N-CSR

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: September 30, 2008

Item 1. Reports to Stockholders.

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

INCOME FUNDS

ANNUAL REPORT

September 30, 2008

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

LOOMIS SAYLES CORE PLUS BOND FUND

PORTFOLIO PROFILE

Objective:

Seeks a high level of current income consistent with what the fund considers reasonable risk

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

Negative news that characterized the financial markets during the fiscal year ended September 30, 2008 reached a crescendo in the closing month. Early in the period, concern focused on securities backed by subprime and other high-risk loans. By September the crisis had accelerated. Banks had pulled back from lending, and Secretary of the Treasury Henry Paulson and Ben Bernanke, Chairman of the Federal Reserve Board, led policy makers in a series of moves designed to restore stability – a still elusive goal.

During this turbulent 12-month period, Loomis Sayles Core Plus Bond Fund provided a total return of -1.61%, based on the net asset value of Class A shares and $0.61 in reinvested dividends. The fund underperformed its broad-based benchmark, Lehman Aggregate Bond Index, which returned 3.65% for the period, but it outperformed the -2.45% average return on the funds in its Morningstar Intermediate-Term Bond peer group. The fund’s 30-day SEC yield as of September 30, 2008 was 5.38%.

HOW DID THE MARKETS GET HERE?

A prolonged period of risky lending practices came to an end as home prices declined in value. The Federal Reserve unleashed a series of initiatives designed to ease the situation. At first, this seemed to help, but as the downturn intensified, investor apprehension spread to loans of all types. A series of failures involving some of the country’s oldest and largest financial institutions contributed to a widespread crisis in confidence. The third quarter saw a rapid-fire, surprising series of events culminating in September. As the month ended, a comprehensive plan designed to get credit flowing again by purging bank balance sheets of distressed loans was passed into law, but no one knows how well it will work or if other intervention may be needed.

HOW DID THE FUND RESPOND?

Sector allocation and security selection within the investment-grade and high-yield credit markets, as well as the fund’s position in asset-backed securities, provided some protection amid dwindling investor confidence. We made several opportunistic trades designed to capitalize on selected bonds issued by financial companies that had been hit hard. Security selection within investment-grade utilities was also a positive during the year. In general, we maintained a high level of liquidity in the portfolio, including holdings in Treasuries, agency and mortgage-backed securities. We also increased the fund’s exposure to securities denominated in the Japanese yen as part of our efforts to hedge against increased risk aversion in the U.S. markets.

However, our small allocation to certain types of AAA-rated and ABS home equity bonds detracted from overall performance. Both investment-grade and high-yield financials also declined in price in response to some high-profile bankruptcies and the bailout of Fannie Mae and Freddie Mac. Risk-averse investors around the world fled to the relative safety of U.S. Treasuries, causing yields to plunge. Our defensive strategy and a longer duration than the benchmark were also negatives.

WHAT NOW?

Between the Federal Reserve and the Treasury, massive sums have been brought to bear in an effort to keep the financial system moving forward. Recession risk has grown and economic headwinds include a tight credit environment and the loss of wealth from home and stock price declines. Our current forecast is for a sharp decline in growth in the fourth quarter of 2008, followed by a more moderate decline in the first quarter of 2009. In financials, we see more consolidation, more regulation and tighter lending standards ahead. While the economy is likely to remain weak for at least the next several quarters, we believe that risk markets – markets other than Treasuries, including credit and structured products – currently offer compelling value on a risk/return basis. We have recently increased our allocation to the investment grade and high yield sectors, and have made opportunistic additions to the ABS and commercial mortgage-backed markets. As a result, we believe we are well positioned to take advantage of the eventual recovery we anticipate in risk markets.

1

LOOMIS SAYLES CORE PLUS BOND FUND

Investment Results through September 30, 2008

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 Shares⁴

Average Annual Returns — September 30, 2008⁴

	1 YEAR		5 YEARS		10 YEARS
Class A (Inception 11/7/73)
Net Asset Value1	-1.61	%	3.13	%	4.00	%
With Maximum Sales Charge2	-6.02		2.18		3.53
Class B (Inception 9/13/93)
Net Asset Value1	-2.21		2.39		3.25
With CDSC3	-6.88		2.05		3.25
Class C (Inception 12/30/94)
Net Asset Value1	-2.32		2.37		3.23
With CDSC3	-3.25		2.37		3.23
Class Y (Inception 12/30/94)
Net Asset Value1	-1.36		3.40		4.36
COMPARATIVE PERFORMANCE	1 YEAR		5 YEARS		10 YEARS
Lehman Aggregate Bond Index	3.65	%	3.78	%	5.20	%
Lehman U.S. Credit Index	-4.79		1.94		4.50
Morningstar Int.-Term Bond Fund Avg.	-2.45		2.15		4.09

See page 11 for a description of the indexes.

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	9/30/08	9/30/07
Aaa	59.1	66.4
Aa	5.6	1.4
A	4.8	3.4
Baa	14.6	13.1
Ba	4.8	6.4
B	5.7	3.9
Caa	0.5	0.8
Ca	0.3	—
Not Rated*	3.8	1.9
Short-term and other	0.8	2.7

Credit quality is based on ratings from Moody’s Investors Service.

* Securities that are not rated by Moody’s may be rated by another rating agency or by Loomis Sayles.

	% of Net Assets as of
EFFECTIVE DURATION	9/30/08		9/30/07
1 year or less	8.8		6.5
1-5 years	39.7		46.8
5-10 years	40.0		27.0
10+ years	11.5		19.7
Average Effective Duration	5.7	years	5.8	years

Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio5		Net Expense Ratio6
A	1.09	%	0.90	%
B	1.85		1.65
C	1.82		1.65
Y	0.75		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 1/31/09.

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

The credit crisis that took down major financial institutions and shook the broader economy led investors to shun corporate bonds of all quality levels and seek relative safety in U.S. Treasury issues. Lack of confidence drained liquidity from the credit markets and yield spreads (the difference in yields available from high- and low-quality bonds) widened dramatically.

For the fiscal year ended September 30, 2008, Loomis Sayles High Income Fund’s total return was -10.98% based on the net asset value of Class A shares and $0.35 in reinvested dividends. Although in absolute terms the fund’s return was disappointing, it held up better than its benchmark, the Lehman High Yield Composite Index, which returned -11.24% for the period, and the -11.29% return on Morningstar’s High Yield Bond category. As of September 30, 2008, the fund’s 30-day SEC yield was 8.48%.

HOW DID THE MARKETS GET HERE?

The period’s results were largely shaped by the precipitous decline in bond prices that took place in the final quarter of the fund’s fiscal year. The pursuit of safety broadened to a stampede, and prices of Treasury securities rose dramatically as frightened investors sold off corporate bonds.

HOW DID THIS AFFECT THE FUND?

The fund gained an edge on its benchmark thanks to its reduced stake in below-investment grade bonds in the battered financial sector. Non-U.S. dollar investments were the fund’s best performers, thanks to strong results from countries in Asia and Latin America. Securities denominated in Singapore’s dollar and the Japanese yen recorded solid gains as a result of strengthening currencies and positive trends in their domestic markets. Results were also favorable in Mexico, where yields on peso-denominated bonds remained attractive. Certain convertible bonds were positive contributors to performance, and the fund’s small allocation to asset-backed securities was modestly favorable.

However, an upward move by the U.S. dollar, especially during the quarter ended September 30, 2008, had a negative impact on most of the portfolio’s holdings denominated in foreign currencies. Declines in Iceland’s krona and South Korea’s won overshadowed positive local returns. The massive flight to U.S. Treasuries left virtually all sectors of the portfolio in negative territory. Not even high-quality issues escaped.

Damage was most severe in the financial sector, as many prominent Wall Street institutions faced collapse and some were acquired by other firms; investment-grade bonds in this group were the most affected. Below-investment-grade industrial bonds – especially those issued by debt-heavy technology and communications companies – also suffered. Auto and gaming issues fell as consumers cut back sharply on discretionary spending. Equity and preferred holdings, chiefly financials and securities of government-sponsored enterprises, also hurt the fund’s performance.

WHAT NOW?

Economic growth in the United States is still slowing. We expect weak home prices and job concerns to continue to restrain consumer spending – a primary economic engine. However, the Federal Reserve Board and the Treasury have brought massive sums to bear in an effort to get the financial system back on track, and similar efforts have been launched in other leading economies. Our current forecast is for a slight decline in growth for the fourth quarter of 2008 and the first quarter of 2009. We see more consolidation, more regulation and tighter lending standards ahead.

On the positive side, prices of high-yield bonds have fallen significantly and bondholders are earning generous yields, at least for now. We think today’s low bond prices may already reflect bad news to come. In the meantime, there are large pools of cash on the sidelines. If the government’s policy initiatives succeed in thawing credit markets, the crisis could ease. A recovery might then begin some time in 2009 and prices of high-yield bonds could recover.

3

LOOMIS SAYLES HIGH INCOME FUND

Investment Results through September 30, 2008

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 Shares⁴

Average Annual Returns — September 30, 2008⁴

	1 YEAR		5 YEARS		10 YEARS		SINCE INCEPTION
Class A (Inception 2/22/84)
Net Asset Value1	-10.98	%	5.24	%	1.27	%	—
With Maximum Sales Charge2	-14.96		4.27		0.80		—
CLASS B (Inception 9/20/93)
Net Asset Value1	-11.64		4.48		0.53		—
With CDSC3	-15.78		4.17		0.53		—
CLASS C (Inception 3/2/98)
Net Asset Value1	-11.62		4.44		0.51		—
With CDSC3	-12.45		4.44		0.51		—
CLASS Y (Inception 2/29/08)
Net Asset Value1	—		—		—		-9.10	%
COMPARATIVE PERFORMANCE	1 YEAR		5 YEARS		10 YEARS		SINCE CLASS Y INCEPTION7
Lehman High Yield Composite Index	-11.24	%	4.38	%	4.42	%	-7.60	%
Morningstar High Yield Bond Fund Avg.	-11.29		3.59		3.57		-7.00

See page 11 for a description of the indexes.

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	9/30/08	9/30/07
Aaa	17.3	15.5
Aa	2.0	1.9
A	1.0	0.7
Baa	7.6	8.9
Ba	14.9	17.4
B	28.9	24.9
Caa	16.4	15.9
Ca	0.5	—
C	0.0	—
Not Rated*	10.1	11.7
Short-term and other	1.3	3.1

Credit quality is based on ratings from Moody’s Investors Service.

* Securities that are not rated by Moody’s may be rated by another rating agency or by Loomis Sayles.

	% of Net Assets as of
EFFECTIVE MATURITY	9/30/08		9/30/07
1 year or less	16.0		4.2
1-5 years	25.7		21.9
5-10 years	28.5		19.4
10+ years	29.8		54.5
Average Effective Maturity	8.8	years	13.8	years

Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio5		Net Expense Ratio6
A	1.43	%	1.15	%
B	2.18		1.90
C	2.17		1.90
Y	1.16		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 1/31/09.

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 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 interest 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

Loomis Sayles International Bond Fund was launched February 1, 2008, at the start of what has proved to be an exceptionally volatile period for the world’s stock and bond markets. A crisis in the credit markets that began in the U.S. mortgage markets was exacerbated by failures and near-collapses of several large, international financial institutions. This led to deteriorating confidence in the financial sector globally during 2008. Investors fled to the safety of government securities in the United States and elsewhere. This global flight-to-quality led to negative performance by corporate bonds generally. At the same time, the U.S. dollar strengthened against most major foreign currencies.

Against this backdrop, the fund’s Class A shares returned -6.37% at net asset value for the eight months from the beginning of February through the end of the fiscal year on September 30, 2008, assuming reinvestment of $0.19 in dividends. For the same period, the benchmark Lehman Global Aggregate Bond ex-USD Index returned -4.44%, while the average return of funds in Morningstar’s World Bond category was -5.31%. The fund’s 30-day SEC yield as of September 30, 2008 was 3.23%.

WHAT HELPED AND WHAT HURT PERFORMANCE?

The Fund’s emphasis on corporate bonds was the primary factor in it’s underperformance relative to the Lehman index, as corporate bonds trailed government bonds in most major world markets. Investors around the world sought the safety of high-quality assets in their home markets, creating demand that drove up prices of local government bonds.

In the course of the eight-month period, the U.S. dollar staged a strong rally against most markets. In particular, European currencies and currencies of major commodity exporters declined versus the U.S. dollar. In absolute terms, this hurt the fund’s performance, but its underweight position relative to the benchmark in some of the weaker markets limited the damage. However, the fund’s holdings in bonds denominated in the Icelandic krona, the Singapore dollar and the Malaysian ringgit detracted from the fund’s return as these local markets declined during the period. We sold the fund’s holdings in Malaysian currency and were selling its Singapore holdings as the period ended.

On the positive side, the fund’s duration and yield curve strategy benefited relative returns. Its longer duration relative to the Lehman index was beneficial, as was its exposure to longer-maturity securities denominated in the euro when bond yields fell in the course of the year, elevating bond prices. Bonds denominated in euros were the largest single block in the portfolio, followed by bonds denominated in the Japanese yen.

WHAT LIES AHEAD?

Both investment-grade and high-yield debt suffered one of their worst months on record in September, as the difference in yield between higher- and lower-rated bonds widened to levels we find startling. Given the tumultuous events of recent weeks, we believe the U.S. economy will fall into recession and that world growth will be considerably weaker than in previous years. The U.S. Federal Reserve and other central banks are cutting short-term interest rates to try to stimulate economic growth and major governments around the world are taking other actions to avert major downturns.

We measure the price of credit by yield spreads – the difference in yield between higher- and lower-quality securities. Debt issues may never have been cheaper than they are right now, especially in light of our forecast for a moderate to average global recession through the end of 2008 and probably the first half of 2009.

We believe it is important to own bonds when they are discounted as a result of fear in the markets in order to capture the potential for price appreciation if fundamentals improve. We think that once this flight to quality ends, the U.S. dollar should weaken and our non-dollar holdings can begin adding value.

5

LOOMIS SAYLES INTERNATIONAL BOND FUND

Investment Results through September 30, 2008

PERFORMANCE IN PERSPECTIVE

The charts comparing the fund’s performance to an index provide you with 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 Shares⁴

Average Annual Returns — September 30, 2008⁴

	SINCE INCEPTION
CLASS A (Inception 2/1/08)
Net Asset Value1	-6.37	%
With Maximum Sales Charge2	-10.57
CLASS C (Inception 2/1/08)
Net Asset Value1	-6.95
With CDSC3	-7.87
CLASS Y (Inception 2/1/08)
Net Asset Value1	-6.39
COMPARATIVE PERFORMANCE	SINCE INCEPTION7
Lehman Global Aggregate Bond ex-USD Index	-4.44	%
Morningstar World Bond Fund Avg.	-5.31

See page 11 for a description of the indexes.

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	9/30/08
Aaa	54.2
Aa	18.7
A	8.3
Baa	10.5
Ba	3.1
B	0.5
Caa	0.7
Not Rated*	2.3
Short-term and other	1.7
Credit quality is based on ratings from Moody’s Investors Service. * Securities that are not rated by Moody’s may be rated by another rating agency or by Loomis Sayles.
	% of Net Assets as of
EFFECTIVE MATURITY	9/30/08
1 year or less	12.5
1-5 years	18.4
5-10 years	55.2
10+ years	13.9
Average Effective Maturity	8.1	years

Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio5	Net Expense Ratio6
A	1.15%	1.10	%
C	1.90	1.85
Y	0.90	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 1/31/09.

⁷ The since-inception comparative performance figures shown for all share classes are calculated from 2/1/08.

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

As the credit crunch gained momentum and economic conditions deteriorated during the 12 months ended September 30, 2008, investors’ risk aversion mounted. Early in the period, concern focused on securities representing subprime and other high-risk loans. By September the crisis had reached a crescendo. Banks had pulled back from lending even to one another, and Secretary of the Treasury Henry Paulson and Ben Bernanke, Chairman of the Federal Reserve Board, led policy makers in a series of moves designed to restore stability – a still elusive goal.

Despite the turmoil, for the fiscal year ended September 30, 2008, Loomis Sayles Limited Term Government and Agency Fund’s total return was 4.29% based on the net asset value of Class A shares and $0.49 in reinvested dividends. However, the fund lagged its benchmark and came in slightly ahead of its peer group of mutual funds for the period. The Lehman 1-5 Year Government Bond Index returned 6.74% and the average return on the funds in Morningstar’s Short Government category was 4.23%. The fund’s 30-day SEC yield as of September 30, 2008 was 3.71%.

WHAT HAPPENED TO THE MARKETS?

A prolonged period of risky lending practices came to an end as home prices declined in value. The Federal Reserve unleashed a series of initiatives, including rate cuts, designed to ease the situation. At first, this seemed to help, but as the downturn intensified, investor apprehension spread to loans of all types. A series of failures involving some of the country’s oldest and largest financial institutions contributed to a widespread crisis in confidence. The fund’s final quarter saw a rapid-fire series of surprising events, with most of the action in September. As the month ended, a comprehensive plan designed to get credit flowing again by purging bank balance sheets of distressed loans was passed into law, but no one knows how well it will work or if other intervention may be needed.

WERE THERE ANY BRIGHT SPOTS FOR THE FUND?

U.S. Treasury securities were strong performers during the year. Despite other sectors’ yield advantage, they could not keep pace with Treasuries. Spiraling demand from risk-averse investors drove prices up, causing yields to plummet. Prices of mortgage-related bonds issued and backed by federal agencies also held up relatively well, primarily due to their income advantage.

WHICH FORCES HAD THE WORST IMPACT?

Within the government-related sector, bonds issued by government sponsored entities like Freddie Mac and Fannie Mae lagged the returns on both mortgage-backed and Treasury securities, although the worst performers in the mortgage market were securities that did not have government guarantees. As the real estate markets deteriorated throughout the year, the effects spread to other markets, including corporate bonds and asset-backed securities. Investor appetite for these sectors diminished sharply as investors became increasingly risk-averse.

WHAT NOW?

We continue to emphasize high-quality, mortgage-backed securities issued by government agencies because we expect this sector to benefit from its yield advantage. We also continue to emphasize high-quality asset backed securities, including those backed by automobile loans and credit card receivables, as well as securities backed by mortgages on commercial properties. We see relatively little risk of rating downgrades on the senior holdings we selected.

By the end of September, investor fears had reached such an extreme that even high-quality securities had declined in value, creating potential opportunities across a wide range of issues and sectors. As a result of past Federal Reserve rate cuts and expectations of more cuts, the yield curve is steep, by historical standards, making longer maturity securities potentially attractive. We are on the lookout for specific opportunities to capitalize on this situation.

7

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND

Investment Results through September 30, 2008

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 Shares⁴

Average Annual Returns — September 30, 2008⁴

	1 YEAR		5 YEARS		10 YEARS
Class A (Inception 1/3/89)
Net Asset Value1	4.29	%	2.97	%	3.73	%
With Maximum Sales Charge2	1.17		2.33		3.41
Class B (Inception 9/27/93)
Net Asset Value1	3.52		2.21		3.01
With CDSC3	-1.47		1.85		3.01
Class C (Inception 12/30/94)
Net Asset Value1	3.62		2.23		3.02
With CDSC3	2.62		2.23		3.02
Class Y (Inception 3/31/94)
Net Asset Value1	4.55		3.21		4.06
COMPARATIVE PERFORMANCE	1 YEAR		5 YEARS		10 YEARS
Lehman 1-5 Yr Gov’t Bond Index	6.74	%	3.72	%	4.84	%
Morningstar Short Gov’t Fund Avg.	4.23		2.82		3.87

See page 11 for a description of the indexes.

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	9/30/08		9/30/07
Mortgage Related	67.6		60.7
Treasuries	4.6		9.3
Asset-Backed Securities	3.5		5.7
Agency	3.0		3.3
ABS Credit Card	2.7		—
Mortgage Backed Securities	2.0		1.1
Automotive	1.8		—
Hybrid ARMs	1.6		2.5
Collateralized Mortgage Obligation	0.1		0.2
Short Term Investments & Other	13.1		17.2
	% of Net Assets as of
EFFECTIVE MATURITY	9/30/08		9/30/07
1 year or less	19.0		20.9
1-5 years	74.5		63.2
5-10 years	6.5		15.9
10+ years	n/a		n/a
Average Effective Maturity	3.0	years	3.2	years

Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio5		Net Expense Ratio6
A	1.10	%	0.90	%
B	1.85		1.65
C	1.85		1.65
Y	0.75		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 1/31/09.

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

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

The cascading credit crisis that began with falling home prices and defaults on subprime mortgages led to extreme weakness in fixed-income and equity markets around the globe. Faced with growing uncertainty, investors sought to avoid as much risk as possible, abandoning investment-grade and high-yield corporate bonds and seeking safety in U.S. Treasury securities. In the weakened financial sector, banks began closing down interbank lending and leaving other potential borrowers with nowhere to turn. As the period drew to a close, the Federal Reserve Board and Congress were marshalling resources in an effort to address the spreading loss of confidence and to restore liquidity to the markets.

For the fiscal year ended September 30, 2008, Class A shares of Loomis Sayles Strategic Income Fund returned -14.54% at net asset value, including $1.01 in dividends and $0.01 in capital gains reinvested during the period. These results were significantly behind the fund’s benchmark, the Lehman Aggregate Bond Index, which returned 3.65% for the period. The fund also trailed Morningstar’s Multisector Bond category, which had an average return of -6.41%. The fund’s focus on credit sectors, the strength of the U.S. dollar and some adverse security choices all contributed to the fund’s decline in value. However, the fund’s 30-day SEC yield on September 30, 2008 was 8.42%.

WERE THERE ANY BRIGHT SPOTS FOR THE FUND?

U.S. Treasury securities led all portfolio sectors as risk-averse investors drove prices up, but depressing yields. Mortgage-related bonds issued and backed by federal agencies also held up relatively well. Overseas, global growth trends were intact for much of this 12-month period. Strong commodity prices aided returns on holdings denominated in the currencies of Mexico, Singapore and Malaysia until shrinking demand undercut prices of industrial commodities.

WHICH FORCES HAD THE WORST IMPACT?

Results for the first eight months of fiscal 2008 were not out of line with what has occurred historically during cyclical economic downturns. In keeping with our established discipline, we sought to take advantage of what appeared to be attractive valuations in anticipation of positive returns when the markets recover. However, September’s turmoil let loose a flood of market disruptions.

Much of the fund’s underperformance occurred in September, when financials, investment-grade and high-yield corporates, as well as emerging-market holdings all declined in value. Negative events surrounding several major financial institutions had direct negative impacts on performance. Holdings in the communications, technology and consumer arenas suffered as companies found it increasingly difficult to obtain loans. Global economic prospects also dimmed in the closing quarter of the fiscal period, undercutting the value of holdings tied to Iceland’s krona, the British pound and the Canadian dollar.

WHAT NOW?

This is not the first period of severe market volatility that Loomis funds have faced while building strong performance histories over prolonged periods. In each of those cases, as now, our focus was on the opportunities presented by carefully selected securities whose prices had fallen sharply.

Although the end of the current turmoil is not yet in sight, we believe attractive valuations abound in a wide range of market sectors. Low prices mean higher yields. There is also potential for substantial price appreciation if the right combination of policy initiatives allows conditions to stabilize. This stabilization is especially important in the housing market, where our analysts believe values may soon bottom. Looking past the current turbulence, we anticipate an economic upturn beginning some time next year, but limits on credit availability may hold back any recovery.

9

LOOMIS SAYLES STRATEGIC INCOME FUND

Investment Results through September 30, 2008

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 Shares⁴

Average Annual Returns — September 30, 2008⁴

	1 YEAR		5 YEARS		10 YEARS		SINCE INCEPTION
Class A (Inception 5/1/95)
Net Asset Value1	-14.54	%	5.39	%	8.44	%	—
With Maximum Sales Charge2	-18.41		4.43		7.94		—
Class B (Inception 5/1/95)
Net Asset Value1	-15.19		4.58		7.62		—
With CDSC3	-19.17		4.26		7.62		—
Class C (Inception 5/1/95)
Net Asset Value1	-15.19		4.58		7.63		—
With CDSC3	-15.99		4.58		7.63		—
Class Y (Inception 12/1/99)
Net Asset Value1	-14.34		5.65		—		7.97	%
COMPARATIVE PERFORMANCE	1 YEAR		5 YEARS		10 YEARS		SINCE CLASS Y INCEPTION5
Lehman Aggregate Bond Index	3.65	%	3.78	%	5.20	%	5.90	%
Lehman U.S. Universal Bond Index	2.32		3.89		5.38		5.97
Morningstar Multisector Bond Fund Avg.	-6.41		3.89		5.22		5.29

See page 11 for a description of the indexes.

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	9/30/08	9/30/07
Aaa	18.3	32.6
Aa	4.1	2.7
A	8.1	6.5
Baa	32.0	22.7
Ba	10.0	9.9
B	10.3	9.5
Caa	7.4	5.6
Ca	0.8	—
C	0.0	—
Not Rated*	8.8	7.4
Short-term and other	0.2	3.1

Credit quality is based on ratings from Moody’s Investor Service.

* Securities that are not rated by Moody’s may be rated by another rating agency or by Loomis Sayles.

	% of Net Assets as of
EFFECTIVE MATURITY	9/30/08		9/30/07
1 year or less	8.6		10.9
1-5 years	20.6		17.6
5-10 years	28.2		19.4
10+ years	42.6		52.1
Average Effective Maturity	13.8	years	15.6	years

Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio6		Net Expense Ratio7
A	1.01	%	1.01	%
B	1.77		1.77
C	1.75		1.75
Y	0.74		0.74

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 share performance assumes a 1.00% 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 The since-inception comparative performance figures shown for Class Y are calculated from 12/1/99.

⁶ Before reductions and reimbursements.

⁷ After reductions and reimbursements. Expense reductions are contractual and are set to expire on 1/31/09.

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.

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

INDEX/AVERAGE DESCRIPTIONS

Lehman Aggregate Bond Index is an unmanaged index of investment-grade bonds with one- to ten-year maturities issued by the U.S. government, its agencies and U.S. corporations.

Lehman Global Aggregate Bond ex-USD Index is an unmanaged index which provides a broad-based measure of the international investment-grade bond market.

Lehman High Yield Composite Index is a market-weighted, unmanaged index of fixed-rate, non-investment grade debt.

Lehman 1-5 Year Government Bond Index is an unmanaged, market-weighted index of bonds issued by the U.S. government and its agencies, with maturities between one and five years.

Lehman U.S. Credit Index is an unmanaged index that includes all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC-registered, U.S. investment-grade corporate debt, and foreign debt that meets specific maturity, liquidity and quality requirements.

Lehman U.S. Universal Bond Index is an unmanaged index representing a blend of the Lehman Aggregate Bond Index, the High Yield Index, and the Emerging Market Index, among other indexes.

Morningstar Fund Averages are the average performance without sales charge 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, 2008 is available from the funds’ website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

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

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

11

UNDERSTANDING FUND EXPENSES

As a mutual fund shareholder, you incur different costs: transaction costs, including sales charges (loads) on purchases, redemption fees and 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 assesses a minimum balance fee of $20 on an annual basis for accounts that fall below the required minimum to establish an account. Certain exemptions may apply. These costs are described in more detail in the funds’ 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 April 1, 2008 through September 30, 2008. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example $8,600 account value divided by $1,000 = 8.60) and multiply the result by the number in the Expenses Paid During Period column as shown below for your Class.

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

Please note that the expenses shown reflect ongoing costs only, and do not include any transaction costs such as sales charges, 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 4/1/08	ENDING ACCOUNT VALUE 9/30/08	EXPENSES PAID DURING PERIOD* 4/1/08 – 9/30/08
Class A
Actual	$1,000.00	$949.90	$4.39
Hypothetical (5% return before expenses)	$1,000.00	$1,020.50	$4.55
Class B
Actual	$1,000.00	$946.30	$8.03
Hypothetical (5% return before expenses)	$1,000.00	$1,016.75	$8.32
Class C
Actual	$1,000.00	$946.60	$8.03
Hypothetical (5% return before expenses)	$1,000.00	$1,016.75	$8.32
Class Y
Actual	$1,000.00	$951.30	$3.17
Hypothetical (5% return before expenses)	$1,000.00	$1,021.75	$3.29

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 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 366 (to reflect the half-year period).

12

UNDERSTANDING FUND EXPENSES

LOOMIS SAYLES HIGH INCOME FUND	BEGINNING ACCOUNT VALUE 4/1/08	ENDING ACCOUNT VALUE 9/30/08	EXPENSES PAID DURING PERIOD* 4/1/08 – 9/30/08
CLASS A
Actual	$1,000.00	$913.50	$5.50
Hypothetical (5% return before expenses)	$1,000.00	$1,019.25	$5.81
CLASS B
Actual	$1,000.00	$910.10	$9.07
Hypothetical (5% return before expenses)	$1,000.00	$1,015.50	$9.57
CLASS C
Actual	$1,000.00	$910.20	$9.07
Hypothetical (5% return before expenses)	$1,000.00	$1,015.50	$9.57
CLASS Y1
Actual	$1,000.00	$914.40	$4.31
Hypothetical (5% return before expenses)	$1,000.00	$1,020.50	$4.55

* 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 366 (to reflect the half-year period).

¹ Class Y commenced operations on February 29, 2008.

LOOMIS SAYLES INTERNATIONAL BOND FUND1	BEGINNING ACCOUNT VALUE 4/1/08	ENDING ACCOUNT VALUE 9/30/08	EXPENSES PAID DURING PERIOD* 4/1/08 – 9/30/08
CLASS A
Actual	$1,000.00	$893.30	$5.21
Hypothetical (5% return before expenses)	$1,000.00	$1,019.50	$5.55
CLASS C
Actual	$1,000.00	$888.30	$8.73
Hypothetical (5% return before expenses)	$1,000.00	$1,015.75	$9.32
CLASS Y
Actual	$1,000.00	$892.90	$4.02
Hypothetical (5% return before expenses)	$1,000.00	$1,020.75	$4.29

* 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 366 (to reflect the half-year period).

¹ Fund commenced operations on February 1, 2008.

13

UNDERSTANDING FUND EXPENSES

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND	BEGINNING ACCOUNT VALUE 4/1/08	ENDING ACCOUNT VALUE 9/30/08	EXPENSES PAID DURING PERIOD* 4/1/08 – 9/30/08
CLASS A
Actual	$1,000.00	$1,005.30	$4.51
Hypothetical (5% return before expenses)	$1,000.00	$1,020.50	$4.55
CLASS B
Actual	$1,000.00	$1,001.50	$8.26
Hypothetical (5% return before expenses)	$1,000.00	$1,016.75	$8.32
CLASS C
Actual	$1,000.00	$1,002.40	$8.26
Hypothetical (5% return before expenses)	$1,000.00	$1,016.75	$8.32
CLASS Y
Actual	$1,000.00	$1,006.50	$3.26
Hypothetical (5% return before expenses)	$1,000.00	$1,021.75	$3.29

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 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 366 (to reflect the half-year period).

LOOMIS SAYLES STRATEGIC INCOME FUND	BEGINNING ACCOUNT VALUE 4/1/08	ENDING ACCOUNT VALUE 9/30/08	EXPENSES PAID DURING PERIOD* 4/1/08 – 9/30/08
CLASS A
Actual	$1,000.00	$866.20	$4.53
Hypothetical (5% return before expenses)	$1,000.00	$1,020.15	$4.90
CLASS B
Actual	$1,000.00	$862.80	$8.01
Hypothetical (5% return before expenses)	$1,000.00	$1,016.40	$8.67
CLASS C
Actual	$1,000.00	$862.20	$8.01
Hypothetical (5% return before expenses)	$1,000.00	$1,016.40	$8.67
CLASS Y
Actual	$1,000.00	$866.60	$3.36
Hypothetical (5% return before expenses)	$1,000.00	$1,021.40	$3.64

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 0.97%, 1.72%, 1.72% and 0.72% for Class A, B, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

14

BOARD APPROVAL OF THE EXISTING ADVISORY AND SUB-ADVISORY AGREEMENTS

The Board of Trustees, including the Independent Trustees, considers matters bearing on each Fund’s advisory agreement, or with respect to a newly formed fund, proposed advisory agreement (collectively, the “Agreements”) at most of its meetings throughout the year. Each year, usually in the spring, the Contract Review and Governance Committee of the Board meets to review the Agreements to determine whether to recommend that the full Board approve the continuation of the Agreements, typically for an additional one-year period with respect to existing Funds, and an initial two-year term for funds that are newly formed, such as Loomis Sayles International Bond Fund. After the Committee has made its recommendation, the full Board, including the Independent Trustees, determines whether to approve the continuation of the Agreements.

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

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

The Board of Trustees most recently approved the continuation of the existing Agreements at their meeting held in June 2008. The Agreements were continued for a one-year period for all Funds. With respect to Loomis Sayles International Bond Fund, the Trustees, including the Independent Trustees, unanimously approved the Agreement for the Fund for an initial two-year term at an in-person meeting held in November 2007. In considering whether to approve the continuation of the Agreements, the Board of Trustees, including the Independent Trustees, did not identify any single factor as determinative. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included the following:

The nature, extent and quality of the services provided to the Funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided or to be provided by the Adviser and its affiliates to the Funds and the resources dedicated or to be dedicated to the Funds by the Adviser and its affiliates, including recent or planned investments by the Adviser in additional personnel or other resources. They also took note of the competitive market for talented personnel, in particular, for personnel who have contributed to the generation of strong investment performance. They considered the need for the Adviser to offer competitive compensation in order to attract and retain capable personnel. In the case of Loomis Sayles Strategic Income Fund, which had experienced substantial net cash inflows, the Trustees considered factors including (1) the additional efforts required to manage the Fund’s portfolio in such circumstances (including the need to identify additional portfolio securities for investment as the portfolio grows), (2) the additional personnel and other resources required to manage the portfolio in such circumstances, (3) the possible

15

BOARD APPROVAL OF THE EXISTING ADVISORY AND SUB-ADVISORY AGREEMENTS

effects of such cash inflows on the Fund’s ability to achieve attractive investment returns and (4) the benefits to the Fund of such net cash inflows (including lower expense ratios).

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

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

Investment performance of the Funds and the Advisers. As noted above, the Trustees received information about the performance of the Funds over various time periods, including information which compared the performance of the Funds to the performance of peer groups of funds and the Funds’ respective performance benchmarks. In addition, the Trustees also reviewed data prepared by an independent third party which analyzed the performance of the Funds using a variety of performance metrics, including metrics which also measured the performance of the Funds on a risk adjusted basis. Because Loomis Sayles International Bond Fund had not yet commenced operations, performance information for that Fund was not considered, although the Board considered the performance of the Fund’s Adviser.

With respect to each Fund, the Board concluded that the Fund’s performance and/or other relevant factors supported the renewal or approval of the Agreement relating to that Fund. In the case of each Fund that had performance that lagged that of a relevant peer group for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Funds’ Agreements. These factors varied from Fund to Fund, but included one or more of the following: (1) that the underperformance was attributable, to a significant extent, to investment decisions (such as security selection or sector allocation) by the Fund’s Adviser that were reasonable and consistent with the Fund’s investment objective and policies and (2) reductions in the Fund’s expense levels resulting from decreased expenses and/or increased assets were not yet fully reflected in the Fund’s performance results.

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

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the performance of the Funds and the Adviser and/or other relevant factors supported the renewal or approval of the Agreements.

The costs of the services to be provided and profits to be realized by the Adviser and its affiliates from their respective relationships with the Funds. The Trustees considered the fees charged or to be charged to the Funds for advisory services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and also by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Advisers to comparable accounts. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage mutual fund assets. In evaluating each Fund’s advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund. The Trustees considered that over the past several years, management had made recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense caps for various Funds in the Fund family. They noted that, as of December 31, 2007, all of the Natixis Funds in this report have expense caps in place, and they considered the amounts waived or reimbursed by the Adviser under these caps. The Trustees noted that the Loomis Sayles Strategic Income Fund had an advisory fee rate that was above the median of a peer group of Funds. The Trustees considered the circumstances that accounted for such relatively higher expenses. The Trustees noted that for the Loomis Sayles Strategic Income Fund, the Fund’s total expense ratio was below the median even though the advisory fee was above the median. For Loomis Sayles Strategic Income Fund, the Trustees also considered that management was recommending an additional breakpoint in the advisory fee schedule.

16

BOARD APPROVAL OF THE EXISTING ADVISORY AND SUB-ADVISORY AGREEMENTS

The Trustees also considered the compensation directly or indirectly received or to be received by the Adviser and its affiliates from their relationships with the Funds. The Trustees reviewed information provided by management as to the profitability of the Advisers’ and their affiliates’ relationships with the Funds, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management about the effect of distribution costs and Fund growth on Adviser profitability, including information regarding resources spent on distribution activities and the increase in net sales for the family of funds. When reviewing profitability, the Trustees also considered information about court cases in which adviser profitability was an issue, the performance of the relevant Funds, the expense levels of the Funds, and whether the Adviser had implemented breakpoints and/or expense caps with respect to such Funds.

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

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense waivers. The Trustees noted that each of the Funds was subject to an expense cap or waiver. The Trustees also considered management’s representation that for certain Funds, the Funds’ Adviser did not benefit from economies of scale in providing services to the Funds (because of the investment style of the Fund, the small size of the Fund or for other reasons). For Loomis Sayles Strategic Income Fund, the Trustees considered that management proposed implementing an additional breakpoint in response to the growth of assets in the Fund. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Funds, as discussed above.

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

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

· whether each Fund, other than Loomis Sayles International Bond Fund, has operated in accordance with its investment objective and the Fund’s record of compliance with its investment restrictions, and the compliance programs of the Funds and the Adviser. They also considered the compliance-related resources the Adviser and its affiliates were providing or would be providing to the Funds.

· the nature, quality, cost and extent of administrative and shareholder services performed or to be performed by the Adviser and its affiliates, both under the Agreements and under separate agreements covering administrative services.

· so-called “fallout benefits” to the Adviser, such as the engagement of affiliates of the existing or potential Adviser to provide distribution, administrative and brokerage services to the Funds, and the benefits of research made available to the Adviser by reason of brokerage commissions generated by the Funds’ securities transactions. The Trustees considered the possible conflicts of interest associated with these fallout and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest.

Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Trustees, including the Independent Trustees, concluded that each of the existing advisory agreements should be continued through June 30, 2009 and that the advisory agreement for Loomis Sayles International Bond Fund should be continued until November 16, 2009.

17

LOOMIS SAYLES CORE PLUS BOND FUND — PORTFOLIO OF INVESTMENTS

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 96.4% of Net Assets
		Asset-Backed Securities — 2.5%
$	189,062	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A2, 3.872%, 3/25/2020	$	181,743
	1,095,000	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 4.615%, 2/25/2035		786,320
	3,314,587	Countrywide Asset-Backed Certificates, Series 2006-S4, Class A3, 5.804%, 7/25/2034		2,154,482
	1,118,858	Residential Asset Securities Corp., Series 2003-KS10, Class AI4, 4.470%, 3/25/2032		984,708
	276,553	WFS Financial Owner Trust, Series 2004-4, Class A4, 3.440%, 5/17/2012		271,697
				4,378,950
		Automotive — 0.8%
	955,000	Ford Motor Co., 7.450%, 7/16/2031(b)		410,650
	865,000	Ford Motor Credit Co., 7.000%, 10/01/2013		531,592
	810,000	Ford Motor Credit Co., 8.000%, 12/15/2016		512,145
				1,454,387
		Banking — 2.7%
	1,970,000	Bank of America Corp., 5.750%, 12/01/2017		1,670,536
	1,670,000	Citigroup, Inc., 6.500%, 8/19/2013		1,484,243
	735,000	HSBC Finance Corp., 7.000%, 5/15/2012		714,275
	825,000	JPMorgan Chase & Co., 6.000%, 1/15/2018		752,294
				4,621,348
		Brokerage — 4.0%
	1,365,000	Bear Stearns Cos., Inc. (The), 6.400%, 10/02/2017		1,274,769
	625,000	Goldman Sachs Group, Inc., 5.300%, 2/14/2012		563,278
	1,040,000	Goldman Sachs Group, Inc., 6.150%, 4/01/2018		864,775
	1,230,000	Merrill Lynch & Co., Inc., 5.450%, 2/05/2013		1,108,010
	1,670,000	Merrill Lynch & Co., Inc., 6.875%, 4/25/2018		1,477,532
	800,000	Morgan Stanley, 4.000%, 1/15/2010		656,007
	615,000	Morgan Stanley, 5.375%, 10/15/2015		381,174
	435,000	Morgan Stanley, Series F, MTN, 6.625%, 4/01/2018		287,879
	515,000	Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		319,264
				6,932,688
		Building Materials — 0.7%
	815,000	Owens Corning, Inc., 7.000%, 12/01/2036		655,159
	795,000	USG Corp., 6.300%, 11/15/2016		600,225
				1,255,384

Principal Amount (‡)		Description	Value (†)
		Construction Machinery — 0.1%
$	220,000	Caterpillar Financial Service Corp., 5.450%, 4/15/2018	$	196,820
		Diversified Manufacturing — 0.6%
	1,200,000	Crane Co., 6.550%, 11/15/2036		1,093,007
		Electric — 1.9%
	290,000	AES Corp., 7.750%, 10/15/2015		263,175
	570,000	AES Corp., 8.000%, 10/15/2017		514,425
	950,000	Enersis SA, Chile, 7.375%, 1/15/2014(b)		959,284
	355,000	Florida Power & Light Co., 4.950%, 6/01/2035		284,976
	690,000	Ipalco Enterprises, Inc., 144A, 7.250%, 4/01/2016		658,950
	590,000	Southern California Edison Co., 7.625%, 1/15/2010		612,804
				3,293,614
		Food & Beverage — 1.4%
	815,000	Dean Foods Co., 7.000%, 6/01/2016(b)		709,050
	815,000	Dr Pepper Snapple Group, Inc., 144A, 6.820%, 5/01/2018		786,685
	925,000	Kraft Foods, Inc., 6.875%, 2/01/2038		851,578
				2,347,313
		Government Guaranteed — 4.5%
	138,000,000	Kreditanstalt fuer Wiederaufbau, 1.850%, 9/20/2010 (JPY)		1,319,423
	472,000,000	Kreditanstalt fuer Wiederaufbau, EMTN, 2.050%, 9/21/2009 (JPY)		4,484,903
	210,000,000	Oesterreichische Kontrollbank AG, 1.800%, 3/22/2010 (JPY)		1,999,039
				7,803,365
		Government Owned — No Guarantee — 0.6%
	1,098,000	Pemex Project Funding Master Trust, 7.875%, 2/01/2009		1,108,361
		Healthcare — 0.9%
	575,000	HCA, Inc., 7.500%, 12/15/2023		421,216
	485,000	Hospira, Inc., 6.050%, 3/30/2017		462,420
	670,000	Medco Health Solutions, 7.250%, 8/15/2013		710,326
				1,593,962
		Hybrid ARMs — 0.3%
	525,619	JPMorgan Mortgage Trust, Series 2006-A7, Class 1A3, 5.924%, 1/25/2037(c)		512,574
		Independent Energy — 1.1%
	290,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		253,750
	385,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		329,175
	830,000	TEPPCO Partners LP, 7.550%, 4/15/2038		737,843

See accompanying notes to financial statements.

18

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Independent Energy — continued
$	825,000	XTO Energy, Inc., 6.375%, 6/15/2038	$	673,608
				1,994,376
		Media Cable — 2.2%
	1,470,000	Comcast Corp., 6.950%, 8/15/2037		1,253,841
	755,000	Cox Communications, Inc., 6.750%, 3/15/2011		766,915
	1,085,000	CSC Holdings, Inc., Senior Note, Series B, 7.625%, 4/01/2011		1,041,600
	873,000	Time Warner Cable, Inc., 6.550%, 5/01/2037		707,032
				3,769,388
		Metals & Mining — 0.8%
	890,000	Steel Dynamics, Inc, 7.375%, 11/01/2012		814,350
	710,000	United States Steel Corp., 6.650%, 6/01/2037		528,033
				1,342,383
		Mortgage Backed Securities — 4.4%
	795,000	Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A2, 5.165%, 9/10/2047		776,619
	850,000	Banc of America Commercial Mortgage, Inc., Series 2006-1, Class A2, 5.334%, 9/10/2045		821,822
	1,305,000	Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A2, 5.634%, 4/10/2049		1,218,643
	1,245,000	Bear Stearns Commercial Mortgage Securities, Inc., Series 2005-PW10, Class A2, 5.270%, 12/11/2040		1,219,023
	710,000	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD2, Class A2, 5.408%, 1/15/2046		687,363
	1,500,000	GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A, 4.751%, 7/10/2039		1,345,784
	1,710,000	LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A3, 4.647%, 7/15/2030		1,626,365
				7,695,619
		Mortgage Related — 34.9%
	960,000	Credit Suisse Mortgage Capital Certificates, Series 2008-C1, Class A3, 6.219%, 2/15/2041(c)		844,389
	914,744	FHLMC, 4.000%, 7/01/2019		875,279
	1,678,493	FHLMC, 4.500%, 12/01/2034		1,592,534
	439,396	FHLMC, 5.000%, 11/01/2018		440,748
	1,217,558	FHLMC 5.500%, with various maturities in 2018(d)		1,235,399
	1,543,566	FHLMC, 5.949%, 11/01/2036(c)		1,555,450
	178,555	FHLMC, 6.000%, 6/01/2035		181,590

Principal Amount (‡)		Description	Value (†)
		Mortgage Related — continued
$	722,573	FNMA, 4.000%, 6/01/2019	$	691,398
	5,061,559	FNMA 4.500%, with various maturities from 2019 to 2035(d)		4,901,998
	5,770,000	FNMA, 5.000%, 2/13/2017		5,897,875
	936,694	FNMA, 5.500%, 5/01/2018		951,777
	2,333,381	FNMA 6.000%, with various maturities from 2016 to 2034(d)		2,375,566
	1,316,549	FNMA, 6.044%, 2/01/2037(c)		1,325,492
	1,632,821	FNMA 6.500%, with various maturities from 2029 to 2036(d)		1,679,134
	1,863,599	FNMA, 6.500%, 11/01/2037		1,912,934
	207,551	FNMA 7.000%, with various maturities in 2030(d)		218,176
	205,805	FNMA 7.500%, with various maturities from 2024 to 2032(d)		222,361
	13,382,003	GNMA 5.000%, with various maturities from 2035 to 2038(d)		13,141,990
	8,455,194	GNMA 5.500%, with various maturities from 2034 to 2038(d)		8,473,502
	2,890,651	GNMA, 5.500%, 2/15/2037		2,897,998
	5,791,987	GNMA 6.000%, with various maturities from 2029 to 2037(d)		5,888,084
	637,516	GNMA 6.500%, with various maturities from 2028 to 2032(d)		656,257
	360,579	GNMA 7.000%, with various maturities from 2025 to 2029(d)		380,819
	121,982	GNMA 7.500%, with various maturities from 2025 to 2030(d)		131,731
	60,357	GNMA, 8.000%, 11/15/2029		66,239
	116,618	GNMA 8.500%, with various maturities from 2017 to 2023(d)		128,646
	20,669	GNMA 9.000%, with various maturities in 2016(d)		22,593
	42,682	GNMA 11.500%, with various maturities from 2013 to 2015(d)		48,703
	1,800,000	Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A2, 5.117%, 4/10/2037		1,762,939
				60,501,601
		Non-Captive Consumer — 0.7%
	215,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		133,300
	120,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		66,000
	35,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		21,700
	825,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		561,000
	245,000	SLM Corp., MTN, 5.050%, 11/14/2014		149,450

See accompanying notes to financial statements.

19

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Non-Captive Consumer — continued
$	420,000	SLM Corp., MTN, 5.625%, 8/01/2033	$	210,000
				1,141,450
		Non-Captive Diversified — 3.2%
	20,000	CIT Group, Inc., 5.400%, 2/13/2012		11,497
	207,000	CIT Group, Inc., 5.400%, 1/30/2016		100,188
	396,000	CIT Group, Inc., 5.650%, 2/13/2017		193,235
	395,000	CIT Group, Inc., 5.800%, 10/01/2036		180,663
	34,000	CIT Group, Inc., 5.850%, 9/15/2016(b)		16,490
	492,000	CIT Group, Inc., Series A, MTN, 6.000%, 4/01/2036		201,720
	360,000	CIT Group, Inc., GMTN, 5.000%, 2/13/2014		203,641
	338,000	CIT Group, Inc., GMTN, 5.000%, 2/01/2015		167,072
	115,000	CIT Group, Inc., MTN, 5.125%, 9/30/2014		56,713
	1,180,000	General Electric Capital Corp., 5.625%, 9/15/2017		1,012,735
	2,910,000	GMAC LLC, 6.625%, 5/15/2012		1,232,001
	930,000	GMAC LLC, 8.000%, 11/01/2031		350,868
	1,430,000	HKCG Finance Ltd., 144A, 6.250%, 8/07/2018		1,406,692
	335,000	International Lease Finance Corp., 5.000%, 4/15/2010		248,157
	205,000	International Lease Finance Corp., 6.375%, 3/25/2013		129,460
	120,000	International Lease Finance Corp., Series R, MTN, 5.300%, 5/01/2012		87,288
	40,000	International Lease Finance Corp., Series R, MTN, 5.550%, 9/05/2012		29,416
				5,627,836
		Oil Field Services — 0.5%
	190,000	Nabors Industries, Inc., 144A, 6.150%, 2/15/2018		181,148
	750,000	Weatherford International Ltd., 6.500%, 8/01/2036		646,531
				827,679
		Paper — 1.2%
	565,000	Georgia-Pacific Corp., 7.375%, 12/01/2025		456,237
	755,000	Georgia-Pacific Corp., 7.750%, 11/15/2029		622,875
	735,000	Georgia-Pacific Corp., 8.000%, 1/15/2024		646,800
	365,000	Georgia-Pacific Corp., 8.875%, 5/15/2031		317,550
				2,043,462

Principal Amount (‡)		Description	Value (†)
		Pipelines — 0.7%
$	1,150,000	NGPL Pipeco LLC, 144A, 6.514%, 12/15/2012	$	1,151,863
		Property & Casualty Insurance — 0.2%
	475,000	Willis North America, Inc., 6.200%, 3/28/2017		412,993
		Real Estate Investment Trusts — 0.9%
	195,000	Colonial Realty, LP, Senior Note, 4.750%, 2/01/2010		188,486
	640,000	Colonial Realty, LP, Senior Note, 5.500%, 10/01/2015		549,965
	1,250,000	iStar Financial, Inc., Senior Note, 6.000%, 12/15/2010(b)		746,875
				1,485,326
		Sovereigns — 2.1%
	296,000,000	Canadian Government, 1.900%, 3/23/2009(b) (JPY)		2,795,431
	925,000	Indonesia Government International Bond, 144A, 7.750%, 1/17/2038		832,500
				3,627,931
		Supranational — 1.2%
	217,000,000	Inter-American Development Bank, 1.900%, 7/08/2009 (JPY)		2,055,392
		Technology — 3.6%
	745,000	Corning, Inc., 7.250%, 8/15/2036		660,419
	540,000	Equifax, Inc., 7.000%, 7/01/2037		455,446
	1,180,000	Fiserv, Inc., 6.125%, 11/20/2012		1,144,211
	1,660,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016(b)		1,062,400
	605,000	Lender Processing Services, Inc., 144A, 8.125%, 7/01/2016		589,875
	85,000	Motorola, Inc., 6.500%, 9/01/2025		65,209
	115,000	Motorola, Inc., 6.500%, 11/15/2028(b)		85,939
	185,000	Motorola, Inc., 6.625%, 11/15/2037		134,855
	295,000	Nortel Networks Corp., 6.875%, 9/01/2023		118,000
	920,000	Northern Telecom Capital Corp., 7.875%, 6/15/2026		404,800
	195,000	Pitney Bowes, Inc., 5.250%, 1/15/2037		179,478
	870,000	Xerox Corp., 6.350%, 5/15/2018		795,268
	683,000	Xerox Corp., 6.400%, 3/15/2016		636,070
				6,331,970
		Telecommunications — 0.0%
	10,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		6,600
	15,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		10,050
				16,650

See accompanying notes to financial statements.

20

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Tobacco — 0.7%
$	1,185,000	Reynolds American, Inc., 7.250%, 6/15/2037	$	1,133,995
		Treasuries — 11.6%
	2,141,000	U.S. Treasury Bond, 4.500%, 2/15/2036(b)		2,197,535
	1,790,000	U.S. Treasury Bond, 4.750%, 2/15/2037		1,914,742
	1,090,000	U.S. Treasury Bond, 5.000%, 5/15/2037(b)		1,212,540
	10,559,502	U.S. Treasury Inflation Indexed Bonds, 2.375%, 1/15/2025		10,231,165
	1,700,000	U.S. Treasury Note, 3.125%, 8/31/2013(b)		1,713,015
	2,895,000	U.S. Treasury Note, 4.000%, 8/15/2018		2,936,164
				20,205,161
		Wireless — 2.1%
	1,385,000	SK Telecom Co., Ltd., 144A, 6.625%, 7/20/2027		1,250,654
	1,990,000	Sprint Capital Corp., 6.875%, 11/15/2028		1,333,300
	15,000	Sprint Capital Corp., 6.900%, 5/01/2019		11,625
	1,420,000	True Move Co. Ltd., 144A, 10.750%, 12/16/2013		965,600
				3,561,179
		Wirelines — 3.3%
	2,000,000	Embarq Corp., 7.995%, 6/01/2036		1,430,220
	935,000	Frontier Communications Corp., 7.875%, 1/15/2027		701,250
	210,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		152,775
	460,000	Qwest Corp., 6.875%, 9/15/2033		309,350
	850,000	Qwest Corp., 7.250%, 9/15/2025		633,250
	255,000	Qwest Corp., 7.250%, 10/15/2035		181,050
	1,190,000	Qwest Corp., 7.500%, 6/15/2023		934,150
	1,700,000	Telecom Italia Capital SA, 7.721%, 6/04/2038		1,408,994
				5,751,039
		Total Bonds and Notes (Identified Cost $180,827,606)		167,269,066
Shares
	Preferred Stocks — 0.3%
		Thrifts & Mortgage Finance — 0.3%
	256,000	Federal National Mortgage Association, 6.750%(f)		460,800
	4,200	Federal National Mortgage Association, 8.250%(b)(f)		9,156
		Total Preferred Stocks (Identified Cost $1,591,500)		469,956

Shares/ Principal Amount (‡)		Description	Value (†)
	Short-Term Investments — 11.2%
	10,994,292	State Street Navigator Securities Lending Prime Portfolio(e)	$	10,994,292
$	8,429,740	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $8,430,045 on 10/1/2008, collateralized by $8,790,000 Federal Home Loan Bank Discount Notes, Zero Coupon due 7/13/2009 valued at $8,603,213, including accrued interest (Note 2g of Notes to Financial Statements)		8,429,740
		Total Short-Term Investments (Identified Cost $19,424,032)		19,424,032
		Total Investments — 107.9% (Identified Cost $201,843,138)(a)		187,163,054
		Other assets less liabilities — (7.9)%		(13,704,968	)
		Net Assets — 100%	$	173,458,086
	(‡)	Principal amount is in U.S. dollars unless otherwise noted.
	(†)	See Note 2a of Notes to Financial Statements.
	(a)	Federal Tax Information: At September 30, 2008, the net unrealized depreciation on investments based on a cost of $202,179,095 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	$	1,447,513
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(16,463,554	)
		Net unrealized depreciation	$	(15,016,041	)
	(b)	All or a portion of this security was on loan to brokers at September 30, 2008.
	(c)	Variable rate security. Rate as of September 30, 2008 is disclosed.
	(d)	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.
	(e)	Represents investment of securities lending collateral.
	(f)	Future dividend payments have been eliminated as the issuer has been placed in Conservatorship.
	144A	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $7,823,967 or 4.5% of net assets.
	ARM	Adjustable Rate Mortgage
	EMTN	Euro Medium Term Note
	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
	JPY	Japanese Yen

See accompanying notes to financial statements.

21

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

Investments as of September 30, 2008

Net Asset Summary at September 30, 2008 (Unaudited)

Mortgage Related	34.9	%
Treasuries	11.6
Government Guaranteed	4.5
Mortgage Backed Securities	4.4
Brokerage	4.0
Technology	3.6
Wirelines	3.3
Non-Captive Diversified	3.2
Banking	2.7
Asset-Backed Securities	2.5
Media Cable	2.2
Sovereigns	2.1
Wireless	2.1
Other Investments, less than 2% each	15.6
Short-Term Investments	11.2
Total Investments	107.9
Other assets less liabilities	(7.9	)
Net Assets	100.0	%

See accompanying notes to financial statements.

22

LOOMIS SAYLES HIGH INCOME FUND — PORTFOLIO OF INVESTMENTS

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 82.0% of Net Assets
		ABS Car Loan — 0.7%
$	85,000	Capital One Auto Finance Trust, Series 2006-C, Class A4, 2.518%, 5/15/2013(b)	$	70,919
	275,000	Capital One Auto Finance Trust, Series 2007-C, Class A3B, 2.998%, 4/16/2012(b)		252,371
	100,000	Capital One Auto Finance Trust, Series 2007-C, Class A4, 5.230%, 7/15/2014		84,083
				407,373
		Aerospace & Defense — 0.4%
	250,000	BE Aerospace, Inc., 8.500%, 7/01/2018		242,500
		Airlines — 0.1%
	62,381	Continental Airlines, Inc., Series 1997-4, Class 4B, 6.900%, 7/02/2018		51,932
	27,077	Continental Airlines, Inc., Series 1999-1, Class C, 6.954%, 2/02/2011		25,317
				77,249
		Automotive — 2.9%
	420,000	Ford Motor Co., 6.375%, 2/01/2029		155,400
	65,000	Ford Motor Co., 6.625%, 2/15/2028		25,025
	1,220,000	Ford Motor Co., 6.625%, 10/01/2028		463,600
	210,000	Ford Motor Co., 7.450%, 7/16/2031		90,300
	40,000	Ford Motor Co., 7.500%, 8/01/2026		16,600
	550,000	Ford Motor Credit Co. LLC, 5.700%, 1/15/2010		421,210
	585,000	Goodyear Tire & Rubber Co., 7.000%, 3/15/2028		432,900
				1,605,035
		Banking — 1.8%
	250,000,000	Barclays Financial LLC, 144A, 4.060%, 9/16/2010 (KRW)		210,779
	400,000,000	Barclays Financial LLC, 144A, 4.470%, 12/04/2011 (KRW)		341,886
	1,436,358,000	JPMorgan Chase & Co., 144A, Zero Coupon, 3/28/2011 (IDR)		113,203
	500,000	Kaupthing Bank Hf, Series D, 144A, 5.750%, 10/04/2011		320,000
				985,868
		Biotechnology — 0.8%
	660,000	Affymetrix, Inc., Convertible, 3.500%, 1/15/2038		462,000
		Brokerage — 1.2%
	340,000	Goldman Sachs Group LP, 5.000%, 10/01/2014		283,583
	175,000	Goldman Sachs Group, Inc. (The), 5.150%, 1/15/2014		143,725
	350,000	Morgan Stanley, 5.375%, 10/15/2015		216,928
				644,236

Principal Amount (‡)		Description	Value (†)
		Building Materials — 0.8%
$	565,000	USG Corp., 6.300%, 11/15/2016	$	426,575
		Chemicals — 1.5%
	450,000	Borden, Inc., 7.875%, 2/15/2023		207,000
	550,000	Borden, Inc., 9.200%, 3/15/2021		275,000
	130,000	Georgia Gulf Corp., 10.750%, 10/15/2016(c)		58,500
	380,000	Hercules, Inc., Subordinated Note, 6.500%, 6/30/2029(d)		254,600
				795,100
		Construction Machinery — 1.3%
	960,000	United Rentals North America, Inc., 7.000%, 2/15/2014		672,000
	25,000	United Rentals North America, Inc., 7.750%, 11/15/2013(c)		19,063
				691,063
		Electric — 3.4%
	375,000	Dynegy Holdings, Inc., 7.125%, 5/15/2018		283,125
	180,000	Dynegy Holdings, Inc., 7.625%, 10/15/2026		131,400
	165,000	Dynegy Holdings, Inc., 7.750%, 6/01/2019		132,000
	140,000	NGC Corp. Capital Trust I, Series B, 8.316%, 6/01/2027		104,300
	205,000	NRG Energy, Inc., 7.375%, 1/15/2017		186,550
	195,000	TXU Corp., 5.550%, 11/15/2014		145,520
	1,015,000	TXU Corp., Series Q, 6.500%, 11/15/2024		646,430
	370,000	TXU Corp., Series R, 6.550%, 11/15/2034		227,344
				1,856,669
		Food & Beverage — 1.6%
	400,000	Aramark Services, Inc., 5.000%, 6/01/2012		336,000
	365,000	Dean Foods Co., 7.000%, 6/01/2016(c)		317,550
	230,000	Dole Food Co., Inc., 8.625%, 5/01/2009(c)		219,650
				873,200
		Gaming — 0.5%
	45,000	Harrah’s Operating Co., Inc., 5.750%, 10/01/2017		11,700
	535,000	Harrah’s Operating Co., Inc., 144A, 10.750%, 2/01/2016		272,850
				284,550
		Government Guaranteed — 1.4%
	28,000,000	Kreditanstalt fuer Wiederaufbau, 1.850%, 9/20/2010 (JPY)		267,709
	51,000,000	Oesterreichische Kontrollbank AG, 1.800%, 3/22/2010 (JPY)		485,481
				753,190

See accompanying notes to financial statements.

23

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Government Sponsored — 0.3%
$	160,000	Federal Home Loan Mortgage Corp., 4.625%, 10/25/2012	$	164,468
		Healthcare — 5.3%
	425,000	Advanced Medical Optics, Inc., Convertible, 3.250%, 8/01/2026		277,312
	5,000	Boston Scientific Corp., 5.450%, 6/15/2014		4,675
	105,000	Boston Scientific Corp., 6.400%, 6/15/2016		99,750
	95,000	Boston Scientific Corp., 7.000%, 11/15/2035		84,550
	220,000	CHS/Community Health Systems, Inc., 8.875%, 7/15/2015		209,000
	150,000	HCA, Inc., 5.750%, 3/15/2014		117,000
	150,000	HCA, Inc., 6.250%, 2/15/2013		125,250
	25,000	HCA, Inc., 6.375%, 1/15/2015		19,688
	205,000	HCA, Inc., 6.500%, 2/15/2016		162,463
	15,000	HCA, Inc., 7.050%, 12/01/2027		10,129
	400,000	HCA, Inc., 7.190%, 11/15/2015		319,333
	220,000	HCA, Inc., 7.500%, 12/15/2023		161,161
	700,000	HCA, Inc., 7.500%, 11/06/2033		497,000
	445,000	HCA, Inc., 7.580%, 9/15/2025		327,845
	35,000	HCA, Inc., 7.690%, 6/15/2025		26,013
	40,000	HCA, Inc., 7.750%, 7/15/2036		28,396
	40,000	HCA, Inc., 8.360%, 4/15/2024		31,003
	40,000	Invitrogen Corp., Convertible, 1.500%, 2/15/2024		36,050
	245,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		166,600
	190,000	Tenet Healthcare Corp., 7.375%, 2/01/2013(c)		172,900
				2,876,118
		Home Construction — 5.6%
	375,000	Centex Corporation, 5.250%, 6/15/2015		275,625
	350,000	D.R. Horton, Inc., 5.250%, 2/15/2015		259,000
	15,000	D.R. Horton, Inc., 6.500%, 4/15/2016		11,400
	410,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015		360,800
	385,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2015(c)		219,450
	365,000	K. Hovnanian Enterprises, Inc., Senior Note, 6.250%, 1/15/2016		209,875
	30,000	K. Hovnanian Enterprises, Inc., Guaranteed Note, 6.500%, 1/15/2014		17,700

Principal Amount (‡)		Description	Value (†)
		Home Construction — continued
$	315,000	KB Home, 5.750%, 2/01/2014(c)	$	253,575
	360,000	KB Home, Guaranteed Note, 5.875%, 1/15/2015		286,200
	590,000	KB Home, Guaranteed Note, 7.250%, 6/15/2018		483,800
	5,000	Lennar Corp., Series B, 5.125%, 10/01/2010		4,200
	580,000	Lennar Corp., Series B, Guaranteed Note, 5.600%, 5/31/2015		377,000
	155,000	Pulte Homes, Inc., 6.000%, 2/15/2035		110,825
	230,000	Pulte Homes, Inc., 6.375%, 5/15/2033		167,900
				3,037,350
		Independent Energy — 2.8%
	625,000	Chesapeake Energy Corp., 6.500%, 8/15/2017(c)		546,875
	175,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		149,625
	275,000	Hilcorp Energy I LP, 144A, 7.750%, 11/01/2015		236,500
	170,000	Pioneer Natural Resources Co., 6.875%, 5/01/2018		151,362
	485,000	Pioneer Natural Resources Co., 7.200%, 1/15/2028		417,554
				1,501,916
		Industrial Other — 0.1%
	140,000	Ranhill Labuan Ltd., 144A, 12.500%, 10/26/2011		67,200
		Media Cable — 1.5%
	655,000	CSC Holdings, Inc., Senior Note, 7.625%, 7/15/2018		569,850
	250,000	CSC Holdings, Inc., Senior Note, 7.875%, 2/15/2018		220,000
				789,850
		Media Non-Cable — 1.8%
	25,000	Clear Channel Communications, Inc., 4.900%, 5/15/2015		7,438
	50,000	Clear Channel Communications, Inc., 5.500%, 12/15/2016		14,500
	475,000	Clear Channel Communications, Inc., 6.875%, 6/15/2018		144,875
	465,000	Idearc, Inc., 8.000%, 11/15/2016		126,712
	175,000	Intelsat Corp., 6.875%, 1/15/2028		127,750
	85,000	R.H. Donnelley Corp., 6.875%, 1/15/2013		33,150
	25,000	R.H. Donnelley Corp., Series A-1, 6.875%, 1/15/2013(c)		9,750
	160,000	R.H. Donnelley Corp., Series A-2, 6.875%, 1/15/2013(c)		62,400
	615,000	R.H. Donnelley Corp., Series A-3, 8.875%, 1/15/2016(c)		209,100
	155,000	R.H. Donnelley Corp., Series A-4, 8.875%, 10/15/2017(c)		52,700

See accompanying notes to financial statements.

24

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Media Non-Cable — continued
$	605,000	Tribune Co., 5.250%, 8/15/2015(c)	$	181,500
				969,875
		Metals & Mining — 0.5%
	285,000	Steel Dynamics, Inc., 7.375%, 11/01/2012		260,775
		Non-Captive Consumer — 1.3%
	90,000	SLM Corp., Series A, MTN, 4.000%, 1/15/2010		70,650
	20,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		12,400
	10,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		5,500
	5,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		2,500
	735,000	SLM Corp., Series A, MTN, 6.500%, 6/15/2010 (NZD)		408,215
	245,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		166,600
	60,000	SLM Corp., MTN, 5.050%, 11/14/2014		36,600
				702,465
		Non-Captive Diversified — 4.0%
	95,000	CIT Group, Inc., 4.750%, 12/15/2010		61,869
	20,000	CIT Group, Inc., 5.400%, 2/13/2012		11,497
	65,000	CIT Group, Inc., 5.400%, 1/30/2016		31,460
	25,000	CIT Group, Inc., 5.650%, 2/13/2017		12,199
	280,000	CIT Group, Inc., 5.800%, 10/01/2036		128,065
	25,000	CIT Group, Inc., 5.850%, 9/15/2016		12,125
	145,000	CIT Group, Inc., GMTN, 5.000%, 2/13/2014		82,022
	65,000	CIT Group, Inc., GMTN, 5.000%, 2/01/2015		32,129
	105,000	CIT Group, Inc., MTN, 5.125%, 9/30/2014		51,781
	1,300,000	General Electric Capital Corp., Series A, MTN, 2.960%, 5/18/2012 (SGD)		887,064
	25,000	GMAC LLC, 4.750%, 9/14/2009 (EUR)		22,525
	630,000	GMAC LLC, 6.000%, 12/15/2011		280,123
	330,000	GMAC LLC, 6.625%, 5/15/2012		139,711
	40,000	GMAC LLC, 8.000%, 11/01/2031(c)		15,091
	75,000	GMAC LLC, EMTN, 5.375%, 6/06/2011 (EUR)		44,346
	195,000	GMAC LLC, EMTN, 5.750%, 9/27/2010 (EUR)		123,534
	565,000	GMAC LLC, MTN, 6.750%, 12/01/2014		216,855
	80,000	iStar Financial, Inc., 5.850%, 3/15/2017		39,200

Principal Amount (‡)		Description	Value (†)
		Non-Captive Diversified — continued
$	10,000	iStar Financial, Inc., 5.875%, 3/15/2016	$	4,900
	15,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		7,800
				2,204,296
		Oil & Gas — 0.4%
	240,000	SandRidge Energy, Inc., 144A, 8.000%, 6/01/2018		206,400
		Packaging — 0.5%
	135,000	Owens-Illinois, Inc., Senior Note, 7.800%, 5/15/2018(c)		130,950
	180,000	Stone Container Finance, 7.375%, 7/15/2014(c)		138,600
				269,550
		Paper — 3.4%
	485,000	Bowater, Inc., 6.500%, 6/15/2013(c)		186,725
	75,000	Georgia-Pacific Corp., 7.250%, 6/01/2028		59,250
	155,000	Georgia-Pacific Corp., 7.375%, 12/01/2025		125,162
	375,000	Georgia-Pacific Corp., 7.750%, 11/15/2029		309,375
	270,000	Georgia-Pacific Corp., 8.000%, 1/15/2024		237,600
	530,000	Georgia-Pacific Corp., 8.875%, 5/15/2031		461,100
	110,000	Jefferson Smurfit Corp., 7.500%, 6/01/2013(c)		89,100
	485,000	Smurfit-Stone Container Enterprises, Inc., 8.000%, 3/15/2017(c)		378,300
				1,846,612
		Pharmaceuticals — 6.2%
	640,000	Elan Finance PLC, 8.875%, 12/01/2013		537,600
	1,155,000	Elan Finance PLC, Senior Note, 7.750%, 11/15/2011		1,045,275
	127,000	EPIX Pharmaceuticals, Inc., Senior Note, Convertible, 3.000%, 6/15/2024		63,500
	540,000	Human Genome Sciences, Inc., Converitble, 2.250%, 8/15/2012		360,450
	245,000	Incyte Corp., Convertible, 3.500%, 2/15/2011		224,481
	96,000	Nektar Therapeutics, Convertible, 3.250%, 9/28/2012		48,360
	190,000	Valeant Pharmaceuticals International, Subordinated Note, Convertible, 3.000%, 8/16/2010		179,550
	505,000	Valeant Pharmaceuticals International, Subordinated Note, Convertible, 4.000%, 11/15/2013		472,806
	305,000	Vertex Pharmaceuticals, Inc., Convertible, 4.750%, 2/15/2013		460,169
				3,392,191
		Pipelines — 0.6%
	415,000	El Paso Corp., 6.950%, 6/01/2028		327,682

See accompanying notes to financial statements.

25

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Property & Casualty Insurance — 0.0%
$	30,000	MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 144A, 14.000%, 1/15/2033(c)	$	15,900
		REITs — 0.9%
	600,000	Host Hotels & Resorts, Inc., Convertible, 144A, 2.625%, 4/15/2027		465,000
		Refining — 0.2%
	150,000	Petroplus Finance Ltd., 144A, 6.750%, 5/01/2014		126,750
		Retailers — 2.4%
	500,000	Blockbuster, Inc., 9.000%, 9/01/2012(c)		357,500
	250,000	Dillard’s, Inc., 6.625%, 1/15/2018(c)		155,000
	105,000	Dillard’s, Inc., 7.130%, 8/01/2018		66,675
	30,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		23,653
	1,070,000	Toys R Us, Inc., 7.375%, 10/15/2018		695,500
	20,000	Toys R Us, Inc., 7.875%, 4/15/2013		15,600
				1,313,928
		Sovereigns — 3.6%
	44,200(††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023 (MXN)		387,892
	148,500(††)	Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012 (MXN)		1,389,693
	4,199,735	Republic of Uruguay, 4.250%, 4/05/2027 (UYU)		181,794
				1,959,379
		Supermarkets — 2.1%
	190,000	Albertson’s, Inc., 7.750%, 6/15/2026		174,642
	750,000	Albertson’s, Inc., Senior Note, 7.450%, 8/01/2029		667,072
	130,000	Albertson’s, Inc., Senior Note, 8.000%, 5/01/2031		120,478
	245,000	Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		198,498
				1,160,690
		Supranational — 3.0%
	9,210,000,000	European Investment Bank, EMTN, 144A, Zero Coupon, 4/24/2013 (IDR)(e)		583,267
	700,000	Inter-American Development Bank, 11.500%, 2/05/2009 (ISK)		6,569
	1,900,000	Inter-American Development Bank, EMTN, Zero Coupon, 5/11/2009 (BRL)		888,644
	13,400,000	International Bank for Reconstruction & Development, 9.500%, 5/27/2010 (ISK)		126,039
	800,000	Nordic Investment Bank, EMTN, 11.250%, 4/16/2009 (ISK)		7,571
				1,612,090
		Technology — 5.5%
	300,000	Affiliated Computer Services, Inc., 5.200%, 6/01/2015		242,250

Principal Amount (‡)		Description	Value (†)
		Technology — continued
$	205,000	Amkor Technology, Inc., 7.750%, 5/15/2013	$	175,275
	325,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016(c)		208,000
	345,000	JDS Uniphase Corp., Convertible, 1.000%, 5/15/2026		228,131
	330,000	Kulicke & Soffa Industries, Inc., Convertible, 0.875%, 6/01/2012		225,638
	35,000	Kulicke & Soffa Industries, Inc., Convertible, 1.000%, 6/30/2010		27,431
	1,040,000	Lucent Technologies, Inc., 6.450%, 3/15/2029		634,400
	175,000	Lucent Technologies, Inc., 6.500%, 1/15/2028		106,750
	243,000	Maxtor Corp., Subordinated Note, Convertible, 5.750%, 3/01/2012(d)		223,560
	280,000	Nortel Networks Corp., Convertible, 2.125%, 4/15/2014		134,050
	580,000	Nortel Networks Ltd., 6.875%, 9/01/2023(c)		232,000
	300,000	Nortel Networks Ltd., 10.125%, 7/15/2013		191,250
	340,000	Northern Telecom Capital Corp., 7.875%, 6/15/2026		149,600
	205,000	Seagate Technology HDD Holdings, 6.800%, 10/01/2016		179,375
	85,000	Unisys Corp., Senior Note, 8.000%, 10/15/2012		68,850
				3,026,560
		Telecommunications — 0.0%
	30,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		19,800
	5,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014 $		3,350
				23,150
		Textile — 0.4%
	375,000	Jones Apparel Group, Inc., 6.125%, 11/15/2034		234,375
		Transportation Services — 0.9%
	275,000	APL Ltd., Senior Note, 8.000%, 1/15/2024(d)		206,250
	300,000	Overseas Shipholding Group, Senior Note, 7.500%, 2/15/2024		265,500
				471,750
		Wireless — 1.7%
	5,000	ALLTEL Corp., 6.800%, 5/01/2029		4,537
	440,000	ALLTEL Corp., 7.875%, 7/01/2032		436,700
	230,000	NII Holdings, Inc., Convertible, 3.125%, 6/15/2012		170,200
	193,000	Sprint Capital Corp., 6.875%, 11/15/2028		129,310
	70,000	Sprint Capital Corp., 6.900%, 5/01/2019		54,250
	200,000	True Move Co. Ltd., 144A, 10.375%, 8/01/2014		133,460
				928,457

See accompanying notes to financial statements.

26

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

Investments as of September 30, 2008

Principal Amount (‡)	Description	Value (†)
	Wirelines — 8.6%
255,000	Bell Canada, Series M-17, 6.100%, 3/16/2035 (CAD)	$	174,411
5,000	Bell Canada, 144A, 6.550%, 5/01/2029 (CAD)		3,572
65,000	Cincinnati Bell Telephone Co., 6.300%, 12/01/2028		46,150
250,000	Cincinnati Bell, Inc., 8.375%, 1/15/2014		217,500
410,000	Embarq Corp., 7.995%, 6/01/2036		293,195
255,000	Fairpoint Communications, Inc., 144A, 13.125%, 4/01/2018		232,050
95,000	Frontier Communications Corp., 7.000%, 11/01/2025		57,950
130,000	Frontier Communications Corp., 7.125%, 3/15/2019		103,350
400,000	Frontier Communications Corp., 7.875%, 1/15/2027		300,000
80,000	Hawaiian Telcom Communications, Inc., Series B, 12.500%, 5/01/2015(c)		11,200
490,000	Level 3 Communications, Inc., Convertible, 2.875%, 7/15/2010		385,263
45,000	Level 3 Communications, Inc., Convertible, 3.500%, 6/15/2012		31,781
350,000	Level 3 Communications, Inc., Convertible, 6.000%, 9/15/2009		329,000
320,000	Level 3 Communications, Inc., Convertible, 6.000%, 3/15/2010		280,000
720,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		522,000
125,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		94,375
1,890,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		1,379,700
375,000	Qwest Capital Funding, Inc., Guaranteed Note, 6.875%, 7/15/2028		260,625
			4,722,122
	Total Bonds and Notes (Identified Cost $53,056,015)		44,781,507
Bank Loans — 0.6%
	Consumer Products — 0.0%
24,936	Mega Bloks, Inc., Term Loan B, 8.750%, 7/26/2012(f)		19,450
	Food & Beverage — 0.0%
1,306	Dole Food Co., Inc., LOC, 4.788%, 4/12/2013(f)		1,145
876	Dole Food Co., Inc., Term Loan, 4.738%, 4/12/2013(f)		769
4,624	Dole Food Co., Inc., Tranche C Term Loan, 4.795%, 4/12/2013(f)		4,055
			5,969
	Media Non-Cable — 0.5%
114,519	Idearc, Inc., Term Loan B, 5.767%, 11/17/2014(f)		68,282
224,012	Tribune Co., Tranche X, 5.541%, 6/04/2009(f)		207,490
			275,772

Principal Amount (‡)		Description	Value (†)
		Wireless — 0.1%
$	35,000	Hawaiian Telcom Communications, Inc., Term Loan C, 6.262%, 6/01/2014(f)	$	24,075
		Total Bank Loans (Identified Cost $361,233)		325,266
Shares
	Common Stocks — 1.4%
		Biotechnology — 0.5%
	8,147	Vertex Pharmaceuticals, Inc.(g)		270,806
		Chemicals — 0.4%
	11,695	Hercules, Inc.(c)		231,444
		Household Durables — 0.1%
	1,775	KB Home(c)		34,932
		Pharmaceuticals — 0.4%
	6,875	Merck & Co., Inc.		216,975
		Thrifts & Mortgage Finance — 0.0%
	5,500	Federal Home Loan Mortgage Corp.(c)		9,405
		Total Common Stocks (Identified Cost $780,419)		763,562
Shares
	Preferred Stocks — 2.1%
		Automobiles — 0.1%
	5,816	General Motors Corp., Convertible, 6.250%		46,528
		Banking — 0.1%
	3,732	Sovereign Capital Trust IV, Convertible, 4.375%		85,650
		Electric Utilities — 0.4%
	6,475	AES Trust III, Convertible, 6.750%		248,316
		Machinery — 0.1%
	2,550	United Rentals Trust I, Convertible, 6.500%		56,100
		Oil, Gas & Consumable Fuels — 0.6%
	9,500	El Paso Energy Capital Trust I, Convertible, 4.750%		316,469
		Technology — 0.7%
	799	Lucent Technologies Capital Trust I, Convertible, 7.750%		371,255
		Thrifts & Mortgage Finance — 0.1%
	300	Federal Home Loan Mortgage Corp., 5.000%(g)(i)		540
	7,900	Federal Home Loan Mortgage Corp., 5.570%(g)(i)		7,821
	2,850	Federal Home Loan Mortgage Corp., 5.660%(g)(i)		3,562
	1,000	Federal Home Loan Mortgage Corp., 5.700%(g)(i)		1,870
	1,800	Federal Home Loan Mortgage Corp., 5.790%(g)(i)		3,600
	650	Federal Home Loan Mortgage Corp., 5.810%(g)(i)		1,138
	1,400	Federal Home Loan Mortgage Corp., 5.900%(g)(i)		1,750
	350	Federal Home Loan Mortgage Corp., 6.000%(c)(g)(i)		630

See accompanying notes to financial statements.

27

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

Investments as of September 30, 2008

Shares		Description	Value (†)
		Thrifts & Mortgage Finance — continued
	600	Federal Home Loan Mortgage Corp., 6.420%(g)(i)	$	1,080
	1,350	Federal Home Loan Mortgage Corp., 6.550%(g)(i)		1,458
	7,400	Federal Home Loan Mortgage Corp., 8.375%(g)(i)		12,062
	1,200	Federal National Mortgage Association, 4.750%(c)(i)		3,720
	200	Federal National Mortgage Association, 5.125%(i)		700
	400	Federal National Mortgage Association, 5.375%(i)		1,320
	350	Federal National Mortgage Association, 5.810%(i)		1,260
	550	Federal National Mortgage Association, 6.750%(i)		990
	10,250	Federal National Mortgage Association, 8.250%(c)(i)		22,345
				65,846
		Total Preferred Stocks (Identified Cost $2,087,944)		1,190,164
	Closed-End Investment Companies — 0.1%
	3,835	Morgan Stanley Emerging Markets Debt Fund, Inc.		27,727
	2,175	Western Asset High Income Opportunity Fund, Inc.		9,440
		Total Closed-End Investment Companies (Identified Cost $45,443)		37,167
Shares/ Principal Amount (‡)
	Short-Term Investments — 19.1%
	3,523,267	State Street Navigator Securities Lending Prime Portfolio(h)		3,523,267
$	1,851	Repurchase Agreement with State Street Corp., dated 9/30/2008 at 1.300% to be repurchased at $1,851 on 10/01/2008, collateralized by $5,000 Federal Home Loan Bank, 5.300% due 10/03/2012 valued at $5,130 including accrued interest ( Note 2g of Notes to Financial Statements)		1,851
	6,915,794	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $6,916,044 on 10/01/2008, collateralized by $6,935,000 Federal National Mortgage Association, 4.330% due 7/28/2011 valued at $7,056,363, including accrued interest (Note 2g of Notes to Financial Statements)		6,915,794
		Total Short-Term Investments (Identified Cost $10,440,912)		10,440,912
		Total Investments — 105.3% (Identified Cost $66,771,966)(a)		57,538,578
		Other assets less liabilities — (5.3)%		(2,917,458	)
		Net Assets — 100%	$	54,621,120
	(‡)	Principal amount is in U.S. dollars unless otherwise noted.
	(†)	See Note 2a of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 100.

(a)	Federal Tax Information:
	At September 30, 2008, the net unrealized depreciation on investments based on a cost of $66,813,988 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	$	1,169,888
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(10,445,298	)
	Net unrealized depreciation	$	(9,275,410	)
(b)	Variable rate security. Rate as of September 30, 2008 is disclosed.
(c)	All or a portion of this security was on loan to brokers at September 30, 2008.
(d)	Illiquid security. At September 30, 2008, the value of these securities amounted to $684,410 or 1.3% of net assets.
(e)	All or a portion of this security is held as collateral for open forward contracts.
(f)	Variable rate security. Rate shown represents the weighted average rate at September 30, 2008.
(g)	Non-income producing security.
(h)	Represents investment of securities lending collateral.
(i)	Future dividend payments have been eliminated as the issuer has been placed in Conservatorship.
144A	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At September 30, 2008, the value of these securities amounted to $3,328,817 or 6.1% of net assets.
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
LOC	Letter of Credit
MTN	Medium Term Note
REITs	Real Estate Investment Trusts
BRL	Brazilian Real
CAD	Canadian Dollar
EUR	Euro
IDR	Indonesian Rupiah
ISK	Icelandic Krona
JPY	Japanese Yen
KRW	South Korean Won
MXN	Mexican Peso
NZD	New Zealand Dollar
SGD	Singapore Dollar
UYU	Uruguayan Peso

At September 30, 2008, the Fund had the following open forward foreign currency contracts:

Contract to Buy/Sell	Delivery Date	Currency	Units	Value		Unrealized Appreciation (Depreciation)
Buy	12/17/2008	Euro	45,000	$	63,556	$	(79	)
Sell	12/17/2008	Euro	180,000		254,223		1,714
Total						$	1,635

See accompanying notes to financial statements.

28

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

Investments as of September 30, 2008

Net Asset Summary at September 30, 2008 (Unaudited)

Wirelines	8.6	%
Pharmaceuticals	6.6
Technology	6.2
Home Construction	5.6
Healthcare	5.3
Non-Captive Diversified	4.0
Sovereigns	3.6
Electric	3.4
Paper	3.4
Supranational	3.0
Automotive	2.9
Independent Energy	2.8
Retailers	2.4
Media Non-Cable	2.3
Supermarkets	2.1
Other Investments, less than 2% each	24.0
Short-Term Investments	19.1
Total Investments	105.3
Other assets less liabilities (including open Forward Foreign Currency Contracts)	(5.3	)
Net Assets	100.0	%

See accompanying notes to financial statements.

29

LOOMIS SAYLES INTERNATIONAL BOND FUND — PORTFOLIO OF INVESTMENTS

Investments as of September 30, 2008

Principal Amount (‡)	Description	Value (†)
Bonds and Notes — 97.0% of Net Assets
Non-Convertible Bonds — 97.0%
	Australia — 0.4%
70,000	New South Wales Treasury Corp., 7.000%, 12/01/2010, (AUD)	$	56,612
	Austria — 2.6%
34,000,000	Oesterreichische Kontrollbank AG, 1.800%, 3/22/2010, (JPY)		323,654
	Belgium — 10.1%
110,000	Kingdom of Belgium, 3.750%, 3/28/2009, (EUR)		154,653
740,000	Kingdom of Belgium, 5.500%, 9/28/2017, (EUR)		1,114,571
			1,269,224
	Canada — 2.6%
40,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		27,359
50,000	Bombardier, Inc., 144A, 7.250%, 11/15/2016, (EUR)		63,351
255,000	Canadian Government, 4.250%, 9/01/2009, (CAD)		242,727
			333,437
	Cayman Islands — 0.4%
60,000	DASA Finance Corp., 144A, 8.750%, 5/29/2018		50,400
	France — 4.2%
45,000	Alcatel-Lucent, EMTN, 6.375%, 4/07/2014, (EUR)		50,998
50,000	Credit Agricole SA, 5.971%, 2/01/2018, (EUR)		68,414
35,000	France Telecom SA, EMTN, 3.625%, 10/14/2015, (EUR)		42,030
40,000	Lafarge SA, EMTN, 4.750%, 3/23/2020, (EUR)		42,583
50,000	Lafarge SA, EMTN, 5.375%, 6/26/2017, (EUR)		58,717
20,000	PPR, EMTN, 4.000%, 1/29/2013, (EUR)		25,678
50,000	Societe Generale, EMTN, 5.250%, 3/28/2013, (EUR)		68,994
35,000	Veolia Environnement, EMTN, 5.125%, 5/24/2022, (EUR)		43,181
10,000	Vivendi, 3.875%, 2/15/2012, (EUR)		13,263
50,000	Vivendi, 4.500%, 10/03/2013, (EUR)		63,619
50,000	Wendel, 4.875%, 5/26/2016, (EUR)		50,021
			527,498
	Germany — 21.7%
50,000	Bertelsmann AG, 3.625%, 10/06/2015, (EUR)		58,862
125,000	Hypothekenbank in Essen AG, 3.000%, 9/28/2009, (EUR)		173,016
21,000,000	Kreditanstalt fuer Wiederaufbau, 1.350%, 1/20/2014, (JPY)		198,073

Principal Amount (‡)	Description	Value (†)
	Germany — continued
11,000,000	Kreditanstalt fuer Wiederaufbau, 1.750%, 3/23/2010, (JPY)	$	104,745
10,000,000	Kreditanstalt fuer Wiederaufbau, 1.850%, 9/20/2010, (JPY)		95,610
24,000,000	Kreditanstalt fuer Wiederaufbau, 2.050%, 2/16/2026, (JPY)		219,582
185,000	Kreditanstalt fuer Wiederaufbau, 2.500%, 10/11/2010, (EUR)(b)		252,544
5,000,000	Kreditanstalt fuer Wiederaufbau, 2.600%, 6/20/2037, (JPY)		47,530
235,000	Muenchener Hypothekenbank eG, 5.000%, 1/16/2012, (EUR)		333,358
660,000	Republic of Germany, 3.750%, 1/04/2017, (EUR)(b)		913,520
265,000	Republic of Germany, 4.000%, 1/04/2037, (EUR)		337,596
			2,734,436
	Ireland — 2.2%
30,000,000	Depfa ACS Bank, Series 686, 1.650%, 12/20/2016, (JPY)		273,709
	Italy — 0.4%
50,000	Finmeccanica SpA, 4.875%, 3/24/2025, (EUR)		56,615
	Japan — 5.5%
18,000,000	Development Bank of Japan, 1.750%, 6/21/2010, (JPY)		171,507
15,000,000	Japan Finance Corp. for Municipal Enterprises, 1.350%, 11/26/2013, (JPY)		142,660
20,000,000	Japan Finance Corp. for Municipal Enterprises, 1.900%, 6/22/2018, (JPY)		192,790
21,299,200	Japan Government, 0.800%, 3/10/2016, (JPY)		187,889
			694,846
	Mexico — 0.7%
10,000(††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		87,758
	Netherlands — 1.0%
50,000	Cemex Finance Europe BV, 4.750%, 3/05/2014, (EUR)		54,028
50,000	Koninklijke (Royal) KPN NV, GMTN, 4.750%, 1/17/2017, (EUR)		61,014
10,000	Wolters Kluwer NV, 5.125%, 1/27/2014, (EUR)		13,239
			128,281
	Singapore — 1.0%
175,000	Government of Singapore, 3.625%, 7/01/2011, (SGD)		127,789
	Spain — 2.7%
23,000,000	Instituto de Credito Oficial, EMTN, 0.800%, 9/28/2009, (JPY)		215,993
100,000	Santander Issurance SA, EMTN, (fixed rate to 5/29/14, variable rate thereafter), 4.750%, 5/29/2019, (EUR)		122,037
			338,030

See accompanying notes to financial statements.

30

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

Investments as of September 30, 2008

Principal Amount (‡)	Description	Value (†)
	Supranational — 13.9%
87,100,000	European Investment Bank, 1.400%, 6/20/2017, (JPY)	$	813,219
921,000,000	European Investment Bank, EMTN, 144A, Zero Coupon, 4/24/2013, (IDR)		58,327
43,000,000	Inter-American Development Bank, 1.900%, 7/08/2009, (JPY)		407,290
50,000,000	Nordic Investment Bank, 1.700%, 4/27/2017, (JPY)(b)		478,530
			1,757,366
	Sweden — 1.0%
100,000	Telefonaktiebolaget LM Ericsson, EMTN, 5.375%, 6/27/2017, (EUR)(b)		121,862
	Switzerland — 0.6%
50,000	Credit Suisse London, EMTN, 6.125%, 8/05/2013, (EUR)		70,896
	United Arab Emirates — 0.6%
100,000	DP World Ltd., 144A, 6.850%, 7/02/2037		73,877
	United Kingdom — 10.6%
50,000	BAT International Finance PLC, EMTN, 5.375%, 6/29/2017, (EUR)		63,356
50,000	BP Capital Markets PLC, EMTN, 5.750%, 2/26/2010, (GBP)		89,406
50,000	BSKYB Finance UK PLC, EMTN, 5.750%, 10/20/2017, (GBP)		78,790
100,000	Imperial Tobacco Finance PLC, EMTN, 4.375%, 11/22/2013, (EUR)		122,987
65,000	Lloyds TSB Group PLC, 5.875%, 7/08/2014, (EUR)		90,556
50,000	Network Rail MTN Finance PLC, EMTN, 4.875%, 3/06/2009, (GBP)		89,027
100,000	Standard Chartered Bank, Series 17, 5.875%, 9/26/2017, (EUR)		123,812
195,000	United Kingdom Treasury, 4.000%, 9/07/2016, (GBP)		339,803
75,000	United Kingdom Treasury, 4.250%, 3/07/2036, (GBP)		127,105
50,000	United Kingdom Treasury, 4.750%, 3/07/2020, (GBP)		89,888
100,000	Vodafone Group PLC, EMTN, 5.375%, 6/06/2022, (EUR)		126,871
			1,341,601
	United States — 14.8%
50,000	3M Co., 5.000%, 7/14/2014, (EUR)		68,203
25,000	Ahold Finance USA, Inc., EMTN, 6.500%, 3/14/2017, (GBP)		42,163
60,000	Albertson’s, Inc., Senior Note, 8.000%, 5/01/2031(b)		55,605
100,000	AT&T, Inc., EMTN, 6.125%, 4/02/2015, (EUR)		137,374
50,000	Bristol-Myers Squibb Co., 4.625%, 11/15/2021, (EUR)		60,166
50,000	Cargill, Inc., EMTN, 5.375%, 3/02/2037, (GBP)		68,850

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	60,000	Chesapeake Energy Corp., 6.500%, 8/15/2017	$	52,500
	50,000	CIT Group, Inc., EMTN, 3.800%, 11/14/2012, (EUR)		37,987
	50,000	CIT Group, Inc., GMTN, 4.250%, 9/22/2011, (EUR)		42,043
	60,000	CSX Corp., 5.600%, 5/01/2017(b)		52,259
	60,000	Frontier Communications Corp., 6.250%, 1/15/2013		56,175
	10,000,000	General Electric Capital Corp., GMTN, 1.450%, 11/10/2011, (JPY)		85,334
	50,000	Goldman Sachs Group, Inc. (The), 6.875%, 1/18/2038, (GBP)		69,148
	45,000	HCA, Inc., 8.360%, 4/15/2024		34,879
	60,000	Host Hotels & Resorts LP, 6.375%, 3/15/2015		48,750
	100,000	HSBC Bank USA, 144A, Zero Coupon, 11/28/2011		65,600
	50,000	Kraft Foods, Inc., 6.250%, 3/20/2015, (EUR)		68,405
	25,000	Lehman Brothers Holdings, Inc., EMTN, 5.000%, 1/26/2010, (GBP)(c)		4,889
	75,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		54,375
	100,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		77,107
	50,000	Morgan Stanley, 3.750%, 3/01/2013, (EUR)		43,968
	25,000	Morgan Stanley, 5.375%, 11/14/2013, (GBP)		29,919
	75,000	Motorola, Inc., 6.625%, 11/15/2037		54,671
	50,000	Owens Brockway Glass Container, Inc., 6.750%, 12/01/2014, (EUR)		61,239
	100,000	Pfizer, Inc., 4.750%, 12/15/2014, (EUR)		138,277
	50,000	Philip Morris International, Inc., GMTN, 5.875%, 9/04/2015, (EUR)		68,665
	70,000	Qwest Corp., 6.875%, 9/15/2033		47,075
	70,000	SLM Corp., 4.500%, 7/26/2010		53,200
	100,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		126,007
	50,000	Wells Fargo & Co., 4.625%, 11/02/2035, (GBP)		65,623
				1,870,456
		Total Bonds and Notes (Identified Cost $13,244,011)		12,238,347
	Short-Term Investments — 1.6%
	208,000	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $208,008 on 10/01/2008, collateralized by $210,000 Federal Home Loan Mortgage Corp., 5.400% due 6/04/2012 valued at $216,796 including accrued interest (Note 2g of Notes to Financial Statements) (Identified Cost $208,000)		208,000

See accompanying notes to financial statements.

31

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

Investments as of September 30, 2008

	Total Investments — 98.6% (Identified Cost $13,452,011)(a)	$	12,446,347
	Other assets less liabilities —1.4%		171,000
	Net Assets — 100%	$	12,617,347
(‡)	Principal amount is in U.S. dollars unless otherwise noted.
(†)	See Note 2a of Notes to Financial Statements.
(††)	Amount shown represents units. One unit represents a principal amount of 100.
(a)	Federal Tax Information:
	At September 30, 2008, the net unrealized depreciation on investments based on a cost of $13,469,839 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	$	36,232
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(1,059,724	)
	Net unrealized depreciation	$	(1,023,492	)
(b)	All or a portion of this security is held as collateral for open forward foreign currency contracts.
(c)	Issuer has filed for bankruptcy
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 September 30, 2008, the value of these securities amounted to $311,555 or 2.5% of net assets.
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
AUD	Australian Dollar
CAD	Canadian Dollar
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
JPY	Japanese Yen
MXN	Mexican Peso
SGD	Singapore Dollar

At September 30, 2008, the Fund had the following open forward foreign currency contracts:

Contract to Buy/Sell	Delivery Date	Currency	Units	Value		Unrealized Appreciation (Depreciation)
Sell	12/17/2008	Canadian Dollar	300,000	$	282,578	$	(1,869	)
Buy	6/15/2009	Chinese Yuan Renminbi	800,000		115,300		(6,987	)
Sell	6/15/2009	Chinese Yuan Renminbi	800,000		115,300		4,921
Buy	12/17/2008	Euro	412,000		581,888		(4,862	)
Buy	12/17/2008	Euro	50,000		70,617		82
Buy	12/17/2008	Icelandic Krona	5,500,000		51,333		(8,024	)
Total						$	(16,739	)

At September 30, 2008, the Fund had the following open forward cross currency contracts:

Settlement Date	Deliver/Units of Currency	Receive/In Exchange For	Net Unrealized Depreciation
12/17/2008	Euro    64,000	Icelandic Krona    8,050,496	$	(15,253	)

Net Asset Summary at September 30, 2008 (Unaudited)

Sovereigns	31.9	%
Banking	15.2
Supranational	13.9
Government Guaranteed	7.1
Telecommunications	3.7
Finance Other	2.2
Tobacco	2.0
Other Investments, less than 2% each	21.0
Short-Term Investments	1.6
Total Investments	98.6
Other assets less liabilities (including open Forward Foreign Currency Contracts)	1.4
Net Assets	100.0	%

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

Euro	46.6	%
Japanese Yen	31.4
British Pound	8.7
United States Dollar	7.2
Canadian Dollar	2.1
Other, less than 2% each	2.6
Total Investments	98.6
Other assets less liabilities (including open Forward Foreign Currency Contracts)	1.4
Net Assets	100.0	%

See accompanying notes to financial statements.

32

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND

PORTFOLIO OF INVESTMENTS

Investments as of September 30, 2008

Principal Amount		Description	Value (†)
	Bonds and Notes — 86.9% of Net Assets
		ABS Credit Card — 2.7%
$	1,150,000	Capital One Multi-Asset Execution Trust, Series 2008-A6, Class A6, 3.588%, 3/17/2014(b)	$	1,126,957
	2,000,000	Citibank Credit Card Issuance Trust, Series 2008-A3, Class A3, 3.628%, 5/18/2011(b)		1,996,602
	600,000	Discover Card Master Trust, Series 2008-A3, Class A3, 5.100%, 10/15/2013		586,031
				3,709,590
		Asset-Backed Securities — 3.5%
	404,108	Americredit Automobiles Receivables Trust, Series 2007-DF, Class A2A, 5.660%, 1/06/2011		403,619
	339,627	Americredit Prime Automobile, Series 2007-2M, Class A2B, 2.867%, 11/08/2010(b)		335,994
	423,022	CNH Equipment Trust, Series 2007-B, Class A2A, 5.460%, 6/15/2010		424,265
	1,035,000	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 4.615%, 2/25/2035		743,234
	1,651,325	Countrywide Asset-Backed Certificates, Series 2006-S1, Class A2, 5.549%, 8/25/2021		1,500,449
	111,263	Residential Funding Mortgage Securities II, Series 2004-HI3, Class A4, 4.630%, 1/25/2020		108,178
	660,000	Residential Funding Mortgage Securities II, Series 2005-HI3, Class A4, 5.490%, 9/25/2035		619,973
	824,631	Residential Funding Mortgage Securities II, Series 2002-HI5, Class A7, 5.700%, 1/25/2028		785,409
				4,921,121
		Automotive — 1.8%
	380,000	Honda Auto Receivables Owner Trust, Series 2008-1, Class A2, 3.770%, 9/20/2010		375,665
	565,000	Merrill Auto Trust Securitization, Series 2008-1, Class 3A3, 5.500%, 3/15/2012		553,422
	425,000	Nissan Auto Receivables Owner Trust, Series 2008-B, Class A3, 4.460%, 4/16/2012		410,738
	1,088,566	USAA Auto Owner Trust, Series 2008-1, Class A2, 4.270%, 10/15/2010		1,088,155
				2,427,980
		Collateralized Mortgage Obligation — 0.1%
	146,512	Federal Home Loan Mortgage Corporation, Series 3145, Class KA, 5.000%, 8/15/2024		147,578
		Hybrid ARMs — 1.6%
	675,796	JPMorgan Mortgage Trust, Series 2006-A7, Class 1A3, 5.924%, 1/25/2037(b)		659,024
	1,840,552	Morgan Stanley Mortgage Loan Trust, Series 2005-3AR, Class 5A, 5.588%, 7/25/2035(b)		1,610,197
				2,269,221
		Mortgage Backed Securities — 2.0%
	1,400,000	Commercial Mortgage Pass Through Certificates, Series 2006-C7, Class A4, 5.768%, 6/10/2046(b)		1,265,379
	1,560,000	GS Mortgage Securities Corp. II, Series 2006-GG8, Class A2, 5.479%, 11/10/2039		1,495,970
				2,761,349

Principal Amount		Description	Value (†)
		Mortgage Related — 70.6%
$	3,000,000	Federal Home Loan Banks, 3.375%, 10/20/2010	$	3,002,334
	4,200,000	Federal Home Loan Bank, 3.625%, 11/14/2008		4,202,562
	4,500,000	Federal Home Loan Banks, 3.625%, 9/16/2011		4,500,842
	6,500,000	FHLMC, 3.875%, 6/29/2011		6,588,783
	1,600,000	FHLMC, 4.125%, 10/18/2010		1,631,459
	778,006	FHLMC, 4.500%, 5/01/2034		738,163
	8,209,184	FHLMC, 5.000%, with various maturities from 2019 to 2030(c)		8,192,732
	5,100,000	FHLMC, 5.500%, 9/15/2011		5,396,269
	5,141,083	FHLMC, 6.000%, with various maturities from 2019 to 2021(c)		5,236,648
	8,680,156	FHLMC, 6.500%, with various maturities from 2014 to 2034(c)		8,960,702
	214,793	FHLMC, 7.000%, 2/01/2016		226,844
	28,844	FHLMC, 7.500%, with various maturities from 2012 to 2026(c)		30,303
	15,066	FHLMC, 8.000%, 9/01/2015		16,076
	5,155	FHLMC, 10.000%, 7/01/2019		5,928
	179,116	FHLMC, 11.500%, with various maturities from 2015 to 2020(c)		196,630
	11,652,716	FNMA, 4.000%, with various maturities from 2018 to 2019(c)		11,236,661
	1,013,649	FNMA, 4.500%, 9/01/2019		995,574
	3,500,000	FNMA, 5.000%, 10/15/2011		3,657,059
	2,240,948	FNMA, 5.500%, with various maturities from 2017 to 2036(c)		2,249,382
	17,819,422	FNMA, 6.000%, with various maturities from 2017 to 2034(c)		18,169,758
	3,003,246	FNMA, 6.039%, 2/01/2037(b)		3,023,646
	6,174,892	FNMA, 6.500%, with various maturities from 2017 to 2037(c)		6,350,264
	600,000	FNMA, 6.625%, 9/15/2009		618,516
	278,771	FNMA, 7.000%, 12/01/2022		294,040
	455,678	FNMA, 7.500%, with various maturities from 2015 to 2032(c)		487,927
	76,612	FNMA, 8.000%, with various maturities from 2015 to 2016(c)		81,260
	113,673	GNMA, 6.000%, 12/15/2031		115,809
	424,455	GNMA, 6.500%, 5/15/2031		436,361
	323,657	GNMA, 7.000%, 10/15/2028		341,255

See accompanying notes to financial statements.

33

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND

PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Principal Amount		Description	Value (†)
		Mortgage Related — continued
$	2,012	GNMA, 9.000%, with various maturities from 2008 to 2009(c)	$	2,035
	1,965	GNMA, 9.500%, 8/15/2009		2,022
	6,146	GNMA, 12.500%, with various maturities from 2014 to 2015(c)		7,186
	62,584	GNMA, 16.000%, with various maturities from 2011 to 2012(c)		72,365
	27,955	GNMA, 17.000%, with various maturities in 2011(c)		32,352
	985,000	Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A2, 5.117%, 4/10/2037		964,720
				98,064,467
		Treasuries — 4.6%
	4,360,000	U.S. Treasury Notes, 3.625%, 12/31/2012(d)		4,511,240
	1,740,000	U.S. Treasury Notes, 4.500%, 11/30/2011(d)		1,849,157
				6,360,397
		Total Bonds and Notes (Identified Cost $121,986,345)		120,661,703
Shares/ Principal Amount
	Short-Term Investments — 16.9%
	1,085,429	State Street Navigator Securities Lending Prime Portfolio(e)		1,085,429
$	3,700,000	Federal Home Loan Bank, Discount Notes, 2.380%, 3/4/2009(f)		3,653,310
	3,680,000	Federal Home Loan Mortgage Corp., Discount Notes, 2.380%, 3/9/2009(f)		3,632,053
	4,600,000	Federal National Mortgage Association, Discount Notes, 2.760%, 2/2/2009(f)		4,553,259
	10,608,327	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $10,608,710 on 10/01/2008, collateralized by $10,715,000 Federal Home Loan Bank, 3.750% due 8/18/2009 valued at $10,822,150 including accrued interest (Note 2g of Notes to Financial Statements)		10,608,327
		Total Short-Term Investments (Identified Cost $23,553,672)		23,532,378
		Total Investments — 103.8% (Identified Cost $145,540,017)(a)		144,194,081
		Other assets less liabilities — (3.8)%		(5,326,798	)
		Net Assets — 100%	$	138,867,283
	(†)	See Note 2a of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2008, the net unrealized depreciation on investments based on a cost of $145,617,308 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	$	214,844
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(1,638,071	)
		Net unrealized depreciation	$	(1,423,227	)

(b)	Variable rate security. Rate as of September 30, 2008 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 Schedule of Investments.
(d)	All or a portion of this security was on loan to brokers at September 30, 2008.
(e)	Represents investment of securities lending collateral.
(f)	Rate represents discount rate at time of purchase.
ARM	Adjustable Rate Mortgage
FHLMC	Federal Home Loan Mortgage Corporation
FNMA	Federal National Mortgage Association
GNMA	Government National Mortgage Association

Net Asset Summary at September 30, 2008 (Unaudited)

Mortgage Related	70.6	%
Treasuries	4.6
Asset-Backed Securities	3.5
ABS Credit Card	2.7
Mortgage Backed Securities	2.0
Other Investments, less than 2% each	3.5
Short-Term Investments	16.9
Total Investments	103.8
Other assets less liabilities	(3.8	)
Net Assets	100.0	%

See accompanying notes to financial statements.

34

LOOMIS SAYLES STRATEGIC INCOME FUND — PORTFOLIO OF INVESTMENTS

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 92.2% of Net Assets
	Non-Convertible Bonds — 87.3%
		ABS Credit Card — 0.7%
$	80,700,000	Citibank Credit Card Issuance Trust, Series 2008-C6, Class C6, 6.300%, 6/20/2014	$	70,122,191
		Aerospace & Defense — 0.1%
	1,380,000	Bombardier, Inc., 144A, 6.300%, 5/01/2014		1,283,400
	2,795,000	Bombardier, Inc., 7.350%, 12/22/2026, (CAD)		2,332,515
	11,700,000	Bombardier, Inc., 144A, 7.450%, 5/01/2034		10,881,000
				14,496,915
		Airlines — 1.4%
	825,000	American Airlines, Inc., Series 1999-1, Class B, 7.324%, 4/15/2011		783,750
	673,443	American Airlines, Inc., Series 93A6, 8.040%, 9/16/2011		508,450
	16,802,000	Continental Airlines, Inc., Series B, 6.903%, 4/19/2022		11,929,420
	5,589,326	Continental Airlines, Inc., Series 1997-4, Class 4B, 6.900%, 7/02/2018		4,653,114
	5,653,378	Continental Airlines, Inc., Series 1998-1, Class 1B, 6.748%, 9/15/2018		4,522,702
	6,519,752	Continental Airlines, Inc., Series 1999-1, Class B, 6.795%, 2/02/2020		4,922,413
	1,748,369	Continental Airlines, Inc., Series 1999-1, Class C, 6.954%, 2/02/2011		1,634,725
	4,159,411	Continental Airlines, Inc., Series 1999-2, Class B, 7.566%, 9/15/2021		3,369,123
	7,452,827	Continental Airlines, Inc., Series 2000-2, Class B, 8.307%, 10/02/2019		5,924,997
	2,549,134	Continental Airlines, Inc., Series 2001-1, Class B, 7.373%, 6/15/2017		1,911,850
	235,419	Continental Airlines, Inc., Series 96-A, 6.940%, 4/15/2015		219,528
	5,442,198	Continental Airlines, Inc., Series 971A, 7.461%, 10/01/2016		4,734,712
	17,945,000	Continental Airlines, Inc., Series A, 5.983%, 4/19/2022		13,817,650
	934,936	Delta Air Lines, Inc., Series 2007-1, Class A, 6.821%, 2/10/2024		729,250
	9,589,511	Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 2/10/2024		6,520,867
	32,444,801	Delta Air Lines, Inc., Series 2007-1, Class C, 8.954%, 8/10/2014		23,684,705
	26,990,000	Northwest Airlines, Inc., Series 07-1, Class B, 8.028%, 11/01/2017(b)		16,733,800
	1,500,000	Qantas Airways Ltd., 144A, 5.125%, 6/20/2013		1,409,144
	32,710,000	Qantas Airways Ltd., 144A, 6.050%, 4/15/2016		29,944,729
	19,114,804	United Air Lines, Inc., Series 2007-1, Class A, 6.636%, 1/02/2024		14,144,955
				152,099,884
		Automotive — 1.9%
	1,853,000	Cummins, Inc., 6.750%, 2/15/2027		1,661,192

Principal Amount (‡)		Description	Value (†)
		Automotive — continued
$	2,145,000	Cummins, Inc., 7.125%, 3/01/2028	$	2,052,699
	6,500,000	FCE Bank PLC, Series E, MTN, 7.125%, 1/16/2012, (EUR)		6,130,970
	4,500,000	FCE Bank PLC, Series E, MTN, 7.125%, 1/15/2013, (EUR)		4,117,816
	17,816,000	Ford Motor Co., 6.375%, 2/01/2029		6,591,920
	1,705,000	Ford Motor Co., 6.500%, 8/01/2018		699,050
	500,000	Ford Motor Co., 6.625%, 2/15/2028		192,500
	73,114,000	Ford Motor Co., 6.625%, 10/01/2028		27,783,320
	1,940,000	Ford Motor Co., 7.125%, 11/15/2025(b)		766,300
	86,090,000	Ford Motor Co., 7.450%, 7/16/2031(b)		37,018,700
	800,000	Ford Motor Co., 7.500%, 8/01/2026		332,000
	7,640,000	Ford Motor Credit Co. LLC, Series E, MTN, 4.875%, 1/15/2010, (EUR)(b)		7,421,360
	46,872,000	Ford Motor Credit Co. LLC, 5.700%, 1/15/2010		35,896,265
	10,685,000	Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		6,566,542
	15,465,000	Ford Motor Credit Co. LLC, 7.250%, 10/25/2011		9,834,085
	1,030,000	Ford Motor Credit Co. LLC, 7.875%, 6/15/2010		786,227
	14,595,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		9,228,097
	10,625,000	Ford Motor Credit Co. LLC, 8.625%, 11/01/2010		7,534,400
	1,645,000	Ford Motor Credit Co. LLC, 9.750%, 9/15/2010		1,179,602
	2,005,000	General Motors Corp., 7.250%, 7/03/2013, (EUR)(b)		1,157,282
	7,365,000	General Motors Corp., 7.400%, 9/01/2025		2,651,400
	52,725,000	General Motors Corp., 8.250%, 7/15/2023		20,694,563
	2,530,000	General Motors Corp., 8.375%, 7/15/2033		1,012,000
	4,977,000	Goodyear Tire & Rubber Co., 7.000%, 3/15/2028		3,682,980
				194,991,270
		Banking — 5.0%
	22,125,000	BAC Capital Trust VI, 5.625%, 3/08/2035		16,890,203
	17,310,000,000	Barclays Financial LLC, 144A, 4.060%, 9/16/2010, (KRW)		14,594,354
	56,650,000,000	Barclays Financial LLC, 144A, 4.470%, 12/04/2011, (KRW)		48,419,686
	1,006,000,000	Barclays Financial LLC, 144A, 4.160%, 2/22/2010, (THB)		29,377,815
	21,340,000,000	Barclays Financial LLC, 144A, 4.460%, 9/23/2010, (KRW)		18,128,259

See accompanying notes to financial statements.

35

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

Investments as of September 30, 2008

Principal Amount (‡)	Description	Value (†)
	Banking — continued
135,000,000	Barclays Financial LLC, Series E, MTN, 144A, 4.100%, 3/22/2010, (THB)	$	3,939,161
224,520,000,000	BNP Paribas SA, Series E, MTN, 144A, Zero Coupon, 6/13/2011, (IDR)		17,187,804
18,650,000	Citibank NA, 144A, 15.000%, 7/02/2010, (BRL)		9,995,279
119,806,078	HSBC Bank USA, 144A, Zero Coupon, 11/28/2011		78,592,787
9,090,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 144A, 6.375%, 4/30/2022		6,274,191
599,726,100,000	JPMorgan Chase & Co., 144A, Zero Coupon, 3/28/2011, (IDR)		47,265,794
229,157,783,660	JPMorgan Chase & Co., 144A, Zero Coupon, 4/12/2012, (IDR)		15,739,713
109,312,000,000	JPMorgan Chase & Co., 144A, Zero Coupon, 3/28/2011, (IDR)		8,603,538
92,000,000	JPMorgan Chase Bank, 144A, Zero Coupon, 5/17/2010, (BRL)		38,891,116
76,496,404,750	JPMorgan Chase Bank, 144A, Zero Coupon, 10/21/2010, (IDR)		6,381,731
2,500,000	Kaupthing Bank Hf, 144A, 3.491%, 1/15/2010(c)		1,950,000
36,300,000	Kaupthing Bank Hf, Series D, 144A, 5.750%, 10/04/2011		23,232,000
9,300,000	Kaupthing Bank Hf, Series E, 144A, 6.125%, 10/04/2016		4,929,000
60,000,000	Kreditanstalt fuer Wiederaufbau, Series E, MTN, 10.750%, 2/01/2010, (ISK)		572,551
3,283,000,000	Rabobank Nederland, 144A, 10.250%, 9/10/2009, (ISK)		30,517,592
460,000,000	Rabobank Nederland, Series E, MTN, 12.500%, 2/17/2009, (ISK)		4,287,482
9,984,000,000	Rabobank Nederland, 144A, 14.000%, 1/28/2009, (ISK)		95,131,409
			520,901,465
	Brokerage — 0.6%
2,290,000	Bear Stearns Cos., Inc. (The), 4.650%, 7/02/2018		1,793,322
1,004,000	Bear Stearns Cos., Inc. (The), 5.300%, 10/30/2015		890,161
2,220,000	Bear Stearns Cos., Inc. (The), 6.400%, 10/02/2017		2,073,251
15,520,000	Bear Stearns Cos., Inc. (The), 7.250%, 2/01/2018		14,936,060
2,540,000	Goldman Sachs Group LP, 5.000%, 10/01/2014		2,118,530
1,285,000	Goldman Sachs Group, Inc. (The), 5.150%, 1/15/2014		1,055,349
91,745,000	Lehman Brothers Holdings, Inc., 6.875%, 7/17/2037(d)		114,681
7,370,000	Lehman Brothers Holdings, Inc., MTN, (fixed rate to 5/03/2027, variable rate thereafter), 6.000%, 5/03/2032(d)		9,213
51,500,000	Merrill Lynch & Co., Inc., 10.710%, 3/08/2017, (BRL)(b)		19,215,408
3,450,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		2,660,179

Principal Amount (‡)		Description	Value (†)
		Brokerage — continued
$	565,000	Morgan Stanley, 3.875%, 1/15/2009	$	519,810
	500,000	Morgan Stanley, 5.375%, 10/15/2015		309,898
	24,443,000	Morgan Stanley, Series F, MTN, 6.625%, 4/01/2018		16,176,157
	110,000	Morgan Stanley, MTN, 5.950%, 12/28/2017		68,909
	1,300,000	Morgan Stanley, MTN, 6.250%, 8/09/2026		794,715
	110,000	Morgan Stanley, Series F, MTN, 5.450%, 1/09/2017		68,234
	8,572,000	Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		5,314,040
				68,117,917
		Building Materials — 0.9%
	17,995,000	Owens Corning, Inc., 6.500%, 12/01/2016		15,924,010
	35,725,000	Owens Corning, Inc., 7.000%, 12/01/2036		28,718,470
	4,538,000	Ply Gem Industries, Inc., 9.000%, 2/15/2012(b)		2,473,210
	43,962,000	USG Corp., 6.300%, 11/15/2016		33,191,310
	12,880,000	USG Corp., 8.000%, 1/15/2018		10,239,600
				90,546,600
		Chemicals — 0.5%
	23,584,000	Borden, Inc., 7.875%, 2/15/2023		10,848,640
	6,920,000	Borden, Inc., 8.375%, 4/15/2016		2,352,800
	8,757,000	Borden, Inc., 9.200%, 3/15/2021		4,378,500
	6,745,000	Georgia Gulf Corp., 10.750%, 10/15/2016(b)		3,035,250
	14,550,000	Hercules, Inc., Subordinated Note, 6.500%, 6/30/2029(e)		9,748,500
	1,650,000	Koppers Holdings, Inc., (Step to 9.875% on 11/15/2009), Zero Coupon, 11/15/2014(f)		1,476,750
	5,350,000	Methanex Corp., Senior Note, 6.000%, 8/15/2015		4,706,074
	6,465,000	Mosaic Global Holdings, Inc., 7.300%, 1/15/2028		6,077,100
	5,820,000	Mosaic Global Holdings, Inc., 7.375%, 8/01/2018		5,779,103
				48,402,717
		Construction Machinery — 0.2%
	2,590,000	Great Lakes Dredge & Dock Corp., Senior Subordinated Note, 7.750%, 12/15/2013		2,369,850
	1,425,000	Joy Global, Inc., 6.625%, 11/15/2036		1,206,901
	23,319,000	United Rentals North America, Inc., 7.000%, 2/15/2014		16,323,300
	2,720,000	United Rentals North America, Inc., 7.750%, 11/15/2013(b)		2,074,000
				21,974,051

See accompanying notes to financial statements.

36

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Consumer Cyclical Services — 0.8%
$	101,985,000	Western Union Co., 6.200%, 11/17/2036	$	79,694,445
		Containers & Packaging — 0.0%
	1,750,000	Owens Brockway Glass Container, Inc., 6.750%, 12/01/2014, (EUR)		2,143,376
		Electric — 4.7%
	5,565,000	AES Corp. (The), 8.375%, 3/01/2011, (GBP)		9,779,960
	4,020,000	AES Corp. (The), Senior Note, 7.750%, 3/01/2014		3,738,600
	71,400,000	Bruce Mansfield Unit, 6.850%, 6/01/2034(e)		71,200,080
	32,125,000	Cleveland Electric Illuminating Co., 5.950%, 12/15/2036		25,539,600
	8,180,000	Dominion Resources, Inc., Senior Note, Series B, 5.950%, 6/15/2035		6,767,232
	11,275,000	Dynegy Holdings, Inc., 7.125%, 5/15/2018		8,512,625
	1,000,000	Dynegy Holdings, Inc., 7.500%, 6/01/2015		845,000
	10,185,000	Dynegy Holdings, Inc., 7.625%, 10/15/2026		7,435,050
	500,000	Dynegy Holdings, Inc., 7.750%, 6/01/2019		400,000
	7,455,000	Dynegy Holdings, Inc., 8.375%, 5/01/2016		6,485,850
	95,200,000	Edison Mission Energy, 7.625%, 5/15/2027		77,112,000
	250,000	Empresa Nacional de Electricidad SA, (Endesa-Chile), 8.350%, 8/01/2013		266,993
	4,875,000	Empresa-Chile Overseas Co., 7.875%, 2/01/2027		5,105,539
	555,000	Enersis SA, Cayman Island, 7.400%, 12/01/2016		560,833
	5,310,000	ITC Holdings Corp., 144A, 6.375%, 9/30/2036		4,588,467
	1,000,000	MidAmerican Energy Holdings Co., 6.125%, 4/01/2036		841,080
	40,255,000	MidAmerican Energy Holdings Co., 6.500%, 9/15/2037		35,318,127
	31,735,000	NGC Corp. Capital Trust I, Series B, 8.316%, 6/01/2027		23,642,575
	48,500,000	Nisource Finance Corp., 6.400%, 3/15/2018		43,465,166
	2,500,000	NRG Energy, Inc., 7.250%, 2/01/2014		2,318,750
	5,000,000	NRG Energy, Inc., 7.375%, 2/01/2016		4,500,000
	1,566,625	Quezon Power (Philippines) Ltd., Senior Secured Note, 8.860%, 6/15/2017		1,558,792
	25,230,000	Reliant Energy, Inc., Senior Note, 7.875%, 6/15/2017(b)		18,670,200
	1,050,000	SP PowerAssets Ltd., EMTN, 3.730%, 10/22/2010, (SGD)		745,986
	8,785,000	Toledo Edison Co., 6.150%, 5/15/2037		7,152,413
	46,215,000	TXU Corp., Series P, 5.550%, 11/15/2014		34,488,267

Principal Amount (‡)		Description	Value (†)
		Electric — continued
$	101,030,000	TXU Corp., Series Q, 6.500%, 11/15/2024	$	64,343,683
	6,245,000	TXU Corp., Series R, 6.550%, 11/15/2034		3,837,197
	7,300,000	White Pine Hydro LLC, 6.310%, 7/10/2017(e)		7,007,584
	10,935,000	White Pine Hydro LLC, 6.960%, 7/10/2037(e)		10,554,845
	4,000,000	White Pine Hydro LLC, 7.260%, 7/20/2015(e)		3,855,500
				490,637,994
		Entertainment — 0.6%
	10,690,000	Six Flags, Inc., 9.625%, 6/01/2014(b)		5,986,400
	2,785,000	Six Flags, Inc., 9.750%, 4/15/2013(b)		1,615,300
	9,240,000	Time Warner, Inc., 6.500%, 11/15/2036		7,016,939
	11,145,000	Time Warner, Inc., 6.625%, 5/15/2029		8,901,735
	4,795,000	Time Warner, Inc., 6.950%, 1/15/2028		3,997,687
	3,150,000	Time Warner, Inc., 7.625%, 4/15/2031		2,735,334
	2,025,000	Time Warner, Inc., 7.700%, 5/01/2032		1,769,324
	32,790,000	Viacom, Inc., Class B, 6.875%, 4/30/2036		26,287,087
				58,309,806
		Food & Beverage — 1.2%
	2,085,000	Aramark Services, Inc., 5.000%, 6/01/2012		1,751,400
	23,710,000	Corn Products International, Inc., 6.625%, 4/15/2037		24,659,610
	21,290,000	Dean Foods Co., 7.000%, 6/01/2016(b)		18,522,300
	1,935,000	Dole Food Co., Inc., 8.625%, 5/01/2009		1,847,925
	37,705,000	Kraft Foods, Inc., 6.500%, 8/11/2017		36,279,864
	30,680,000	Kraft Foods, Inc., 7.000%, 8/11/2037		28,704,300
	14,120,000	Sara Lee Corp., 6.125%, 11/01/2032		12,511,873
				124,277,272
		Government Guaranteed — 1.1%
	121,095,000	Canada Housing Trust, 4.100%, 12/15/2008, (CAD)		114,204,219
		Government Owned — No Guarantee — 0.3%
	26,435,000	Abu Dhabi National Energy Co., 144A, 7.250%, 8/01/2018		25,771,772
	10,300,000	DP World Ltd., 144A, 6.850%, 7/02/2037		7,625,708
				33,397,480
		Government Sponsored — 0.8%
	23,725,000	Federal Home Loan Mortgage Corp., 4.625%, 10/25/2012(b)		24,387,521

See accompanying notes to financial statements.

37

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

Investments as of September 30, 2008

Principal Amount (‡)	Description	Value (†)
	Government Sponsored — continued
35,900,000	Federal National Mortgage Association, 2.290%, 2/19/2009, (SGD)	$	25,028,935
50,000,000	Queensland Treasury Corp., 144A, 7.125%, 9/18/2017, (NZD)		35,113,116
			84,529,572
	Health Insurnace — 0.1%
15,325,000	CIGNA Corp., 6.150%, 11/15/2036		12,911,006
	Healthcare — 4.9%
2,765,000	Boston Scientific Corp., 5.450%, 6/15/2014		2,585,275
8,230,000	Boston Scientific Corp., 6.400%, 6/15/2016		7,818,500
16,510,000	Boston Scientific Corp., 7.000%, 11/15/2035		14,693,900
18,130,000	Covidien International Finance SA, 6.000%, 10/15/2017		17,912,313
18,265,000	Covidien International Finance SA, 6.550%, 10/15/2037		17,559,880
17,785,000	HCA, Inc., 5.750%, 3/15/2014		13,872,300
3,800,000	HCA, Inc., 6.250%, 2/15/2013		3,173,000
17,035,000	HCA, Inc., 6.375%, 1/15/2015		13,415,062
49,350,000	HCA, Inc., 6.500%, 2/15/2016		39,109,875
2,074,000	HCA, Inc., 6.750%, 7/15/2013		1,742,160
14,405,000	HCA, Inc., 7.050%, 12/01/2027		9,727,552
10,694,000	HCA, Inc., 7.190%, 11/15/2015		8,537,362
17,172,000	HCA, Inc., 7.500%, 12/15/2023		12,579,349
18,745,000	HCA, Inc., 7.500%, 11/06/2033		13,308,950
13,545,000	HCA, Inc., MTN, 7.580%, 9/15/2025		9,979,008
43,253,000	HCA, Inc., 7.690%, 6/15/2025		32,147,360
8,112,000	HCA, Inc., MTN, 7.750%, 7/15/2036		5,758,709
27,895,000	HCA, Inc., 8.360%, 4/15/2024		21,620,857
11,370,000	Hospira, Inc., 6.050%, 3/30/2017		10,840,658
176,070,000	Medco Health Solutions, Inc., 7.125%, 3/15/2018		178,412,259
3,260,000	Owens & Minor, Inc., 6.350%, 4/15/2016(e)		3,174,363
1,900,000	Tenet Healthcare Corp., 6.500%, 6/01/2012		1,757,500
31,009,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		21,086,120
1,570,000	Tenet Healthcare Corp., 7.375%, 2/01/2013		1,428,700

Principal Amount (‡)		Description	Value (†)
		Healthcare — continued
$	4,480,000	Tenet Healthcare Corp., 9.250%, 2/01/2015(b)	$	4,233,600
	50,000,000	WellPoint, Inc., 6.375%, 6/15/2037		42,778,650
				509,253,262
		Home Construction — 1.9%
	2,840,000	Centex Corp., 5.250%, 6/15/2015		2,087,400
	43,470,000	D.R. Horton, Inc., 5.250%, 2/15/2015		32,167,800
	4,335,000	D.R. Horton, Inc., 5.625%, 9/15/2014		3,294,600
	16,160,000	D.R. Horton, Inc., Guaranteed Note, 5.625%, 1/15/2016		11,958,400
	1,625,000	D.R. Horton, Inc., 6.500%, 4/15/2016		1,235,000
	11,265,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015(b)		9,913,200
	4,830,000	K. Hovnanian Enterprises, Inc., Guaranteed Note, 6.250%, 1/15/2015		2,753,100
	16,075,000	K. Hovnanian Enterprises, Inc., Senior Note, 6.250%, 1/15/2016		9,243,125
	6,040,000	K. Hovnanian Enterprises, Inc., Guaranteed Note, 6.375%, 12/15/2014		3,503,200
	2,490,000	K. Hovnanian Enterprises, Inc., Guaranteed Note, 6.500%, 1/15/2014		1,469,100
	6,290,000	K. Hovnanian Enterprises, Inc., 7.500%, 5/15/2016(b)		3,648,200
	1,935,000	K. Hovnanian Enterprises, Inc., 7.750%, 5/15/2013(b)		1,093,275
	1,235,000	K. Hovnanian Enterprises, Inc., 8.875%, 4/01/2012(b)		784,225
	1,685,000	KB Home, 5.750%, 2/01/2014(b)		1,356,425
	8,340,000	KB Home, Guaranteed Note, 5.875%, 1/15/2015		6,630,300
	5,805,000	KB Home, Guaranteed Note, 6.250%, 6/15/2015(b)		4,731,075
	11,315,000	KB Home, Guaranteed Note, 7.250%, 6/15/2018		9,278,300
	23,885,000	Lennar Corp., Series A, 6.500%, 4/15/2016		16,122,375
	3,495,000	Lennar Corp., 7.625%, 3/01/2009		3,372,675
	2,720,000	Lennar Corp., Series B, 5.125%, 10/01/2010		2,284,800
	16,755,000	Lennar Corp., Series B, 5.500%, 9/01/2014		10,890,750
	5,970,000	Lennar Corp.,Series B, Guaranteed Note, 5.600%, 5/31/2015		3,880,500
	4,240,000	Pulte Homes, Inc., 5.200%, 2/15/2015		3,392,000
	46,260,000	Pulte Homes, Inc., 6.000%, 2/15/2035		33,075,900
	13,190,000	Pulte Homes, Inc., 6.375%, 5/15/2033		9,628,700
	4,245,000	Toll Brothers Financial Corp., 5.150%, 5/15/2015		3,590,060

See accompanying notes to financial statements.

38

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Home Construction — continued
$	5,245,000	Toll Corp., 8.250%, 12/01/2011	$	5,035,200
				196,419,685
		Independent Energy — 1.7%
	37,190,000	Anadarko Petroleum Corp., 5.950%, 9/15/2016		34,181,887
	45,910,000	Anadarko Petroleum Corp., 6.450%, 9/15/2036		35,995,644
	4,185,000	Chesapeake Energy Corp., 6.250%, 1/15/2017, (EUR)		4,890,065
	21,390,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		18,716,250
	22,690,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		19,399,950
	15,054,000	Connacher Oil and Gas Ltd., 144A, 10.250%, 12/15/2015		14,451,840
	6,495,000	Hilcorp Energy I LP, 144A, 7.750%, 11/01/2015		5,585,700
	7,175,000	Pioneer Natural Resources Co., 5.875%, 7/15/2016		6,181,557
	1,760,000	Pioneer Natural Resources Co., 6.875%, 5/01/2018		1,567,039
	4,798,000	Pioneer Natural Resources Co., 7.200%, 1/15/2028		4,130,771
	9,170,000	Talisman Energy, Inc., 5.850%, 2/01/2037		6,883,809
	24,260,000	Talisman Energy, Inc., 6.250%, 2/01/2038		18,842,232
	8,885,000	XTO Energy, Inc., 6.750%, 8/01/2037		7,883,811
				178,710,555
		Industrial Other — 0.1%
	20,000,000	Ranhill Labuan Ltd., 144A, 12.500%, 10/26/2011		9,600,000
		Life Insurance — 0.0%
	8,000,000	ASIF Global Financing XXVII, 144A, 2.380%, 2/26/2009, (SGD)		2,828,966
		Local Authorities — 1.6%
	79,205,000	Queensland Treasury Corp., Series 11G, 6.000%, 6/14/2011, (AUD)		62,930,890
	131,890,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(e)		102,142,210
				165,073,100
		Media Cable — 2.5%
	49,030,000	Comcast Corp., 5.650%, 6/15/2035		36,445,617
	33,675,000	Comcast Corp., 6.450%, 3/15/2037		27,161,009
	20,175,000	Comcast Corp., 6.500%, 11/15/2035		16,844,592
	166,000,000	Comcast Corp., 6.950%, 8/15/2037		141,590,198
	400,000	CSC Holdings, Inc., Senior Note, 7.875%, 2/15/2018		352,000
	250,000	CSC Holdings, Inc., Series B, Senior Note, 8.125%, 7/15/2009		247,500

Principal Amount (‡)	Description	Value (†)
	Media Cable — continued
10,000,000	Shaw Communications, Inc., 5.700%, 3/02/2017, (CAD)	$	8,412,591
20,000,000	Time Warner Cable, Inc., 6.750%, 7/01/2018		18,678,600
1,000,000	Virgin Media Finance PLC, 9.125%, 8/15/2016		837,500
5,070,000	Virgin Media Finance PLC, 9.750%, 4/15/2014, (GBP)		6,940,550
			257,510,157
	Media Non-Cable — 0.9%
14,215,000	Clear Channel Communications, Inc., 4.900%, 5/15/2015		4,228,963
4,970,000	Clear Channel Communications, Inc., 5.500%, 9/15/2014		1,540,700
14,910,000	Clear Channel Communications, Inc., 5.500%, 12/15/2016(b)		4,323,900
2,080,000	Clear Channel Communications, Inc., 5.750%, 1/15/2013		748,800
585,000	Clear Channel Communications, Inc., 6.875%, 6/15/2018		178,425
920,000	Idearc, Inc., 8.000%, 11/15/2016		250,700
225,000	Intelsat Corp., 6.875%, 1/15/2028		164,250
54,190,000	News America, Inc., 6.150%, 3/01/2037		44,182,570
11,140,000	News America, Inc., 6.200%, 12/15/2034		8,881,799
14,360,000	News America, Inc., 6.400%, 12/15/2035		12,062,845
4,335,000	R.H. Donnelley Corp., Series A-1, 6.875%, 1/15/2013(b)		1,690,650
1,910,000	R.H. Donnelley Corp., Series A-2, 6.875%, 1/15/2013(b)		744,900
470,000	R.H. Donnelley Corp., Series A-3, 8.875%, 1/15/2016		159,800
4,845,000	R.H. Donnelley Corp., Series A-4, 8.875%, 10/15/2017(b)		1,647,300
36,385,000	Tribune Co., 5.250%, 8/15/2015(b)		10,915,500
			91,721,102
	Metals & Mining — 0.3%
9,785,000	Algoma Acquistion Corp., 144A, 9.875%, 6/15/2015		8,818,731
2,450,000	OI European Group BV, 144A, 6.875%, 3/31/2017, (EUR)		2,948,990
7,000,000	United States Steel Corp., 6.050%, 6/01/2017		6,082,657
5,850,000	United States Steel Corp., 6.650%, 6/01/2037		4,350,692
16,435,000	United States Steel Corp., 7.000%, 2/01/2018		14,836,860
			37,037,930
	Mortgage Related — 0.0%
2,664,000	Federal Home Loan Mortgage Corp., MTN, 5.000%, 12/14/2018(b)		2,504,043

See accompanying notes to financial statements.

39

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Non-Captive Consumer — 3.4%
$	239,505,000	American General Finance Corp., 6.900%, 12/15/2017	$	111,056,552
	4,900,000	American General Finance Corp., MTN, 5.750%, 9/15/2016		2,240,304
	4,110,000	Countrywide Financial Corp., Series A, MTN, 3.333%, 12/19/2008(c)		4,063,467
	11,799,000	Countrywide Home Loans, Inc., Series L, MTN, 4.000%, 3/22/2011		10,151,317
	1,575,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 9.750%, 11/15/2014		1,244,250
	895,000	Residential Capital LLC, 8.125%, 11/21/2008(b)		760,750
	4,170,000	Residential Capital LLC, 8.375%, 6/30/2010(b)		959,100
	2,740,000	Residential Capital LLC, 8.500%, 6/01/2012		548,000
	121,645,000	Residential Capital LLC, 8.500%, 4/17/2013		24,329,000
	12,335,000	Residential Capital LLC, 8.875%, 6/30/2015(b)		2,467,000
	45,208,000	Residential Capital LLC, 144A, 9.625%, 5/15/2015		10,849,920
	109,950(†††)	SLM Corp., 6.000%, 12/15/2043		1,135,509
	4,700,000	SLM Corp., EMTN, Series 7, 4.750%, 3/17/2014, (EUR)		3,639,164
	20,590,000	SLM Corp., MTN, 5.050%, 11/14/2014		12,559,900
	1,450,000	SLM Corp., MTN, 5.125%, 8/27/2012		942,500
	7,160,000	SLM Corp., Series A, MTN, 4.000%, 1/15/2010		5,620,600
	51,943,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		32,204,660
	37,670,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		22,602,000
	13,370,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		7,353,500
	19,605,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		12,841,275
	22,420,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		13,900,400
	1,390,000	SLM Corp., Series A, MTN, 5.400%, 10/25/2011		973,000
	28,150,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		14,075,000
	6,100,000	SLM Corp., Series A, MTN, 6.500%, 6/15/2010, (NZD)		3,387,907
	88,180,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		59,962,400
				359,867,475
		Non-Captive Diversified — 7.7%
	6,067,000	CIT Group Funding Co. of Canada, 5.200%, 6/01/2015		2,979,437
	15,060,000	CIT Group, Inc., EMTN, 3.800%, 11/14/2012, (EUR)		11,441,693
	18,360,000	CIT Group, Inc., GMTN, 4.250%, 9/22/2011, (EUR)		15,438,205

Principal Amount (‡)	Description	Value (†)
	Non-Captive Diversified — continued
15,150,000	CIT Group, Inc., Series E, MTN, 4.650%, 9/19/2016, (EUR)(b)	$	10,452,896
90,000	CIT Group, Inc., 4.750%, 12/15/2010		58,612
4,855,000	CIT Group, Inc., Series G, MTN, 5.000%, 5/13/2014, (EUR)		3,496,221
1,525,000	CIT Group, Inc., 5.400%, 2/13/2012		876,683
1,205,000	CIT Group, Inc., 5.400%, 1/30/2016		583,221
20,350,000	CIT Group, Inc., Series E, Senior Note, MTN, 5.500%, 12/01/2014, (GBP)		18,059,383
10,500,000	CIT Group, Inc., Series E, MTN, 5.500%, 12/20/2016, (GBP)		9,310,437
2,000,000	CIT Group, Inc., 5.600%, 4/27/2011		1,288,060
2,395,000	CIT Group, Inc., 5.650%, 2/13/2017(b)		1,168,683
11,845,000	CIT Group, Inc., 5.800%, 10/01/2036		5,417,595
20,000	CIT Group, Inc., 5.850%, 9/15/2016		9,700
246,450,000	CIT Group, Inc., 7.625%, 11/30/2012		156,339,501
3,090,000	CIT Group, Inc., Series A, MTN, 6.000%, 4/01/2036		1,266,900
60,000	CIT Group, Inc., GMTN, 4.250%, 2/01/2010		39,546
6,330,000	CIT Group, Inc., GMTN, 5.000%, 2/13/2014		3,580,685
1,125,000	CIT Group, Inc., GMTN, 5.000%, 2/01/2015		556,084
20,730,000	CIT Group, Inc., MTN, 4.250%, 3/17/2015, (EUR)		14,304,858
10,140,000	CIT Group, Inc., MTN, 5.125%, 9/30/2014		5,000,612
65,300,000	General Electric Capital Corp., Series G, MTN, 2.960%, 5/18/2012, (SGD)		44,557,882
243,057,000	General Electric Capital Corp., 6.500%, 9/28/2015, (NZD)		144,897,905
30,350,000	General Electric Capital Corp., Series A, MTN, 6.625%, 2/04/2010, (NZD)		19,475,013
3,100,000	General Electric Capital Corp., Series E, MTN, 6.125%, 5/17/2012, (GBP)		5,067,288
79,035,000	General Electric Capital Corp., Series E, MTN, 6.750%, 9/26/2016, (NZD)		47,038,273
115,000,000	General Electric Capital Corp., Series G, MTN, 3.485%, 3/08/2012, (SGD)		80,005,616
335,000	GMAC Canada Ltd., Series E, MTN, 6.625%, 12/17/2010, (GBP)		363,304
7,890,000	GMAC LLC, 4.750%, 9/14/2009, (EUR)		7,108,829
48,715,000	GMAC LLC, EMTN, 5.375%, 6/06/2011, (EUR)		28,804,017
3,835,000	GMAC LLC, EMTN, 5.750%, 9/27/2010, (EUR)		2,429,511
54,470,000	GMAC LLC, 6.000%, 12/15/2011		24,219,486

See accompanying notes to financial statements.

40

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Non-Captive Diversified — continued
$	24,015,000	GMAC LLC, 6.625%, 5/15/2012	$	10,167,183
	36,174,000	GMAC LLC, MTN, 6.750%, 12/01/2014		13,884,088
	6,585,000	GMAC LLC, 6.875%, 9/15/2011		2,938,141
	4,655,000	GMAC LLC, 6.875%, 8/28/2012		1,850,260
	12,165,000	GMAC LLC, 7.000%, 2/01/2012		4,958,576
	42,272,000	GMAC LLC, 8.000%, 11/01/2031		15,948,253
	34,782,000	iStar Financial, Inc., 5.150%, 3/01/2012		17,391,000
	5,255,000	iStar Financial, Inc., 5.375%, 4/15/2010		3,153,000
	3,010,000	iStar Financial, Inc., 5.500%, 6/15/2012		1,535,100
	19,110,000	iStar Financial, Inc., 5.650%, 9/15/2011		9,937,200
	1,530,000	iStar Financial, Inc., 5.700%, 3/01/2014		749,700
	4,040,000	iStar Financial, Inc., 5.800%, 3/15/2011		2,060,400
	4,815,000	iStar Financial, Inc., 5.850%, 3/15/2017		2,359,350
	8,815,000	iStar Financial, Inc., 5.875%, 3/15/2016		4,319,350
	4,300,000	iStar Financial, Inc., 6.050%, 4/15/2015		2,107,000
	35,130,000	iStar Financial, Inc., 8.625%, 6/01/2013		17,213,700
	1,780,000	iStar Financial, Inc., Series B, 5.125%, 4/01/2011		907,800
	44,610,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		23,197,200
				800,313,437
		Oil Field Services — 0.3%
	22,930,000	North American Energy Partners, Inc., Senior Note, 8.750%, 12/01/2011		21,095,600
	11,855,000	Weatherford International Ltd., 6.500%, 8/01/2036		10,219,496
				31,315,096
		Packaging — 0.3%
	33,261,000	Owens-Illinois, Inc., Senior Note, 7.800%, 5/15/2018(b)		32,263,170
		Paper — 2.7%
	250,000	Abitibi-Consolidated, Inc., 6.000%, 6/20/2013(b)		66,250
	8,125,000	Abitibi-Consolidated, Inc., 7.400%, 4/01/2018		1,868,750
	12,310,000	Abitibi-Consolidated, Inc., 7.500%, 4/01/2028		2,831,300
	2,960,000	Abitibi-Consolidated, Inc., 8.500%, 8/01/2029		710,400
	39,846,000	Abitibi-Consolidated, Inc., 8.850%, 8/01/2030		9,563,040

Principal Amount (‡)	Description	Value (†)
	Paper — continued
750,000	Avenor, Inc., 10.850%, 11/30/2014, (CAD)	$	366,864
2,685,000	Bowater, Inc., 6.500%, 6/15/2013		1,033,725
7,955,000	Domtar Corp., 5.375%, 12/01/2013		6,721,975
11,720,000	Georgia-Pacific Corp., 7.250%, 6/01/2028		9,258,800
11,605,000	Georgia-Pacific Corp., 7.375%, 12/01/2025		9,371,038
120,000	Georgia-Pacific Corp., 7.700%, 6/15/2015		109,800
42,425,000	Georgia-Pacific Corp., 7.750%, 11/15/2029		35,000,625
15,555,000	Georgia-Pacific Corp., 8.000%, 1/15/2024		13,688,400
18,378,000	Georgia-Pacific Corp., 8.875%, 5/15/2031		15,988,860
149,788,000	International Paper Co., 7.950%, 6/15/2018		147,183,336
3,995,000	Jefferson Smurfit Corp., 7.500%, 6/01/2013		3,235,950
100,000	Smurfit-Stone Container Enterprises, Inc., 8.000%, 3/15/2017		78,000
14,140,000	Westvaco Corp., 7.950%, 2/15/2031		13,536,420
12,655,000	Westvaco Corp., 8.200%, 1/15/2030		11,878,046
			282,491,579
	Pharmaceuticals — 2.2%
159,095,000	Astrazeneca PLC, 6.450%, 9/15/2037		152,118,843
41,300,000	Elan Finance PLC, 8.875%, 12/01/2013		34,692,000
50,820,000	Elan Finance PLC, Senior Note, 7.750%, 11/15/2011		45,992,100
			232,802,943
	Pipelines — 2.2%
766,000	Colorado Interstate Gas Co., 5.950%, 3/15/2015		697,902
2,670,000	Colorado Interstate Gas Co., 6.800%, 11/15/2015		2,529,430
19,745,000	DCP Midstream LP, 144A, 6.450%, 11/03/2036		15,794,223
15,685,000	El Paso Corp., 6.950%, 6/01/2028		12,384,782
1,500,000	El Paso Corp., 7.420%, 2/15/2037		1,195,176
750,000	El Paso Corp., Senior Note, MTN, 7.800%, 8/01/2031		631,888
1,000,000	El Paso Energy Corp., MTN, 7.750%, 1/15/2032		836,953
5,255,000	Energy Transfer Partners LP, 6.125%, 2/15/2017		4,802,192
11,315,000	Energy Transfer Partners LP, 6.625%, 10/15/2036(b)		9,640,719

See accompanying notes to financial statements.

41

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Pipelines — continued
$	13,175,000	Enterprise Products Operating LP, 6.300%, 9/15/2017	$	12,286,834
	500,000	Kinder Morgan Energy Partners LP, 5.800%, 3/15/2035		372,376
	4,663,000	Kinder Morgan Finance Co. ULC, Guaranteed Note, 5.700%, 1/05/2016		4,010,180
	11,288,000	Kinder Morgan, Inc., Senior Note, 5.150%, 3/01/2015		9,566,580
	84,710,000	NGPL Pipeco LLC, 144A, 7.119%, 12/15/2017		80,400,718
	4,530,000	ONEOK Partners LP, 6.650%, 10/01/2036		3,964,443
	20,770,000	Plains All American Pipeline LP, 6.125%, 1/15/2017		18,873,533
	44,730,000	Plains All American Pipeline LP, 6.650%, 1/15/2037		36,639,461
	2,550,000	Southern Natural Gas Co., 7.350%, 2/15/2031		2,235,799
	7,872,000	Tennessee Gas Pipeline Co., 7.000%, 10/15/2028(b)		6,745,926
	600,000	Williams Cos., Inc., 7.875%, 9/01/2021		600,000
	965,000	Williams Cos., Inc., Senior Note, 7.750%, 6/15/2031		901,860
	8,600,000	Williams Cos., Inc., Series A, 7.500%, 1/15/2031		7,825,828
				232,936,803
		Property & Casualty Insurance — 0.7%
	4,785,000	Allstate Corp., 5.950%, 4/01/2036		3,900,732
	2,660,000	Marsh & McLennan Cos., Inc., 5.375%, 7/15/2014		2,463,272
	11,710,000	Marsh & McLennan Cos., Inc., 5.750%, 9/15/2015		10,976,837
	9,075,000	Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033(b)		7,601,138
	6,910,000	MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 144A, 14.000%, 1/15/2033		3,662,300
	31,135,000	Travelers Cos., Inc. (The), MTN, 6.250%, 6/15/2037		26,992,052
	4,000,000	Travelers Cos., Inc. (The), 6.750%, 6/20/2036		3,697,404
	1,000,000	Travelers Property Casualty Corp., 6.375%, 3/15/2033		877,759
	11,205,000	Willis North America, Inc., 6.200%, 3/28/2017		9,742,277
				69,913,771
		Railroads — 0.5%
	2,700,000	Canadian Pacific Railway Co., 5.750%, 3/15/2033		2,095,184
	18,680,000	Canadian Pacific Railway Co., 5.950%, 5/15/2037		15,290,813
	37,345,000	CSX Corp., 6.000%, 10/01/2036(b)		28,381,677
	5,000,000	CSX Corp., 6.250%, 3/15/2018		4,525,470

Principal Amount (‡)		Description	Value (†)
		Railroads — continued
$	1,153,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(e)	$	691,800
				50,984,944
		REITs — 0.7%
	27,950,000	Camden Property Trust, 5.700%, 5/15/2017		24,707,185
	2,935,000	Colonial Realty LP, 6.050%, 9/01/2016		2,475,572
	4,030,000	Duke Realty LP, 5.950%, 2/15/2017		3,607,487
	3,300,000	ERP Operating LP, 5.125%, 3/15/2016		2,764,090
	45,430,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		36,441,811
	1,880,000	Prologis, 5.625%, 11/15/2015		1,643,673
	1,535,000	Prologis, 5.750%, 4/01/2016(b)		1,337,519
	2,435,000	Simon Property Group LP, 5.750%, 12/01/2015		2,301,262
				75,278,599
		Restaurants — 0.0%
	1,250,000	McDonald’s Corp., Series E, MTN, 3.628%, 10/10/2010, (SGD)		890,240
		Retailers — 3.9%
	8,758,000	Dillard’s, Inc., 6.625%, 1/15/2018		5,429,960
	4,187,000	Dillard’s, Inc., 7.130%, 8/01/2018		2,658,745
	1,500,000	Dillard’s, Inc., 7.750%, 7/15/2026		855,000
	425,000	Dillard’s, Inc., 7.875%, 1/01/2023		255,000
	3,325,000	Dillard’s, Inc., Class A, 7.000%, 12/01/2028		1,695,750
	2,045,000	Home Depot, Inc., 5.400%, 3/01/2016		1,738,900
	123,559,000	Home Depot, Inc., 5.875%, 12/16/2036		86,858,641
	3,685,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		3,095,842
	72,355,000	J.C. Penney Corp., Inc., Senior Note, 6.375%, 10/15/2036		55,033,502
	350,000	J.C. Penney Corp., Inc., 7.125%, 11/15/2023		319,075
	3,330,000	J.C. Penney Corp., Inc., 7.400%, 4/01/2037		2,786,154
	3,985,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		3,090,766
	41,535,000	Lowe’s Cos., Inc., 6.650%, 9/15/2037		39,838,628
	17,705,000	Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037		12,823,696
	8,855,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		6,981,681
	5,785,000	Macy’s Retail Holdings, Inc., 6.900%, 4/01/2029		4,523,754
	6,365,000	Marks & Spencer PLC, 144A, 7.125%, 12/01/2037		4,879,842

See accompanying notes to financial statements.

42

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Retailers — continued
$	7,793,000	Target Corp., 6.500%, 10/15/2037	$	7,158,697
	140,992,000	Target Corp., 7.000%, 1/15/2038		132,658,527
	32,675,000	Toys R Us, Inc., 7.375%, 10/15/2018		21,238,750
	8,355,000	Toys R Us, Inc., 7.875%, 4/15/2013(b)		6,516,900
	10,270,000	Woolworth Corp., 8.500%, 1/15/2022		9,294,350
				409,732,160
		Sovereigns — 13.0%
	130,000,000	Canadian Government, 2.750%, 12/01/2010, (CAD)		121,709,561
	28,000,000	Canadian Government, 3.750%, 6/01/2012, (CAD)		26,858,689
	14,525,000	Canadian Government, 4.000%, 6/01/2016, (CAD)		14,026,981
	436,930,000	Canadian Government, 4.250%, 12/01/2008, (CAD)		412,198,346
	21,565,000	Canadian Government, 4.250%, 9/01/2009, (CAD)		20,527,124
	62,140,000	Canadian Government, 5.250%, 6/01/2012, (CAD)		62,633,383
	35,580,000	Canadian Government, 5.750%, 6/01/2033, (CAD)(b)		41,075,551
	104,626,000,000	Indonesia Treasury Bond, Series FR43, 10.250%, 7/15/2022, (IDR)		8,956,208
	10,000,000,000	Indonesia Treasury Bond, Series FR47, 10.000%, 2/15/2028, (IDR)		808,287
	272,460,000,000	Indonesia Treasury Bond, Series ZCE, Zero Coupon, 11/20/2012, (IDR)		17,436,024
	3,245,000(††)	Mexican Fixed Rate Bonds, Series M-10, 8.000%, 12/17/2015, (MXN)		29,009,615
	4,738,000(††)	Mexican Fixed Rate Bonds, Series M-10, 9.000%, 12/20/2012, (MXN)		44,339,171
	27,728,881(††)	Mexican Fixed Rate Bonds, Series M-20, Series M-20, 8.000%, 12/07/2023, (MXN)		243,344,289
	119,520,000	New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010, (AUD)		96,660,568
	61,765,000	New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012, (AUD)		48,975,367
	9,922,000	Republic of Brazil, 8.250%, 1/20/2034		11,236,665
	6,000,000	Republic of Brazil, 8.875%, 4/15/2024		7,170,000
	56,700,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		26,176,336
	140,235,000	Republic of Brazil, 12.500%, 1/05/2016, (BRL)(b)		76,458,990
	107,840,000	Republic of Brazil, 12.500%, 1/05/2022, (BRL)		58,088,181
				1,367,689,336
		Supermarkets — 0.9%
	19,060,000	Albertson’s, Inc., 7.750%, 6/15/2026		17,519,342
	72,866,000	Albertson’s, Inc., Senior Note, 7.450%, 8/01/2029		64,809,134

Principal Amount (‡)		Description	Value (†)
		Supermarkets — continued
$	4,895,000	Albertson’s, Inc., Senior Note, 8.000%, 5/01/2031	$	4,536,461
	1,510,000	Albertson’s, Inc., Senior Note, 8.700%, 5/01/2030		1,495,617
	13,242,000	Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		10,728,615
				99,089,169
		Supranational — 2.7%
	175,000,000	Eurofima, EMTN, 11.000%, 2/05/2010, (ISK)		1,657,244
	128,250,000	European Investment Bank, Senior Note, Zero Coupon, 3/10/2021, (AUD)		47,552,011
	16,375,000	European Investment Bank, 11.250%, 2/14/2013, (BRL)		8,594,960
	413,529,000,000	European Investment Bank, EMTN, 144A, Zero Coupon, 4/24/2013, (IDR)		26,188,708
	134,330,000	European Investment Bank, EMTN, 144A, 4.600%, 1/30/2037, (CAD)		114,941,293
	80,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 5/11/2009, (BRL)		37,416,575
	244,840,000,000	Inter-American Development Bank, Zero Coupon, 5/20/2013, (IDR)		14,724,153
	24,450,000	Inter-American Development Bank, Series E, MTN, 6.000%, 12/15/2017, (NZD)		15,810,002
	1,385,900,000	International Bank for Reconstruction & Development, 9.500%, 5/27/2010, (ISK)		13,035,622
	62,300,000	Nordic Investment Bank, Series E, MTN, 11.250%, 4/16/2009, (ISK)		589,568
				280,510,136
		Technology — 2.8%
	1,190,000	Affiliated Computer Services, Inc., 5.200%, 6/01/2015		960,925
	41,705,000	Agilent Technologies, Inc., 6.500%, 11/01/2017		38,018,987
	300,000	Alcatel-Lucent, EMTN, 6.375%, 4/07/2014, (EUR)		339,984
	6,950,000	Amkor Technology, Inc., Senior Note, 7.125%, 3/15/2011		6,255,000
	10,070,000	Amkor Technology, Inc., 7.750%, 5/15/2013		8,609,850
	4,640,000	Arrow Electronics, Inc., 6.875%, 6/01/2018		4,548,295
	30,125,000	Avnet, Inc., 5.875%, 3/15/2014		29,328,585
	35,630,000	Avnet, Inc., 6.000%, 9/01/2015		34,326,441
	11,345,000	Avnet, Inc., 6.625%, 9/15/2016		11,048,964
	6,225,000	Corning, Inc., 5.900%, 3/15/2014		6,025,962
	6,220,000	Corning, Inc., 6.200%, 3/15/2016		6,005,535
	6,150,000	Corning, Inc., 6.850%, 3/01/2029(b)		5,432,430
	4,725,000	Corning, Inc., 7.250%, 8/15/2036		4,188,566
	14,385,000	Equifax, Inc., 7.000%, 7/01/2037		12,132,582

See accompanying notes to financial statements.

43

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Technology — continued
$	29,605,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016(b)	$	18,947,200
	41,104,000	Lucent Technologies, Inc., 6.450%, 3/15/2029		25,073,440
	2,840,000	Lucent Technologies, Inc., 6.500%, 1/15/2028		1,732,400
	9,739,000	Motorola, Inc., 5.220%, 10/01/2097		5,439,543
	9,345,000	Motorola, Inc., 6.500%, 9/01/2025		7,169,148
	17,028,000	Motorola, Inc., 6.500%, 11/15/2028		12,724,990
	18,715,000	Motorola, Inc., 6.625%, 11/15/2037		13,642,206
	11,770,000	Nortel Networks Ltd., 6.875%, 9/01/2023		4,708,000
	25,890,000	Nortel Networks Ltd., 10.125%, 7/15/2013		16,504,875
	9,365,000	Northern Telecom Capital Corp., 7.875%, 6/15/2026		4,120,600
	300,000	Samsung Electronics Co. Ltd., 144A, 7.700%, 10/01/2027		317,384
	18,050,000	Xerox Capital Trust I, Guaranteed Note, 8.000%, 2/01/2027		16,413,425
	1,730,000	Xerox Corp., MTN, 7.200%, 4/01/2016(b)		1,679,034
				295,694,351
		Textile — 0.0%
	7,515,000	Kellwood Co., 7.625%, 10/15/2017(e)		4,133,250
		Tobacco — 0.6%
	52,930,000	Reynolds American, Inc., 6.750%, 6/15/2017		49,458,322
	13,400,000	Reynolds American, Inc., 7.250%, 6/15/2037		12,823,237
				62,281,559
		Transportation Services — 0.6%
	10,503,000	APL Ltd., Senior Note, 8.000%, 1/15/2024(e)		7,877,250
	17,574,841	Atlas Air, Inc., Series 1998-1, Class 1B, 7.680%, 1/02/2014(i)		17,574,841
	9,344,311	Atlas Air, Inc., Series 1999-1, Class A1, 7.200%, 7/02/2020		8,129,550
	320,321	Atlas Air, Inc., Series 1999-1, Class A2, 6.880%, 1/02/2011		288,289
	12,740,207	Atlas Air, Inc., Series 1999-1, Class B, 7.630%, 7/02/2016(i)		12,485,403
	4,744,556	Atlas Air, Inc., Series 1999-1, Class C, 8.770%, 7/02/2012(i)		4,364,992
	5,323,737	Atlas Air, Inc., Series 2000-1, Class B, 9.057%, 7/02/2017(i)		5,536,686
	6,862,758	Atlas Air, Inc., Series C, 8.010%, 1/02/2010(i)		5,352,951
				61,609,962
		Wireless — 1.8%
	8,524,000	ALLTEL Corp., 6.800%, 5/01/2029		7,735,530

Principal Amount (‡)		Description	Value (†)
		Wireless — continued
$	58,210,000	ALLTEL Corp., Senior Note, 7.875%, 7/01/2032	$	57,773,425
	24,795,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		16,364,700
	12,171,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		8,276,280
	35,995,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		24,116,650
	2,525,000	Rogers Wireless, Inc., Senior Secured Note, 6.375%, 3/01/2014		2,414,864
	2,085,000	Rogers Wireless, Inc., 7.625%, 12/15/2011, (CAD)(b)		2,080,866
	30,186,000	Sprint Capital Corp., 6.875%, 11/15/2028		20,224,620
	23,865,000	Sprint Capital Corp., 6.900%, 5/01/2019		18,495,375
	11,309,000	Sprint Nextel Corp., 6.000%, 12/01/2016		8,707,930
	28,355,000	True Move Co. Ltd., 144A, 10.750%, 12/16/2013		19,281,400
	1,605,000	Vodafone Group PLC, 6.150%, 2/27/2037		1,288,992
				186,760,632
		Wirelines — 5.5%
	10,245,000	AT&T Corp., 6.500%, 3/15/2029		8,576,909
	8,500,000	AT&T, Inc., 6.150%, 9/15/2034		7,088,660
	127,100,000	AT&T, Inc., 6.500%, 9/01/2037		108,121,428
	4,370,000	Bell Canada, 144A, 6.550%, 5/01/2029, (CAD)		3,121,722
	5,925,000	Bell Canada, MTN, 5.000%, 2/15/2017, (CAD)		4,397,277
	8,445,000	Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		6,522,627
	33,640,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		23,008,590
	14,335,000	BellSouth Corp., 6.000%, 11/15/2034(b)		11,611,350
	860,000	BellSouth Corp., 6.550%, 6/15/2034		737,304
	425,000	Cincinnati Bell, Inc., 8.375%, 1/15/2014(b)		369,750
	5,330,000	Embarq Corp., 7.995%, 6/01/2036		3,811,536
	35,260,000	Frontier Communications Corp., 7.875%, 1/15/2027		26,445,000
	5,790,000	GTE Corp., 6.940%, 4/15/2028		4,912,890
	5,470,000	Hanarotelecom, Inc., 144A, 7.000%, 2/01/2012		5,251,200
	525,000	Hawaiian Telcom Communications, Inc., Series B, 12.500%, 5/01/2015		73,500
	1,800,000	Koninklijke (Royal) KPN NV, Series G, MTN, 4.000%, 6/22/2015, (EUR)		2,191,236
	1,120,000	Koninklijke (Royal) KPN NV, Series E, MTN, 5.750%, 3/18/2016, (GBP)		1,848,086

See accompanying notes to financial statements.

44

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Wirelines — continued
$	8,098,000	Koninklijke (Royal) KPN NV, 8.375%, 10/01/2030	$	8,674,877
	32,435,000	Level 3 Financing, Inc., 8.750%, 2/15/2017(b)		23,515,375
	13,010,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		9,822,550
	3,346,000	New England Telephone & Telegraph Co., 7.875%, 11/15/2029		3,022,007
	32,155,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		23,473,150
	16,335,000	Qwest Capital Funding, Inc., Guaranteed Note, 6.500%, 11/15/2018		11,883,712
	44,630,000	Qwest Capital Funding, Inc., Guaranteed Note, 6.875%, 7/15/2028(b)		31,017,850
	10,675,000	Qwest Capital Funding, Inc., Guaranteed Note, 7.625%, 8/03/2021		8,113,000
	30,230,000	Qwest Corp., 6.875%, 9/15/2033		20,329,675
	1,290,000	Qwest Corp., 7.200%, 11/10/2026		948,150
	3,689,000	Qwest Corp., 7.250%, 9/15/2025		2,748,305
	2,598,000	Qwest Corp., 7.500%, 6/15/2023		2,039,430
	23,000,000	Telecom Italia Capital, 6.000%, 9/30/2034		16,114,260
	19,635,000	Telecom Italia Capital, 6.375%, 11/15/2033		14,309,988
	113,785,000	Telefonica Emisiones SAU, Guaranteed Note, 7.045%, 6/20/2036		102,912,843
	31,690,000	Telus Corp., 4.950%, 3/15/2017, (CAD)		27,000,148
	51,815,000	Verizon Global Funding Corp., Senior Note, 5.850%, 9/15/2035		40,515,703
	6,230,000	Verizon Maryland, Inc., Series B, 5.125%, 6/15/2033		4,214,913
	12,050,000	Verizon New York, Inc., Series A, 7.375%, 4/01/2032		10,518,807
				579,263,808
		Total Non-Convertible Bonds (Identified Cost $10,926,735,122)		9,148,239,400
	Convertible Bonds — 4.0%
		Healthcare — 0.3%
	26,280,000	Affymetrix, Inc., 3.500%, 1/15/2038		18,396,000
	12,005,000	Invitrogen Corp., 1.500%, 2/15/2024		10,819,506
				29,215,506
		Industrial Other — 0.3%
	30,860,000	Incyte Corp., 3.500%, 2/15/2011		28,275,475
		Media Non-Cable — 0.1%
	7,818,747	Liberty Media LLC, 3.500%, 1/15/2031		3,459,796
	7,716,000	Sinclair Broadcast Group, Inc., (Step to 2.000% on 1/15/2011), 4.875%, 7/15/2018(f)		7,002,270
				10,462,066

Principal Amount (‡)		Description	Value (†)
		Non-Captive Consumer — 0.3%
$	8,330,000	Countrywide Financial Corp., Zero Coupon, 4/15/2037(b)(c)	$	8,163,400
	23,395,000	Countrywide Financial Corp., 0.554%, 5/15/2037(b)(c)		21,289,450
				29,452,850
		Non-Captive Diversified — 0.2%
	44,035,000	iStar Financial, Inc., 3.291%, 10/01/2012(c)		23,558,725
		Pharmaceuticals — 1.0%
	5,111,000	EPIX Pharmaceuticals, Inc., Senior Note, 3.000%, 6/15/2024		2,555,500
	36,525,000	Human Genome Sciences, Inc., 2.250%, 8/15/2012		24,380,438
	24,081,000	Nektar Therapeutics, 3.250%, 9/28/2012		12,130,804
	22,735,000	Valeant Pharmaceuticals International, Subordinated Note, 3.000%, 8/16/2010		21,484,575
	28,222,000	Valeant Pharmaceuticals International, Subordinated Note, 4.000%, 11/15/2013		26,422,847
	11,035,000	Vertex Pharmaceuticals, Inc., 4.750%, 2/15/2013		16,649,056
				103,623,220
		REITs — 0.2%
	22,413,000	Host Hotels & Resorts, Inc., 144A, 2.625%, 4/15/2027		17,370,075
		Technology — 0.4%
	12,755,000	Avnet, Inc., 2.000%, 3/15/2034		12,707,169
	6,670,000	Kulicke & Soffa Industries, Inc, 0.500%, 11/30/2008		6,453,225
	7,105,000	Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		4,858,044
	3,880,000	Kulicke & Soffa Industries, Inc., 1.000%, 6/30/2010		3,040,950
	4,196,000	Maxtor Corp., Subordinated Note, 5.750%, 3/01/2012(e)		3,860,320
	745,000	Nortel Networks Corp., 1.750%, 4/15/2012		379,950
	30,767,000	Nortel Networks Corp., 2.125%, 4/15/2014		14,729,701
	311,000	Richardson Electronics Ltd., 7.750%, 12/15/2011		233,250
				46,262,609
		Textile — 0.0%
	121,000	Dixie Group, Inc., Subordinated Note, 7.000%, 5/15/2012		107,690
		Transportation Services — 0.0%
	200,000	Builders Transport, Inc., Subordinated Note, 6.500%, 5/01/2011(g)		—
	1,000,000	Builders Transport, Inc., Subordinated Note, 8.000%, 8/15/2005(g)		—
	403,000	Preston Corp., Subordinated Note, 7.000%, 5/01/2011		358,670
				358,670

See accompanying notes to financial statements.

45

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Wireless — 0.1%
$	625,000	Nextel Communications, Inc., Senior Note, 5.250%, 1/15/2010	$	585,937
	15,695,000	NII Holdings, Inc., 3.125%, 6/15/2012		11,614,300
				12,200,237
		Wirelines — 1.1%
	35,110,000	Level 3 Communications, Inc., 2.875%, 7/15/2010		27,605,237
	33,440,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		23,617,000
	12,604,000	Level 3 Communications, Inc., 5.250%, 12/15/2011		10,414,055
	28,648,000	Level 3 Communications, Inc., 6.000%, 9/15/2009		26,929,120
	35,920,000	Level 3 Communications, Inc., 6.000%, 3/15/2010(b)		31,430,000
				119,995,412
		Total Convertible Bonds (Identified Cost $487,679,466)		420,882,535
	Municipals — 0.9%
		Alabama — 0.0%
	3,270,000	Alabama Public School & College Authority ( Capital Improvement), 4.500%, 12/01/2026		2,851,767
		California — 0.4%
	3,435,000	San Diego Unified School District (Election 1998), Series F-1, (FSA insured), 4.500%, 7/01/2029		2,884,473
	1,530,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area Redevelopment), Series C, (MBIA insured), 3.750%, 8/01/2028		1,125,636
	4,170,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area), Series C, (MBIA insured), 3.750%, 8/01/2028		3,045,601
	5,175,000	State of California, (AMBAC insured), 4.500%, 8/01/2027		4,359,161
	14,415,000	State of California, 4.500%, 10/01/2029		11,959,405
	4,190,000	State of California, (AMBAC insured), 4.500%, 8/01/2030		3,460,814
	3,620,000	State of California, 4.500%, 8/01/2030		2,990,011
	2,680,000	State of California (Various Purpose), (MBIA insured), 3.250%, 12/01/2027		1,868,898
	12,645,000	State of California (Various Purpose), (AMBAC insured), 4.500%, 12/01/2033		10,157,729
	895,000	University of California Regents Medical Center, Series A, (MBIA insured), 4.750%, 5/15/2031		768,277
				42,620,005
		District of Columbia — 0.0%
	3,270,000	District of Columbia, Series A, (FGIC insured), 4.750%, 6/01/2036		2,673,389
		Florida — 0.1%
	3,270,000	Florida State Turnpike Authority (Department of Transportation), Series A, (MBIA insured), 3.500%, 7/01/2027		2,396,877

Principal Amount (‡)		Description	Value (†)
		Florida — continued
$	5,185,000	Jacksonville Electric Authority, Florida Water & Sewer Systems Revenue, (MBIA insured), 4.750%, 10/01/2041	$	4,373,651
				6,770,528
		Illinois — 0.1%
	5,650,000	Chicago Board of Education, Series B, (FSA insured), 4.750%, 12/01/2031		5,008,442
	1,725,000	Chicago O’Hare International Airport, Series A, (FSA insured), 4.500%, 1/01/2038		1,404,685
				6,413,127
		Louisiana — 0.0%
	3,270,000	State of Louisiana, Series C, (FSA insured), 3.250%, 5/01/2026		2,333,243
		Massachusetts — 0.0%
	3,275,000	Massachusetts School Building Authority, Series A, (AMBAC insured), 4.750%, 8/15/2032		2,786,272
		Michigan — 0.1%
	1,975,000	Grosse Pointe Public School System, (FGIC insured), 3.000%, 5/01/2027		1,316,871
	13,095,000	Michigan Tobacco Settlement Finance Authority, Taxable Turbo Series A, 7.309%, 6/01/2034(e)		11,277,414
				12,594,285
		Nebraska — 0.1%
	8,175,000	Omaha Public Power District, Series AA, (FGIC insured), 4.500%, 2/01/2034		6,657,720
		Texas — 0.1%
	9,320,000	County of Harris TX, Series B, 4.500%, 10/01/2031		8,025,918
		Wisconsin — 0.0%
	2,235,000	Green Bay Wisconsin Water System Revenue (FSA insured), 3.500%, 11/01/2026		1,673,591
	2,410,000	Green Bay Wisconsin Water System Revenue (FSA insured), 3.500%, 11/01/2029		1,735,706
	835,000	Wisconsin Housing & Economic Development Authority, Series E, 4.900%, 11/01/2035		731,560
				4,140,857
		Total Municipals (Identified Cost $107,486,155)		97,867,111
		Total Bonds and Notes (Identified Cost $11,521,900,743)		9,666,989,046
	Bank Loans — 1.0%
		Automotive — 0.5%
	115,596,181	Chrysler LLC, First Lien Term Loan, 6.490%, 8/03/2013(h)		47,587,480
		Consumer Products — 0.0%
	5,984,576	Mega Bloks, Inc., Term Loan B, 8.750%, 7/26/2012(h)		4,667,969
		Food & Beverage — 0.0%
	361,942	Dole Food Co., Inc., LOC, 4.788%, 4/12/2013(h)		317,423
	534,224	Dole Food Co., Inc., Term Loan, 4.738%, 4/12/2013(h)		468,514
	2,603,044	Dole Food Co., Inc., Tranche C Term Loan, 4.795%, 4/12/2013(h)		2,282,869
				3,068,806

See accompanying notes to financial statements.

46

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Media Non-Cable — 0.2%
$	31,106,781	Idearc, Inc., Term Loan B, 5.767%, 11/17/2014(h)	$	18,547,418
	2,797,946	Tribune Co., Tranche X, 5.541%, 6/04/2009(h)		2,591,597
				21,139,015
		Oil Field Services — 0.0%
	2,485,000	Dresser, Inc., Second Lien Term Loan, 8.557%, 5/04/2015(h)		2,137,100
	1,230,373	Dresser, Inc., Term Loan B, 5.096%, 5/04/2014(h)		1,110,412
				3,247,512
		Paper — 0.1%
	5,952,944	Georgia-Pacific Corp., First Lien Term Loan, 4.689%, 12/20/2012(h)		5,191,801
	1,970,633	Georgia-Pacific Corp., Term Loan B2, 4.299%, 12/20/2012(h)		1,793,552
				6,985,353
		Technology — 0.1%
	11,537,374	Nuance Communications, Inc., Incremental Term Loan, 5.960%, 3/31/2013(h)		10,037,516
		Wirelines — 0.1%
	16,722,131	Hawaiian Telcom Communications, Inc., Term Loan C, 6.262%, 6/01/2014(h)		11,502,485
		Total Bank Loans (Identified Cost $149,080,815)		108,236,136
Shares
	Common Stocks — 3.3%
		Biotechnology — 0.1%
	359,449	Vertex Pharmaceuticals, Inc.(i)		11,948,085
		Communications Equipment — 0.0%
	41,343	Corning, Inc.		646,605
		Containers & Packaging — 0.1%
	460,656	Owens-Illinois, Inc.(i)		13,543,286
		Electric Utilities — 0.1%
	282,500	Duke Energy Corp.(b)		4,923,975
		Food Products — 0.4%
	2,309,175	ConAgra Foods, Inc.(b)		44,936,545
		Household Durables — 0.2%
	477,725	KB Home(b)		9,401,628
	549,450	Lennar Corp., Class A(b)		8,346,145
				17,747,773
		Oil, Gas & Consumable Fuels — 0.3%
	846,398	Chesapeake Energy Corp.(b)		30,351,832
	141,249	Spectra Energy Corp.		3,361,726
				33,713,558
		Pharmaceuticals — 1.4%
	7,238,800	Bristol-Myers Squibb Co.(b)		150,928,980
	2,288	Teva Pharmaceutical Industries Ltd., Sponsored ADR		104,768
				151,033,748
		REITs — 0.6%
	223,187	Apartment Investment & Management Co., Class A(b)		7,816,009
	889,730	Associated Estates Realty Corp.(b)		11,593,182
	182,500	Developers Diversified Realty Corp.(b)		5,783,425

Shares	Description	Value (†)
	REITs — continued
460,000	Equity Residential(b)	$	20,428,600
117,700	Simon Property Group, Inc.(b)		11,416,900
			57,038,116
	Thrifts & Mortgage Finance — 0.1%
4,794,025	Federal Home Loan Mortgage Corp.(b)(i)(j)		8,197,783
	Total Common Stocks (Identified Cost $433,474,956)		343,729,474
Preferred Stocks — 1.2%
	Automotive — 0.2%
1,458,359	Ford Motor Co. Capital Trust II Convertible, 6.500%(b)		22,458,729
79,502	General Motors Corp., Convertible, 6.250%		636,016
			23,094,745
	Banking — 0.1%
11,795	Bank of America Corp. Convertible, 7.250%		9,884,210
	Capital Markets — 0.0%
73,204	Lehman Brothers Holdings, Inc., 5.670%(d)		5,124
77,610	Lehman Brothers Holdings, Inc., 5.940%(d)		2,716
39,450	Lehman Brothers Holdings, Inc., 6.000%(d)		6,312
340,116	Lehman Brothers Holdings, Inc., 6.500%(d)		17,006
28,950	Lehman Brothers Holdings, Inc., 7.250%(d)(i)		28,950
357,592	Lehman Brothers Holdings, Inc., 7.950%(b)(d)		21,456
35,000	Merrill Lynch & Co., Inc., 6.375%		479,150
81,975	Newell Financial Trust I Convertible, 5.250%		3,161,161
			3,721,875
	Commercial Banks — 0.0%
5,933	Wachovia Corp., Convertible, 7.500%		2,284,205
	Diversified Consumer Services — 0.0%
332,275	Six Flags, Inc., 7.250%		1,857,417
	Diversified Financial Services — 0.1%
552,770	CIT Group, Inc., 6.350%		4,283,967
5,000	CIT Group, Inc. Convertible, 8.750%		164,650
129,508	Sovereign Capital Trust IV, Convertible, 4.375%		2,972,209
			7,420,826
	Electric Utilities — 0.2%
370,577	AES Trust III Convertible, 6.750%(b)		14,211,628
107,725	CMS Energy Trust I Convertible, 7.750%		4,309,000
393	Entergy New Orleans, Inc., 4.750%		29,991
			18,550,619

See accompanying notes to financial statements.

47

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

Investments as of September 30, 2008

Shares	Description	Value (†)
	Machinery — 0.0%
171,240	United Rentals Trust I Convertible, 6.500%	$	3,767,280
	Oil, Gas & Consumable Fuels — 0.1%
52,020	Chesapeake Energy Corp. Convertible, 4.500%(b)		5,175,990
158,777	El Paso Energy Capital Trust I, Convertible, 4.750%		5,289,259
			10,465,249
	REITs — 0.0%
42,700	FelCor Lodging Trust, Inc., Convertible, 7.800%		523,075
	Semiconductors & Semiconductor Equipment — 0.2%
32,320	Lucent Technologies Capital Trust I Convertible, 7.750%		15,017,488
	Thrifts & Mortgage Finance — 0.3%
389,800	Countrywide Capital IV, 6.750%		3,469,220
75,100	Federal Home Loan Mortgage Corp., 5.000%(i)(j)		135,180
1,741,500	Federal Home Loan Mortgage Corp., 5.570%(i)(j)		1,724,085
444,350	Federal Home Loan Mortgage Corp., 5.660%(i)(j)		555,437
120,695	Federal Home Loan Mortgage Corp., 5.700%(i)(j)		225,700
283,000	Federal Home Loan Mortgage Corp., 5.790%(i)(j)		566,000
81,450	Federal Home Loan Mortgage Corp., 5.810%(i)(j)		142,538
219,750	Federal Home Loan Mortgage Corp., 5.900%(i)(j)		274,687
96,600	Federal Home Loan Mortgage Corp., 6.000%(i)(j)		173,880
89,300	Federal Home Loan Mortgage Corp., 6.420%(i)(j)		160,740
392,116	Federal Home Loan Mortgage Corp., 6.550%(i)(j)		423,485
3,856,103	Federal Home Loan Mortgage Corp., 8.375%(b)(i)(j)		6,285,448
192,100	Federal National Mortgage Association, 4.750%(j)		595,510
144,900	Federal National Mortgage Association, 5.125%(j)		507,150
104,850	Federal National Mortgage Association, 5.375%(j)		346,005
56,600	Federal National Mortgage Association, 5.810%(j)		203,760
87,300	Federal National Mortgage Association, 6.750%(j)		157,140
6,672,525	Federal National Mortgage Association, 8.250%(b)(j)		14,546,104
			30,492,069
	Total Preferred Stocks (Identified Cost $490,665,546)		127,079,058
Closed-End Investment Companies — 0.3%
199,046	BlackRock Senior High Income Fund, Inc.		652,871
1,033,275	Dreyfus High Yield Strategies		3,079,160

Shares		Description	Value (†)
	177,910	DWS High Income Trust	$	590,661
	860,000	Highland Credit Strategies Fund(b)		8,221,600
	110,211	Morgan Stanley Emerging Markets Debt Fund, Inc.		796,826
	141,612	Van Kampen High Income Trust II		324,291
	2,055,800	Western Asset High Income Opportunity Fund, Inc.		8,922,172
	1,368,400	Western Asset Managed High Income Fund, Inc.(b)		6,116,748
		Total Closed-End Investment Companies (Identified Cost $41,292,759)		28,704,329
Shares/ Principal Amount (‡)
	Short-Term Investments — 3.5%
	344,413,663	State Street Navigator Securities Lending Prime Portfolio(k)		344,413,663
$	18,259,610	Repurchase Agreement with State Street Corp., dated 9/30/2008 at 1.300% to be repurchased at $18,260,269 on 10/01/2008, collateralized by $17,905,000 Federal National Mortgage Association, 4.850% due 12/3/2012 valued at $18,259,958 including accrued interest (Note 2g of Notes to Financial Statements)		18,259,610
	4,215,796	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $4,215,948 on 10/01/2008, collateralized by $4,320,000 Federal Home Loan Bank Discount Notes, Zero Coupon due 11/21/2008 valued at $4,303,800 including accrued interest (Note 2g of Notes to Financial Statements)		4,215,796
		Total Short-Term Investments (Identified Cost $366,889,069)		366,889,069
		Total Investments — 101.5% (Identified Cost $13,003,303,888)(a)		10,641,627,112
		Other assets less liabilities — (1.5)%		(161,547,934	)
		Net Assets — 100%	$	10,480,079,178
	(‡)	Principal amount is in U.S. dollars unless otherwise noted.
	(†)	See Note 2a 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.
	(a)	Federal Tax Information:
		At September 30, 2008, the net unrealized depreciation on investments based on a cost of $13,007,160,073 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	$	169,608,961
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(2,535,141,922	)
		Net unrealized depreciation	$	(2,365,532,961	)
	(b)	All or a portion of this security was on loan to brokers at September 30, 2008.
	(c)	Variable rate security. Rate as of September 30, 2008 is disclosed.
	(d)	Issuer has filed for bankruptcy.
	(e)	Illiquid security. At September 30, 2008, the value of these securities amounted to $235,523,116 or 2.2% of net assets.
	(f)	Step Bond: Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
	(g)	Bankrupt issuer. Security remains in the Portfolio of Investments pending final resolution of bankruptcy proceedings.
	(h)	Variable rate security. Rate shown represents the weighted average rate at September 30, 2008.
	(i)	Non-income producing security.

See accompanying notes to financial statements.

48

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

Investments as of September 30, 2008

(j)	Future dividend payments have been eliminated as the issuer has been placed in conservatorship.
(k)	Represents investment of securities lending collateral.
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 September 30, 2008, the value of these securities amounted to $962,061,577 or 9.2% 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.
AMBAC	American Municipal Bond Assurance Corp.
EMTN	Euro Medium Term Note
FGIC	Financial Guaranty Insurance Company
FSA	Financial Security Assurance, Inc.
GMTN	Global Medium Term Note
LOC	Letter of Credit
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
NZD	New Zealand Dollar
SGD	Singapore Dollar
THB	Thai Baht

Net Assets Summary at September 30, 2008 (Unaudited)

Sovereigns	13.0	%
Non-Captive Diversified	7.9
Wirelines	6.7
Healthcare	5.2
Banking	5.1
Electric	4.7
Pharmaceuticals	4.6
Retailers	3.9
Non-Captive Consumer	3.7
Technology	3.3
Paper	2.8
Supranational	2.7
Automotive	2.6
Media Cable	2.5
Pipelines	2.2
Other Investments, less than 2% each	27.1
Short-Term Investments	3.5
Total Investments	101.5
Other assets less liabilities	(1.5	)
Net Assets	100.0	%

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

United States Dollar	74.1	%
Canadian Dollar	9.6
Mexican Peso	3.0
Brazilian Real	2.6
New Zealand Dollar	2.5
Australian Dollar	2.4
Other, less than 2% each	7.3
Total Investments	101.5
Other assets less liabilities	(1.5	)
Net Assets	100.0	%

See accompanying notes to financial statements.

49

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50

STATEMENTS OF ASSETS AND LIABILITIES

September 30, 2008

	Core Plus Bond Fund			High Income Fund			International Bond Fund
ASSETS
Investments at cost	$	193,413,398		$	59,854,321		$	13,244,011
Repurchase agreement(s) at cost		8,429,740			6,917,645			208,000
Net unrealized depreciation		(14,680,084	)		(9,233,388	)		(1,005,664	)
Investments at value(a)		187,163,054			57,538,578			12,446,347
Cash		—			—			651
Foreign currency at value (identified cost $0, $16,194, $187,488, $0 and $8,244,915)		—			15,785			184,387
Due from custodian		—			—			—
Receivable for Fund shares sold		774,250			228,164			—
Receivable for securities sold		—			157,361			96,092
Receivable from investment advisor (Note 4)		—			—			28,399
Dividends and interest receivable		2,079,854			1,025,438			181,785
Unrealized appreciation on forward foreign currency contracts (Note 2)		—			1,714			5,003
Tax reclaims receivable		—			—			22
Securities lending income receivable		13,607			3,333			74
Other assets		—			13,297			—
TOTAL ASSETS		190,030,765			58,983,670			12,942,760
LIABILITIES
Due to custodian		—			12,441			—
Collateral on securities loaned, at value (Note 2)		10,994,292			3,523,267			—
Payable for securities purchased		4,104,517			257,274			214,367
Payable for Fund shares redeemed		1,040,432			372,291			—
Unrealized depreciation on forward foreign currency contracts (Note 2)		—			79			36,995
Dividends payable		—			—			—
Management fees payable (Note 4)		58,108			44,332			6,415
Deferred Trustees’ fees (Note 4)		243,759			77,655			7,384
Administrative fees payable (Note 4)		8,010			2,668			8,197
Deferred foreign taxes payable		—			—			—
Other accounts payable and accrued expenses		123,561			72,543			52,055
TOTAL LIABILITIES		16,572,679			4,362,550			325,413
NET ASSETS	$	173,458,086		$	54,621,120		$	12,617,347
NET ASSETS CONSIST OF:
Paid-in capital	$	207,800,671		$	134,116,688		$	13,777,210
Accumulated net investment income (loss)		371,177			(14,090	)		(22,126	)
Accumulated net realized gain (loss) on investments and foreign currency transactions		(20,033,749	)		(70,243,378	)		(85,005	)
Net unrealized depreciation on investments and foreign currency translations		(14,680,013	)		(9,238,100	)		(1,052,732	)
NET ASSETS	$	173,458,086		$	54,621,120		$	12,617,347
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	115,872,889		$	38,576,898		$	1,953,302
Shares of beneficial interest		10,989,037			9,095,405			212,471
Net asset value and redemption price per share	$	10.54		$	4.24		$	9.19
Offering price per share (100/[100-maximum sales charge] of net asset value) (Note 1)	$	11.04		$	4.44		$	9.62
Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	10,480,580		$	2,266,793		$	—
Shares of beneficial interest		991,297			533,572			—
Net asset value and offering price per share	$	10.57		$	4.25		$	—
Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	26,698,090		$	9,944,817		$	683,049
Shares of beneficial interest		2,529,794			2,343,061			74,432
Net asset value and offering price per share	$	10.55		$	4.24		$	9.18
Class Y shares:
Net assets	$	20,406,527		$	3,832,612		$	9,980,996
Shares of beneficial interest		1,925,979			904,136			1,087,530
Net asset value, offering and redemption price per share	$	10.60		$	4.24		$	9.18
(a) Including securities on loan with market values of:	$	10,552,377		$	3,411,036		$	—

See accompanying notes to financial statements.

51

Limited Term Government and Agency Fund			Strategic Income Fund
$	134,931,690		$	12,980,828,482
	10,608,327			22,475,406
	(1,345,936	)		(2,361,676,776	)
	144,194,081			10,641,627,112
	—			681,908
	—			8,181,252
	4,528,528			—
	1,927,513			36,105,148
	7			11,413,723
	16,841			—
	734,135			208,469,143
	—			—
	—			51,813
	4,554			296,774
	—			—
	151,405,659			10,906,826,873
	—			—
	1,085,429			344,413,663
	10,612,635			827,516
	356,994			72,579,119
	—			—
	124,932			541
	42,046			5,358,802
	214,131			435,142
	5,314			507,482
	—			9,517
	96,895			2,615,913
	12,538,376			426,747,695
$	138,867,283		$	10,480,079,178
$	153,210,988		$	12,690,707,333
	(287,351	)		97,385,788
	(12,710,418	)		60,536,039
	(1,345,936	)		(2,368,549,982	)
$	138,867,283		$	10,480,079,178
$	105,047,404		$	5,551,066,145
	9,568,271			458,811,440
$	10.98		$	12.10
$	11.32		$	12.67
$	4,532,045		$	161,751,069
	413,253			13,301,916
$	10.97		$	12.16
$	22,710,842		$	3,984,203,644
	2,067,156			327,825,681
$	10.99		$	12.15
$	6,576,992		$	783,058,320
	597,264			64,759,861
$	11.01		$	12.09
$	1,054,679		$	334,019,744

52

STATEMENTS OF OPERATIONS

For the Year Ended September 30, 2008

	Core Plus Bond Fund			High Income Fund			International Bond Fund (a)
INVESTMENT INCOME
Dividends	$	110,172		$	111,528		$	—
Interest		9,330,051			3,601,097			283,026
Securities lending income (Note 2)		216,727			42,292			481
Less net foreign taxes withheld		—			(508	)		—
		9,656,950			3,754,409			283,507
Expenses
Management fees (Note 4)		751,064			275,813			47,119
Service fees - Class A (Note 4)		286,509			87,807			1,596
Service and distribution fees - Class B (Note 4)		172,317			32,609			—
Service and distribution fees - Class C (Note 4)		168,355			70,988			2,445
Trustees’ fees and expenses (Note 4)		6,753			11,229			8,513
Administrative fees (Note 4)		85,963			23,606			55,898
Custodian fees and expenses		24,613			21,776			20,340
Transfer agent fees and expenses - Class A (Note 4)		184,001			45,581			617
Transfer agent fees and expenses - Class B (Note 4)		30,318			4,596			—
Transfer agent fees and expenses - Class C (Note 4)		26,909			8,502			192
Transfer agent fees and expenses - Class Y (Note 4)		22,003			40			353
Audit and tax services fees		47,662			48,669			41,057
Legal fees		4,453			2,477			196
Shareholder reporting expenses		53,060			10,561			1,584
Registration fees		64,225			67,761			19,062
Miscellaneous expenses		9,112			8,040			1,760
Total expenses		1,937,317			720,055			200,732
Less fee reduction and/or expense reimbursement (Note 4)		(169,762	)		(114,938	)		(129,938	)
Net expenses		1,767,555			605,117			70,794
Net investment income		7,889,395			3,149,292			212,713
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		1,978,022			532,025			(3,960	)
Foreign currency transactions		8,829			23,220			(72,449	)
Net change in unrealized appreciation (depreciation) on:
Investments (including change in foreign capital gains tax accrual of $(9,517) for Strategic Income Fund)		(13,461,243	)		(10,375,382	)		(1,005,664	)
Foreign currency translations		(8,003	)		(6,251	)		(47,068	)
Net realized and unrealized gain (loss) on investments and foreign currency transactions		(11,482,395	)		(9,826,388	)		(1,129,141	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(3,593,000	)	$	(6,677,096	)	$	(916,428	)

(a) From commencement of operations on February 1, 2008 through September 30, 2008.

See accompanying notes to financial statements.

53

Limited Term Government and Agency Fund			Strategic Income Fund
$	—		$	40,775,309
	5,864,507			855,653,561
	73,330			7,193,368
	—			(601,699	)
	5,937,837			903,020,539
	598,625			66,716,160
	253,877			16,174,107
	56,200			2,096,544
	73,146			44,085,494
	6,832			174,974
	61,737			6,138,937
	22,970			635,535
	126,964			5,701,372
	7,027			186,124
	9,139			3,880,942
	1,271			710,244
	46,237			52,219
	3,340			336,368
	23,472			1,437,720
	66,279			354,191
	6,911			282,589
	1,364,027			148,963,520
	(181,890	)		(235,580	)
	1,182,137			148,727,940
	4,755,700			754,292,599
	498,940			181,343,106
	—			2,347,155
	(407,128	)		(2,808,355,364	)
	—			(8,943,388	)
	91,812			(2,633,608,491	)
$	4,847,512		$	(1,879,315,892	)

54

STATEMENTS OF CHANGES IN NET ASSETS

	Core Plus Bond Fund						High Income Fund						International Bond Fund
	Year Ended September 30, 2008			Year Ended September 30, 2007			Year Ended September 30, 2008			Year Ended September 30, 2007			Year Ended September 30, 2008 (a)
FROM OPERATIONS:
Net investment income	$	7,889,395		$	8,937,252		$	3,149,292		$	2,616,602		$	212,713
Net realized gain (loss) on investments and foreign currency transactions		1,986,851			3,057,453			555,245			2,071,153			(76,409	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(13,469,246	)		(455,077	)		(10,381,633	)		(1,570,220	)		(1,052,732	)
Net increase (decrease) in net assets resulting from operations		(3,593,000	)		11,539,628			(6,677,096	)		3,117,535			(916,428	)
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(6,214,311	)		(4,791,156	)		(2,552,225	)		(2,276,050	)		(20,706	)
Class B		(690,101	)		(4,164,404	)		(205,884	)		(385,580	)		—
Class C		(812,461	)		(393,045	)		(471,489	)		(290,234	)		(5,728	)
Class Y		(1,030,857	)		(746,123	)		(54,867	)		—			(217,001	)
Net realized capital gain
Class A		—			—			—			—			—
Class B		—			—			—			—			—
Class C		—			—			—			—			—
Class Y		—			—			—			—			—
Total distributions		(8,747,730	)		(10,094,728	)		(3,284,465	)		(2,951,864	)		(243,435	)
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 8)		(35,735,068	)		(150,880	)		22,486,017			2,103,465			13,763,336
Redemption fees
Class A		10,657			4,164			12,665			1,239			259
Class B		1,520			3,852			782			221			—
Class C		1,489			451			3,312			191			275
Class Y		1,652			627			1,025			—			13,340
		15,318			9,094			17,784			1,651			13,874
Net increase (decrease) in net assets		(48,060,480	)		1,303,114			12,542,240			2,270,787			12,617,347
NET ASSETS
Beginning of the year		221,518,566			220,215,452			42,078,880			39,808,093			—
End of the year	$	173,458,086		$	221,518,566		$	54,621,120		$	42,078,880		$	12,617,347
ACCUMULATED NET INVESTMENT INCOME (LOSS)	$	371,177		$	286,929		$	(14,090	)	$	44,230		$	(22,126	)

(a) From commencement of operations on February 1, 2008 through September 30, 2008.

See accompanying notes to financial statements.

55

Limited Term Government and Agency Fund						Strategic Income Fund
Year Ended September 30, 2008			Year Ended September 30, 2007			Year Ended September 30, 2008			Year Ended September 30, 2007
$	4,755,700		$	5,111,524		$	754,292,599		$	404,960,779
	498,940			65,262			183,690,261			72,055,207
	(407,128	)		261,814			(2,817,298,752	)		228,448,541
	4,847,512			5,438,600			(1,879,315,892	)		705,464,527
	(4,474,145	)		(4,778,111	)		(448,782,373	)		(239,664,878	)
	(205,652	)		(288,517	)		(12,700,249	)		(10,008,544	)
	(262,151	)		(166,306	)		(272,297,986	)		(137,066,220	)
	(244,165	)		(164,290	)		(61,058,261	)		(26,439,067	)
	—			—			(5,233,811	)		—
	—			—			(183,665	)		—
	—			—			(3,481,864	)		—
	—			—			(634,289	)		—
	(5,186,113	)		(5,397,224	)		(804,372,498	)		(413,178,709	)
	14,420,990			(6,079,674	)		2,697,961,138			5,126,647,863
	—			—			209,238			182,774
	—			—			7,216			8,908
	—			—			140,777			122,627
	—			—			25,844			19,120
	—			—			383,075			333,429
	14,082,389			(6,038,298	)		14,655,823			5,419,267,110
	124,784,894			130,823,192			10,465,423,355			5,046,156,245
$	138,867,283		$	124,784,894		$	10,480,079,178		$	10,465,423,355
$	(287,351	)	$	(130,422	)	$	97,385,788		$	26,601,961

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 (c)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Total distributions			Redemption fees (d)
CORE PLUS BOND FUND
Class A
9/30/2008	$	11.31	$	0.55	$	(0.71	)	$	(0.16	)	$	(0.61	)	$	(0.61	)	$	0.00	(h)
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
9/30/2004		11.63		0.47		0.13			0.60			(0.54	)		(0.54	)		0.00
Class B
9/30/2008		11.31		0.44		(0.67	)		(0.23	)		(0.51	)		(0.51	)		0.00	(h)
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
9/30/2004		11.62		0.38		0.14			0.52			(0.44	)		(0.44	)		0.00
Class C
9/30/2008		11.32		0.47		(0.71	)		(0.24	)		(0.53	)		(0.53	)		0.00	(h)
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
9/30/2004		11.63		0.38		0.14			0.52			(0.44	)		(0.44	)		0.00
Class Y
9/30/2008		11.36		0.58		(0.70	)		(0.12	)		(0.64	)		(0.64	)		0.00	(h)
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
9/30/2004		11.69		0.50		0.13			0.63			(0.58	)		(0.58	)		0.00
HIGH INCOME FUND
Class A
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
9/30/2004		4.65		0.33		0.17			0.50			(0.33	)		(0.33	)		0.00
Class B
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
9/30/2004		4.65		0.30		0.18			0.48			(0.30	)		(0.30	)		0.00

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

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

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

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

See accompanying notes to financial statements.

57

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (a)(e)		Net assets, end of the period (000’s)		Net expenses (%) (b)(f)		Gross expenses (%) (b)		Net investment income (%) (b)	Portfolio turnover rate (%)
$	10.54	(1.6	)	$	115,873	0.93		1.04		4.86	82
	11.31	5.7			105,780	1.04		1.09		4.41	69
	11.23	4.0			91,464	1.05		1.08		4.46	91
	11.41	2.4			105,111	1.13		1.18		3.93	64
	11.69	5.3			120,009	1.19		1.22		4.05	69
	10.57	(2.2	)		10,481	1.70		1.80		3.92	82
	11.31	4.9			87,101	1.79		1.85		3.64	69
	11.24	3.3			109,782	1.80		1.83		3.72	91
	11.41	1.6			132,221	1.88		1.93		3.18	64
	11.70	4.6			148,556	1.94		1.97		3.29	69
	10.55	(2.3	)		26,698	1.68		1.79		4.17	82
	11.32	4.9			12,690	1.78		1.82		3.66	69
	11.25	3.3			6,983	1.80		1.82		3.63	91
	11.42	1.6			6,065	1.88		1.93		3.17	64
	11.71	4.6			6,162	1.94		1.98		3.30	69
	10.60	(1.4	)		20,407	0.68		0.75		5.14	82
	11.36	6.1			15,946	0.70		0.75		4.75	69
	11.29	4.3			11,986	0.80	(g)	0.80	(g)	4.58	91
	11.46	2.7			9,060	0.88		0.99		4.18	64
	11.74	5.5			10,941	0.94		0.98		4.30	69
$	4.24	(11.0	)	$	38,577	1.15		1.40		7.01	27
	5.12	8.1			32,603	1.18		1.43		6.40	41
	5.09	9.4			29,069	1.31		1.48		6.70	41
	4.98	10.3			25,817	1.58		1.72		6.60	42
	4.82	11.1			24,641	1.65		1.65		6.97	51
	4.25	(11.6	)		2,267	1.90		2.15		6.15	27
	5.13	7.2			4,201	1.94		2.18		5.63	41
	5.10	8.8			7,283	2.08		2.25		6.00	41
	4.98	9.3			12,034	2.33		2.47		5.85	42
	4.83	10.5			17,967	2.40		2.40		6.22	51

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

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

(g) Includes expense recapture of 0.06%.

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

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 (c)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Total distributions			Redemption fees (d)
HIGH INCOME FUND (continued)
Class C
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
9/30/2004		4.65		0.30		0.18			0.48			(0.30	)		(0.30	)		0.00
Class Y
9/30/2008(g)		4.87		0.22		(0.65	)		(0.43	)		(0.21	)		(0.21	)		0.01
INTERNATIONAL BOND FUND
Class A
9/30/2008(h)	$	10.00	$	0.17	$	(0.79	)	$	(0.62	)	$	(0.19	)	$	(0.19	)	$	0.00	(i)
Class C
9/30/2008(h)		10.00		0.13		(0.81	)		(0.68	)		(0.15	)		(0.15	)		0.01	(i)
Class Y
9/30/2008(h)		10.00		0.18		(0.81	)		(0.63	)		(0.20	)		(0.20	)		0.01	(i)

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

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

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

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

See accompanying notes to financial statements.

59

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (a)(e)		Net assets, end of the period (000’s)		Net expenses (%) (b)(f)	Gross expenses (%) (b)	Net investment income (%) (b)	Portfolio turnover rate (%)
$	4.24	(11.6	)	$	9,945	1.90	2.15	6.32	27
	5.12	7.2			5,275	1.93	2.17	5.63	41
	5.09	8.6			3,457	2.07	2.23	5.96	41
	4.98	9.3			3,554	2.33	2.47	5.82	42
	4.83	10.5			2,608	2.40	2.40	6.22	51
	4.24	(9.1	)		3,833	0.90	1.15	8.03	27
$	9.19	(6.4	)	$	1,953	1.10	2.95	2.66	60
	9.18	(7.0	)		683	1.85	3.70	1.92	60
	9.18	(6.4	)		9,981	0.85	2.48	2.74	60

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

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

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

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

(i) 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 (c)		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
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	)
9/30/2004		11.51		0.30		(0.09	)		0.21		(0.42	)		(0.42	)
Class B
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	)
9/30/2004		11.49		0.22		(0.09	)		0.13		(0.34	)		(0.34	)
Class C
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	)
9/30/2004		11.50		0.22		(0.08	)		0.14		(0.34	)		(0.34	)
Class Y
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	)
9/30/2004		11.55		0.32		(0.09	)		0.23		(0.44	)		(0.44	)

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

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

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

See accompanying notes to financial statements.

61

					Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (a)(d)	Net assets, end of the period (000’s)		Net expenses (%) (b)(e)	Gross expenses (%) (b)		Net investment income (%) (b)	Portfolio turnover rate (%)
$	10.98	4.3	$	105,047	0.92	1.07		4.04	52
	11.00	4.5		108,536	0.99	1.10		4.13	45
	11.00	3.2		114,180	1.04	1.09		3.57	50
	11.09	1.1		141,417	1.24	1.24		2.50	93
	11.30	1.9		106,701	1.32	1.32		2.60	80
	10.97	3.5		4,532	1.67	1.82		3.29	52
	10.99	3.7		6,787	1.74	1.85		3.37	45
	10.98	2.4		9,952	1.79	1.84		2.79	50
	11.07	0.3		15,114	1.99	1.99		1.75	93
	11.28	1.2		10,107	2.00	2.00		1.95	80
	10.99	3.6		22,711	1.66	1.83		3.29	52
	11.00	3.6		5,261	1.74	1.85		3.38	45
	10.99	2.5		4,230	1.79	1.84		2.81	50
	11.08	0.2		5,715	1.99	1.99		1.75	93
	11.30	1.3		6,949	2.00	2.00		1.94	80
	11.01	4.6		6,577	0.67	0.72		4.28	52
	11.03	4.8		4,201	0.71	0.75		4.43	45
	11.03	3.4		2,461	0.74	0.74		3.89	50
	11.13	1.2		2,533	1.02	1.59	(f)	2.77	93
	11.34	2.1		4,233	1.13	1.13		2.82	80

(d) Had certain expenses not been reduced during the period, if applicable, total return 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 fee during the period. Without this reimbursement/fee reduction, if applicable, expenses would have been higher.

(f) 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 (c)		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 (d)(g)
STRATEGIC INCOME FUND
Class A
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
9/30/2004		12.57		0.75		1.11			1.86			(0.86	)		—			(0.86	)		0.00
Class B
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
9/30/2004		12.59		0.65		1.10			1.75			(0.74	)		—			(0.74	)		0.00
Class C
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
9/30/2004		12.58		0.64		1.11			1.75			(0.73	)		—			(0.73	)		0.00
Class Y
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
9/30/2004		12.58		0.78		1.11			1.89			(0.90	)		—			(0.90	)		0.00

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

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

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

See accompanying notes to financial statements.

63

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (a)(e)		Net assets, end of the period (000’s)		Net expenses (%) (b)(f)	Gross expenses (%) (b)	Net investment income (%) (b)	Portfolio turnover rate (%)
$	12.10	(14.5	)	$	5,551,066	0.97	0.98	6.59	24
	15.18	9.9			5,749,315	1.00	1.00	5.39	22
	14.60	9.0			2,782,887	1.05	1.05	5.01	21
	14.17	10.2			977,198	1.18	1.18	4.71	14
	13.57	15.2			343,586	1.23	1.23	5.66	28
	12.16	(15.2	)		161,751	1.72	1.73	5.78	24
	15.25	9.1			233,418	1.76	1.76	4.61	22
	14.66	8.2			179,927	1.79	1.79	4.26	21
	14.22	9.5			144,081	1.93	1.93	3.98	14
	13.60	14.3			128,714	1.98	1.98	4.91	28
	12.15	(15.2	)		3,984,204	1.72	1.73	5.85	24
	15.24	9.1			3,843,823	1.75	1.75	4.63	22
	14.65	8.1			1,812,278	1.79	1.79	4.24	21
	14.22	9.5			765,200	1.93	1.93	3.93	14
	13.60	14.3			255,705	1.98	1.98	4.87	28
	12.09	(14.3	)		783,058	0.72	0.72	6.88	24
	15.17	10.2			638,868	0.74	0.74	5.67	22
	14.59	9.3			271,065	0.78	0.78	5.30	21
	14.17	10.5			50,369	0.91	0.91	4.98	14
	13.57	15.5			10,833	1.00	1.08	5.93	28

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

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

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

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

64

NOTES TO FINANCIAL STATEMENTS

September 30, 2008

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. Information presented in these financial statements pertains to certain fixed income funds of the Trusts; the financial statements for the other funds of the Trusts are presented in separate reports. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:

Natixis Funds Trust I:

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”)

International Bond Fund commenced operations on February 1, 2008.

Core Plus Bond Fund, High Income Fund, International Bond Fund, Limited Term Government and Agency Fund, and Strategic Income Fund each offer Class A, Class C and Class Y shares. Effective October 12, 2007, Class B shares are no longer offered. Existing Class B shareholders may continue to reinvest dividends into Class B shares and exchange their Class B shares for Class B shares of other Natixis Funds subject to existing exchange privileges as described in the Prospectus. On February 29, 2008, High Income Fund began offering Class Y Shares.

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. 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 excepted from the minimum investment amount as outlined in the Fund’s Prospectus.

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

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

a.  Security Valuation.  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 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. 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)

September 30, 2008

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 the Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. Periodic principal adjustments for inflation-protected securities are recorded to interest income. 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 the investment securities. Such changes are included with the net realized and unrealized gain or loss on investments.

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

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

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

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 Fund’s Statement of Assets and Liabilities. The U.S. dollar value of the currencies a Fund has committed to buy or sell represents the aggregate exposure to each currency the Fund has acquired or hedged through currency contracts outstanding at period end.

All contracts are “marked-to-market” daily utilizing interpolated prices determined from information provided by an independent pricing service and any gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

e.  Federal and Foreign Income Taxes.  Each Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of the Funds’ tax positions taken on federal and state tax returns that remain subject to examinations (tax years ended September 30, 2005-2008, where applicable) and has concluded that no provisions for income tax are required. Fund management is not aware of any events that are reasonably possible to occur in the next twelve 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.

66

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

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, premium amortization, defaulted bond adjustments, paydown gains and losses, 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, straddle loss deferrals, REIT basis adjustments, TIP discount accretion, defaulted bond interest, capital loss carryforwards and post-October capital loss deferrals. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2008 and 2007 was as follows:

	2008 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
Core Plus Bond Fund	$	8,747,730	$	—	$	8,747,730
High Income Fund		3,284,465		—		3,284,465
International Bond Fund		243,435		—		243,435
Limited Term Government and Agency Fund		5,186,113		—		5,186,113
Strategic Income Fund		794,838,869		9,533,629		804,372,498

	2007 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
Core Plus Bond Fund	$	10,094,728	$	—	$	10,094,728
High Income Fund		2,951,864		—		2,951,864
Limited Term Government and Agency Fund		5,397,224		—		5,397,224
Strategic Income Fund		413,178,709		—		413,178,709

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

As of September 30, 2008, the components of distributable earnings on a tax basis were as follows:

	Core Plus Bond Fund			High Income Fund			International Bond Fund			Limited Term Government and Agency Fund			Strategic Income Fund
Undistributed ordinary income	$	614,936		$	63,564		$	—		$	51,712		$	115,263,518
Undistributed long-term capital gains		—			—			—			—			53,152,344
Total undistributed earnings	$	614,936		$	63,564					$	51,712		$	168,415,862
Capital Loss Carryforward:
Expires September 30, 2009		—			(43,374,722	)		—			(4,128,091	)		—
Expires September 30, 2010		(19,514,453	)		(26,826,634	)		—			(663,109	)		—
Expires September 30, 2011		—			—			—			(425,323	)		—
Expires September 30, 2012		—			—			—			(193,904	)		—
Expires September 30, 2013		—			—			—			—			—
Expires September 30, 2014		(181,728	)		—			—			(2,770,324	)		—
Expires September 30, 2015		—			—			—			(4,336,746	)		—
Expires September 30, 2016		—			—			—			(115,630	)		—
Total capital loss carryforward		(19,696,181	)		(70,201,356	)		—			(12,633,127	)		—
Deferred net capital and currency losses (post-October 2007)		—			—			(87,381	)		—			—
Unrealized appreciation (depreciation)		(15,017,580	)		(9,280,122	)		(1,063,617	)		(1,423,227	)		(2,372,406,167	)
Total accumulated earnings (losses)	$	(34,098,825	)	$	(79,417,914	)	$	(1,150,998	)	$	(14,004,642	)	$	(2,203,990,305	)
Capital loss carryforward utilized in the current year	$	916,394		$	500,999		$	—		$	—		$	—

67

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

The High Income Fund had carry forward losses expire in the current year for the amount of $10,600,869.

The Limited Term Government and Agency Fund had carry forward losses expire in the current year for the amount of $4,165,768.

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

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

Fund	Value of Securities on Loan		Value of Collateral Received
Core Plus Bond Fund	$	10,552,377	$	10,994,292
High Income Fund		3,411,036		3,523,267
International Bond Fund		—		—
Limited Term Government and Agency Fund		1,054,679		1,085,429
Strategic Income Fund		334,019,744		344,413,663

Subsequent to September 30, 2008, all securities on loan were called back.

i.  Delayed Delivery Commitments.  Each Fund may purchase or sell securities on a when-issued or forward commitment basis. Payment and delivery may take place a month or more after the date of the transaction. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract. Collateral consisting of liquid securities or cash and cash equivalents is maintained in an amount at least equal to these commitments with the custodian.

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.

k.  New Accounting Pronouncements.  In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management has evaluated the impact the adoption of FAS 157 will have on the Funds’ financial statements and believes that such impact will be limited to expanded disclosure in the Funds’ financial statements regarding inputs used in determining the value of the Funds’ investments.

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

68

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

3.  Purchases and Sales of Securities.  For the year ended September 30, 2008, 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	$	81,338,297	$	112,832,539	$	54,928,935	$	59,641,890
High Income Fund		369,501		4,400,440		26,803,145		7,072,922
International Bond Fund		—		—		20,188,493		6,899,715
Limited Term Government and Agency Fund		63,171,203		44,200,040		8,616,640		10,401,511
Strategic Income Fund		49,324,724		1,123,044,468		5,341,585,401		1,612,301,585

4.  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%

Prior to July 1, 2008, the management fees for the Strategic Income Fund were 0.65% for the first $200 million of average daily net assets of the Fund, 0.60% for the next $1.8 billion of such assets and 0.55% of such assets over $2 billion.

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 agreements, 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%

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 associated with these Funds to limit their operating expenses. These undertakings are in effect until January 31, 2009 and will be reevaluated on an annual basis. For the period from February 1, 2008 to September 30, 2008, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:

	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Class A		Class B		Class C		Class Y
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	%

69

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

Prior to February 1, 2008, the expense limits as a percentage of average daily net assets were as follows:

Fund	Class A		Class B		Class C		Class Y
Core Plus Bond Fund	1.00	%	1.75	%	1.75	%	0.75	%
High Income Fund	1.15	%	1.90	%	1.90	%	—
Limited Term Government and Agency Fund	0.95	%	1.70	%	1.70	%	0.70	%
Strategic Income Fund	1.25	%	2.00	%	2.00	%	1.00	%

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

For the year ended September 30, 2008, the management fees and reductions of management fees for each Fund were as follows:

Fund	Gross Management Fee		Reduction of Management Fee		Net Management Fee		Percentage of Average Daily Net Assets
							Gross		Net
Core Plus Bond Fund	$	375,532	$	—	$	375,532	0.225	%	0.225	%
High Income Fund		275,813		66,570		209,243	0.600	%	0.452	%
International Bond Fund		47,119		47,119		—	0.600	%	—
Limited Term Government and Agency Fund		598,625		43,471		555,154	0.500	%	0.464	%
Strategic Income Fund		66,716,160		—		66,716,160	0.560	%	0.560	%

For the year ended September 30, 2008, the advisory administration fees and fee reductions for Core Plus Bond Fund were as follows:

Gross Advisory Administration Fee	Reduction of Advisory Administration Fee		Net Advisory Administration Fee		Percentage of Average Daily Net Assets
					Gross		Net
$375,532	$	—	$	375,532	0.225	%	0.225	%

For the year ended September 30, 2008, class specific expenses have been reimbursed as follows:

Fund	Reimbursement
Core Plus Bond Fund	$	166,466
High Income Fund		47,505
International Bond Fund		82,692
Limited Term Government and Agency Fund		136,000

Loomis Sayles and Natixis Advisors 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 fee/expense was reduced. The amounts subject to possible reimbursement under the expense limitation agreements at September 30, 2008 were as follows:

	Expenses Subject to Possible Reimbursement until September 30, 2009
Fund	Class A		Class B		Class C		Class Y		Total
Core Plus Bond Fund	$	119,781	$	16,829	$	18,008	$	11,848	$	166,466
High Income Fund		87,268		7,993		17,578		1,236		114,075
International Bond		11,799		—		4,529		113,483		129,811
Limited Term Government and Agency Fund		156,243		8,567		11,794		2,867		179,471

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 whose sole 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 Advisors provides certain administrative services for the Fund and subcontracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV,

70

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

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 an annual fee of $75,000 plus $12,500 per class and an additional $75,000 if managed by multiple subadvisors in their first calendar year of operations.

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

Prior to July 1, 2008, the Funds paid Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0675% of the first $5 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0625% of the next $5 billion, 0.0500% of the next $20 billion and 0.0450% of such assets in excess of $30 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $5 million, which was reevaluated on an annual basis. New funds were subject to an annual fee of $50,000 plus $12,500 per class and an additional $50,000 if managed by multiple subadvisors in their first calendar year of operations.

For the year ended September 30, 2008, amounts paid to Natixis Advisors for administrative fees were as follows:

Fund	Gross Administrative Fees		Waiver of Administrative Fees		Net Administrative Fees
Core Plus Bond Fund	$	85,963	$	3,296	$	82,667
High Income Fund		23,606		863		22,743
International Bond Fund		55,898		127		55,771
Limited Term Government and Agency Fund		61,737		2,419		59,318
Strategic Income Fund		6,138,937		235,580		5,903,357

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 each fund.

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

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

Under the Class B and Class C Plans, each Fund pays Natixis Distributors a monthly service fee at an annual rate 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 and expenses incurred by Natixis Distributors in providing personal services to investors in Class B and Class C shares and/or the maintenance of shareholder accounts.

Also under the Class B and Class C Plans, each Fund pays Natixis Distributors a monthly distribution fee at 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 and expenses incurred by Natixis Distributors in connection with the marketing or sale of Class B and Class C shares.

For the year ended September 30, 2008, the Funds paid the following service and distribution fees:

	Service Fee						Distribution Fee
Fund	Class A		Class B		Class C		Class B		Class C
Core Plus Bond Fund	$	286,509	$	43,079	$	42,089	$	129,238	$	126,266
High Income Fund		87,807		8,152		17,747		24,457		53,241
International Bond Fund		1,596		—		611		—		1,834
Limited Term Government and Agency Fund		253,877		14,050		18,287		42,150		54,859
Strategic Income Fund		16,174,107		524,136		11,021,374		1,572,408		33,064,120

71

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

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

	Sub-Transfer Agent Expense
Fund	Class A		Class B		Class C		Class Y
Core Plus Bond Fund	$	73,883	$	10,543	$	10,396	$	21,440
High Income Fund		12,194		1,236		2,369		5
International Bond Fund		153		—		59		36
Limited Term Government and Agency Fund		23,650		1,275		1,569		1,098
Strategic Income Fund		3,867,184		129,909		2,647,064		637,999

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

Fund	Commission
Core Plus Bond Fund	$	138,007
High Income Fund		90,309
International Bond Fund		24,695
Limited Term Government and Agency Fund		68,043
Strategic Income Fund		10,524,352

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

Prior to January 1, 2008, each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $55,000. Each Independent Trustee also received a meeting attendance fee of $6,000 for each meeting of the Board of Trustees that he or she attended in person and $3,000 for each meeting that he or she attended telephonically. In addition, each Contract Review and Governance Committee member received $4,000 for each committee meeting that he or she attended in person and $2,000 for each committee meeting that he or she attended telephonically. Each Audit Committee member received $5,000 for each committee meeting that he or she attended in person and $2,500 for each committee meeting that he or she attended telephonically. The Chairperson of the Board and committee chair retainers were $200,000 and $10,000, respectively.

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 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.

g.  Redemption Fees.  Shareholders of Class A shares of High Income Fund are charged a 2% redemption fee if they redeem, including redeeming by exchange within 60 days of acquisition (including acquisition by exchange). The redemption fee is intended to offset the cost to the Fund of short-term trading, such as portfolio transaction and market impact costs associated with redemption activity and administrative costs associated with processing redemptions. The redemption fee is deducted from the shareholder’s redemption or exchange proceeds and is paid to the Fund. The “first-in, first-out” method is used to determine the holding period of redeemed or exchanged shares, which

72

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

means that if a shareholder acquired shares on different days, the shares acquired first will be redeemed or exchanged first for purposes of determining whether the redemption fee applies. A new holding period begins with each purchase or exchange. These fees are accounted for as an addition to paid-in capital and are presented on the Statements of Changes in Net Assets.

Effective June 2, 2008, the redemption fee imposed on Class A shares of Core Plus Bond Fund, International Bond Fund and Strategic Income Fund and shareholders of Class Y shares of Core Plus Bond Fund, International Bond Fund and Strategic Income Fund was eliminated. Prior to June 2, 2008, shareholders of Class A and Class Y shares of the Funds were charged a 2% redemption fee if they redeem, including redeeming by exchange, such shares within 60 days of their acquisition (including acquisition by exchange). The redemption fee was deducted from the shareholder’s redemption or exchange proceeds and was paid to the Funds. These fees were accounted for as an addition to paid-in capital and are presented on the Statements of Changes in Net Assets.

5.  Line of Credit.  Each Fund together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participates in a $200,000,000 committed line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.09% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

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

For the year ended September 30, 2008, the Funds had no borrowings under these agreements.

6.  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.

7.  Shareholders.  At September 30, 2008, the Loomis Sayles Employees’ Profit Sharing Retirement Plan held 10,697 shares of beneficial interest of Limited Term Government and Agency Fund. At September 30, 2008, Natixis US owned shares equating to 74.23% of International Bond Fund’s net assets.

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

	Year Ended September 30, 2008					Year Ended September 30, 2007
Core Plus Bond Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	3,961,377		$	44,610,104		2,862,355		$	32,253,428
Issued in connection with the reinvestment of distributions	416,060			4,674,418		327,958			3,693,825
Redeemed	(2,742,021	)		(30,840,053	)	(1,977,946	)		(22,285,053	)
Net change	1,635,416		$	18,444,469		1,212,367		$	13,662,200
Class B
Issued from the sale of shares	81,830		$	928,726		2,199,092		$	24,806,440
Issued in connection with the reinvestment of distributions	43,582			492,099		70,968			800,778
Redeemed	(6,832,567	)		(77,200,182	)	(4,340,292	)		(48,938,825	)
Net change	(6,707,155	)	$	(75,779,357	)	(2,070,232	)	$	(23,331,607	)
Class C
Issued from the sale of shares	1,866,796		$	20,868,873		686,381		$	7,745,373
Issued in connection with the reinvestment of distributions	25,095			281,730		13,038			146,800
Redeemed	(483,069	)		(5,447,710	)	(199,397	)		(2,240,505	)
Net change	1,408,822		$	15,702,893		500,022		$	5,651,668
Class Y
Issued from the sale of shares	1,132,575		$	12,755,055		598,492		$	6,770,657
Issued in connection with the reinvestment of distributions	44,572			502,262		36,251			410,202
Redeemed	(654,873	)		(7,360,390	)	(293,171	)		(3,314,000	)
Net change	522,274		$	5,896,927		341,572		$	3,866,859
Increase (decrease) from capital share transactions	(3,140,643	)	$	(35,735,068	)	(16,271	)	$	(150,880	)

73

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

8.  Capital Shares (continued).

	Year Ended September 30, 2008					Year Ended September 30, 2007
High Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	4,904,752		$	23,822,307		2,247,757		$	11,689,925
Issued in connection with the reinvestment of distributions	378,438			1,831,932		295,946			1,539,928
Redeemed	(2,555,411	)		(12,401,358	)	(1,884,840	)		(9,783,658	)
Net change	2,727,779		$	13,252,881		658,863		$	3,446,195
Class B
Issued from the sale of shares	44,248		$	206,339		106,656		$	557,060
Issued in connection with the reinvestment of distributions	26,234			128,112		39,879			208,208
Redeemed	(356,172	)		(1,746,563	)	(756,563	)		(3,941,404	)
Net change	(285,690	)	$	(1,412,112	)	(610,028	)	$	(3,176,136	)
Class C
Issued from the sale of shares	1,607,159		$	7,812,971		479,271		$	2,499,368
Issued in connection with the reinvestment of distributions	53,048			255,350		30,663			159,675
Redeemed	(346,620	)		(1,670,004	)	(159,243	)		(825,637	)
Net change	1,313,587		$	6,398,317		350,691		$	1,833,406
Class Y*
Issued from the sale of shares	922,271		$	4,329,547		—		$	—
Issued in connection with the reinvestment of distributions	9,401			42,724		—			—
Redeemed	(27,536	)		(125,340	)	—			—
Net change	904,136		$	4,246,931		—		$	—
Increase (decrease) from capital share transactions	4,659,812		$	22,486,017		399,526		$	2,103,465

* From commencement of operations on February 29, 2008 through September 30, 2008.

	Period Ended September 30, 2008**					Year Ended September 30, 2007
International Bond Fund	Shares			Amount		Shares		Amount
Class A
Issued from the sale of shares	327,200		$	3,256,979		—	$	—
Issued in connection with the reinvestment of distributions	1,505			14,727		—		—
Redeemed	(116,234	)		(1,149,151	)	—		—
Net change	212,471		$	2,122,555		—	$	—
Class C
Issued from the sale of shares	101,736		$	1,017,705		—	$	—
Issued in connection with the reinvestment of distributions	284			2,804		—		—
Redeemed	(27,588	)		(272,845	)	—		—
Net change	74,432		$	747,664		—	$	—
Class Y
Issued from the sale of shares	1,079,358		$	10,809,876		—	$	—
Issued in connection with the reinvestment of distributions	21,719			215,650		—		—
Redeemed	(13,547	)		(132,409	)	—		—
Net change	1,087,530		$	10,893,117		—	$	—
Increase (decrease) from capital share transactions	1,374,433		$	13,763,336		—	$	—

** From commencement of operations on February 1, 2008 through September 30, 2008.

74

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

8.  Capital Shares (continued).

	Year Ended September 30, 2008					Year Ended September 30, 2007
Limited Term Government and Agency Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	2,035,015		$	22,451,140		1,309,019		$	14,378,605
Issued in connection with the reinvestment of distributions	269,896			2,982,151		292,426			3,213,916
Redeemed	(2,604,784	)		(28,704,540	)	(2,117,193	)		(23,272,778	)
Net change	(299,873	)	$	(3,271,249	)	(515,748	)	$	(5,680,257	)
Class B
Issued from the sale of shares	67,405		$	747,264		52,757		$	579,223
Issued in connection with the reinvestment of distributions	16,247			179,371		22,869			251,120
Redeemed	(288,166	)		(3,175,026	)	(364,484	)		(3,999,981	)
Net change	(204,514	)	$	(2,248,391	)	(288,858	)	$	(3,169,638	)
Class C
Issued from the sale of shares	1,833,502		$	20,260,185		217,432		$	2,387,379
Issued in connection with the reinvestment of distributions	13,505			149,095		9,729			106,924
Redeemed	(257,963	)		(2,855,031	)	(133,821	)		(1,470,673	)
Net change	1,589,044		$	17,554,249		93,340		$	1,023,630
Class Y
Issued from the sale of shares	367,309		$	4,065,238		217,392		$	2,396,763
Issued in connection with the reinvestment of distributions	13,550			150,194		12,038			132,694
Redeemed	(164,425	)		(1,829,051	)	(71,670	)		(782,866	)
Net change	216,434		$	2,386,381		157,760		$	1,746,591
Increase (decrease) from capital share transactions	1,301,091		$	14,420,990		(553,506	)	$	(6,079,674	)
	Year Ended September 30, 2008					Year Ended September 30, 2007
Strategic Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	197,552,720		$	2,901,194,415		227,999,564		$	3,401,598,542
Issued in connection with the reinvestment of distributions	22,956,546			331,016,205		11,338,684			169,415,802
Redeemed	(140,438,578	)		(1,990,731,186	)	(51,264,181	)		(764,388,527	)
Net change	80,070,688		$	1,241,479,434		188,074,067		$	2,806,625,817
Class B
Issued from the sale of shares	410,099		$	6,009,632		5,257,203		$	78,803,755
Issued in connection with the reinvestment of distributions	401,421			5,839,477		304,859			4,574,346
Redeemed	(2,816,244	)		(41,124,244	)	(2,532,198	)		(37,899,012	)
Net change	(2,004,724	)	$	(29,275,135	)	3,029,864		$	45,479,089
Class C
Issued from the sale of shares	118,265,590		$	1,746,293,697		144,314,933		$	2,160,951,327
Issued in connection with the reinvestment of distributions	7,195,646			104,006,617		3,151,961			47,297,035
Redeemed	(49,785,407	)		(709,035,285	)	(19,028,982	)		(284,966,223	)
Net change	75,675,829		$	1,141,265,029		128,437,912		$	1,923,282,139
Class Y
Issued from the sale of shares	47,274,736		$	690,204,820		29,854,706		$	445,418,950
Issued in connection with the reinvestment of distributions	1,084,519			15,512,730		346,573			5,174,756
Redeemed	(25,704,216	)		(361,225,740	)	(6,672,173	)		(99,332,888	)
Net change	22,655,039		$	344,491,810		23,529,106		$	351,260,818
Increase (decrease) from capital share transactions	176,396,832		$	2,697,961,138		343,070,949		$	5,126,647,863

75

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees of Natixis Funds Trust I and Loomis Sayles Funds II and Shareholders of Loomis Sayles Core Plus Bond Fund, Loomis Sayles High Income Fund, Loomis Sayles International Bond Fund, Loomis Sayles Limited Term Government and Agency Fund, and Loomis Sayles Strategic Income Fund:

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Loomis Sayles Core Plus Bond Fund, a series of Natixis Funds Trust I, and Loomis Sayles High Income Fund, Loomis Sayles International Bond Fund, Loomis Sayles Limited Term Government and Agency Fund and Loomis Sayles Strategic Income Fund, each a series of Loomis Sayles Funds II (collectively, “the Funds”), at September 30, 2008, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2008

76

2008 U.S. TAX DISTRIBUTION INFORMATION TO SHAREHOLDERS (unaudited)

Corporate Dividends Received Deduction.  For the fiscal year ended September 30, 2008, a percentage of dividends distributed by the Funds listed below qualify for the dividends received deduction for corporate shareholders. These percentages are as follows:

Fund	Qualifying Percentage
High Income Fund	2.16	%
Strategic Income Fund	3.03	%

Capital Gains Distributions.  Pursuant to Internal Revenue Section 852(b), the following Funds paid distributions, which have been designated as capital gains distributions for the fiscal year ended September 30, 2008.

Fund	Amount
Strategic Income Fund	$	9,533,629

Qualified Dividend Income.  For the fiscal year ended September 30, 2008, the Funds below will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 5% to 15% depending on an individual’s tax bracket. If the Funds pay a distribution during calendar year 2008, complete information will be reported in conjunction with Form 1099-DIV.

Fund

Core Plus Bond Fund

High Income Fund

Strategic Income Fund

77

TRUSTEE AND OFFICER INFORMATION

The tables below provide certain information regarding the Trustees and officers of Natixis Funds Trust I and Loomis Sayles Funds II (the “Trusts”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Trusts’ Statements of Additional Information include additional information about the Trustees of the Trusts are available by calling Loomis Sayles at 800-314-2029.

Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen*** and Other Directorships Held
INDEPENDENT TRUSTEES
Graham T. Allison, Jr. (1940)	Trustee Since 1984 for Natixis Funds Trust I (including its predecessors) and since 2003 for Loomis Sayles Funds II Contract Review and Governance Committee Member	Douglas Dillon Professor and Director of the Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University	41 Director, Taubman Centers, Inc. (real estate investment trust)
Charles D. Baker (1956)	Trustee Since 2005 Contract Review and Governance Committee Member	President and Chief Executive Officer, Harvard Pilgrim Health Care (health plan)	41 None
Edward A. Benjamin (1938)	Trustee Since 2003 for Natixis Funds Trust I and since 2002 for Loomis Sayles Funds II Chairman of the Contract Review and Governance Committee	Retired	41 None
Daniel M. Cain (1945)	Trustee Since 1996 for Natixis Funds Trust I and since 2003 for Loomis Sayles Funds II Chairman of the Audit Committee	President and Chief Executive Officer, Cain Brothers & Company, Incorporated (investment banking)	41 Director, Sheridan Healthcare Inc. (physician practice management)
Kenneth A. Drucker (1945)	Trustee Since 2008 Contract Review and Governance Committee Member	Formerly, Treasurer, Sequa Corp. (manufacturing)	41 Director, M Fund, Inc. (registered investment company)
Jonathan P. Mason (1958)	Trustee Since 2007 Audit Committee Member	Chief Financial Officer, Cabot Corp. (specialty chemicals); formerly, Vice President and Treasurer, International Paper Company; formerly, Chief Financial Officer, Carter Holt Harvey (forest products)	41 None

78

TRUSTEE AND OFFICER INFORMATION

Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen*** and Other Directorships Held
INDEPENDENT TRUSTEES continued
Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee since 1982 for Natixis Funds Trust I (including its predecessors) and since 2003 for Loomis Sayles Funds II Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting); formerly, Senior Vice President and Director, The Boston Consulting Group, Inc. (management consulting)	41 Director, Verizon Communications; Director, Rohm and Haas Company (specialty chemicals); Director, AES Corporation (international power company)
Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School; and formerly, Dean for Finance & Chief Financial Officer, Harvard Medical School	41 None

79

TRUSTEE AND OFFICER INFORMATION

Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen*** and Other Directorships Held
INTERESTED TRUSTEES
Robert J. Blanding1 (1947) 555 California Street San Francisco, CA 94104	Trustee Since 2003 for Natixis Funds Trust I Chief Executive Officer and Trustee for Loomis Sayles Funds II since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	41 None
John T. Hailer2 (1960)	Trustee Since 2000 for Natixis Funds Trust I and since 2003 for Loomis Sayles Funds II	President and Chief Executive Officer-U.S. and Asia, Natixis Global Asset Management, L.P.; formerly, President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P., Natixis Distributors, L.P. and Natixis Global Associates, Inc.	41 None

* Each Trustee serves until retirement, resignation or removal from the Board of Trustees. The current retirement age is 72. The position of Chairperson of the Board is appointed for a two-year term. Ms. Moose was appointed to serve an additional two-year term as the Chairperson of the Board of Trustees on September 14, 2007.

** Each person listed above, except as noted, holds the same position(s) with the Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Gateway Trust and the Natixis Cash Management Trust (collectively, the “Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (collectively, the “Loomis Sayles Funds Trusts”), and Hansberger International Series. Previous positions during the past five years with Natixis Distributors, L.P. (the “Distributor”), Natixis Asset Management Advisors, L.P. (“Natixis Advisors”), or Loomis, Sayles & Company, L.P. are omitted if not materially different from a Trustee’s or officer’s current position with such entity.

*** The Trustees of the Trusts serve as trustees of a fund complex that includes all series of the Natixis Funds Trusts, the Loomis Sayles Funds Trusts and Hansberger International Series (collectively, the “Fund Complex”).

¹ Mr. Blanding is deemed an “interested person” of the Trusts because he holds the following positions with affiliated persons of the Trusts: President, Chairman, Director and Chief Executive Officer of Loomis, Sayles & Company, L.P.

² Mr. Hailer is deemed an “interested person” of the Trusts because he holds the following positions with affiliated persons of the Trusts: President and Chief Executive Officer-U.S. and Asia, Natixis Global Asset Management, L.P.

80

TRUSTEE AND OFFICER INFORMATION

Name and Year of Birth	Position(s) Held with the Trusts	Term of Office* and Length of Time Served	Principal Occupation During Past 5 Years**
OFFICERS OF THE TRUST
Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk (formerly, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk), Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.
Daniel J. Fuss (1933) One Financial Center Boston, MA 02111	Executive Vice President of Loomis Sayles Funds II	Since June 2003	Vice Chairman and Director, Loomis, Sayles & Company, L.P.
David Giunta (1965)	President and Chief Executive Officer of Natixis Funds Trust I and President of Loomis Sayles Funds II	Since March 2008	President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; formerly, President, Fidelity Charitable Gift Fund; and formerly, Senior Vice President, Fidelity Brokerage Company
Russell L. Kane (1969)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Chief Compliance Officer since May 2006; Assistant Secretary since June 2004; and Anti-Money Laundering Officer since April 2007	Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; and formerly, Senior Counsel, Columbia Management Group

81

TRUSTEE AND OFFICER INFORMATION

Name and Year of Birth	Position(s) Held with the Trusts	Term of Office* and Length of Time Served	Principal Occupation During Past 5 Years**
OFFICERS OF THE TRUST continued
Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; and formerly, Senior Director, PFPC Inc.
Robert Krantz (1964)	Executive Vice President	Since September 2007	Executive Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.

* Each officer of the Trusts serves for an indefinite term in accordance with the Trusts’ current By-laws until the date his or her successor is elected and qualified, or until he or she sooner dies, retires, is removed or becomes disqualified.

** Each person listed above, except as noted, holds the same position(s) with the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series. Mr. Fuss is not an officer of the Natixis Funds Trusts or the Hansberger International Series. Previous positions during the past five years with the Distributor, Natixis Advisors or Loomis Sayles are omitted if not materially different from a Trustee’s or officer’s current position with such entity.

82

EQUITY FUNDS

ANNUAL REPORT

September 30, 2008

Loomis Sayles Global Markets Fund

Loomis Sayles Growth Fund

Loomis Sayles Research Fund

Loomis Sayles Value Fund

TABLE OF CONTENTS

Management Discussion and Performance page 1

Portfolio of Investments page 16

Financial Statements page 31

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

Negative news swept through the financial markets during the 12 months ended September 30, 2008, reaching a crescendo in the closing months, as investor fears accelerated and spread through global stock and bond markets.

Throughout the period, Loomis Sayles Global Markets Fund remained weighted toward stocks, which underperformed global bonds. The fund’s return was -21.87% for the fiscal year ended September 30, 2008, based on the net asset value of Class A shares and $0.53 in dividends and $0.44 in capital gains reinvested during the period. The fund outperformed its primary benchmark, the MSCI World Index (common stocks from developed countries around the world), which returned -25.62%. Its secondary benchmark, Citigroup World Government Bond Index (government bonds issued in the United States and other developed countries) returned 5.90%. The average return on Morningstar’s World Allocation category (primarily global equity funds) was -17.07% for the period.

WHICH WERE THE BEST AND WORST SECTORS?

Fiscal year 2008 included a market-wide sell-off that affected all sectors in both the equity and bond markets. While no sector posted positive returns on an absolute basis, the fund’s equity holdings in the financial sector held up relatively well. Some of our best-performing individual stocks were credit card processor MasterCard and financial giants JPMorgan Chase and Wells Fargo. After declining through mid July, JPMorgan and Wells Fargo emerged as survivors. McDonald’s also held up well on the strength of its pledge to raise its return to shareholders. The fund’s fixed-income performance was supported by our emphasis on high-quality issues and select local currency markets, including the Japanese yen and the U.S. dollar.

On a sector basis, information technology stocks underperformed, weighed down by concerns about a global economic slowdown. Specific equity holdings that hurt were Apple, Goldman Sachs and Google. Apple has been gaining market share, but investors remained concerned about its ability to grow in a slowing economy. Relative to its peers, Goldman held up well and was still profitable as of September 30, 2008, but it too succumbed to the negative pressures on financial companies. Shares of Google were down after the internet search company’s revenue and profits fell short of expectations. We sold Goldman stock, but some of its bonds remain in the portfolio. Bond holdings that detracted were mostly high-yield issues and those in the embattled financial sector.

WHAT WAS OUR STRATEGY THIS YEAR?

Our basic strategy has not changed. On the equity side, we are maintaining a global portfolio of what we believe to be the best value and growth prospects we could find. We focus on stock selection rather than country allocation. The same may be said of the fixed-income side, where we focus on individual issues and value. In our opinion, as measured by wider yield spreads, value is abundant in this market.

WHAT NOW?

Between the Federal Reserve and the Treasury, massive sums have been brought to bear in an effort to keep the financial system functioning. Continuing economic headwinds include a tight credit environment, possible recession and the loss of wealth from home and stock prices.

Our current forecast is for a slight decline in growth for the fourth quarter of 2008 and the first quarter of 2009. We see more consolidation, more regulation and tighter lending standards ahead. The U.S. economy is still at risk, but we believe things could start to look up by mid 2009. However, a recovery may take longer than we expect and it is unlikely to be robust. Some emerging economies may grow at a faster rate if they become less dependent on trade with the United States and other developed economies. We think a bottoming process may be underway now, as worldwide efforts to restore confidence, liquidity and credit to the global financial system take effect.

1

LOOMIS SAYLES GLOBAL MARKETS FUND

Investment Results through September 30, 2008

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 Returns — September 30, 2008⁵

	1 YEAR		5 YEARS		10 YEARS
CLASS A1 (Inception 2/1/06)
Net Asset Value2	-21.87	%	7.65	%	10.94	%
With Maximum Sales Charge3	-26.39		6.39		10.29
CLASS C1 (Inception 2/1/06)
Net Asset Value2	-22.42		6.86		10.11
With CDSC4	-23.15		6.86		10.11
CLASS Y1 (Inception 5/1/96)
Net Asset Value2	-21.66		7.92		11.21
COMPARATIVE PERFORMANCE	1 YEAR		5 YEARS		10 YEARS
MSCI World Index	-25.62	%	7.86	%	4.26	%
Citigroup World Government Bond Index	5.90		5.34		5.38
Morningstar World Allocation Fund Avg.	-17.07		8.44		7.43

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

Class Y shares, the successor to the fund’s Institutional Class, 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	9/30/08	9/30/07
Common Stocks	65.5	66.6
Preferred Stocks	0.1	0.0
Bonds & Notes	26.6	27.2
Short-Term Investments and Other	7.8	6.2
	% of Net Assets as of
TEN LARGEST HOLDINGS	9/30/08	9/30/07
JPMorgan Chase & Co.	2.7	—
Monsanto Co.	2.3	1.4
QUALCOMM, Inc.	2.3	—
Wal-Mart Stores, Inc.	2.2	—
Apple, Inc.	2.1	2.1
Nintendo Co. Ltd.	2.0	2.4
Visa, Inc., Class A	2.0	—
McDonald’s Corp.	1.9	1.3
Standard Chartered PLC	1.9	—
Petroleo Brasileiro SA	1.8	—
	% of Net Assets as of
FIVE LARGEST INDUSTRIES	9/30/08	9/30/07
Software	6.2	3.5
Oil, Gas & Consumable Fuels	5.6	1.4
Commercial Banks	4.7	0.6
Computers & Peripherals	4.6	3.2
Electrical Equipment	4.5	2.3

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	1.37%	1.25%
C	2.11	2.00
Y	1.02	1.00

NOTES TO CHARTS

See page 9 for a description of the indexes.

¹ Returns shown in the chart include performance of the fund’s Institutional Class shares, which were redesignated as Class Y shares on 2/1/06. For periods prior to the inception of Class A and Class C shares (2/1/06), the prior Institutional Class performance has been restated to reflect the sales loads and expenses of Class A and Class C shares. The restatement of the fund’s performance to reflect Class A and Class C expenses is based on the net expenses of the Class after taking into account the fund’s then current expense cap arrangements. The growth of $10,000 chart compares the performance of Class A shares, at net asset value, to the performance of Class A shares including the maximum sales charge of 5.75%. This chart reflects the performance of Class A Shares rather than Class Y shares because Class A shares have the highest sales charge. Prior to 2/1/06, the fund was offered without a sales charge.

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 1/31/09.

2

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

Growing fears that disturbances in the credit markets could undermine growth in the United States and international markets led to dramatic declines in stock prices during the 12 months ended September 30, 2008. Equity prices continued to be volatile through the end of the period, even as the U.S. Treasury Department and the Federal Reserve Board attempted to inject added liquidity into the financial markets and restore confidence in the economic outlook.

During this turbulent period, Class A shares of Loomis Sayles Growth Fund returned -28.67% at net asset value for the fiscal year ended September 30, 2008. For the same period, the Russell 1000 Growth Index posted a -20.88% return, while the average return on the funds in Morningstar’s Large Growth category was -23.22%.

WHAT WAS BEHIND THE FUND’S RESULTS?

Stock selections in the information technology and energy sectors were primarily responsible for the fund’s disappointing performance. An underweight relative to the benchmark in consumer staples also detracted, as this defensive sector generally held up better than others. However, good stock selection within the financial sector offset some of these negatives.

WHICH STOCKS HELPED AND WHICH HURT?

Top performers during this challenging period included credit card processor MasterCard, discount broker Charles Schwab and retail giant Wal-Mart Stores. MasterCard showed earnings strength throughout the year as debit card transactions began to grow worldwide. We also saw the company as an attractive way to invest in the financial sector without exposure to credit risk because MasterCard’s principal business is to process payments between merchants and banks. The share price of Charles Schwab rose during the period after the company reported strong asset flows, despite the heightened level of uncertainty in the financial markets. Wal-Mart’s stock price gained as the slowing economy encouraged consumers to shop at lower-priced retailers.

On an absolute basis and relative to the Russell 1000 Growth Index, the fund’s holdings in information technology and energy were a drag on performance. Some consumer discretionary holdings also hurt results. In technology, the most noteworthy underperformers were Apple and Cisco Systems. Apple’s stock fell as investors became worried about the company’s ability to sustain earnings during a slowdown in consumer spending. Slower spending by corporate customers affected Cisco, which forecasted lower-than-expected revenue growth for networking equipment. We sold Cisco, but we still like Apple. In the energy sector, the share prices of National Oilwell Varco, an oil field services company, Transocean, an offshore drilling specialist, and EOG Resources, a natural gas and oil-drilling corporation, all did well in the first part of the fiscal year but declined late in the period as energy prices retreated. We sold Varco. Among our consumer discretionary holdings, Internet search firm Google failed to meet earnings expectations late in the period, while online retailer Amazon.com’s share price fell amid growing doubts about consumer stocks generally. Both remain in the portfolio.

WHAT NOW?

Our current forecast is for a slight decline in growth for the fourth quarter of 2008 and the first quarter of 2009. Throughout this fiscal year, we maintained our emphasis on large-cap growth companies with strong fundamentals and product leadership in their competitive markets. However, we did make some changes in overall fund positioning, scaling back exposure to the global commodities market by reducing investments in materials and processing and in producer durables. At the same time, we deployed assets into sectors where we believed opportunities should present themselves when the economy begins to stabilize. We also moved from an underweight to an overweight position in the consumer discretionary group and increased our emphasis on financial services. We think some financial companies that have weathered this year’s storms may begin to do well next year.

3

LOOMIS SAYLES GROWTH FUND

Investment Results through September 30, 2008

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 Returns — September 30, 2008⁵

	1 YEAR		5 YEARS		10 YEARS
CLASS A1 (Inception 12/31/96)
Net Asset Value2	-28.67	%	2.54	%	1.23	%
With Maximum Sales Charge3	-32.80		1.33		0.63
CLASS B1 (Inception 9/12/03)
Net Asset Value2	-29.16		1.75		0.46
With CDSC4	-32.70		1.38		0.46
CLASS C1 (Inception 9/12/03)
Net Asset Value2	-29.26		1.75		0.46
With CDSC4	-29.97		1.75		0.46
CLASS Y1 (Inception 5/16/91)
Net Asset Value2	-28.42		2.86		1.51
COMPARATIVE PERFORMANCE	1 YEAR		5 YEARS		10 YEARS
Russell 1000 Growth Index	-20.88	%	3.74	%	0.59	%
Morningstar Large Growth Fund Avg.	-23.22		3.96		2.35

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, the successor to the fund’s Institutional Class, 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	9/30/08	9/30/07
Common Stocks	96.0	99.2
Short-Term Investments and Other	4.0	0.8
	% of Net Assets as of
TEN LARGEST HOLDINGS	9/30/08	9/30/07
QUALCOMM, Inc.	4.1	—
Wal-Mart Stores, Inc.	4.0	—
Monsanto Co.	3.9	2.7
Apple, Inc.	3.5	4.3
International Business Machines Corp.	3.5	—
Charles Schwab Corp. (The)	3.2	—
Google, Inc., Class A	3.2	4.0
BlackRock, Inc.	3.0	—
Oracle Corp.	2.9	2.0
Visa, Inc., Class A	2.9	—
	% of Net Assets as of
FIVE LARGEST INDUSTRIES	9/30/08	9/30/07
Computers & Peripherals	9.1	11.8
Capital Markets	8.5	4.8
Software	7.1	5.9
Health Care Equipment & Supplies	7.0	2.9
IT Services	6.0	2.5

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	1.14%	1.14%
B	1.85	1.85
C	1.88	1.88
Y	0.67	0.67

NOTES TO CHARTS

See page 9 for a description of the indexes.

¹ Returns shown in the chart include performance of the fund’s Retail Class shares, which were converted to Class A shares on 9/12/03. The prior Retail Class performance has been restated to reflect expenses and sales loads of Class A shares. For periods prior to the inception of Class B and Class C shares (9/12/03), performance is based on prior Institutional Class performance, restated to reflect the loads and expenses of Class B and Class C shares. The restatement of the fund’s performance to reflect Class A expenses is based on the net expenses of the Class after taking into effect the fund’s then current expense cap arrangements. Class Y performance includes performance of the prior Institutional Class, which was redesignated as Class Y shares on 9/12/03, Institutional Class performance has been restated to reflect the net expenses of Class Y after taking into effect the fund’s then current expense cap arrangements. The growth of $10,000 chart compares the performance of Class A shares, at net asset value, to the performance of Class A shares including the maximum sales charge of 5.75%. This chart reflects the performance of Class A Shares rather than Class Y shares because Class A shares have the highest sales charge. Prior to 9/12/03, the fund was offered without a sales charge.

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 1/31/09.

4

LOOMIS SAYLES RESEARCH 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. Small-cap stocks are generally more volatile than the market. 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

Against a backdrop of a widening credit crisis and weakening global economic growth, stock values fell significantly during the fiscal year ended September 30, 2008. Although Loomis Sayles Research Fund outperformed its benchmark and competitor peer group, the downdraft took its toll on the fund. For the 2008 fiscal year, Class A shares of the fund returned -20.40%, with $0.05 in dividends and $0.97 in capital gains reinvested during the period. The S&P 500 Index declined -21.98% for the period, while the average return on the funds in Morningstar’s Large Growth category was -23.22%.

WHAT WAS BEHIND THE FUND’S RESULTS?

The fund’s overall defensive posture, combined with its emphasis on high-quality financial stocks, helped give the fund an edge over its benchmark and Morningstar peer group. However, investments in more cyclical sectors, such as information technology, industrials and consumer discretionary groups, hurt results as the macroeconomic environment deteriorated during the period.

WHICH STOCKS WERE POSITIVE?

As increasingly cautious investors sought out more defensive areas, our selections in the consumer staples and utilities groups were positive. In the staples group, our emphasis on retailer Wal-Mart Stores and consumer products corporation Procter & Gamble were positive. Both companies benefited from opportunities to expand their profit margins, even as their costs rose. In addition to consumer staples, on a sector basis, utilities stocks did relatively well, due to their higher dividends and lower sensitivity to economic downturns.

Other top-performing fund holdings were Wells Fargo, Covidien and Hess Corp. In a difficult year for banks, Wells Fargo stood out for the quality of its loan portfolio, its relatively high capital ratios, durable deposit funding and the company’s unquestioned access to liquidity. Covidien, a global healthcare company, benefited when its turnaround efforts and investments in its product line led to accelerated sales growth. We sold our position in Hess after the share price of this energy corporation rose on news of key discoveries in oil fields off the coast of Brazil, in which it had interests. The sale proved timely, as we avoided the subsequent sell-off of energy stocks late in the period.

WHICH WERE NEGATIVE?

Our information technology and industrial holdings were hurt by the slowing economy. In technology, rising competitive pressures affected both Research In Motion, developer of the Blackberry wireless communications line, and Akamai Technologies, provider of online computer platforms. We sold both positions. Two factors undermined several of our industrial holdings. First, the delay in Boeing’s 787 aircraft program led to retreating stock valuations of several holdings, including Boeing, Precision Castparts and Rockwell Collins, despite their strong earnings outlooks. Second, the market tended to move away from industrial stocks with higher price/earnings multiples because the overall economy was weakening. This affected shares of companies such as Flowserve (which makes fluid motion and control products) and SPX Corp (which offers specialized engineering solutions for energy companies). We sold both positions.

In absolute terms, the fund’s worst performers were Apple, Cisco Systems and AT&T. Investors worried about Apple’s ability to sustain its growth, despite the company’s market share gains in personal computers and the successful introduction of a new iPhone. Cisco, meanwhile, anticipated slowing demand from corporate customers for its information networking equipment and we sold the position. AT&T faced an increasingly competitive market in wireless communications. We remain optimistic for Apple and AT&T.

WHAT NOW?

Rarely in history has this much uncertainty unsettled world financial markets. Rather than attempt to align this fund with unreliable forecasts of macroeconomic trends, our policy is to keep the fund’s overall sector weightings consistent with those of the benchmark S&P 500 Index. We rely on our research team’s efforts to develop investment ideas based on our bottom-up analysis of industries and competitive dynamics, using stock selection in an effort to neutralize some of the risks.

5

LOOMIS SAYLES RESEARCH FUND

Investment Results through September 30, 2008

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 Returns — September 30, 2008⁶

	1 YEAR		5 YEARS		SINCE FUND INCEPTION
CLASS A1 (Inception 11/30/01)
Net Asset Value2	-20.40	%	6.28	%	-0.76	%
With Maximum Sales Charge3	-25.01		5.03		-1.47
CLASS B1 (Inception 9/12/03)
Net Asset Value2	-21.01		5.51		-1.55
With CDSC4	-24.57		5.19		-1.55
CLASS C1 (Inception 9/12/03)
Net Asset Value2	-21.10		5.41		-1.61
With CDSC4	-21.81		5.41		-1.61
CLASS Y1 (Inception 7/31/00)
Net Asset Value2	-20.17		6.65		-0.43
COMPARATIVE PERFORMANCE	1 YEAR		5 YEARS		SINCE FUND INCEPTION5
S&P 500 Index	-21.98	%	5.17	%	-0.76	%
Morningstar Large Growth Fund Avg.	-23.22		3.96		-3.81

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, the successor to the fund’s Institutional Class, 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	9/30/08	9/30/07
Common Stocks	100.0	99.8
Short-Term Investments and Other	—	0.2
	% of Net Assets as of
TEN LARGEST HOLDINGS	9/30/08	9/30/07
Wal-Mart Stores, Inc.	4.6	—
Procter & Gamble Co. (The)	4.0	—
ExxonMobil Corp.	3.9	3.9
JPMorgan Chase & Co.	3.1	—
QUALCOMM, Inc.	3.0	—
Hewlett-Packard Co.	2.8	1.5
Oracle Corp.	2.8	1.7
Bank of America Corp.	2.6	2.3
Apple, Inc.	2.6	2.3
Kroger Co. (The)	2.5	—
	% of Net Assets as of
FIVE LARGEST INDUSTRIES	9/30/08	9/30/07
Oil, Gas & Consumable Fuels	10.8	7.0
Food & Staples Retailing	7.1	2.2
Computers & Peripherals	6.4	4.8
Diversified Financial Services	5.7	3.3
Software	5.1	4.6

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	1.50%	1.25%
B	2.31	2.00
C	2.29	2.00
Y	1.11	0.85

NOTES TO CHARTS

See page 9 for a description of the indexes.

¹ Returns shown in the chart include performance of the fund’s Retail Class shares, which were converted to Class A shares on 9/12/03. The prior Retail Class performance has been restated to reflect expenses and sales loads of Class A shares. For periods before the inception of Retail Class shares (11/30/01), performance shown for Class A has been based on the performance of the fund’s Institutional Class shares, adjusted to reflect the higher expenses and sales load paid by Class A shares. For periods prior to the inception of Class B and Class C shares (9/12/03), performance is based on prior Institutional Class performance, restated to reflect the sales loads and expenses of Class B and Class C shares. The restatement of the fund’s performance to reflect Class A, Class B, and Class C expenses is based on the net expenses of the Class after taking into effect the fund’s then current expense cap arrangements. Class Y performance includes performance of the prior Institutional Class shares, which were redesignated as Class Y shares on 9/12/03. Institutional Class performance has been restated to reflect the net expenses of Class Y after taking into account the fund’s then current expense cap arrangements. The growth of $10,000 chart compares the performance of Class A shares, at net asset value, to the performance of Class A shares including the maximum sales charge of 5.75%. This chart reflects the performance of Class A shares rather than Class Y shares because Class A shares have the highest sales charge. Prior to 9/12/03, the fund was offered without a sales charge.

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 1/31/09.

6

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. The fund invests primarily in medium-sized and large-sized companies, but may invest in companies of any size

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

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

Stocks fell sharply during the fiscal year ended September 30, 2008, as the credit crisis that shook the nation’s financial system threatened to bring the economy to a standstill. As the period ended, aggressive government initiatives were underway aimed at restoring confidence, stabilizing markets and thawing frozen credit markets. Meanwhile, a global economic slowdown contributed to falling energy and commodity prices.

Good stock selection helped Loomis Sayles Value Fund comfortably outperform its benchmark and Morningstar peer group over the fund’s fiscal year. However, results in all cases were clearly negative, reflecting the extreme market weakness that has prevailed. For the fiscal year ended September 30, 2008, Class A shares of the fund returned -19.01% at net asset value, including reinvestment of $0.18 in dividends and $1.15 in capital gains. The fund’s benchmark, the Russell 1000 Value Index, returned -23.56% for the period, while the average return on the funds in Morningstar’s Large Value category was -23.87%.

WHICH SECTORS AND STOCKS DID WELL?

Shares of Tidewater rose significantly early in the year, as rising energy prices boosted demand for its specialized vessels that supply and service offshore drilling rigs. Results were favorable for the fund’s holdings in integrated oil companies. Hess Corp. was a strong performer, thanks to its participation in a major oil discovery in waters off Brazil that may greatly increase its reserves. We sold the position before oil prices started down. Covidien has also been a top performer this year. The company produces a wide range of healthcare products and the stock price rebounded based on new product announcements, accelerating sales and strong operating results. Investors flocked to Wal-Mart Stores, viewing the stock as a defensive safe haven in volatile times. Wal-Mart’s margins rose enough to offset some of the pressure resulting from rising costs.

WHICH STOCKS WERE NEGATIVE?

We generally avoided financial companies, especially stocks of firms at the center of the Wall Street crisis. Our underweight gave the fund an advantage relative to the benchmark, but financials were the period’s weakest sector. Insurer AIG was a major detractor as it was forced to accept a large cash infusion from the government in order to avoid systemic damage from its possible collapse. We sold the position. AT&T was another poor performer. The company was pressured by a highly competitive wireless market, cable-based phone services and subscriber losses tied to the slowing economy. Slack housing demand, costly energy in the first half of the year and mild weather took a toll on utility companies Exelon and PG&E, but both of these defensive positions remain in the portfolio.

WHAT NOW?

Our bottom-up investment research style is helping us identify several ideas that we believe look attractive in the beleaguered financial sector, although risk controls that are built into our process oblige us to wait and see how the government’s rescue plans play out. We are also easing back on energy exposure relative to the benchmark as oil and gas prices fall.

Falling equity prices appear to reflect investor expectations of a recession and lower corporate earnings. By the end of September 2008, valuations had become very low and concerns about looming recession seemed to have overpowered inflation concerns, at least for the time being. Steps taken by the U.S. government should remove the most toxic assets from the financial system, in our opinion, helping to build liquidity and restore confidence in equity and fixed-income markets. European authorities are also taking action and may eventually begin to consider more broad-based measures. While we do not anticipate an immediate or rapid recovery, it does seem possible that a bottoming process is underway.

7

LOOMIS SAYLES VALUE FUND

Investment Results through September 30, 2008

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 Returns — September 30, 2008⁵

	1 YEAR		5 YEARS		10 YEARS
CLASS A1 (Inception 6/30/06)
Net Asset Value2	-19.01	%	9.71	%	5.32	%
With Maximum Sales Charge3	-23.66		8.42		4.70
CLASS B1 (Inception 6/1/07)
Net Asset Value2	-19.65		8.76		4.20
With CDSC4	-23.44		8.47		4.20
CLASS C1 (Inception 6/1/07)
Net Asset Value2	-19.62		8.76		4.21
With CDSC4	-20.38		8.76		4.21
CLASS Y1 (Inception 5/13/91)
Net Asset Value2	-18.67		10.04		5.66
COMPARATIVE PERFORMANCE	1 YEAR		5 YEARS		10 YEARS
Russell 1000 Value Index	-23.56	%	7.12	%	5.55	%
Morningstar Large Value Fund Avg.	-23.87		5.56		4.67

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, the successor to the fund’s Institutional Class, 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	9/30/08	9/30/07
Common Stocks	97.3	96.9
Short-Term Investments and Other	2.7	3.1
	% of Net Assets as of
TEN LARGEST HOLDINGS	9/30/08	9/30/07
ExxonMobil Corp.	4.3	3.9
AT&T, Inc.	4.0	4.5
JPMorgan Chase & Co.	3.1	2.4
Bank of America Corp.	2.4	2.5
Total SA, Sponsored ADR	2.2	2.0
General Electric Co.	2.2	—
Berkshire Hathaway, Inc., Class B	2.2	1.8
Schering-Plough Corp.	2.1	—
PNC Financial Services Group, Inc.	2.0	—
Allstate Corp.	2.0	2.0
	% of Net Assets as of
FIVE LARGEST INDUSTRIES	9/30/08	9/30/07
Pharmaceuticals	9.8	6.0
Diversified Financial Services	8.3	7.3
Oil, Gas & Consumable Fuels	7.9	10.4
Insurance	7.4	7.6
Media	6.4	6.1

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	1.09%	1.09%
B	1.89	1.85
C	1.94	1.85
Y	0.72	0.72

NOTES TO CHARTS

See page 9 for a description of the indexes.

¹ Returns shown in the chart include performance of the fund’s Retail Class shares, which were redesignated to Class A shares on 6/1/07. Performance has been restated to reflect the current sales load of Class A shares. For periods before the inception of Retail Class shares (6/30/06), performance shown for Class A has been based on the performance of the fund’s Institutional Class shares, adjusted to reflect the higher fees and expenses paid by Class A shares. The restatement of the fund’s performance to reflect Class A expenses is based on the net expenses of the Class after taking into effect the fund’s then current expense cap arrangements. For periods prior to the inception of Class B and Class C shares (6/1/07), performance is based on prior Institutional Class performance, restated to reflect the sales loads and expenses of Class B and Class C shares, respectively. The growth of $10,000 chart compares the performance of Class A shares, at net asset value, to the performance of Class A shares including the maximum sales charge of 5.75%. This chart reflects the performance of Class A Shares rather than Class Y shares because Class A shares have the highest sales charge. Prior to 6/1/07, the fund was offered without a sales charge.

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 1/31/09.

8

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.

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

INDEX/AVERAGE DESCRIPTIONS:

Citigroup World Government Bond Index (“Citigroup WGBI”) is an unmanaged index that measures the most significant and liquid government bond indices located around the world with a rating of at least investment grade.

Morgan Stanley Capital International World Index (“MSCI World”) is an unmanaged index that measures global developed market equity performance.

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

Standard & Poor’s 500 Index (“S&P 500”) is an unmanaged index of U.S. common stock performance.

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, 2008 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

9

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 minimum account fee charges; and ongoing costs, including management fees, distribution and/or service fees (12b-1 fees), and other fund expenses. In addition, each fund assesses a minimum balance fee of $20 on an annual basis for accounts that fall below the required minimum to establish an account (certain 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 April 1, 2008 through September 30, 2008. 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 GLOBAL MARKETS FUND	BEGINNING ACCOUNT VALUE 4/1/08	ENDING ACCOUNT VALUE 9/30/08	EXPENSES PAID DURING PERIOD* 4/1/08 – 9/30/08
CLASS A
Actual	$1,000.00	$821.60	$5.69
Hypothetical (5% return before expenses)	$1,000.00	$1,018.75	$6.31
CLASS C
Actual	$1,000.00	$818.60	$9.09
Hypothetical (5% return before expenses)	$1,000.00	$1,015.00	$10.08
CLASS Y
Actual	$1,000.00	$822.80	$4.47
Hypothetical (5% return before expenses)	$1,000.00	$1,020.10	$4.95

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.25%, 2.00% and 0.98% 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 366 (to reflect the half-year period).

10

UNDERSTANDING FUND EXPENSES

LOOMIS SAYLES GROWTH FUND	BEGINNING ACCOUNT VALUE 4/1/08	ENDING ACCOUNT VALUE 9/30/08	EXPENSES PAID DURING PERIOD* 4/1/08 – 9/30/08
CLASS A
Actual	$1,000.00	$814.30	$4.85
Hypothetical (5% return before expenses)	$1,000.00	$1,019.65	$5.40
CLASS B
Actual	$1,000.00	$811.10	$7.97
Hypothetical (5% return before expenses)	$1,000.00	$1,016.20	$8.87
CLASS C
Actual	$1,000.00	$811.10	$8.29
Hypothetical (5% return before expenses)	$1,000.00	$1,015.85	$9.22
CLASS Y
Actual	$1,000.00	$814.90	$3.04
Hypothetical (5% return before expenses)	$1,000.00	$1,021.65	$3.39

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.07%, 1.76%, 1.83% and 0.67% for Class A, B, C, and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

LOOMIS SAYLES RESEARCH FUND	BEGINNING ACCOUNT VALUE 4/1/08	ENDING ACCOUNT VALUE 9/30/08	EXPENSES PAID DURING PERIOD* 4/1/08  – 9/30/08
CLASS A
Actual	$1,000.00	$890.30	$5.92
Hypothetical (5% return before expenses)	$1,000.00	$1,018.80	$6.33
CLASS B
Actual	$1,000.00	$886.60	$9.43
Hypothetical (5% return before expenses)	$1,000.00	$1,015.00	$10.08
CLASS C
Actual	$1,000.00	$887.10	$9.44
Hypothetical (5% return before expenses)	$1,000.00	$1,015.00	$10.08
CLASS Y
Actual	$1,000.00	$891.00	$4.02
Hypothetical (5% return before expenses)	$1,000.00	$1,020.75	$4.29

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.25%, 2.00%, 2.00% and 0.85%, for Class A, B, C, and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

11

UNDERSTANDING FUND EXPENSES

LOOMIS SAYLES VALUE FUND	BEGINNING ACCOUNT VALUE 4/1/08	ENDING ACCOUNT VALUE 9/30/08	EXPENSES PAID DURING PERIOD* 4/1/08 – 9/30/08
CLASS A
Actual	$1,000.00	$892.40	$4.87
Hypothetical (5% return before expenses)	$1,000.00	$1,019.85	$5.20
CLASS B
Actual	$1,000.00	$889.10	$8.41
Hypothetical (5% return before expenses)	$1,000.00	$1,016.10	$8.97
CLASS C
Actual	$1,000.00	$889.00	$8.41
Hypothetical (5% return before expenses)	$1,000.00	$1,016.10	$8.97
CLASS Y
Actual	$1,000.00	$894.20	$3.08
Hypothetical (5% return before expenses)	$1,000.00	$1,021.75	$3.29

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.03%, 1.78%, 1.78% 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 366 (to reflect the half-year period).

12

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENT

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

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

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

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

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

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

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

13

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENT

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

With respect to each Fund, the Board concluded that the Fund’s performance or other relevant factors supported the renewal of the Agreement relating to that Fund. In the case of each Fund that had performance that lagged that of a relevant peer group for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Funds’ Agreements. These factors varied from Fund to Fund, but included one or more of the following: (1) that while relative performance may have lagged in certain periods, the Fund’s absolute and relative returns were strong in recent periods and (2) reductions in the Fund’s expense levels resulting from decreased expenses and/or increased assets were not yet fully reflected in the Fund’s performance results.

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

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

The costs of the services to be provided and profits to be realized by the Adviser and its affiliates from their respective relationships with the Funds. The Trustees considered the fees charged to the Funds for advisory services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and also by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Advisers to comparable accounts. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage mutual fund assets. In evaluating each Fund’s advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund. The Trustees considered that over the past several years, management had made recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense caps for various Funds in the Fund family. They noted that, as of December 31, 2007, all four of the Natixis Equity Funds included in this report have expense caps in place, and the Trustees considered the amounts waived or reimbursed by the Advisers under these caps. The Trustees noted that the Loomis Sayles Global Markets Fund had an advisory fee rate that was above the median of a peer group of Funds. The Trustees considered the circumstances that accounted for such relatively higher expenses. The Trustees noted that for the Loomis Sayles Global Markets Fund, the Fund’s total expense ratio was below the median even though the advisory fee was above the median.

The Trustees also considered the compensation directly or indirectly received by the Adviser and its affiliates from their relationships with the Funds. The Trustees reviewed information provided by management as to the profitability of the Adviser’s and their affiliates’ relationships with the Funds, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management about the effect of distribution costs and Fund growth on Adviser profitability, including information regarding resources spent on distribution activities and the increase in net sales for the family of funds. When reviewing profitability, the Trustees also considered information about court cases in which adviser profitability was an issue, the performance of the relevant Funds, the expense levels of the Funds, and whether the Advisers had implemented breakpoints and/or expense caps with respect to such Funds.

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

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Advisers and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as

14

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENT

expense waivers. The Trustees noted that each of the Funds was subject to an expense cap or waiver. The Trustees also considered management’s representation that for certain Funds, the Funds’ Adviser did not benefit from economies of scale in providing services to the Funds (because of the small size of the Fund or for other reasons). In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Funds, as discussed above.

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

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

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

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

· so-called “fallout benefits” to the Adviser, such as the engagement of affiliates of the Adviser to provide distribution, administrative and brokerage services to the Funds, and the benefits of research made available to the Adviser by reason of brokerage commissions generated by the Funds’ securities transactions. The Trustees considered the possible conflicts of interest associated with these fallout and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest.

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

15

LOOMIS SAYLES GLOBAL MARKETS FUND — PORTFOLIO OF INVESTMENTS

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 26.6% of Net Assets
	Non-Convertible Bonds — 25.6%
		Argentina — 0.1%
$	55,000	Republic of Argentina, 3.127%, 8/03/2012(b)	$	39,496
	570,000	Transportadora de Gas del Sur SA, 7.875%, 5/14/2017, 144A		404,700
				444,196
		Austria — 0.1%
	30,000,000	Oesterreichische Kontrollbank AG, 1.800%, 3/22/2010, (JPY)		285,577
	95,000	Sappi Papier Holding AG, 7.500%, 6/15/2032, 144A		67,091
				352,668
		Bermuda — 0.1%
	385,000	Noble Group Ltd., 8.500%, 5/30/2013, 144A		317,625
		Brazil — 0.4%
	2,123,441	Brazil Notas do Tesouro Nacional, Series B, 6.000%, 8/15/2010, (BRL)		1,053,241
	170,000	Marfrig Overseas Ltd., 9.625%, 11/16/2016, 144A		136,000
				1,189,241
		Canada — 0.1%
	100,000	Bombardier, Inc., 7.250%, 11/15/2016, (EUR), 144A		126,702
	25,000	Canadian Pacific Railway Ltd., MTN, 4.900%, 6/15/2010, (CAD), 144A		23,346
	100,000	GMAC Canada Ltd., EMTN, 6.625%, 12/17/2010, (GBP)		108,449
	50,000	Nortel Networks Ltd., 6.875%, 9/01/2023		20,000
	180,000	Shaw Communications, Inc., 6.150%, 5/09/2016, (CAD)		159,105
				437,602
		Cayman Islands — 0.4%
	360,000	DASA Finance Corp., 8.750%, 5/29/2018, 144A		302,400
	370,000	Embraer Overseas Ltd., 6.375%, 1/24/2017		342,250
	100,000	LPG International, Inc., 7.250%, 12/20/2015		95,880
	175,000	Odebrecht Finance Ltd., 7.500%, 10/18/2017, 144A		159,250
	536,000	Vale Overseas Ltd., 6.875%, 11/21/2036		477,097
				1,376,877
		Colombia — 0.2%
	40,000	Republic of Colombia, 8.125%, 5/21/2024		43,800
	45,000,000	Republic of Colombia, 9.850%, 6/28/2027, (COP)		18,333
	94,000,000	Republic of Colombia, 11.750%, 3/01/2010, (COP)		43,435
	1,361,000,000	Republic of Colombia, 12.000%, 10/22/2015, (COP)		650,977
				756,545

Principal Amount (‡)	Description	Value (†)
	France — 0.5%
180,000	Alcatel-Lucent, EMTN, 6.375%, 4/07/2014, (EUR)	$	203,990
1,665,190,000	BNP Paribas SA, EMTN, Zero Coupon, 6/13/2011, (IDR), 144A		127,476
100,000	BNP Paribas, (fixed rate to 4/12/2016, variable rate thereafter), 4.730%, 4/29/2049, (EUR)		97,054
35,000	Lafarge SA, EMTN, 4.750%, 3/23/2020, (EUR)		37,260
250,000	Lafarge SA, EMTN, 5.375%, 6/26/2017, (EUR)		293,587
35,000	PPR SA, EMTN, 4.000%, 1/29/2013, (EUR)		44,937
240,000	Veolia Environnement, EMTN, 4.000%, 2/12/2016, (EUR)		299,211
25,000	Veolia Environnement, EMTN, 5.125%, 5/24/2022, (EUR)		30,844
100,000	Wendel, 4.375%, 8/09/2017, (EUR)		91,329
200,000	Wendel, 4.875%, 5/26/2016, (EUR)		200,083
			1,425,771
	Germany — 0.7%
42,000,000	Kreditanstalt fuer Wiederaufbau, 1.350%, 1/20/2014, (JPY)		396,146
30,000,000	Kreditanstalt fuer Wiederaufbau, 1.850%, 9/20/2010, (JPY)		286,831
12,000,000	Kreditanstalt fuer Wiederaufbau, 2.050%, 2/16/2026, (JPY)		109,791
1,025,000	Republic of Germany, 4.000%, 1/04/2037, (EUR)(c)		1,305,795
			2,098,563
	Hong Kong — 0.1%
410,000	HKCG Finance Ltd., 6.250%, 8/07/2018, 144A		403,317
	India — 0.2%
500,000	Canara Bank Ltd., (fixed rate to 11/28/2016, variable rate thereafter), 6.365%, 11/28/2021		401,241
100,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		69,023
			470,264
	Indonesia — 0.2%
405,000	Indonesia Government International Bond, 7.750%, 1/17/2038, 144A		364,500
2,959,000,000	Indonesia Treasury Bond, 11.000%, 12/15/2012, (IDR)		295,048
			659,548
	Ireland — 0.2%
100,000	Depfa ACS Bank, EMTN, 4.875%, 5/21/2019, (EUR)		137,681
555,000	Elan Financial PLC, 7.750%, 11/15/2011		502,275
			639,956

See accompanying notes to financial statements.

16

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

Investments as of September 30, 2008

Principal Amount (‡)	Description	Value (†)
	Italy — 0.1%
100,000	Finmeccanica SpA, EMTN, 4.875%, 3/24/2025, (EUR)	$	113,229
100,000	Telecom Italia SpA, EMTN, 5.375%, 1/29/2019, (EUR)		115,109
			228,338
	Japan — 0.5%
32,000,000	Japan Finance Corp. for Municipal Enterprises, 1.350%, 11/26/2013, (JPY)		304,342
145,000,000	Japan Government, 0.900%, 9/15/2009, (JPY)		1,366,330
			1,670,672
	Korea — 0.2%
460,000	Hanarotelecom, Inc., 7.000%, 2/01/2012, 144A		441,600
140,000	SK Telecom Co. Ltd., 6.625%, 7/20/2027, 144A		126,420
			568,020
	Luxembourg — 0.0%
10,000	Telecom Italia Capital, 6.000%, 9/30/2034		7,006
10,000	Telecom Italia Capital, 6.375%, 11/15/2033		7,288
			14,294
	Malaysia — 0.0%
200,000	Ranhill Labuan Ltd., 12.500%, 10/26/2011, 144A		96,000
	Mexico — 0.4%
340,000	Axtel SAB de CV, 7.625%, 2/01/2017, 144A		302,328
295,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015		259,600
75,000(††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		658,188
			1,220,116
	Netherlands — 0.3%
50,000	Bite Finance International, 8.458%, 3/15/2014, (EUR), 144A(b)		52,793
150,000	Cemex Finance Europe BV, 4.750%, 3/05/2014, (EUR)		162,085
150,000	Koninklijke KPN NV, GMTN, 4.750%, 1/17/2017, (EUR)		183,042
100,000	Majapahit Holding BV, 7.250%, 6/28/2017, 144A		88,000
385,000	Netherlands Government Bond, 4.000%, 1/15/2037, (EUR)		481,803
50,000	OI European Group BV, 6.875%, 3/31/2017, (EUR), 144A		60,183
			1,027,906
	Poland — 0.2%
1,700,000	Poland Government Bond, 5.750%, 3/24/2010, (PLN)		697,782
	Singapore — 0.2%
785,000	Government of Singapore, 4.625%, 7/01/2010, (SGD)(c)		575,036

Principal Amount (‡)	Description	Value (†)
	South Africa — 0.3%
130,000	Edcon Proprietary Ltd., 8.208%, 6/15/2014, (EUR), 144A(b)	$	108,893
450,000	Edcon Proprietary Ltd., 8.208%, 6/15/2014, (EUR)(b)		376,939
285,000	Republic of South Africa, EMTN, 4.500%, 4/05/2016, (EUR)		326,182
			812,014
	Spain — 0.1%
100,000	Santander Issuances SA Unipersonal, (fixed rate to 9/30/2014, variable rate thereafter), 4.500%, 9/30/2019, (EUR)		118,386
150,000	Santander Issuances SA Unipersonal, EMTN, (fixed rate to 5/29/2014, variable rate thereafter), 4.750%, 5/29/2019, (EUR)		183,056
			301,442
	Supranational — 0.8%
190,000,000	Asia Development Bank, 2.350%, 6/21/2027, (JPY)(c)		1,826,196
59,000,000	European Investment Bank, 1.250%, 9/20/2012, (JPY)		558,104
			2,384,300
	Thailand — 0.1%
330,000	True Move Co. Ltd., 10.375%, 8/01/2014		220,209
100,000	True Move Co. Ltd., 10.375%, 8/01/2014, 144A		66,730
			286,939
	United Arab Emirates — 0.3%
400,000	Abu Dhabi National Energy Co., 7.250%, 8/01/2018, 144A		389,964
500,000	DP World Ltd., 6.850%, 7/02/2037, 144A		370,180
			760,144
	United Kingdom — 0.3%
60,000	BSKYB Finance UK PLC, 5.750%, 10/20/2017, (GBP)		94,548
100,000	Imperial Tobacco Finance PLC, EMTN, 4.375%, 11/22/2013, (EUR)		122,987
1,229,424,500	JPMorgan Chase London, Zero Coupon, 10/21/2010, (IDR), 144A		102,565
165,000	Lloyds TSB Bank PLC, (fixed rate to 5/12/2017, variable rate thereafter), 4.385%, 5/29/2049, (EUR)		148,029
250,000	Standard Chartered Bank, EMTN, 5.875%, 9/26/2017, (EUR)		309,530
65,000	United Kingdom Treasury, 5.250%, 6/07/2012, (GBP)		119,813
			897,472
	United States — 18.0%
500,000	Albertson’s, Inc., 7.450%, 8/01/2029		444,714
50,000	Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		40,510
15,000	Amkor Technology, Inc., 7.750%, 5/15/2013		12,825

See accompanying notes to financial statements.

17

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	100,000	Anadarko Petroleum Corp., 5.950%, 9/15/2016	$	91,911
	575,000	Anadarko Petroleum Corp., 6.450%, 9/15/2036		450,828
	60,000	Arrow Electronics, Inc., 6.875%, 7/01/2013		60,996
	100,000	ASIF Global Financing XXVII, 2.380%, 2/26/2009, (SGD), 144A		35,362
	325,000	AT&T, Inc., 6.500%, 9/01/2037(c)		276,471
	42,865	Atlas Air, Inc., Series B, 7.680%, 1/02/2014(d)		42,865
	145,000	Avnet, Inc., 6.000%, 9/01/2015		139,695
	310,000	Borden, Inc., 7.875%, 2/15/2023		142,600
	410,000	Borden, Inc., 8.375%, 4/15/2016		139,400
	5,000	Boston Scientific Corp., 5.450%, 6/15/2014		4,675
	30,000	Boston Scientific Corp., 6.400%, 6/15/2016		28,500
	60,000	Boston Scientific Corp., 7.000%, 11/15/2035		53,400
	50,000	Bristol-Myers Squibb Co., 4.625%, 11/15/2021, (EUR)		60,166
	250,000	Chesapeake Energy Corp., 6.250%, 1/15/2017, (EUR)		292,119
	15,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		13,125
	70,000	Chesapeake Energy Corp., 6.875%, 1/15/2016		63,875
	75,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		64,125
	35,000	CIT Group, Inc., 5.400%, 2/13/2012		20,121
	369,000	CIT Group, Inc., 5.400%, 3/07/2013		205,657
	20,000	CIT Group, Inc., 5.400%, 1/30/2016		9,680
	25,000	CIT Group, Inc., 5.600%, 4/27/2011		16,101
	35,000	CIT Group, Inc., 5.650%, 2/13/2017		17,079
	505,000	CIT Group, Inc., 5.800%, 10/01/2036		230,974
	2,333,000	CIT Group, Inc., Series A, MTN, 7.625%, 11/30/2012(c)		1,479,976
	270,000	CIT Group, Inc., EMTN, 3.800%, 11/14/2012, (EUR)		205,130
	50,000	CIT Group, Inc., EMTN, 5.500%, 12/20/2016, (GBP)		44,335
	150,000	CIT Group, Inc., GMTN, 4.250%, 9/22/2011, (EUR)		126,129
	170,000	CIT Group, Inc., GMTN, 5.000%, 2/13/2014		96,164
	20,000	CIT Group, Inc., GMTN, 5.000%, 2/01/2015		9,886
	50,000	CIT Group, Inc., MTN, 4.250%, 3/17/2015, (EUR)		34,503

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	90,000	CIT Group, Inc., MTN, 5.125%, 9/30/2014	$	44,384
	120,000	Citi Credit Card Issuance Trust, Series 2001-A4, 5.375%, 4/10/2013, (EUR)		162,660
	5,000	Clear Channel Communications, Inc., 4.900%, 5/15/2015		1,488
	820,000	Clear Channel Communications, Inc., 5.500%, 12/15/2016		237,800
	75,000	Clear Channel Communications, Inc., 5.750%, 1/15/2013		27,000
	25,000	Colonial Realty LP, 6.050%, 9/01/2016		21,087
	35,000	Comcast Corp., 5.650%, 6/15/2035		26,017
	965,000	Comcast Corp., 6.950%, 8/15/2037		823,100
	131,515	Continental Airlines, Inc., Series 1999-1C, 6.954%, 2/02/2011		122,966
	30,000	Countrywide Financial Corp., Series A, MTN, 3.333%, 12/19/2008(b)		29,660
	90,000	Countrywide Home Loans, Inc., Series L, MTN, 4.000%, 3/22/2011		77,432
	190,000	CSX Corp., 6.250%, 3/15/2018		171,968
	265,000	Cummins, Inc., 5.650%, 3/01/2098		186,040
	160,000	Cummins, Inc., 7.125%, 3/01/2028		153,115
	10,000	D.R. Horton, Inc., 5.250%, 2/15/2015		7,400
	364,401	Delta Air Lines, Inc., Class B, Series 2007-1, 8.021%, 2/10/2024		247,793
	367,866	Delta Air Lines, Inc., Class C, Series 2007-1, 8.954%, 8/10/2014		268,542
	50,000	Dillard’s, Inc., 6.625%, 1/15/2018		31,000
	50,000	Dillard’s, Inc., 7.000%, 12/01/2028		25,500
	16,000	ESI Tractebel Acquisition Corp., Series B, 7.990%, 12/30/2011		16,160
	200,000	Federal National Mortgage Association, 2.290%, 2/19/2009, (SGD)		139,437
	300,000	Florida Power & Light Co., 4.950%, 6/01/2035		240,825
	150,000	Foot Locker, Inc., 8.500%, 1/15/2022		135,750
	10,000	Ford Motor Co., 6.625%, 2/15/2028		3,850
	1,750,000	Ford Motor Co., 6.625%, 10/01/2028		665,000
	15,000	Ford Motor Co., 7.125%, 11/15/2025		5,925
	595,000	Ford Motor Co., 7.450%, 7/16/2031		255,850
	1,405,000	Ford Motor Credit Co. LLC, 5.700%, 1/15/2010		1,076,000
	2,250,000	Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		1,382,753
	105,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		66,389

See accompanying notes to financial statements.

18

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	170,000	Ford Motor Credit Co. LLC, 8.625%, 11/01/2010	$	120,550
	390,000	Ford Motor Credit Co. LLC, 9.750%, 9/15/2010		279,662
	388,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016(e)		248,320
	8,000,000	General Electric Capital Corp., EMTN, 1.500%, 4/26/2012, (JPY)		63,228
	13,000,000	General Electric Capital Corp., GMTN, 1.450%, 11/10/2011, (JPY)		110,851
	45,000	General Motors Corp., 7.400%, 9/01/2025		16,200
	710,000	General Motors Corp., 8.250%, 7/15/2023		278,675
	3,015,000	General Motors Corp., 8.375%, 7/15/2033		1,206,000
	120,000	Georgia Gulf Corp., 10.750%, 10/15/2016(e)		54,000
	3,375,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		2,666,250
	35,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		28,875
	525,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		462,000
	505,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		439,350
	455,000	GMAC LLC, 6.000%, 12/15/2011		202,311
	205,000	GMAC LLC, 6.625%, 5/15/2012		86,790
	420,000	GMAC LLC, 6.750%, 12/01/2014		161,202
	45,000	GMAC LLC, 6.875%, 9/15/2011		20,078
	95,000	GMAC LLC, 6.875%, 8/28/2012		37,760
	100,000	GMAC LLC, 7.000%, 2/01/2012		40,761
	100,000	GMAC LLC, 7.250%, 3/02/2011		47,298
	3,170,000	GMAC LLC, 8.000%, 11/01/2031		1,195,968
	1,190,000	Goldman Sachs Group LP, 5.000%, 10/01/2014		992,540
	150,000	Goldman Sachs Group, Inc. (The), 4.750%, 1/28/2014, (EUR)		166,301
	605,000	Goldman Sachs Group, Inc. (The), 5.150%, 1/15/2014		496,876
	150,000	Goldman Sachs Group, Inc. (The), 5.314%, 5/23/2016, (EUR)(b)		144,169
	400,000	Goldman Sachs Group, Inc. (The), 6.875%, 1/18/2038, (GBP)		553,182
	165,000	Goodyear Tire & Rubber Co., 7.000%, 3/15/2028		122,100
	25,000	GTE Corp., 6.940%, 4/15/2028		21,213
	20,000	HCA, Inc., 5.750%, 3/15/2014		15,600
	55,000	HCA, Inc., 6.250%, 2/15/2013		45,925

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	90,000	HCA, Inc., 6.375%, 1/15/2015	$	70,875
	15,000	HCA, Inc., 6.500%, 2/15/2016		11,888
	40,000	HCA, Inc., 6.750%, 7/15/2013		33,600
	225,000	HCA, Inc., 7.050%, 12/01/2027		151,940
	245,000	HCA, Inc., 7.190%, 11/15/2015		195,591
	90,000	HCA, Inc., 7.500%, 12/15/2023		65,930
	250,000	HCA, Inc., 7.500%, 11/06/2033		177,500
	1,295,000	HCA, Inc., 7.690%, 6/15/2025		962,496
	395,000	HCA, Inc., 8.360%, 4/15/2024		306,157
	110,000	HCA, Inc., MTN, 7.580%, 9/15/2025		81,040
	75,000	HCA, Inc., MTN, 7.750%, 7/15/2036		53,243
	395,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		316,850
	260,000	Hilcorp Energy I LP, 7.750%, 11/01/2015, 144A		223,600
	25,000	Home Depot, Inc., 5.400%, 3/01/2016		21,258
	1,285,000	Home Depot, Inc., 5.875%, 12/16/2036		903,320
	250,000	iStar Financial, Inc., 5.150%, 3/01/2012		125,000
	95,000	iStar Financial, Inc., 5.500%, 6/15/2012		48,450
	105,000	iStar Financial, Inc., 5.650%, 9/15/2011		54,600
	70,000	iStar Financial, Inc., 5.850%, 3/15/2017		34,300
	300,000	iStar Financial, Inc., 5.875%, 3/15/2016		147,000
	145,000	iStar Financial, Inc., 6.050%, 4/15/2015		71,050
	985,000	iStar Financial, Inc., 8.625%, 6/01/2013		482,650
	35,000	iStar Financial, Inc., Series B, 5.700%, 3/01/2014		17,150
	950,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		494,000
	5,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		4,201
	125,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		95,075
	15,000	J.C. Penney Corp., Inc., 7.125%, 11/15/2023		13,675
	5,000	J.C. Penney Corp., Inc., 7.400%, 4/01/2037		4,183
	5,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		3,878
	260,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016		149,500

See accompanying notes to financial statements.

19

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	15,000	K. Hovnanian Enterprises, Inc., 6.375%, 12/15/2014	$	8,700
	250,000	Kellwood Co., 7.625%, 10/15/2017(f)		137,500
	150,000	Kraft Foods, Inc., 6.250%, 3/20/2015, (EUR)		205,215
	1,800,000	Lehman Brothers Holdings, Inc., 6.875%, 7/17/2037(g)		2,250
	135,000	Lehman Brothers Holdings, Inc., (fixed rate to 5/03/2027, variable rate thereafter), 6.000%, 5/03/2032(g)		169
	225,000	Lehman Brothers Holdings, Inc., EMTN, 5.000%, 1/26/2010, (GBP)(g)		44,002
	30,000	Lennar Corp., Series B, 5.125%, 10/01/2010		25,200
	15,000	Lennar Corp., Series B, 5.500%, 9/01/2014		9,750
	1,090,000	Lennar Corp., Series B, 5.600%, 5/31/2015		708,500
	55,000	Lennar Corp., Series B, 6.500%, 4/15/2016		37,125
	15,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		10,875
	10,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		7,550
	155,000	Lucent Technologies, Inc., 6.450%, 3/15/2029		94,550
	130,000	MBNA Credit Card Master Note Trust, 4.150%, 9/19/2012, (EUR)		177,047
	500,000	Merrill Lynch & Co., Inc., 10.710%, 3/08/2017, (BRL)		186,557
	150,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		115,660
	90,000	MidAmerican Energy Holdings Co., 6.500%, 9/15/2037		78,962
	1,805,000	Morgan Stanley, 3.875%, 1/15/2009		1,660,632
	230,000	Morgan Stanley, 5.375%, 11/14/2013, (GBP)		275,252
	1,400,000	Morgan Stanley, 5.375%, 10/15/2015		867,713
	300,000	Morgan Stanley, EMTN, 5.450%, 1/09/2017		186,092
	300,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		187,934
	300,000	Morgan Stanley, MTN, 6.250%, 8/09/2026		183,396
	100,000	Mosaic Global Holdings, Inc., 7.375%, 8/01/2018		99,297
	80,000	News America, Inc., 6.150%, 3/01/2037		65,226
	25,000	News America, Inc., 6.400%, 12/15/2035		21,001
	855,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		564,300
	115,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		78,200
	185,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		123,950

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	250,000	NGC Corporation Capital Trust I, Series B, 8.316%, 6/01/2027	$	186,250
	170,000	Northern Telecom Capital Corp., 7.875%, 6/15/2026		74,800
	1,000,000	NRG Energy, Inc., 7.375%, 2/01/2016		900,000
	150,000	Owens Brockway Glass Container, Inc., 6.750%, 12/01/2014, (EUR)		183,718
	565,000	Owens Corning, Inc., 6.500%, 12/01/2016		499,976
	535,000	Owens Corning, Inc., 7.000%, 12/01/2036		430,074
	40,000	Owens-Illinois, Inc., 7.800%, 5/15/2018		38,800
	950,000	Petrobras International Finance Co., 5.875%, 3/01/2018		863,438
	200,000	Philip Morris International, Inc., GMTN, 5.875%, 9/04/2015, (EUR)		274,660
	50,000	Pulte Homes, Inc., 5.200%, 2/15/2015		40,000
	540,000	Pulte Homes, Inc., 6.000%, 2/15/2035		386,100
	695,000	Pulte Homes, Inc., 6.375%, 5/15/2033		507,350
	1,335,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		971,212
	670,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		465,650
	400,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		304,000
	60,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		43,800
	540,000	Qwest Corp., 6.875%, 9/15/2033		363,150
	115,000	Qwest Corp., 7.250%, 9/15/2025		85,675
	58,000	R.H. Donnelley Corp., 6.875%, 1/15/2013		22,620
	50,000	R.H. Donnelley Corp., Series A-1, 6.875%, 1/15/2013		19,500
	60,000	R.H. Donnelley Corp., Series A-2, 6.875%, 1/15/2013		23,400
	18,000	R.H. Donnelley Corp., Series A-3, 8.875%, 1/15/2016		6,120
	735,000	R.H. Donnelley Corp., Series A-4, 8.875%, 10/15/2017		249,900
	155,000	RBS Capital Trust, (fixed rate to 1/12/2016, variable rate thereafter), 4.243%, 12/29/2049, (EUR)		143,283
	5,000	Residential Capital LLC, 8.375%, 6/30/2010(e)		1,150
	195,000	Residential Capital LLC, 8.500%, 6/01/2012		39,000
	345,000	Residential Capital LLC, 8.500%, 4/17/2013		69,000
	175,000	Residential Capital LLC, 8.875%, 6/30/2015		35,000
	80,000	Reynolds American, Inc., 6.750%, 6/15/2017		74,753

See accompanying notes to financial statements.

20

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	20,000	Reynolds American, Inc., 7.250%, 6/15/2037	$	19,139
	415,000	Six Flags, Inc., 9.625%, 6/01/2014(e)		232,400
	100,000	Six Flags, Inc., 9.750%, 4/15/2013(e)		58,000
	1,600(†††)	SLM Corp., 6.000%, 12/15/2043		16,524
	20,000	SLM Corp., Series A, MTN, 4.000%, 1/15/2010		15,700
	228,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		141,360
	10,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		5,500
	115,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		75,325
	75,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		46,500
	30,000	SLM Corp., Series A, MTN, 5.400%, 10/25/2011		21,000
	20,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		10,000
	625,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		425,000
	120,000	SLM Corp., MTN, 5.050%, 11/14/2014		73,200
	30,000	SLM Corp., MTN, 5.125%, 8/27/2012		19,500
	434,000	Sprint Capital Corp., 6.875%, 11/15/2028		290,780
	420,000	Sprint Capital Corp., 6.900%, 5/01/2019		325,500
	26,000	Sprint Nextel Corp., 6.000%, 12/01/2016		20,020
	20,000	Tenet Healthcare Corp., 6.500%, 6/01/2012		18,500
	265,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		180,200
	23,000	Tenet Healthcare Corp., 7.375%, 2/01/2013		20,930
	750,000	Tennessee Gas Pipeline Co., 7.000%, 10/15/2028(e)		642,714
	250,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		315,017
	10,000	Time Warner, Inc., 6.500%, 11/15/2036		7,594
	395,000	Time Warner, Inc., 6.625%, 5/15/2029		315,494
	160,000	Time Warner, Inc., 6.950%, 1/15/2028		133,395
	115,000	Time Warner, Inc., 7.625%, 4/15/2031		99,861
	75,000	Time Warner, Inc., 7.700%, 5/01/2032		65,531
	105,000	Toll Brothers Finance Corp., 5.150%, 5/15/2015		88,800
	375,000	Toys R Us, Inc., 7.375%, 10/15/2018		243,750
	200,000	Transcontinental Gas Pipe Line Corp., 6.400%, 4/15/2016		191,652

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	3,150,000	TXU Corp., Series P, 5.550%, 11/15/2014	$	2,350,710
	2,570,000	TXU Corp., Series Q, 6.500%, 11/15/2024		1,636,774
	30,000	TXU Corp., Series R, 6.550%, 11/15/2034		18,433
	785,000	U.S. Treasury Notes, 2.625%, 5/31/2010(c)(e)		793,770
	420,000	U.S. Treasury Notes, 3.500%, 2/15/2018(c)(e)		411,862
	1,300,000	U.S. Treasury Notes, 4.000%, 8/15/2018(e)		1,318,485
	1,760,000	United Rentals North America, Inc., 7.000%, 2/15/2014		1,232,000
	1,400,000	United Rentals North America, Inc., 7.750%, 11/15/2013(e)		1,067,500
	770,000	United States Steel Corp., 6.650%, 6/01/2037		572,655
	50,000	USG Corp., 6.300%, 11/15/2016		37,750
	230,000	USG Corp., 7.750%, 1/15/2018		182,850
	90,000	Verizon Communications, 5.850%, 9/15/2035		70,374
	535,000	Verizon Communications, Inc., 6.400%, 2/15/2038		446,522
	5,000	Verizon Maryland, Inc., 5.125%, 6/15/2033		3,383
	250,000	Verizon New York, Inc., Series B, 7.375%, 4/01/2032		218,232
	775,000	Viacom, Inc., Class B, 6.875%, 4/30/2036		621,302
	140,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(f)		108,423
	185,000	Wells Fargo & Co., 4.625%, 11/02/2035, (GBP)		242,804
	100,000	Williams Cos., Inc., 7.500%, 1/15/2031		90,998
	20,000	Xerox Corp., MTN, 7.200%, 4/01/2016		19,411
				56,278,931
		Uruguay — 0.5%
	35,482,670	Republic of Uruguay, 4.250%, 4/05/2027, (UYU)		1,535,936
		Total Non-Convertible Bonds (Identified Cost $99,205,920)		79,927,515
	Convertible Bonds — 1.0%
		United States — 1.0%
	95,000	Builders Transportation, Inc., 8.000%, 8/15/2005(h)		—
	56,000	Countrywide Financial Corp., Series A, Zero Coupon, 4/15/2037(b)(e)		54,880
	178,000	Countrywide Financial Corp., Series B, 0.554%, 5/15/2037(b)(e)		161,980
	430,000	iStar Financial, Inc., 3.291%, 10/01/2012(b)		230,050
	365,000	Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		249,569

See accompanying notes to financial statements.

21

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

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	140,000	Level 3 Communications, Inc., 2.875%, 7/15/2010	$	110,075
	440,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		310,750
	185,000	Level 3 Communications, Inc., 5.250%, 12/15/2011		152,856
	95,000	Level 3 Communications, Inc., 6.000%, 9/15/2009		89,300
	145,000	Level 3 Communications, Inc., 6.000%, 3/15/2010		126,875
	200,000	NII Holdings, Inc., 3.125%, 6/15/2012		148,000
	500,000	Valeant Pharmaceuticals International, 3.000%, 8/16/2010		472,500
	80,000	Valeant Pharmaceuticals International, 4.000%, 11/15/2013		74,900
	583,000	Vertex Pharmaceuticals, Inc., 4.750%, 2/15/2013		879,601
		Total Convertible Bonds (Identified Cost $3,169,967)		3,061,336
		Total Bonds and Notes (Identified Cost $102,375,887)		82,988,851
	Bank Loans — 0.0%
		United States — 0.0%
	1,958	Dole Food Co., Inc., LOC, 4.788%, 4/12/2013(i)		1,717
	1,315	Dole Food Co., Inc., Term Loan, 4.738%, 4/12/2013(i)		1,153
	6,952	Dole Food Co., Inc., Tranche C Term Loan, 4.795%, 4/12/2013(i)		6,097
	56,380	Hawaiian Telecom Communications, Inc., Term Loan C, 6.262%, 6/01/2014(i)		38,782
	164,266	Idearc, Inc., Term Loan B, 5.767%, 11/17/2014(i)		97,943
	7,314	Tribune Co., Tranche X, 5.541%, 6/04/2009(i)		6,775
				152,467
		Total Bank Loans (Identified Cost $190,768)		152,467
Shares
	Common Stocks — 65.5%
		Brazil — 1.8%
	256,870	Petroleo Brasileiro SA		5,699,223
		Canada — 0.0%
	3	Nortel Networks Corp.(d)		7
		China — 0.7%
	1,224,500	Li Ning Co. Ltd.		2,148,192
		Denmark — 1.4%
	83,578	Novo Nordisk A/S, Class B		4,332,871
		Finland — 0.8%
	140,855	Nokia Oyj, Sponsored ADR		2,626,946
		France — 1.8%
	30,287	Total SA		1,839,932
	53,933	UBISOFT Entertainment(d)		3,751,867
				5,591,799
		Germany — 1.4%
	45,233	Siemens AG (Registered)		4,219,198

Shares	Description	Value (†)
	Japan — 2.8%
14,500	Nintendo Co. Ltd.	$	6,150,519
417	Sumitomo Mitsui Financial Group, Inc.(e)		2,614,448
			8,764,967
	Spain — 1.6%
142,002	Gamesa Corporation Tecnologica SA		4,865,267
	Switzerland — 3.5%
251,558	ABB Ltd. (Registered)(d)		4,894,867
55,951	Actelion Ltd. (Registered)(d)(e)		2,883,072
61,131	Julius Baer Holding Ltd. (Registered)		3,040,070
			10,818,009
	Turkey — 0.4%
43,884	BIM Birlesik Magazalar A/S		1,361,304
	United Kingdom — 3.6%
431,190	Capita Group PLC		5,366,442
235,429	Standard Chartered PLC		5,792,858
			11,159,300
	United States — 45.7%
165,852	Activision Blizzard, Inc.(d)		2,559,096
57,641	Apple, Inc.(d)		6,551,476
89,642	AT&T, Inc.		2,502,805
843	Berkshire Hathaway, Inc., Class B(d)		3,704,985
28,788	BlackRock, Inc.(e)		5,599,266
167,739	Charles Schwab Corp. (The)		4,361,214
32,912	Costco Wholesale Corp.		2,136,976
101,111	Covidien Ltd.		5,435,727
25,522	ExxonMobil Corp.		1,982,039
23,109	First Solar, Inc.(d)		4,365,521
48,303	Flowserve Corp.		4,287,857
56,541	Fluor Corp.		3,149,334
45,241	Genzyme Corp.(d)		3,659,544
50,020	Goodrich Corp.		2,080,832
8,138	Google, Inc. Class A(d)		3,259,432
93,888	Hewlett-Packard Co.		4,341,381
28,701	International Business Machines Corp.		3,356,869
6,420	Intuitive Surgical, Inc.(d)		1,547,092
182,273	JPMorgan Chase & Co.		8,512,149
151,239	Lowe’s Cos., Inc.		3,582,852
23,338	MasterCard, Inc., Class A(e)		4,138,528
100,615	McAfee, Inc.(d)		3,416,885
97,235	McDonald’s Corp.		5,999,399
72,120	Monsanto Co.		7,138,438
184,378	News Corp., Class A		2,210,692
172,102	Oracle Corp.(d)		3,495,392
41,728	PNC Financial Services Group, Inc.		3,117,082
163,787	QUALCOMM, Inc.		7,037,927
130,113	Southwestern Energy Co.(d)		3,973,651
48,116	Transocean, Inc.(d)		5,285,061
99,818	Visa, Inc., Class A		6,127,827
111,883	Wal-Mart Stores, Inc.		6,700,673
87,026	Wells Fargo & Co.		3,266,086
83,256	XTO Energy, Inc.		3,873,069
			142,757,157
	Total Common Stocks (Identified Cost $234,779,715)		204,344,240

See accompanying notes to financial statements.

22

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

Investments as of September 30, 2008

Shares		Description	Value (†)
	Preferred Stocks — 0.1%
		United States — 0.1%
	12,940	Federal Home Loan Mortgage Corp., 8.750%(d)(k)	$	21,092
	17,500	Federal National Mortgage Association, 8.250%(k)		38,150
	820	Lucent Technologies Capital Trust, 7.750%		381,013
				440,255
		Total Preferred Stocks (Identified Cost $1,244,413)		440,255
Principal Amount (‡)/ Shares
	Short-Term Investments — 12.3%
$	2,870	Repurchase Agreement with State Street Corp. dated 9/30/2008 at 1.300%, to be repurchased at $2,870 on 10/01/2008 collateralized by $5,000 Federal Home Loan Bank, 5.300% due 10/03/2012 valued at $5,130 including accrued interest (Note 2g of Notes to Financial Statements)		2,870
	16,569,651	State Street Navigator Securities Lending Prime Portfolio(j)		16,569,651
	21,784,000	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/08 at 1.300% to be repurchased at $21,784,787 on 10/01/08 collateralized by $22,505,000 Federal National Mortgage Association Discount Note, Zero Coupon due 2/23/2009 valued at $22,223,688 including accrued interest (Note 2g of Notes to Financial Statements)		21,784,000
		Total Short-Term Investments (Identified Cost $38,356,521)		38,356,521
		Total Investments — 104.5% (Identified Cost $376,947,304)(a)		326,282,334
		Other assets less liabilities — (4.5)%		(14,135,066	)
		Net Assets — 100.0%	$	312,147,268
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2a 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.
	(a)	Federal Tax Information: At September 30, 2008, the net unrealized depreciation on investments based on a cost of $378,844,967 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	$	4,415,122
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(56,977,755	)
		Net unrealized depreciation	$	(52,562,633	)
	(b)	Variable rate security. Rate as of September 30, 2008 is disclosed.
	(c)	All or a portion of this security is held as collateral for open forward contracts.
	(d)	Non-income producing security.
	(e)	All or a portion of this security was on loan to brokers at September 30, 2008.
	(f)	Illiquid security. At September 30, 2008, the value of these securities amounted to $245,923 or 0.1% of net assets.
	(g)	Issuer has filed for bankruptcy.
	(h)	Bankrupt issuer. Security remains in the Portfolio of Investments pending final resolution of bankruptcy proceedings.

(i)	Variable rate security. Rate shown represents the weighted average rate at September 30, 2008.
(j)	Represents investment of securities lending collateral.
(k)	Future dividend payments have been eliminated as the issuer has been placed in conservatorship.
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 September 30, 2008, the total value of these securities amounted to $4,966,048 or 1.6% 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
LOC	Letter of Credit
MTN	Medium Term Note
BRL	Brazilian Real
CAD	Canadian Dollar
COP	Colombian Peso
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
JPY	Japanese Yen
MXN	Mexican Peso
PLN	Polish Zloty
SGD	Singapore Dollar
UYU	Uruguayan Peso

At September 30, 2008, the Fund had the following open forward foreign currency contracts:

Contract to Buy/Sell	Delivery Date	Currency	Units	Value		Unrealized Appreciation (Depreciation)
Sell	12/17/2008	Canadian Dollar	225,000	$	211,934	$	(1,402	)
Buy	6/15/2009	Chinese Yuan Renminbi	5,300,000		763,861		(46,288	)
Sell	6/15/2009	Chinese Yuan Renminbi	5,300,000		763,861		32,600
Sell	12/17/2008	Euro	1,230,000		1,737,190		14,896
Sell	12/17/2008	Japanese Yen	57,000,000		541,867		(13,510	)
Total						$	(13,704	)

See accompanying notes to financial statements.

23

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

Investments as of September 30, 2008

Net Asset Summary at September 30, 2008 (Unaudited)

Software	6.2	%
Oil, Gas & Consumable Fuels	5.6
Commercial Banks	4.7
Computers & Peripherals	4.6
Electrical Equipment	4.5
Capital Markets	4.2
IT Services	3.3
Food & Staples Retailing	3.3
Communication Equipment	3.1
Diversified Financial Services	2.7
Chemicals	2.5
Sovereigns	2.3
Health Care Equipment & Supplies	2.2
Non-Captive Diversified	2.1
Biotechnology	2.1
Pharmaceuticals	2.0
Other Investments, less than 2% each	36.8
Short-Term Investments	12.3
Total Investments	104.5
Other assets less liabilities (including open Forward Foreign Currency Contracts)	(4.5	)
Net Assets	100.0	%

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

United States Dollar	78.8	%
Euro	7.4
Japanese Yen	4.5
British Pound	4.0
Brazilian Real	2.2
Other Investments, less than 2% each	7.6
Total Investments	104.5
Other assets less liabilities (including open Forward Foreign Currency Contracts)	(4.5	)
Net Assets	100.0	%

See accompanying notes to financial statements.

24

LOOMIS SAYLES GROWTH FUND — PORTFOLIO OF INVESTMENTS

Investments as of September 30, 2008

Shares	Description	Value (†)
Common Stocks — 96.0% of Net Assets
	Beverages — 1.6%
59,131	PepsiCo, Inc.	$	4,214,266
	Biotechnology — 4.4%
57,661	Celgene Corp.(c)		3,648,788
49,654	Genzyme Corp.(c)		4,016,512
90,667	Gilead Sciences, Inc.(c)		4,132,602
			11,797,902
	Capital Markets — 8.5%
40,925	BlackRock, Inc.(b)		7,959,912
333,891	Charles Schwab Corp. (The)		8,681,166
115,055	T. Rowe Price Group, Inc.		6,179,604
			22,820,682
	Chemicals — 3.9%
105,301	Monsanto Co.		10,422,693
	Communications Equipment — 4.1%
259,101	QUALCOMM, Inc.		11,133,570
	Computers & Peripherals — 9.1%
84,086	Apple, Inc.(c)		9,557,215
120,318	Hewlett-Packard Co.		5,563,504
80,561	International Business Machines Corp.		9,422,414
			24,543,133
	Construction & Engineering — 1.5%
73,071	Fluor Corp.		4,070,055
	Diversified Financial Services — 1.3%
77,823	JPMorgan Chase & Co.		3,634,334
	Electrical Equipment — 2.4%
33,803	First Solar, Inc.(c)		6,385,725
	Electronic Equipment & Instruments — 1.9%
128,038	Amphenol Corp., Class A		5,139,445
	Energy Equipment & Services — 2.8%
67,521	Transocean, Inc.(c)		7,416,507
	Food & Staples Retailing — 4.0%
180,480	Wal-Mart Stores, Inc.		10,808,947
	Health Care Equipment & Supplies — 7.0%
105,422	Covidien Ltd.		5,667,487
20,402	Intuitive Surgical, Inc.(c)		4,916,474
89,019	Medtronic, Inc.		4,459,852
87,992	St. Jude Medical, Inc.(c)		3,826,772
			18,870,585
	Hotels, Restaurants & Leisure — 2.6%
115,690	McDonald’s Corp.		7,138,073
	Internet & Catalog Retail — 3.5%
100,928	Amazon.com, Inc.(c)		7,343,521
32,370	Priceline.com, Inc.(b)(c)		2,215,079
			9,558,600
	Internet Software & Services — 3.2%
21,492	Google, Inc. Class A(c)		8,607,976
	IT Services — 6.0%
24,581	MasterCard, Inc., Class A(b)		4,358,949
127,858	Visa, Inc., Class A		7,849,203
163,632	Western Union Co.		4,036,801
			16,244,953

Shares		Description	Value (†)
		Life Sciences Tools & Services — 3.0%
	38,340	Covance, Inc.(b)(c)	$	3,389,639
	114,033	Illumina, Inc.(c)		4,621,758
				8,011,397
		Machinery — 2.5%
	60,984	Cummins, Inc.		2,666,221
	47,116	Flowserve Corp.		4,182,487
				6,848,708
		Multiline Retail — 1.2%
	67,425	Kohl’s Corp.(c)		3,106,944
		Oil, Gas & Consumable Fuels — 5.8%
	28,505	EOG Resources, Inc.		2,550,057
	101,975	Petrohawk Energy Corp.(c)		2,205,719
	143,501	Southwestern Energy Co.(c)		4,382,521
	138,792	XTO Energy, Inc.		6,456,604
				15,594,901
		Road & Rail — 2.3%
	112,389	CSX Corp.		6,133,068
		Semiconductors & Semiconductor Equipment — 2.4%
	347,700	Intel Corp.		6,512,421
		Software — 7.1%
	319,472	Activision Blizzard, Inc.(c)		4,929,453
	99,508	McAfee, Inc.(c)		3,379,292
	389,375	Oracle Corp.(c)		7,908,206
	154,672	Symantec Corp.(c)		3,028,478
				19,245,429
		Specialty Retail — 3.9%
	57,403	GameStop Corp., Class A(c)		1,963,757
	193,632	Lowe’s Cos., Inc.		4,587,142
	120,514	Urban Outfitters, Inc.(b)(c)		3,840,781
				10,391,680
		Total Common Stocks (Identified Cost $276,058,688)		258,651,994
Shares/ Principal Amount
	Short-Term Investments — 7.7%
	15,008,790	State Street Navigator Securities Lending Prime Portfolio(d)		15,008,790
$	5,773,000	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $5,773,208 on 10/1/2008 collateralized by $5,790,000 Federal National Mortgage Association, 4.330% due 7/28/2011 valued at $5,891,325 including accrued interest (Note 2g of Notes to Financial Statements)		5,773,000
		Total Short-Term Investments (Identified Cost $20,781,790)		20,781,790
		Total Investments — 103.7% (Identified Cost $296,840,478)(a)		279,433,784
		Other assets less liabilities — (3.7)%		(9,908,443	)
		Net Assets — 100.0%	$	269,525,341
	(†)	See Note 2a of Notes to Financial Statements.

See accompanying notes to financial statements.

25

LOOMIS SAYLES GROWTH FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

(a)	Federal Tax Information: At September 30, 2008, the net unrealized depreciation on investments based on a cost of $297,698,960 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	$	7,052,321
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(25,317,497	)
	Net unrealized depreciation	$	(18,265,176	)
(b)	All or a portion of this security was on loan to brokers at September 30, 2008.
(c)	Non-income producing security.
(d)	Represents investment of securities lending collateral.

Net Asset Summary at September 30, 2008 (Unaudited)

Computers & Peripherals	9.1	%
Capital Markets	8.5
Software	7.1
Health Care Equipment & Supplies	7.0
IT Services	6.0
Oil, Gas & Consumable Fuels	5.8
Biotechnology	4.4
Communications Equipment	4.1
Food & Staples Retailing	4.0
Chemicals	3.9
Specialty Retail	3.9
Internet & Catalog Retail	3.5
Internet Software & Services	3.2
Life Sciences Tools & Services	3.0
Energy Equipment & Services	2.8
Hotels, Restaurants & Leisure	2.6
Machinery	2.5
Semiconductors & Semiconductor Equipment	2.4
Electrical Equipment	2.4
Road & Rail	2.3
Other Investments, less than 2% each	7.5
Short-Term Investments	7.7
Total Investments	103.7
Other assets less liabilities	(3.7	)
Net Assets	100.0	%

See accompanying notes to financial statements.

26

LOOMIS SAYLES RESEARCH FUND — PORTFOLIO OF INVESTMENTS

Investments as of September 30, 2008

Shares	Description	Value (†)
Common Stocks — 100.0% of Net Assets
	Aerospace & Defense — 3.9%
1,825	Boeing Co.	$	104,664
2,334	General Dynamics Corp.		171,829
3,527	Lockheed Martin Corp.		386,806
1,688	Precision Castparts Corp.(b)		132,981
3,916	Rockwell Collins, Inc.		188,320
			984,600
	Biotechnology — 4.0%
4,489	Celgene Corp.(c)		284,064
5,291	Genzyme Corp.(c)		427,989
6,764	Gilead Sciences, Inc.(c)		308,303
			1,020,356
	Capital Markets — 2.2%
1,693	Goldman Sachs Group, Inc.		216,704
6,093	State Street Corp.		346,570
			563,274
	Chemicals — 1.8%
2,701	Monsanto Co.		267,345
2,680	Praxair, Inc.		192,263
			459,608
	Commercial Banks — 4.1%
6,408	PNC Financial Services Group, Inc.		478,677
14,696	Wells Fargo & Co.(b)		551,541
			1,030,218
	Communications Equipment — 3.8%
4,124	Harris Corp.		190,529
17,749	QUALCOMM, Inc.		762,674
			953,203
	Computers & Peripherals — 6.4%
5,849	Apple, Inc.(c)		664,797
14,330	Dell, Inc.(c)		236,159
15,670	Hewlett-Packard Co.		724,581
			1,625,537
	Containers & Packaging — 1.6%
5,798	Owens-Illinois, Inc.(c)		170,461
9,335	Pactiv Corp.(b)(c)		231,788
			402,249
	Diversified Financial Services — 5.7%
19,100	Bank of America Corp.(b)		668,500
16,982	JPMorgan Chase & Co.		793,059
			1,461,559
	Diversified Telecommunication Services — 2.0%
18,526	AT&T, Inc.		517,246
	Electric Utilities — 2.9%
3,095	Exelon Corp.		193,809
5,726	FirstEnergy Corp.		383,585
3,134	FPL Group, Inc.		157,640
			735,034
	Electrical Equipment — 0.9%
5,765	Emerson Electric Co.		235,154
	Energy Equipment & Services — 2.2%
8,564	Halliburton Co.		277,388
3,764	Schlumberger Ltd.(b)		293,931
			571,319

Shares	Description	Value (†)
	Food & Staples Retailing — 7.1%
23,277	Kroger Co. (The)	$	639,652
19,650	Wal-Mart Stores, Inc.		1,176,838
			1,816,490
	Food Products — 1.2%
5,879	H.J. Heinz Co.		293,774
	Health Care Equipment & Supplies — 3.3%
4,899	Baxter International, Inc.		321,521
9,681	Covidien Ltd.		520,451
			841,972
	Health Care Providers & Services — 1.3%
7,168	Medco Health Solutions, Inc.(c)		322,560
	Hotels, Restaurants & Leisure — 1.2%
4,797	McDonald’s Corp.		295,975
	Household Products — 4.0%
14,724	Procter & Gamble Co. (The)		1,026,116
	Industrial Conglomerates — 0.9%
8,611	General Electric Co.		219,581
	Insurance — 4.9%
8,612	Chubb Corp. (The)(b)		472,799
11,388	Metlife, Inc.(b)		637,728
3,243	Travelers Cos., Inc. (The)		146,583
			1,257,110
	Machinery — 2.9%
2,189	Cummins, Inc.		95,703
7,796	Danaher Corp.		541,042
2,192	Deere & Co.		108,504
			745,249
	Media — 2.3%
11,282	DIRECTV Group, Inc. (The)(b)(c)		295,250
9,797	Walt Disney Co. (The)(b)		300,670
			595,920
	Multi-Utilities & Unregulated Power — 0.6%
4,531	Public Service Enterprise Group, Inc.		148,571
	Multiline Retail — 0.9%
6,491	Dollar Tree, Inc.(c)		236,013
	Oil, Gas & Consumable Fuels — 10.8%
4,486	Chevron Corp.		370,005
1,824	ConocoPhillips		133,608
2,619	Devon Energy Corp.		238,853
9,170	El Paso Corp.(b)		117,009
12,665	ExxonMobil Corp.		983,564
4,373	Marathon Oil Corp.		174,352
5,944	Occidental Petroleum Corp.		418,755
2,969	Petrohawk Energy Corp.(c)		64,219
5,418	XTO Energy, Inc.		252,045
			2,752,410
	Pharmaceuticals — 4.4%
14,372	Bristol-Myers Squibb Co.		299,656
6,340	Johnson & Johnson(b)		439,235
13,662	Schering-Plough Corp.(b)		252,337
3,690	Wyeth		136,309
			1,127,537
	Road & Rail — 2.4%
3,015	Burlington Northern Santa Fe Corp.		278,677

See accompanying notes to financial statements.

27

LOOMIS SAYLES RESEARCH FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Shares		Description	Value (†)
		Road & Rail — continued
	4,582	Union Pacific Corp.	$	326,055
				604,732
		Software — 5.1%
	20,662	Activision Blizzard, Inc.(c)		318,815
	7,746	McAfee, Inc.(c)		263,054
	34,806	Oracle Corp.(c)		706,910
				1,288,779
		Specialty Retail — 3.1%
	2,064	Autozone, Inc.(c)		254,574
	16,243	Gap, Inc. (The)		288,801
	7,582	Urban Outfitters, Inc.(b)(c)		241,638
				785,013
		Textiles, Apparel & Luxury Goods — 1.1%
	3,641	VF Corp.(b)		281,486
		Wireless Telecommunication Services — 1.0%
	6,973	American Tower Corp., Class A(c)		250,819
		Total Common Stocks (Identified Cost $27,027,952)		25,449,464
Shares/ Principal Amount
	Short-Term Investments — 6.7%
	1,479,633	State Street Navigator Securities Lending Prime Portfolio(d)		1,479,633
$	218,000	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $218,008 on 10/1/2008 collateralized by $220,000 Federal National Mortgage Association, 4.330% due 7/28/2011 valued at $223,850 including accrued interest (Note 2g Notes to Financial Statements)		218,000
		Total Short-Term Investments (Identified Cost $1,697,633)		1,697,633
		Total Investments — 106.7% (Identified Cost $28,725,585)(a)		27,147,097
		Other assets less liabilities — (6.7)%		(1,697,364	)
		Net Assets — 100.0%	$	25,449,733
	(†)	See Note 2a of Notes to Financial Statements.
	(a)	Federal Tax Information: At September 30, 2008, the net unrealized depreciation on investments based on a cost of $28,856,364 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	$	589,700
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(2,298,967	)
		Net unrealized depreciation	$	(1,709,267	)
	(b)	All or a portion of this security was on loan to brokers at September 30, 2008.
	(c)	Non-income producing security.
	(d)	Represents investment of securities lending collateral.

Net Asset Summary at September 30, 2008 (Unaudited)

Oil, Gas & Consumable Fuels	10.8	%
Food & Staples Retailing	7.1
Computers & Peripherals	6.4
Diversified Financial Services	5.7
Software	5.1
Insurance	4.9
Pharmaceuticals	4.4
Commercial Banks	4.1
Household Products	4.0
Biotechnology	4.0
Aerospace & Defense	3.9
Communications Equipment	3.8
Health Care Equipment & Supplies	3.3
Specialty Retail	3.1
Machinery	2.9
Electric Utilities	2.9
Road & Rail	2.4
Media	2.3
Energy Equipment & Services	2.2
Capital Markets	2.2
Diversified Telecommunication Services	2.0
Other Investments, less than 2% each	12.5
Short-Term Investments	6.7
Total Investments	106.7
Other assets less liabilities	(6.7	)
Net Assets	100.0	%

See accompanying notes to financial statements.

28

LOOMIS SAYLES VALUE FUND — PORTFOLIO OF INVESTMENTS

Investments as of September 30, 2008

Shares	Description	Value (†)
Common Stocks — 97.3% of Net Assets
	Aerospace & Defense — 4.1%
99,154	Goodrich Corp.	$	4,124,806
134,755	Northrop Grumman Corp.		8,158,068
90,296	United Technologies Corp.		5,423,178
			17,706,052
	Beverages — 2.9%
273,062	Dr Pepper Snapple Group, Inc.(b)		7,230,682
110,000	Molson Coors Brewing Co., Class B		5,142,500
			12,373,182
	Capital Markets — 3.0%
160,186	Ameriprise Financial, Inc.		6,119,105
214,888	Bank of New York Mellon Corp.		7,001,051
			13,120,156
	Chemicals — 2.8%
167,450	E.I. du Pont de Nemours & Co.		6,748,235
72,915	Praxair, Inc.		5,230,922
			11,979,157
	Commercial Banks — 3.7%
117,822	PNC Financial Services Group, Inc.		8,801,304
202,866	U.S. Bancorp		7,307,233
			16,108,537
	Communications Equipment — 1.2%
272,363	Nokia Oyj, Sponsored ADR		5,079,570
	Computers & Peripherals — 3.7%
184,433	Hewlett-Packard Co.		8,528,182
63,476	International Business Machines Corp.		7,424,153
			15,952,335
	Construction & Engineering — 0.8%
98,889	Foster Wheeler Ltd.(b)		3,570,882
	Consumer Finance — 0.7%
212,108	Discover Financial Services(c)		2,931,333
	Containers & Packaging — 2.7%
190,147	Owens-Illinois, Inc.(b)		5,590,322
249,024	Pactiv Corp.(b)		6,183,266
			11,773,588
	Diversified Financial Services — 8.3%
301,097	Bank of America Corp.		10,538,395
371,365	Citigroup, Inc.		7,616,696
284,865	JPMorgan Chase & Co.		13,303,195
90,199	Leucadia National Corp.(c)		4,098,643
			35,556,929
	Diversified Telecommunication Services — 4.0%
609,784	AT&T, Inc.		17,025,169
	Electric Utilities — 1.4%
96,950	Exelon Corp.		6,071,009
	Electrical Equipment — 1.0%
216,586	ABB Ltd., Sponsored ADR		4,201,768
	Energy Equipment & Services — 2.5%
162,935	Halliburton Co.		5,277,465
100,275	Tidewater, Inc.(c)		5,551,224
			10,828,689
	Food & Staples Retailing — 1.8%
128,924	Wal-Mart Stores, Inc.		7,721,258

Shares	Description	Value (†)
	Food Products — 2.9%
314,417	ConAgra Foods, Inc.	$	6,118,555
194,538	Kraft Foods, Inc., Class A		6,371,119
			12,489,674
	Gas Utilities — 0.6%
75,129	Equitable Resources, Inc.		2,755,732
	Health Care Equipment & Supplies — 1.5%
118,844	Covidien Ltd.		6,389,053
	Health Care Providers & Services — 1.1%
194,632	UnitedHealth Group, Inc.		4,941,706
	Hotels, Restaurants & Leisure — 1.7%
117,637	McDonald’s Corp.		7,258,203
	Household Durables — 0.6%
186,718	Pulte Homes, Inc.(c)		2,608,450
	Independent Power Producers & Energy Traders — 1.0%
169,450	NRG Energy, Inc.(b)(c)		4,193,888
	Industrial Conglomerates — 3.6%
370,616	General Electric Co.		9,450,708
63,945	Siemens AG, Sponsored ADR		6,003,796
			15,454,504
	Insurance — 7.4%
189,579	Allstate Corp.		8,743,383
2,129	Berkshire Hathaway, Inc., Class B(b)		9,356,955
140,135	Metlife, Inc.		7,847,560
84,015	Prudential Financial, Inc.		6,049,080
			31,996,978
	IT Services — 0.5%
134,392	Broadridge Financial Solutions, Inc.		2,068,293
	Media — 6.4%
268,409	Comcast Corp., Class A		5,268,869
303,751	DIRECTV Group, Inc. (The)(b)(c)		7,949,164
504,670	News Corp., Class A		6,050,993
643,564	Time Warner, Inc.		8,437,124
			27,706,150
	Multi-Utilities & Unregulated Power — 1.6%
179,440	PG&E Corp.(c)		6,720,028
	Oil, Gas & Consumable Fuels — 7.9%
239,792	ExxonMobil Corp.		18,622,247
157,559	Total SA, Sponsored ADR		9,560,680
121,956	XTO Energy, Inc.		5,673,393
			33,856,320
	Paper & Forest Products — 1.4%
98,466	Weyerhaeuser Co.		5,965,070
	Personal Products — 1.2%
105,994	Estee Lauder Cos., Inc. (The), Class A(c)		5,290,161
	Pharmaceuticals — 9.8%
343,859	Bristol-Myers Squibb Co.		7,169,460
100,257	Johnson & Johnson		6,945,805
125,141	Novartis AG, ADR		6,612,450
343,300	Pfizer, Inc.		6,330,452
500,148	Schering-Plough Corp.		9,237,734
154,020	Wyeth		5,689,499
			41,985,400

See accompanying notes to financial statements.

29

LOOMIS SAYLES VALUE FUND —  PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Shares		Description	Value (†)
		Semiconductors & Semiconductor Equipment — 1.1%
	301,731	Applied Materials, Inc.	$	4,565,190
		Software — 1.4%
	233,800	Microsoft Corp.		6,240,122
		Specialty Retail — 1.0%
	234,081	Gap, Inc. (The)		4,161,960
		Total Common Stocks (Identified Cost $458,707,021)		418,646,496
Shares/ Principal Amount
	Short-Term Investments — 8.0%
	19,426,361	State Street Navigator Securities Lending Prime Portfolio(d)		19,426,361
$	14,957,000	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $14,957,540 on 10/01/2008 collateralized by $15,110,000 Federal Home Loan Bank, 3.750% due 8/18/2009 with a value of $15,261,100, including accrued interest (Note 2g of Notes to Financial Statements)		14,957,000
		Total Short-Term Investments (Identified Cost $34,383,361)		34,383,361
		Total Investments — 105.3% (Identified Cost $493,090,382)(a)		453,029,857
		Other assets less liabilities — (5.3)%		(22,706,425	)
		Net Assets — 100.0%	$	430,323,432
	(†)	See Note 2a of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2008, the net unrealized depreciation on investments based on a cost of $493,549,726 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	$	12,767,999
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(53,287,868	)
		Net unrealized depreciation	$	(40,519,869	)
	(b)	Non-income producing security.
	(c)	All or a portion of this security was on loan to brokers at September 30, 2008.
	(d)	Represents investment of securities lending collateral.
	ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs are significantly influenced by trading on exchanges not located in the United States.

Net Asset Summary at September 30, 2008 (Unaudited)

Pharmaceuticals	9.8	%
Diversified Financial Services	8.3
Oil, Gas & Consumable Fuels	7.9
Insurance	7.4
Media	6.4
Aerospace & Defense	4.1
Diversified Telecommunication Services	4.0
Commercial Banks	3.7
Computers & Peripherals	3.7
Industrial Conglomerates	3.6
Capital Markets	3.0
Food Products	2.9
Beverages	2.9
Chemicals	2.8
Containers & Packaging	2.7
Energy Equipment & Services	2.5
Other Investments, less than 2% each	21.6
Short-Term Investments	8.0
Total Investments	105.3
Other assets less liabilities	(5.3	)
Net Assets	100.0	%

See accompanying notes to financial statements.

30

STATEMENTS OF ASSETS AND LIABILITIES

September 30, 2008

	Global Markets Fund			Growth Fund			Research Fund			Value Fund
ASSETS
Investments at cost	$	376,947,304		$	296,840,478		$	28,725,585		$	493,090,382
Net unrealized depreciation		(50,664,970	)		(17,406,694	)		(1,578,488	)		(40,060,525	)
Investments at value (a)		326,282,334			279,433,784			27,147,097			453,029,857
Cash		2,127,874			970			2,484			865
Foreign currency at value (identified cost $584,695)		561,421			—			—			—
Receivable for Fund shares sold		792,460			281,188			12,500			462,161
Receivable for securities sold		2,460,420			9,704,813			743,308			238,533
Dividends and interest receivable		2,420,284			51,021			17,245			479,916
Unrealized appreciation on forward foreign currency contracts (Note 2)		47,496			—			—			—
Receivable from investment adviser (Note 4)		3,761			—			8,350			—
Tax reclaims receivable		3,174			—			—			21,777
Foreign taxes receivable (Note 2)		3,389			—			—			—
Securities lending income receivable		17,395			7,890			1,955			7,999
Other assets		1,050			—			—			—
TOTAL ASSETS		334,721,058			289,479,666			27,932,939			454,241,108
LIABILITIES
Collateral on securities loaned, at value (Note 2)		16,569,651			15,008,790			1,479,633			19,426,361
Payable for securities purchased		4,022,564			1,045,673			791,620			3,368,473
Payable for Fund shares redeemed		1,534,613			3,483,414			113,992			563,840
Unrealized depreciation on forward foreign currency contracts (Note 2)		61,200			—			—			—
Management fees payable (Note 4)		209,781			122,547			10,852			170,979
Administrative fees payable (Note 4)		13,068			11,450			1,021			16,121
Deferred Trustees’ fees (Note 4)		43,598			81,652			39,189			242,405
Service and distribution fees payable (Note 4)		3,757			1,995			37			1,105
Other accounts payable and accrued expenses		115,558			198,804			46,862			128,392
TOTAL LIABILITIES		22,573,790			19,954,325			2,483,206			23,917,676
NET ASSETS	$	312,147,268		$	269,525,341		$	25,449,733		$	430,323,432
NET ASSETS CONSIST OF :
Paid-in capital	$	391,974,180		$	335,070,666		$	28,245,949		$	479,509,454
Accumulated net investment income (loss)		2,572,401			(81,654	)		34,370			3,386,746
Accumulated net realized loss on investments and foreign currency transactions		(31,665,637	)		(48,056,977	)		(1,252,098	)		(12,512,243	)
Net unrealized depreciation on investments and foreign currency translations		(50,733,676	)		(17,406,694	)		(1,578,488	)		(40,060,525	)
NET ASSETS	$	312,147,268		$	269,525,341		$	25,449,733		$	430,323,432
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	67,647,094		$	156,840,560		$	735,658		$	112,274,073
Shares of beneficial interest		5,805,184			31,401,704			105,434			6,260,904
Net asset value and redemption price per share	$	11.65		$	4.99		$	6.98		$	17.93
Offering price per share (100/94.25 of net asset value) (Note 1)	$	12.36		$	5.29		$	7.41		$	19.02
Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	—		$	9,553,157		$	226,903		$	8,385,115
Shares of beneficial interest		—			1,987,614			33,382			471,032
Net asset value and offering price per share	$	—		$	4.81		$	6.80		$	17.80
Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	124,178,055		$	27,743,051		$	949,089		$	6,482,556
Shares of beneficial interest		10,789,339			5,768,309			140,343			364,339
Net asset value and offering price per share	$	11.51		$	4.81		$	6.76		$	17.79
Class Y shares:
Net assets	$	120,322,119		$	75,388,573		$	23,538,083		$	303,181,688
Shares of beneficial interest		10,283,009			14,379,347			3,346,719			16,832,943
Net asset value, offering and redemption price per share	$	11.70		$	5.24		$	7.03		$	18.01
(a) Including securities on loan with market values of:	$	16,148,838		$	14,850,936		$	1,522,253		$	20,222,583

See accompanying notes to financial statements.

31

STATEMENTS OF OPERATIONS

For the Year Ended September 30, 2008

	Global Markets Fund			Growth Fund			Research Fund			Value Fund
INVESTMENT INCOME
Dividends	$	2,922,897		$	2,536,561		$	423,054		$	7,319,196
Interest		6,981,450			109,474			5,790			173,433
Securities lending income (Note 2)		308,926			281,364			34,016			143,263
Less net foreign taxes withheld		(86,732	)		—			(47	)		(67,440	)
		10,126,541			2,927,399			462,813			7,568,452
Expenses
Management fees (Note 4)		2,504,197			1,890,998			141,803			1,676,827
Service fees - Class A (Note 4)		170,445			523,839			2,541			270,245
Service and distribution fees - Class B (Note 4)		—			195,501			3,138			105,766
Service and distribution fees - Class C (Note 4)		1,317,337			372,703			8,267			51,951
Trustees’ fees and expenses (Note 4)		14,254			13,343			9,832			—
Administrative fees (Note 4)		169,781			193,081			14,464			170,186
Custodian fees and expenses		200,815			28,951			26,153			25,482
Transfer agent fees and expenses - Class A (Note 4)		63,786			481,784			2,188			191,261
Transfer agent fees and expenses - Class B (Note 4)		—			44,232			676			19,102
Transfer agent fees and expenses - Class C (Note 4)		124,273			85,755			1,741			9,045
Transfer agent fees and expenses - Class Y (Note 4)		71,061			48,317			15,613			64,517
Audit and tax services fees		53,290			40,275			40,930			33,804
Legal fees		8,581			9,333			714			8,503
Shareholder reporting expenses		41,903			81,407			5,857			51,765
Registration fees		88,775			71,090			61,043			115,602
Expense recapture - Class B (Note 4)		—			—			—			8
Expense recapture - Class C (Note 4)		—			—			—			137
Expense recapture - Class Y (Note 4)		9,653			—			—			—
Miscellaneous expenses		19,729			21,795			7,894			12,326
Total expenses		4,857,880			4,102,404			342,854			2,806,527
Less fee reduction and/or expense reimbursement (Note 4)		(49,265	)		(7,845	)		(84,606	)		(6,545	)
Net expenses		4,808,615			4,094,559			258,248			2,799,982
Net investment income (loss)		5,317,926			(1,167,160	)		204,565			4,768,470
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss on:
Investments (including foreign capital gains taxes paid of $18,501 for Global Markets Fund)		(25,421,837	)		(32,148,656	)		(1,114,622	)		(11,245,452	)
Foreign currency transactions		(338,150	)		—			—			—
Net change in unrealized appreciation (depreciation) on:
Investments (including change in foreign capital gains tax accrual of $74,768 for Global Markets Fund)		(77,726,127	)		(81,622,240	)		(5,382,213	)		(72,620,410	)
Foreign currency translations		(8,556	)		—			—			—
Net realized and unrealized loss on investments and foreign currency transactions		(103,494,670	)		(113,770,896	)		(6,496,835	)		(83,865,862	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(98,176,744	)	$	(114,938,056	)	$	(6,292,270	)	$	(79,097,392	)

See accompanying notes to financial statements.

32

STATEMENTS OF CHANGES IN NET ASSETS

	Global Markets Fund						Growth Fund
	Year Ended September 30, 2008			Year Ended September 30, 2007			Year Ended September 30, 2008			Year Ended September 30, 2007
FROM OPERATIONS:
Net investment income (loss)	$	5,317,926		$	1,533,353		$	(1,167,160	)	$	(1,945,087	)
Net realized gain (loss) on investments and foreign currency transactions		(25,759,987	)		5,807,960			(32,148,656	)		26,173,209
Net change in net unrealized appreciation (depreciation) on investments and foreign currency translations		(77,734,683	)		22,222,672			(81,622,240	)		50,265,940
Net increase (decrease) in net assets resulting from operations		(98,176,744	)		29,563,985			(114,938,056	)		74,494,062
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(1,576,341	)		(238,081	)		—			—
Class B		—			—			—			—
Class C		(2,867,382	)		(346,135	)		—			—
Class Y		(3,658,690	)		(1,143,953	)		—			—
Net realized capital gains
Class A		(1,305,191	)		—			—			—
Class B		—			—			—			—
Class C		(2,671,987	)		—			—			—
Class Y		(2,927,617	)		—			—			—
Total distributions		(15,007,208	)		(1,728,169	)		—			—
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 8)		255,345,464			52,772,239			(36,244,496	)		(76,568,270	)
Redemption Fees
Class A		12,818			743			—			—
Class C		21,877			1,591			—			—
Class Y		21,783			3,115			—			—
Net increase (decrease) in net assets		142,217,990			80,613,504			(151,182,552	)		(2,074,208	)
NET ASSETS
Beginning of year		169,929,278			89,315,774			420,707,893			422,782,101
End of year	$	312,147,268		$	169,929,278		$	269,525,341		$	420,707,893
ACCUMULATED NET INVESTMENT INCOME (LOSS)	$	2,572,401		$	1,691,875		$	(81,654	)	$	(82,036	)

See accompanying notes to financial statements.

33

Research Fund						Value Fund
Year Ended September 30, 2008			Year Ended September 30, 2007			Year Ended September 30, 2008			Year Ended September 30, 2007
$	204,565		$	153,496		$	4,768,470		$	1,698,014
	(1,114,622	)		3,421,566			(11,245,452	)		9,941,092
	(5,382,213)			1,282,288			(72,620,410	)		8,063,036
	(6,292,270	)		4,857,350			(79,097,392	)		19,702,142
	(6,624	)		(9,859	)		(444,319	)		(33,688	)
	—			(509	)		(25,511	)		—
	—			(2,662	)		(19,019	)		—
	(277,956	)		(260,548	)		(1,991,889	)		(673,111	)
	(123,072	)		(161,282	)		(1,119,214	)		(226,188	)
	(37,858	)		(48,393	)		(44,036	)		—
	(97,901	)		(147,505	)		(96,784	)		—
	(2,801,426	)		(2,907,435	)		(8,863,000	)		(4,162,095	)
	(3,344,837	)		(3,538,193	)		(12,603,772	)		(5,095,082	)
	4,968,748			2,841,472			321,024,510			114,779,649
	—			—			—			—
	—			—			—			—
	—			—			—			—
	(4,668,359	)		4,160,629			229,323,346			129,386,709
	30,118,092			25,957,463			201,000,086			71,613,377
$	25,449,733		$	30,118,092		$	430,323,432		$	201,000,086
$	34,370		$	75,445		$	3,386,746		$	1,350,462

34

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 (c)		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 (d)(h)
GLOBAL MARKETS FUND
Class A
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
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
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	)		—
9/30/2004		9.32		0.25		0.96			1.21			(0.34	)		—			(0.34	)		—

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

(b) 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.

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

See accompanying notes to financial statements.

35

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (a)(e)		Net assets, end of the period (000’s)		Net expenses (%) (b)(f)		Gross expenses (%) (f)		Net investment income (%) (f)	Portfolio turnover rate (%)
$	11.65	(21.9	)	$	67,647	1.25		1.27		1.74	133
	15.83	29.1			28,927	1.25		1.37		1.44	78
	12.49	(1.7	)		10,438	1.25		1.56		1.52	103
	11.51	(22.4	)		124,178	2.00		2.02		1.04	133
	15.70	28.0			60,179	2.00		2.11		0.69	78
	12.43	(2.1	)		20,228	2.00		2.32		0.78	103
	11.70	(21.7	)		120,322	0.99	(g)	0.99	(g)	2.06	133
	15.87	29.4			80,824	1.00		1.02		1.70	78
	12.51	7.1			58,650	1.00		1.19		1.58	103
	11.84	19.1			47,712	1.00		1.46		1.72	78
	10.19	13.2			17,274	1.00		1.87		2.55	69

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

(e) 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.

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

(g) Includes expense recapture of less than 0.01%.

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

36

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) (c)(d)			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
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			—		—		—
9/30/2004		4.41		(0.03	)		0.60			0.57			—		—		—
Class B
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			—		—		—
9/30/2004		4.41		(0.07	)		0.60			0.53			—		—		—
Class C
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			—		—		—
9/30/2004		4.41		(0.06	)		0.59			0.53			—		—		—
Class Y
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			—		—		—
9/30/2004		4.55		(0.02	)		0.62			0.60			—		—		—

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

(b) 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.

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

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

See accompanying notes to financial statements.

37

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (a)(e)		Net assets, end of the period (000’s)		Net expenses (%) (b)(h)		Gross expenses (%) (h)		Net investment income (loss) (%) (h)		Portfolio turnover rate (%)
$	4.99	(28.7	)	$	156,841	1.10		1.10		(0.33	)	179
	7.01	20.0			228,629	1.14	(g)	1.14	(g)	(0.49	)	134
	5.84	(3.2	)		225,729	1.10		1.17		(0.03	)	174
	6.03	21.1			51,248	1.10		1.60		(0.38	)	164
	4.98	12.9			14,072	1.10		1.70		(0.58	)	171
	4.81	(29.2	)		9,553	1.85		1.85		(1.05	)	179
	6.79	19.1			28,258	1.85	(g)	1.85	(g)	(1.20	)	134
	5.70	(4.0	)		32,160	1.95		2.11		(0.85	)	174
	5.94	20.2			38,538	1.85		2.33		(1.14	)	164
	4.94	12.0			12,532	1.85		2.45		(1.33	)	171
	4.81	(29.3	)		27,743	1.85		1.85		(1.08	)	179
	6.80	19.1			39,157	1.88		1.88		(1.23	)	134
	5.71	(3.9	)		43,415	1.85		1.95		(0.76	)	174
	5.94	20.2			25,734	1.85		2.35		(1.10	)	164
	4.94	12.0			6,826	1.85		2.45		(1.30	)	171
	5.24	(28.4	)		75,389	0.66		0.66		0.11		179
	7.32	20.4			124,663	0.67		0.67		(0.02	)	134
	6.08	(2.9	)		121,478	0.80	(f)	0.80	(f)	0.31		174
	6.26	21.6			95,534	0.85		0.97		(0.05	)	164
	5.15	13.2			40,165	0.85		1.04		(0.32	)	171

(e) 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.

(f) Includes expense recapture of 0.07%.

(g) Includes expense recapture of less than 0.01% and 0.08% for Class A and Class B, respectively.

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

38

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) (c)(d)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income (d)			Distributions from net realized capital gains			Total distributions (d)
RESEARCH FUND
Class A
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	)
9/30/2004		6.90		0.01			0.90			0.91			(0.02	)		—			(0.02	)
Class B
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	)
9/30/2004		6.90		(0.05	)		0.90			0.85			(0.02	)		—			(0.02	)
Class C
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	)
9/30/2004		6.90		(0.05	)		0.88			0.83			—			—			—
Class Y
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	)
9/30/2004		6.92		0.03			0.90			0.93			(0.03	)		—			(0.03	)

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

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

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

See accompanying notes to financial statements.

39

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (a)(e)		Net assets, end of the period (000’s)		Net expenses (%) (b)(f)	Gross expenses (%) (f)	Net investment income (loss) (%) (f)		Portfolio turnover rate (%)
$	6.98	(20.4	)	$	736	1.25	1.55	0.38		149
	9.77	18.0			1,198	1.25	1.50	0.22		148
	9.42	7.7			1,331	1.25	1.68	0.56		143
	9.22	18.4			344	1.25	34.73	0.03		133
	7.79	13.2			106	1.21	39.85	0.07		151
	6.80	(21.0	)		227	2.00	2.30	(0.37	)	149
	9.56	17.1			356	2.00	2.31	(0.51	)	148
	9.25	6.9			331	2.00	2.33	(0.19	)	143
	9.10	17.8			210	2.00	41.40	(0.71	)	133
	7.73	12.3			57	2.00	40.60	(0.71	)	151
	6.76	(21.1	)		949	2.00	2.30	(0.39	)	149
	9.52	17.2			1,164	2.00	2.29	(0.54	)	148
	9.22	6.9			1,198	2.00	2.37	(0.18	)	143
	9.08	17.5			140	2.00	37.60	(0.76	)	133
	7.73	12.0			3	2.00	40.60	(0.59	)	151
	7.03	(20.2	)		23,538	0.85	1.15	0.78		149
	9.85	18.4			27,400	0.85	1.11	0.62		148
	9.49	8.1			23,096	0.85	1.26	0.98		143
	9.27	19.0			24,651	0.85	1.31	0.43		133
	7.82	13.5			21,721	0.85	1.50	0.44		151

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

(e) 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.

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

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 (c)(d)		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****
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
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
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***
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	)
9/30/2004		13.52		0.21		2.39			2.60			(0.17	)		—			(0.17	)

* 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.

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

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

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

(b) 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.

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

See accompanying notes to financial statements.

41

				Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (a)(g)		Net assets, end of the period (000’s)		Net expenses (%) (b)(f)		Gross expenses (%) (f)		Net investment income (loss) (%) (f)	Portfolio turnover rate (%)
$	17.93	(19.0	)	$	112,274	1.05		1.05		1.24	36	(i)
	23.46	16.9			17,500	1.09	(e)	1.09	(e)	0.79	41
	21.04	6.9			466	1.10		8.65		0.42	36
	17.80	(19.7	)		8,385	1.80	(h)	1.80	(h)	0.51	36	(i)
	23.46	(2.3	)		108	1.85		1.89		0.03	41
	17.79	(19.6	)		6,483	1.80	(h)	1.80	(h)	0.46	36	(i)
	23.46	(2.3	)		1,390	1.85		1.94		0.10	41
	18.01	(18.7	)		303,182	0.65		0.66		1.58	36	(i)
	23.54	17.3			182,002	0.72	(e)	0.72	(e)	1.19	41
	21.05	18.9			71,147	0.85		0.91		1.13	36
	18.72	19.2			37,255	0.85		0.92		1.13	34
	15.95	19.4			33,563	0.85		0.93		1.38	47

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

(e) Includes expense recapture of 0.02% and 0.01% for Class A and Class Y, respectively.

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

(g) 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.

(h) Includes expense recapture of less than 0.01% for Class B and Class C, respectively.

(i) Portfolio turnover excludes the impact of assets resulting from a merger with another fund. (See Note 9 of Notes to Financial Statements)

42

NOTES TO FINANCIAL STATEMENTS

September 30, 2008

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. Information presented in these financial statements pertains to certain equity funds of the Trust; the financial statements for the remaining equity funds and the fixed income funds of the Trust are presented in separate reports. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:

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

Loomis Sayles Growth Fund (the “Growth Fund”)

Loomis Sayles Research Fund (the “Research Fund”)

Loomis Sayles Value Fund (the “Value Fund”)

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

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

Most expenses of the 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 and transfer agent fees applicable to such class). In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of a fund if the fund were liquidated. The Trustees approve separate dividends from net investment income on each class of shares.

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

a.  Security Valuation.  Equity securities, including closed-end investment companies and exchange-traded funds, for which market quotations are readily available are valued at market value, as reported by pricing services recommended by the investment adviser and 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. 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 September 30, 2008, approximately 16% of the market value of the Global Markets Fund’s investments was fair valued pursuant to procedures approved by the Board of Trustees.

43

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

b.  Security Transactions and Related Investment Income.  Security transactions are accounted for on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as the Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. Periodic principal adjustments for inflation-protected securities are recorded to interest income. 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 the investment securities. Such changes are included with the net realized and unrealized gain or loss on investments.

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

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

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

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 Fund’s Statement of Assets and Liabilities. The U.S. dollar value of the currencies a Fund has committed to buy or sell represents the aggregate exposure to each currency the Fund has acquired or hedged through currency contracts outstanding at period end.

All contracts are “marked-to-market” daily at the applicable exchange rates and any gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

e.  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 applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of the Funds’ tax positions taken on federal and state tax returns that remain subject to examinations (tax years ended September 30, 2005-2008) and has concluded that no provisions for income tax are required. Fund management is not aware of any events that are reasonably possible to occur in the next twelve 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.

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 net operating losses, distribution redesignations, capital gain taxes, paydown adjustments, capital loss carryforwards permanently lost due to a merger, wash sales and deferred trustee fees inherited in a merger, foreign currency transactions, gains realized from passive foreign investment companies (“PFICs”) 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, wash sales, unrealized gains on PFICs, 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.

44

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2008 and 2007 was as follows:

	2008 Distributions Paid From:						2007 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Global Markets Fund	$	9,975,891	$	5,031,317	$	15,007,208	$	1,728,169	$	—	$	1,728,169
Growth Fund		—		—		—		—		—		—
Research Fund		1,651,307		1,693,530		3,344,837		1,006,557		2,531,636		3,538,193
Value Fund		6,455,247		6,148,525		12,603,772		958,359		4,136,723		5,095,082

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

As of September 30, 2008, the components of distributable earnings on a tax basis were as follows:

	Global Markets Fund			Growth Fund			Research Fund			Value Fund
Undistributed ordinary income	$	2,733,999		$	—		$	73,559		$	3,629,149
Undistributed long-term capital gains		—			—			—			—
Total undistributed earnings		2,733,999			—			73,559			3,629,149
Capital loss carryforward:
Expires September 30, 2010		—			(9,606,459	)*		—			—
Expires September 30, 2011		—			(6,192,314	)*		—			—
Expires September 30, 2016		—			(75,866	)		—			—
Total capital loss carryforward		—			(15,874,639	)		—			—
Deferred net capital losses (post-October 2007)		(29,837,961	)		(31,323,857	)		(1,121,319	)		(12,052,896	)
Unrealized appreciation (depreciation)		(52,631,354	)		(18,265,176	)		(1,709,267	)		(40,519,869	)
Total accumulated earnings (losses)		(79,735,316	)		(65,463,672	)		(2,757,027	)		(48,943,616	)
Capital loss carryforward utilized in the current year	$	—		$	—		$	—		$	—

* 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.

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

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

	Market Value of Securities on Loan		Value of Collateral
Global Markets Fund	$	16,148,838	$	16,569,651
Growth Fund		14,850,936		15,008,790
Research Fund		1,522,253		1,479,633
Value Fund		20,222,583		19,426,361

45

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

Subsequent to September 30, 2008, all open securities lending transactions were closed.

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

j.  New Accounting Pronouncements.  In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management has evaluated the impact the adoption of FAS 157 will have on the Funds’ financial statements and believes that such impact will be limited to expanded disclosure in the Funds’ financial statements regarding inputs used in determining the value of the Funds’ investments.

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

3.  Purchases and Sales of Securities.  For the year ended September 30, 2008, purchases and sales of securities (excluding short-term investments and U.S. government/agency securities and including paydowns) were as follows:

Fund	Purchases		Sales
Global Markets Fund	$	621,670,969	$	376,565,412
Growth Fund		666,731,609		711,230,092
Research Fund		44,096,629		42,199,464
Value Fund		302,224,902		116,972,182

For the year ended September 30, 2008, purchases and sales of U.S. government/agency securities by the Global Markets Fund were $22,491,901 and $37,182,189, respectively. Purchases and sales of the Value Fund exclude the impact of assets resulting from a merger with another fund. (See Note 9).

4. 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
Global Markets Fund	0.75	%
Growth Fund	0.50	%
Research Fund	0.50	%
Value Fund	0.50	%

Loomis Sayles has given binding undertakings to the Funds to reduce management fees and/or reimburse certain expenses associated with the Funds to limit their operating expenses. These undertakings are in effect until January 31, 2009 and will be reevaluated on an annual basis. For the year ended September 30, 2008, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:

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

46

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

For the year ended September 30, 2008, the management fees and reductions of management fees for each Fund were as follows:

	Gross Management		Reduction of Management		Net Management		Percentage of Average Daily Net Assets
Fund	Fee		Fee		Fee		Gross		Net
Global Markets Fund	$	2,504,197	$	—	$	2,504,197	0.75	%	0.75	%
Growth Fund		1,890,998		—		1,890,998	0.50	%	0.50	%
Research Fund		141,803		67,138		74,665	0.50	%	0.26	%
Value Fund		1,676,827		—		1,676,827	0.50	%	0.50	%

For the year ended September 30, 2008, class specific expenses have been reimbursed as follows:

Fund	Reimbursement
Global Markets Fund	$	42,849
Growth Fund		—
Research Fund		16,894
Value Fund		—

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 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 fee/expense was reduced. The amounts subject to possible reimbursement under the expense limitation agreements at September 30, 2008 were as follows:

	Expenses Subject to Possible Reimbursement until September 30, 2009
Fund	Class A		Class B		Class C		Class Y		Total
Global Markets Fund	$	13,645	$	—	$	29,204	$	—	$	42,849
Growth Fund		—		—		—		—		—
Research Fund		2,990		927		2,471		77,644		84,032
Value Fund		—		—		—		—		—

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 subcontracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, 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 an annual fee of $75,000 plus $12,500 per class and an additional $75,000 if managed by multiple subadvisors in their first calendar year of operations.

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

Prior to July 1, 2008, the Funds paid Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0675% of the first $5 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0625% of the next $5 billion, 0.0500% of the next $20 billion and 0.045% of such assets in excess of $30 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $5 million, which was reevaluated on an annual basis. New funds were subject to an annual fee of $50,000 plus $12,500 per class and an additional $50,000 if managed by multiple subadvisors in their first calendar year of operations.

47

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

For the year ended September 30, 2008, amounts paid to Natixis Advisors for administrative fees were as follows:

Fund	Gross Administrative Fees		Waiver of Administrative Fees		Net Administrative Fees
Global Markets Fund	$	169,781	$	6,416	$	163,365
Growth Fund		193,081		7,845		185,236
Research Fund		14,464		574		13,890
Value Fund		170,186		6,545		163,641

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 Trust has adopted a Service Plan relating to each Fund’s Class A shares (the “Class A Plans”); Distribution and Service Plan relating to the Growth Fund’s, Research Fund’s and Value Fund’s Class B shares (the “Class B Plans”), and a Distribution and Service Plan relating to each Fund’s Class C shares (the “Class C Plans”).

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

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

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

For the year ended September 30, 2008, the Funds paid the following service and distribution fees:

	Service Fee						Distribution Fee
Fund	Class A		Class B		Class C		Class B		Class C
Global Markets Fund	$	170,445	$	—	$	329,334	$	—	$	988,003
Growth Fund		523,839		48,875		93,176		146,626		279,527
Research Fund		2,541		784		2,067		2,354		6,200
Value Fund		270,245		26,441		12,988		79,325		38,963

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 intermediary (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 intermediary. Natixis Distributors pays the remainder of the fees. Listed below are the fees incurred by the Funds which are included in the transfer agent fees and expenses in the Statements of Operations.

	Sub-Transfer Agent Fees
Fund	Class A		Class B		Class C		Class Y
Global Markets Fund	$	46,138	$	—	$	87,333	$	66,501
Growth Fund		313,378		33,455		55,203		48,211
Research Fund		854		263		682		15,246
Value Fund		27,728		3,136		1,309		52,968

48

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

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

Fund	Commissions
Global Markets Fund	$	819,051
Growth Fund		184,395
Research Fund		3,529
Value Fund		89,669

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

Prior to January 1, 2008, each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $55,000. Each Independent Trustee also received a meeting attendance fee of $6,000 for each meeting of the Board of Trustees that he or she attended in person and $3,000 for each meeting that he or she attended telephonically. In addition, each Contract Review and Governance Committee member received $4,000 for each committee meeting that he or she attended in person and $2,000 for each committee meeting that he or she attended telephonically. Each Audit Committee member received $5,000 for each committee meeting that he or she attended in person and $2,500 for each committee meeting that he or she attended telephonically. The Chairperson of the Board and committee chair retainers were $200,000 and $10,000, respectively.

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 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.

For the year ended September 30, 2008, net depreciation in the value of participants’ deferral accounts has been reclassified as Miscellaneous expenses on the Statements of Operations, as follows:

Fund	Amount
Value Fund	$	3,442

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

5.  Line of Credit.  Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participates in a $200,000,000 committed line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.09% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

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

For the year ended September 30, 2008, the Funds had no borrowings under these agreements.

49

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

6.  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 year ended September 30, 2008, amounts rebated under these agreements were as follows:

Fund	Rebates
Global Markets Fund	$	56,996
Growth Fund		170,370
Research Fund		12,378
Value Fund		28,307

7.  Shareholders.  At September 30, 2008, 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
Global Markets Fund	952,415	443,907
Growth Fund	1,345,338	2,048,218
Research Fund	1,109,386	732,305
Value Fund	500,273	661,146

At September 30, 2008, two shareholders individually owned more than 5% of the Research Fund’s total outstanding shares, representing, in aggregate, 28.18% of the Fund; and one shareholder individually owned more than 5% of the Global Markets Fund’s total outstanding shares, representing in aggregate, 6.93% of the Fund.

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

	Year Ended September 30, 2008					Year Ended September 30, 2007
Global Markets Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	7,795,589		$	116,072,629		1,323,460		$	19,376,888
Issued in connection with the reinvestment of distributions	131,139			2,095,597		12,909			170,145
Redeemed	(3,949,026	)		(54,699,917	)	(344,626	)		(4,798,240	)
Net change	3,977,702		$	63,468,309		991,743		$	14,748,793
Class C
Issued from the sale of shares	9,661,731		$	145,592,794		2,428,865		$	34,758,519
Issued in connection with the reinvestment of distributions	105,649			1,677,700		6,914			90,915
Redeemed	(2,810,388	)		(38,148,474	)	(230,238	)		(3,164,913	)
Net change	6,956,992		$	109,122,020		2,205,541		$	31,684,521
Class Y
Issued from the sale of shares	8,797,937		$	131,551,316		1,157,288		$	16,511,186
Issued in connection with the reinvestment of distributions	307,774			4,927,469		78,467			1,034,975
Redeemed	(3,916,604	)		(53,723,650	)	(830,965	)		(11,207,236	)
Net change	5,189,107		$	82,755,135		404,790		$	6,338,925
Increase (decrease) from capital share transactions	16,123,801		$	255,345,464		3,602,074		$	52,772,239

50

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

8.  Capital Shares (continued).

	Year Ended September 30, 2008					Year Ended September 30, 2007
Growth Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	7,680,209		$	49,883,063		7,089,532		$	44,698,435
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(8,908,360	)		(57,264,265	)	(13,109,095	)		(81,970,028	)
Net change	(1,228,151	)	$	(7,381,202	)	(6,019,563	)	$	(37,271,593	)
Class B
Issued from the sale of shares	63,680		$	406,401		225,868		$	1,376,484
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(2,236,178	)		(13,949,200	)	(1,705,839	)		(10,426,523	)
Net change	(2,172,498	)	$	(13,542,799	)	(1,479,971	)	$	(9,050,039	)
Class C
Issued from the sale of shares	1,220,476		$	7,692,403		1,278,833		$	7,816,200
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(1,212,293	)		(7,365,990	)	(3,124,017	)		(19,027,646	)
Net change	8,183		$	326,413		(1,845,184	)	$	(11,211,446	)
Class Y
Issued from the sale of shares	4,435,371		$	30,672,809		3,152,372		$	20,891,933
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(7,080,124	)		(46,319,717	)	(6,121,890	)		(39,927,125	)
Net change	(2,644,753	)	$	(15,646,908	)	(2,969,518	)	$	(19,035,192	)
Increase (decrease) from capital share transactions	(6,037,219	)	$	(36,244,496	)	(12,314,236	)	$	(76,568,270	)
	Year Ended September 30, 2008					Year Ended September 30, 2007
Research Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	41,128		$	353,240		119,265		$	1,061,187
Issued in connection with the reinvestment of distributions	5,586			50,215		5,961			51,978
Redeemed	(63,879	)		(518,171	)	(143,887	)		(1,318,176	)
Net change	(17,165	)	$	(114,716	)	(18,661	)	$	(205,011	)
Class B
Issued from the sale of shares	4,050		$	37,443		13,946		$	127,879
Issued in connection with the reinvestment of distributions	2,116			18,641		3,004			25,776
Redeemed	(10,015	)		(79,179	)	(15,550	)		(137,306	)
Net change	(3,849	)	$	(23,095	)	1,400		$	16,349
Class C
Issued from the sale of shares	122,016		$	929,529		58,235		$	506,509
Issued in connection with the reinvestment of distributions	625			5,472		604			5,155
Redeemed	(104,640	)		(837,295	)	(66,416	)		(595,377	)
Net change	18,001		$	97,706		(7,577	)	$	(83,713	)
Class Y
Issued from the sale of shares	445,607		$	3,756,330		390,426		$	3,634,934
Issued in connection with the reinvestment of distributions	340,294			3,072,854		353,735			3,098,721
Redeemed	(220,905	)		(1,820,331	)	(396,917	)		(3,619,808	)
Net change	564,996		$	5,008,853		347,244		$	3,113,847
Increase (decrease) from capital share transactions	561,983		$	4,968,748		322,406		$	2,841,472

51

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

8.  Capital Shares (continued).

	Year Ended September 30, 2008					Year Ended September 30, 2007
Value Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	2,540,370		$	50,973,973		1,007,378		$	22,480,490
Issued in connection with the acquisition of assets from Natixis Value Fund (Note 9)	4,677,827			105,017,209		—			—
Issued in connection with the reinvestment of distributions	66,481			1,479,502		11,954			259,876
Redeemed	(1,769,731	)	$	(35,781,927	)	(295,544	)		(6,787,734	)
Net change	5,514,947		$	121,688,757		723,788		$	15,952,632
Class B*
Issued from the sale of shares	15,504		$	318,803		4,592		$	109,794
Issued in connection with the acquisition of assets from Natixis Value Fund (Note 9)	653,035			14,641,036		—			—
Issued in connection with the reinvestment of distributions	3,039			67,865		—			—
Redeemed	(205,132	)	$	(4,185,244	)	(6	)		(133	)
Net change	466,446		$	10,842,460		4,586		$	109,661
Class C*
Issued from the sale of shares	237,371		$	4,858,951		61,363		$	1,408,850
Issued in connection with the acquisition of assets from Natixis Value Fund (Note 9)	127,550			2,857,122		—			—
Issued in connection with the reinvestment of distributions	1,900			42,151		—			—
Redeemed	(61,760	)	$	(1,258,832	)	(2,085	)		(48,751	)
Net change	305,061		$	6,499,392		59,278		$	1,360,099
Class Y
Issued from the sale of shares	11,928,797		$	239,360,963		6,373,521		$	144,020,544
Issued in connection with the reinvestment of distributions	436,948			9,702,013		186,666			4,059,991
Redeemed	(3,265,447	)		(67,069,075	)	(2,207,571	)		(50,723,278	)
Net change	9,100,298		$	181,993,901		4,352,616		$	97,357,257
Increase (decrease) from capital share transactions	15,386,752		$	321,024,510		5,140,268		$	114,779,649

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

9.  Acquisition of Assets.  After the close of business on October 26, 2007, the Value Fund acquired all assets and liabilities of Natixis Value Fund, pursuant to a plan of reorganization approved by Natixis Value Fund shareholders on October 12, 2007. The acquisition was accomplished by a tax-free exchange of 4,677,827 Class A shares of the Value Fund for 14,004,395 shares of the Natixis Value Fund Class A, 653,035 Class B shares of the Value Fund for 2,297,374 shares of the Natixis Value Fund Class B; and 127,550 Class C shares of the Value Fund for 448,235 shares of the Natixis Value Fund Class C. Natixis Value Fund net assets at that date of $122,515,367, including $13,382,872 of net unrealized appreciation, were combined with those of the Value Fund. The aggregate net assets of the Value Fund immediately before the acquisition were $200,528,438. The combined net assets of the Value Fund immediately following the acquisition were $323,043,805.

52

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees of Loomis Sayles Funds II and Shareholders of Loomis Sayles Global Markets Fund, Loomis Sayles Growth Fund, Loomis Sayles Research Fund, and Loomis Sayles Value Fund:

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Global Markets Fund, Loomis Sayles Growth Fund, Loomis Sayles Research Fund and Loomis Sayles Value Fund, each a series of Loomis Sayles Funds II (collectively, “the Funds”), at September 30, 2008, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2008

53

2008 U.S. TAX DISTRIBUTION INFORMATION TO SHAREHOLDERS (unaudited)

Corporate Dividends Received Deduction.  For the fiscal year ended September 30, 2008, a percentage of dividends distributed by the Funds listed below qualify for the dividends received deduction for corporate shareholders. These percentages are as follows:

Fund	Qualifying Percentage
Global Markets	7.17	%
Research	24.17	%
Value	52.51	%

Capital Gains Distributions.  Pursuant to Internal Revenue Section 852(b), the following Funds paid distributions, which have been designated as capital gains distributions for the fiscal year ended September 30, 2008.

Fund	Amount
Global Markets	$	5,031,317
Research		1,693,530
Value		6,148,525

Qualified Dividend Income.  For the fiscal year ended September 30, 2008, the Funds below will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 5% to 15% depending on an individual’s tax bracket. If the Funds pay a distribution during calendar year 2008, complete information will be reported in conjunction with Form 1099-DIV.

Fund

Global Markets

Growth

Research

Value

54

TRUSTEE AND OFFICER INFORMATION

The tables below provide certain information regarding the Trustees and officers of Loomis Sayles Funds II (the “Trust”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Trust’s Statements of Additional Information include additional information about the Trustees of the Trust and are available by calling Loomis Sayles at 800-343-2029.

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen*** and Other Directorships Held
INDEPENDENT TRUSTEES
Graham T. Allison, Jr. (1940)	Trustee Since 2003 Contract Review and Governance Committee Member	Douglas Dillon Professor and Director of the Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University	41 Director, Taubman Centers, Inc. (real estate investment trust)
Charles D. Baker (1956)	Trustee Since 2005 Contract Review and Governance Committee Member	President and Chief Executive Officer, Harvard Pilgrim Health Care (health plan)	41 None
Edward A. Benjamin (1938)	Trustee Since 2002 Chairman of the Contract Review and Governance Committee	Retired	41 None
Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Audit Committee	President and Chief Executive Officer, Cain Brothers & Company, Incorporated (investment banking)	41 Director, Sheridan Healthcare Inc. (physician practice management)
Kenneth A. Drucker (1945)	Trustee Since 2008 Contract Review and Governance Committee Member	Formerly, Treasurer, Sequa Corp. (manufacturing)	41 Director, M Fund, Inc. (registered investment company)
Jonathan P. Mason (1958)	Trustee Since 2007 Audit Committee Member	Chief Financial Officer, Cabot Corp. (specialty chemicals); formerly, Vice President and Treasurer, International Paper Company; formerly, Chief Financial Officer, Carter Holt Harvey (forest products)	41 None
Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee since 2003 Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting); formerly, Senior Vice President and Director, The Boston Consulting Group, Inc. (management consulting)	41 Director, Verizon Communications; Director, Rohm and Haas Company (specialty chemicals); Director, AES Corporation (international power company)

55

TRUSTEE AND OFFICER INFORMATION

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen*** and Other Directorships Held
INDEPENDENT TRUSTEES continued
Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School; and formerly, Dean for Finance & Chief Financial Officer, Harvard Medical School	41 None
INTERESTED TRUSTEES
Robert J. Blanding1 (1947) 555 California Street San Francisco, CA 94104	Chief Executive Officer and Trustee since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	41 None
John T. Hailer2 (1960)	Trustee Since 2003	President and Chief Executive Officer-U.S. and Asia, Natixis Global Asset Management, L.P.; formerly, President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P., Natixis Distributors, L.P. and Natixis Global Associates, Inc.	41 None

* Each Trustee serves until retirement, resignation or removal from the Board of Trustees. The current retirement age is 72. The position of Chairperson of the Board is appointed for a two-year term. Ms. Moose was appointed to serve an additional two-year term as the Chairperson of the Board of Trustees on September 14, 2007.

** Each person listed above, except as noted, holds the same position(s) with the Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Gateway Trust and the Natixis Cash Management Trust (collectively, the “Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (collectively, the “Loomis Sayles Funds Trusts”), and Hansberger International Series. Previous positions during the past five years with Natixis Distributors, L.P. (the “Distributor”), Natixis Asset Management Advisors, L.P. (“Natixis Advisors”), or Loomis, Sayles & Company, L.P. are omitted if not materially different from a Trustee’s or officer’s current position with such entity.

*** The Trustees of the Trust serve as trustees of a fund complex that includes all series of the Natixis Funds Trusts, the Loomis Sayles Funds Trusts and Hansberger International Series (collectively, the “Fund Complex”).

¹ Mr. Blanding is deemed an “interested person” of the Trust because he holds the following positions with affiliated persons of the Trust: President, Chairman, Director and Chief Executive Officer of Loomis, Sayles & Company, L.P.

² Mr. Hailer is deemed an “interested person” of the Trust because he holds the following positions with affiliated persons of the Trust: President and Chief Executive Officer-U.S. and Asia, Natixis Global Asset Management, L.P.

56

TRUSTEE AND OFFICER INFORMATION

Name and Year of Birth	Position(s) Held with the Trust	Term of Office* and Length of Time Served	Principal Occupation During Past 5 Years**
OFFICERS OF THE TRUST
Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk (formerly, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk), Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.
Daniel J. Fuss (1933) One Financial Center Boston, MA 02111	Executive Vice President	Since June 2003	Vice Chairman and Director, Loomis, Sayles & Company, L.P.
David Giunta (1965)	President	Since March 2008	President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; formerly, President, Fidelity Charitable Gift Fund; and formerly, Senior Vice President, Fidelity Brokerage Company
Russell L. Kane (1969)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Chief Compliance Officer since May 2006; Assistant Secretary since June 2004; and Anti-Money Laundering Officer since April 2007	Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; and formerly, Senior Counsel, Columbia Management Group

57

TRUSTEE AND OFFICER INFORMATION

Name and Year of Birth	Position(s) Held with the Trust	Term of Office* and Length of Time Served	Principal Occupation During Past 5 Years**
OFFICERS OF THE TRUST continued
Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; and formerly, Senior Director, PFPC Inc.
Robert Krantz (1964)	Executive Vice President	Since September 2007	Executive Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.

* Each officer of the Trust serves for an indefinite term in accordance with the Trust’s current By-laws until the date his or her successor is elected and qualified, or until he or she sooner dies, retires, is removed or becomes disqualified.

** Each person listed above, except as noted, holds the same position(s) with the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series. Mr. Fuss is not an officer of the Natixis Funds Trusts or the Hansberger International Series. Previous positions during the past five years with the Distributor, Natixis Advisors or Loomis Sayles are omitted if not materially different from a Trustee’s or officer’s current position with such entity.

58

Loomis Sayles Mid Cap Growth Fund

Loomis Sayles Small Cap Growth Fund

Loomis Sayles Small Cap Value Fund

TABLE OF CONTENTS
Fund and Manager Review	1
Portfolio of Investments	11
Statements of Assets and Liabilities	26
Statements of Operations	27
Statements of Changes in Net Assets	28
Financial Highlights	31
Notes to Financial Statements	35

ANNUAL REPORT

SEPTEMBER 30, 2008

FUND AND MANAGER REVIEW

Loomis Sayles Mid Cap Growth Fund

Phil Fine, CFA

Manager since February 1999

FUND FACTS

Symbol | Institutional: LSAIX;

Retail: LAGRX

Objective | Long-term capital growth from investments in common stocks or similar securities

Strategy | Invests at least 80% of its net assets (plus any borrowings made for investment purposes) in common stocks or other equity securities (which may include securities offered in the secondary markets or in initial public offerings) of companies with market capitalizations that fall within the capitalization range of the Russell Midcap Growth Index, although the Fund may invest in companies of any size

Fund Inception Date | 12/31/96

Total Net Assets | $146.3 million

PORTFOLIO REVIEW

Strong stock selection and an overweight in the materials and processing sector, coupled with strong selection in the energy sector, were primarily responsible for the Fund’s outperformance relative to its Benchmark, the Russell Midcap Growth Index, for the fiscal year ended September 30, 2008.

Early in 2008, we trimmed the Fund’s exposure to late-cyclical (companies sensitive to the economy late in the cycle) energy, materials and industrial holdings in anticipation of an economic downturn. We also increased the Fund’s weightings in healthcare and consumer discretionary. This proved to be the wrong strategy, so in late March and early April we reversed course and added significantly to our energy and materials exposure, which proved successful. Our concerns about the sustainability of the commodities bubble caused us to partially offset that exposure with holdings in technology, financial companies (asset managers) and discount merchandisers. Late in the period, on signs of a global economic slowdown, we significantly reduced our exposure to late cyclicals and increased the Portfolio’s defensive characteristics by adding to consumer staples and healthcare.

For much of the year, rising demand in emerging markets and a weak US dollar drove commodity prices higher. We had some big winners in coal (Alpha Natural Resources), oil services (Cameron International) and exploration and production (Range Resources, Southwestern Energy). In the materials sector, our biggest winners were in metals (Cleveland-Cliffs) and fertilizer (CF Industries). All of these strong performers were sold except Range Resources.

No sector in the Fund or Benchmark generated positive absolute returns for the period. For the most part, the least negative sectors were the most defensive: healthcare and consumer staples. Technology and financial services represented the largest detractors to absolute performance. The technology sector experienced across-the-board weakness stemming from earnings disappointments and/

or lowered guidance, combined with compression in the P/E multiple among high P/E stocks. In financial services, we had minimal exposure to banks, but experienced losses in companies exposed to the capital markets.

OUTLOOK

The equity and credit markets are facing unprecedented challenges. The freezing of liquidity and credit quality and the failure or near-failure of several financial institutions in the United States and Europe created a crisis of confidence not seen in decades. The Federal Reserve Board, US Treasury, Congress and governments worldwide recognize what must be accomplished and are working to restore liquidity and confidence. Furthermore, large equity infusions from private investors are beginning to appear.

With the recent sell-off, the market may have discounted expectations for slower economic growth and lower earnings, and the ingredients for a market bottom seem to be falling into place. We believe negative news on consumer spending, home prices and unemployment is likely to continue, but the market is forward-looking and we think it will begin to discount a brighter future well before there are any concrete signs of improvement.

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AVERAGE ANNUAL TOTAL RETURNS

Periods Ended September 30, 2008

1 Year		5 Years		10 Years		Since Inception
Loomis Sayles Mid Cap Growth: Institutional
-21.12	%	9.88	%	8.64	%	8.36	%
Loomis Sayles Mid Cap Growth: Retail
-21.27		9.61		8.35		8.08
Russell Midcap Growth Index(c)
-24.65		6.53		5.51		5.86
Lipper Mid-Cap Growth Funds Index(c)
-24.16		7.23		6.01		5.07

Gross expense ratio (before reductions and reimbursements)*
Institutional: 1.10%	Retail: 1.43%
Net expense ratio (after reductions and reimbursements)*
Institutional: 1.00%	Retail: 1.25%

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE

Inception to September 30, 2008^(a)(b)

Data quoted reflects past performance and cannot guarantee future results. Average annual total returns assume reinvestment of dividends and capital gain 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 the Loomis Sayles website. 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 7 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 US 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.

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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

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. Unlike the Index, the Fund may invest in companies of any size

Fund Inception Date | 12/31/96

Total Net Assets | $124.4 million

PORTFOLIO REVIEW

The Fund slightly underperformed its Benchmark, the Russell 2000 Growth Index, for the fiscal year ended September 30, 2008, primarily due to stock selection in the energy and financial services sectors. The stocks we selected in technology and utilities performed well for the Fund, but not enough to offset poor performance in energy and financial services.

In light of high market volatility, we sought to limit

the Fund’s risk by reducing exposure to the technology, financial services and consumer discretionary sectors. In technology, we trimmed semiconductors, an industry that was experiencing a cyclical slowdown. In financial services, we exited companies exposed to the ongoing credit crisis, and as economic growth prospects dwindled, we reduced the Fund’s consumer discretionary weighting.

On an absolute basis, technology was the largest detractor, followed by consumer discretionary, financial services and energy. Within the financial services sector, Aircastle, an airline leasing company, and National Financial Partners, a financial planning company, experienced earnings shortfalls and both were sold early in the period. The Fund’s position in eHealth declined even though the company’s results met expectations. Investors were hoping for better performance from this internet-based health insurance company. We sold the stock in July. In the energy sector, declining global commodity markets put pricing pressure on many companies, including Mitcham Industries, a seismic equipment leasing company, and Exterran Holdings, which provides oil and gas production and processing facilities worldwide. We sold the stock late in the period.

The only sector that made a positive contribution to absolute performance was consumer staples. Within the sector our selections included bakery company Flowers Foods, which was one of the top-performing stocks during the period, due to strong revenue and earnings growth and its sound expansion strategy. Our position in Petrohawk Energy Corp., an oil and gas exploration and production company, was the Fund’s best-performing stock. Shares spiked after reporting positive natural gas output from a new well and we sold the stock.

OUTLOOK

The equity and credit markets are facing unprecedented challenges. The freezing of liquidity and credit quality and the failure or near-failure of several financial institutions in the United States and Europe created a crisis of confidence not seen in decades. The Federal Reserve Board, US Treasury, Congress and governments worldwide recognize what must be accomplished and are working to restore liquidity and confidence. Furthermore, large equity infusions from private investors are beginning to appear.

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With the recent sell-off, the market may have discounted expectations for slower economic growth and lower earnings, and the ingredients for a market bottom seem to be falling into place. We believe negative news on consumer spending, home prices and unemployment is likely to continue, but the market is forward-looking and we think it will begin to discount a brighter future well before there are any concrete signs of improvement.

AVERAGE ANNUAL TOTAL RETURNS

Periods ended September 30, 2008

1 Year		5 Years		10 Years		Since Inception
Loomis Sayles Small Cap Growth: Institutional
-17.64	%	8.76	%	3.53	%	3.32	%
Loomis Sayles Small Cap Growth: Retail
-17.86		8.47		3.27		3.06
Russell 2000 Growth Index(c)
-17.07		6.64		4.67		3.27
Russell 2000 Index(c)
-14.48		8.15		7.81		6.83
Lipper Small-Cap Growth Funds Index(c)
-23.85		4.42		6.32		4.49
Gross expense ratio (before reductions and reimbursements)*
Institutional: 1.23%				Retail: 1.50%
Net expense ratio (after reductions and reimbursements)*
Institutional: 1.00%				Retail: 1.25%

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE

Inception to September 30, 2008^(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 the Loomis Sayles website. 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 7 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 US 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.

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FUND AND MANAGER REVIEW

Loomis Sayles Small Cap Value Fund

Joseph Gatz, CFA

Manager since January 2000

Daniel Thelen, CFA

Manager since April 2000

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. 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 | $1,095.6 million

PORTFOLIO REVIEW

The Fund underperformed its Benchmark, the Russell 2000 Value Index, for the fiscal year ended September 30, 2008, primarily due to stock selection in the energy and financial services sectors.

Our weakest sector during the fiscal year was financial services, which represented the most heavily weighted sector within the Benchmark and which declined over 17% during the period. Weakness in financial services was driven by continued deterioration in credit trends within the banking industry and highly risk-averse behavior on the part of lenders, which resulted in a lack of liquidity throughout the credit markets. In addition, certain financial services holdings disappointed from a fundamental perspective. National Financial Partners, a distributor of financial services products to small- and medium-sized businesses and individuals, reported a shortfall to organic growth and was eliminated from the Portfolio in March 2008. Advanta Corp., a provider of credit cards and related products to small- and medium-sized businesses, sold off sharply on concerns over increasing losses as a result of deteriorating credit trends throughout the US economy. We shared those concerns and exited our position during the fourth quarter of 2007.

Consumer discretionary stocks were also weak during the period, as housing prices fell, employment trends worsened and food and gasoline prices moved higher. While our consumer stocks declined during the period, our strategy of seeking out company-specific catalysts resulted in favorable stock selection, which offset some of the impact of sector weakness. These negative trends were also partially offset by timely additions to “early-cycle” transportation stocks, such as Ryder System, Inc. and Hub Group, Inc. late in 2007, as well as an increase in the Fund’s healthcare weighting. Healthcare proved resilient from overall market weakness. The Fund’s two best- performing healthcare holdings were Perrigo Co., a manufacturer of store-brand, over-the-counter pharmaceuticals; and Atlanta-based Sciele Pharma, a branded pharmaceutical company that was acquired by a Japanese drug manufacturer at a substantial premium. The Fund’s top performers in consumer staples included Ralcorp Holdings, a private label cereal manufacturer; and Spartan Stores, a Midwestern grocery and food distribution chain.

As US and global economic growth prospects deteriorated throughout the period, we adopted a somewhat more defensive posture for the Fund, increasing its weighting in healthcare and reducing positions in producer durables and technology. We also increased the Fund’s weighting in consumer discretionary stocks; this sector has often been early in discounting economic recoveries.

OUTLOOK

In these volatile markets—with fundamental challenges in the banking industry, capital markets and the global economy—the importance of a steady, time-tested investment strategy has never been greater. While in recent months the markets have seemed to act irrationally at times, our team is committed to understanding risks and unearthing opportunities in the current market while balancing capital preservation and long term capital gain

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prospects. Our approach continues to emphasize bottom-up stock selection to drive performance, as opposed to sector rotation or asset allocation. Our focus remains on what appear to be fundamentally sound, small companies with valuations that we believe do not reflect fair value of the enterprise. In selecting stocks for the Fund, we look for companies with strong market niches, solid cash flow, balance sheet support, attractive valuations and a catalyst for improvement. Although we think economic news is likely to remain difficult for some time, stock prices are a discounting mechanism, and at some point we believe they will begin to anticipate restoration of stability in the capital markets and a resumption of economic growth. In the meantime, we will rely on our strategy to guide us through and we look forward to better markets ahead.

AVERAGE ANNUAL TOTAL RETURNS

Periods ended September 30, 2008

1 Year		5 Years		10 Years	Since Inception(a)(b)
Loomis Sayles Small Cap Value: Institutional
-15.02	%	10.07	%	10.63%	13.05%
Loomis Sayles Small Cap Value: Retail(a)
-15.21		9.79		10.35	12.85
Loomis Sayles Small Cap Value: Admin(a)
-15.44		9.51		10.06	12.50
Russell 2000 Value Index(c)
-12.25		9.45		10.14	12.50
Russell 2000 Index(c)
-14.48		8.15		7.81	9.77
Lipper Small-Cap Core Funds Index(b)(c)
-17.21		7.94		8.85	N/A

Gross expense ratio (before reductions and reimbursements)*
Institutional: 0.89%	Retail: 1.24%	Admin: 1.57%
Net expense ratio (after reductions and reimbursements)*
Institutional: 0.89%	Retail: 1.16%	Admin: 1.41%

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE

Inception to September 30, 2008^(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 the Loomis Sayles website. 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) Performance shown for periods prior to the inception date of the Retail Class (12/31/96) and Admin Class (1/02/98) represents the performance of the Institutional Class of shares during the periods shown, adjusted to reflect current levels of 12b-1 fees payable by the respective Classes. 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 7 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. Foreign investments involve special risks, including greater economic, political and currency fluctuation risks, which may be even greater in emerging markets. Foreign countries may have different accounting standards than US standards.

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 US 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.

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ADDITIONAL INFORMATION

Index Definitions

Indexes 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 Mid-Cap Growth Funds Index is an equally weighted index of typically the 30 largest mutual funds within the mid-cap growth funds investment objective.

Lipper Small-Cap Core Funds Index is an equally weighted index of typically the 30 largest mutual funds within the small-cap core funds investment objective.

Lipper Small-Cap Growth Funds Index is an equally weighted index of typically the 30 largest mutual funds within the small-cap growth funds investment objective.

Source: Lipper, Inc.

Russell Midcap Growth Index is a market capitalization weighted index of medium capitalization stocks determined by Russell to be growth stocks as measured by their price-to-book ratios and forecasted growth values. The stocks are also members of the Russell 1000 Growth Index.

Russell 2000 Growth Index is an index comprised of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2000 Index is an index comprised of the 2,000 smallest companies in the Russell 3000 Index (a broad market index), representing approximately 8% of the Russell 3000 total market capitalization.

Russell 2000 Value Index is an index comprised of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

After-Tax Returns

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts or individual retirement accounts. Under certain circumstances, the addition of the tax benefits from capital losses resulting from redemptions may cause the return after taxes on distributions and sale of fund shares to be greater than the return after taxes on distributions or even the return before taxes.

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, 2008 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 April 1, 2008 through September 30, 2008. 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.

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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 Mid Cap Growth Fund

Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$   855.00	$4.64
Hypothetical (5% return before expenses)	$1,000.00	$1,020.00	$5.05
Retail Class
Actual	$1,000.00	$   854.40	$5.80
Hypothetical (5% return before expenses)	$1,000.00	$1,018.75	$6.31
*   Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.00% and 1.25% for the 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 366 (to reflect the half-year period).

Loomis Sayles Small Cap Growth Fund

Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$   977.60	$4.94
Hypothetical (5% return before expenses)	$1,000.00	$1,020.00	$5.05
Retail Class
Actual	$1,000.00	$   976.20	$6.18
Hypothetical (5% return before expenses)	$1,000.00	$1,018.75	$6.31
*   Expenses are equal to the Fund’s annualized expense ratio (after advisory 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 366 (to reflect the half-year period).

Loomis Sayles Small Cap Value Fund

Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$   985.20	$4.52
Hypothetical (5% return before expenses)	$1,000.00	$1,020.45	$4.60
Retail Class
Actual	$1,000.00	$   984.20	$5.70
Hypothetical (5% return before expenses)	$1,000.00	$1,019.25	$5.81
Admin Class
Actual	$1,000.00	$   983.00	$6.94
Hypothetical (5% return before expenses)	$1,000.00	$1,018.00	$7.06
*   Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 0.91%, 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 366 (to reflect the half-year period).

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BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

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

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

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

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

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

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

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

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

9

With respect to each Fund, the Board concluded that the Fund’s performance or other relevant factors supported the renewal of the Agreement relating to that Fund. In the case of each Fund that had performance that lagged that of a relevant peer group for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Funds’ Agreements. These factors varied from Fund to Fund, including that reductions in the Funds’ expense levels resulting from decreased expenses and/or increased assets were not yet fully reflected in the Funds’ performance results.

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

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

The costs of the services to be provided and profits to be realized by the Adviser and its affiliates from their respective relationships with the Funds. The Trustees considered the fees charged to the Funds for advisory services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and also by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Adviser to comparable accounts. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage mutual fund assets. In evaluating each Funds advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund. The Trustees considered that over the past several years, management had made recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense caps. They noted that all of the Loomis Sayles Funds in this report have expense caps in place, and they considered the amounts waived or reimbursed by the Adviser under these caps.

The Trustees also considered the compensation directly or indirectly received by the Adviser and its affiliates from their relationships with the Funds. The Trustees reviewed information provided by management as to the profitability of the Adviser and its affiliates’ relationships with the Funds, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management about the effect of distribution costs and Fund growth on Adviser profitability, including information regarding resources spent on distribution activities and the increase in net sales for the family of funds. When reviewing profitability, the Trustees also considered information about court cases in which adviser profitability was an issue, the performance of the relevant Funds, the expense levels of the Funds, and whether the Adviser had implemented breakpoints and/or expense caps with respect to such Funds.

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

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense waivers. The Trustees noted that each of the Funds was subject to expense caps. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Funds, as discussed above.

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

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

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

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

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

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

10

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Mid Cap Growth Fund

	Shares	Value (†)
COMMON STOCKS – 93.6% of Net Assets
Biotechnology – 4.4%
Alexion Pharmaceuticals, Inc.(b)(c)	45,054	$	1,770,622
Myriad Genetics, Inc.(b)(c)	41,167		2,670,915
Onyx Pharmaceuticals, Inc.(b)(c)	54,868		1,985,124
			6,426,661
Capital Markets – 1.7%
T. Rowe Price Group, Inc.(b)	46,683		2,507,344
Commercial Banks – 2.0%
SVB Financial Group(c)	51,729		2,996,144
Commercial Services & Supplies – 5.3%
Stericycle, Inc.(c)	91,839		5,410,235
Waste Connections, Inc.(c)	67,930		2,329,999
			7,740,234
Communications Equipment – 1.4%
Juniper Networks, Inc.(b)(c)	98,016		2,065,197
Diversified Consumer Services – 1.6%
New Oriental Education & Technology Group, Inc., Sponsored ADR(c)	36,348		2,334,996
Diversified Financial Services – 1.6%
Nasdaq OMX Group, Inc. (The)(c)	74,728		2,284,435
Electrical Equipment – 1.0%
First Solar, Inc.(c)	7,532		1,422,870
Electronic Equipment & Instruments – 2.1%
Mettler-Toledo International, Inc.(c)	31,996		3,135,608
Energy Equipment & Services – 1.5%
Core Laboratories N.V.(b)	21,550		2,183,446
Food & Staples Retailing – 2.3%
BJ’s Wholesale Club, Inc.(b)(c)	85,505		3,322,724
Food Products – 1.6%
H.J. Heinz Co.	48,333		2,415,200
Health Care Equipment & Supplies – 11.9%
C.R. Bard, Inc.(b)	33,288		3,158,032
IDEXX Laboratories, Inc.(b)(c)	64,257		3,521,283
Intuitive Surgical, Inc.(c)	10,450		2,518,241
Masimo Corp.(b)(c)	45,413		1,689,364
NuVasive, Inc.(b)(c)	62,090		3,062,900
Varian Medical Systems, Inc.(c)	60,431		3,452,423
			17,402,243
Hotels, Restaurants & Leisure – 1.0%
Yum! Brands, Inc.(b)	44,822		1,461,645
Household Products – 1.9%
Church & Dwight Co., Inc.	44,503		2,763,191
Internet Software & Services – 2.2%
Equinix, Inc.(b)(c)	30,263		2,102,068
Websense, Inc.(c)	50,877		1,137,101
			3,239,169

11

	Shares	Value (†)
COMMON STOCKS – continued
IT Services – 1.5%
MasterCard, Inc., Class A(b)	12,645	$	2,242,338
Life Sciences Tools & Services – 4.7%
Covance, Inc.(c)	25,555		2,259,317
Illumina, Inc.(c)	113,026		4,580,944
			6,840,261
Machinery – 1.9%
Wabtec Corp.	53,511		2,741,369
Multiline Retail – 3.0%
Dollar Tree, Inc.(c)	122,756		4,463,408
Oil, Gas & Consumable Fuels – 7.4%
Continental Resources, Inc.(b)(c)	61,970		2,431,083
Petrohawk Energy Corp.(c)	138,444		2,994,544
Range Resources Corp.	59,742		2,561,140
Whiting Petroleum Corp.(c)	39,271		2,798,451
			10,785,218
Personal Products – 3.5%
Alberto-Culver Co.	94,169		2,565,164
Avon Products, Inc.	60,962		2,534,190
			5,099,354
Road & Rail – 4.4%
J.B. Hunt Transport Services, Inc.	67,140		2,240,462
Kansas City Southern(b)(c)	94,065		4,172,723
			6,413,185
Software – 7.1%
Activision Blizzard, Inc.(c)	153,845		2,373,829
Ansys, Inc.(c)	42,013		1,591,032
Concur Technologies, Inc.(b)(c)	61,943		2,369,939
McAfee, Inc.(b)(c)	74,693		2,536,574
Solera Holdings, Inc.(c)	55,348		1,589,595
			10,460,969
Specialty Retail – 11.7%
Advance Auto Parts, Inc.	62,637		2,484,184
Aeropostale, Inc.(b)(c)	81,494		2,616,772
Buckle, Inc. (The)(b)	57,650		3,201,881
Guess?, Inc.	65,453		2,277,110
Ross Stores, Inc.	115,995		4,269,776
Urban Outfitters, Inc.(b)(c)	70,985		2,262,292
			17,112,015
Thrifts & Mortgage Finance – 1.5%
Hudson City Bancorp, Inc.	120,877		2,230,181
Trading Companies & Distributors – 1.7%
Fastenal Co.(b)	50,056		2,472,266
Wireless Telecommunication Services – 1.7%
American Tower Corp., Class A(c)	67,849		2,440,529
TOTAL COMMON STOCKS
(Identified Cost $148,324,626)			137,002,200

12

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Mid Cap Growth Fund – continued

	Shares/ Principal Amount		Value (†)
SHORT-TERM INVESTMENTS – 21.8%
State Street Navigator Securities Lending Prime Portfolio(d)		22,705,247	$	22,705,247
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $9,112,329 on 10/01/2008 collateralized by $9,500,000 Federal Home Loan Bank Discount Notes, Zero Coupon due 7/13/2009 valued at $9,298,125, including accrued interest (Note 2g Notes to Financial Statements)	$	9,112,000		9,112,000
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $31,817,247)				31,817,247
TOTAL INVESTMENTS – 115.4%
(Identified Cost $180,141,873)(a)				168,819,447
Other assets less liabilities—(15.4)%				(22,516,104)
NET ASSETS – 100.0%			$	146,303,343
(†)    See Note 2a of Notes to Financial Statements.
(a)    Federal Tax Information:
At September 30, 2008, the net unrealized depreciation on investments based on a cost of $180,443,243 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			$	1,762,223
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(13,386,019)
Net unrealized depreciation			$	(11,623,796)

(b) All or a portion of this security was on loan to brokers at September 30, 2008.

(c) Non-income producing security.

(d) Represents investment of securities lending collateral.

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

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)

Health Care Equipment & Supplies	11.9	%
Specialty Retail	11.7
Oil, Gas & Consumable Fuels	7.4
Software	7.1
Commercial Services & Supplies	5.3
Life Sciences Tools & Services	4.7
Biotechnology	4.4
Road & Rail	4.4
Personal Products	3.5
Multiline Retail	3.0
Food & Staples Retailing	2.3
Internet Software & Services	2.2
Electronic Equipment & Instruments	2.1
Commercial Banks	2.0
Other Investments, less than 2% each	21.6
Short-Term Investments	21.8
Total Investments	115.4
Other assets less liabilities	(15.4	)
Net Assets	100.0	%

See accompanying notes to financial statements.

13

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Growth Fund

	Shares	Value (†)
COMMON STOCKS – 97.8% of Net Assets
Aerospace & Defense – 3.1%
Curtiss-Wright Corp.(b)	29,192	$	1,326,776
Moog, Inc., Class A(b)(c)	24,085		1,032,765
Orbital Sciences Corp.(c)	59,926		1,436,426
			3,795,967
Biotechnology – 2.9%
BioMarin Pharmaceutical, Inc.(b)(c)	32,188		852,660
Isis Pharmaceuticals, Inc.(b)(c)	51,044		862,133
Rigel Pharmaceuticals, Inc.(b)(c)	41,462		968,138
United Therapeutics Corp.(b)(c)	8,992		945,689
			3,628,620
Capital Markets – 1.1%
Stifel Financial Corp.(b)(c)	27,832		1,388,817
Commercial Banks – 2.3%
PrivateBankcorp, Inc.(b)	25,892		1,078,661
Signature Bank(c)	24,523		855,362
Westamerica Bancorporation(b)	15,272		878,598
			2,812,621
Commercial Services & Supplies – 9.4%
Clean Harbors, Inc.(b)(c)	23,450		1,584,047
FTI Consulting, Inc.(c)	22,966		1,659,064
Geo Group, Inc. (The)(b)(c)	59,324		1,198,938
Hill International, Inc.(c)	87,150		1,207,028
ICF International, Inc.(b)(c)	85,065		1,680,034
Innerworkings, Inc.(b)(c)	100,054		1,109,599
Team, Inc.(b)(c)	41,082		1,483,882
Waste Connections, Inc.(b)(c)	52,371		1,796,325
			11,718,917
Communications Equipment – 2.9%
Brocade Communications Systems, Inc.(c)	124,997		727,482
DG FastChannel, Inc.(b)(c)	71,034		1,557,065
Foundry Networks, Inc.(c)	75,722		1,378,898
			3,663,445
Construction & Engineering – 1.9%
MasTec, Inc.(c)	66,152		879,160
Northwest Pipe Co.(b)(c)	34,867		1,520,899
			2,400,059
Diversified Consumer Services – 2.8%
American Public Education, Inc.(b)(c)	25,112		1,212,407
Capella Education Co.(b)(c)	19,845		850,557
DeVry, Inc.	28,257		1,399,852
			3,462,816
Diversified Financial Services – 0.6%
Heckmann Corp.(b)(c)	90,457		746,270
Diversified Telecommunication Services – 1.3%
NTELOS Holdings Corp.	58,662		1,577,421
Electric Utilities – 1.1%
ITC Holdings Corp.	27,151		1,405,607

14

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Growth Fund – continued

	Shares	Value (†)
COMMON STOCKS – continued
Electrical Equipment – 1.6%
Energy Conversion Devices, Inc.(c)	13,093	$	762,667
Woodward Governor Co.(b)	35,899		1,266,158
			2,028,825
Electronic Equipment & Instruments – 1.2%
IPG Photonics Corp.(b)(c)	78,253		1,526,716
Energy Equipment & Services – 3.4%
Hornbeck Offshore Services, Inc.(b)(c)	28,596		1,104,377
IHS, Inc., Class A(b)(c)	24,896		1,186,045
Mitcham Industries, Inc.(b)(c)	35,907		362,302
T-3 Energy Services, Inc.(c)	21,071		782,156
Tesco Corp.(b)(c)	39,251		821,916
			4,256,796
Food Products – 2.1%
Flowers Foods, Inc.(b)	47,230		1,386,673
Green Mountain Coffee Roasters, Inc.(b)(c)	29,861		1,174,732
			2,561,405
Health Care Equipment & Supplies – 6.7%
Insulet Corp.(b)(c)	60,793		846,238
Masimo Corp.(b)(c)	34,247		1,273,988
Natus Medical, Inc.(b)(c)	67,580		1,531,363
NuVasive, Inc.(b)(c)	22,592		1,114,463
Quidel Corp.(c)	63,682		1,045,022
RTI Biologics, Inc.(b)(c)	133,599		1,249,151
SonoSite, Inc.(c)	39,087		1,227,332
			8,287,557
Health Care Providers & Services – 7.7%
athenahealth, Inc.(c)	31,690		1,054,326
Bio-Reference Labs, Inc.(c)	47,342		1,368,184
CardioNet, Inc.(b)(c)	49,577		1,237,442
Catalyst Health Solutions, Inc.(c)	46,263		1,208,390
Gentiva Health Services, Inc.(c)	35,900		967,146
MWI Veterinary Supply, Inc.(b)(c)	35,180		1,382,222
Psychiatric Solutions, Inc.(b)(c)	28,788		1,092,505
Sun Healthcare Group, Inc.(c)	89,538		1,312,627
			9,622,842
Health Care Technology – 1.4%
Phase Forward, Inc.(b)(c)	81,879		1,712,090
Hotels, Restaurants & Leisure – 1.7%
Buffalo Wild Wings, Inc.(b)(c)	26,362		1,060,807
Panera Bread Co., Class A(b)(c)	19,753		1,005,428
			2,066,235
Insurance – 1.4%
AmTrust Financial Services, Inc.(b)	69,064		938,580
Arch Capital Group Ltd.(c)	11,714		855,473
			1,794,053
Internet Software & Services – 6.2%
Ariba, Inc.(b)(c)	141,661		2,001,670
Constant Contact, Inc.(b)(c)	70,291		1,199,867
SkillSoft PLC, ADR(c)	142,582		1,491,408

15

	Shares	Value (†)
COMMON STOCKS – continued
Internet Software & Services – continued
VistaPrint Ltd.(b)(c)	43,782	$	1,437,801
Vocus, Inc.(b)(c)	45,814		1,555,843
			7,686,589
IT Services – 0.8%
Syntel, Inc.(b)	42,244		1,034,978
Life Sciences Tools & Services – 3.3%
Icon PLC, Sponsored ADR(c)	35,804		1,369,503
Luminex Corp.(b)(c)	51,643		1,291,592
Parexel International Corp.(c)	50,329		1,442,429
			4,103,524
Machinery – 3.6%
Energy Recovery, Inc.(b)(c)	87,240		836,631
ESCO Technologies, Inc.(c)	15,845		763,254
Freightcar America, Inc.(b)	34,006		995,356
Kaydon Corp.(b)	24,666		1,111,450
Valmont Industries, Inc.(b)	9,128		754,794
			4,461,485
Media – 2.5%
Knology, Inc.(b)(c)	97,319		785,364
Morningstar, Inc.(b)(c)	21,559		1,195,878
RHI Entertainment, Inc.(c)	75,427		1,123,862
			3,105,104
Oil, Gas & Consumable Fuels – 4.2%
Arena Resources, Inc.(b)(c)	27,359		1,062,897
Comstock Resources, Inc.(c)	11,633		582,232
Foundation Coal Holdings, Inc.	22,281		792,758
Goodrich Petroleum Corp.(c)	21,730		947,211
Petroleum Development Corp.(b)(c)	19,088		846,934
Rex Energy Corp.(b)(c)	65,658		1,034,770
			5,266,802
Pharmaceuticals – 2.6%
Alpharma, Inc., Class A(b)(c)	19,081		703,898
Auxilium Pharmaceuticals, Inc.(c)	21,897		709,463
Eurand NV(b)(c)	51,836		941,342
Viropharma, Inc.(b)(c)	63,304		830,548
			3,185,251
REITs – 1.0%
BioMed Realty Trust, Inc.	45,409		1,201,068
Road & Rail – 0.9%
Kansas City Southern(b)(c)	24,446		1,084,425
Semiconductors & Semiconductor Equipment – 2.5%
Cavium Network, Inc.(b)(c)	64,411		906,907
Netlogic Microsystems, Inc.(b)(c)	43,302		1,309,452
Varian Semiconductor Equipment Associates, Inc.(b)(c)	36,434		915,222
			3,131,581
Software – 7.8%
Advent Software, Inc.(b)(c)	32,973		1,161,639
Blackbaud, Inc.	49,142		906,670

16

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Growth Fund – continued

	Shares		Value (†)
COMMON STOCKS – continued
Software – continued
Blackboard, Inc.(c)		40,021	$	1,612,446
Concur Technologies, Inc.(c)		22,305		853,389
Informatica Corp.(c)		91,111		1,183,532
NetScout Systems, Inc.(c)		81,175		863,702
Solera Holdings, Inc.(b)(c)		52,824		1,517,105
Tyler Technologies, Inc.(b)(c)		108,887		1,651,816
				9,750,299
Specialty Retail – 3.3%
Aeropostale, Inc.(b)(c)		39,091		1,255,212
Buckle, Inc. (The)(b)		20,272		1,125,907
Gymboree Corp.(c)		28,430		1,009,265
Ulta Salon, Cosmetics & Fragrance, Inc.(c)		49,347		655,328
				4,045,712
Textiles, Apparel & Luxury Goods – 0.9%
True Religion Apparel, Inc.(b)(c)		41,962		1,084,718
Trading Companies & Distributors – 0.7%
DXP Enterprises, Inc.(c)		16,675		888,944
Wireless Telecommunication Services – 0.9%
SBA Communications Corp., Class A(c)		43,635		1,128,837
TOTAL COMMON STOCKS
(Identified Cost $124,156,478)				121,616,396
	Shares/ Principal Amount
SHORT-TERM INVESTMENTS – 21.1%
State Street Navigator Securities Lending Prime Portfolio(d)		22,691,148		22,691,148
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/08 at 1.300% to be repurchased at $3,593,130 on 10/01/08 collateralized by $3,605,000 Federal National Mortgage Association, 4.330% due 7/28/11 valued at $3,668,088 including accrued interest (Note 2g of Notes to Financial Statements)	$	3,593,000		3,593,000
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $26,284,148)				26,284,148
TOTAL INVESTMENTS – 118.9%
(Identified Cost $150,440,626)(a)				147,900,544
Other assets less liabilities—(18.9)%				(23,463,444)
NET ASSETS – 100.0%			$	124,437,100
(†)    See Note 2a of Notes to Financial Statements.
(a)    Federal Tax Information:
At September 30, 2008, the net unrealized depreciation on investments based on a cost of $150,467,126 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			$	7,763,399
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(10,329,981)
Net unrealized depreciation			$	(2,566,582)

(b) All or a portion of this security was on loan to brokers at September 30, 2008.

(c) Non-income producing security.

(d) Represents investments of security lending collateral.

17

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

REITs Real Estate Investment Trusts

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)

Commercial Services & Supplies	9.4	%
Software	7.8
Health Care Providers & Services	7.7
Health Care Equipment & Supplies	6.7
Internet Software & Services	6.2
Oil, Gas & Consumable Fuels	4.2
Machinery	3.6
Energy Equipment & Services	3.4
Life Sciences Tools & Services	3.3
Specialty Retail	3.3
Aerospace & Defense	3.1
Communications Equipment	2.9
Biotechnology	2.9
Diversified Consumer Services	2.8
Pharmaceuticals	2.6
Semiconductors & Semiconductor Equipment	2.5
Media	2.5
Commercial Banks	2.3
Food Products	2.1
Other Investments, less than 2% each	18.5
Short-Term Investments	21.1
Total Investments	118.9
Other assets less liabilities	(18.9	)
Net Assets	100.0	%

See accompanying notes to financial statements.

18

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Value Fund

	Shares	Value (†)
COMMON STOCKS – 96.7% of Net Assets
Aerospace & Defense – 2.5%
Ducommun, Inc.	199,540	$	4,765,015
Moog, Inc., Class A(c)	214,056		9,178,721
Teledyne Technologies, Inc.(c)	230,897		13,198,073
			27,141,809
Air Freight & Logistics – 1.1%
Atlas Air Worldwide Holdings, Inc.(c)	132,540		5,342,687
Hub Group, Inc., Class A(c)	182,489		6,870,711
			12,213,398
Auto Components – 0.8%
Federal Mogul Corp.(b)(c)	239,496		3,005,675
Gentex Corp.(b)	235,448		3,366,906
Stoneridge, Inc.(b)(c)	207,161		2,330,561
			8,703,142
Building Products – 0.6%
Armstrong World Industries, Inc.(b)	220,314		6,367,075
Capital Markets – 1.9%
Investment Technology Group, Inc.(c)	188,844		5,746,523
JMP Group, Inc.(b)	161,713		840,908
Stifel Financial Corp.(b)(c)	282,127		14,078,137
			20,665,568
Chemicals – 2.6%
Cytec Industries, Inc.	112,465		4,376,013
Koppers Holdings, Inc.	119,827		4,482,728
LSB Industries, Inc.(c)	91,485		1,267,067
Minerals Technologies, Inc.	66,995		3,976,823
Solutia, Inc.(c)	597,275		8,361,850
Zep, Inc.(b)	314,590		5,549,368
			28,013,849
Commercial Banks – 7.9%
Bank of the Ozarks, Inc.(b)	383,177		10,345,779
Citizens Republic Bancorp, Inc.(b)	903,218		2,781,912
Comerica, Inc.(b)	163,603		5,364,542
CVB Financial Corp.(b)	428,949		5,962,391
Hancock Holding Co.(b)	171,626		8,752,926
IBERIABANK Corp.(b)	118,691		6,272,819
Old National Bancorp(b)	199,052		3,985,021
Pennsylvania Commerce Bancorp, Inc.(b)(c)	117,448		3,501,125
Prosperity Bancshares, Inc.(b)	277,785		9,441,912
Signature Bank(c)	281,675		9,824,824
Sterling Bancshares, Inc.	899,189		9,396,525
SVB Financial Group(c)	191,082		11,067,470
			86,697,246
Commercial Services & Supplies – 6.9%
ABM Industries, Inc.	391,160		8,542,934
American Ecology Corp.	244,373		6,761,801
Geo Group, Inc. (The)(b)(c)	373,256		7,543,504
McGrath Rentcorp	302,358		8,713,958
Rollins, Inc.	1,005,262		19,079,873
Standard Parking Corp.(b)(c)	584,334		12,983,901

19

	Shares	Value (†)
COMMON STOCKS – continued
Commercial Services & Supplies – continued
Waste Connections, Inc.(c)	342,932	$	11,762,568
			75,388,539
Communications Equipment – 2.5%
ADC Telecommunications, Inc.(b)(c)	437,163		3,694,027
ADTRAN, Inc.(b)	282,340		5,502,807
Anaren, Inc.(c)	169,861		1,724,089
CommScope, Inc.(b)(c)	289,303		10,021,456
Tekelec(b)(c)	459,368		6,426,558
			27,368,937
Computers & Peripherals – 1.0%
Intevac, Inc.(b)(c)	313,197		3,332,416
NCR Corp.(c)	130,848		2,885,198
Teradata Corp.(c)	251,165		4,897,718
			11,115,332
Construction & Engineering – 0.6%
Granite Construction, Inc.(b)	153,697		5,505,427
Layne Christensen Co.(c)	41,568		1,472,754
			6,978,181
Consumer Finance – 1.0%
Dollar Financial Corp.(b)(c)	438,239		6,744,498
World Acceptance Corp.(b)(c)	114,051		4,105,836
			10,850,334
Containers & Packaging – 1.6%
Greif, Inc., Class A	53,583		3,516,117
Myers Industries, Inc.(b)	538,926		6,795,857
Rock-Tenn Co., Class A	191,835		7,669,563
			17,981,537
Distributors – 0.1%
Core-Mark Holding Co., Inc.(b)(c)	61,813		1,544,707
Diversified Consumer Services – 0.4%
Hillenbrand, Inc.	221,283		4,461,065
Diversified Financial Services – 0.7%
PHH Corp.(c)	590,822		7,852,024
Electric Utilities – 2.5%
ALLETE, Inc.(b)	228,675		10,176,038
ITC Holdings Corp.(b)	147,590		7,640,734
Portland General Electric Co.(b)	425,252		10,061,462
			27,878,234
Electrical Equipment – 1.8%
Acuity Brands, Inc.(b)	118,589		4,952,277
General Cable Corp.(b)(c)	115,652		4,120,681
II-VI, Inc.(b)(c)	112,325		4,342,484
Polypore International, Inc.(b)(c)	313,468		6,742,697
			20,158,139
Electronic Equipment & Instruments – 2.5%
Anixter International, Inc.(b)(c)	46,485		2,766,322
Daktronics, Inc.(b)	226,280		3,769,825

20

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Value Fund – continued

	Shares	Value (†)
COMMON STOCKS – continued
Electronic Equipment & Instruments – continued
Littelfuse, Inc.(c)	325,708	$	9,683,299
Scansource, Inc.(b)(c)	255,453		7,354,492
Vishay Intertechnology, Inc.(c)	509,093		3,370,196
			26,944,134
Energy Equipment & Services – 2.7%
Dresser-Rand Group, Inc.(c)	234,984		7,394,946
Hornbeck Offshore Services, Inc.(b)(c)	180,436		6,968,438
Newpark Resources(c)	443,003		3,233,922
Oceaneering International, Inc.(c)	158,835		8,469,082
Superior Well Services, Inc.(b)(c)	149,034		3,772,051
			29,838,439
Food & Staples Retailing – 1.0%
Spartan Stores, Inc.	439,868		10,943,916
Food Products – 1.3%
J & J Snack Foods Corp.	161,455		5,474,939
Ralcorp Holdings, Inc.(b)(c)	131,864		8,888,952
			14,363,891
Gas Utilities – 1.8%
Energen Corp.	66,378		3,005,596
ONEOK, Inc.	32,345		1,112,668
UGI Corp.	613,180		15,807,780
			19,926,044
Health Care Equipment & Supplies – 1.9%
Hill-Rom Holdings, Inc.(b)	234,856		7,118,485
Medical Action Industries, Inc.(b)(c)	261,297		3,430,830
West Pharmaceutical Services, Inc.(b)	200,228		9,775,131
			20,324,446
Health Care Providers & Services – 3.6%
Amedisys, Inc.(b)(c)	150,106		7,305,659
CorVel Corp.(c)	199,528		5,708,496
Healthspring, Inc.(c)	206,960		4,379,274
inVentiv Health, Inc.(b)(c)	231,633		4,090,639
MWI Veterinary Supply, Inc.(b)(c)	109,983		4,321,232
Pediatrix Medical Group, Inc.(c)	96,907		5,225,225
Skilled Healthcare Group, Inc., Class A(c)	538,628		8,558,799
			39,589,324
Hotels, Restaurants & Leisure – 1.9%
Bob Evans Farms, Inc.(b)	241,742		6,597,139
Cosi, Inc.(b)(c)	1,371,708		2,702,265
Dover Downs Gaming & Entertainment, Inc.(b)	301,983		2,349,428
Penn National Gaming, Inc.(c)	208,457		5,538,702
Wyndham Worldwide Corp.	226,044		3,551,151
			20,738,685
Industrial Conglomerates – 0.8%
Teleflex, Inc.	142,341		9,037,230
Insurance – 4.3%
American Equity Investment Life Holding Co.(b)	106,407		798,053
American Physicians Capital, Inc.	109,698		4,643,516
Delphi Financial Group, Inc., Class A	162,971		4,569,707

21

	Shares	Value (†)
COMMON STOCKS – continued
Insurance – continued
Employers Holdings, Inc.	289,738	$	5,035,646
Fidelity National Financial, Inc., Class A(b)	217,876		3,202,777
HCC Insurance Holdings, Inc.	274,796		7,419,492
Navigators Group, Inc.(c)	116,894		6,779,852
ProAssurance Corp.(c)	109,522		6,133,232
RLI Corp.(b)	136,845		8,496,706
			47,078,981
Internet & Catalog Retail – 0.6%
HSN, Inc.(c)	550,266		6,058,429
Internet Software & Services – 0.5%
United Online, Inc.(b)	525,530		4,945,237
IT Services – 4.5%
Alliance Data Systems Corp.(c)	170,986		10,837,093
Broadridge Financial Solutions, Inc.	657,472		10,118,494
Lender Processing Services, Inc.	262,910		8,024,013
Perot Systems Corp., Class A(c)	465,246		8,072,018
Wright Express Corp.(b)(c)	405,536		12,105,250
			49,156,868
Leisure Equipment & Products – 0.4%
Steinway Musical Instruments, Inc.(b)(c)	171,934		4,869,171
Life Sciences Tools & Services – 1.0%
PerkinElmer, Inc.	273,638		6,832,741
Varian, Inc.(c)	103,764		4,451,475
			11,284,216
Machinery – 3.2%
Actuant Corp., Class A(b)	294,943		7,444,361
Altra Holdings, Inc.(c)	319,028		4,708,853
CLARCOR, Inc.(b)	115,232		4,373,055
Commercial Vehicle Group, Inc.(b)(c)	29,381		208,899
John Bean Technologies Corp.(c)	444,933		5,632,852
RBC Bearings, Inc.(c)	194,903		6,566,282
Wabtec Corp.	111,584		5,716,448
			34,650,750
Media – 2.4%
A H Belo Corp., Class A(b)	233,331		1,203,988
Alloy, Inc.(c)	244,628		1,890,975
Interactive Data Corp.	387,591		9,775,045
John Wiley & Sons, Inc. Class A	325,934		13,184,030
			26,054,038
Metals & Mining – 0.9%
Haynes International, Inc.(b)(c)	82,724		3,873,965
Reliance Steel & Aluminum Co.(b)	146,038		5,545,063
			9,419,028
Multi-Utilities & Unregulated Power – 0.4%
NorthWestern Corp.	193,268		4,856,825
Multiline Retail – 0.6%
Dollar Tree, Inc.(c)	178,125		6,476,625

22

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Value Fund – continued

	Shares	Value (†)
COMMON STOCKS – continued
Oil, Gas & Consumable Fuels – 2.3%
Mariner Energy, Inc.(c)	353,552	$	7,247,816
Penn Virginia Corp.	197,229		10,539,918
St. Mary Land & Exploration Co.	116,800		4,163,920
Venoco, Inc.(b)(c)	224,274		2,915,562
			24,867,216
Personal Products – 0.8%
Alberto-Culver Co.	338,097		9,209,762
Pharmaceuticals – 2.0%
Endo Pharmaceuticals Holdings, Inc.(c)	285,227		5,704,540
Obagi Medical Products, Inc.(c)	458,289		4,573,724
Perrigo Co.(b)	312,305		12,011,251
			22,289,515
Professional Services – 0.0%
Duff & Phelps Corp., Class A(c)	21,896		460,473
Real Estate Management & Development – 0.6%
Forestar Real Estate Group, Inc.(b)(c)	451,535		6,660,141
REITs – 4.5%
American Campus Communities, Inc.	192,347		6,516,716
Capstead Mortgage Corp.	673,066		7,370,073
Digital Realty Trust, Inc.(b)	168,396		7,956,711
Health Care REIT, Inc.	222,382		11,837,394
Kite Realty Group Trust(b)	262,801		2,890,811
Potlatch Corp.	273,634		12,693,881
			49,265,586
Road & Rail – 2.2%
Con-way, Inc.(b)	167,355		7,382,029
Genesee & Wyoming, Inc., Class A(c)	207,868		7,799,207
Ryder System, Inc.(b)	135,440		8,397,280
			23,578,516
Semiconductors & Semiconductor Equipment – 2.3%
Cohu, Inc.(b)	230,704		3,649,737
Diodes, Inc.(b)(c)	248,509		4,584,991
ON Semiconductor Corp.(c)	772,119		5,219,525
Semtech Corp.(c)	216,006		3,015,444
Verigy Ltd.(c)	518,047		8,433,805
			24,903,502
Software – 2.7%
Mentor Graphics Corp.(b)(c)	517,448		5,873,035
Progress Software Corp.(c)	330,751		8,596,218
Quest Software, Inc.(c)	420,079		5,330,803
Radiant Systems, Inc.(c)	296,779		2,579,010
Sybase, Inc.(c)	240,639		7,368,366
			29,747,432
Specialty Retail – 2.7%
Genesco, Inc.(b)(c)	315,877		10,575,562
Jo-Ann Stores, Inc.(b)(c)	200,926		4,215,427
RadioShack Corp.	316,154		5,463,141
Sally Beauty Holdings, Inc.(b)(c)	1,121,911		9,648,435
			29,902,565

23

	Shares		Value (†)
COMMON STOCKS – continued
Textiles, Apparel & Luxury Goods – 2.0%
Carter’s, Inc.(c)		297,508	$	5,869,833
FGX International Holdings Ltd.(b)(c)		275,446		3,049,187
Fossil, Inc.(b)(c)		220,980		6,238,265
Hanesbrands, Inc.(b)(c)		300,501		6,535,897
				21,693,182
Thrifts & Mortgage Finance – 0.9%
Beneficial Mutual Bancorp, Inc.(b)(c)		480,075		6,072,949
Westfield Financial, Inc.(b)		384,086		3,956,086
				10,029,035
Water Utilities – 0.9%
American States Water Co.(b)		122,345		4,710,282
Middlesex Water Co.(b)		270,987		4,734,143
				9,444,425
TOTAL COMMON STOCKS
(Identified Cost $1,034,835,389)				1,059,986,743
EXCHANGE TRADED FUND – 1.0%
Diversified Financial Services – 1.0%
iShares Russell 2000 Value Index Fund(b)
(Identified Cost $10,504,021)		166,444		11,191,695
	Shares/ Principal Amount
SHORT-TERM INVESTMENTS – 22.9%
State Street Navigator Securities Lending Prime Portfolio(d)		195,864,078		195,864,078
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $54,488,968 on 10/01/2008 collateralized by $54,625,000 Federal National Mortgage Association, 4.330% due 7/28/2011 with a value of $55,580,938 including accrued interest (Note 2g of Notes to Financial Statements)	$	54,487,000		54,487,000
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $250,351,078)				250,351,078
TOTAL INVESTMENTS – 120.6%
(Identified Cost $1,295,690,488)(a)				1,321,529,516
Other assets less liabilities—(20.6)%				(225,880,689)
NET ASSETS – 100.0%			$	1,095,648,827
(†)     See Note 2a of Notes to Financial Statements.
(a)    Federal Tax Information:
At September 30, 2008, the net unrealized appreciation on investments based on a cost of $1,297,881,270 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			$	107,220,862
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(83,572,616)
Net unrealized appreciation			$	23,648,246

(b) All or a portion of this security was on loan to brokers at September 30, 2008.

(c) Non-income producing security.

24

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Value Fund – continued

(d) Represents investment of securities lending collateral.

REITs Real Estate Investment Trusts

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)

Commercial Banks	7.9	%
Commercial Services & Supplies	6.9
REITs	4.5
IT Services	4.5
Insurance	4.3
Health Care Providers & Services	3.6
Machinery	3.2
Specialty Retail	2.7
Energy Equipment & Services	2.7
Software	2.7
Chemicals	2.6
Electric Utilities	2.5
Communications Equipment	2.5
Aerospace & Defense	2.5
Electronic Equipment & Instruments	2.5
Media	2.4
Semiconductors & Semiconductor Equipment	2.3
Oil, Gas & Consumable Fuels	2.3
Road & Rail	2.2
Pharmaceuticals	2.0
Textiles, Apparel & Luxury Goods	2.0
Other Investments, less than 2% each	28.9
Short-Term Investments	22.9
Total Investments	120.6
Other assets less liabilities	(20.6	)
Net Assets	100.0	%

See accompanying notes to financial statements.

25

STATEMENTS OF ASSETS AND LIABILITIES

September 30, 2008

	Mid Cap Growth Fund			Small Cap Growth Fund			Small Cap Value Fund
Assets
Investments at cost	$	180,141,873		$	150,440,626		$	1,295,690,488
Net unrealized appreciation (depreciation)		(11,322,426	)		(2,540,082	)		25,839,028
Investments at value		168,819,447			147,900,544			1,321,529,516
Cash		182			2,296			105,664
Receivable for Fund shares sold		466,881			328,689			6,670,686
Receivable for securities sold		3,200,961			1,225,292			13,521,237
Dividends and interest receivable		56,298			34,679			1,128,754
Receivable from investment adviser (Note 4)		32,715			36,159			101,061
Securities lending income receivable		15,033			24,412			98,283
Total Assets		172,591,517			149,552,071			1,343,155,201
Liabilities
Collateral on securities loaned, at value (Note 2)		22,705,247			22,691,148			195,864,078
Payable for securities purchased		1,109,286			1,795,490			32,928,331
Payable for Fund shares redeemed		2,267,241			435,529			17,697,226
Management fees payable (Note 4)		111,530			81,329			714,720
Administrative fees payable (Note 4)		7,000			5,103			44,860
Deferred Trustees’ fees (Note 4)		42,576			40,103			113,489
Service and distribution fees payable (Note 4)		820			536			4,225
Other accounts payable and accrued expenses		44,474			65,733			139,445
Total Liabilities		26,288,174			25,114,971			247,506,374
Net Assets	$	146,303,343		$	124,437,100		$	1,095,648,827
Net Assets consist of:
Paid-in capital	$	262,590,406		$	332,005,808		$	1,117,571,112
Accumulated net investment income (loss)		(42,576	)		(40,103	)		1,842,018
Accumulated net realized loss on investments and foreign currency transactions		(104,922,061	)		(204,988,523	)		(49,603,331	)
Net unrealized appreciation (depreciation) on investments and foreign currency translations		(11,322,426	)		(2,540,082	)		25,839,028
Net Assets	$	146,303,343		$	124,437,100		$	1,095,648,827
Net Asset Value and Offering Price
Institutional Class
Net assets	$	25,779,418		$	44,540,086		$	553,268,333
Shares of beneficial interest		1,188,171			3,407,805			25,132,292
Net asset value, offering and redemption price per share	$	21.70		$	13.07		$	22.01
Retail Class
Net assets	$	120,523,925		$	79,897,014		$	464,525,207
Shares of beneficial interest		5,706,725			6,296,278			21,318,846
Net asset value, offering and redemption price per share	$	21.12		$	12.69		$	21.79
Admin Class
Net assets	$	—		$	—		$	77,855,287
Shares of beneficial interest		—			—			3,638,028
Net asset value, offering and redemption price per share	$	—		$	—		$	21.40
Value of securities on loan (Note 2)	$	22,615,127		$	22,689,377		$	197,462,353

See accompanying notes to financial statements.

26

STATEMENTS OF OPERATIONS

For the Year Ended September 30, 2008

	Mid Cap Growth Fund			Small Cap Growth Fund			Small Cap Value Fund
Investment Income
Dividends	$	469,227		$	221,760		$	12,128,483	*
Interest		160,344			102,730			980,421
Securities lending income (Note 2)		186,710			199,641			1,537,445
Less net foreign taxes withheld		(12,805	)		—			—
		803,476			524,131			14,646,349
Expenses
Management fees (Note 4)		909,027			726,130			8,053,932
Distribution fees—Retail Class (Note 4)		228,997			140,202			1,174,810
Service and distribution fees—Admin Class (Note 4)		—			—			395,796
Trustees’ fees and expenses (Note 4)		11,123			10,806			22,232
Administrative fees (Note 4)		61,279			49,032			546,547
Custodian fees and expenses		27,288			32,363			45,613
Transfer agent fees and expenses—Institutional Class (Note 4)		13,414			17,715			258,415
Transfer agent fees and expenses—Retail Class (Note 4)		102,699			114,743			812,511
Transfer agent fees and expenses—Admin Class (Note 4)		—			—			266,375
Audit and tax services fees		39,275			36,021			40,169
Registration fees		87,242			44,426			109,444
Shareholder reporting expenses		15,619			23,916			188,329
Legal fees		2,797			2,341			27,455
Expense recapture—Institutional Class (Note 4)		835			—			—
Miscellaneous expenses		8,185			7,606			45,736
Total expenses		1,507,780			1,205,301			11,987,364
Less fee reduction and/or expense reimbursement (Note 4)		(66,565	)		(96,890	)		(788,326	)
Net expenses		1,441,215			1,108,411			11,199,038
Net investment income (loss)		(637,739	)		(584,280	)		3,447,311
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net Realized Gain (Loss) on:
Investments		(16,802,159	)		(6,171,517	)		(37,271,375	)
Foreign currency transactions		166			—			—
Payments by affiliates (Note 4)		1,112			—			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		(24,348,722	)		(10,322,096	)		(141,209,963	)
Foreign currency translations		(109	)		—			—
Net realized and unrealized loss on investments and foreign currency transactions		(41,149,712	)		(16,493,613	)		(178,481,338	)
Net Decrease in Net Assets Resulting from Operations	$	(41,787,451	)	$	(17,077,893	)	$	(175,034,027	)

* Amount includes a special dividend of $926,046 in which the source of the dividend has not been determined by the issuer.

See accompanying notes to financial statements.

27

STATEMENTS OF CHANGES IN NET ASSETS

Mid Cap Growth Fund

	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment loss	$	(637,739	)	$	(288,083	)
Net realized gain (loss) on investments and foreign currency transactions		(16,800,881	)		7,015,246
Net change in net unrealized appreciation (depreciation) on investments and foreign currency translations		(24,348,831	)		8,067,259
Increase (decrease) in net assets from operations		(41,787,451	)		14,794,422
From Distributions to Shareholders:
Net Investment Income:
Institutional Class		—			—
Retail Class		—			—
Capital Gains:
Institutional Class		—			—
Retail Class		—			—
Total distributions		—			—
Increase (Decrease) in Net Assets Derived from Capital Shares Transactions (Note 8)		133,294,170			(4,132,735	)
Total increase in net assets		91,506,719			10,661,687
Net Assets
Beginning of year		54,796,624			44,134,937
End of year	$	146,303,343		$	54,796,624
Accumulated Net Investment Loss	$	(42,576	)	$	(38,169	)

Small Cap Growth Fund

	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment loss	$	(584,280	)	$	(143,375	)
Net realized gain (loss) on investments		(6,171,517	)		3,362,779
Net change in net unrealized appreciation (depreciation) on investments		(10,322,096	)		5,500,407
Increase (decrease) in net assets from operations		(17,077,893	)		8,719,811
From Distributions to Shareholders:
Net Investment Income:
Institutional Class		—			—
Retail Class		—			—
Capital Gains:
Institutional Class		—			—
Retail Class		—			—
Total distributions		—			—
Increase in Net Assets Derived from Capital Shares Transactions (Note 8)		92,473,941			16,896,224
Redemption Fees
Institutional Class		11,629			346
Retail Class		17,229			186
Total increase in net assets		75,424,906			25,616,567
Net Assets
Beginning of year		49,012,194			23,395,627
End of year	$	124,437,100		$	49,012,194
Accumulated Net Investment Loss	$	(40,103	)	$	(35,571	)

See accompanying notes to financial statements.

28

STATEMENTS OF CHANGES IN NET ASSETS – continued

Small Cap Value Fund

	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment income	$	3,447,311		$	2,636,586
Net realized gain (loss) on investments		(37,271,375	)		100,922,002
Net change in net unrealized appreciation (depreciation) on investments		(141,209,963	)		34,456,656
Increase (decrease) in net assets from operations		(175,034,027	)		138,015,244
From Distributions to Shareholders:
Net Investment Income:
Institutional Class		(1,132,960	)		(2,801,001	)
Retail Class		—			(1,058,622	)
Admin Class		—			(101,702	)
Capital Gains:
Institutional Class		(51,944,175	)		(50,563,842	)
Retail Class		(47,065,282	)		(32,749,822	)
Admin Class		(8,031,853	)		(7,983,100	)
Total distributions		(108,174,270	)		(95,258,089	)
Increase in Net Assets Derived from Capital Shares Transactions (Note 8)		302,201,210			235,053,214
Redemption Fees
Institutional Class		20,568			16,563
Retail Class		18,348			13,201
Admin Class		3,084			2,493
Total increase in net assets		19,034,913			277,842,626
Net Assets
Beginning of year		1,076,613,914			798,771,288
End of year	$	1,095,648,827		$	1,076,613,914
Accumulated Net Investment Income	$	1,842,018		$	334,317

See accompanying notes to financial statements.

29

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30

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 (loss)(c)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains
Mid Cap Growth Fund
Institutional Class
9/30/2008	$	27.51	$	(0.10	)	$	(5.71	)	$	(5.81	)	$	—		$	—
9/30/2007		20.13		(0.11	)(d)		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	)		—
9/30/2004		13.69		(0.13	)		1.94			1.81			—			—
Retail Class
9/30/2008	$	26.84	$	(0.15	)	$	(5.57	)	$	(5.72	)	$	—		$	—
9/30/2007		19.69		(0.16	)(d)		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	)		—
9/30/2004		13.46		(0.16	)		1.90			1.74			—			—

(a) 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.

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

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

(d) Includes a non-recurring payment of $0.02 per share.

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

(f) Includes expense recapture of less than 0.01%.

See accompanying notes to financial statements.

31

									Ratios to Average Net Assets:
Total distributions			Net asset value, end of the period		Total return (%)(a)		Net assets, end of the period (000’s)		Net expenses (%)(b)(e)		Gross expenses (%)(e)		Net investment income (loss) (%)(e)		Portfolio turnover rate (%)
$	—		$	21.70	(21.1	)	$	25,779	1.00	(f)	1.00	(f)	(0.36	)	299
	—			27.51	36.7			24,143	1.00		1.10		(0.47	)	194
	—			20.13	6.0			17,467	1.00		1.12		(0.49	)	211
	(0.18	)		19.00	23.9			26,159	1.00		1.21		(0.60	)	280
	—			15.50	13.2			25,191	1.00		1.17		(0.84	)	284
$	—		$	21.12	(21.3	)	$	120,524	1.25		1.32		(0.58	)	299
	—			26.84	36.3			30,654	1.25		1.43		(0.71	)	194
	—			19.69	5.7			26,668	1.25		1.52		(0.72	)	211
	(0.13	)		18.63	23.6			25,802	1.25		1.50		(0.85	)	280
	—			15.20	12.9			25,382	1.25		1.42		(1.10	)	284

See accompanying notes to financial statements.

32

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)(c)(d)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions
Small Cap Growth Fund
Institutional Class
9/30/2008	$	15.87	$	(0.07	)	$	(2.73	)	$	(2.80	)	$	—		$	—		$	—
9/30/2007		12.00		(0.06	)(f)		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			—			—			—
9/30/2004		8.59		(0.09	)		0.46			0.37			—			—			—
Retail Class
9/30/2008	$	15.45	$	(0.10	)	$	(2.66	)	$	(2.76	)	$	—		$	—		$	—
9/30/2007		11.71		(0.09	)(f)		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			—			—			—
9/30/2004		8.45		(0.11	)		0.44			0.33			—			—			—
Small Cap Value Fund
Institutional Class
9/30/2008	$	28.77	$	0.11	(i)	$	(4.03	)	$	(3.92	)	$	(0.06	)	$	(2.78	)	$	(2.84	)
9/30/2007		27.69		0.12	(f)(g)		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	)
9/30/2004		21.34		0.04			4.97			5.01			(0.05	)		(0.55	)		(0.60	)
Retail Class
9/30/2008	$	28.52	$	0.05	(i)	$	(4.00	)	$	(3.95	)	$	—		$	(2.78	)	$	(2.78	)
9/30/2007		27.46		0.04	(f)(g)		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	)
9/30/2004		21.25		(0.02	)		4.95			4.93			(0.01	)		(0.55	)		(0.56	)
Admin Class
9/30/2008	$	28.13	$	(0.01	)(i)	$	(3.94	)	$	(3.95	)	$	—		$	(2.78	)	$	(2.78	)
9/30/2007		27.14		(0.03	)(f)(g)		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	)
9/30/2004		21.13		(0.08	)		4.93			4.85			—			(0.55	)		(0.55	)

(a) 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.

(b) 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.

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

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

(e) Includes expense recapture of 0.02%.

(f) 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.

(g) Includes a non-recurring dividend of $0.05 per share.

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

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

See accompanying notes to financial statements.

33

								Ratios to Average Net Assets:
Redemption fees(d)		Net asset value, end of the period		Total return (%)(a)		Net assets, end of the period (000’s)		Net expenses (%)(b)(h)		Gross expenses (%)(h)		Net investment income (loss) (%)(h)		Portfolio turnover rate (%)
$	0.00	$	13.07	(17.6	)	$	44,540	1.00		1.01		(0.47	)	92
	0.00		15.87	32.3			28,088	1.00		1.23		(0.47	)	83
	0.01		12.00	8.3			20,414	1.00		1.38		(0.69	)	100
	0.00		11.08	23.7			15,785	1.00		1.70		(0.85	)	227
	0.00		8.96	4.3			15,867	1.00		1.31		(0.95	)	217
$	0.00	$	12.69	(17.9	)	$	79,897	1.25		1.42		(0.70	)	92
	0.00		15.45	31.9			20,924	1.25		1.50		(0.66	)	83
	0.01		11.71	8.0			2,981	1.25		1.92		(0.94	)	100
	0.00		10.84	23.5			3,592	1.25		1.87		(1.14	)	227
	0.00		8.78	3.9			14,589	1.25		1.52		(1.19	)	217
$	0.00	$	22.01	(15.0	)	$	553,268	0.89		0.89		0.47		61
	0.00		28.77	17.0			534,776	0.89		0.89		0.43		57
	0.00		27.69	11.2			442,714	0.89	(e)	0.89	(e)	0.47		62
	0.00		27.43	18.0			403,110	0.90		0.93		0.48		59
	0.00		25.75	23.8			346,356	0.90		0.93		0.16		70
$	0.00	$	21.79	(15.2	)	$	464,525	1.15		1.27		0.21		61
	0.00		28.52	16.7			465,055	1.15		1.24		0.15		57
	0.00		27.46	10.9			291,690	1.15		1.20		0.21		62
	0.00		27.23	17.7			235,948	1.15		1.20		0.24		59
	0.00		25.62	23.5			173,411	1.15		1.18		(0.08	)	70
$	0.00	$	21.40	(15.4	)	$	77,855	1.40		1.68		(0.04	)	61
	0.00		28.13	16.4			76,783	1.40		1.56		(0.10	)	57
	0.00		27.14	10.6			64,367	1.40		1.46		(0.04	)	62
	0.00		26.94	17.4			67,505	1.40		1.43		(0.01	)	59
	0.00		25.43	23.3			62,680	1.40		1.43		(0.33	)	70

See accompanying notes to financial statements.

34

NOTES TO FINANCIAL STATEMENTS

September 30, 2008

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. Information presented in these financial statements pertains to certain equity funds of the Trusts; the financial statements for the remaining equity funds and the fixed income 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 Mid Cap Growth Fund (the “Mid Cap Growth Fund”)

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 applicable to such class). In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of a fund if the fund were liquidated. The Trustees approve separate dividends from net investment income on each class of shares.

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

a.  Security Valuation. Equity securities, including closed-end investment companies and exchange-traded funds, for which market quotations are readily available are valued at market value, as reported by pricing services recommended by the investment adviser and 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. 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.

b.  Security Transactions and Related Investment Income. Security transactions are accounted for on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as the Fund is notified, and interest income is

35

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 the investment securities. Such changes are included with the net realized and unrealized gain or loss on investments.

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

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

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

d.  Forward Foreign Currency Contracts. 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 Fund’s Statement of Assets and Liabilities. The U.S. dollar value of the currencies a Fund has committed to buy or sell represents the aggregate exposure to each currency the Fund has acquired or hedged through currency contracts outstanding at period end.

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

e.  Federal and Foreign Income Taxes. Each Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of the Funds’ tax positions taken on federal and state tax returns that remain subject to examinations (tax years ended September 30, 2005-2008) and has concluded that no provisions for income tax are required. Fund management is not aware of any events that are reasonably possible to occur in the next twelve 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.

36

NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

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 distributions from REITs, foreign currency transactions 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, REIT basis 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 years ended September 30, 2008 and 2007 was as follows:

	2008 Distributions Paid From:						2007 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Mid Cap Growth Fund	$	—	$	—	$	—	$	—	$	—	$	—
Small Cap Growth Fund		—		—		—		—		—		—
Small Cap Value Fund		16,873,484		91,300,786		108,174,270		19,298,487		75,959,602		95,258,089

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

As of September 30, 2008, the components of distributable earnings on a tax basis were as follows:

	Mid Cap Growth Fund			Small Cap Growth Fund			Small Cap Value Fund
Undistributed ordinary income	$	—		$	—		$	1,955,507
Undistributed long-term capital gains		—			—			331,178
Total undistributed earnings		—			—			2,286,685
Capital Loss Carryforward:
Expires September 30, 2010		(65,130,772	)		(138,314,515	)		—
Expires September 30, 2011		(21,142,388	)		(59,283,040	)		—
Total capital loss carryforward		(86,273,160	)		(197,597,555	)		—
Deferred net capital losses (post-October 2007)		(18,347,531	)		(7,364,469	)		(47,743,728	)
Unrealized appreciation (depreciation)		(11,623,796	)		(2,566,582	)		23,648,246
Total accumulated earnings (losses)	$	(116,244,487	)	$	(207,528,606	)	$	(21,808,797	)
Capital loss carryforward utilized in the current year	$	1,847,474		$	1,209,729		$	—

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

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

37

lending agent. The value of securities on loan to borrowers and the value of collateral held by the Funds with respect to such loans at September 30, 2008 were as follows:

	Value of Securities on Loan		Value of Collateral
Mid Cap Growth Fund	$	22,615,127	$	22,705,247
Small Cap Growth Fund		22,689,377		22,691,148
Small Cap Value Fund		197,462,353		195,864,078

Subsequent to September 30, 2008, all open securities lending transactions were closed.

i.  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.

j.  New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management has evaluated the impact the adoption of FAS 157 will have on the Funds’ financial statements and believes that such impact will be limited to expanded disclosure in the Funds’ financial statements regarding inputs used in determining the value of the Funds’ investments.

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

3.Purchases and Sales of Securities. For the year ended September 30, 2008, purchases and sales of securities (excluding short-term investments) were as follows:

Fund	Purchases		Sales
Mid Cap Growth Fund	$	461,496,904	$	336,296,687
Small Cap Growth Fund		175,639,765		84,821,824
Small Cap Value Fund		860,871,284		625,425,569

4.  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
Mid Cap Growth Fund	0.75%
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 associated with the Funds to limit their operating expenses. These undertakings are in effect until January 31, 2009 and will be reevaluated on an annual basis. For the year ended September 30, 2008, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:

	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Institutional Class		Retail Class		Admin Class
Mid Cap Growth Fund	1.00	%	1.25	%	—
Small Cap Growth Fund	1.00	%	1.25	%	—
Small Cap Value Fund	0.90	%	1.15	%	1.40	%

38

NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

For the year ended September 30, 2008, the management fees for each Fund were as follows:

Fund	Management Fee		Percentage of Average Daily Net Assets
Mid Cap Growth Fund	$	909,027	0.75%
Small Cap Growth Fund		726,130	0.75%
Small Cap Value Fund		8,053,932	0.75%

For the year ended September 30, 2008, class specific expenses have been reimbursed as follows:

Fund	Reimbursement
Mid Cap Growth Fund	$	64,519
Small Cap Growth Fund		95,181
Small Cap Value Fund		767,446

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 fee/expense was reduced. The amounts subject to possible reimbursement under the expense limitation agreements at September 30, 2008 were as follows:

	Expenses Subject to Possible Reimbursement Until September 30, 2009
Fund	Institutional Class		Retail Class		Admin Class		Total
Mid Cap Growth Fund	$	—	$	64,519	$	—	$	64,519
Small Cap Growth Fund		2,492		92,689		—		95,181
Small Cap Value Fund		—		546,480		220,966		767,446

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.

For the year ended September 30, 2008, Loomis Sayles reimbursed the Mid Cap Growth Fund $1,112 for losses incurred in connection with a trading error.

b.  Administrative Fees. Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and subcontracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, 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 an annual fee of $75,000 plus $12,500 per class and an additional $75,000 if managed by multiple subadvisors in their first calendar year of operations.

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

Prior to July 1, 2008, the Funds paid Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0675% of the first $5 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0625% of the next $5 billion, 0.0500% of the next $20 billion and 0.045% of such assets in excess of $30 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $5 million, which was reevaluated on an annual basis. New funds were subject to an annual fee of $50,000 plus $12,500 per class and an additional $50,000 if managed by multiple subadvisors in their first calendar year of operations.

39

For the year ended September 30, 2008, amounts paid to Natixis Advisors for administrative fees were as follows:

Fund	Gross Administrative Fees		Waiver of Administrative Fees		Net Administrative Fees
Mid Cap Growth Fund	$	61,279	$	2,046	$	59,233
Small Cap Growth Fund		49,032		1,709		47,323
Small Cap Value Fund		546,547		20,880		525,667

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 each Fund.

Pursuant to Rule 12b-1 under the 1940 Act, the Mid Cap Growth Fund, the Small Cap Growth Fund and the Small Cap Value Fund have adopted a Distribution Plan relating to their Retail Class shares (the “Retail Class Plans”) and the Small Cap Value Fund has adopted a separate Distribution Plan relating to its Admin Class shares (the “Admin Class Plan”).

Under the respective Retail Class and Admin Class Plans, 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 Fund’s Retail Class and Admin Class Shares, as reimbursement for expenses incurred by Natixis Distributors in providing personal services to investors in Retail Class and Admin Class Shares and/or maintenance of shareholder accounts. In addition, the Admin Class shares of the Small Cap Value Fund may pay an administrative service fee, at an annual rate not to exceed 0.25% of the average daily net assets attributable to Admin Class shares, to securities dealers or financial intermediaries for providing personal service and account maintenance for their customers who hold such shares.

For the year ended September 30, 2008, the Funds paid the following service and distribution fees:

	Service Fees		Distribution Fees
Fund	Admin Class		Retail Class		Admin Class
Mid Cap Growth Fund	$	—	$	228,997	$	—
Small Cap Growth Fund		—		140,202		—
Small Cap Value Fund		197,898		1,174,810		197,898

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 intermediary (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 intermediary. Natixis Distributors pays the remainder of the fees. Listed below are the fees incurred by the Funds which are included in the transfer agent fees and expenses in the Statements of Operations.

	Sub-Transfer Agent Fees
Fund	Institutional Class		Retail Class		Admin Class
Mid Cap Growth Fund	$	10,845	$	100,391	$	—
Small Cap Growth Fund		16,844		51,624		—
Small Cap Value Fund		247,244		758,261		262,375

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. The Chairperson of the Board receives a retainer fee at the annual rate of $200,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $65,000. Each Independent Trustee also receives a meeting attendance fee of $7,500 for each meeting of the Board of Trustees that he or she attends in person and $3,750 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, each committee chair receives an additional retainer fee at the annual rate of $10,000. Each Contract Review and Governance Committee member is compensated $5,000 for each Committee meeting that

40

NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

he or she attends in person and $2,500 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,250 for each Committee meeting that he or she attends in person and $3,125 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each Fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2008, each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $55,000. Each Independent Trustee also received a meeting attendance fee of $6,000 for each meeting of the Board of Trustees that he or she attended in person and $3,000 for each meeting that he or she attended telephonically. In addition, each Contract Review and Governance Committee member received $4,000 for each committee meeting that he or she attended in person and $2,000 for each committee meeting that he or she attended telephonically. Each Audit Committee member received $5,000 for each committee meeting that he or she attended in person and $2,500 for each committee meeting that he or she attended telephonically. The Chairperson of the Board and committee chair retainers were $200,000 and $10,000, respectively.

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 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.

f.  Redemption Fees. Shareholders of Small Cap Growth Fund and Small Cap Value Fund are charged a 2% redemption fee if they redeem, including redeeming by exchange, any class of shares of such Funds within 60 days of their acquisition (including acquisition by exchange). The redemption fee is intended to offset the costs to the Funds of short-term trading, such as portfolio transaction and market impact costs associated with redemption activity and administrative costs associated with processing redemptions. The redemption fee is deducted from the shareholder’s redemption or exchange proceeds and is paid to the Fund.

The “first-in, first-out” method is used to determine the holding period of redeemed or exchanged shares, which means that if a shareholder acquired shares on different days, the shares acquired first will be redeemed or exchanged first for purposes of determining whether the redemption fee applies. A new holding period begins with each purchase or exchange. These fees are accounted for as an addition to paid-in capital and are presented in the Statements of Changes in Net Assets.

5.Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participates in a $200,000,000 committed line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each Fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.09% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

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

For the year ended September 30, 2008, the Funds had no borrowings under these agreements.

6.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 year ended September 30, 2008, amounts rebated under these agreements were as follows:

Fund	Rebates
Mid Cap Growth Fund	$	27,162
Small Cap Growth Fund		13,724
Small Cap Value Fund		117,277

7.Shareholders. At September 30, 2008, the Loomis Sayles Funded Pension Plan and the Loomis Sayles Employees’ Profit Sharing Retirement Plan held Institutional Class shares of beneficial interest in the Funds as follows:

Fund	Pension Plan	Profit Sharing Retirement Plan
Mid Cap Growth Fund	320,493	370,439
Small Cap Growth Fund	375,466	383,591
Small Cap Value Fund	366,402	733,101

41

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

	Mid Cap Growth Fund
	Year Ended September 30, 2008					Year Ended September 30, 2007
Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	835,746		$	23,099,020		122,987		$	2,932,877
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(525,115	)		(13,663,476	)	(113,087	)		(2,616,811	)
Net change	310,631		$	9,435,544		9,900		$	316,066
Retail Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	7,376,061		$	191,485,150		404,396		$	9,618,611
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(2,811,222	)		(67,626,524	)	(616,665	)		(14,067,412	)
Net change	4,564,839		$	123,858,626		(212,269	)	$	(4,448,801	)
Increase (decrease) from capital share transactions	4,875,470		$	133,294,170		(202,369	)	$	(4,132,735	)
	Small Cap Growth Fund
	Year Ended September 30, 2008					Year Ended September 30, 2007
Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	2,094,507		$	30,602,699		227,764		$	3,236,460
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(456,742	)		(6,441,388	)	(158,397	)		(2,160,742	)
Net change	1,637,765		$	24,161,311		69,367		$	1,075,718
Retail Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	6,898,095		$	94,809,730		1,247,066		$	17,800,763
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(1,956,386	)		(26,497,100	)	(147,091	)		(1,980,257	)
Net change	4,941,709		$	68,312,630		1,099,975		$	15,820,506
Increase (decrease) from capital share transactions	6,579,474		$	92,473,941		1,169,342		$	16,896,224

42

NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

	Small Cap Value Fund
	Year Ended September 30, 2008					Year Ended September 30, 2007
Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	9,681,674		$	228,728,526		3,665,690		$	103,476,796
Issued in connection with the reinvestment of distributions	1,942,239			49,352,283		1,908,336			50,494,585
Redeemed	(5,076,716	)		(120,789,687	)	(2,978,936	)		(83,598,708	)
Net change	6,547,197		$	157,291,122		2,595,090		$	70,372,673
Retail Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	10,268,147		$	242,357,595		9,567,844		$	267,672,472
Issued in connection with the reinvestment of distributions	1,850,508			46,632,804		1,279,692			33,617,503
Redeemed	(7,108,230	)		(166,486,060	)	(5,159,588	)		(145,568,951	)
Net change	5,010,425		$	122,504,339		5,687,948		$	155,721,024
Admin Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	2,168,929		$	51,105,918		1,317,587		$	35,992,658
Issued in connection with the reinvestment of distributions	271,955			6,747,215		292,721			7,599,049
Redeemed	(1,532,487	)		(35,447,384	)	(1,252,476	)		(34,632,190	)
Net change	908,397		$	22,405,749		357,832		$	8,959,517
Increase (decrease) from capital share transactions	12,466,019		$	302,201,210		8,640,870		$	235,053,214

43

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees of Loomis Sayles Funds I and Loomis Sayles Funds II and Shareholders of Loomis Sayles Small Cap Value Fund, Loomis Sayles Mid Cap Growth Fund, Loomis Sayles Small Cap Growth Fund:

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Small Cap Value Fund, a series of Loomis Sayles Funds I and the Loomis Sayles Mid Cap Growth Fund and Loomis Sayles Small Cap Growth Fund, each a series of Loomis Sayles Funds II (collectively, “the Funds”), at September 30, 2008, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2008

44

2008 U.S. TAX DISTRIBUTION INFORMATION TO SHAREHOLDERS (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2008, a percentage of dividends distributed by the Funds listed below qualify for the dividends received deduction for corporate shareholders. These percentages are as follows:

Fund	Qualifying Percentage
Small Cap Value Fund	34.45%

Capital Gains Distributions. Pursuant to Internal Revenue Section 852(b), the following Funds paid distributions, which have been designated as capital gains distributions for the fiscal year ended September 30, 2008.

Fund	Amount
Small Cap Value Fund	$	91,300,786

Qualified Dividend Income. For the fiscal year ended September 30, 2008, the Funds below will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 5% to 15% depending on an individual’s tax bracket. If the Funds pay a distribution during calendar year 2008, complete information will be reported in conjunction with Form 1099-DIV.

Fund

Mid Cap Growth Fund

Small Cap Growth Fund

Small Cap Value Fund

45

TRUSTEE AND OFFICER INFORMATION

The tables below provide certain information regarding the Trustees and officers of Loomis Sayles Funds I and Loomis Sayles Funds II (the “Trusts”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Trusts’ Statements of Additional Information include additional information about the Trustees of the Trusts and are available by calling Loomis Sayles at 800-343-2029.

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen*** and Other Directorships Held
Independent Trustees
Graham T. Allison, Jr. (1940)	Trustee Since 2003 Contract Review and Governance Committee Member	Douglas Dillon Professor and Director of the Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University	41 Director, Taubman Centers, Inc. (real estate investment trust)
Charles D. Baker (1956)	Trustee Since 2005 Contract Review and Governance Committee Member	President and Chief Executive Officer, Harvard Pilgrim Health Care (health plan)	41 None
Edward A. Benjamin (1938)	Trustee Since 2002 Chairman of the Contract Review and Governance Committee	Retired	41 None
Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Audit Committee	President and Chief Executive Officer, Cain Brothers & Company, Incorporated (investment banking)	41 Director, Sheridan Healthcare Inc. (physician practice management)
Kenneth A. Drucker (1945)	Trustee Since 2008 Contract Review and Governance Committee Member	Formerly, Treasurer, Sequa Corp. (manufacturing)	41 Director, M Fund, Inc. (registered investment company)
Jonathan P. Mason (1958)	Trustee Since 2007 Audit Committee Member	Chief Financial Officer, Cabot Corp. (specialty chemicals); formerly, Vice President and Treasurer, International Paper Company; formerly, Chief Financial Officer, Carter Holt Harvey (forest products)	41 None
Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee since 2003 Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting); formerly, Senior Vice President and Director, The Boston Consulting Group, Inc. (management consulting)	41 Director, Verizon Communications; Director, Rohm and Haas Company (specialty chemicals); Director, AES Corporation (international power company)

46

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen*** and Other Directorships Held
Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School; and formerly, Dean for Finance & Chief Financial Officer, Harvard Medical School	41 None
Interested Trustees
Robert J. Blanding1 (1947) 555 California Street San Francisco, CA 94104	President and Chief Executive Officer of Loomis Sayles Funds I and Chief Executive Officer of Loomis Sayles Funds II; Trustee since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	41 None
John T. Hailer2 (1960)	Trustee Since 2003	President and Chief Executive Officer-U.S. and Asia, Natixis Global Asset Management, L.P.; formerly, President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P., Natixis Distributors, L.P. and Natixis Global Associates, Inc.	41 None

* Each Trustee serves until retirement, resignation or removal from the Board of Trustees. The current retirement age is 72. The position of Chairperson of the Board is appointed for a two-year term. Ms. Moose was appointed to serve an additional two-year term as the Chairperson of the Board of Trustees on September 14, 2007.

** Each person listed above, except as noted, holds the same position(s) with the Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Gateway Trust and the Natixis Cash Management Trust (collectively, the “Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (collectively, the “Loomis Sayles Funds Trusts”), and Hansberger International Series. Previous positions during the past five years with Natixis Distributors, L.P. (the “Distributor”), Natixis Asset Management Advisors, L.P. (“Natixis Advisors”), or Loomis, Sayles & Company, L.P. are omitted if not materially different from a Trustee’s or officer’s current position with such entity.

*** The Trustees of the Trust serve as trustees of a fund complex that includes all series of the Natixis Funds Trusts, the Loomis Sayles Funds Trusts and Hansberger International Series (collectively, the “Fund Complex”).

1 Mr. Blanding is deemed an “interested person” of the Trust because he holds the following positions with affiliated persons of the Trust: President, Chairman, Director and Chief Executive Officer of Loomis, Sayles & Company, L.P.

2 Mr. Hailer is deemed an “interested person” of the Trust because he holds the following positions with affiliated persons of the Trust: President and Chief Executive Officer-U.S. and Asia, Natixis Global Asset Management, L.P.

47

Name and Year of Birth	Position(s) Held with the Trust	Term of Office* and Length of Time Served	Principal Occupation During Past 5 Years**
Officers of the Trust
Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk (formerly, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk), Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.
Daniel J. Fuss (1933) One Financial Center Boston, MA 02111	Executive Vice President	Since June 2003	Vice Chairman and Director, Loomis, Sayles & Company, L.P.
David Giunta (1965)	President of Loomis, Sayles Funds II and Executive Vice President of Loomis, Sayles Funds I	Since March 2008	President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; formerly, President, Fidelity Charitable Gift Fund; and formerly, Senior Vice President, Fidelity Brokerage Company
Russell L. Kane (1969)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Chief Compliance Officer since May 2006; Assistant Secretary since June 2004; and Anti-Money Laundering Officer since April 2007	Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; and formerly, Senior Counsel, Columbia Management Group
Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; and formerly, Senior Director, PFPC Inc.
Robert Krantz (1964)	Executive Vice President	Since September 2007	Executive Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.

* Each officer of the Trust serves for an indefinite term in accordance with the Trust’s current By-laws until the date his or her successor is elected and qualified, or until he or she sooner dies, retires, is removed or becomes disqualified.

** Each person listed above, except as noted, holds the same position(s) with the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series. Mr. Fuss is not an officer of the Natixis Funds Trusts or the Hansberger International Series. Previous positions during the past five years with the Distributor, Natixis Advisors or Loomis Sayles are omitted if not materially different from a Trustee’s or officer’s current position with such entity.

48

ANNUAL REPORT

September 30, 2008

Loomis Sayles Investment Grade Bond Fund

TABLE OF CONTENTS

Management Discussion and Performance page 1

Portfolio of Investments page 8

Financial Statements page 19

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

Steven Kaseta, CFA

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
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

Amid heightened turbulence in the capital markets, both investment-grade and high-yield corporate bonds were hit hard as risk-averse investors fled to higher-quality securities during the 12 months ended September 30, 2008. The spreading crisis in the financial markets increased fears of recession and suppressed investors’ appetite for any credit risk. Treasury prices climbed as growing demand pushed their yields down to historic lows, while the spread (or difference in yield) between Treasuries and corporate bonds widened significantly, leading to price erosion and poor performance for corporate bonds generally.

During this volatile period, Loomis Sayles Investment Grade Bond Fund’s Class A shares returned -5.12%, at net asset value. The fund’s results lagged the 2.41% return of its benchmark, Lehman U.S. Government/Credit Index, as well as the -2.45% average return on the funds in Morningstar’s Intermediate-Term Bond category. The fund’s 30-day SEC yield was 6.12% at September 30, 2008.

Our policy of focusing on value was not rewarded during this period. Our portfolio management team pursues a discipline of buying bonds that we believe are selling at a discount to their intrinsic value and that are backed by corporations that should be able to meet their debt obligations. Rather than focusing on short-term fluctuations, the team tries to maintain a longer-term view. Despite the extraordinary events of the past 12 months, we continue to have confidence in this strategy.

HOW DID THE FUND RESPOND?

During this period of heightened demand for quality and plunging Treasury yields, we maintained a longer duration than the benchmark, maximizing current income. However, the fund’s sensitivity to interest-rate changes was greater than that of the benchmark during the fiscal year, with an average effective duration of 5.73 years for the fund, compared to 5.12 years for the benchmark, as of September 30, 2008. The asset-backed securities (ABS) we selected also helped relative performance, even though securitized assets as a whole suffered. ABS are backed by loans on such tangible assets as automobiles and homes, and packaged (securitized) so they can be sold as a unit. Most ABS declined in price during the period as the value of the underlying assets fell.

Pivotal events during the fiscal year included bankruptcies, near-failures and takeovers of several revered financial institutions. In this environment, our emphasis on both investment-grade and high-yield corporate bonds hurt performance significantly as they declined in value while Treasury securities rose. In particular, our positions in telecommunications bonds, both investment-grade and high-yield, held back results, as did our investments in high-yield auto and auto-related securities. Our investments in bonds issued in commodity-exporting countries like Australia, Canada and New Zealand also detracted, as their currencies weakened against the U.S. dollar.

WHAT NOW?

While the current economic outlook is uncertain, we think it is important to maintain a long-term perspective. We believe investments in undervalued bonds can provide several potential advantages:

• reduced downside risk, as many corporate bonds have already fallen below our estimate of their true value;

• increased current yield, as the income they provide is high in relation to their deflated prices;

• greater potential for capital appreciation, as any recovery in the corporate debt market should lift the prices of most bonds backed by financially solid companies.

In a period when almost every major sector of the bond market lost ground, we relied on our experience, discipline and the strategies we use to navigate volatile markets. The storm clouds have not yet passed. Prices may go lower still and the markets are illiquid. However, with yields as high as they are today, bondholders are earning generous income while they wait for prices to turn back up. There can be no assurances, but in time we believe these crises will fade, allowing bond prices to recover.

1

LOOMIS SAYLES INVESTMENT GRADE BOND FUND

Investment Results through September 30, 2008

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 Returns — September 30, 2008⁴

	1 YEAR		5 YEARS		10 YEARS
CLASS A (Inception 12/31/96)1
Net Asset Value2	-5.12	%	4.91	%	7.28	%
With Maximum Sales Charge3	-9.37		3.96		6.79
CLASS B (Inception 9/12/03)1
Net Asset Value2	-5.88		4.05		6.34
With CDSC5	-10.38		3.74		6.34
CLASS C (Inception 9/12/03)1
Net Asset Value2	-5.84		4.09		6.36
With CDSC5	-6.73		4.09		6.36
CLASS Y (Inception 12/31/96)1
Net Asset Value2	-4.79		5.25		7.57
CLASS J (Inception 5/24/99) 1
Net Asset Value2	-5.50		4.46		6.77
With Sales Charge5	-8.77		3.71		6.40
COMPARATIVE PERFORMANCE	1 YEAR		5 YEARS		10 YEARS
Lehman U.S. Government/Credit Index	2.41	%	3.34	%	5.00	%
Morningstar Intermediate-Term Bond Fund Avg.	-2.45		2.15		4.09

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, the successor to the fund’s Institutional Class, 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	9/30/08	9/30/07
Aaa	28.6	40.4
Aa	4.5	2.0
A	14.6	7.6
Baa	41.3	37.1
Ba	3.7	3.9
B	1.0	1.2
Caa	1.2	1.8
Ca	0.1	—
Not Rated*	3.0	3.4
Short-term and other	2.0	2.6

Credit quality is based on ratings from Moody’s Investors Service.

* Securities that are not rated by Moody’s may be rated by another rating agency or by Loomis Sayles. Portfolio characteristics will vary.

EXPENSE RATIOS AS STATED IN THE MOST RECENT PROSPECTUS

Share Class	Gross Expense Ratio6	Net Expense Ratio7
A	0.83%	0.83%
B	1.71	1.70
C	1.57	1.57
Y	0.55	0.55
J	1.28	1.28

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 Returns shown in the chart include performance of the fund’s Retail Class shares, which were converted to Class A shares on 9/12/03. The prior Retail Class performance has been restated to reflect the expenses and sales loads of Class A shares. Retail Class was closed on 12/18/00 and recommenced operations on 1/31/02; Institutional Class performance is shown for the intervening period, adjusted to reflect the expenses and sales loads paid by Class A shares. The restatement of the fund’s performance to reflect Class A expenses is based on the net expenses of the Class after taking into effect the fund’s then current expense cap arrangements. For periods prior to the inception of Class B and Class C shares (9/12/03), performance is based on prior Institutional Class performance, restated to reflect the sales loads and expenses of Class B and Class C shares. Institutional Class became Class Y on 9/12/03. Institutional Class performance has been restated to reflect the expenses of Class Y shares after taking into effect Class Y’s then current expense cap arrangements. For periods prior to the inception of Class J Shares (5/24/99), performance is based on prior Institutional Class performance, restated to reflect the sales loads and expenses of Class J shares. The growth of $10,000 chart compares the performance of Class A shares at net asset value, to the performance of Class A shares including the maximum sales charge of 4.50%. This chart reflects the performance of Class A shares rather than Class Y shares because Class A shares have the highest sales charge. Prior to 9/12/03, the fund (except Class J) was offered without a sales charge.

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 1/31/09.

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.

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

INDEX/AVERAGE DESCRIPTIONS:

Lehman U.S. Government/Credit Index is an unmanaged index of publicly traded bonds, including U.S. government bonds, U.S. Treasury securities and corporate bonds.

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, 2008 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 minimum account fee charges; and ongoing costs, including management fees, distribution fees (12b-1 fees) and/or service fees, and other fund expenses. In addition, the fund assesses a minimum balance fee of $20 on an annual basis for accounts that fall below the required minimum to establish an account (certain 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 April 1, 2008 through September 30, 2008. 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 4/1/2008		ENDING ACCOUNT VALUE 9/30/2008		EXPENSES PAID DURING PERIOD* 4/1/2008 - 9/30/2008
Class A
Actual	$	1,000.00	$	921.60	$	3.94
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.90	$	4.14
Class B
Actual	$	1,000.00	$	918.20	$	7.86
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.80	$	8.27
Class C
Actual	$	1,000.00	$	917.80	$	7.53
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.15	$	7.92
Class Y
Actual	$	1,000.00	$	923.70	$	2.60
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.30	$	2.73
Class J
Actual	$	1,000.00	$	920.20	$	6.19
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.55	$	6.51

* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 0.82%, 1.64%, 1.57%, 0.54% and 1.29% for Class A, B, C, Y and J, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

4

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENT

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

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

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

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

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

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

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

5

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENT

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

The Board concluded that the Fund’s performance and other relevant factors supported the renewal of the Agreement. The Trustees also considered the Adviser’s performance and reputation generally, the performance as a fund family generally (as noted by certain financial publications), and the historical responsiveness of the Adviser to Trustee concerns about performance and the willingness of the Adviser to take steps intended to improve performance.

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the Agreement, that the performance of the Fund and the Adviser supported the renewal of the Agreement.

The costs of the services to be provided and profits to be realized by the Adviser and its affiliates from their respective relationships with the Fund. The Trustees considered the fees charged to the Fund for advisory services as well as the total expense level of the Fund. This information included comparisons (provided both by management and also by an independent third party) of the Fund’s advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Adviser to comparable accounts. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage mutual fund assets. In evaluating the Fund’s advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of the Fund. The Trustees considered that over the past several years, management had made recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense caps. They noted that the Fund currently has an expense cap in place, and they considered the amounts waived or reimbursed by the Adviser under the cap.

The Trustees also considered the compensation directly or indirectly received by the Adviser and its affiliates from their relationships with the Fund. The Trustees reviewed information provided by management as to the profitability of the Adviser’s and its affiliates’ relationships with the Fund, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management about the effect of distribution costs and Fund growth on Adviser profitability, including information regarding resources spent on distribution activities and the increase in net sales for the family of funds. When reviewing profitability, the Trustees also considered information about court cases in which adviser profitability was an issue, the performance of the Fund, the expense levels of the Fund, and whether the Adviser had implemented breakpoints and/or expense caps.

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

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Fund through breakpoints in its investment advisory fees or other means, such as expense waivers. The Trustees noted that the Fund was subject to an expense cap. The Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Fund, as discussed above.

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

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

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

· the nature, quality, cost and extent of administrative and shareholder services performed by the Adviser and their affiliates, both under the Agreement and under a separate agreement covering administrative services.

6

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENT

· so-called “fallout benefits” to the Adviser, such as the engagement of affiliates of the Adviser to provide distribution, administrative and brokerage services to the Fund. The Trustees considered the possible conflicts of interest associated with these fallout and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest.

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

7

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 87.7% of Net Assets
	Non-Convertible Bonds — 86.3%
		ABS Car Loan — 1.9%
$	60,855,000	ARG Funding Corp., Series 2005-2A, Class A5, 3.348%, 5/20/2011, 144A(b)	$	55,913,099
	26,520,000	Capital One Auto Finance Trust, Series 2006-C, Class A4, 2.518%, 5/15/2013(b)		22,126,694
	7,199,000	Merrill Auto Trust Securitization Asset, Series 2008-1, Class B, 6.750%, 4/15/2015		6,523,130
				84,562,923
		ABS Credit Card — 1.8%
	2,550,000	Capital One Multi-Asset Execution Trust, Series 2006-C2, Class C, 2.788%, 6/16/2014(b)		2,151,475
	29,215,000	Chase Issuance Trust, Series 2007-B1, Class B1, 2.738%, 4/15/2019(b)		20,626,520
	29,395,000	Citibank Credit Card Issuance Trust, Series 2008-C6, Class C6, 6.300%, 6/20/2014		25,542,030
	10,000,000	MBNA Credit Card Master Note Trust, Series 2002-C1, Class C1, 6.800%, 7/15/2014		8,991,570
	19,060,000	MBNA Credit Card Master Note Trust, Series 2005-B2, Class B, 2.668%, 12/17/2012(b)		17,777,049
	5,000,000	World Financial Network Credit Card, Series 2008-B, Class M, 7.800%, 10/15/2013		4,969,019
				80,057,663
		Airlines — 1.8%
	710,099	Continental Airlines, Inc., Series 971A, 7.461%, 10/01/2016		617,786
	27,540,000	Continental Airlines, Inc., Series A, 5.983%, 4/19/2022		21,205,800
	9,948,000	Continental Airlines, Inc., Series B, 6.903%, 4/19/2022(c)		7,063,080
	860,141	Delta Air Lines, Inc., Series 2007-1, Class A, 6.821%, 2/10/2024		670,910
	19,586,576	Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 2/10/2024		13,318,871
	11,415,000	Northwest Airlines, Inc., Series 07-1, Class B, 8.028%, 11/01/2017		7,077,300
	8,115,000	Qantas Airways Ltd., 6.050%, 4/15/2016, 144A		7,428,966
	30,028,035	United Air Lines, Inc., 6.636%, 1/02/2024		22,220,746
				79,603,459
		Asset-Backed Securities — 0.5%
	16,965,000	CIT Equipment Collateral, Series 2008-VT1, Class A3, 6.590%, 12/22/2014		16,436,211
	504,318	Community Program Loan Trust, Series 1987-A, Class A4, 4.500%, 10/01/2018		502,860
	1,700,000	Community Program Loan Trust, Series 1987-A, Class A5, 4.500%, 4/01/2029		1,509,940
				18,449,011
		Automotive — 0.8%
	10,665,000	Cummins, Inc., 5.650%, 3/01/2098		7,487,246
	3,389,000	Cummins, Inc., 6.750%, 2/15/2027		3,038,198

Principal Amount (‡)		Description	Value (†)
		Automotive — continued
$	665,000	Cummins, Inc., 7.125%, 3/01/2028	$	636,384
	1,990,000	Ford Motor Co., 6.375%, 2/01/2029		736,300
	130,000	Ford Motor Co., 6.500%, 8/01/2018		53,300
	260,000	Ford Motor Co., 6.625%, 2/15/2028		100,100
	5,185,000	Ford Motor Co., 6.625%, 10/01/2028		1,970,300
	8,730,000	Ford Motor Co., 7.450%, 7/16/2031		3,753,900
	245,000	Ford Motor Co., 7.500%, 8/01/2026		101,675
	11,830,000	Ford Motor Credit Co. LLC, 5.700%, 1/15/2010		9,059,840
	345,000	Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		212,022
	700,000	Ford Motor Credit Co. LLC, 7.375%, 10/28/2009		562,776
	1,540,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		973,708
	935,000	Ford Motor Credit Co. LLC, 8.625%, 11/01/2010		663,027
	2,135,000	Ford Motor Credit Co. LLC, 9.750%, 9/15/2010		1,530,972
	575,000	General Motors Corp., 7.400%, 9/01/2025		207,000
	8,985,000	General Motors Corp., 8.250%, 7/15/2023(c)		3,526,613
	245,000	General Motors Corp., 8.375%, 7/15/2033(c)		98,000
				34,711,361
		Banking — 2.1%
	2,595,000	BAC Capital Trust VI, 5.625%, 3/08/2035		1,981,021
	3,120,000,000	Barclays Financial LLC, 4.060%, 9/16/2010, (KRW), 144A		2,630,525
	180,000,000	Barclays Financial LLC, 4.160%, 2/22/2010, (THB), 144A		5,256,468
	3,500,000,000	Barclays Financial LLC, 4.460%, 9/23/2010, (KRW), 144A		2,973,238
	52,000,000	Barclays Financial LLC, EMTN, 4.100%, 3/22/2010, (THB), 144A		1,517,307
	16,371,250,000	BNP Paribas SA, EMTN, Zero Coupon, 6/13/2011, (IDR), 144A		1,253,277
	9,860,000	Citibank NA, 15.000%, 7/02/2010, (BRL), 144A		5,284,367
	700,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		483,161
	18,000,000	JPMorgan Chase & Co., Zero Coupon, 5/17/2010, (BRL), 144A		7,609,131
	22,683,264,000	JPMorgan Chase & Co., Zero Coupon, 3/28/2011, (IDR), 144A		1,787,720
	17,920,000,000	JPMorgan Chase & Co., Zero Coupon, 3/28/2011, (IDR), 144A		1,410,416
	68,827,366,920	JPMorgan Chase & Co., Zero Coupon, 4/12/2012, (IDR), 144A		4,727,411

See accompanying notes to financial statements.

8

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Principal Amount (‡)	Description	Value (†)
	Banking — continued
24,124,936,500	JPMorgan Chase London, EMTN, Zero Coupon, 10/21/2010, (IDR), 144A	$	2,012,629
1,700,000	Kaupthing Bank, 3.491%, 1/15/2010, 144A(b)		1,326,000
18,400,000	Kaupthing Bank, Series D, 5.750%, 10/04/2011, 144A		11,776,000
2,700,000	Kaupthing Bank, Series E, 6.125%, 10/04/2016, 144A		1,431,000
100,000	Keybank NA, 6.950%, 2/01/2028		52,467
30,000,000	Kreditanstalt fuer Wiederaufbau, EMTN, 10.750%, 2/01/2010, (ISK)		286,276
13,950,000	PNC Bank NA, 6.875%, 4/01/2018		13,360,668
1,181,000,000	Rabobank Nederland, 10.250%, 9/10/2009, (ISK), 144A		10,978,153
330,000,000	Rabobank Nederland, EMTN, 12.500%, 2/17/2009, (ISK)		3,075,802
1,176,000,000	Rabobank Nederland, EMTN, 14.000%, 1/28/2009, (ISK), 144A		11,205,382
			92,418,419
	Brokerage — 4.6%
2,220,000	Bear Stearns Cos., Inc. (The), 4.650%, 7/02/2018		1,738,504
975,000	Bear Stearns Cos., Inc. (The), 5.300%, 10/30/2015		864,450
2,150,000	Bear Stearns Cos., Inc. (The), 6.400%, 10/02/2017		2,007,878
15,000,000	Bear Stearns Cos., Inc. (The), 7.250%, 2/01/2018		14,435,625
13,400,000	Goldman Sachs Group LP, 5.000%, 10/01/2014		11,176,498
6,790,000	Goldman Sachs Group, Inc. (The), 5.150%, 1/15/2014		5,576,512
31,730,000	Lehman Brothers Holdings, Inc., 6.875%, 7/17/2037(c)(d)		39,662
2,520,000	Lehman Brothers Holdings, Inc., (fixed rate to 5/03/2027, variable rate thereafter), MTN, 6.000%, 5/03/2032(d)		3,150
109,500,000	Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		76,016,652
10,000,000	Merrill Lynch & Co., Inc., 10.710%, 3/08/2017, (BRL)		3,731,147
3,200,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		2,467,412
27,910,000	Morgan Stanley, 3.875%, 1/15/2009		25,677,702
12,975,000	Morgan Stanley, 4.000%, 1/15/2010		10,639,617
7,000,000	Morgan Stanley, 5.375%, 10/15/2015		4,338,565
10,000,000	Morgan Stanley, 5.750%, 4/01/2009, (EUR)		12,389,769
1,510,000	Morgan Stanley, EMTN, 5.450%, 1/09/2017		936,664
4,200,000	Morgan Stanley, MTN, 6.250%, 8/09/2026		2,567,540
11,800,000	Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		7,315,174

Principal Amount (‡)		Description	Value (†)
		Brokerage — continued
$	1,515,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017	$	949,066
	31,790,000	Morgan Stanley, Series F, MTN, 6.625%, 4/01/2018		21,038,336
				203,909,923
		Building Materials — 0.7%
	10,000,000	Masco Corp., 5.850%, 3/15/2017(c)		8,439,790
	6,465,000	Owens Corning, Inc., 6.500%, 12/01/2016		5,720,963
	20,368,000	Owens Corning, Inc., 7.000%, 12/01/2036		16,373,346
	1,060,000	USG Corp., 6.300%, 11/15/2016		800,300
				31,334,399
		Chemicals — 2.0%
	22,665,000	Lubrizol Corp., 6.500%, 10/01/2034		20,373,070
	2,400,000	Methanex Corp., 6.000%, 8/15/2015		2,111,136
	68,560,000	PPG Industries, Inc., 6.650%, 3/15/2018		67,707,593
				90,191,799
		Construction Machinery — 0.2%
	6,935,000	Toro Co., 6.625%, 5/01/2037		7,307,659
		Consumer Cyclical Services — 0.3%
	19,330,000	Western Union Co., 6.200%, 11/17/2036		15,105,100
		Distributors — 1.4%
	61,345,000	Equitable Resources, Inc., 6.500%, 4/01/2018		58,528,651
	5,865,000	ONEOK, Inc., 6.000%, 6/15/2035		4,186,079
				62,714,730
		Electric — 5.7%
	40,400,000	AmerenEnergy Generating Co., Series H, 7.000%, 4/15/2018		37,675,343
	500,000	Baltimore Gas & Electric Co., 5.200%, 6/15/2033		340,262
	11,360,000	Bruce Mansfield Unit, 6.850%, 6/01/2034(e)		11,328,192
	26,290,000	Cleveland Electric Illuminating Co. (The), 5.950%, 12/15/2036		20,900,734
	895,000	Commonwealth Edison Co., 4.700%, 4/15/2015		807,004
	1,700,000	Commonwealth Edison Co., 5.875%, 2/01/2033		1,393,201
	2,750,000	Constellation Energy Group, Inc., 4.550%, 6/15/2015		2,357,836
	960,000	Dominion Resources, Inc., 5.950%, 6/15/2035		794,198
	5,500,000	Empresa Nacional de Electricidad SA (Endesa-Chile), 7.875%, 2/01/2027		5,760,095
	1,000,000	Empresa Nacional de Electricidad SA (Endesa-Chile), 8.350%, 8/01/2013		1,067,974

See accompanying notes to financial statements.

9

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Electric — continued
$	47,570,000	Illinois Power Co., 6.250%, 4/01/2018	$	43,809,354
	1,905,000	ITC Holdings Corp., 5.875%, 9/30/2016, 144A		1,794,912
	2,830,000	ITC Holdings Corp., 6.375%, 9/30/2036, 144A		2,445,454
	10,070,960	Mackinaw Power LLC, 6.296%, 10/31/2023, 144A		10,046,890
	1,500,000	MidAmerican Energy Holdings Co., 5.875%, 10/01/2012		1,486,830
	1,000,000	MidAmerican Energy Holdings Co., 6.125%, 4/01/2036		841,080
	7,185,000	MidAmerican Energy Holdings Co., 6.500%, 9/15/2037		6,303,832
	27,500,000	Nisource Finance Corp., 6.400%, 3/15/2018		24,645,197
	21,585,000	Nisource Finance Corp., 6.800%, 1/15/2019(c)		19,606,540
	37,750	Quezon Power Philippines Co., 8.860%, 6/15/2017		37,561
	51,115,000	Southwestern Electric Power Co., 6.450%, 1/15/2019(c)		48,091,037
	500,000	SP Powerassets Ltd., EMTN, 3.730%, 10/22/2010, (SGD)		355,231
	8,025,000	Toledo Edison Co., 6.150%, 5/15/2037		6,533,650
	1,075,000	White Pine Hydro LLC, 6.310%, 7/10/2017(e)		1,031,939
	1,600,000	White Pine Hydro LLC, 6.960%, 7/10/2037(e)		1,544,376
				250,998,722
		Entertainment — 0.2%
	3,565,000	Time Warner, Inc., 6.500%, 11/15/2036		2,707,293
	1,805,000	Time Warner, Inc., 6.625%, 5/15/2029		1,441,690
	755,000	Time Warner, Inc., 6.950%, 1/15/2028		629,459
	505,000	Time Warner, Inc., 7.625%, 4/15/2031		438,522
	330,000	Time Warner, Inc., 7.700%, 5/01/2032		288,334
	3,590,000	Viacom, Inc., Class B, 6.875%, 4/30/2036		2,878,031
				8,383,329
		Food & Beverage — 1.4%
	6,845,000	Anheuser-Busch Cos., Inc., 5.950%, 1/15/2033		5,291,329
	8,760,000	Anheuser-Busch Cos., Inc., 6.450%, 9/01/2037		7,097,098
	2,500,000	Cargill, Inc., EMTN, 5.375%, 3/02/2037, (GBP)		3,442,527
	1,525,000	Cia Brasileira de Bebidas, 8.750%, 9/15/2013		1,629,844
	6,080,000	Corn Products International, Inc., 6.625%, 4/15/2037		6,323,510
	9,925,000	Kraft Foods, Inc., 6.500%, 8/11/2017		9,549,865

Principal Amount (‡)		Description	Value (†)
		Food & Beverage — continued
$	21,385,000	Kraft Foods, Inc., 6.500%, 11/01/2031	$	18,592,162
	8,080,000	Kraft Foods, Inc., 7.000%, 8/11/2037		7,559,672
				59,486,007
		Foreign Agency — 0.0%
	220,000	Alberta Municipal Funding Corp., 5.700%, 9/01/2011, (CAD)		218,146
		Foreign Local Governments — 0.0%
	27,436	Province of Alberta, 5.930%, 9/16/2016, (CAD)		27,928
	500,000	Province of Nova Scotia, 6.600%, 6/01/2027, (CAD)		549,157
				577,085
		Government Guaranteed — 1.0%
	45,000,000	Canada Housing Trust, 4.100%, 12/15/2008, (CAD)		42,439,324
		Government Owned-No Guarantee — 1.7%
	37,780,000	Abu Dhabi National Energy Co., 7.250%, 8/01/2018, 144A		36,832,138
	51,020,000	DP World Ltd., 6.850%, 7/02/2037, 144A		37,773,167
				74,605,305
		Government Sponsored — 0.2%
	15,000,000	Queensland Treasury Corp., 7.125%, 9/18/2017, (NZD), 144A		10,533,935
		Health Insurance — 0.1%
	5,455,000	CIGNA Corp., 6.150%, 11/15/2036		4,595,728
		Healthcare — 3.4%
	7,535,000	Covidien International Finance SA, 6.000%, 10/15/2017		7,444,527
	7,590,000	Covidien International Finance SA, 6.550%, 10/15/2037		7,296,988
	9,310,000	HCA, Inc., 5.750%, 3/15/2014		7,261,800
	1,950,000	HCA, Inc., 6.250%, 2/15/2013		1,628,250
	3,250,000	HCA, Inc., 6.300%, 10/01/2012		2,803,125
	3,810,000	HCA, Inc., 6.375%, 1/15/2015		3,000,375
	4,015,000	HCA, Inc., 6.500%, 2/15/2016		3,181,888
	365,000	HCA, Inc., 6.750%, 7/15/2013		306,600
	3,000,000	HCA, Inc., 7.050%, 12/01/2027		2,025,870
	2,290,000	HCA, Inc., 7.190%, 11/15/2015		1,828,180
	2,155,000	HCA, Inc., 7.500%, 12/15/2023		1,578,645
	250,000	HCA, Inc., 7.500%, 11/06/2033		177,500
	3,890,000	HCA, Inc., 7.690%, 6/15/2025		2,891,204

See accompanying notes to financial statements.

10

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Healthcare — continued
$	4,255,000	HCA, Inc., 8.360%, 4/15/2024	$	3,297,965
	1,225,000	HCA, Inc., MTN, 7.580%, 9/15/2025		902,494
	1,640,000	HCA, Inc., MTN, 7.750%, 7/15/2036		1,164,236
	2,865,000	Hospira, Inc., 6.050%, 3/30/2017		2,731,617
	57,190,000	Medco Health Solutions, Inc., 7.125%, 3/15/2018		57,950,799
	530,000	Owens & Minor, Inc., 6.350%, 4/15/2016(e)		516,077
	24,355,000	UnitedHealth Group, Inc., 5.800%, 3/15/2036		18,476,994
	565,000	UnitedHealth Group, Inc., 6.500%, 6/15/2037		469,041
	2,810,000	UnitedHealth Group, Inc., 6.625%, 11/15/2037		2,362,221
	27,070,000	WellPoint, Inc., 6.375%, 6/15/2037		23,160,361
				152,456,757
		Home Construction — 0.5%
	850,000	Centex Corp., 5.250%, 6/15/2015		624,750
	3,685,000	D.R. Horton, Inc., 5.250%, 2/15/2015		2,726,900
	2,050,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015		1,804,000
	2,605,000	Lennar Corp., Series B, 5.600%, 5/31/2015		1,693,250
	1,870,000	Lennar Corp., Series B, 6.500%, 4/15/2016		1,262,250
	2,945,000	Pulte Homes, Inc., 5.200%, 2/15/2015		2,356,000
	250,000	Pulte Homes, Inc., 5.250%, 1/15/2014		207,500
	9,400,000	Pulte Homes, Inc., 6.000%, 2/15/2035		6,721,000
	3,645,000	Pulte Homes, Inc., 6.375%, 5/15/2033		2,660,850
	3,605,000	Toll Brothers Finance Corp., 5.150%, 5/15/2015		3,048,803
				23,105,303
		Hybrid ARMS — 0.0%
	148,991	Wells Fargo Mortgage Backed Securities Trust, 6.030%, 9/25/2036(b)		107,273
		Independent Energy — 1.9%
	4,020,000	Anadarko Petroleum Corp., 5.950%, 9/15/2016		3,694,842
	13,905,000	Anadarko Petroleum Corp., 6.450%, 9/15/2036		10,902,187
	10,875,000	Apache Corp., 6.000%, 1/15/2037		9,191,811
	1,190,000	Chesapeake Energy Corp., 6.250%, 1/15/2017, (EUR)		1,390,484
	500,000	Devon Financing Corp. LLC, 7.875%, 9/30/2031		507,733

Principal Amount (‡)		Description	Value (†)
		Independent Energy — continued
$	48,640,000	Questar Market Resources, Inc., 6.800%, 4/01/2018	$	49,043,615
	3,585,000	Talisman Energy, Inc., 5.850%, 2/01/2037		2,691,217
	3,515,000	Talisman Energy, Inc., 6.250%, 2/01/2038		2,730,027
	160,000	XTO Energy, Inc., 6.100%, 4/01/2036		132,482
	6,230,000	XTO Energy, Inc., 6.750%, 8/01/2037		5,527,985
				85,812,383
		Integrated Energy — 0.0%
	1,525,109	PF Export Receivables Master Trust, 6.436%, 6/01/2015, 144A		1,570,862
		Life Insurance — 0.3%
	15,400,000	ASIF Global Financing XXVII, 2.380%, 2/26/2009, (SGD), 144A		5,445,760
	9,260,000	Mutual of Omaha Insurance Co., 6.800%, 6/15/2036, 144A		8,711,437
				14,157,197
		Local Authorities — 0.9%
	7,070,000	Manitoba (Province OF), GMTN, 6.375%, 9/01/2015, (NZD)		4,630,852
	10,440,000	Quebec Province, Series QC, 6.750%, 11/09/2015, (NZD)		7,009,106
	19,325,000	Queensland Treasury Corp., Series 11G, 6.000%, 6/14/2011, (AUD)		15,354,326
	14,895,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(e)		11,535,433
				38,529,717
		Media Cable — 2.7%
	16,501,000	Comcast Corp., 5.650%, 6/15/2035		12,265,738
	2,195,000	Comcast Corp., 6.450%, 3/15/2037		1,770,406
	4,610,000	Comcast Corp., 6.500%, 11/15/2035		3,848,999
	32,715,000	Comcast Corp., 6.950%, 8/15/2037		27,904,357
	3,750,000	Cox Communications, Inc., Class A, 6.750%, 3/15/2011		3,809,179
	75,000,000	Time Warner Cable, Inc., 6.750%, 7/01/2018		70,044,750
	350,000	Virgin Media Finance PLC, 9.750%, 4/15/2014, (GBP)		479,131
				120,122,560
		Media Non-Cable — 0.5%
	2,500,000	Clear Channel Communications, Inc., 4.250%, 5/15/2009		2,350,000
	1,000,000	Clear Channel Communications, Inc., 5.750%, 1/15/2013		360,000
	7,700,000	News America, Inc., 6.150%, 3/01/2037		6,278,018
	4,095,000	News America, Inc., 6.200%, 12/15/2034		3,264,898
	9,760,000	News America, Inc., 6.400%, 12/15/2035		8,198,703

See accompanying notes to financial statements.

11

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Media Non-Cable — continued
$	1,005,000	R.H. Donnelley Corp., 6.875%, 1/15/2013	$	391,950
	1,665,000	R.H. Donnelley Corp., Series A-1, 6.875%, 1/15/2013(c)		649,350
	1,950,000	R.H. Donnelley Corp., Series A-2, 6.875%, 1/15/2013		760,500
	1,760,000	R.H. Donnelley Corp., Series A-3, 8.875%, 1/15/2016(c)		598,400
	555,000	R.H. Donnelley Corp., Series A-4, 8.875%, 10/15/2017(c)		188,700
				23,040,519
		Metals & Mining — 1.1%
	12,775,000	Newmont Mining Corp., 5.875%, 4/01/2035		9,721,762
	1,500,000	Teck Cominco Ltd., 7.000%, 9/15/2012		1,518,105
	1,985,000	United States Steel Corp., 6.050%, 6/01/2017		1,724,868
	4,712,000	United States Steel Corp., 6.650%, 6/01/2037		3,504,352
	31,890,000	United States Steel Corp., 7.000%, 2/01/2018		28,789,016
	3,735,000	Vale Overseas Ltd., 6.875%, 11/21/2036		3,324,550
				48,582,653
		Mortgage Related — 0.2%
	3,000,000	Bank of America-First Union NB Commercial Mortgage, Series 2001-3, Class A2, 5.464%, 4/11/2037		2,935,756
	1,782,895	CS First Boston Mortgage Securities Corp., Series 2005-7, Class 3A1, 5.000%, 8/25/2020		1,591,792
	180,033	Federal Home Loan Mortgage Corp., 5.000%, 12/01/2031		176,183
	4,465,000	Federal Home Loan Mortgage Corp., MTN, 5.000%, 12/14/2018(c)		4,196,903
	34,575	Federal National Mortgage Association, 6.000%, 7/01/2029		35,314
				8,935,948
		Non-Captive Consumer — 2.0%
	5,000,000	American General Finance Corp., Series I, MTN, 5.400%, 12/01/2015		2,468,315
	88,895,000	American General Finance Corp., Series J, MTN, 6.900%, 12/15/2017		41,219,901
	400,000	Countrywide Financial Corp., Series A, MTN, 3.333%, 12/19/2008(b)(c)		395,471
	1,170,000	Countrywide Home Loans, Inc., Series L, MTN, 4.000%, 3/22/2011		1,006,614
	180,000	Residential Capital LLC, 8.125%, 11/21/2008(c)		153,000
	840,000	Residential Capital LLC, 8.375%, 6/30/2010(c)		193,200
	20,645,000	Residential Capital LLC, 8.500%, 4/17/2013(c)		4,129,000
	385,000	Residential Capital LLC, 8.875%, 6/30/2015(c)		77,000
	10,807,000	Residential Capital LLC, 9.625%, 5/15/2015, 144A		2,593,680

Principal Amount (‡)		Description	Value (†)
		Non-Captive Consumer — continued
$	63,775(†††)	SLM Corp., 6.000%, 12/15/2043	$	658,636
	6,200,000	SLM Corp., EMTN, 4.750%, 3/17/2014, (EUR)		4,800,599
	630,000	SLM Corp., MTN, 5.050%, 11/14/2014		384,300
	310,000	SLM Corp., MTN, 5.125%, 8/27/2012		201,500
	200,000	SLM Corp., Series A, MTN, 4.000%, 1/15/2010		157,000
	3,190,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		1,977,800
	2,120,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		1,272,000
	960,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		528,000
	1,680,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		1,100,400
	1,470,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		911,400
	300,000	SLM Corp., Series A, MTN, 5.400%, 10/25/2011		210,000
	690,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		345,000
	7,590,000	SLM Corp., Series A, MTN, 6.500%, 6/15/2010, (NZD)		4,215,445
	31,335,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		21,307,800
				90,306,061
		Non-Captive Diversified — 3.7%
	500,000	CIT Group, Inc., 5.400%, 2/13/2012		287,437
	7,550,000	CIT Group, Inc., 5.500%, 12/01/2014, (GBP)		6,700,164
	1,750,000	CIT Group, Inc., EMTN, 3.800%, 11/14/2012, (EUR)		1,329,546
	350,000	CIT Group, Inc., EMTN, 4.650%, 9/19/2016, (EUR)		241,486
	2,050,000	CIT Group, Inc., EMTN, 5.000%, 5/13/2014, (EUR)		1,476,262
	4,250,000	CIT Group, Inc., EMTN, 5.500%, 12/20/2016, (GBP)		3,768,510
	5,450,000	CIT Group, Inc., GMTN, 4.250%, 9/22/2011, (EUR)		4,582,692
	450,000	CIT Group, Inc., GMTN, 5.000%, 2/13/2014, (EUR)		254,551
	1,450,000	CIT Group, Inc., MTN, 4.250%, 3/17/2015, (EUR)		1,000,581
	780,000	CIT Group, Inc., MTN, 5.125%, 9/30/2014		384,662
	2,370,000	CIT Group, Inc., Series A, GMTN, 6.000%, 4/01/2036		971,700
	87,745,000	CIT Group, Inc., Series A, MTN, 7.625%, 11/30/2012		55,662,445
	4,200,000	General Electric Capital Corp., 6.625%, 2/04/2010, (NZD)		2,695,060
	3,560,000	General Electric Capital Corp., GMTN, 7.625%, 12/10/2014, (NZD)		2,318,987

See accompanying notes to financial statements.

12

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Principal Amount (‡)	Description	Value (†)
	Non-Captive Diversified — continued
14,535,000	General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016, (NZD)	$	8,650,614
6,200,000	General Electric Capital Corp., Series A, GMTN, 2.960%, 5/18/2012, (SGD)		4,230,611
13,400,000	General Electric Capital Corp., Series A, GMTN, 3.485%, 3/08/2012, (SGD)		9,322,394
22,137,000	General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015, (NZD)		13,196,925
2,805,000	GMAC LLC, EMTN, 4.750%, 9/14/2009, (EUR)		2,527,283
1,345,000	GMAC LLC, 6.000%, 12/15/2011		598,039
1,310,000	GMAC LLC, 6.625%, 5/15/2012		554,612
1,670,000	GMAC LLC, 6.750%, 12/01/2014		640,969
1,500,000	GMAC LLC, 6.875%, 9/15/2011		669,281
400,000	GMAC LLC, 6.875%, 8/28/2012		158,991
1,210,000	GMAC LLC, 7.000%, 2/01/2012		493,208
2,335,000	GMAC LLC, 8.000%, 11/01/2031(c)		880,942
5,045,000	GMAC LLC, EMTN, 5.375%, 6/06/2011, (EUR)		2,982,988
380,000	GMAC LLC, EMTN, 5.750%, 9/27/2010, (EUR)		240,734
1,965,000	International Lease Finance Corp., 5.000%, 4/15/2010		1,455,607
3,280,000	International Lease Finance Corp., 6.375%, 3/25/2013		2,071,356
16,000,000	International Lease Finance Corp., EMTN, 6.625%, 12/07/2009, (GBP)		22,671,121
655,000	International Lease Finance Corp., Series R, MTN, 5.550%, 9/05/2012		481,684
5,225,000	iStar Financial, Inc., 5.150%, 3/01/2012		2,612,500
1,000,000	iStar Financial, Inc., 5.375%, 4/15/2010(c)		600,000
330,000	iStar Financial, Inc., 5.500%, 6/15/2012		168,300
3,700,000	iStar Financial, Inc., 5.650%, 9/15/2011		1,924,000
765,000	iStar Financial, Inc., 5.800%, 3/15/2011		390,150
385,000	iStar Financial, Inc., 5.850%, 3/15/2017		188,650
1,605,000	iStar Financial, Inc., 5.875%, 3/15/2016		786,450
745,000	iStar Financial, Inc., 6.050%, 4/15/2015		365,050
535,000	iStar Financial, Inc., 8.625%, 6/01/2013		262,150
335,000	iStar Financial, Inc., Series B, 5.125%, 4/01/2011		170,850
254,000	iStar Financial, Inc., Series B, 5.700%, 3/01/2014		124,460

Principal Amount (‡)		Description	Value (†)
		Non-Captive Diversified — continued
$	5,680,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013	$	2,953,600
				164,047,602
		Oil Field Services — 0.1%
	600,000	Transocean Sedco Forex, Inc., 7.375%, 4/15/2018		622,942
	3,840,000	Weatherford International Ltd., 6.500%, 8/01/2036		3,310,237
				3,933,179
		Paper — 2.6%
	1,395,000	Bowater, Inc., 6.500%, 6/15/2013		537,075
	575,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		454,250
	2,460,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		1,986,450
	285,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		235,125
	1,340,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		1,179,200
	2,280,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		1,983,600
	750,000	International Paper Co., 4.000%, 4/01/2010		727,718
	300,000	International Paper Co., 5.250%, 4/01/2016		254,901
	989,000	International Paper Co., 5.500%, 1/15/2014		909,646
	87,495,000	International Paper Co., 7.950%, 6/15/2018		85,973,550
	22,860,000	Weyerhaeuser Co., 6.875%, 12/15/2033		19,863,557
				114,105,072
		Pharmaceuticals — 1.2%
	20,830,000	Astrazeneca PLC, 6.450%, 9/15/2037		19,916,625
	800,000	Elan Financial PLC, 7.750%, 11/15/2011		724,000
	2,280,000	Elan Financial PLC, 8.875%, 12/01/2013(c)		1,915,200
	28,670,000	Johnson & Johnson, 5.950%, 8/15/2037		28,355,633
	500,000	Schering-Plough Corp., 5.550%, 12/01/2013		483,519
				51,394,977
		Pipelines — 5.1%
	1,174,000	Colorado Interstate Gas Co., 5.950%, 3/15/2015		1,069,630
	125,000	Colorado Interstate Gas Co., 6.800%, 11/15/2015		118,419
	2,010,000	DCP Midstream LP, 6.450%, 11/03/2036, 144A		1,607,819
	2,470,000	El Paso Corp., 6.950%, 6/01/2028		1,950,297
	540,000	Energy Transfer Partners LP, 6.125%, 2/15/2017		493,470
	1,605,000	Energy Transfer Partners LP, 6.625%, 10/15/2036		1,367,508

See accompanying notes to financial statements.

13

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Pipelines — continued
$	9,455,000	Enterprise Products Operating LP, 6.300%, 9/15/2017	$	8,817,610
	4,390,000	Kinder Morgan Energy Partners LP, 5.800%, 3/15/2035		3,269,461
	82,600,000	Kinder Morgan Energy Partners LP, 5.950%, 2/15/2018(c)		73,575,207
	310,000	Kinder Morgan Finance, 5.700%, 1/05/2016		266,600
	320,000	Kinder Morgan, Inc., Senior Note, 5.150%, 3/01/2015		271,200
	31,430,000	NGPL Pipeco LLC, 7.119%, 12/15/2017, 144A		29,831,125
	4,665,000	ONEOK Partners LP, 6.650%, 10/01/2036		4,082,589
	10,115,000	Panhandle Eastern Pipeline Co., 6.200%, 11/01/2017		9,120,908
	48,630,000	Panhandle Eastern Pipeline Co., 7.000%, 6/15/2018		45,930,160
	2,130,000	Plains All American Pipeline LP, 6.125%, 1/15/2017		1,935,514
	16,025,000	Plains All American Pipeline LP, 6.500%, 5/01/2018, 144A		14,456,120
	4,595,000	Plains All American Pipeline LP, 6.650%, 1/15/2037		3,763,879
	4,215,000	Southern Natural Gas Co., 5.900%, 4/01/2017, 144A		3,730,246
	2,415,000	Tennessee Gas Pipeline Co., 7.000%, 10/15/2028		2,069,539
	20,000,000	Texas Eastern Transmission LP, 6.000%, 9/15/2017, 144A		19,092,600
				226,819,901
		Property & Casualty Insurance — 1.0%
	3,460,000	Marsh & McLennan Cos., Inc., 5.375%, 7/15/2014		3,204,105
	12,652,000	Marsh & McLennan Cos., Inc., 5.750%, 9/15/2015		11,859,858
	10,125,000	Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033		8,480,609
	965,000	MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 14.000%, 1/15/2033, 144A		511,450
	15,875,000	Travelers Cos., Inc. (The), MTN, 6.250%, 6/15/2037		13,762,609
	2,830,000	Travelers Property Casualty Corp., 6.375%, 3/15/2033		2,484,058
	675,000	White Mountains RE Group, 6.375%, 3/20/2017, 144A		596,139
	4,830,000	Willis North America, Inc., 6.200%, 3/28/2017		4,199,482
				45,098,310
		Railroads — 1.1%
	2,390,000	Canadian Pacific Railway Co., 5.750%, 3/15/2033(c)		1,854,626
	15,830,000	Canadian Pacific Railway Co., 5.950%, 5/15/2037		12,957,900
	5,000,000	Canadian Pacific Railway Ltd., MTN, 4.900%, 6/15/2010, (CAD), 144A		4,669,110

Principal Amount (‡)		Description	Value (†)
		Railroads — continued
$	10,105,000	CSX Corp., 6.000%, 10/01/2036(c)	$	7,679,658
	18,555,000	CSX Corp., 6.250%, 3/15/2018		16,794,019
	195,000	Missouri Pacific Railroad Co., 4.750%, 1/01/2020(e)		148,200
	243,000	Missouri Pacific Railroad Co., 4.750%, 1/01/2030(e)		160,380
	1,738,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(e)		1,042,800
	1,700,000	Union Pacific Corp., 5.375%, 6/01/2033		1,339,340
				46,646,033
		REITs — 1.4%
	12,015,000	Camden Property Trust, 5.700%, 5/15/2017		10,620,996
	4,000,000	Colonial Realty LP, 4.800%, 4/01/2011		3,799,996
	625,000	Colonial Realty LP, 5.500%, 10/01/2015		537,075
	525,000	Colonial Realty LP, 6.050%, 9/01/2016		442,820
	4,230,000	Duke Realty LP, 5.950%, 2/15/2017		3,786,518
	20,000,000	Duke Realty LP, 6.500%, 1/15/2018		18,096,160
	5,000,000	Equity One, Inc., 6.000%, 9/15/2017		4,007,610
	1,010,000	ERP Operating LP, 5.125%, 3/15/2016		845,979
	2,420,000	ERP Operating LP, 5.750%, 6/15/2017(c)		2,038,005
	10,500,000	First Industrial LP, 5.950%, 5/15/2017		8,392,209
	3,500,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		2,807,535
	2,195,000	Highwoods Properties, Inc., 7.500%, 4/15/2018		1,945,231
	575,000	Prologis, 5.625%, 11/15/2015		502,719
	470,000	Prologis, 5.750%, 4/01/2016(c)		409,534
	7,075,000	Realty Income Corp., 6.750%, 8/15/2019		6,383,023
	745,000	Simon Property Group LP, 5.750%, 12/01/2015		704,082
				65,319,492
		Restaurants — 0.0%
	1,000,000	McDonald’s Corp., 3.628%, 10/10/2010, (SGD)		712,192
		Retailers — 3.0%
	1,415,000	Home Depot, Inc., 5.400%, 3/01/2016		1,203,200
	32,022,000	Home Depot, Inc., 5.875%, 12/16/2036		22,510,602
	8,170,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		6,863,780
	16,260,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		12,367,421

See accompanying notes to financial statements.

14

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Retailers — continued
$	12,000	J.C. Penney Corp., Inc., 7.125%, 11/15/2023	$	10,940
	7,385,000	J.C. Penney Corp., Inc., 7.400%, 4/01/2037		6,178,904
	8,845,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		6,860,182
	7,575,000	Lowes Cos., Inc., 6.650%, 9/15/2037		7,265,622
	17,730,000	Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037		12,841,804
	6,715,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		5,294,408
	6,730,000	Macy’s Retail Holdings, Inc., 6.900%, 4/01/2029		5,262,725
	8,240,000	Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		6,317,344
	2,078,000	Target Corp., 6.500%, 10/15/2037		1,908,863
	37,872,000	Target Corp., 7.000%, 1/15/2038		35,633,538
				130,519,333
		Sovereigns — 13.2%
	26,235,000	Canadian Government, 2.750%, 12/01/2010, (CAD)		24,561,926
	133,990,000	Canadian Government, 3.750%, 6/01/2012, (CAD)		128,528,420
	4,250,000	Canadian Government, 4.000%, 6/01/2016, (CAD)		4,104,280
	5,600,000	Canadian Government, 4.250%, 12/01/2008, (CAD)		5,283,022
	38,265,000	Canadian Government, 4.250%, 9/01/2009, (CAD)		36,423,390
	275,170,000	Canadian Government, 5.250%, 6/01/2012, (CAD)		277,354,812
	9,600,000	Canadian Government, 5.500%, 6/01/2010, (CAD)		9,403,355
	3,430,000	Canadian Government, 5.750%, 6/01/2033, (CAD)		3,959,785
	4,200,900(††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		36,866,436
	770,000(††)	Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012, (MXN)		7,205,817
	29,165,000	New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010, (AUD)		23,586,893
	15,145,000	New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012, (AUD)		12,008,936
	325,000	Republic of Brazil, 8.875%, 4/15/2024		388,375
	24,705,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		11,405,404
	250,000	Republic of Brazil, 11.000%, 8/17/2040		313,750
	6,285,000	Republic of Brazil, 12.500%, 1/05/2022, (BRL)		3,385,425
				584,780,026
		Supermarkets — 0.4%
	1,900,000	Albertson’s, Inc., 7.450%, 8/01/2029		1,689,915

Principal Amount (‡)		Description	Value (†)
		Supermarkets — continued
$	1,000,000	Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028	$	810,196
	3,340,000	Kroger Co., 6.400%, 8/15/2017		3,202,532
	11,100,000	Safeway, Inc., 6.350%, 8/15/2017		10,757,787
				16,460,430
		Supranational — 2.3%
	90,000,000	Eurofima, EMTN, 11.000%, 2/05/2010, (ISK)		852,297
	15,500,000	European Investment Bank, 4.600%, 1/30/2037, (CAD), 144A		13,262,786
	113,651,400,000	European Investment Bank, EMTN, Zero Coupon, 4/24/2013, (IDR), 144A		7,197,520
	19,934,000	European Investment Bank, EMTN, 7.000%, 1/18/2012, (NZD)		13,517,085
	22,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 5/11/2009, (BRL)		10,289,558
	331,380,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 5/20/2013, (IDR)		19,928,483
	418,960,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 9/23/2013, (IDR)		25,350,857
	13,265,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		8,577,492
	429,100,000	International Bank for Reconstruction & Development, 9.500%, 5/27/2010, (ISK)		4,036,067
	26,200,000	Nordic Investment Bank, EMTN, 11.250%, 4/16/2009, (ISK)		247,940
				103,260,085
		Technology — 4.8%
	8,895,000	Agilent Technologies, Inc., 6.500%, 11/01/2017		8,108,833
	2,035,000	Arrow Electronics, Inc., 6.875%, 7/01/2013		2,068,765
	2,000,000	Arrow Electronics, Inc., 6.875%, 6/01/2018		1,960,472
	9,000,000	Avnet, Inc., 5.875%, 3/15/2014		8,762,067
	6,230,000	Avnet, Inc., 6.000%, 9/01/2015		6,002,069
	1,540,000	Avnet, Inc., 6.625%, 9/15/2016		1,499,815
	260,000	Corning, Inc., 6.850%, 3/01/2029		229,664
	6,650,000	Corning, Inc., 7.250%, 8/15/2036		5,895,019
	56,440,000	Dun & Bradstreet Corp., 6.000%, 4/01/2013		56,046,275
	8,915,000	Equifax, Inc., 7.000%, 7/01/2037		7,519,080
	1,660,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016(c)		1,062,400
	2,965,000	Intuit, Inc., 5.750%, 3/15/2017		2,622,320
	55,000,000	KLA-Tencor Corp., 6.900%, 5/01/2018		51,139,000
	38,725,000	Koninklijke (Royal) Philips Electronics N.V., 6.875%, 3/11/2038		38,370,163

See accompanying notes to financial statements.

15

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Technology — continued
$	4,700,000	Lucent Technologies, Inc., 6.450%, 3/15/2029	$	2,867,000
	4,680,000	Motorola, Inc., 5.220%, 10/01/2097		2,613,930
	1,730,000	Motorola, Inc., 6.500%, 9/01/2025		1,327,194
	4,150,000	Motorola, Inc., 6.500%, 11/15/2028(c)		3,101,287
	6,145,000	Motorola, Inc., 6.625%, 11/15/2037		4,479,367
	1,625,000	Motorola, Inc., 8.000%, 11/01/2011		1,634,636
	2,920,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		3,089,208
				210,398,564
		Textile — 0.3%
	25,000	Kellwood Co., 7.625%, 10/15/2017(e)		13,750
	15,228,000	VF Corp., 6.450%, 11/01/2037		12,800,352
				12,814,102
		Tobacco — 0.2%
	8,305,000	Reynolds American, Inc., 6.750%, 6/15/2017		7,760,275
	2,035,000	Reynolds American, Inc., 7.250%, 6/15/2037		1,947,410
				9,707,685
		Transportation Services — 0.7%
	8,620,000	Erac USA Finance Co., 6.375%, 10/15/2017, 144A		6,851,400
	2,310,000	Erac USA Finance Co., 6.700%, 6/01/2034, 144A		1,549,661
	32,261,000	Erac USA Finance Co., 7.000%, 10/15/2037, 144A		22,721,842
				31,122,903
		Wireless — 0.9%
	1,000,000	America Movil SAB de CV, 4.125%, 3/01/2009		993,974
	7,240,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		4,778,400
	635,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		431,800
	14,820,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		9,929,400
	9,397,000	Sprint Capital Corp., 6.875%, 11/15/2028		6,295,990
	2,375,000	Sprint Capital Corp., 6.900%, 5/01/2019		1,840,625
	93,000	Sprint Nextel Corp., 6.000%, 12/01/2016		71,610
	5,345,000	Vodafone Group PLC, 5.000%, 9/15/2015		4,703,867
	12,805,000	Vodafone Group PLC, 6.150%, 2/27/2037		10,283,824
				39,329,490

Principal Amount (‡)		Description	Value (†)
		Wirelines — 2.4%
$	19,610,000	AT&T Corp., 6.500%, 3/15/2029	$	16,417,100
	1,205,000	AT&T, Inc., 6.150%, 9/15/2034		1,004,922
	14,830,000	AT&T, Inc., 6.500%, 9/01/2037		12,615,584
	1,590,000	Bell Canada, MTN, 5.000%, 2/15/2017, (CAD)		1,180,029
	415,000	Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		320,532
	3,250,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		2,222,887
	6,415,000	BellSouth Corp., 6.000%, 11/15/2034		5,196,150
	1,710,000	BellSouth Corp., 6.550%, 6/15/2034(c)		1,466,034
	350,000	GTE Corp., 6.940%, 4/15/2028		296,980
	1,625,000	Koninklijke (Royal) KPN NV, 8.375%, 10/01/2030		1,740,760
	65,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		47,125
	560,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		422,800
	620,000	New England Telephone & Telegraph, 7.875%, 11/15/2029		559,965
	1,735,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		1,262,213
	2,955,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		2,053,725
	4,465,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		3,393,400
	970,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		708,100
	340,000	Qwest Corp., 6.500%, 6/01/2017		272,000
	10,580,000	Qwest Corp., 6.875%, 9/15/2033		7,115,050
	890,000	Qwest Corp., 7.200%, 11/10/2026		654,150
	1,050,000	Qwest Corp., 7.250%, 9/15/2025		782,250
	4,295,000	Qwest Corp., 7.250%, 10/15/2035		3,049,450
	1,815,000	Qwest Corp., 7.500%, 6/15/2023		1,424,775
	2,905,000	Telecom Italia Capital, 6.000%, 9/30/2034		2,035,301
	2,850,000	Telecom Italia Capital, 6.375%, 11/15/2033		2,077,080
	10,520,000	Telefonica Emisiones SAU, 7.045%, 6/20/2036		9,514,814
	1,000,000	Telekom Malaysia Berhad, 7.875%, 8/01/2025, 144A		1,096,242
	14,445,000	Telus Corp., 4.950%, 3/15/2017, (CAD)		12,307,262
	7,175,000	Verizon Communications, 5.850%, 9/15/2035		5,610,348
	7,215,000	Verizon Communications, Inc., 6.400%, 2/15/2038		6,021,783

See accompanying notes to financial statements.

16

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Wirelines — continued
$	5,674,000	Verizon Maryland, Inc., 5.125%, 6/15/2033	$	3,838,750
	1,330,000	Verizon New York, Inc., Series B, 7.375%, 4/01/2032		1,160,997
				107,868,558
		Total Non-Convertible Bonds (Identified Cost $4,321,232,912)		3,823,269,194
	Convertible Bonds — 0.6%
		Media Non-Cable — 0.0%
	538,653	Liberty Media LLC, 3.500%, 1/15/2031		238,354
		Non-Captive Consumer — 0.1%
	810,000	Countrywide Financial Corp., Series A, Zero Coupon, 4/15/2037(b)(c)		793,800
	2,260,000	Countrywide Financial Corp., Series B, 0.554%, 5/15/2037(b)		2,056,600
				2,850,400
		Non-Captive Diversified — 0.1%
	9,920,000	iStar Financial, Inc., 3.291%, 10/01/2012(b)		5,307,200
		Pharmaceuticals — 0.2%
	3,997,000	Vertex Pharmaceuticals, Inc., 4.750%, 2/15/2013		6,030,474
	360,000	Watson Pharmaceuticals, Inc., 1.750%, 3/15/2023		335,700
				6,366,174
		Technology — 0.0%
	710,000	Avnet, Inc., 2.000%, 3/15/2034		707,338
		Wireless — 0.1%
	5,200,000	NII Holdings, Inc., 3.125%, 6/15/2012		3,848,000
		Wirelines — 0.1%
	2,735,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		1,931,594
	230,000	Level 3 Communications, Inc., 5.250%, 12/15/2011		190,037
	275,000	Level 3 Communications, Inc., 6.000%, 9/15/2009		258,500
	3,760,000	Level 3 Communications, Inc., 6.000%, 3/15/2010(c)		3,290,000
				5,670,131
		Total Convertible Bonds (Identified Cost $29,120,737)		24,987,597
	Municipals — 0.8%
		Alabama — 0.0%
	1,025,000	Alabama Public School & College Authority (Capital Improvement), 4.500%, 12/01/2026		893,902
		California — 0.3%
	1,075,000	San Diego Unified School District (Election 1998), 4.500%, 7/01/2029, Series F-1, (FSA insured)		902,710
	480,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area Redevelopment), 3.750%, 8/01/2028, Series C, (Registered), (MBIA insured)		353,141

Principal Amount (‡)		Description	Value (†)
		California — continued
$	1,305,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area Redevelopment), 3.750%, 8/01/2028, Series C, (MBIA insured)	$	953,120
	1,620,000	State of California, 4.500%, 8/01/2027, (AMBAC insured)		1,364,607
	4,515,000	State of California, 4.500%, 10/01/2029		3,745,870
	1,315,000	State of California, 4.500%, 8/01/2030, (AMBAC insured)		1,086,150
	1,135,000	State of California, 4.500%, 8/01/2030		937,476
	840,000	State of California (Various Purpose), 3.250%, 12/01/2027, (MBIA insured)		585,774
	3,965,000	State of California (Various Purpose), 4.500%, 12/01/2033, (AMBAC insured)		3,185,084
	280,000	University of California Regents Medical Center, 4.750%, 5/15/2031, Series A, (MBIA insured)		240,355
				13,354,287
		District of Columbia — 0.0%
	1,025,000	District of Columbia, 4.750%, 6/01/2036, Series A, (FGIC insured)		837,989
		Florida — 0.1%
	1,025,000	Florida State Turnpike Authority (Department of Transportation), 3.500%, 7/01/2027, Series A, (MBIA insured)		751,315
	1,625,000	Jacksonville Electric Authority, Florida Water & Sewer Systems Revenue, 4.750%, 10/01/2041, Series B, (MBIA insured)		1,370,720
				2,122,035
		Illinois — 0.0%
	1,770,000	Chicago Board of Education, 4.750%, 12/01/2031, Series B, (FSA insured)		1,569,017
	540,000	Chicago O’Hare International Airport, 4.500%, 1/01/2038, Series A, (FSA insured)		439,727
				2,008,744
		Louisiana — 0.0%
	1,025,000	State of Louisiana, 3.250%, 5/01/2026, Series C, (FSA insured)		731,368
		Massachusetts — 0.0%
	1,025,000	Massachusetts School Building Authority, 4.750%, 8/15/2032, Series A, (AMBAC insured)		872,039
		Michigan — 0.1%
	620,000	Grosse Pointe Public School System, 3.000%, 5/01/2027, (FGIC insured)		413,397
	2,665,000	Michigan Tobacco Settlement Finance Authority, 7.309%, 6/01/2034(e)		2,295,098
				2,708,495
		Nebraska — 0.1%
	2,560,000	Omaha Public Power District, 4.500%, 2/01/2034, Series AA, (FGIC insured)		2,084,864
		Ohio — 0.1%
	6,570,000	Buckeye Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/01/2047(e)		4,967,183
		Texas — 0.1%
	2,920,000	Harris County, TX, 4.500%, 10/01/2031, Series B		2,514,558

See accompanying notes to financial statements.

17

LOOMIS SAYLES INVESTMENT GRADE BOND FUND — PORTFOLIO OF INVESTMENTS (continued)

Investments as of September 30, 2008

Principal Amount (‡)		Description	Value (†)
		Wisconsin — 0.0%
$	700,000	Green Bay Wisconsin Water System Revenue, 3.500%, 11/01/2026, (FSA insured)	$	524,167
	755,000	Green Bay Wisconsin Water System Revenue, 3.500%, 11/01/2029, (FSA insured)		543,759
	260,000	Wisconsin Housing & Economic Development Authority, 4.900%, 11/01/2035, Series E		227,791
				1,295,717
		Total Municipals (Identified Cost $38,623,397)		34,391,181
		Total Bonds and Notes (Identified Cost $4,388,977,046)		3,882,647,972
Shares/ Principal Amount (‡)
	Short-Term Investments — 11.6% of Net Assets
	32,831,158	State Street Navigator Securities Lending Prime Portfolio(f)		32,831,158
$	481,184,000	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation,, dated 9/30/08 at 1.300% to be repurchased at $481,201,376 on 10/01/08 collateralized by $50,000,000 Federal Farm Credit Bank, 2.700% due 9/23/2009 valued at $50,062,500; $141,665,000 Federal Home Loan Bank, 3.750% due 8/18/2009 valued at $143,081,650; $58,000,000 Federal National Mortgage Association, 6.000% due 5/15/2011 valued at $63,220,000; $100,000,000 Federal National Mortgage Association, 4.467% due 3/05/2010 valued at $100,500,000; $50,000,000 Federal National Mortgage Association, 3.375% due 3/05/2010 valued at $50,125,000; $9,940,000 Federal National Mortgage Association, 4.330% due 7/28/2011 valued at $10,113,950; $73,705,000 Federal National Mortgage Association, 2.875% due 10/12/2010 valued at $73,705,000, including accrued interest (Note 2g of Notes to Financial Statements)		481,184,000
		Total Short-Term Investments (Identified Cost $514,015,158)		514,015,158
		Total Investments — 99.3% (Identified Cost $4,902,992,204)(a)		4,396,663,130
		Other assets less liabilities — 0.7%		31,922,763
		Net Assets — 100.0%	$	4,428,585,893
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2a 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.
	(a)	Federal Tax Information: At September 30, 2008, the net unrealized depreciation on investments based on a cost of $4,906,157,811 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	$	25,832,448
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(535,327,129	)
		Net unrealized depreciation	$	(509,494,681	)
	(b)	Variable rate security. Rate as of September 30, 2008 is disclosed.
	(c)	All or a portion of this security was on loan to brokers at September 30, 2008.
	(d)	Issuer has filed for bankruptcy.
	(e)	Illiquid security. At September 30, 2008, the value of these securities amounted to $34,583,428 or 0.8% of net assets.

(f)	Represents investment of securities lending collateral.
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 September 30, 2008, the total value of these securities amounted to $391,333,097 or 8.8% of net assets.
ABS	Asset-Backed Securities
AMBAC	American Municipal Bond Assurance Corp.
EMTN	Euro Medium Term Note
FGIC	Financial Guaranty Insurance Company
FSA	Financial Security Assurance, Inc.
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
NZD	New Zealand Dollar
SGD	Singapore Dollar
THB	Thai Baht

Net Asset Summary at September 30, 2008 (Unaudited)

Sovereigns	13.2	%
Electric	5.7
Pipelines	5.1
Technology	4.8
Brokerage	4.6
Non-Captive Diversified	3.7
Healthcare	3.4
Retailers	3.0
Media Cable	2.7
Paper	2.6
Wirelines	2.5
Supranational	2.3
Banking	2.1
Non-Captive Consumer	2.1
Chemicals	2.0
Other Investments, less than 2% each	27.9
Short-Term Investments	11.6
Total Investments	99.3
Other assets less liabilities	0.7
Net Assets	100.0	%

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

United States Dollar	77.2	%
Canadian Dollar	12.8
Other, less than 2% each	9.3
Total Investments	99.3
Other assets less liabilities	0.7
Net Assets	100.0	%

See accompanying notes to financial statements.

18

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2008

ASSETS
Investments at cost	$	4,421,808,204
Repurchase agreement at cost		481,184,000
Net unrealized depreciation		(506,329,074	)
Investments at value (a)		4,396,663,130
Cash		12,992,438
Foreign currency at value (identified cost $514,131)		512,183
Receivable for Fund shares sold		36,156,883
Interest receivable		74,701,462
Tax reclaims receivable		25,433
Securities lending income receivable		109,787
TOTAL ASSETS		4,521,161,316
LIABILITIES
Collateral on securities loaned, at value (Note 2)		32,831,158
Payable for securities purchased		36,278,232
Payable for Fund shares redeemed		20,785,489
Deferred foreign taxes payable		3,651
Management fees payable (Note 4)		1,514,326
Administrative fees payable (Note 4)		178,050
Deferred Trustees’ fees (Note 4)		113,192
Service and distribution fees payable (Note 4)		53,964
Other accounts payable and accrued expenses		817,361
TOTAL LIABILITIES		92,575,423
NET ASSETS	$	4,428,585,893
NET ASSETS CONSIST OF :
Paid-in capital	$	4,851,944,396
Accumulated net investment income		25,666,898
Accumulated net realized gain on investments and foreign currency transactions		58,767,284
Net unrealized depreciation on investments and foreign currency translations		(507,792,685	)
NET ASSETS	$	4,428,585,893
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	1,867,334,826
Shares of beneficial interest		177,147,249
Net asset value and redemption price per share	$	10.54
Offering price per share (100/95.5 of $10.54) (Note 1)	$	11.04
Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	16,008,660
Shares of beneficial interest		1,525,087
Net asset value and offering price per share	$	10.50
Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	1,333,421,372
Shares of beneficial interest		127,296,937
Net asset value and redemption price per share (Note 1)	$	10.47
Class Y shares:
Net assets	$	1,044,045,902
Shares of beneficial interest		98,986,599
Net asset value, offering and redemption price per share	$	10.55
Class J shares:
Net assets	$	167,775,133
Shares of beneficial interest		15,936,030
Net asset value and offering price per share	$	10.53
Offering price per share (100/96.50 of $10.53) (Note 1)	$	10.91
(a) Including securities on loan with market values of:	$	31,782,345

See accompanying notes to financial statements.

19

STATEMENT OF OPERATIONS

For the Year Ended September 30, 2008

INVESTMENT INCOME
Interest	$	220,390,705
Securities lending income (Note 2)		3,550,644
		223,941,349
Expenses
Management fees (Note 4)		14,927,516
Service fees - Class A (Note 4)		3,942,434
Service and distribution fees - Class B (Note 4)		175,871
Service and distribution fees - Class C (Note 4)		11,032,445
Service and distribution fees - Class J (Note 4)		1,313,220
Trustees’ fees and expenses (Note 4)		63,070
Administrative fees (Note 4)		1,894,625
Custodian fees and expenses		166,219
Transfer agent fees and expenses - Class A (Note 4)		1,139,215
Transfer agent fees and expenses - Class B (Note 4)		12,250
Transfer agent fees and expenses - Class C (Note 4)		798,321
Transfer agent fees and expenses - Class Y (Note 4)		436,071
Transfer agent fees and expenses - Class J (Note 4)		8,347
Audit and tax services fees		50,583
Legal fees - Class A		41,374
Legal fees - Class B		500
Legal fees - Class C		29,288
Legal fees - Class Y		22,547
Legal fees - Class J		19,850
Shareholder reporting expenses - Class A		135,975
Shareholder reporting expenses - Class B		2,900
Shareholder reporting expenses - Class C		115,535
Shareholder reporting expenses - Class Y		54,706
Shareholder reporting expenses - Class J		96,964
Registration fees - Class A		173,516
Registration fees - Class B		17,019
Registration fees - Class C		78,770
Registration fees - Class Y		93,190
Registration fees - Class J		2,264
Expense recapture - Class B (Note 4)		830
Miscellaneous expenses		72,780
Total expenses		36,918,195
Less administrative fee waiver (Note 4)		(69,053	)
Net expenses		36,849,142
Net investment income		187,092,207
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on:
Investments		69,657,009
Foreign currency transactions		859,178
Net change in unrealized appreciation (depreciation) on:
Investments (net of change in foreign capital gains tax accrual of $3,651)		(566,916,599	)
Foreign currency translations		(1,650,314	)
Net realized and unrealized loss on investments and foreign currency transactions		(498,050,726	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(310,958,519	)

See accompanying notes to financial statements.

20

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended September 30, 2008			Year Ended September 30, 2007
FROM OPERATIONS:
Net investment income	$	187,092,207		$	54,015,656
Net realized gain on investments and foreign currency transactions		70,516,187			15,696,855
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(568,566,913	)		35,540,172
Net increase (decrease) in net assets resulting from operations		(310,958,519	)		105,252,683
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(83,130,555	)		(20,224,906	)
Class B		(806,347	)		(482,009	)
Class C		(50,818,767	)		(12,175,921	)
Class Y		(47,348,532	)		(11,008,683	)
Class J		(8,734,457	)		(9,643,008	)
Total distributions		(190,838,658	)		(53,534,527	)
INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 7)		2,843,305,497			1,503,474,421
Net increase in net assets		2,341,508,320			1,555,192,577
NET ASSETS
Beginning of year		2,087,077,573			531,884,996
End of year	$	4,428,585,893		$	2,087,077,573
ACCUMULATED NET INVESTMENT INCOME	$	25,666,898		$	21,428,235

See accompanying notes to financial statements.

21

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22

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 (d)		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
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	)
9/30/2004		11.54		0.52		0.45			0.97			(0.60	)		(0.07	)		(0.67	)
Class B
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	)
9/30/2004		11.53		0.43		0.45			0.88			(0.52	)		(0.07	)		(0.59	)
Class C
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	)
9/30/2004		11.53		0.43		0.45			0.88			(0.53	)		(0.07	)		(0.60	)
Class Y
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	)
9/30/2004		11.54		0.57		0.45			1.02			(0.64	)		(0.07	)		(0.71	)
Class J
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	)
9/30/2004		11.53		0.48		0.44			0.92			(0.55	)		(0.07	)		(0.62	)

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

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

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

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

See accompanying notes to financial statements.

23

						Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (a)(e)		Net assets, end of the period (000's)		Net expenses (%) (b)(c)		Gross expenses (%) (c)		Net investment income (%) (c)	Portfolio turnover rate (%)
$	10.54	(5.1	)	$	1,867,335	0.80		0.80		5.20	35
	11.73	9.1			834,736	0.83		0.83		5.05	35
	11.35	5.6			152,054	0.92	(f)	0.92	(f)	4.59	35
	11.71	6.8			39,168	0.95		1.14		4.21	28
	11.84	8.8			9,506	0.93		1.67		4.52	29
	10.50	(5.9	)		16,009	1.65	(g)	1.65	(g)	4.29	35
	11.68	8.2			17,082	1.70		1.71		4.16	35
	11.31	4.8			5,525	1.70		1.89		3.75	35
	11.67	5.9			3,443	1.70		2.18		3.47	28
	11.82	7.9			1,797	1.70		2.42		3.77	29
	10.47	(5.8	)		1,333,421	1.55		1.55		4.45	35
	11.66	8.3			605,934	1.57		1.57		4.30	35
	11.30	4.9			82,863	1.70	(f)	1.70	(f)	3.79	35
	11.66	5.9			27,992	1.70		1.97		3.45	28
	11.81	7.9			9,191	1.70		2.42		3.74	29
	10.55	(4.8	)		1,044,046	0.53		0.53		5.48	35
	11.73	9.3			448,873	0.55	(g)	0.55	(g)	5.33	35
	11.36	6.1			76,548	0.55		0.63		4.94	35
	11.71	7.1			26,012	0.55		0.82		4.61	28
	11.85	9.2			12,543	0.55		1.08		4.92	29
	10.53	(5.5	)		167,775	1.28		1.28		4.66	35
	11.71	8.5			180,453	1.28		1.28		4.57	35
	11.34	5.3			214,894	1.30	(f)	1.30	(f)	4.09	35
	11.69	6.4			314,418	1.30		1.35		3.89	28
	11.83	8.3			342,871	1.30		1.33		4.15	29

(e) A sales charge for Class A, Class C (prior to February 1, 2004) and Class J 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.

(f) Includes expense recapture of 0.06%, 0.09% and 0.03% for Class A, Class C and Class J, respectively.

(g) Includes expense recapture of less than 0.01% for Class B and Class Y, respectively.

24

NOTES TO FINANCIAL STATEMENTS

September 30, 2008

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. Information presented in these financial statements pertains to Loomis Sayles Investment Grade Bond Fund (the “Fund” or the “Investment Grade Bond Fund”); the financial statements for the remaining fixed income funds and the equity funds of the Trust are presented in separate reports.

The Fund offers Class A, Class C, Class Y and Class J 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 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. 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. 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 transfer agent fees applicable to such class). In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of 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.

a.   Security 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. Equity securities, including closed-end investment companies and exchange-traded funds, for which market quotations are readily available, are valued at market value, as reported by pricing services recommended by the investment adviser and 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 Fund may be valued on the basis of a price provided by a principal market maker. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the 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. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as the Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. Periodic principal adjustments for inflation-protected securities are recorded to interest income. Distributions received from investments in securities that represent a return of 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 Fund’s investment in real estate investment trusts (“REITs”) are reported to the Fund after the end of the fiscal year; accordingly, the Fund estimates these amounts for accounting purposes until the characterization of REIT distributions is reported to the Fund 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 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.

25

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

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

Net realized foreign exchange gains or losses arise from sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the 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.

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 appropriation. 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.

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.

All contracts are “marked-to-market” daily utilizing interpolated prices determined from information provided by an independent pricing service and any gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. At September 30, 2008, there were no open forward 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 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 taken on federal and state tax returns that remain subject to examinations (tax years ended September 30, 2005-2008) and has concluded that no provisions for income tax are required. Fund management is not aware of any events that are reasonably possible to occur in the next twelve 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.

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, 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, forward contracts mark to market, 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 years ended September 30, 2008 and 2007 was as follows:

2008 Distributions Paid From:					2007 Distributions Paid From:
Ordinary Income	Long-Term Capital Gains		Total		Ordinary Income	Long-Term Capital Gains		Total
$190,838,658	$	—	$	190,838,658	$53,534,527	$	—	$	53,534,527

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

26

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

As of September 30, 2008, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	$	78,451,895
Undistributed capital gains		9,171,073
Unrealized depreciation		(510,465,780	)
Total accumulated losses	$	(422,842,812	)

The Fund utilized $1,968,385 of capital loss carryforward in the current year.

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

h.  Securities Lending.  The 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 of the loaned international or domestic securities, respectively, when the loan is initiated. Thereafter, the value of the collateral must remain at least 102% of the market value of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value of loaned securities for non-U.S. equities; and at least 100% of the market value of loaned securities for U.S. government securities, sovereign debt issued by non-U.S. governments and non-U.S. corporate debt. In the event that the market value of the collateral falls below the required percentages described above, the borrower will deliver additional collateral on the next business day. As with other extensions of credit, the Fund may bear 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. The value of securities on loan to borrowers and the value of collateral held by the Fund with respect to such loans at September 30, 2008 were $31,782,345 and $32,831,158, respectively. Subsequent to September 30, 2008, all open securities lending transactions were closed.

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.

j.  New Accounting Pronouncements.  In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management has evaluated the impact the adoption of FAS 157 will have on the Fund's financial statements and believes that such impact will be limited to expanded disclosure in the Fund's financial statements regarding inputs used in determining the value of the Fund's investments.

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

3.  Purchases and Sales of Securities.  For the year ended September 30, 2008, purchases and sales of securities (excluding short-term investments and U.S. government/agency securities and including paydowns) were $3,111,282,272 and $207,780,470, respectively. Purchases and sales of U.S. government/agency securities (excluding short-term investments and including paydowns) were $482,046,102 and $896,429,967, respectively.

4.  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.

27

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

Loomis Sayles has given a binding undertaking to the Fund to reduce management fees and/or reimburse certain expenses associated with the Fund to limit its operating expenses. This undertaking is in effect until January 31, 2009 and will be reevaluated on an annual basis. For the year ended September 30, 2008, 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	Class J
0.95%	1.70%	1.70%	0.55%	1.30%

For the year ended September 30, 2008, the management fees for the Fund were $14,927,516 (0.40% of average daily net assets).

Loomis Sayles shall be permitted to recover expenses it has borne under the expense limitation agreement (whether through reduction of the 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 fee/expense was reduced. At September 30, 2008, no expenses were subject to recapture by Loomis Sayles.

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 subcontracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, 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 an annual fee of $75,000 plus $12,500 per class and an additional $75,000 if managed by multiple subadvisors in their first calendar year of operations.

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

Prior to July 1, 2008, the Fund paid Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0675% of the first $5 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0625% of the next $5 billion, 0.0500% of the next $20 billion and 0.045% of such assets in excess of $30 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $5 million, which was reevaluated on an annual basis. New funds were subject to an annual fee of $50,000 plus $12,500 per class and an additional $50,000 if managed by multiple subadvisors in their first calendar year of operations.

For the year ended September 30, 2008, the Fund paid the following administrative fees to Natixis Advisors:

Gross Administrative Fees	Waiver of Administrative Fees		Net Administrative Fees
$1,894,625	$	69,053	$	1,825,572

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 Fund, 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 Fund has adopted a Service Plan relating to the Fund’s Class A shares (the “Class A Plan”) and a Distribution and Service Plan relating to the Fund’s Class B and Class C shares (the “Class B and Class C Plans”).

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.

28

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

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

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

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 year ended September 30, 2008 the Fund paid the following service and distribution fees:

Service Fees							Distribution Fees
Class A	Class B		Class C		Class J		Class B		Class C		Class J
$3,942,434	$	43,968	$	2,758,111	$	437,740	$	131,903	$	8,274,334	$	875,480

d.  Sub-Transfer Agent Fee.  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 intermediary. Natixis Distributors pays the remainder of the fees. Listed below are the fees incurred by the Fund which are reflected in the transfer agent fees and expenses in the Statement of Operations.

Sub-Transfer Agent Fees
Class A	Class B		Class C		Class Y		Class J
$715,898	$	8,452	$	496,552	$	358,854	$	—

e.  Commissions.  The Fund has been informed that commissions (including CDSCs) on Fund shares paid to Natixis Distributors by investors in Class A, B and C shares of the Fund were $6,527,045 and commissions paid to Loomis Sayles Distributors by investors in Class J shares of the Fund were $162,325 for the year ended September 30, 2008.

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

Prior to January 1, 2008, each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $55,000. Each Independent Trustee also received a meeting attendance fee of $6,000 for each meeting of the Board of Trustees that he or she attended in person and $3,000 for each meeting that he or she attended telephonically. In addition, each Contract Review and Governance Committee member received $4,000 for each committee meeting that he or she attended in person and $2,000 for each committee meeting that he or she attended telephonically. Each Audit Committee member received $5,000 for each committee meeting that he or she attended in person and $2,500 for each committee meeting that he or she attended telephonically. The Chairperson of the Board and committee chair retainers were $200,000 and $10,000, respectively.

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 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.

5.  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 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

29

NOTES TO FINANCIAL STATEMENTS (continued)

September 30, 2008

charged to each participating fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.09% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

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

For the year ended September 30, 2008, the Fund had no borrowings under these agreements.

6.  Shareholders.  At September 30, 2008, the Loomis Sayles Employees’ Profit Sharing Retirement Plan held 299,958 shares of beneficial interest of Class Y shares.

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

	Year Ended September 30, 2008					Year Ended September 30, 2007
	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	141,854,364		$	1,656,977,467		62,683,448		$	718,750,421
Issued in connection with the reinvestment of distributions	5,123,079			59,622,406		1,215,478			13,890,899
Redeemed	(41,000,347	)		(471,380,105	)	(6,122,274	)		(70,007,079	)
Net change	105,977,096		$	1,245,219,768		57,776,652		$	662,634,241
Class B
Issued from the sale of shares	238,331		$	2,759,530		1,066,683		$	12,151,938
Issued in connection with the reinvestment of distributions	32,911			382,852		21,567			245,601
Redeemed	(208,730	)		(2,405,675	)	(114,073	)		(1,298,212	)
Net change	62,512		$	736,707		974,177		$	11,099,327
Class C
Issued from the sale of shares	86,193,536		$	1,001,609,060		46,067,893		$	525,272,541
Issued in connection with the reinvestment of distributions	1,861,389			21,543,304		406,871			4,631,767
Redeemed	(12,717,963	)		(145,036,821	)	(1,848,031	)		(21,049,506	)
Net change	75,336,962		$	878,115,543		44,626,733		$	508,854,802
Class Y
Issued from the sale of shares	84,132,384		$	980,528,103		34,163,364		$	391,585,504
Issued in connection with the reinvestment of distributions	2,701,331			31,421,337		578,308			6,613,133
Redeemed	(26,105,415	)		(298,275,048	)	(3,224,099	)		(36,901,729	)
Net change	60,728,300		$	713,674,392		31,517,573		$	361,296,908
Class J
Issued from the sale of shares	2,839,200		$	32,261,445		550,000		$	6,284,374
Issued in connection with the reinvestment of distributions						—			—
Redeemed	(2,306,870	)		(26,702,358	)	(4,100,330	)		(46,695,231	)
Net change	532,330		$	5,559,087		(3,550,330	)	$	(40,410,857	)
Increase (decrease) from capital share transactions	242,637,200		$	2,843,305,497		131,344,805		$	1,503,474,421

30

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees of Loomis Sayles Funds II and Shareholders of Loomis Sayles Investment Grade Bond Fund:

In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Investment Grade Bond Fund, a series of Loomis Sayles Funds II ("the Fund"), at September 30, 2008, and the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2008

31

2008 U.S. TAX DISTRIBUTION INFORMATION TO SHAREHOLDERS (unaudited)

Qualified Dividend Income.  For the fiscal year ended September 30, 2008, the Investment Grade Bond Fund will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 5% to 15% depending on an individual’s tax bracket. If the Fund pays a distribution during calendar year 2008, complete information will be reported in conjunction with Form 1099-DIV.

Qualified Interest Income.  For the fiscal year ending September 30, 2008, the Investment Grade Bond Fund will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified interest income eligible for reduced tax with holding rates for foreign shareholders. Complete information will be reported in conjunction with dividend information provided to foreign shareholders.

32

TRUSTEE AND OFFICER INFORMATION

The tables below provide certain information regarding the Trustees and officers of Loomis Sayles Funds II (the “Trust”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Trust’s Statement of Additional Information includes additional information about the Trustees of the Trust and is available by calling Loomis Sayles at 800-343-2029.

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen*** and Other Directorships Held
INDEPENDENT TRUSTEES
Graham T. Allison, Jr. (1940)	Trustee Since 2003 Contract Review and Governance Committee Member	Douglas Dillon Professor and Director of the Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University	41; Director, Taubman Centers, Inc. (real estate investment trust)
Charles D. Baker (1956)	Trustee Since 2005 Contract Review and Governance Committee Member	President and Chief Executive Officer, Harvard Pilgrim Health Care (health plan)	41; None
Edward A. Benjamin (1938)	Trustee Since 2002 Chairman of the Contract Review and Governance Committee	Retired	41; None
Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Audit Committee	President and Chief Executive Officer, Cain Brothers & Company, Incorporated (investment banking)	41; Director, Sheridan Healthcare Inc. (physician practice management)
Kenneth A. Drucker (1945)	Trustee Since 2008 Contract Review and Governance Committee Member	Formerly, Treasurer, Sequa Corp. (manufacturing)	41; Director, M Fund, Inc. (registered investment company)
Jonathan P. Mason (1958)	Trustee Since 2007 Audit Committee Member	Chief Financial Officer, Cabot Corp. (specialty chemicals); formerly, Vice President and Treasurer, International Paper Company; formerly, Chief Financial Officer, Carter Holt Harvey (forest products)	41; None
Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee Since 2003 Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting); formerly, Senior Vice President and Director, The Boston Consulting Group, Inc. (management consulting)	41; Director, Verizon Communications; Director, Rohm and Haas Company (specialty chemicals); Director, AES Corporation (international power company)

33

TRUSTEE AND OFFICER INFORMATION

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen*** and Other Directorships Held
INDEPENDENT TRUSTEES continued
Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School; and formerly, Dean for Finance & Chief Financial Officer, Harvard Medical School	41; None
INTERESTED TRUSTEES
Robert J. Blanding1 (1947) 555 California Street San Francisco, CA 94104	Trustee Since 2002 Chief Executive Officer since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	41; None
John T. Hailer2 (1960)	Trustee Since 2003	President and Chief Executive Officer-U.S. and Asia, Natixis Global Asset Management, L.P.; formerly, President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P., Natixis Distributors, L.P. and Natixis Global Associates, Inc.	41; None

* Each Trustee serves until retirement, resignation or removal from the Board of Trustees. The current retirement age is 72. The position of Chairperson of the Board is appointed for a two-year term. Ms. Moose was appointed to serve an additional two-year term as the Chairperson of the Board of Trustees on September 14, 2007.

** Each person listed above, except as noted, holds the same position(s) with the Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Gateway Trust and the Natixis Cash Management Trust (collectively, the “Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (collectively, the “Loomis Sayles Funds Trusts”), and Hansberger International Series. Previous positions during the past five years with Natixis Distributors, L.P. (the “Distributor”), Natixis Asset Management Advisors, L.P. (“Natixis Advisors”), or Loomis, Sayles & Company, L.P. are omitted if not materially different from a Trustee’s or officer’s current position with such entity.

*** The Trustees of the Trusts serve as trustees of a fund complex that includes all series of the Natixis Funds Trusts, the Loomis Sayles Funds Trusts and Hansberger International Series (collectively, the “Fund Complex”).

¹ Mr. Blanding is deemed an “interested person” of the Trusts because he holds the following positions with affiliated persons of the Trusts: President, Chairman, Director and Chief Executive Officer of Loomis, Sayles & Company, L.P.

² Mr. Hailer is deemed an “interested person” of the Trusts because he holds the following positions with affiliated persons of the Trusts: President and Chief Executive Officer-U.S. and Asia, Natixis Global Asset Management, L.P.

34

TRUSTEE AND OFFICER INFORMATION

Name and Year of Birth	Position(s) Held with the Trust	Term of Office* and Length of Time Served	Principal Occupation During Past 5 Years**
OFFICERS OF THE TRUST
Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk (formerly, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk), Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.
Daniel J. Fuss (1933) One Financial Center Boston, MA 02111	Executive Vice President	Since June 2003	Vice Chairman and Director, Loomis, Sayles & Company, L.P.
David Giunta (1965)	President	Since March 2008	President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; formerly, President, Fidelity Charitable Gift Fund; and formerly, Senior Vice President, Fidelity Brokerage Company
Russell L. Kane (1969)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Chief Compliance Officer since May 2006; Assistant Secretary since June 2004; and Anti-Money Laundering Officer since April 2007	Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; and formerly, Senior Counsel, Columbia Management Group
Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; and formerly, Senior Director, PFPC Inc.
Robert Krantz (1964)	Executive Vice President	Since September 2007	Executive Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.

* Each officer of the Trusts serves for an indefinite term in accordance with the Trusts’ current By-laws until the date his or her successor is elected and qualified, or until he or she sooner dies, retires, is removed or becomes disqualified.

** Each person listed above, except as noted, holds the same position(s) with the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series. Mr. Fuss is not an officer of the Natixis Funds Trusts or the Hansberger International Series. Previous positions during the past five years with the Distributor, Natixis Advisors or Loomis Sayles are omitted if not materially different from a Trustee’s or officer’s current position with such entity.

35

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer and persons performing similar functions.

Item 3. Audit Committee Financial Expert.

The Board of Trustees of the Registrant has established an audit committee. Ms. Cynthia L. Walker, Mr. Daniel M. Cain and Mr. Jonathan P. Mason are members of the audit committee and have been designated as “audit committee financial experts” by the Board of Trustees. Each of these individuals is also an Independent Trustee of the Registrant.

Item 4. Principal Accountant Fees and Services.

Fees billed by the Principal Accountant for services rendered to the Registrant.

The table below sets forth fees billed by the principal accountant, PricewaterhouseCoopers LLP, for the past two fiscal years for professional services rendered in connection with a) the audit of the Registrant’s annual financial statements and services provided in connection with regulatory filings; b) audit-related services (including services that are reasonably related to the performance of the audit of the Registrant’s financial statements and but not reported under “Audit Fees”); c) tax compliance, tax advice and tax planning and d) all other fees billed for professional services rendered by the principal accountant to the Registrant, other than the services reported as a part of (a) through (c) of this Item.

	Audit fees				Audit-related fees1				Tax fees2				All other fees3
	2007		2008		2007		2008		2007		2008		2007		2008
Loomis Sayles Funds II	$	468,651	$	419,167	$	4,000	$	29,851	$	97,567	$	131,205	$	—	$	29,562

1. Audit-related fees consist of a) the performance of agreed-upon procedures related to the filing of Form 485b for the Loomis Sayles Value Fund (2007), b) the performance of agreed-upon procedures related to the Registrant’s deferred compensation plan, c) services related to the implementation of a new accounting standard, d) the performance of agreed-upon procedures related to a fund merger with the Loomis Sayles Value Fund and e) consulting services with respect to potential derivative investments for the Loomis Sayles Mid Cap Growth Fund.

2. The tax fees consist of review of year-end shareholder reporting and a review of the Registrant’s tax returns (2007 and 2008) and consulting services with respect to potential derivative investments for the Loomis Sayles Mid Cap Growth Fund.

3. All other fees consist of filing and translation services with respect to Japanese shareholders in Loomis Sayles Investment Grade Bond Fund.

Aggregate fees billed to the Registrant for non-audit services during 2007 and 2008 were $101,567 and $190,618, respectively.

Fees billed by the Principal Accountant for services rendered to the Adviser and Control Affiliates.

The following table sets forth the non-audit services provided by the Registrant’s principal accountant to Loomis, Sayles & Company, L.P. and entities controlling, controlled by or under common control with Loomis, Sayles & Company, L.P. that provide ongoing services to the Registrant (“Control Affiliates”) for the last two fiscal years.

	Audit-related fees				Tax fees				All other fees
	2007		2008		2007		2008		2007		2008
Control Affiliates	$	12,000	$	12,000	$	—	$	—	$	—	$	—

Aggregate fees billed to Control Affiliates for non-audit services during 2007 and 2008 were $12,000 and $12,000, respectively.

None of the audit-related, tax and other services provided by the Registrant’s principal accountant were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

Audit Committee Pre Approval Policies.

Annually, the Registrant’s Audit Committee reviews the audit, audit-related, tax and other non-audit services together with the projected fees, for services proposed to be rendered to the Trust and/or other entities for which pre-approval is required during the upcoming year. Any subsequent revisions to already pre-approved services or fees (including fee increases) and requests for pre-approval of new services would be presented for consideration quarterly as needed.

If, in the opinion of management, a proposed engagement by the Registrant’s independent accountants needs to commence before the next regularly scheduled Audit Committee meeting, any member of the Audit Committee who is an independent Board member is authorized to pre-approve the engagement, but only for engagements to provide audit, audit related and tax services. This approval is subject to review of the full Audit Committee at its next quarterly meeting. All other engagements require the approval of all the members of the Audit Committee.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

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

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Securities Holders.

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

Item 11. Controls and Procedures.

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

There were no changes in the Registrant’s internal control over financial reporting that occurred during the 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) Code of Ethics required by Item 2 hereof, filed herewith as exhibit (a)(1).

(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) Certification 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:	November 19, 2008

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

By:	/s/ Robert J. Blanding
Name:	Robert J. Blanding
Title:	Chief Executive Officer
Date:	November 19, 2008
By:	/s/ Michael C. Kardok
Name:	Michael C. Kardok
Title:	Treasurer
Date:	November 19, 2008

EX-99.(A)(1)

Exhibit (a)(1)

NATIXIS FUNDS TRUST I

NATIXIS FUNDS TRUST II

NATIXIS FUNDS TRUST III

NATIXIS FUNDS TRUST IV

NATIXIS CASH MANAGEMENT TRUST

LOOMIS SAYLES FUNDS I

LOOMIS SAYLES FUNDS II

HANSBERGER INTERNATIONAL SERIES

GATEWAY TRUST

Adopted August, 2003

Amended June 1, 2007 (to add Gateway Trust)

Amended September 14, 2007 (to add Hansberger International Series)

CODE OF ETHICS PURSUANT TO SECTION 406 OF THE SARBANES-OXLEY

ACT OF 2002 FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL

OFFICERS

I. Covered Persons/Purpose of the Code

This Code of Ethics (this “Code”) pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 has been adopted by the registered investment companies (each a “Fund” and, collectively, the “Funds”) listed on Exhibit A and applies to each Fund’s Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer (the “Covered Persons,” all covered persons are set forth in Exhibit B) for the purpose of promoting:

• Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

• Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission (the “SEC”) and in other public communications made by the registrant

• Compliance with applicable governmental laws, rules and regulations;

• The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code of violations of the Code; and

• Accountability for adherence to the Code.

Each Covered Person should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to conflicts of interest.

II. Covered Persons Should Handle Ethically Actual and Apparent Conflicts of Interest

Overview. A “conflict of interest” occurs when a Covered Person’s private interest interferes with the interests of, or his service to, the Fund. For example, a conflict of interest would arise if a Covered Person’s, or a member of the Covered Person’s family or household, receives improper personal benefits as a result of the Covered Person’s position with the Fund.

Certain conflicts of interest arise out of the relationships between Covered Persons and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (including the regulations thereunder, the “1940 Act”) and the Investment Advisers Act of 1940 (including the regulations thereunder, the “Investment Advisers Act”). For example, Covered Persons may not engage in certain transactions with the Fund because of their status as “affiliated persons” of the Fund. The Funds and their investment advisers; subadvisers; distributors and administrators (each a “Service Provider” and, collectively, the “Service Providers”) compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code. See also Section V of this code.

Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between the Funds and their Service Providers of which the Covered Persons are also officers or employees. As a result, this Code recognizes that the Covered Persons will, in the normal course of their duties (whether for the Funds or for a Service Provider, or for each), be involved in establishing policies and implementing decisions that will have different effects on the Service Providers and the Funds. The participation of the Covered Persons in such activities is inherent in the contractual relationships between the Funds and their Service Providers and is consistent with the performance by the Covered Persons of their duties as officers of the Funds. Thus, if performed in conformity with the provisions of the 1940 Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds’ Boards of Trustees (“Boards”) that the Covered Persons may also be officers or employees of one or more other investment companies covered by this or other codes and that such service, by itself, does not give rise to a conflict of interest.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not the subject of provisions of the 1940 Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Persons should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Person should not be placed improperly before the interest of a Fund.

Each Covered Person must not:

• use his/her personal influence or personal relationships improperly to influence investment decisions or financial reporting by a Fund whereby the Covered Person would benefit personally to the detriment of the Fund;

• cause a Fund to take action, or fail to take action, for the individual personal benefit of the Covered Person rather than the benefit the Fund; or

• retaliate against any other Covered Person or any employee of the Funds or their Service Providers for reports of potential violations that are made in good faith.

There are some conflict of interest situations that should always be approved by the Chief Legal Officer (“CLO”) of the Fund (or, with respect to activities of the CLO if he/she is a Covered Person, by the President ). These conflict of interest situations are listed below:

• service on the board of directors or governing board of a publicly traded entity;

• acceptance of any investment opportunity, gift, gratuity or other thing of more than nominal value from any person or entity that does business, or desires to do business, with the Fund. This restriction shall not apply to (i) gifts from a single giver so long as their aggregate annual value does not exceed the equivalent of $100 or (ii) attending business meals, business related conferences, sporting events and other entertainment events at the expense of a giver, so long as the expense is reasonable;

• any ownership interest in, or any consulting relationship with, any entities doing business with a Fund, other than a Service Provider or an affiliate of a Service Provider. This restriction shall not apply to or otherwise limit the ownership of publicly traded securities so long as the Covered Person’s ownership does not exceed more than 2% of the outstanding securities of the relevant class; and

• a direct or indirect financial interest in commissions, transaction charges or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Person’s employment with a Service Provider or its affiliate. This restriction shall not apply to or otherwise limit (i) the ownership of publicly traded securities so long as the Covered Person’s ownership does not exceed more than 2% of the particular class of security outstanding or (ii) the receipt by the Service Provider of research or other benefits in exchange for “soft dollars”.

III. Disclosure and Compliance

• Each Covered Person should familiarize himself with the disclosure requirements generally applicable to a Fund;

• Each Covered Person should not knowingly misrepresent, or cause others to misrepresent, facts about a Fund to others, whether within or outside the Fund, including to the Fund’s Board and auditors, and to governmental regulators and self-regulatory organizations;

• Each Covered Person should, to the extent appropriate within his/her area of responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and

• It is the responsibility of each Covered Person to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

IV. Reporting and Accountability

Each Covered Person must:

• upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Person), affirm in writing to the Funds that he/she has received, read, and understands the Code;

• annually thereafter affirm to the Funds that he/she has complied with the requirements of the Code; and

• notify the CLO of the Funds promptly if he/she knows of any violation of this Code (with respect to violations by the CLO if he/she is a Covered Person, the Covered Person shall report to the President). Failure to do so is itself a violation of this Code.

The CLO of a Fund is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, any approvals or waivers other than those this Code states can be granted by the CLO, sought by the CLO or Covered Person will be considered by the relevant Fund’s Audit Committee (the “Committee”).

The Funds will follow these procedures in investigating and enforcing this Code:

• the CLO will take all appropriate action to investigate any potential violations reported, which may include the use of internal or external counsel, accountants or other personnel;

• if, after such investigation, the CLO believes that no violation has occurred, the CLO is not required to take any further action;

• any matter that the CLO believes is a violation will be reported to the Committee;

• if the Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Person;

• the Committee will be authorized to grant waivers, as it deems appropriate; and

• any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

V. Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds or the Funds’ Service Providers govern or purport to govern the behavior or activities of the Covered Persons who are subject to this Code, they are superseded by this Code to the extent that they conflict with the provisions of this Code. The Funds and their Service Providers’ codes of ethics under Rule 17j-1 under the 1940 Act and the Service Providers’ more detailed compliance policies and procedures are separate requirements applying to the Covered Persons and others, and are not part of this Code.

VI. Amendments

Any amendments to this Code with respect to a Fund, other than administrative amendments to Exhibits A and B, must be approved or ratified by a majority vote of the Fund’s Board, including a majority of independent trustees.

VII. Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone except as permitted by the Board.

VIII. Internal Use

The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion.

Exhibit A

Registered Investment Companies

Natixis Funds Trust I

Natixis Funds Trust II

Natixis Funds Trust III

Natixis Funds Trust IV

Natixis Cash Management Trust

Loomis Sayles Funds I

Loomis Sayles Funds II

Hansberger International Series

Gateway Trust

Exhibit B

Persons Covered by this Code of Ethics

Trust	Principal Executive Officer	Principal Financial Officer	Principal Accounting Officer
Natixis Funds Trust I	David L. Giunta, President and Chief Executive Officer	Michael Kardok, Treasurer	Michael Kardok, Treasurer
Natixis Funds Trust II	David L. Giunta, President and Chief Executive Officer	Michael Kardok, Treasurer	Michael Kardok, Treasurer
Natixis Funds Trust III	David L. Giunta, President and Chief Executive Officer	Michael Kardok, Treasurer	Michael Kardok, Treasurer
Natixis Funds Trust IV	David L. Giunta, President and Chief Executive Officer	Michael Kardok, Treasurer	Michael Kardok, Treasurer
Natixis Cash Management Trust	David L. Giunta, President and Chief Executive Officer	Michael Kardok, Treasurer	Michael Kardok, Treasurer
Loomis Sayles Funds I	Robert J. Blanding, Trustee, President and Chief Executive Officer	Michael Kardok, Treasurer	Michael Kardok, Treasurer
Loomis Sayles Funds II	Robert J. Blanding, Trustee, Chief Executive Officer; David L. Giunta, Trustee, President	Michael Kardok, Treasurer	Michael Kardok, Treasurer
Hansberger International Series	David L. Giunta, President and Chief Executive Officer	Michael Kardok, Treasurer	Michael Kardok, Treasurer
Gateway Trust	David L. Giunta, President and Chief Executive Officer	Michael Kardok, Treasurer	Michael Kardok, Treasurer

* Revised March 1, 2008 to replace John T. Hailer with David L. Giunta as President and CEO.

EX-99.(A)(2)(1)

Exhibit (a)(2)(1)

Loomis Sayles Funds II

Exhibit to SEC Form N-CSR

Section 302 Certification

I, Robert J. Blanding, certify that:

1. I have reviewed this report on Form N-CSR of Loomis Sayles Funds II;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all materials respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 19, 2008

/s/ Robert J. Blanding

Robert J. Blanding

Chief Executive Officer

EX-99.(A)(2)(2)

Exhibit (a)(2)(2)

Loomis Sayles Funds II

Exhibit to SEC Form N-CSR

Section 302 Certification

I, Michael C. Kardok, certify that:

1. I have reviewed this report on Form N-CSR of Loomis Sayles Funds II;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all materials respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 19, 2008

/s/ Michael C. Kardok

Michael C. Kardok

Treasurer

EX-99.(B)

Exhibit (b)

Loomis Sayles Funds II

Section 906 Certification

In connection with the report on Form N-CSR for the period ended September 30, 2008 for the Registrant (the “Report”), the undersigned each hereby certifies to the best of his knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

By:	By:
Chief Executive Officer	Treasurer
Loomis Sayles Funds II	Loomis Sayles Funds II
/s/ Robert J. Blanding	/s/ Michael C. Kardok
Robert J. Blanding	Michael C. Kardok
Date: November 19, 2008	Date: November 19, 2008

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Loomis Sayles Funds II, and will be retained by the Loomis Sayles Funds II and furnished to the Securities and Exchange Commission or its staff upon request.