 3/01/2014, 144A		97,211,610
	500,000	Schering-Plough Corp., 5.300%, 12/01/2013		555,422
				100,115,432
		Pipelines — 3.4%
	5,350,000	CenterPoint Energy Resources Corp., 6.250%, 2/01/2037		5,202,436
	2,010,000	DCP Midstream LP, 6.450%, 11/03/2036, 144A		1,992,961
	2,470,000	El Paso Corp., 6.950%, 6/01/2028		2,230,697
	1,000,000	El Paso Corp., 12.000%, 12/12/2013		1,170,000
	540,000	Energy Transfer Partners LP, 6.125%, 2/15/2017		580,360

Principal Amount (‡)		Description	Value (†)
		Pipelines — continued
$	1,605,000	Energy Transfer Partners LP, 6.625%, 10/15/2036	$	1,615,977
	9,455,000	Enterprise Products Operating LLP, 6.300%, 9/15/2017		10,386,138
	3,400,000	Florida Gas Transmission Co., 7.900%, 5/15/2019, 144A		4,050,872
	4,390,000	Kinder Morgan Energy Partners LP, 5.800%, 3/15/2035		4,126,029
	82,600,000	Kinder Morgan Energy Partners LP, 5.950%, 2/15/2018		88,592,217
	310,000	Kinder Morgan Finance Co., 5.700%, 1/05/2016		303,800
	32,448,172	Maritimes & Northeast Pipeline LLC, 7.500%, 5/31/2014, 144A(c)		35,495,704
	9,080,000	NGPL PipeCo LLC, 6.514%, 12/15/2012, 144A		9,961,904
	31,430,000	NGPL PipeCo LLC, 7.119%, 12/15/2017, 144A		35,246,388
	4,665,000	ONEOK Partners LP, 6.650%, 10/01/2036		4,863,491
	10,115,000	Panhandle Eastern Pipeline Co., 6.200%, 11/01/2017		10,738,883
	48,630,000	Panhandle Eastern Pipeline Co., 7.000%, 6/15/2018		53,948,517
	1,435,000	Panhandle Eastern Pipeline Co., 8.125%, 6/01/2019		1,671,086
	2,130,000	Plains All American Pipeline LP, 6.125%, 1/15/2017		2,287,271
	16,025,000	Plains All American Pipeline LP, 6.500%, 5/01/2018		17,460,071
	4,595,000	Plains All American Pipeline LP, 6.650%, 1/15/2037		4,764,739
	4,215,000	Southern Natural Gas Co., 5.900%, 4/01/2017, 144A		4,390,214
	20,000,000	Texas Eastern Transmission LP, 6.000%, 9/15/2017, 144A		21,636,800
				322,716,555
		Property & Casualty Insurance — 0.8%
	3,150,000	Hanover Insurance Group, Inc., 7.500%, 3/01/2020		3,230,798
	3,460,000	Marsh & McLennan Cos., Inc., 5.375%, 7/15/2014		3,579,017
	12,652,000	Marsh & McLennan Cos., Inc., 5.750%, 9/15/2015		13,398,354
	31,010,000	Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033		27,314,414
	965,000	MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 14.000%, 1/15/2033, 144A		656,200
	2,950,000	White Mountains RE Group, 6.375%, 3/20/2017, 144A		2,876,052
	4,830,000	Willis North America, Inc., 6.200%, 3/28/2017		4,893,234
	13,815,000	Willis North America, Inc., 7.000%, 9/29/2019		14,466,875
	2,260,000	XL Capital Ltd., 6.250%, 5/15/2027		2,130,879
	1,495,000	XL Capital Ltd., 6.375%, 11/15/2024		1,423,339
				73,969,162

See accompanying notes to financial statements.

12

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Railroads — 0.4%
$	2,390,000	Canadian Pacific Railway Co., 5.750%, 3/15/2033	$	2,254,432
	10,003,000	Canadian Pacific Railway Co., 5.950%, 5/15/2037		9,667,039
	10,000,000	Canadian Pacific Railway Co., 7.250%, 5/15/2019		11,360,410
	5,000,000	Canadian Pacific Railway Ltd., MTN, 4.900%, 6/15/2010, (CAD), 144A		4,959,681
	5,670,000	CSX Corp., MTN, 6.000%, 10/01/2036		5,632,737
	243,000	Missouri Pacific Railroad Co., 4.750%, 1/01/2030(c)		194,400
	1,738,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(c)		1,042,800
	195,000	Missouri Pacific Railroad Co., Series A, 4.750%, 1/01/2020(c)		183,105
				35,294,604
		Refining — 0.0%
	3,740,000	Valero Energy Corp., 6.625%, 6/15/2037		3,556,949
		REITs — 2.7%
	12,510,000	Camden Property Trust, 5.000%, 6/15/2015		12,461,811
	16,850,000	Camden Property Trust, 5.700%, 5/15/2017		16,569,785
	1,153,000	Colonial Realty LP, 4.800%, 4/01/2011		1,135,521
	4,230,000	Duke Realty LP, 5.950%, 2/15/2017		4,158,746
	20,000,000	Duke Realty LP, 6.500%, 1/15/2018		19,999,040
	5,000,000	Equity One, Inc., 6.000%, 9/15/2017		4,839,965
	1,010,000	ERP Operating LP, 5.125%, 3/15/2016		1,038,669
	1,800,000	ERP Operating LP, 5.375%, 8/01/2016		1,862,411
	2,420,000	ERP Operating LP, 5.750%, 6/15/2017		2,501,235
	1,960,000	Federal Realty Investment Trust, 5.650%, 6/01/2016		1,958,667
	10,500,000	First Industrial LP, 5.950%, 5/15/2017		8,441,097
	21,270,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		20,330,419
	11,552,000	Highwoods Properties, Inc., 7.500%, 4/15/2018		11,723,894
	3,957,000	ProLogis, 5.625%, 11/15/2015		3,923,148
	11,422,000	ProLogis, 5.625%, 11/15/2016		11,048,649
	11,126,000	ProLogis, 5.750%, 4/01/2016		10,898,874
	9,909,000	ProLogis, 6.625%, 5/15/2018		9,847,039
	19,280,000	ProLogis, 7.375%, 10/30/2019		19,791,344
	32,075,000	Realty Income Corp., 6.750%, 8/15/2019		33,472,091

Principal Amount (‡)		Description	Value (†)
		REITs — continued
$	2,480,000	Simon Property Group LP, 5.250%, 12/01/2016	$	2,457,645
	2,040,000	Simon Property Group LP, 5.300%, 5/30/2013		2,158,565
	12,475,000	Simon Property Group LP, 5.750%, 12/01/2015		13,197,265
	1,930,000	Simon Property Group LP, 5.875%, 3/01/2017		1,994,118
	4,155,000	Simon Property Group LP, 6.100%, 5/01/2016		4,374,139
	36,980,000	WEA Finance LLC/WT Finance Australia Property Ltd., 6.750%, 9/02/2019, 144A		39,460,766
				259,644,903
		Restaurants — 0.1%
	10,545,000	Darden Restaurants, Inc., 6.000%, 8/15/2035		9,930,364
	1,000,000	McDonald’s Corp., EMTN, 3.628%, 10/10/2010, (SGD)		724,099
				10,654,463
		Retailers — 0.7%
	3,765,000	Home Depot, Inc. (The), 5.875%, 12/16/2036		3,653,658
	8,170,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		8,180,212
	16,260,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		15,142,125
	12,000	J.C. Penney Corp., Inc., 7.125%, 11/15/2023		12,105
	8,845,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		8,004,725
	14,338,000	Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037		13,190,960
	10,695,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		9,625,500
	2,750,000	Macy’s Retail Holdings, Inc., 6.900%, 4/01/2029		2,612,500
	8,240,000	Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		8,346,914
				68,768,699
		Sovereigns — 2.1%
	438,500(††)	Mexican Fixed Rate Bonds, Series M-10, 7.250%, 12/15/2016, (MXN)		3,545,949
	4,200,900(††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		34,028,522
	380,000(††)	Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012, (MXN)		3,307,395
	29,165,000	New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010, (AUD)		27,230,310
	31,140,000	New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012, (AUD)		28,956,679
	18,320,000	New South Wales Treasury Corp., Series 17RG, 5.500%, 3/01/2017, (AUD)		16,379,298
	24,705,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		14,031,012
	6,285,000	Republic of Brazil, 12.500%, 1/05/2022, (BRL)		4,126,149
	53,700,000	Republic of Croatia, 6.750%, 11/05/2019, 144A		59,093,574

See accompanying notes to financial statements.

13

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)	Description	Value (†)
	Sovereigns — continued
793,200,000	Republic of Iceland, 7.250%, 5/17/2013, (ISK)	$	3,517,670
424,400,000	Republic of Iceland, 8.000%, 7/22/2011, (ISK)		1,888,894
1,344,917,000	Republic of Iceland, 13.750%, 12/10/2010, (ISK)		6,138,903
			202,244,355
	Supermarkets — 0.2%
4,220,000	American Stores Co., Series B, MTN, 7.100%, 3/20/2028		3,397,100
3,340,000	Kroger Co., 6.400%, 8/15/2017		3,713,305
1,900,000	New Albertson’s, Inc., 7.450%, 8/01/2029		1,605,500
1,000,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		757,500
11,100,000	Safeway, Inc., 6.350%, 8/15/2017		12,294,094
			21,767,499
	Supranational — 1.3%
196,541,400,000	European Investment Bank, EMTN, Zero Coupon, 4/24/2013, (IDR), 144A		17,642,180
28,694,000	European Investment Bank, EMTN, 7.000%, 1/18/2012, (NZD)		21,336,000
336,380,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 5/20/2013, (IDR)		28,896,999
418,960,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 9/23/2013, (IDR)		34,922,926
13,265,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		9,463,205
15,400,000	International Bank for Reconstruction & Development, 1.430%, 3/05/2014, (SGD)		10,706,421
429,100,000	International Bank for Reconstruction & Development, 9.500%, 5/27/2010, (ISK)		1,876,510
			124,844,241
	Technology — 3.4%
8,895,000	Agilent Technologies, Inc., 6.500%, 11/01/2017		9,610,238
4,700,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		3,313,500
2,035,000	Arrow Electronics, Inc., 6.875%, 7/01/2013		2,248,425
1,050,000	Arrow Electronics, Inc., 6.875%, 6/01/2018		1,122,398
9,000,000	Avnet, Inc., 5.875%, 3/15/2014		9,594,522
6,230,000	Avnet, Inc., 6.000%, 9/01/2015		6,560,582
1,540,000	Avnet, Inc., 6.625%, 9/15/2016		1,646,411
12,715,000	BMC Software, Inc., 7.250%, 6/01/2018(c)		13,958,514
13,750,000	Corning, Inc., 6.750%, 9/15/2013		15,261,235
1,480,000	Corning, Inc., 6.850%, 3/01/2029		1,540,711
58,825,000	Corning, Inc., 7.000%, 5/15/2024		63,030,517

Principal Amount (‡)		Description	Value (†)
		Technology — continued
$	7,650,000	Corning, Inc., 7.250%, 8/15/2036	$	8,196,294
	56,440,000	Dun & Bradstreet Corp. (The), 6.000%, 4/01/2013		60,969,931
	7,205,000	Equifax, Inc., 7.000%, 7/01/2037		7,694,796
	330,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016		292,050
	7,965,000	Intuit, Inc., 5.750%, 3/15/2017		8,418,639
	45,430,000	KLA-Tencor Corp., 6.900%, 5/01/2018		49,281,283
	4,680,000	Motorola, Inc., 5.220%, 10/01/2097		3,209,315
	7,559,000	Motorola, Inc., 6.500%, 9/01/2025		7,340,394
	6,150,000	Motorola, Inc., 6.500%, 11/15/2028		5,773,380
	10,100,000	Motorola, Inc., 6.625%, 11/15/2037		9,478,971
	1,625,000	Motorola, Inc., 8.000%, 11/01/2011		1,755,798
	2,628,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		2,877,124
	5,725,000	Tyco Electronics Group SA, 6.550%, 10/01/2017		6,298,565
	11,189,000	Xerox Capital Trust I, 8.000%, 2/01/2027		10,977,673
	782,000	Xerox Corp., 5.500%, 5/15/2012		829,469
	573,000	Xerox Corp., 6.350%, 5/15/2018		620,716
	7,265,000	Xerox Corp., 6.750%, 2/01/2017		8,020,923
				319,922,374
		Textile — 0.2%
	3,837,000	Phillips-Van Heusen Corp., 7.750%, 11/15/2023		3,826,958
	15,228,000	VF Corp., 6.450%, 11/01/2037		15,934,153
				19,761,111
		Tobacco — 0.1%
	2,175,000	Altria Group, Inc., 9.700%, 11/10/2018		2,674,443
	8,305,000	Reynolds American, Inc., 6.750%, 6/15/2017		8,895,353
	2,035,000	Reynolds American, Inc., 7.250%, 6/15/2037		2,071,239
				13,641,035
		Transportation Services — 0.7%
	8,620,000	Erac USA Finance Co., 6.375%, 10/15/2017, 144A		9,326,435
	2,885,000	Erac USA Finance Co., 6.700%, 6/01/2034, 144A		2,789,879
	52,626,000	Erac USA Finance Co., 7.000%, 10/15/2037, 144A		54,254,406
				66,370,720

See accompanying notes to financial statements.

14

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)	Description	Value (†)
	Treasuries — 20.9%
154,833,000	Canadian Government, 1.000%, 9/01/2011, (CAD)	$	151,692,588
1,265,000	Canadian Government, 1.250%, 12/01/2011, (CAD)		1,239,156
367,850,000	Canadian Government, 2.000%, 9/01/2012, (CAD)		361,902,974
26,235,000	Canadian Government, 2.750%, 12/01/2010, (CAD)		26,187,213
39,109,000	Canadian Government, 3.500%, 6/01/2013, (CAD)		39,816,362
229,170,000	Canadian Government, 3.750%, 6/01/2012, (CAD)		234,506,356
198,720,000	Canadian Government, 3.750%, 6/01/2019, (CAD)		198,271,943
4,250,000	Canadian Government, 4.000%, 6/01/2016, (CAD)		4,391,102
187,955,000	Canadian Government, 4.250%, 6/01/2018, (CAD)		195,233,364
310,490,000	Canadian Government, 5.250%, 6/01/2012, (CAD)		327,413,868
9,600,000	Canadian Government, 5.500%, 6/01/2010, (CAD)		9,529,488
12,530,000	New Zealand Government, 6.000%, 12/15/2017, (NZD)		9,056,179
191,570,000	New Zealand Government, 6.500%, 4/15/2013, (NZD)		143,457,354
742,220,000	Norwegian Government, 4.250%, 5/19/2017, (NOK)		130,778,809
120,965,000	Norwegian Government, 5.000%, 5/15/2015, (NOK)		22,100,516
199,940,000	Norwegian Government, 6.000%, 5/16/2011, (NOK)		35,000,265
142,485,000	Norwegian Government, 6.500%, 5/15/2013, (NOK)		26,645,836
80,000,000	U.S. Treasury Note, 3.125%, 5/15/2019		76,193,760
			1,993,417,133
	Wireless — 0.8%
32,100,000	Cellco Partnership/Verizon Wireless Capital LLC, 8.500%, 11/15/2018		40,049,854
8,650,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		8,217,500
1,220,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		1,189,500
15,710,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		14,649,575
6,512,000	Sprint Capital Corp., 6.875%, 11/15/2028		5,242,160
1,800,000	Sprint Capital Corp., 6.900%, 5/01/2019		1,647,000
625,000	Sprint Capital Corp., 8.750%, 3/15/2032		579,687
93,000	Sprint Nextel Corp., 6.000%, 12/01/2016		83,933
600,000	True Move Co. Ltd., 10.750%, 12/16/2013, 144A		626,250
1,654,000	Vodafone Group PLC, 5.000%, 9/15/2015		1,749,872
			74,035,331

Principal Amount (‡)		Description	Value (†)
		Wirelines — 3.8%
$	19,610,000	AT&T Corp., 6.500%, 3/15/2029	$	19,936,958
	1,895,000	AT&T, Inc., 6.500%, 9/01/2037		1,964,999
	415,000	Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		460,523
	3,250,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		3,208,785
	1,915,000	BellSouth Corp., 6.000%, 11/15/2034		1,848,806
	3,000,000	BellSouth Telecommunications, Inc., 5.850%, 11/15/2045		2,613,309
	6,810,000	BellSouth Telecommunications, Inc., 7.000%, 12/01/2095		6,792,675
	134,165,000	Deutsche Telekom International Finance BV, 6.000%, 7/08/2019		143,760,749
	3,350,000	GTE Corp., 6.940%, 4/15/2028		3,517,135
	65,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		59,475
	560,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		546,000
	2,700,000	New England Telephone & Telegraph, 7.875%, 11/15/2029		2,959,700
	1,735,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		1,622,225
	2,815,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		2,519,425
	4,465,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		4,375,700
	970,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		921,500
	340,000	Qwest Corp., 6.500%, 6/01/2017		354,025
	14,795,000	Qwest Corp., 6.875%, 9/15/2033		14,277,175
	890,000	Qwest Corp., 7.200%, 11/10/2026		856,625
	1,265,000	Qwest Corp., 7.250%, 9/15/2025		1,277,650
	4,295,000	Qwest Corp., 7.250%, 10/15/2035		4,144,675
	1,600,000	Qwest Corp., 7.500%, 6/15/2023		1,600,000
	17,170,000	Telecom Italia Capital SA, 4.875%, 10/01/2010		17,469,651
	11,215,000	Telecom Italia Capital SA, 6.000%, 9/30/2034		9,949,275
	4,180,000	Telecom Italia Capital SA, 6.375%, 11/15/2033		3,872,239
	14,445,000	Telus Corp., 4.950%, 3/15/2017, (CAD)		14,650,372
	55,855,000	Telus Corp., Series CG, 5.050%, 12/04/2019, (CAD)		55,094,978
	4,068,000	Verizon Communications, Inc., 5.850%, 9/15/2035		3,959,254
	3,676,000	Verizon Communications, Inc., 6.100%, 4/15/2018		4,021,070
	5,674,000	Verizon Maryland, Inc., 5.125%, 6/15/2033		4,619,192

See accompanying notes to financial statements.

15

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

Principal Amount (‡)		Description	Value (†)
		Wirelines — continued
$	14,540,000	Verizon New England, Inc., 6.500%, 9/15/2011	$	15,459,873
	7,047,000	Verizon New York, Inc., Series B, 7.375%, 4/01/2032		7,575,694
	5,375,000	Verizon Pennsylvania, Inc., 6.000%, 12/01/2028		4,810,599
				361,100,311
		Total Non-Convertible Bonds (Identified Cost $8,268,588,244)		9,037,744,686
	Convertible Bonds — 3.1%
		Automotive — 0.5%
	35,585,000	Ford Motor Co. 4.250%, 11/15/2016		53,244,056
		Media Non-Cable — 0.0%
	532,704	Liberty Media LLC, 3.500%, 1/15/2031		318,291
		Non-Captive Diversified — 0.1%
	9,920,000	iStar Financial, Inc., 0.751%, 10/01/2012(b)		7,544,160
		Oil Field Services — 0.1%
	505,000	Transocean, Inc., Series B, 1.500%, 12/15/2037		493,006
	7,050,000	Transocean, Inc., Series C, 1.500%, 12/15/2037		6,750,375
				7,243,381
		REITs — 0.4%
	1,400,000	ERP Operating LP, 3.850%, 8/15/2026		1,407,000
	10,673,000	ProLogis, 1.875%, 11/15/2037		10,059,303
	4,070,000	ProLogis, 2.250%, 4/01/2037		3,958,075
	27,955,000	ProLogis, 3.250%, 3/15/2015		28,094,775
				43,519,153
		Technology — 1.8%
	1,405,000	Intel Corp., 2.950%, 12/15/2035		1,378,656
	140,000,000	Intel Corp., 3.250%, 8/01/2039, 144A		167,825,000
				169,203,656
		Wireless — 0.1%
	5,200,000	NII Holdings, Inc., 3.125%, 6/15/2012		4,907,500
		Wirelines — 0.1%
	2,735,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		2,519,619
	230,000	Level 3 Communications, Inc., 5.250%, 12/15/2011		223,962
	2,990,000	Level 3 Communications, Inc., 7.000%, 3/15/2015, 144A(c)		3,573,050
				6,316,631
		Total Convertible Bonds (Identified Cost $244,916,195)		292,296,828

Principal Amount (‡)		Description	Value (†)
	Municipals — 0.5%
		California — 0.1%
$	1,305,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area Redevelopment), Series C, (MBIA insured), 3.750%, 8/01/2028	$	1,023,668
	480,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area), Series C, (Registered), (MBIA insured), 3.750%, 8/01/2028		402,763
	1,620,000	State of California, (AMBAC insured), 4.500%, 8/01/2027		1,462,163
	4,515,000	State of California, 4.500%, 10/01/2029		3,955,230
	1,315,000	State of California, (AMBAC insured), 4.500%, 8/01/2030		1,144,313
	1,135,000	State of California, 4.500%, 8/01/2030		987,677
	840,000	State of California (Various Purpose), (MBIA insured), 3.250%, 12/01/2027		631,630
	3,965,000	State of California (Various Purpose), (AMBAC insured), 4.500%, 12/01/2033		3,360,179
				12,967,623
		District Of Columbia — 0.2%
	15,000,000	Metropolitan Washington Airports Authority, 7.462%, 10/01/2046		15,430,050
		Illinois — 0.0%
	540,000	Chicago O’Hare International Airport, Series A, (AGMC insured), 4.500%, 1/01/2038		511,310
		Michigan — 0.0%
	2,615,000	Michigan Tobacco Settlement Finance Authority, 7.309%, 6/01/2034(c)		2,100,263
		Ohio — 0.1%
	6,570,000	Buckeye Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/01/2047(c)		4,767,652
		Virginia — 0.1%
	14,550,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(c)		10,595,601
		Total Municipals (Identified Cost $52,284,651)		46,372,499
		Total Bonds and Notes (Identified Cost $8,565,789,090)		9,376,414,013
		Total Investments - 98.4% (Identified Cost $8,565,789,090)(a)		9,376,414,013
		Other assets less liabilities — 1.6%		150,544,320
		Net Assets — 100.0%	$	9,526,958,333
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 100.
	(†††)	Amount shown represents units. One unit represents a principal amount of 25.

See accompanying notes to financial statements.

16

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of March 31, 2010 (Unaudited)

(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.): At March 31, 2010, the net unrealized appreciation on investments based on a cost of $8,589,392,324 for federal income tax purposes was as follows:
	Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	847,382,421
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(60,360,732	)
	Net unrealized appreciation	$	787,021,689
(b)	Variable rate security. Rate as of March 31, 2010 is disclosed.
(c)	Illiquid security. At March 31, 2010, the value of these securities amounted to $199,970,219 or 2.1% of net assets.
(d)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
144A	Securities 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 March 31, 2010, the total value of these securities amounted to $1,356,911,781 or 14.2% of net assets.
ABS	Asset-Backed Securities
AGMC	Assured Guaranty Municipal Corp.
AMBAC	American Municipal Bond Assurance Corp.
EMTN	Euro Medium Term Note
FHLMC	Federal Home Loan Mortgage Corp.
FNMA	Federal National Mortgage Association
GMTN	Global Medium Term Note
MBIA	Municipal Bond Investor Assurance Corp.
MTN	Medium Term Note
REITs	Real Estate Investment Trusts
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
ISK	Icelandic Krona
KRW	South Korean Won
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar
SGD	Singapore Dollar

Industry Summary at March 31, 2010 (Unaudited)

Treasuries	20.9	%
Banking	8.8
Technology	5.2
Government Owned—No Guarantee	4.3
Wirelines	3.9
Commercial Mortgage-Backed Securities	3.5
Pipelines	3.4
Electric	3.2
REITs	3.1
Airlines	3.0
Non-Captive Diversified	3.0
ABS Other	2.4
Sovereigns	2.1
Non-Captive Consumer	2.1
Other Investments, less than 2% each	29.5
Total Investments	98.4
Other assets less liabilities	1.6
Net Assets	100.0	%

Currency Exposure at March 31, 2010 as Percentage of Net Assets (Unaudited)

United States Dollar	71.0	%
Canadian Dollar	17.3
New Zealand Dollar	3.1
Norwegian Krone	2.3
Other, less than 2% each	4.7
Total Investments	98.4
Other assets less liabilities	1.6
Net Assets	100.0	%

See accompanying notes to financial statements.

17

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2010 (Unaudited)

ASSETS
Investments at cost	$	8,565,789,090
Net unrealized appreciation		810,624,923
Investments at value		9,376,414,013
Foreign currency at value (identified cost $1,713,003)		1,421,633
Receivable for Fund shares sold		41,532,547
Receivable for securities sold		5,287,314
Interest receivable		134,072,848
Tax reclaims receivable		154,405
TOTAL ASSETS		9,558,882,760
LIABILITIES
Payable for securities purchased		520,786
Payable for Fund shares redeemed		25,684,425
Payable to custodian bank		1,780,211
Management fees payable (Note 5)		3,222,173
Administrative fees payable (Note 5)		390,901
Deferred Trustees’ fees (Note 5)		179,521
Foreign taxes payable (Note 2)		24,800
Other accounts payable and accrued expenses		121,610
TOTAL LIABILITIES		31,924,427
NET ASSETS	$	9,526,958,333
NET ASSETS CONSIST OF:
Paid-in capital	$	8,615,397,189
Undistributed net investment income		27,107,762
Accumulated net realized gain on investments and foreign currency transactions		73,891,544
Net unrealized appreciation on investments and foreign currency translations		810,561,838
NET ASSETS	$	9,526,958,333
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	3,022,747,636
Shares of beneficial interest		251,013,477
Net asset value and redemption price per share	$	12.04
Offering price per share (100/95.50 of net asset value) (Note 1)	$	12.61
Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	17,247,429
Shares of beneficial interest		1,439,081
Net asset value and offering price per share	$	11.99
Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	2,549,002,324
Shares of beneficial interest		213,198,083
Net asset value and offering price per share	$	11.96
Class Y shares:
Net assets	$	3,800,953,967
Shares of beneficial interest		315,436,633
Net asset value, offering and redemption price per share	$	12.05
Admin Class shares:
Net assets	$	1,023
Shares of beneficial interest		85
Net asset value, offering and redemption price per share	$	12.04
Class J shares:
Net assets	$	137,005,954
Shares of beneficial interest		11,390,620
Net asset value and redemption price per share	$	12.03
Offering price per share (100/96.50 of net asset value) (Note 1)	$	12.47

See accompanying notes to financial statements.

18

STATEMENT OF OPERATIONS

For the Six Months Ended March 31, 2010 (Unaudited)

INVESTMENT INCOME
Interest	$	258,595,511
Expenses
Management fees (Note 5)		18,751,238
Service and distribution fees (Note 5)		17,012,685
Trustees’ fees and expenses (Note 5)		78,694
Administrative fees (Note 5)		2,268,682
Custodian fees and expenses		220,617
Transfer agent fees and expenses (Notes 5 and 6)		3,658,985
Audit and tax services fees		28,071
Legal fees (Note 6)		104,459
Shareholder reporting expenses (Note 6)		347,641
Registration fees (Note 6)		208,124
Miscellaneous expenses		139,990
Total expenses		42,819,186
Less fee reduction and/or expense reimbursement (Note 5)		(35,825	)
Net expenses		42,783,361
Net investment income		215,812,150
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on:
Investments		113,917,711
Foreign currency transactions		1,045,345
Net change in unrealized appreciation (depreciation) on:
Investments		233,843,552
Foreign currency translations		(1,541,089	)
Net realized and unrealized gain on investments and foreign currency transactions		347,265,519
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	563,077,669

See accompanying notes to financial statements.

19

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended March 31, 2010 (Unaudited)			Year Ended September 30, 2009
FROM OPERATIONS:
Net investment income	$	215,812,150		$	350,121,874
Net realized gain (loss) on investments and foreign currency transactions		114,963,056			(23,240,057	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		232,302,463			1,086,052,060
Net increase in net assets resulting from operations		563,077,669			1,412,933,877
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(72,852,306	)		(126,482,744	)
Class B		(356,044	)		(778,099	)
Class C		(53,100,636	)		(86,396,910	)
Class Y		(94,986,865	)		(111,617,170	)
Admin Class		(4	)		—
Class J		(3,158,970	)		(8,135,019	)
Net realized capital gains
Class A		(6,651,489	)		(24,679,708	)
Class B		(39,640	)		(203,042	)
Class C		(5,758,632	)		(18,444,267	)
Class Y		(8,463,329	)		(16,568,771	)
Admin Class		—			—
Class J		(320,597	)		(2,097,657	)
Total distributions		(245,688,512	)		(395,403,387	)
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		67,481,912			3,695,970,881
Net increase in net assets		384,871,069			4,713,501,371
NET ASSETS
Beginning of the period		9,142,087,264			4,428,585,893
End of the period	$	9,526,958,333		$	9,142,087,264
UNDISTRIBUTED NET INVESTMENT INCOME	$	27,107,762		$	35,750,437

See accompanying notes to financial statements.

20

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions
INVESTMENT GRADE BOND FUND
Class A
3/31/2010(f)	$	11.64	$	0.28	$	0.43		$	0.71		$	(0.28	)	$	(0.03	)	$	(0.31	)
9/30/2009		10.54		0.60		1.22			1.82			(0.59	)		(0.13	)		(0.72	)
9/30/2008		11.73		0.60		(1.15	)		(0.55	)		(0.64	)		—			(0.64	)
9/30/2007		11.35		0.58		0.42			1.00			(0.62	)		—			(0.62	)
9/30/2006		11.71		0.51		0.10			0.61			(0.75	)		(0.22	)		(0.97	)
9/30/2005		11.84		0.49		0.29			0.78			(0.74	)		(0.17	)		(0.91	)
Class B
3/31/2010(f)		11.59		0.23		0.44			0.67			(0.24	)		(0.03	)		(0.27	)
9/30/2009		10.50		0.51		1.21			1.72			(0.50	)		(0.13	)		(0.63	)
9/30/2008		11.68		0.50		(1.14	)		(0.64	)		(0.54	)		—			(0.54	)
9/30/2007		11.31		0.47		0.43			0.90			(0.53	)		—			(0.53	)
9/30/2006		11.67		0.42		0.10			0.52			(0.66	)		(0.22	)		(0.88	)
9/30/2005		11.82		0.41		0.27			0.68			(0.66	)		(0.17	)		(0.83	)
Class C
3/31/2010(f)		11.56		0.23		0.44			0.67			(0.24	)		(0.03	)		(0.27	)
9/30/2009		10.47		0.52		1.22			1.74			(0.52	)		(0.13	)		(0.65	)
9/30/2008		11.66		0.51		(1.15	)		(0.64	)		(0.55	)		—			(0.55	)
9/30/2007		11.30		0.49		0.42			0.91			(0.55	)		—			(0.55	)
9/30/2006		11.66		0.42		0.11			0.53			(0.67	)		(0.22	)		(0.89	)
9/30/2005		11.81		0.40		0.28			0.68			(0.66	)		(0.17	)		(0.83	)
Class Y
3/31/2010(f)		11.65		0.29		0.44			0.73			(0.30	)		(0.03	)		(0.33	)
9/30/2009		10.55		0.62		1.23			1.85			(0.62	)		(0.13	)		(0.75	)
9/30/2008		11.73		0.64		(1.15	)		(0.51	)		(0.67	)		—			(0.67	)
9/30/2007		11.36		0.61		0.41			1.02			(0.65	)		—			(0.65	)
9/30/2006		11.71		0.55		0.11			0.66			(0.79	)		(0.22	)		(1.01	)
9/30/2005		11.85		0.54		0.28			0.82			(0.79	)		(0.17	)		(0.96	)
Admin Class
3/31/2010*		11.80		0.09		0.19			0.28			(0.04	)		—			(0.04	)
Class J
3/31/2010(f)		11.63		0.25		0.44			0.69			(0.26	)		(0.03	)		(0.29	)
9/30/2009		10.53		0.55		1.22			1.77			(0.54	)		(0.13	)		(0.67	)
9/30/2008		11.71		0.54		(1.14	)		(0.60	)		(0.58	)		—			(0.58	)
9/30/2007		11.34		0.52		0.42			0.94			(0.57	)		—			(0.57	)
9/30/2006		11.69		0.46		0.11			0.57			(0.70	)		(0.22	)		(0.92	)
9/30/2005		11.83		0.46		0.27			0.73			(0.70	)		(0.17	)		(0.87	)

* From commencement of Class operations on February 1, 2010 through March 31, 2010.

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

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

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

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

See accompanying notes to financial statements.

21

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (b)(c)		Net assets, end of the period (000’s)		Net expenses (%) (d)(e)		Gross expenses (%) (e)		Net investment income (%)  (e)	Portfolio turnover rate (%)
$	12.04	6.24		$	3,022,748	0.80		0.80		4.72	14
	11.64	18.64			2,946,489	0.80		0.80		5.87	30
	10.54	(5.12	)		1,867,335	0.80		0.80		5.20	35
	11.73	9.14			834,736	0.83		0.83		5.05	35
	11.35	5.63			152,054	0.92	(g)	0.92	(g)	4.59	35
	11.71	6.83			39,168	0.95		1.14		4.21	28
	11.99	5.74			17,247	1.65		1.65		3.86	14
	11.59	17.59			17,489	1.67		1.67		5.07	30
	10.50	(5.88	)		16,009	1.65	(h)	1.65	(h)	4.29	35
	11.68	8.17			17,082	1.70		1.71		4.16	35
	11.31	4.83			5,525	1.70		1.89		3.75	35
	11.67	5.89			3,443	1.70		2.18		3.47	28
	11.96	5.90			2,549,002	1.55		1.55		3.97	14
	11.56	17.80			2,495,305	1.56		1.56		5.09	30
	10.47	(5.84	)		1,333,421	1.55		1.55		4.45	35
	11.66	8.28			605,934	1.57		1.57		4.30	35
	11.30	4.87			82,863	1.70	(g)	1.70	(g)	3.79	35
	11.66	5.91			27,992	1.70		1.97		3.45	28
	12.05	6.37			3,800,954	0.55		0.55		4.97	14
	11.65	18.94			3,531,187	0.54		0.54		6.01	30
	10.55	(4.79	)		1,044,046	0.53		0.53		5.48	35
	11.73	9.32			448,873	0.55	(h)	0.55	(h)	5.33	35
	11.36	6.09			76,548	0.55		0.63		4.94	35
	11.71	7.13			26,012	0.55		0.82		4.61	28
	12.04	2.42			1	1.20		3,185.50		4.54	14
	12.03	5.98			137,006	1.30		1.31		4.21	14
	11.63	18.05			151,617	1.30		1.31		5.48	30
	10.53	(5.50	)		167,775	1.28		1.28		4.66	35
	11.71	8.52			180,453	1.28		1.28		4.57	35
	11.34	5.29			214,894	1.30	(g)	1.30	(g)	4.09	35
	11.69	6.36			314,418	1.30		1.35		3.89	28

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

(f) For the six months ended March 31, 2010 (Unaudited).

(g) Includes fee/expense recovery of 0.06%, 0.09% and 0.03% for Class A, Class C and Class J shares, respectively.

(h) Includes fee/expense recovery of less than 0.01% for Class B and Class Y shares, respectively.

22

NOTES TO FINANCIAL STATEMENTS

March 31, 2010 (Unaudited)

1.  Organization.  Loomis Sayles Funds 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. Information presented in these financial statements pertains to Loomis Sayles Investment Grade Bond Fund (the “Fund” or the “Investment Grade Bond Fund”).

The Fund offers Class A, Class C, Class Y, Admin Class and Class J. Effective February 1, 2010, the Fund began offering Admin Class shares. Effective October 12, 2007, Class B shares are no longer offered. Existing Class B shareholders may continue to reinvest dividends into Class B shares and exchange their Class B shares for Class B shares of other Natixis Funds subject to existing exchange privileges as described in the Fund’s Prospectus.

Class A shares are sold with a maximum front-end sales charge of 4.50%. Class B shares do not pay a front-end sales charge, but pay higher Rule 12b-1 fees than Class A shares for eight years (at which point they automatically convert to Class A shares) and are subject to a contingent deferred sales charge (“CDSC”) if those shares are redeemed within six years of purchase. Class C shares do not pay a front-end sales charge, do not convert to any other class of shares, pay higher Rule 12b-1 fees than Class A shares and may be subject to a CDSC of 1.00% if those shares are redeemed within one year of acquisition except for reinvested distributions. Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class Y shares are generally intended for institutional investors with a minimum initial investment of $100,000, though some categories of investors are exempted from the minimum investment amount as outlined in the Fund’s Prospectus. Admin Class shares do not pay a front-end sales charge or a CDSC, but do pay a Rule 12b-1 fee. Admin Class shares are offered exclusively through intermediaries. Class J shares are only offered to non-U.S. investors and are sold with a maximum front-end sales charge of 3.50%.

Most expenses of the Trust can be directly attributed to a fund. Expenses which can not be directly attributed to a fund are generally apportioned based on the relative net assets of each of the funds in the Trust. Expenses of the Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (including the Rule 12b-1 service and distribution fees, registration, legal, shareholder reporting and Class J transfer agent fees). 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 the Fund if the Fund were liquidated. The Trustees approve separate dividends from net investment income on each class of shares.

2.  Significant Accounting Policies.  The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions that have occurred through the date the financial statements were issued, and noted no items requiring recognition in the financial statements or additional disclosure in the Notes to Financial Statements.

a.  Valuation.  Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Fund by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Broker-dealer bid quotations may also be used to value debt securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Fund may be valued on the basis of a price provided by a principal market maker. Forward foreign currency contracts are valued utilizing interpolated prices determined from information provided by an independent pricing service. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Fund’s investment adviser using consistently applied procedures under the general supervision of the Board of Trustees. Investments in other open-end investment companies are valued at their net asset value each day.

The Fund may hold securities traded in foreign markets. Foreign securities are valued at the market price in the foreign market. However, if events occurring after the close of the foreign market (but before the close of regular trading on the New York Stock Exchange) are believed to materially affect the value of those securities, such securities are fair valued pursuant to procedures approved by the Board of Trustees. When fair valuing securities, the Fund may, among other things, use modeling tools or other processes that may take into account factors such as securities market activity and/or significant events that occur after the close of the foreign market and before the Fund calculates its net asset value.

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

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

23

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

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

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

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

d.  Forward Foreign Currency Contracts.  The Fund may enter into forward foreign currency contracts. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell generally are used to hedge the Fund’s investments against currency fluctuation. Also, a contract to buy or sell can offset a previous contract. These contracts involve market risk in excess of the unrealized gain or loss reflected in the Fund’s Statement of Assets and Liabilities. The U.S. dollar value of the currencies the Fund has committed to buy or sell represents the aggregate exposure to each currency the Fund has acquired or hedged through currency contracts outstanding at period end. Gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Certain contracts may require the movement of cash or securities to or from the counterparty as collateral for the Fund’s or counterparty’s net obligations under the contracts.

At March 31, 2010, there were no open forward foreign currency contracts.

e.  Federal and Foreign Income Taxes.  The Trust treats each fund as a separate entity for federal income tax purposes. The 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 the Fund’s tax positions for the open tax years as of March 31, 2010 and has concluded that no provisions for income tax are required. The Fund’s 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 six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Fund. 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.

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

f.  Dividends and Distributions to Shareholders.  Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes for items such as defaulted bonds, distribution redesignations, foreign currency transactions, paydown adjustments and premium amortization accruals. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to premium amortization accruals, deferred Trustees’ fees, defaulted bond accruals, securities lending collateral gain/loss adjustments and wash sales. 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 year ended September 30, 2009 was as follows:

2009 Distributions Paid From:
Ordinary Income	Long-Term Capital Gains		Total
$386,232,314	$	9,171,073	$	395,403,387

Differences between these amounts and those reported in the Statement of Changes in Net Assets, if any, are primarily attributable to different book and tax treatment for short-term capital gains.

24

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

As of September 30, 2009, the capital loss carryforwards and post-October losses were as follows:

Capital loss carryforward:
Expires September 30, 2017	$	(1,891,321	)
Deferred net capital losses (post- October 2008)	$	(3,774,568	)

g.  Repurchase Agreements.  It is the 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.

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

As of March 31, 2010 there were no securities on loan.

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 Fund. Additionally, in the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

3.  Fair Value Measurements.  In accordance with accounting standards related to fair value measurements and disclosures, the Fund has categorized the inputs utilized in determining the value of the 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.);

• Level 3 – prices determined using significant unobservable inputs for situations where 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 the 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.

25

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2010, at value:

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	—	$	90,423,279	$	5,520,448	$	95,943,727
Integrated Energy		—		24,758,019		1,209,931		25,967,950
Non-Captive Diversified		—		278,858,564		547,575		279,406,139
Property & Casualty Insurance		—		73,312,962		656,200		73,969,162
All Other Non-Convertible Bonds(a)		—		8,562,457,708		—		8,562,457,708
Total Non-Convertible Bonds		—		9,029,810,532		7,934,154		9,037,744,686
Convertible Bonds(a)		—		292,296,828		—		292,296,828
Municipals(a)		—		46,372,499		—		46,372,499
Total	$	—	$	9,368,479,859	$	7,934,154	$	9,376,414,013

(a) Major categories of the Fund’s investments are included in 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 March 31, 2010:

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Net Transfers into/(out of) Level 3			Balance as of March 31, 2010
Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	—	$	—	$	—	$	(7	)	$	5,520,455		$	—		$	5,520,448
ABS Other		39,800,000		—		1,601		317,301			(12,470,767	)		(27,648,135	)		—
Airlines		14,176,691		—		—		2,385,467			(657,418	)		(15,904,740	)		—
Automotive		630,087		607		—		26,634			—			(657,328	)		—
Diversified Manufacturing		14,557,959		116,253		—		708,291			451,081			(15,833,584	)		—
Integrated Energy		1,351,142		—		—		(28,243	)		(112,968	)		—			1,209,931
Non-Captive Consumer		5,137,913		67,421		—		187,262			—			(5,392,596	)		—
Non-Captive Diversified		—		7,438		—		150,874			—			389,263			547,575
Property & Casualty Insurance		—		290		—		231,310			—			424,600			656,200
Supranational		8,370,105		43,676		—		2,452,852			6,775,547			(17,642,180	)		—
Convertible Bonds
Wirelines		3,169,400		4,390		—		399,260			—			(3,573,050	)		—
Total	$	87,193,297	$	240,075	$	1,601	$	6,831,001		$	(494,070	)	$	(85,837,750	)	$	7,934,154

4.  Purchases and Sales of Securities.  For the six months ended March 31, 2010, purchases and sales of securities (excluding short-term investments and U.S. Government/agency securities and including paydowns) were $1,500,679,842 and $1,035,041,174, respectively. Purchases and sales of U.S. Government/agency securities (excluding short-term investments and including paydowns) were $91,234,632 and $238,966,372, respectively.

5.  Management Fees and Other Transactions with Affiliates.

a.  Management Fees.  Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to the Fund. Under the terms of the management agreement, the Fund pays a management fee at the annual rate of 0.40% of average daily net assets, calculated daily and payable monthly.

26

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

Loomis Sayles has given a binding undertaking to the Fund to reduce management fees and/or reimburse certain expenses to limit the Fund’s operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes and extraordinary expenses. This undertaking is in effect until January 31, 2011 and will be reevaluated on an annual basis. Management fee payable, as reflected on the Statement of Assets and Liabilities, is net of fee reductions and/or expense reimbursements, if any, pursuant to these undertakings.

For the period from February 1, 2010 to March 31, 2010, the expense limits as a percentage of average daily net assets under the expense limitation agreement were as follows:

Expense Limit as a Percentage of Average Daily Net Assets
Class A	Class B	Class C	Class Y	Admin Class	Class J
0.95%	1.70%	1.70%	0.70%	1.20%	1.30%

Prior to February 1, 2010, the expense limit as a percentage of average daily net assets for Class Y was 0.55%.

Loomis Sayles shall be permitted to recover expenses it has borne under the expense limitation agreement (whether through reduction of its management fees or otherwise) on a class by class basis in later periods to the extent the expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such reduced fees/expenses more than one year after the end of the fiscal year in which the fees/expenses were reduced.

For the six months ended March 31, 2010, the management fees for the Fund were $18,751,238 (0.40% of average daily net assets).

For the six months ended March 31, 2010, class-specific expenses have been reimbursed as follows:

Reimbursement1
Class A	Class B		Class C		Class Y		Admin Class		Class J
$—	$	—	$	—	$	26,680	$	5,110	$	4,035

¹ Expense reimbursements are subject to possible recovery until September 30, 2011.

No expenses were recovered during the six months ended March 31, 2010 under the terms of the expense limitation agreement.

Certain officers and employees of Loomis Sayles are also officers or Trustees of the Trust. Loomis Sayles’ general partner is indirectly owned by Natixis Global Asset Management, L.P. (“Natixis US”), which is part of Natixis Global Asset Management, an international asset management group based in Paris, France.

b.  Administrative Fees.  Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Fund and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, the Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0500% of the next $15 billion, 0.0425% of the next $30 billion and 0.0375% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

For the six months ended March 31, 2010, the Fund paid $2,268,682 in administrative fees to Natixis Advisors.

c.  Service and Distribution Fees.  Natixis Distributors, L.P. (“Natixis Distributors”), a wholly-owned subsidiary of Natixis US, has entered into a distribution agreement with the Trust. Pursuant to this agreement, Natixis Distributors serves as principal underwriter of the funds of the Trust, except Class J shares of the Fund. The Fund has entered into a distribution agreement relating to Class J shares with Loomis Sayles Distributors, L.P. (“Loomis Sayles Distributors”), a wholly-owned subsidiary of Natixis US.

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”), a Distribution and Service Plan relating to the Fund’s Class B and Class C shares (the “Class B and Class C Plans”), and a Distribution Plan relating to its Admin Class shares (the “Admin Class Plan”).

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

27

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

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

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

Under the Admin Class Plan, the Fund pays Natixis Distributors a monthly distribution fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Admin Class shares, as compensation for services provided by Natixis Distributors in connection with the marketing or sale of Admin Class shares or for payments made by Natixis Distributors to securities dealers or other financial intermediaries as commissions, asset-based sales charges or other compensation with respect to the sale of Admin Class shares, or for providing personal services to investors and/or the maintenance of shareholder accounts.

In addition, the Admin Class shares of the Fund may pay Natixis Distributors an administrative service fee, at an annual rate not to exceed 0.25% of the average daily net assets attributable to Admin Class shares. These fees are subsequently paid to securities dealers or financial intermediaries for providing personal services and/or account maintenance for their customers who hold such shares.

Class J shares are subject to a monthly shareholder service fee at an annual rate of 0.25% and a monthly distribution fee, at an annual rate of 0.50% of the average daily net assets attributable to the Fund’s Class J shares, both payable to Loomis Sayles Distributors, pursuant to a shareholder service and distribution plan adopted under Rule 12b-1.

For the six months ended March 31, 2010 the Fund paid the following service and distribution fees:

Service Fees										Distribution Fees
Class A	Class B		Class C		Admin Class			Class J		Class B		Class C		Admin Class			Class J
$3,728,615	$	21,751	$	3,166,135	$	—	(a)	$	177,509	$	65,253	$	9,498,405	$	—	(a)	$	355,017

^(a) Amount is less than $1.

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

For the six months ended March 31, 2010, the Fund paid the following sub-transfer agent fees which are reflected in transfer agent fees and expenses in the Statement of Operations.

Sub Transfer Agent Fees
Class A	Class B		Class C		Class Y		Admin Class		Class J
$1,033,487	$	6,069	$	877,915	$	1,272,797	$	—	$	—

e.  Commissions.  The Fund has been informed that commissions (including CDSCs) on Fund shares retained by Natixis Distributors were $2,930,362 and commissions on Fund shares retained by Loomis Sayles Distributors by investors in Class J shares of the Fund were $28,796 for the six months ended March 31, 2010.

f.  Trustees Fees and Expenses.  The Funds do not pay any compensation directly to its officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distributors, Natixis US or their affiliates. Effective January 1, 2010, the Chairperson of the Board receives a retainer fee at the annual rate of $250,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $80,000. 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, each committee chairman receives an additional retainer fee at an annual rate of $15,000. Each Contract Review and Governance 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 $7,500 for each Committee meeting that he or she attends in person and $3,750 for each meeting that he or she attends telephonically. Each member of the ad hoc Committee on Alternative Investments received a one-time fee of $10,000. The ad hoc Committee on Alternative Investments is not a standing committee. These fees are allocated among the

28

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2010, the Chairperson of the Board received a retainer fee at the annual rate of $200,000. The Chairperson did not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attended. Each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $65,000. Each Independent Trustee also received a meeting attendance fee of $7,500 for each meeting of the Board of Trustees that he or she attended in person and $3,750 for each meeting of the Board of Trustees that he or she attended telephonically. In addition, each committee chairman received an additional retainer fee at an annual rate of $10,000. Each Contract Review and Governance Committee member was compensated $5,000 for each Committee meeting that he or she attended in person and $2,500 for each meeting that he or she attended telephonically. Each Audit Committee member was compensated $6,250 for each Committee meeting that he or she attended in person and $3,125 for each meeting that he or she attended telephonically.

A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Funds until distributed in accordance with the provisions of the Plan. 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 Hansberger International Series 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 Hansberger International Series, and are normally reflected as Trustees’ fees and expenses in the Statement of Operations. The portions of the accrued obligations allocated to the Fund under the Plan are reflected as Deferred Trustees’ fees on the Statement of Assets and Liabilities.

6.  Class-Specific Expenses.  For the six months ended March 31, 2010, the Fund paid the following class-specific expenses:

	Class A		Class B		Class C		Class Y		Admin Class		Class J
Transfer Agent Fees and Expenses	$	1,180,701	$	6,890	$	1,002,771	$	1,464,116	$	—	$	4,507
Registration Fees		36,494		8,659		32,721		123,763		5,106		1,381
Legal Fees		30,315		179		25,879		36,595		—		11,491
Shareholding Reporting Expenses		106,410		1,325		90,870		96,918		6		52,112

7.  Line of Credit.  The Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participates in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. 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.

Prior to March 10, 2010, the Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participated in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each Fund that participated in the line of credit. Interest was charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 0.75%. In addition, a commitment fee of 0.125% 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.

For the six months ended March 31, 2010, the Fund had no borrowings under these agreements.

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

9.  Concentration of Ownership.  At March 31, 2010, the Loomis Sayles Employees’ Profit Sharing Retirement Plan held 475,869 shares of beneficial interest of Class Y shares.

29

NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2010 (Unaudited)

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

	Six Months Ended March 31, 2010					Year Ended September 30, 2009
	Shares		Amount			Shares		Amount
Class A
Issued from the sale of shares	53,211,394		$	627,549,848		200,269,071		$	2,017,489,461
Issued in connection with the reinvestment of distributions	5,538,773			64,956,085		11,250,899			113,354,829
Redeemed	(60,822,598	)		(717,556,016	)	(135,581,311	)		(1,374,597,415	)
Net change	(2,072,431	)	$	(25,050,083	)	75,938,659		$	756,246,875
Class B
Issued from the sale of shares	48,340		$	565,709		342,411		$	3,353,183
Issued in connection with the reinvestment of distributions	16,859			196,840		47,761			475,214
Redeemed	(135,224	)		(1,589,435	)	(406,153	)		(4,093,030	)
Net change	(70,025	)	$	(826,886	)	(15,981	)	$	(264,633	)
Class C
Issued from the sale of shares	25,426,201		$	297,709,116		125,777,319		$	1,258,454,707
Issued in connection with the reinvestment of distributions	2,426,537			28,263,501		4,814,937			48,253,057
Redeemed	(30,478,991	)		(357,603,278	)	(42,064,857	)		(423,168,232	)
Net change	(2,626,253	)	$	(31,630,661	)	88,527,399		$	883,539,532
Class Y
Issued from the sale of shares	84,088,448		$	992,316,180		271,785,951		$	2,773,164,198
Issued in connection with the reinvestment of distributions	6,030,512			70,731,240		8,469,829			85,983,440
Redeemed	(77,792,522	)		(918,692,920	)	(76,132,184	)		(772,285,683	)
Net change	12,326,438		$	144,354,500		204,123,596		$	2,086,861,955
Admin Class *
Issued from the sale of shares	85		$	1,002		—		$	—
Issued in connection with the reinvestment of distributions	—	(a)		4		—			—
Redeemed	—			—		—			—
Net change	85		$	1,006		—		$	—
Class J
Issued from the sale of shares	484,500		$	5,724,595		1,250,300		$	12,326,154
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(2,131,790	)		(25,090,559	)	(4,148,420	)		(42,739,002	)
Net change	(1,647,290	)	$	(19,365,964	)	(2,898,120	)	$	(30,412,848	)
Increase (decrease) from capital share transactions	5,910,524		$	67,481,912		365,675,553		$	3,695,970,881

* From commencement of Class operations on February 1, 2010 through March 31, 2010.

(a) Amount rounds to less than one share.

30

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

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

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Securities Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Trust’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 was no change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

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

SIGNATURES

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

LOOMIS SAYLES FUNDS II
By:	/S/ ROBERT J. BLANDING
Name:	Robert J. Blanding
Title:	Chief Executive Officer
Date:	May 20, 2010

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/ ROBERT J. BLANDING
Name:	Robert J. Blanding
Title:	Chief Executive Officer
Date:	May 20, 2010
By:	/S/ MICHAEL C. KARDOK
Name:	Michael C. Kardok
Title:	Treasurer
Date:	May 20, 2010